Quick Reference Guide For Financial Planning Aug 2012

Quick Reference Guide
Analyze your financial status, yourself. Make your goals meet.
8th August 2012
The guide gives the returns of asset classes for different periods of time, to be used in your personal financial planning.
Indicators: No change from last month Less than last month More than last month
Summary of investment return rates

Returns are shown as an annualized %, and are not adjusted for inflation or taxes. Type of Asset 10 years 3 years Debt Savings bank Debt Fixed deposits 8.00 to 9.00 % 8.75 to 9.25 % Debt Mutual funds 8.02 % 8.78 % Equity Mutual funds 24.53 % 11.74% Equity Nifty 18.79 % 6.00 % Gold 19.64 % 25.80 % Real estate -9.45 % to 30.76 % * -7.17 % to 36.32 % * Real estate returns for 4 years based on NHB Residex data 1 year 4.00 to 7.00 % 7.25 to 9.30 % 12.54 % 9.25 % 2.41 % 21.69 % -16.28 % to 39.35 %
Return rates in %
30 25 20 15 10 5 0 9 8.02 9.25 8.78 24.53 18.79 19.64 11.74 6 2.41 12.54 9.3 9.25 25.8 21.69
10 years
Debt Fixed deposits Debt Mutual funds
3 years
Equity Mutual funds
1 year
Equity Nifty Gold
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Debt Savings Bank

After the savings rate deregulation by the RBI, most of the banks still continue offering 4% on the savings bank balances. The banks that offer higher savings bank rates are 1 2 3 4 5 Yes Bank: Kotak Mahindra Bank: Indusind Bank: Ratnakar Bank: Karnataka Bank: 6 % up to Rs. 1 lac and 7 % above Rs. 1 lac 5.5 % up to Rs. 1 lac and 6 % above Rs. 1 lac 5.5 % up to Rs. 1 lac and 6 % above Rs. 1 lac 5.5 % on any balance amount 4% up to Rs. 2 lac and 5 % above Rs. 2 lac
Debt Fixed Deposits

A list of interest rates for fixed deposits of varying duration's is presented in the table below. Use the table to find out the banks offering the higher interest rates for your fixed deposit investments. Bank Axis Bank Bank of Baroda Bank of India Canara Bank Central Bank of India HDFC Bank ICICI Bank Kotak Mahindra Bank State Bank of India Union Bank of India Yes Bank Less than 90 days 6.50 % 4.50 % 5.50 % 7.00 % 7.00 % 7.00 % 6.50 % 7.00 % 8.00 % 6.25 % 6.25 % 1 year 9.25 % 8.75 % 9.25 % 9.25 % 9.30 % 7.25 % 8.00 % 9.25 % 9.00 % 9.25 % 9.00 % 3 years 9.25 % 8.75 % 9.00 % 9.00 % 9.00 % 9.25 % 9.25 % 9.00 % 9.00 % 9.25 % 8.75 % 10 years 8.75 % 8.00 % 9.00 % 9.00 % 8.50 % 8.25 % 8.50% 9.00 % 8.50 % 8.50 % 8.75 %
Interest rates are shown for amounts less than Rs. 1 crore. The rates can differ for less than Rs. 15 lacs deposits.
The interest rates on fixed deposits have been stable over the last one month. However, Investors should start preparing for lower rates on their new fixed deposits in the future.
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Debt Mutual funds

NAV : Net asset value in Rupees per unit
The top 5 performing funds over a 10 year period are S. No. 1 2 3 4 5 Scheme name ICICI Prudential Long-term Reg Kotak Bond Regular Escorts Income IDFC Dynamic Bond Plan A Sahara Income NAV 10 years before 10.50 14.54 16.67 10.16 10.14 NAV current 23.09 31.86 36.25 21.94 21.28 Average Annualized % 8.19 % 8.16 % 8.07 % 7.99 % 7.69 % 8.02%

The top 5 performing funds over a 3 year period are S. No. 1 2 3 4 5 Scheme name IDFC SSI Medium-term Plan B SBI Dynamic Bond IDFC SSI Medium-term Plan A Escorts Income Birla Sun Life Medium Term Retail NAV 3 years before 10.39 10.59 14.70 28.22 10.25 NAV current 12.21 13.69 18.94 36.25 12.99 Average Annualized % 9.25 % 8.92 % 8.83 % 8.70 % 8.21 % 8.78 %

The top 5 performing funds over a 1 year period are S. No. 1 2 3 4 5 Scheme name Escorts Income Kotak Bond Deposit Kotak Bond Regular SBI Dynamic Bond SBI Magnum Income NAV 1 year before 31.73 26.42 28.32 12.22 24.21 NAV current 36.25 29.72 31.86 13.69 26.99 Average Annualized % 14.24 % 12.49 % 12.49 % 11.99 % 11.49 % 12.54 %

