Monthly Income Plans (MIPs)
All the above mentioned options are low risk whereas this one has some degree of risk attached to it. Typically, monthly investment plans invest about 15% to 25 % of their funds in shares and the rest are invested in debt instruments. The investors are provided the option to choose how often they wish to receive dividends which can be provided monthly, quarterly, half yearly or annually.
As a part of funds are invested in shares, they are considered more risky than the other options such as POMIS and POTD. They also do not guarantee assured returns. Though, they provide a high degree of liquidity as they do not have any fixed investment period. In case funds are withdrawn within six months of investment, an exit charge may be levied though it is very low.
National Savings Certificate (NSC)
National Savings Certificates come with assured returns of 8.6% to 8.9% compounded annually. It requires a minimum investment amount of just Rs. 100 and it can go up to the investor's capacity. There is no upper limit in this avenue of investment. Investments can be made in these certificates through post offices. They yield good returns and are highly safe investments though they suffer from liquidity limitations. Interests on them are paid out just once a year and they do not provide an option of premature withdrawal.
Depending upon their risk appetite, senior citizens can choose from above alternatives and enjoy their retirement at their own pace.