Franklin Templeton Small Business Retirement Plans: Fill & Download for Free

First about the car next year :)Start a monthly SIP (Systematic Investment Plan) of Rs 30000 for two years.Increase the SIP amount by 10% after one year.Find a Mutual Fund which has the potential to give a 20% return (Not an impossible thing)After 2 years the corpus builds to a Rs. 828000If you are planning to buy something costlier, increase the SIP amountAs to building a future for yourself please read on…HOW TO SAVE RS.10 CRORE “A 30- year old, spending Rs. 50,000 per month now, will need this amount at 60”Thus reads the caption of an article in the Times Personal Finance in Times of India dated 13th June 2016. The article explains the strategy to build a nine figure corpus to handle your future expenditure when your pay cheques stop coming. Monthly expenses of Rs. 60000 today will balloon up to Rs. 4.6 lac after 30 years at a moderate inflation rate of 7 %. To sustain those expenses for 20 years in retirement you need a corpus of Rs. 9 crore, says the article. It warns that the healthcare expenses will grow faster than the inflation and the actual corpus needed may be more. It advises to start saving as early as possible. It explains as to how from a monthly surplus of Rs. 15000-20000 you can build that kind of corpus?Let us examine some low risk investments like, PPF, EPF, Bank Deposits, Bonds, Debt Funds, Post Office Certificate, Infrastructure bonds etc. All these give a yield of 7-8%. A monthly investment of Rs. 20000 in any of these for next 30 years will grow to only Rs. 3 crore, a far cry from Rs. 10 crore we are looking at. But normally there will be an increase in monthly income every year. Though the expenses will also increase but one can hope to increase one’s savings by 10% every year. If one invests 10% more every year the corpus one can expect to build with the same return of 8% is 9 crore. Good. But one hardly finds that kind of discipline in savings where one saves a good amount month after month and keeps putting that religiously in desirable avenues. Savings can be seen lying in savings bank accounts. Data shows that majority of people withdraw from savings within two years. It is even less common to see the savings being increased every year to match an increase in income. Besides other lump sum expenses like education, vacation, buying a nice car, medical expenses, marriage etc keep eating in to these regular savings. It is important that the savings are deployed in more efficient avenues.LIFE INSURANCE (endowment plans) - will offer you assured sum at retirement. But the returns they generate are or only 6-7%. A premium of Rs. 20000 per month will give you only Rs. 2 crore. Unfortunately most people are lured by the agents and take the worst decision of buying Life Insurance. The blunder they commit is mixing Insurance with investment. Buying Insurance is a good decision but go for term plan.TERM PLAN Insurance – is a much better and economical option. A cover of Rs One crore is available for rupees ten to twenty thousand per year. Check comparative premiums, claim settlement record, additional riders and go ahead. Younger the age of entry lesser is the premium.SOVEREIGN GOLD BONDS (SGB)GOLD is a good hedge for bad times plus it is a very good investment too. But the returns are not a straight line. Gold has appreciated 8 – 9 % over a long period. SGB issued by RBI are a much better option than physical gold by virtue of interest @2.75% that one can earn over and above the capital appreciation. Total return is thus in the range of 10- 12 %. It is almost totally a risk free investment. It beats all other investments in safety and returns. These are issued by the Reserve Bank of India and offer host of advantages like; superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. (https://www.rbi.org.in/scripts/FAQView.aspx?Id=109). Interest is taxable at normal rates. Capital appreciation will be taxed as capital gains after adjusting for inflation (Cost inflation index). So one needs to pay this tax only if the price appreciation beats inflation.SHARES generate a much better returns than fixed income instruments. But it is better to avoid investing directly in the shares and, instead, use Mutual Funds route.BENEFITS OF INVESTING IN A MUTUAL FUND?·Professional management. Qualified professionals assisted by research teams.·Affordability. A small investor can invest even Rs.1000 in a Systematic Investment Plan on a regular basis.·Tax benefits. Investments held for over 12 months are exempt from capital gains. Dividend income is Tax Free.·Liquidity. With open-end funds, you can redeem all or part of your investment any time.·Transparency. The performance of MF is reviewed by various publications and rating agencies.