2007-02-02 02:11:31 · 6 answers · asked by sathisz 1 in Business & Finance ➔ Investing
yes u'l get tax benefits...... GTI deductions etc..
2007-02-02 02:16:38 · answer #1 · answered by elvisjohn 7 · 4⤊ 0⤋
It primarily depends on your risk profile. If you are extremely risk averse or if you feel that you will need all the money at the end of six years and can not afford the slightest loss of capital, then you should go for NSC
Tax savings funds are good if your not too risk averse..Even if the fund generates 10-12% returns year-on-year, it would be better than NSC, in which the return per year is less than 8% This is because the interest earned on NSC is NOT tax-free giving you an actual incremental return of approx. 5.6%, assuming you are in the 30% income tax rate bracket!!
Currently the stock markets are booming and therefore one can be tempted to think that they will continue that way for the next few years. But the crash of May-2006 should not be forgotten. I believe that the amount invested in tax savings funds should be considered as risk capital..You should ideally strike a balance between the risk-free NSC and comparatively riskly Tax Savings Funds
2007-02-02 13:04:15 · answer #2 · answered by Kaushal V 2 · 0⤊ 0⤋
No. Not in NSCs. Mutual Funds are a better bet today; Be sure to know the background of Mutual Fund operator. MFs are reasonably safe. The formula for investment is 100 minus your age is the risk taking capacity expressed in percentage. In other words, the (100-your age)% of your investments can be in mutual funds.
In comparison to PPFs NSCs give lesser returns. Insurance companies wont pay back any money invested if you have not paid for full 2 years and completed 3 years. So Keep Away.
2007-02-02 10:31:15 · answer #3 · answered by vonaan 1 · 0⤊ 0⤋
One can't ruled out India's growth story.GDP has improved. Mutual fund industry is growing by leap and bound Investing skillfully with comparative study in MUTUAL FUND may turn your investment in a big way. Wherein the NSC gives fixed return. Good tax saving funds have proved worth investment in last few years and some of them are expected to do well in future also. Nothing is wrong by selecting best tax saving funds.om
2007-02-02 13:23:52 · answer #4 · answered by omzsi 1 · 0⤊ 0⤋
Apart from tax benefits i like NSC's as an investment product because the post tax yield is attractive plus you can pledge NSC's with a bank and raise cash and for the banks it is a good long term interest arbitrage.
2007-02-02 12:05:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No
if u have time & skill u can earn more
with same than tax save
trade in index & commodity future
more on my blog
2007-02-02 11:06:34 · answer #6 · answered by dinu_pawar 5 · 0⤊ 0⤋