Mutual Fund vs Post Office MIS vs SCSS: Rs 9 lakh investment; which will give the highest return; see calculations
Compare Mutual Funds, Post Office MIS, and SCSS for a Rs 9 lakh investment. Discover which option offers the highest return, considering expected returns, interest rates, and government-backed security features.
When investing Rs 9 lakh, choosing the right option between Mutual Funds, Post Office Monthly Income Scheme (MIS), and Senior Citizen Savings Scheme (SCSS) can significantly impact returns. Mutual Funds offer higher potential returns, while Post Office MIS and SCSS provide government-backed security with fixed interest. This comparison analyzes expected returns over 5 years, interest rates, and the unique benefits of each option to help you make an informed decision on which investment avenue suits your financial goals best.
Mutual Fund (Lumpsum Investment)
Type of Investment: Lumpsum, where a significant sum is invested at once.
Return
Expected at 12% annually.
Calculation
- Time Period: 5 years.
- Investment Amount: Rs 9,00,000.
- Estimated Returns: Rs 6,86,108.
- Total Value: Rs 15,86,108.
Post Office Monthly Income Scheme (MIS)
Interest Rate: 7.4% per annum.
Calculation
Monthly Interest: Rs 5,550 (on Rs 9 lakh investment).
Features
- Security: Government-backed, low-risk.
- Interest Disbursement: Monthly.
- Additional Benefits: Sovereign guarantee, safe investment option.
- Maturity: Can be withdrawn after a fixed tenure.
Senior Citizen Savings Scheme (SCSS)
Interest Rate: 8.2% per annum.
Features
- Time Period: 5 years (extendable by 3 years).
- Investment Amount: Rs 9,00,000.
- Quarterly Interest: Rs 18,450.
- Total Interest Earned in 5 Years: Rs 3,69,000.
- Maturity Amount: Rs 12,69,000.
- Security: Government-backed, superlative capital security.
- Withdrawal: Premature withdrawals allowed with penalties.
