1 Prioritise safety of capital. A 10-year government security will currently give a return of 6% to 6.5%

2 Stay with products you understand like fixed deposit, G Sec or short-term debt mutual funds

3 Remember there is a need for beating the inflation over longer horizon. So there is need for balance/hybrid mutual fund and a small part in equity mutual fund as well

4 Pay special attention to liquidity of your investments. Generally, property and gold may be a bit hard to liquidate

5 One must have a health insurance cover to protect from medical emergencies

6 Always try to fully understand the fees you pay and post-tax returns from the investment product

7 In India, Senior Citizens Saving Scheme (SCSS) by India Post gives around 7.4% which is a decent rate of return. The maximum amount that you can invest is 15 lacs only. Beyond this, go for short duration debt funds. Do not take dividend option in MF schemes, create your own systematic withdrawal plan. Last part of investments can go to hybrid or large cap funds. Give these mutual fund schemes about five years to grow and then set up a systematic withdrawal plan at the rate of about 4% to 5% of total fund value

With low interest rate scenario setting up a predictable income during retired life is not easy task. It is really very important given that most people won’t receive any inflation-indexed pension