Financial Planning

HDFC Equity Fund  SIP Investments Since Inception 15 year SIP 10 year SIP Total Amount Invested (Rs.) 11,35,000 9,00,000 6,00,000 Market Value as on November 29, 2013 (Rs.) 1,56,69,501.07 60,55,473.21 13,40,883.44 Returns (Annualised)*(%) 23.72% 22.68% 15.37% Market Value of SIP in Benchmark# (Rs). 43,43,412.04 27,30,778.04 9,80,754.62 Benchmark Returns (Annualised)(%)# 12.71% 13.60% 9.50% Market Value of SIP in Additional Benchmark# # (Rs).                 41,00,695.35                26,56,395.51 10,44,771.41 Additional Benchmark Returns (Annualised)(%)# # 12.20% 13.28% 10.69%

When I was a kid...I love to do cycling and going out with friends, we use to have lots of races on cycle. But at the early stage, I was afraid to paddle the bicycle....the 1st paddle was tough for me... it required a lot of courage.....and confidence. ....I started learning bicycle but I failed so many times, slipped off it, cycle punctured, small accidents, but in the end, I learn that by doing constant efforts of keeping my eye on it & balanced it quiet well. Sometimes I fell down looking here and there, what my friends are doing it, how far or near they are. But after making a small mistake I learned that focus and balance is the only thing from which I will be able to manage it well. But do you remember the 1 st day of cycling? The 1 st paddle you put your leg on? it was scary, isn't it? True? But what now? After years of practice, you can run the cycle in zig-zag ways too? Seen the same people riding a cycle on the levels of mountains now

Equity ? What is it ? Equity = Ownership = Partnership = Investment in Business To make it simple, Equity Means doing Business or Investing in a Particular Business and earning profit from it. When you start a new business, think of an idea & start implementing the same, risk is always there on the performance of business, the probability that business will prosper or not ? You invest some amount & expect some returns over a period of 5-10-15 years. Now you are a share holder / owner of business / partner in business.

What is Income Tax? It is a tax imposed by the Government of India on any body who earns income in India. This tax is levied on the strength of an Act called Income tax Act which was passed by the Parliament of India. What do you mean by income earned in India ? Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.

Dear Readers, This is going to be a really effective read, trust me. Let me share some data here. If you compare your income today (2013) and your income in (2002), You are earning well right ? Consumption ; Disposable Income - Rising Infrastructure is far - far better than 2002 ?

“Understand Equities – The Sachin Tendulkar Way” Consistency:-  As we all see in the case of Sachin (24years of consistency), practice makes perfect – so true with Equity too, (17% plus CAGR in last 30 years) Equity gives you constant returns over a period of time. Like Sachin takes 1s and 2s and hits fours and sixes whenever the right delivery bowls over, in Equity it’s also proven that one should at least stay invested over a longer period for making good inflation-adjusted returns.  Aggressive Stance:-  We have seen Sachin being aggressive at times. We have a lesson to learn here. One should invest in equity aggressively, whenever the market goes down and sentiments are very low when no one talks about equities, that is the time one should get aggressive and allocate more money to equity, you can get better returns, on the other hand when people around you get bullish on equity, everyone talks about equities, then that time is to allocate fewer amount inequities. Commi