In the investment classroom of the market, three students compete: NSC, FD, and lumpsum mutual funds. With Rs 1 lakh as seed capital over five years, which one graduates with the highest returns? We crunch the math to reveal the winners.
National Savings Certificate leads the safety pack. This five-year scheme compounds at 7.7% with Section 80C benefits. Rs 1 lakh matures to Rs 1.44 lakh—predictable, protected, and perfect for conservative portfolios.
Fixed Deposits follow closely, trusted for generations. Post office rates at 7.5% edge out banks’ 6-6.5%. Interest is taxed, yet the principal remains secure. Expect Rs 1.45 lakh from a Rs 1 lakh investment, though real returns dip against inflation.
Lumpsum in equity mutual funds steals the show for growth seekers. Averaging 12% annually, it transforms Rs 1 lakh into Rs 1.76 lakh. Market risks apply, but long-term trends favor this high-reward path.
Advisors stress a holistic view: NSC for ironclad security, FD for practical liquidity, mutual funds for ambitious returns. Weigh risks, taxes, and personal objectives. True wisdom lies in tailoring investments to your life’s financial blueprint, ensuring every rupee works toward your goals.