Topic: I am investing Rs. 5000 every month in NSC am I investing proper?

Please advise?

Dar moiz, for getting to know whether you are investing properly or not – we need to know the goals and the time horizon that you are saving for.
The benefits of investing in an NSC are the fact that you can get an income tax deduction on both the the amount invested as well as the interest earned very year under section 80c.

Additional advantages being that there is no tax deduction at source.
Certificates can be kept as collateral security to get loan from banks.

However , on the flip side the interest rate is fixed by the Govt. and stands at 8% compounded half yearly as of date also there is a stringent lock in period requirement.
I would suggest that you should look at diversifying your portfolio if this is your only investment and look at investing some portion of your money in high growth securities like equity mutual funds and some for liquidity purposes in your savings bank or a liquid fund.

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