Should Aged People Invest in Govt. Bonds or Stock Market?

Invest to Preserve wealth for retirement

How to invest resources to produce income and preserve wealth is one of the most important decisions people must make as they get closer to retirement age. The choice of whether to invest in stocks or government bonds can have a substantial impact on the financial security and standard of living of elderly people. Positional share trading advice in India can help in making the best choice. In this post, we’ll examine the benefits and drawbacks of the stock market and government bond investing for senior citizens and offer advice on choosing suitable options based on your unique situation.

How Much Money Should You Invest in Stocks as a Beginner?


Government bond investments can offer aged people a steady income source

Whether to invest in stocks or government bonds depends on several variables, including a person’s financial objectives, the time horizon for making investments, and the level of risk tolerance. For seniors, preserving capital and protecting their money from loss should be a priority.

Government bond investments can offer aged people a steady and regular income source. People with a low-risk tolerance and wish to protect their wealth offer a smaller chance of loss than equities and may be a good option. Government bonds are a more reliable investment option because of their lower volatility and immunity from market swings compared to stocks.

Government bonds might not be ideal for people who want more significant returns and a longer investment time horizon. Because interest rates on government bonds are fixed, investors may not be able to outperform inflation over the long term. Furthermore, as interest rates increase, the value of current bonds may decline, which could result in a loss if the investor needs to sell the bonds before maturity.

The stock market, in comparison, has greater risk and volatility but has the potential for better profits over the long run. The value of an investment in stocks can change depending on the market, but it can also result in capital appreciation and dividend income. As a result, older investors with limited risk tolerance and short investment time horizons may need to be a better fit for stock trading.

Stocks have the potential to provide more significant returns

Aged investors should base their choice of whether to invest in stocks or bonds on their financial objectives, level of risk tolerance, and time horizon for the investment. Stocks have the potential to provide more significant returns but also carry a higher level of risk and volatility than government bonds, which are typically thought of as low-risk investment options that can deliver a steady income stream. Ultimately, the greatest strategy for elderly persons looking to preserve their wealth and become positional traders in India while producing income and achieving long-term financial security may comprise a balanced portfolio containing government bonds and stocks.



1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.


The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).


The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

Enjoy this recommendation?
Share with your friends

Your return could be much more


access our premium recommendations

Swing Trading Advice

Subscription Period
3 months / 6 months / 12 months
7900 for 3 months*
  • * referred calendar months here
    e.g. Jan 20, 2020 — April 20, 2020

  • top 9-10 trade advice / month
  • average profit 9-10% / advice
  • short to medium term trade
  • ...and other exclusive benefits

Subscribe With Us

Get free Trading tips and Investment advice

We respect your privacy.

You cannot copy content of this page