·SEBI (Securities Exchange Board of India) regularly monitors them.SIP – (Systematic Investment Plan)SIP is the best method of investing in Mutual Funds. You invest a specific rupee amount at regular intervals regardless of the investment's unit price. As a result, your money buys more units when the price is low and fewer units when the price is high. So there is little to no impact of market volatility. You can update/cancel SIP anytime. You can start as low as Rs. 1000 per month.If you keep investing religiously every month a SIP of Rs. 10000 increased by 10% every year grows to astronomical amounts in 35 years. Consider the following tableRate of return Corpus after 35 years8 % 7. 99 crore10 % 10. 73 crore12% 14.82 crore14% 21.00 croreHISTORICAL RETURNS: from Mutual Funds.Economic Times in its 8th June 2015 issue identified five top Mutual Funds who have been in existence since 20 years. Their 10 years returns were as belowReliance Growth Fund 19.2 %Franklin Templeton Blue chip 18.4%HDFC Equity Fund 20.2%Birla Sun life Advantage 19.4 %Franklin Templeton Prima 17.9 %Better Mutual Funds have emerged. Return of some of the best Mutual FundsLarge Cap Mutual FundsFund Scheme3 Year Return5 Year ReturnSBI Blue Chip Fund82.2 %118%Birla SL Frontline Equity (G)75.4 %99.2 %Kotak Select Focus Fund – Regular88.1 %113 %Franklin India Oppor. (G)82.6 %91.8 %ICICI Pru Focussed Bluechip63 %88.35 %Balanced Funds 3 year Total returnsHDFC Balanced 86%Tata Balanced Fund - Regular (G) 81%L&T India Prudence Fund (G) 82%Tata Balanced 84 %SBI Magnum Balanced 79%Small Cap Funds – 3 year compounded returnsDSP-BR Micro Cap Fund - RP 44.6 % Franklin (I) Smaller Cos (G) 36.9%Mirae Emerging Bluechip Fund (G) 36.5%Diversified Equity 3 year compounded returnICICI Pru Exp&Other Services-RP (G) 32 %L&T India Value Fund (G) 31 %Principal Emerging Bluechip(G) 32 %ELSS Funds 3 year total returnAxis Long Term Equity Fund (G) 112 %Birla SL Tax Relief 96 (G) 102 %Reliance Tax Saver 106 %SBI Tax Advantage Sr 1 109%Each category has its features . Large Cap Funds and are less volatile low return. Small cap funds are the opposite. More volatile high return. Diversified Funds lie in between. Balanced Funds are more stable as a minimum amount goes in low risk debt. ELSS funds are tax saving funds with 3 year lock in and less volatileA word of caution: However these are equity based and subject to market risks. The investors are advised to carefully study the prospects and consult financial advisor before investing in these schemes. Some of the good web sites which provide the relevant information are Stock/Share Market Investing - Live BSE/NSE, India Stock Market Recommendations and Tips, Live Stock Markets, Sensex/Nifty, Commodity Market, Investment Portfolio, Financial News, Mutual Funds, Indiabulls Group is one of India´s top Business houses with businesses spread over Real Estate, Infrastructure, Financial Services and Securities sectors., http://yahoofinance.com.mutualfundindia.com nseindiaBUY A HOUSE ON LOANSavings on rent plus appreciation in market value of house Vs Interest LiabilityHouse rents in metro towns are high. It is better to pay EMI on house loan.ExampleSuppose House costs = Rs one croreSuppose House loan = Rs. 80 Lac @ 9.4% Down payment+ stamp duty = Rs 25 lacThe EMI for a 30 year = Rs. 67000.Suppose the rent = Rs. 35000Extra amount needed = Rs. 32000As the house is yours, the payment of Rs.35000 will not go waste in rent but will be used to buy your own house. If your house appreciates a conservative @9% per year, it will be worth Rs. 15 crore at the end of 30 years.The liquidity issues of paying EMI will remain only for the initial few years. Let’s consider the following hypothetical figures. Your initial salary of Rs. 70000 increases 10% every year. Rent of Rs. 35000 increases 8% annually. Your monthly expenses go up about 6%. You need to arrange extra 32000 for EMI in first year. This goes on reducing fast as belowYear Your Pay House savings Rent >> EMI Deficit EMI-savings1 70000 35000 35000 67000 -320002 77000 40000 37800 67000 -270003 84700 46000 40800 67000 -210004 93000 53000 44100 67000 -140005 102000 61000 47600 67000 -60006 112000 69000 51500 67000 + 20007 123000 77000 55500 67000 +100008 135000 86000 60000 67000 +190009 149000 96000 65000 67000 +2900010 165000 108000 70000 67000 +41000The EMI remains constant but your salary will increase around @10% every year. House expenses go up too but savings increase every year and paying EMI gets easier. Rents too will go up by 7-8% annually thus reducing the gap even between rent and EMI. In the above example the gap between savings and the EMI almost vanishes after five years and the liquidity pressure of the EMI is totally gone. In 10th year the rent also overtakes EMI. You may say that the EMI has become FREE.At the end of repayment of