54EC Bonds vs Equity Calculator

Calculate the difference in post-tax returns between 54EC bonds & Equity

Investors often consider investing in 54 EC Bonds, that help provide a tax-exemption against capital gains on real-estate. However, this comes at the expenses of a lower taxable interest-rate on these bonds and 5-year lock-in period.

Considering that 54 EC bonds are by definition a long-term investment (compulsory 5-year lock-in), it makes sense to compare the returns on 54 EC Bonds with that of an equity investment (with the remaining money after paying the taxes) with the same 5-year holding period (especially in the context of how equity risks reduce over time). Not only does equity provide a much higher potential return, but this also ensures that your money is not locked in and is available to you if suddenly required.

The calculator below can help you run sensitivities on the difference in ending values of 54EC bonds vs Equity.