Return Potential of various savings and investment products

Find below a table with the categorization of popular products (presently available in the market), from the perspective of their long term return potential:

4-6%	6-8%	10-16%
Shorter tenures Bank FDs & Traditional Life Insurance Policies popularly known as endowment policy, whole life policy, money back policy etc.	EPF, PPF, NSC, Post Office Monthly schemes, Longer tenure Bank FDs, RBI savings bonds, Reputed company FD etc & well Managed regular premium ULIP with equity options	Well Managed Diversified equity schemes of reputed mutual funds

Note:

1. Debt instruments carry the re-investment interest risk. Therefore while planning for 20-30 years, this should be kept in mind because no debt instrument offers guarantee for such a long period.
2. Pre-tax & present interest rate has been considered for all the instruments offering guaranteed returns. Tax payer should consider the post tax returns while taking investment decisions.
3. There are both guaranteed return products and market liked products in the above table. Return categorization of the above products has been done considering the past performances of returns and realistic future expectation of the same as per personal assessment of the author.
4. The above is author’s personal view on various savings and investment options. There is however no guarantee of their potentiality converting into reality in future due to various affecting factors.