full loan you will be the owner of a valuable property worth about Rs 15 crore. It will come in quite handy on your retirement when there will be no pay cheques.Since you need an initial lump sum for even taking a house loan you may use the SIP route for initial period.Buy a plot from an authorized source - like HUDAA piece of land/ residential plot is perhaps the only investment which matches or even beats returns from Stocks and Mutual Funds. But it is quite an illiquid investment. And that makes it better than stocks/Mutual Funds. You cannot sell it easily when it appreciates a lot. You cannot sell a part of it as in the case of Mutual Funds. Your investment stays and grows. The compounding can be seen taking effect in this and not in Mutual Funds/ stocks as the temptation to book profits it too big to resist.HAPPY FUTURE BUILDING

HOW TO SAVE RS.10 CRORE “A 30- year old, spending Rs. 50,000 per month now, will need this amount at 60”Thus reads the caption of an article in the Times Personal Finance in Times of India dated 13th June 2016. The article explains the strategy to build a nine figure corpus to handle your future expenditure when your pay cheques stop coming. Monthly expenses of Rs. 60000 today will balloon up to Rs. 4.6 lac after 30 years at a moderate inflation rate of 7 %. To sustain those expenses for 20 years in retirement you need a corpus of Rs. 9 crore, says the article. It warns that the healthcare expenses will grow faster than the inflation and the actual corpus needed may be more. It advises to start saving as early as possible. It explains as to how from a monthly surplus of Rs. 15000-20000 you can build that kind of corpus?Let us examine some low risk investments like, PPF, EPF, Bank Deposits, Bonds, Debt Funds, Post Office Certificate, Infrastructure bonds etc. All these give a yield of 7-8%. A monthly investment of Rs. 20000 in any of these for next 30 years will grow to only Rs. 3 crore, a far cry from Rs. 10 crore we are looking at. But normally there will be an increase in monthly income every year. Though the expenses will also increase but one can hope to increase one’s savings by 10% every year. If one invests 10% more every year the corpus one can expect to build with the same return of 8% is 9 crore. Good. But one hardly finds that kind of discipline in savings where one saves a good amount month after month and keeps putting that religiously in desirable avenues. Savings can be seen lying in savings bank accounts. Data shows that majority of people withdraw from savings within two years. It is even less common to see the savings being increased every year to match an increase in income. Besides other lump sum expenses like education, vacation, buying a nice car, medical expenses, marriage etc keep eating in to these regular savings. It is important that the savings are deployed in more efficient avenues.LIFE INSURANCE (endowment plans) - will offer you assured sum at retirement. But the returns they generate are or only 6-7%. A premium of Rs. 20000 per month will give you only Rs. 2 crore. Unfortunately most people are lured by the agents and take the worst decision of buying Life Insurance. The blunder they commit is mixing Insurance with investment. Buying Insurance is a good decision but go for term plan.TERM PLAN Insurance – is a much better and economical option. A cover of Rs. One crore is available for rupees ten to twenty thousand per year. Check comparative premiums, claim settlement record, additional riders and go ahead. Younger the age of entry lesser is the premium.GOLD is a good hedge for bad times plus it is a very good investment too. But the returns are not a straight line. Gold has appreciated 8 – 9 % over a long period.SOVEREIGN GOLD BONDS (SGB) issued by RBI are a much better option than physical gold by virtue of interest @2.75% that one can earn over and above the capital appreciation. Total return is thus in the range of 10- 12 %. It is almost totally a risk free investment. It beats all other investments in safety and returns. These are issued by the Reserve Bank of India and offer host of advantages like; superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. (https://www.rbi.org.in/scripts/FAQView.aspx?Id=109). Interest is taxable at normal rates. Capital appreciation will be taxed as capital gains after adjusting for inflation (Cost inflation index). So one needs to pay this tax only if the price appreciation beats inflation.SO CALLED RISKY INVESTMENTS: Shares generate a much better returns than fixed income instruments. But it is better to avoid investing directly in the shares and, instead, use Mutual Funds route.BENEFITS OF INVESTING IN A MUTUAL FUND?