Picture this: You’ve got Rs 1 lakh burning a hole in your pocket and five years to let it grow. Should you go for the rock-solid National Savings Certificate, the reliable Fixed Deposit, or take a calculated shot with mutual fund lumpsum? Let’s break down the numbers and see which delivers the biggest bang.
First up, NSC—a government darling for the ultra-cautious. Locked in for five years at 7.7% compounded annually, it’s tax-deductible under 80C. Your Rs 1 lakh blossoms into Rs 1.44 lakh at maturity. No surprises, no stress, just steady growth.
FDs are the old faithful. Post offices pay 7.5%, banks a bit less at 6-6.5%. Tax hits the interest, but you get flexibility. Rs 1 lakh in a post office FD grows to Rs 1.45 lakh. It’s safe, but in high-inflation times, your purchasing power might lag.
Ready for higher rewards? Equity mutual fund lumpsum investments average 12% yearly returns over five years. Not guaranteed, but Rs 1 lakh could swell to Rs 1.76 lakh amid market ups and downs. This option suits those with stomach for volatility and eyes on superior gains.
The verdict from pros: Prioritize safety with NSC, balance access and security via FD, or chase alpha through mutual funds. Dig deeper into your tax slab, liquidity needs, and inflation outlook. The best pick fuels your unique financial journey, not the latest hot tip.