NSC vs Mutual Fund: Which can produce higher returns on Rs 5,50,000, Rs 6,50,000 and Rs 7,50,000 investments in 5 years?

Trying to decide between mutual funds and National Savings Certificate? We have broken down how much your Rs 5,50,000, Rs 6,50,000 or Rs 7,50,000 can grow in 5 years—simple and clear.

Shriti Aniraj | May 25, 2025, 08:48 PM IST

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Mutual Fund Calculator: Choosing between mutual funds and NSC is not always easy—especially when you are putting in a big amount like Rs 5,50,000, Rs 6,50,000 or Rs 7,50,000. Mutual funds come with higher returns but also have market risks. Whereas, National Savings Certificate or NSC offers a safer, fixed return backed by the government. If you are wondering which investment option can offer better results over 5 years, here’s a clear comparison.

(Disclaimer: Don't consider this as an investment advice. Do your own due diligence or consult an expert for financial planning)

1/10

Mutual Funds

A mutual fund is like a team effort where people pool their money and experts invest it in things like shares or bonds. It's for those who want their money to grow more and are okay with a little risk along the way.

2/10

National Savings Certificate

NSC, or National Savings Certificate, is a no-surprise savings option. You invest once and get a fixed return after 5 years. It's backed by the government, so there's no stress about market ups and downs.

3/10

What will be your return on investment of Rs 5,50,000 in Mutual Funds in 5 years?

If the fund does well, your Rs 5,50,000 could grow to around Rs 17 lakh in 5 years. That’s over Rs 11 lakh in potential profit, but remember—it depends on how the market behaves.

4/10

What will be your return on investment of Rs 5,50,000 in NSC in 5 years?

In 5 years, your Rs 5,50,000 becomes about Rs 7.96 lakh. The return is fixed, so you know exactly how much you'll get, which can be reassuring for many people.

5/10

Why do people prefer Mutual Funds?

You don’t have to be a market expert—professional fund managers take care of where your money goes. You can start small, invest in different industries, and take your money out when needed.

6/10

Why do people prefer NSC?

It’s simple, safe, and steady. No market drama. You get tax benefits, and even though the returns aren’t huge, they’re reliable. Great for someone who doesn’t want to take chances.

7/10

Different Mutual Funds for different financial goals

Some focus on high growth, some give regular income, and some just follow the market. So, whether you want to play it safe or go aggressive, there’s a fund that fits.

8/10

Mutual Funds risk

Markets go up and down, and so can your returns. If you panic easily or need the money in a short time, mutual funds may feel a bit stressful. But long-term investors often see good results.

9/10

NSC’s disadvantages

You won’t lose money, but you also won’t see big gains. And you can’t take the money out early unless there’s an emergency. It’s more like parking your money than growing it fast.

10/10

Mutual Fund vs NSC: Which can produce higher returns on Rs 5,50,000, 6,50,000, 7,50,000 investments in 5 years?

If you want your money to really grow and you don’t mind a bit of risk, mutual funds clearly give better returns. But if you prefer safety, stability, and a no-surprise investment, NSC is the way to go. It’s not about which is better overall—it’s about what suits you better.

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