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September 23, 2022

Retirement

Retirement

Porting Of NPS Annuity, How It Will Benefit Investors

Porting Of NPS Annuity: National Pension Scheme (NPS) is a way you can regularly invest while building a healthy retirement […]

Porting Of NPS Annuity: National Pension Scheme (NPS) is a way you can regularly invest while building a healthy retirement corpus. It is one of the easier ways even the most skeptical investor can enjoy the benefits of stock market returns without actively investing in equity.

In the bid to improve investor experience and provide more flexibility to NPS holders, the Pension Fund and Regulatory Development Authority (PFRDA) has initiated a discussion with insurance regulator IRDA on the possible porting of annuities.

Let’s check out the details and see how the new proposed rule will simplify investing in NPS.

What’s the new proposed change in NPS (National Pension System)?

Porting the NPS policy between service providers is allowed only at the fund accumulation stage. Now, regulators want to extend it to the annuity stage.

Per the current policy, on the maturity of the NPS policy, subscribers must choose their annuity plan/ pension plan. As an NPS subscriber, you can change the annuity plan in the initial cooling-off period, which usually ranges between 15 to 20 days.

Once the cooling-off period is over, the policyholder cannot change the annuity plan again and must be satisfied with whatever is selected.

In the proposed change by PFRDA, which is at the very initial stage of discussion, the policyholder can switch their pension plan with another NPS provider on an ongoing basis.
Why is the change being proposed in NPS?

Currently, 14 life insurance companies offer to invest in NPS, and 10 life insurance companies provide annuity services. The rate of return life insurers offers is between 5.39 to 6.8%.

The general idea is that while choosing the NPS pension plan, many policyholders decide in a hurry without comparing the returns of different strategies. And, once the cooling period is over and the policyholder develops a better understanding of the product, it’s too late for them to switch.

Therefore, to give policyholders a fair chance to revisit their investment decision and get maximum yield on investment, the government proposed a change in the NPS pension policy.

How will the proposed NPS rule benefit investors?

If the proposed porting of annuities in the NPS policy gets regulatory approval, it will mark a massive step towards making NPS investor friendly.

The following are the benefits.

Better returns from investment:

With the added flexibility to switch between different annuity service providers, NPS subscribers can check which is better and compare returns of varying annuity plans before making informed decisions.

For example, a percentage point difference in return on Rs 20 lakh capital results in a variation of Rs 20,000 in actual returns annually. Furthermore, NPS porting will help subscribers not feel unequal and get the desired benefits of the NPS scheme.

Will help in better allocation of superannuation funds:

Per the NPS policy plan, subscribers must invest 40% of the accumulated N.P.S corpus/superannuation fund at maturity.

Therefore, many N.P.S subscribers tend to invest a minimum of 40% to save themselves from the uncertainty of lower returns compared to other annuity service providers in the future. With N.P.S porting facility, it will help N.P.S subscribers to increase the percentage allocation of accumulated corpus towards annuity plans and ensure guaranteed income for life.

Insurers will offer better facilities to N.P.S subscribers:

If the regulator allows the proposed NPS porting, it will increase competition among life insurers, resulting in better facilities and services for subscribers.

For instance, additional benefits like annual bonuses, access to other products at a discounted price or matching the highest return other annuity service providers may give.

Wrap-up: How Porting Of NPS Annuity Will Benefit Investors

Since the N.P.S porting proposal is at the initial stage of discussion and there is no timeline for its approval, it would not be easy to discuss the actual benefits. As a result, the final structure may differ and can also come with certain caveats.

However, the above points are the broad benefits N.P.S subscribers will get from the NPS porting facility. Investing in N.P.S will become user-friendly and attractive for investors, making the sector competitive and helping in better value discovery.

Will the policy change get the regulator’s nod? Those investing in NPS may have to wait and watch. In the meantime, if you haven’t set up your N.P.S account yet, do so today. It is never too late to start investing.

Read more: About Research and Ranking

September 6, 2022

Retirement

Retirement

Retirement Plan in India – 7 Step Guide

A smooth sailing retirement is a dream we all share. You finally get to settle into this period, having retired […]

A smooth sailing retirement is a dream we all share. You finally get to settle into this period, having retired from all your responsibilities to enjoy your golden years with much-needed peace of mind.