·Professional management. Qualified professionals assisted by research teams manage your money. Diversification. Diversification lowers your risk of loss by spreading your money across various industries and geographic regions. It is a rare occasion when all stocks decline at the same time and in the same proportion.·Affordability. A small investor may not be able to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. A small investor can invest even Rs.500 in a Systematic Investment Plan on a regular basis.·Tax benefits. Investments held for over 12 months are exempt from capital gains. Dividend income is Tax Free.·Liquidity. With open-end funds, you can redeem all or part of your investment any time you wish and receive the current value of the shares. Funds are more liquid than most investments in shares, deposits and bonds.·SIP - Rupee-cost averaging. With rupee-cost averaging, you invest a specific rupee amount at regular intervals regardless of the investment's unit price. As a result, your money buys more units when the price is low and fewer units when the price is high, which can mean a lower average cost per unit over time so there is little to no impact of market volatility. You don't need to speculate on timing the market. You can update/cancel SIP anytime. You can start as low as Rs. 1000 per month. If you keep investing religiously every month, month after month and not withdraw the savings a SIP of only Rs. 1000 grows to astronomical amounts in 35 years. Consider the following tableRate of return on SIP of 1000 Corpus with annual 10% increase in savings8 % 79.90 lac10 % 107.31 lac12% 148.18 lac14% lacThus even Rs 1000 religiously saved and increased gradually has the potential to build a corpus in crores.·Transparency. The performance of MF is reviewed by various publications and rating agencies, making it easy for investors to compare one fund to another. A unit holder gets regular updates, like daily NAVs, fund's holdings etc.·Regulations. All mutual funds are required to register with SEBI (Securities Exchange Board of India) who regularly monitors them.HISTORICAL RETURNS: from Mutual Funds.Economic Times in its 8th June 2015 issue identified five top Mutual Funds who have been in existence since 20 years. Their 10 years returns have done quite well. 10 year period is fairly long to even out any chance fluctuationsFollowing are the returns of 10 years in top fundsReliance Growth Fund 19.2 %Franklin Templeton Blue chip 18.4%HDFC Equity Fund 20.2%Birla Sun life Advantage 19.4 %Franklin Templeton Prima 17.9 %These Mutual Funds have given long term return in the range 18 – 20%. But these are not the best Mutual Funds today. Let us compare returns in 5 year period of some of the best Mutual FundsLarge Cap Mutual FundsFund Scheme3 Year Return5 Year ReturnSBI Blue Chip Fund82.2 %118%Birla SL Frontline Equity (G)75.4 %99.2 %Kotak Select Focus Fund – Regular88.1 %113 %Franklin India Oppor. (G)82.6 %91.8 %ICICI Pru Focussed Bluechip63 %88.35 %Small Cap FundsDSP-BR Micro Cap Fund - RP44.6 % compoundedFranklin (I) Smaller Cos (G)36.9% compoundedMirae Emerging Bluechip Fund (G)36 .5 % compoundedDiversified EquityICICI Pru Exp&Other Services-RP (G)31.6% compoundedL&T India Value Fund (G)29.3% compoundedPrincipal Emerging Bluechip(G)30.3 % compoundedSBI Magnum Multicap Fund (G)24.5 % compoundedUTI MNC Fund (G)25.5% compoundedThematicFranklin Build India Fund (G)32.1% compoundedKotak Infras. & Eco Reform -Standard (G)25.2 % compoundedReliance Pharma Fund (G)22.6 % compoundedELSS FundsAxis Long Term Equity Fund (G)27.7 % compoundedBirla SL Tax Relief 96 (G)25 % compoundedBalanced FundsTata Balanced Fund - Regular (G)ICICI Pru Balanced Fund (G)L&T India Prudence Fund (G)Each category has its features . Large Cap Funds and are less volatile low return. Small cap funds are the opposite. More volatile high return. Diversified Funds lie in between. Balanced Funds are more stable as a minimum amount goes in low risk debt. ELSS funds are tax saving funds with 3 year lock in and less volatileA word of caution: However these are equity based and subject to market risks. The investors are advised to carefully study the prospects and consult financial advisor before investing in these schemes. Some of the good web sites which provide the relevant information are Stock/Share Market Investing - Live BSE/NSE, India Stock Market Recommendations and Tips, Live Stock Markets, Sensex/Nifty, Commodity Market, Investment Portfolio, Financial News, Mutual Funds, Indiabulls Group is one of India´s top Business houses with businesses spread over Real Estate, Infrastructure, Financial Services and Securities sectors., http://yahoofinance.com.mutualfundindia.com nseindia

