Your father has given you a lot. He has worked hard for a major part of his life to ensure you can enjoy the best lifestyle, get the best education, and have a great future. More often than not, he has sacrificed his dreams to ensure that all your dreams are fulfilled. Now that your father is approaching his retirement age, you must ensure that he has enough savings for the golden years of his life.
 

You can start or suggest suitable investment options to help your father plan for his retirement. By investing in a retirement plan, your father will be able to fulfil all his dreams that he couldn’t during his working years.
 

Apt Investment Plans for Your Father
 

Below are some of the apt investment plans for parents in India that can help your father prepare for his retirement:
 

• Unit-Linked Retirement Plans (ULIPs)
  
  Unit-Linked Insurance Plans, or ULIPs, are one the apt investment options in India. They combine the benefits of investment as well as life insurance in a single package. A ULIP plan is also considered a less-cost, long-term retirement plan that can help you plan for your retirement years.
  
  ULIP policies are offered by life insurance companies in India. When you invest in a ULIP policy,a portion of the premium paid by you is utilised to provide you with a life insurance cover. The remaining portion is invested in market-linked instruments, such as bonds and equities, to ensure superlative returns on your investments.
  
  Another benefit of a ULIP policy is that it comes with a lock-in period of five years. It means that you’re not allowed to withdraw or liquidate your money invested in a ULIP plan before the end of the lock-in period. Also, you will have the flexibility to choose your asset allocation as per your investment objective and risk appetite. You can even switch your funds mid-way during the policy term.
  
  
• Senior Citizen Savings Scheme (SCSS)
  
  Senior Citizen Savings Scheme or SCSS is an investment option in India available only for those aged 60 or above. So, if your father is an already-retired senior citizen, he can invest in this scheme. This scheme is offered by the Government of India, and you can easily open an SCSS account in the name of your father to start investing.
  
  By investing in the SCSS scheme, you will get a fixed return of 8.6% on your investments. The most notable advantage of this investment plan is that it offers assured returns and hence, protects your investment from market risks. Additionally, any investments made under a Senior Citizens Savings Scheme are available for tax* deductions as per Section 80C of the Income Tax* Act 1961.
  
  
• Mutual Funds
  
  Mutual funds have emerged as one of the most popular investment avenues in recent times. They allow you to invest your money in various market-linked instruments by pooling investments from investors with a common investment objective and then investing that money in various asset classes, including equity stocks, bonds, commodities, etc.
  
  Mutual funds are offered by various Asset Management Companies (AMCs) in India and are managed by professional fund managers. These fund managers consider the investment objective and risk appetite of the investors and allocate their investments in various asset classes accordingly.
  
  There are two methods of investing in mutual funds – a Systematic Investment Plan (SIP) and a lump sum. The SIP method of investing allows you to invest fixed amounts at fixed intervals in the choice of your funds. This method is considered the best for long-term wealth accumulation. The lump sum method allows you to make one-time investments in mutual funds.
  
  Another benefit of investing in mutual funds is that you have the flexibility to invest as per your risk appetite and investment horizon. For example, if you want to take a conservative approach, you can invest in debt funds or balanced funds. Or else, if you want to take an aggressive approach and earn more returns on your investments, you can invest in equity mutual funds.
  
  





• Pension Plans
  
  Pension plans are specifically meant to provide you with a regular stream of income after your retirement. That is why these investment plans are also known as retirement plans. Several financial institutions allow you to invest in a pension plan on behalf of your father. Some pension plans even allow entry at the age of up to 65 years.
  
  Your father can invest in a pension plan till the accumulation phase. After the completion of this phase, he will be provided with a monthly income as per the policy terms. In most cases, pension plans do not allow withdrawals until the investor turns 60.
  
  There are two types of pension plans available in India – unit-linked pension plans and traditional pension plans. While traditional pension plans offer fixed returns to investors, unit-linked pension plans invest your money in market-linked instruments, and hence, the returns are not fixed.
  
  
• Public Provident Fund (PPF)
  
  The Public Provident Fund, or PPF, is another popular long-term investment instrument available in India. You can open a PPF account for your father with a bank or post office and start investing in it for his retirement. The highlight of a PPF account is that it comes with a lock-in period of 15 years. It means that you are not allowed to withdraw your investments before this period.
  
  Also, the investments made in a PPF account are available for tax* deductions under section 80C of the Income Tax* Act. The amount received on maturity and the interest earned on your investments in PPF is also tax*-free.
   

Conclusion
 

These are some of the apt investment plans for parents in India. You can ask your father or invest in these plans yourself to ensure a happy retired life for your dad. After all, he deserves complete peace of mind during the twilight of his life after doing so much for you.
 

However, you must conduct sufficient research to hunt for the apt investment plan for parents in India. Also, do not forget to consider your budget and requirements while looking for an investment plan for your father.
 

L&C/Advt/2023/Jan/0025