Fixed deposits aren't enough, senior citizens must invest in other avenues

The elderly could use the extra Rs 50,000 deduction on interest income, but must also explore instruments like SCSS, PMVVY and equity mutual funds

The Union Budget has allowed a tax deduction of up to Rs 50,000 to senior citizens on interest earned from deposits in banks, post office and co-operative banks. While senior citizens should take full benefit of this deduction, they should not overlook the need for a diversified portfolio to help them beat inflation.

Decide debt-equity mix first: How much of a senior citizen's retirement corpus gets allocated to debt should be determined as follows. First, use the 100 minus age rule. This would tell you that at 60 years, 40 per cent should be allocated to equities and 60 per