It is possible only if you’ve planned for your retirement and made systematic investments over the years leading up to it. Retirement planning aims to build a corpus that lets you continue living the way you always have while having enough money to pay for unforeseen expenses and even fulfil some of your post-retirement life goals. But, of course, all of this is made possible with wise investing.

The Best Approach to Retirement Planning in India

Retirement planning for many fails because they start the process too late in life. Ideally, you should start your retirement planning process from the day you receive your first paycheck.

Another reason why many Indians do not have enough savings in their sunset years is that they’ve either invested too little or not in the sound financial assets that will deliver returns in the long run. Many cannot save or invest only with an idea to safeguard their savings. Traditional assets may protect your savings but will not help your money grow.

You must clearly understand that the objective of retirement planning in India is to have an adequate corpus that will allow you to sustain the same lifestyle you have now, considering inflation in the future. Therefore, making an early start is your best bet to prepare for your sunset years.

Step by Step Guide to Planning Your Retirement

Look at our 7-step guide to your retirement planning in India.

Step 1: Decide When You Want to Retire

The most common retirement age in India is 60 years, but it may vary depending on the individual, company, and industry. Besides the legal retirement age, there is also the concept of voluntary retirement, wherein you can voluntarily retire before you reach your designated retirement age at the company where you work.

Deciding at what age you wish to retire is the first concrete step toward your retirement planning. It is crucial because the steady inflow of income will cease when you opt for retirement. Not, In addition, notryone is eligible for a pension, so you must have enough savings and investments to take care of your life post-retirement for you and your family.

Step 2: Create a Contingency Fund

Don’t let unexpected expenses derail your savings or empty your pocket! As they say, precaution is better than a cure, so planning for unplanned medical emergencies is more manageable than scrambling for money when the event occurs.

But, on the other hand, such sudden events could empty your savings and ruin your financial plans. So, it is a good idea to have funds devoted to such contingencies, which may or may not occur.

Step 3: Don’t forget, Start Retirement Planning Early

For most Indians, retirement planning is something they do when they’re almost at the end of their career. The approach should be exactly the opposite.

You must invest ample time in your retirement planning in India. It should begin the day you start generating income. The earlier you start, the greater the opportunity to compound your wealth. It will help you create the corpus of funds needed to live your life comfortably after retirement.

The following table depicts how important it is to start early Investment Amount: INR 1, 00,000 yearly estimated @ 10% p.a. return.

Starting age	25	35	45
Retirement Age	60	60	60
Years to Retire	35	25	15
Total investment	35,00, 000	25,00, 000	15,00,000
Retirement corpus	2,71,02,437	98,34,705	31,77,248

Step 4: Decide How Much Money You Need To Live Comfortably After Retirement

The rule in retirement planning is to smartly calculate the corpus you would need to ensure that your retirement years are smooth sailing. You first must set a target, keeping specific calculations and estimations in mind.

Key factors you must consider are your expected age of retirement, your probable life expectancy, an average of your monthly expenses, healthcare, and a possible inflation rate. Remember, you must also account for the rate of return on expected investment pre-and post-retirement. All these parameters are essential when you define the figure for your retirement corpus.

Step 5: Spread Your Asset Allocations Invest In Equity Too

It is common for people to invest in a single asset class when they are retirement planning in India. It could be fixed deposits, public provident funds, bonds, or equities. Investing in one asset class is a mistake when it means securing your financial future. The goal should be spreading your funds across several asset classes that offer varying returns.

The idea is to build an investment portfolio with conservative assets such as fixed deposits that build the foundation for wealth creation and minimize risk. Don’t forget to include a robust healthcare plan to insure against existing conditions. Also, consider adding a critical illness that can cover you against any terminal diseases in the future.

While doing all this, ensure you also invest in the right stocks for the long term and mutual funds that allow your funds to compound faster by offering higher returns. Invest according to your risk appetite and consider the number of years that you have to achieve your future life goals.

Step 6: Track and Review your Plan Periodically

Ideally, you should have a schedule to track your investment asset performance across the board on a half-yearly, at the most, on an annual basis. Anything over that timeline is not acceptable.

This periodic monitoring of your corpus is integral to the retirement planning process. It allows you to check what you have saved during that period and, in the future, is your plan suitable to help you meet your goals. If not, you can incorporate any changes in income, expenses, retirement age and fluctuations in the market into your retirement plan.

