NSC, FD, or Mutual Funds: Which Rs 1 Lakh Investment Grows Most in 5 Years?

• NSC offers 7.7% annual compound interest, growing Rs 1 lakh to Rs 1.44 lakh in 5 years with tax benefits under Section 80C and high safety.
• Fixed Deposits (FD) from post offices offer 7.5% interest, growing Rs 1 lakh to Rs 1.45 lakh in 5 years, but interest is fully taxable.
• Equity Mutual Funds can yield 10-12% annually, potentially growing Rs 1 lakh to Rs 1.75 lakh in 5 years, but involve market risk.
• Choose NSC for safety, FD for safety and liquidity, and Equity Mutual Funds for higher returns with risk tolerance.
• Consider risk, taxes, inflation, age, income, and future goals when selecting an investment option.

Why It Matters: Equity Mutual Funds offer the highest growth potential for Rs 1 lakh over 5 years, but with higher risk.