Retirement funding using NSC or KVP – Which is a better option for a 40 yr old ?

POSTED BY nrshari ON September 21, 2014 10:34 pm ONE COMMENT


This might have been asked before but I couldnt find any thread.Hence asking.

Am 40 years and plan to retire (like most) by 60. I am investing about 40K in various MF’s. Additionally i wanted to invest 50K in a year or so.

Instead of investing in MF/Equity would the idea of investing the same 50K every month on KVP or NSC (10 years) be a better options?. This would add an income of 1.14Lakhs every month. Is this a good way to build a monthly retirement income ?



One reply on this article “Retirement funding using NSC or KVP – Which is a better option for a 40 yr old ?”

  1. santy221 says:

    My suggestion is that considering your age you need to have a little bit more tilt towards MFs. Instead of entire 50K in Debt, try splitting them into MF and Debt. How to split depends on your risk appetite.

    KVP and NSC are very old products which don’t offer tax free interest. PPF scores high on this and offers tax free interest. Also the PPF limit has been increased to 1.5 lakh per year which means more savings!

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