Step 7: Avoid Breaking Your Retirement Corpus

One of the most important things you can do is avoid using funds from the retirement corpus. For instance, if you switch jobs, do not withdraw your PF balance; instead, transfer the balance to your next employer’s PF account. Moreover, every time you withdraw your PF, you save that much less, and your retirement corpus decreases too. You will also have to pay taxes if you remove your PF amount before 5 years.

The Bottom Line

Retirement planning in India you save enough to gift yourself a stress-free and financially stable retirement. Moreover, you get peace of mind knowing that you have a solid corpus readily accessible to manage your financial expenses satisfactorily in your golden years.

August 29, 2022

Retirement

Retirement

Top 7 Tips For Retirement Planning For This Year

As retirement sets in, your regular income stops, but the expenses keep rolling. When inflation skyrockets, so will everyday expenses. […]

August 29, 2022

As retirement sets in, your regular income stops, but the expenses keep rolling. When inflation skyrockets, so will everyday expenses.

An evolving demographics, a boost in life expectancy, a surge in nuclear families, and possibly a desire to retire early are other credible reasons retirement planning is a must. Working hard to generate wealth is a given. But that is not enough. You must have solid financial planning as a support system to let you reach your future goals as you start your retired life.

Here are our top 7 retirement tips for 2022 in India.

1. Estimate Your Retirement Corpus

It is essential to have a clear sight of your future goals. You must apply the same philosophy to your retirement planning. It helps to ensure that you retain your lifestyle in your sunset years.

You must estimate and calculate the corpus amount you will need to maintain your current lifestyle after you retire. Considering the factors mentioned below will help:

Your retirement age
Your life expectancy
Your average monthly expenses
An estimated rate of inflation
The rate of return on expected investment pre- and post-retirement

2. Manage Your Debt Smartly

One of the top retirement tips from retirees includes managing your debt wisely before starting your second innings in life. Prioritize expenses according to value. Therefore, home or mortgage loans come first, followed by student debt, car loans, personal loans, and credit card debt should be dealt with innovatively and efficiently.

If you plan to retire within 12 months, you must ensure that you pay off all existing debts and refrain from taking on any new debt of a significant value.

3. Prepare a Health Insurance Strategy

With inflation rising and better quality of life, healthcare will become a significant expense when you mature. Therefore, you must invest in a solid medical plan that covers your partner and you for all health-related concerns until the end of life.

If there is a history of critical conditions like cancer in the family, make sure you purchase adequate riders that will cover major critical illnesses. Mediclaims come in packages, and every package suits a specific need of the beneficiary. So, choosing the right mediclaim policy is essential.

4. Monitor Your Income Sources

You may not be able to maintain your current lifestyle because you consider retirement planning when you had the chance. Working with a financial expert can help you understand the income that you will need to generate post-retirement to keep up with the lifestyle that you are accustomed to.

It will involve carefully determining your current income sources, letting you save and invest early to achieve your retirement targets.

You can liquidate an emergency fund to meet healthcare expenses or for anything else.

5. Imbibe A Disciplined Habit to Invest

Accumulating enough wealth to tide over your post-retirement expenses demands a disciplined approach to smart investing. An intelligent investment plan ensures you have enough saved to reward yourself with a stress-free retirement with financial freedom. In addition, a systematic approach allows your fund to grow over time, making it possible to achieve your life goals.

With the power of compounding, you can counter the effects of inflation, tackle unforeseen expenses, maintain your current lifestyle by investing in a pension plan from an early age, and build a significant corpus.

6. Diversify Your Asset Allocation

Never make the mistake of building your nest egg with a single asset allocation. Instead, it should be a mix of high, medium, and low-risk financial instruments, be it stocks, bonds, mutual funds, gold, or other asset classes.

The perfect retirement plan enables you to start investing early and roll it over 30 and 40 years. You can also explore pension schemes that usually give investors a wide range of options on how you want to build your investment portfolio by selecting the asset class that will provide you with maximum exposure and comes with a guaranteed income in the future.

You must carefully assess your risk appetite and the years remaining for your goal realization.

7. Take Inflation into Consideration

In the long-term scenario, inflation can negatively impact the accumulated value of your investments geared towards your retirement corpus. Hence, the focus should consider a competitive inflation rate and invest in channels that can deliver returns.