HOW TO SAVE RS.10 CRORE “A 30- year old, spending Rs. 50,000 per month now, will need this amount at 60”Thus reads the caption of an article in the Times Personal Finance in Times of India dated 13th June 2016. The article explains the strategy to build a nine figure corpus to handle your future expenditure when your pay cheques stop coming. Monthly expenses of Rs. 60000 today will balloon up to Rs. 4.6 lac after 30 years at a moderate inflation rate of 7 %. To sustain those expenses for 20 years in retirement you need a corpus of Rs. 9 crore, says the article. It warns that the healthcare expenses will grow faster than the inflation and the actual corpus needed may be more. It advises to start saving as early as possible. It explains as to how from a monthly surplus of Rs. 15000-20000 you can build that kind of corpus?Let us examine some low risk investments like, PPF, EPF, Bank Deposits, Bonds, Debt Funds, Post Office Certificate, Infrastructure bonds etc. All these give a yield of 7-8%. A monthly investment of Rs. 20000 in any of these for next 30 years will grow to only Rs. 3 crore, a far cry from Rs. 10 crore we are looking at. But normally there will be an increase in monthly income every year. Though the expenses will also increase but one can hope to increase one’s savings by 10% every year. If one invests 10% more every year the corpus one can expect to build with the same return of 8% is 9 crore. Good. But one hardly finds that kind of discipline in savings where one saves a good amount month after month and keeps putting that religiously in desirable avenues. Savings can be seen lying in savings bank accounts. Data shows that majority of people withdraw from savings within two years. It is even less common to see the savings being increased every year to match an increase in income. Besides other lump sum expenses like education, vacation, buying a nice car, medical expenses, marriage etc keep eating in to these regular savings. It is important that the savings are deployed in more efficient avenues.LIFE INSURANCE (endowment plans) - will offer you assured sum at retirement. But the returns they generate are or only 6-7%. A premium of Rs. 20000 per month will give you only Rs. 2 crore. Unfortunately most people are lured by the agents and take the worst decision of buying Life Insurance. The blunder they commit is mixing Insurance with investment. Buying Insurance is a good decision but go for term plan.TERM PLAN Insurance – is a much better and economical option. A cover of Rs. One crore is available for rupees ten to twenty thousand per year. Check comparative premiums, claim settlement record, additional riders and go ahead. Younger the age of entry lesser is the premium.GOLD is a good hedge for bad times plus it is a very good investment too. But the returns are not a straight line. Gold has appreciated 8 – 9 % over a long period.SOVEREIGN GOLD BONDS (SGB) issued by RBI are a much better option than physical gold by virtue of interest @2.75% that one can earn over and above the capital appreciation. Total return is thus in the range of 10- 12 %. It is almost totally a risk free investment. It beats all other investments in safety and returns. These are issued by the Reserve Bank of India and offer host of advantages like; superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. (https://www.rbi.org.in/scripts/FAQView.aspx?Id=109). Interest is taxable at normal rates. Capital appreciation will be taxed as capital gains after adjusting for inflation (Cost inflation index). So one needs to pay this tax only if the price appreciation beats inflation.SO CALLED RISKY INVESTMENTS: Shares generate a much better returns than fixed income instruments. But it is better to avoid investing directly in the shares and, instead, use Mutual Funds route.BENEFITS OF INVESTING IN A MUTUAL FUND?·Professional management. Qualified professionals assisted by research teams manage your money. Diversification. Diversification lowers your risk of loss by spreading your money across various industries and geographic regions. It is a rare occasion when all stocks decline at the same time and in the same proportion.·Affordability. A small investor may not be able to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. A small investor can invest even Rs.500 in a Systematic Investment Plan on a regular basis.·Tax benefits. Investments held for over 12 months are exempt from capital gains. Dividend income is Tax Free.·Liquidity. With open-end funds, you can redeem all or part of your investment any time you wish and receive the current value of the shares. Funds are more liquid than most investments in shares, deposits and bonds.