Tips on Financial Planning

Effective financial planning means :

Starting early
Investing regularly
Investing with a long term horizon
Keeping long term goals/requirements in mind
Obstacles to financial planning
Lack of time for diligent planning and implementation
Irregular investment patterns
Delayed start, leading to loss of investment opportunities

Typical financial needs to be provided for

Hypothetical example of a person aged 35 years who will need funds for...
Higher Education of his child after approximately 11 yrs
Equivalent of Rs. 10 lakhs required today
Marriage of his child after approximately 16 years
Equivalent of Rs. 20 lakhs required today
His Retirement after approximately 21 years
Equivalent of Rs. 30000 p.m. today for house- hold expenses and other commitments like
medical expenses for rest of his post retirement life. Required corpus Rs.1.4 crs after 21 years.

Using systematic investments to achieve your financial goals

CAGR* as on 30th June, 2006

1 Year 3 Year

Total Amount Invested at Rs. 1000 p.m.

CAGR* under Reliance Growth Fund
Systematic Investment Plan

Present
value

CAGR* under Reliance Vision Fund

Systematic Investment Plan

Present
value

Benchmark Return - BSE Index

Present
Value

Yeild

Yeild

Yeild

5 Year

Since Inception
8/10/1995

12000

36000

60000

129000

12620

73390

262911

1181956

10.21%

53.41%

63.55%

38.38%

13144

64397

225149

945665

19.07%

42.42%

56.29%

34.54%

13334

52858

140069

356954

22.33% 34.51% 35.05%

17.95%
* Compounded Annualised Growth Rate
Past Performance may or may not be sustained in the future..