Mutual Fund vs POMIS: What will be your returns in 5 years on investment of Rs 15 lakh; see calculations
Compare the returns from Mutual Funds and Monthly Income Scheme (MIS) on a Rs 15 lakh investment over five years. Explore interest rates, features, and projected growth in this detailed analysis.
When investing Rs 15 lakh, choosing between a Monthly Income Scheme (MIS) and Mutual Funds depends on your financial goals and risk tolerance. MIS offers fixed returns at 7.4% annually, ensuring stability and predictable income. On the other hand, mutual funds, while subject to market risks, can deliver higher returns. In this comparison, we analyse their features, benefits and potential returns to help you make an informed investment decision.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning)
Interest Payable
Interest Rate: 7.4% per annum (payable monthly) effective from 01.01.2024.
Minimum Amount for Opening and Maximum Balance
Minimum Deposit: Multiples of Rs. 1,000.
Maximum Investment
- Rs. 9 lakh for a single account.
- Rs. 15 lakh for a joint account.
- Individual cap: Rs. 9 lakh (including share in joint accounts).
- Joint Accounts: Equal shares for all joint holders.
Salient Features
Who Can Open an Account?
- Single adult.
- Joint account (up to 3 adults).
- Guardian for a minor or person of unsound mind.
- Minor above 10 years in their own name.
Deposit Details
- Minimum: Rs. 1,000 (and in multiples of Rs. 1,000).
- Maximum: Rs. 9 lakh (single) or Rs. 15 lakh (joint).
- Joint accounts: Equal investment share for all holders.
- Separate limits for guardian-held minor accounts.
Interest Details
- Payable monthly, starting one month after account opening.
- Unclaimed interest doesn’t accrue additional interest.
- Excess deposits refunded with savings account interest applied.
- Withdrawal options: Auto credit, ECS, or CBS Post Office accounts.
- Interest is taxable.
What Will Be Your Return in 5 Years on an Investment of Rs. 15 Lakh?
Monthly Interest Payable: Rs 9,250.
Mutual Funds
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Popularity: One of India’s top investment choices.
Assets Under Management (AuM): Rs. 24.25 trillion as of June 2019.
- Market Risks: Returns are subject to market conditions but can be estimated.
Popularity: One of India’s top investment choices.
Assets Under Management (AuM): Rs. 24.25 trillion as of June 2019.
Mutual Fund Return
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Purpose: Helps estimate returns for 1, 3, or 5 years.
Benefits:
- Provides accurate return estimates.
- Simplifies financial planning.
- Easy to use, even for beginners.
Purpose: Helps estimate returns for 1, 3, or 5 years.
Benefits:
What Will Be Your Return in 5 Years on an Investment of Rs. 15 Lakh?
-
Initial Investment: Rs 15,00,000.
- Total Returns in 5 Years: Rs 46,58,772 (estimated).
- Growth: Rs 31,58,772 (estimated).
Initial Investment: Rs 15,00,000.