·SIP - Rupee-cost averaging. With rupee-cost averaging, you invest a specific rupee amount at regular intervals regardless of the investment's unit price. As a result, your money buys more units when the price is low and fewer units when the price is high, which can mean a lower average cost per unit over time so there is little to no impact of market volatility. You don't need to speculate on timing the market. You can update/cancel SIP anytime. You can start as low as Rs. 1000 per month. If you keep investing religiously every month, month after month and not withdraw the savings a SIP of only Rs. 1000 grows to astronomical amounts in 35 years. Consider the following tableRate of return on SIP of 1000 Corpus after 35 years --- Corpus with annual 10% increase in savings8 % 23.09 lac 79.90 lac10 % 38.28 lac 107.31 lac12% 64.95 lac 148.18 lac14% 112.32 lac 210 lacThus even Rs 1000 religiously saved and increased gradually has the potential to build a corpus in crores.·Transparency. The performance of MF is reviewed by various publications and rating agencies, making it easy for investors to compare one fund to another. A unit holder gets regular updates, like daily NAVs, fund's holdings etc.·Regulations. All mutual funds are required to register with SEBI (Securities Exchange Board of India) who regularly monitors them.HISTORICAL RETURNS: from Mutual Funds.Economic Times in its 8th June 2015 issue identified five top Mutual Funds who have been in existence since 20 years. Their 10 years returns have done quite well. 10 year period is fairly long to even out any chance fluctuationsFollowing are the returns of 10 years in top fundsReliance Growth Fund 19.2 %Franklin Templeton Blue chip 18.4%HDFC Equity Fund 20.2%Birla Sun life Advantage 19.4 %Franklin Templeton Prima 17.9 %These Mutual Funds have given long term return in the range 18 – 20%. But these are not the best Mutual Funds today. Let us compare returns in 5 year period of some of the best Mutual FundsLarge Cap Mutual FundsFund Scheme =3 Year Return - 5 Year ReturnSBI Blue Chip Fund82.2 %118%Birla SL Frontline Equity (G)75.4 %99.2 %Kotak Select Focus Fund - Regular88.1 %113 %Franklin India Oppor. (G)82.6 %91.8 %ICICI Pru Focussed Bluechip63 %88.35 %Small Cap FundsDSP-BR Micro Cap Fund - RP44.6 % compoundedFranklin (I) Smaller Cos (G)36.9% compoundedMirae Emerging Bluechip Fund (G)36 .5 % compoundedDiversified EquityICICI Pru Exp&Other Services-RP (G)31.6% compoundedL&T India Value Fund (G)29.3% compoundedPrincipal Emerging Bluechip(G)30.3 % compoundedPrincipal Emerging Bluechip(G30.3 % compoundedSBI Magnum Multicap Fund (G)24.5 % compoundedUTI MNC Fund (G)25.5% compoundedThematicFranklin Build India Fund (G)32.1% compoundedKotak Infras. & Eco Reform -Standard (G)25.2 % compoundedReliance Pharma Fund (G)22.6 % compoundedELSS FundsAxis Long Term Equity Fund (G)27.7 % compoundedBirla SL Tax Relief 96 (G)25 % compoundedA word of caution: However these are equity based and subject to market risks. The investors are advised to carefully study the prospects and consult financial advisor before investing in these schemes. Some of the good web sites which provide the relevant information are Stock/Share Market Investing - Live BSE/NSE, India Stock Market Recommendations and Tips, Live Stock Markets, Sensex/Nifty, Commodity Market, Investment Portfolio, Financial News, Mutual Funds, Indiabulls Group is one of India´s top Business houses with businesses spread over Real Estate, Infrastructure, Financial Services and Securities sectors., http://yahoofinance.com.mutualfundindia.com nseindiaBUY A HOUSE ON LOANSavings on rent Vs interest liability on house loan.House rents in metro towns are quite high. It makes economic sense to instead pay EMI on house loan. The point will become clear by taking an example.Suppose you buy a house costing one crore rupees and take a house loan of Rs. 80 Lac @ 9.4%. The EMI for a 30 year loan will be around Rs. 67000. If the rent is around Rs. 35000 then if you can shell out an extra Rs. 32000 the house is yours. Rs.35000 will not go waste in rent but will be used to buy your own house. If your house appreciates a conservative @9% per year, it will be worth Rs. 15 crore at the end of 30 years. The liquidity issues of paying EMI will remain only for the initial few years. Let’s see how.The EMI remains constant but your salary will increase around @10% every year. House expenses go up too but savings increase every year and paying EMI gets easier. Rents too will go up by 7-8% annually thus reducing the gap between rent and EMI. You may have to pay extra amount for the EMI only for initial few years. In the above example the gap between savings and the EMI almost vanishes after five years and the liquidity pressure of the EMI is gone. Within 10 years the rent also overtakes EMI. You may say that the EMI has become FREE.At the end of repayment of full loan you will be the owner of a valuable property worth about Rs 15 crore. It will come in quite handy on your retirement when there will be no pay cheques.Since you need an initial lump sum for even taking a house loan you may use the SIP route for initial period.