Several insurance providers offer pension and retirement plans that provide value to your investment more significantly than the rate of inflation, along with sufficient coverage with a sum assured post-retirement.

The best of retirement tips and tricks says that you should aim to build a corpus that should be sufficient to cater to your financial and lifestyle needs after your retirement, not just for you but for your dependents as well.

Final Takeaways

You get absolute peace of mind when you know that you have a solid corpus readily accessible in the form of a retirement plan that can manage your financial expenses satisfactorily in your golden years.,,,

March 11, 2022

Retirement

Retirement

Investing in National Pension System (NPS) for Tax-Saving After Appraisal? Know More About It Before You Do

Recently a friend called to know my opinion about investing in National Pension System (NPS) for tax savings. He told […]

Recently a friend called to know my opinion about investing in National Pension System (NPS) for tax savings. He told me that as he had exhausted all other options under 80C and 80D and still had some tax liability due he was exploring investing in National Pension System (NPS) for the first time.

“So, you are planning to invest 50k in N.P.S to save 15k in tax?” I asked him.

He replied “Yes, as my income is falling under the 30% tax bracket. Well, not just for saving tax, but for retirement planning too. What do you think?”

So we thought of taking an in-depth look at N.P.S, and its pros and cons.

What is NPS (National Pension System)?

National Pension System or N.P.S is a market-linked social security initiative backed by the Government of India. This pension scheme is voluntary and open to employees from the public, private, and unorganized sectors except for the armed forces. The NPS Scheme (National Pension System Scheme) is regulated by Pension Fund Regulatory and Development Authority (PFRDA and all assets under this scheme are owned by the National Pension System Trust (NPST).

Both resident and non-resident Indians (NRIs) between 18 to 65 years are eligible to join N.P.S. NRI contributions to the NPS Scheme are subject to RBI and FEMA regulatory requirements as prescribed from time to time.

Overseas Citizens of India (OCI), Persons of Indian Origin (PIO), and HUFs are not eligible for opening the N.P.S account.

N.P.S (National Pension System) is mandatory for all government employees who joined service after 1^st January 2004. It is not mandatory for employees in the private sector. But, it is one way you can build a substantial corpus for retirement when there is a lack of adequate social security measures or post-retirement benefits in our country.

There are two types of N.P.S accounts – Tier 1 and Tier 2. While the Tier 1 type of National Pension System (NPS) account’s objective is to create a corpus for retirement corpus, Tier 2 account is like an investment account with more flexibility in terms of deposits and withdrawals similar to mutual fund investment.

Who Should Invest in National Pension System (NPS)?

National Pension System (NPS) is a good scheme for those who want to build a retirement corpus but have a low-risk appetite. Having a regular income (pension) after retiring is the best, especially for employees of the private and unorganized sectors. Starting early and investing systematically can make a large difference to your life once you retire. In fact, the salaried employees can set up an N.P.S account to make the most of the 80C and 80CCD deductions.

How To Set Up Your NPS account?

While registering for the National Pension System Scheme (NPS scheme), you must choose a Pension Fund Manager (PFM) and your scheme preference. Choose your preferred PFM from eight PFMs such as ICICI Prudential Pension Fund, LIC Pension Fund, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Fund, UTI Retirement Solutions Pension Fund, HDFC Pension Management Company, and Birla Pension Fund to manage their investments in National Pension System (N.P.S).

National Pension System (N.P.S) offers four different types of funds for different investors depending on their risk profile, such as Ultra-safe, Conservative, Balanced and Aggressive.

The asset mix of Ultra safe fund includes 60% in Gilt funds and 40% in Corporate bond funds
Conservative fund investments are distributed among Gilt funds, Corporate bond funds,s and Equity in the ratio of 50%, 30%, and 20% respectively.
In the Balanced fund, the investments are divided in a ratio of 33.3% each in Gilt funds, Corporate bond funds, and Equity.
in the Aggressive fund, investments are divided among Gilt funds, Corporate bond funds, and Equity in the ratio of 20%, 30%, and 50% respectively.

You can get an additional deduction of Rs. 50,000 under Section 80CCD(1B) of income tax if you invest in National Pension System (N.P.S).

