NSC vs FD vs Lumpsum: If you want to invest your money somewhere for 5 years, then you have options like NSC, Post Office FD and Mutual Funds Lumpsum. Know here where you can get more profit.
NSC vs FD vs Mutual Funds Lumpsum: If you have a lump sum amount and you are thinking of investing it for the long term, then you have many options. You can invest it in National Savings Certificate of Post Office or FD of Post Office. Both of these are safe investment options. NSC is giving interest at the rate of 7.7% and Post Office FD is giving interest at the rate of 7.5%.
On the other hand, if you can take a little risk, then another way is Mutual Funds. You can deposit lump sum amount in it and take advantage of a good interest rate. But mutual funds are market linked schemes, so interest cannot be guaranteed in it like NSC or any other government scheme. However, experts believe that there will be an average return of 12 percent on long term investment in it. This return can be less or more. If you are also thinking of investing a lump sum amount, then know here that if you invest Rs 1 lakh in NSC or FD or Lumpsum, then how much benefit will you get?
How much benefit in NSC?
National Savings Certificate i.e. NSC is currently giving interest at the rate of 7.7 percent. If you invest Rs 1 lakh in this scheme, then at the rate of 7.7 percent, you will get Rs 44,903 as interest on it for 5 years. In this way, you will get Rs 1,44,903 on maturity. On the date on which you buy the NSC certificate, you will get the interest rate for 5 years as per that date. Meanwhile, if the interest rates are increased or reduced by the government, then it does not affect your NSC account.
What will you get on Post Office FD?
If you invest in Post Office FD, then at present you will get interest at the rate of 7.5%. In such a situation, on investing 1 lakh rupees, you will get 44,995 rupees as interest in 5 years. In this way, you will get a total of 1,44,995 rupees after 5 years. If seen, the interest of NSC and FD will remain close. One advantage of both these schemes is that you will also get tax benefit under 80C.
How much benefit in Lumpsum?
If you invest Rs 1 lakh in mutual funds through lump sum, then at an estimated return of 12 percent, you will get Rs 76,234 as interest. In this way, in 5 years you will get a total of Rs 1,76,234, which is much better than NSC or FD. If this return is less than 12 percent, then at 10% interest rate you will get Rs 1,61,051 in 5 years, at 9% interest rate you will get Rs 1,53,862 and at 8% interest you will get Rs 1,46,933. On the other hand, if you get a return of more than 12 percent i.e. about 15%, then the amount will more than double in 5 years. In such a situation, at 15 percent interest you will get Rs 2,01,136. In this way, you are expected to get much more profit in lump sum. Also understand this thing related to Mutual Funds Lumpsum
In the case of Lumpsum, financial experts believe that you should invest in Lumpsum only when you have a large capital and you have a good understanding of the market. A small mistake in this can also cause you loss. If you are a new investor, then it is better that you invest in it only after consulting an expert.
(Disclaimer: Investments in mutual funds are subject to market risks. Do your own research or consult your advisor before investing.)
