Why is the choice on annuity limited?

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OLM Desk - 17 August 2015

Annuity is nothing but a periodic payment drawn from a lump-sum payment for life or a fixed tenure depending on the tenure opted. The choice on annuity is limited, owing to the annuity market being not as vibrant as other financial instruments like insurance and mutual funds. The rate of return on an annuity is 5-6 per cent, which makes them unattractive by way of returns when compared to other available options, including bank deposits, which pay much higher.


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