Pros of National Pension System (NPS)

The National Pension System Scheme (NPS Scheme) is portable across jobs and locations with benefits available under Sec 80 and Sec 80CCD of income tax.
The returns from N.P.S are much-higher compared to other fixed-income assets. Moreover, a part of your contribution is invested in equity. It has delivered 8-10% annualized returns for over a decade.
Your risk appetite is based on your age. For example, if you are starting at age 20, then your equity exposure may be higher close to 60% of your contribution. The equity percentage will reduce by 2.5% every year starting at age 50. Such changes help to balance the risk-return equation.
You can claim an NPS deduction of up to Rs. 1.5lakh for both your contribution and your employers under Sec 80CCD(1) and 80CCD(2) respectively.
60% of your retirement corpus can be withdrawn when you retire. This income is tax-free under the EEE (exempt, exempt, exempt) section.
You can withdraw up to 25% of the amount early for higher studies, marriage, buying or building a house, or medical treatments if you have contributed regularly for 3 years after setting up the account. You can withdraw money thrice during the tenure but with a gap of five years from the last withdrawal.

Drawbacks of NPS

Highest lock-in period among all tax-saving instruments

Compared to all other tax-saving instruments, the NPS has a high lock-in period. You cannot withdraw your full corpus from NPS till age 60. On the other hand, tax-saving instruments like PPF, ELSS, EPF, NSC, etc., have a relatively lower lock-in period. ELSS has a 3-year lock-in period, EPF can be withdrawn after two months of being unemployed while PPF has a 15-year lock-in period for complete withdrawal. Partial withdrawals up to 50% of the balance are permitted in PPF after the completion of 5 years from account opening. Premature closure based on specific medical and educational grounds is also permitted in PPF after five financial years.

Taxation on Annuity

At age 60, i.e., on retirement, you can withdraw a lump sum of up to 60% of the fund available in his NPS account and invest the balance in an annuity plan. Annuities are insurance contracts that promise the buyer regular income either immediately or after a stipulated period.

Currently, there are 11 annuity service providers approved by PFRDA such as Life Insurance Corporation of India (LIC), HDFC Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd., SBI Life Insurance, Star Union Dai-ichi Life Insurance Co. Ltd., Bajaj Allianz Life Insurance Company Limited, Edelweiss Tokio Life Insurance Co. Ltd., India First Life Insurance Co. Ltd., Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd., Kotak Mahindra Life Insurance Co. Ltd., and Max Life Insurance Co. Ltd.

An annuity in India is taxable. The balance of 40% invested in the annuity plan will not generate a tax-free pension for the investor. It does not make sense for a retired person to receive income that is taxable as it will reduce his/her overall income after retirement.

Low returns offered by annuity plans

Annuity rates currently offered by insurance companies in India are very low in the range of 5.5-6.5%. These annuity rates are even lower than interest rates banks offer to senior citizens. Interest rates in India are linked to RBI’s repo rate and are generally1-2% higher than the repo rate.

In the future, as India grows and transforms into a developed country from a developing country, the interest rates are likely to fall further. Interest rates in developed countries like the USA, UK, Canada, Japan, and Switzerland are currently meager in the range of 0.5 to 1.5%. So, it is quite natural that in India, as interest rates fall in the future, annuity rates will also take a further dip.

At current annuity rates of 5.5-6.5%, an investment of 1 crore rupees will generate a yearly annuity of just 5.5 to 6.5 lacs. Can you imagine what will happen after 20-25 years amid falling interest rates and rising inflation?

Yes, there is an annuity option called ‘Annuity for Life’ where the investor can choose a higher rate of annuity, but in that case, the investor’s nominee will not get anything on the investor’s death.

Let’s understand this with a real example of an immediate annuity product named LIC Jeevan Akshay Vll.

An investor will get a yearly annuity of Rs. 3,99,750 for an investment of Rs. 50,00,000 on choosing the annuity option -Annuity for Life. On the other hand, if the investor chooses the Annuity for Life with Return of Purchase Price, he or she would get a lower annuity amount of Rs. 2,72,250 for the same investment amount.

In the second case, as the name suggests, the investor’s nominee would get the amount invested back, i.e., Rs. 50,00,000 but must remain content with a lower annuity (difference of Rs. 1,27,500) during his lifetime.

Bottom line: Is it worth investing in National Pension System (NPS)?

Investing in National Pension System (NPS) is not a bad move when you consider that starting early with a small investment can help you build a large corpus for retirement. Moreover, you can also claim tax deductions in your IT returns. However, if you are looking to build wealth NPS should not be the only option you choose to invest in.

