Need info about investment in NSCs?

Hi all, it’s investment time for me now. To save my taxes, gotta submit my investment proofs in office payroll division by 10th.

I am 21, have never done any investment before, just a simple savings/salary account. I was plannin’ to invest in these Investment/Insurance plans from companies like Max New York, ICICI Prudential. Then the market crashed and i didn’t do it at that time.

A Senior manager of mine suggested to invest in NSCs, according to him, its one of the very best and secured plus simple investment, unlike these other investment plans.

Can you plz tell me how to go about it, is it really that simple and secured, pros and cons, time for processing, interest rate, is it done through Post office, can i withdraw/increase the amount next year or is it like fixed for 2-3 yrs or more ? Any other feasible or better option.

I am planning to invest an amount between 50K and 1 Lakhs, at a minimum risk and i wanna keep it simple.

Thanks in advance..

Need info about investment in NSCs?
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3 Replies to “Need info about investment in NSCs?”

  1. Hey….Though NSC is Safest Investment, I wouldn’t bet my money on it. The reason, I’m saying that is because it has Commitment period of 6 years. In my view 6 years is a Long term & if I invest in Equity or MF at this point of time. i will surely expect more than 20% returns. One more plus point is that the Long term gains from Equity are NOT Taxable.

  2. I want to tell you that NSC & PPF are good investments. Yes, return on NSC is taxable & you are supposed to show the interest in your income from next year.

    Now I want to tell you about Nani’s answer for offering you an insurance product. Nani is an insurance advisor & is on this community for marketing & not the help others. He told you that you can remain in debt fund in his product but did not tell you about the charges of that product & explained that if you will remain invested in debt, you will not get back the invested amount in 10-12 years, forget return.

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