Shift in investment due to shattered confidence in cooperative societies
Vaibhav Parwat
Chhatrapati Sambhajinagar: A wave of caution is sweeping through the city's senior citizens when it comes to their investments. In the aftermath of multiple scams unearthed in local cooperative societies, many retirees are withdrawing their hard-earned savings and turning towards the perceived safety of mutual funds and post office schemes.
This shift in investment strategy is a direct response to the shattered confidence in cooperative societies. "The recent scandals have severely eroded the trust seniors had in these institutions," says CA Meenakshi Patil. "Safety is their top priority, and they're now seeking options backed by the government or those with a proven track record of stability." CA Abhijeet Deshpande also highlights the potential of specific mutual funds for retirees. "Debt-oriented mutual funds, which primarily invest in government bonds and other fixed-income securities, offer a good balance between risk and reward," he explains. "These funds can provide retirees with a steady stream of income while safeguarding their principal investment."
Senior citizens seek stability and growth
"For years, I was swayed by the promise of high returns offered by a cooperative society. But after the news broke, I knew it wasn't worth the risk. I've moved my money to a post office scheme like the Monthly Income Account Scheme (MIS), which offers a guaranteed monthly income and peace of mind, even if the interest rate is a bit lower," said 68-year-old Shanta Kulkarni.
"I recently started investing in a low-risk mutual fund recommended by my financial advisor. It offers some potential for growth through exposure to the stock market, but with a focus on safety, which is what I need at my age," said another resident, 72-year-old Ashok Rao.
Financial institutions adapt
Local post offices are reporting a significant increase in inquiries about senior-friendly savings schemes like MIS and the Senior Citizen Savings Scheme (SCSS), said postal agent Jaydeep Narale.