As per data available on Moneycontrol the five-year returns of various funds managed by different PFMs in NPS range between 5 to 11.80%. If you invest directly in equity, you can generate a much higher corpus for retirement because of the longer investment duration.

Historical data proves that stock markets are generally stable over the long term and have beaten all other asset classes in terms of returns. Investing in good-quality stocks, you can generate a return of 25-35% or even higher on your equity investments over ten years or more. Click here to invest in a portfolio of multibagger stocks with the potential to generate 4-5x returns in 5-6 years.

What’s the new proposed change in NPS (National Pension System)?

Read more: About Research and Ranking

December 27, 2021

Retirement

Retirement

7 New Ways To Manage Your Stock Portfolio During Retirement in India

Equity investors on the verge of retirement in India or have retired often wonder how to manage their stock portfolios. […]

Equity investors on the verge of retirement in India or have retired often wonder how to manage their stock portfolios. They would have fulfilled most of their family responsibilities, have less or zero debt and might be enjoying a regular income from multiple sources. They would also have significantly more time on their hands to research buying opportunities. However, their risk-taking appetite may have been reduced.

Here are 7 ways to manage your stock portfolio during your retirement in India

1. Set an investing budget

Most individuals might assume that expenses would drastically reduce after retirement. Although it may be proper for daily necessities, there could be other expenses related to healthcare. You might also have to account for the effect of inflation. Therefore, you could set an investing budget.

You will likely earn a fixed income monthly during your retirement in India. This could be through rental earnings, interest on deposits, pension, or a combination. You could allocate a portion of this amount towards retirement investing. You may begin with as low as 10%-15% of your income and then increase it over time.

2. Avoiding risky bets or speculative trades

Sometimes, the temptation of making a high-risk trade gets too alluring. Especially if you feel that it is a calculated bet. In such cases, you may not want to invest more than 2% of your portfolio in a highly volatile stock with great promise. In such a case, your overall retirement investment portfolio wouldn’t be impacted even if the stock doesn’t perform well or its price drops massively.

3. Suitable allocation of capital across stocks

Although experienced and successful investors would recommend creating a highly concentrated portfolio to create substantial wealth. It may be risky if you haven’t selected the right stocks. Therefore, you may not wish to allocate more than 5% of your entire holding to a single stock. Thus your overall retirement portfolio will not be impacted by the underperformance of a few stocks. However, you could take concentrated bets if you rely on high-quality research to create a robust retirement investment portfolio of stocks.

4. Sticking to blue chips

Bluechip companies are credible firms that have delivered consistent profits throughout good and bad times. In addition, they have tremendous goodwill, are incredibly stable, highly renowned, and offer steady gains. In India, stocks like HUL, Asian paints, TCS, Infosys, Reliance, Pidilite, and P&G have delivered favorable returns for their investors over multiple decades, making them good bets to have in your retirement portfolio.

5. Dividend aristocrats

You wouldn’t mind earning additional passive income during your retirement in India. This is possible by investing in shares of companies that pay attractive dividends regularly. Allocating a more significant percentage towards high dividend-yielding stocks will provide you with a regular flow of income that would increase over time.

Most experts recommend that you worry very little about the overall return on your assets. Instead, you should focus more on converting your retirement assets into reliable and sustainable retirement income sources in India.

6. Index investing

Only 7 stocks of the original index basket are still featured in today’s Sensex. However, the index has consistently delivered ~15% CAGR for the last 40 years.

It implies that the bad companies in the index are automatically removed from the list of companies, and new companies are added. This allows the overall index to grow as only those companies that sustain over time remain. Therefore an investor can leverage this strategy by incurring low risk and minimal cost. In addition, you can mirror the index for your retirement portfolio without changing weight or constituents.

7. Leaving a legacy

It is important to remember that equities should be held for the long term. Therefore, you may wish to create a basket of fundamentally strong companies that will likely last for a long time and compound your wealth. Doing so will let you leave a fortune for your descendants post-retirement. Moreover, define the nominees for your Demat account. You may not want your legal heirs to deal with tedious paperwork after passing.

Finally, remember to arrange for emergency funds, health insurance, and savings in deposits for regular income before investing in equities for your retirement in India. Buy good stocks and hold despite the daily ups and downs of the markets.

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