In: Finance
Respond to the following in a minimum of 175 words:
I will invest a substantial sum of money in Senior Citizen Saving Schemes. These will be safe investments and I will receive regular income from them. However I believe in taking a certain amount of risk and hence I will invest in equity funds as well. These have some amount of risk but are capable of giving high returns in the form of capital gains. These funds are diversified and hence risk is limited.
Before planning my investment, I need to consider my requirements after the retirement as well as the time value of money. I also need to consider the future value of my present investments to finally determine the regular deposits that I need to make to meet my retirement goals.
Investment risk as already discussed has been considered while selecting the type of investment to be made. Since I believe in moderate risk, I am investing my finances in both the risk-free and risky assets. It is essential to consider one’s risk taking ability before making the decision of the type of investments.