I am 69 years old, retired from service, my wife is 64 years and my unmarried daughter is 32 years. My investments in PPF have matured and I want to invest the amount in my daughter’s name or some amount in our name so that we can get some money on a monthly or quarterly basis. What are the options?

Pradip Guha Roy, Calcutta

Senior citizens get a better return on investments and since you and your wife are both senior citizens, you may consider making a lump sum investment to get the benefit of higher interest rate/return on investment and include your daughter as a nominee. If your daughter is an income tax assessee, return on investment made in her name will be lower and may be liable for income tax at her hands. Your objective is to get a quarterly or monthly return as your query suggests.

Given your age, you may consider investment schemes such as SCSS where investments can be made up to Rs 15 lakh and there is tax benefit on investment under this scheme of up to Rs 1.5 lakh under section 80C of the Income Tax Act. The returns are available on a quarterly basis and interest is at 7.4 per cent per annum with a tenure of 5 years. Another option for lumpsum investment is annuities with immediate payout on monthly, quarterly, half yearly or annual basis either for life or for a certain period opted by the investor. Keep in mind that income from both SCSS and annuities are taxable.

Starting an SIP

Is it possible to open an SIP account while investing in mutual funds

online?

J. Chakraborty, Calcutta

Yes, it is possible to start an SIP while investing in direct plans. Your mutual fund service provider will give the option of SIP or lumpsum at the time of investment. You may also use online tools such as Mutual Fund Utilities or mutual fund aggregators.

If you have any queries about investing or taxes or a high-cost purchase, mail to: btgraph@abp.in, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.