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Equity Mutual funds

NAV : Net asset value in Rupees per unit
The top 5 performing funds over a 10 year period are S. No. 1 2 3 4 5 Scheme name Franklin India Bluechip ICICI Prudential Top 200 Kotak 50 SBI Magnum Equity Sundaram Select Focus Reg NAV 10 years before 21.13 11.49 10.79 8.21 9.86 NAV current 213.17 106.87 99.30 43.40 80.52 Average Annualized % 25.99 % 24.97 % 24.84 % 23.49 % 23.35 % 24.53 %

The top 5 performing funds over a 3 year period are S. No. 1 2 3 4 5 Scheme name ICICI Prudential Focused Bluechip Equity Inst I ICICI Prudential Focused Bluechip Equity Retail ICICI Prudential Top 100 Inst I Franklin India Bluechip Religare Agile NAV 3 years before 11.55 11.41 14.31 156.98 5.10 NAV current 16.97 16.39 19.71 213.17 6.82 Average Annualized % 13.68 % 12.83 % 11.26 % 10.74 % 10.17 % 11.74 %

The top 5 performing funds over a 1 year period are S. No. 1 2 3 4 5 Scheme name ICICI Prudential Top 100 Inst I Religare Agile ICICI Prudential Top 100 Canara Robeco Large Cap+ UTI Top 100 NAV 1 year before 17.75 6.16 124.82 10.03 26.72 NAV current 19.71 6.82 136.76 10.83 28.58 Average Annualized % 11.04 % 10.71 % 9.57 % 7.98 % 6.96 % 9.25 %
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Equity Nifty
The returns of the Nifty index are listed below for 4 different periods. Years 10 5 3 1 Start value 953.55 4462.10 4481.40 5211.25 End value 5336.70 5336.70 5336.70 5336.70 Absolute % 459.67 % 19.60 % 19.09 % 2.41 % Annualized % 18.79 % 3.64 % 6.00 % 2.41 %
These returns could be achieved by following a passive investment strategy in index mutual funds. This is the recommended route for investors who do not want to get involved in direct investment in the equities of individual companies. It would be possible for skilled investors to achieve higher returns by investing directly in equities of companies and following an active investment strategy. This is not recommended for normal investors as they involve a higher degree of risk, and need the investor to have a higher expertise in the dynamics of equity investing.
Gold
The returns given by gold are listed below for 4 different periods. Years 10 5 3 1 Start value 4950 8784 14934 24432 End value 29731 29731 29731 29731 Absolute % 500.63 % 238.47 % 99.08 % 21.69 % Annualized % 19.64 % 27.62 % 25.80 % 21.69 %
Investments in gold can be done by investing in physical gold bars and coins, or in the gold Exchange Traded Funds (ETF's) available on the stock exchanges.
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Real estate
Analysis of top and bottom 3 cities during the period 2007-2012. NHB Residex's index was used for the analysis. Top 3 cities NHB Residex Years 4 3 1 Years 4 3 1 Years 4 3 1 Start 104 120 218 Start 100 139 165 Start 101 103 148 End 304 304 304 End 217 217 217 End 181 181 181 Absolute % 192.31% 153.33% 39.45% Absolute % 117.00% 56.12% 31.52% Absolute % 79.21% 75.73% 22.30% Annualized % 30.76% 36.32% 39.45% Annualized % 21.37% 16.01% 31.52% Annualized % 15.70% 20.67% 22.30%
Chennai
Faridabad
Pune
Bottom 3 cities NHB Residex Years 4 3 1 Years 4 3 1 Years 4 3 1 Start 119 71 67 Start 106 90 86 Start 96 65 83 End 80 80 80 End 72 72 72 End 86 86 86 Absolute % -32.77% 12.68% 19.40% Absolute % -32.08% -20.00% -16.28% Absolute % -10.42% 32.31% 3.61% Annualized % -9.45% 4.06% 19.40% Annualized % -9.22% -7.17% -16.28% Annualized % -2.71% 9.78% 3.61%
Jaipur
Kochi
Hyderabad
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Sources of information
The analysis presented above is based on information available in the public domain. Specific sources of the information are listed below. Type of Asset Debt Savings bank Information sources State Bank of India - www.sbi.co.in Yes Bank - www.yesbank.in HDFC Bank - www.hdfcbank.com Debt Fixed deposits Debt Mutual funds State Bank of India - www.sbi.co.in Term deposit rates of varying durations and below Rs. 1 Crore Value Research - www.valueresearchonline.com Based on the results of the point to point returns calculator for Debt Income funds Value Research - www.valueresearchonline.com Based on the results of the point to point returns calculator for Equity Large Cap funds with growth options National Stock Exchange of India - www.nseindia.com Historical index data is used for the analysis MCX - www.mcxindia.com www.kitco.com www.goldprice.org Real estate Residex - www.nhb.org.in Data is treated to a subjective analysis due to the localized nature of real estate prices
Equity Mutual funds
Equity Nifty Gold
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Quick Reference Guide

Analyze your financial status, yourself. Make your goals meet.

8th August 2012

Summary of investment return rates