Investment Guide: Which is better - LIC, NSC, PPF or FD ?

[webmaster]

Dear Members,

As the Financial year is coming to an end and Salaried persons need to submit Investment proofs to avail Tax benefit, need advise from our Financial analyst/expert members on Small Savings Schemes.

Which investment option is recommended among the following to get maximum benefit?

• LIC Policy
• National Savings Certificate (NSC)
• Public Provident Fund (PPF)
• Bank Fixed Deposit

Suggestions are welcome

[deven1101]

PPF is best as interest rate is maximum and its a EEE. No tax at any stage.
LIC is also EEE but return very low.
FD and NSC have tax on interest earned as it would add to total income of that FY.
Apart from these guaranteed investments ELSS also good.

[umesh.prabhakar1965@rediffmail.com]

The entire Tax Savings instruments are good and subjective in nature,too. The whole phenomena of tax saving will be based on the individuals understanding on horizon/period of savings.

Regards

Umesh Prabhakar

[yadav_ajay]

very rightly said by Umesh ji.

All investment portfolio depends on your age, duration, risk taking capacity, and objective (Tax Saving or just investments), amount to be invested.

All these factor differ individual to individual, so, portfolio.

[webmaster]

Thank you all for the inputs. I understand Investment needs proper planning and consultation.

Just wanted some quick inputs if NSC and Fixed Deposit returns the same interest amount.

[umesh.prabhakar1965@rediffmail.com]

Dear Jayanta,

NSCs and FDRs do fall in the category of 80(C) but they don not fall in the category u/s 10(10)D.
It means GAIN is taxable at the time of maturity. PPF account is the instrument for at least for 15 years and fall in the category of both the sections( as per existing income tax act).

This is for the information

Regards

Umesh Prabhakar