Comparing investment and interest rates

1. PPF. Every year you can vary the investment between 500 to 70,000. Lock-in period for 15 years. Rate of Interest is 8.8%.

2. A land/plot gives 15% to 18% rate of interest over the period of 15 years. 

3. A flat will give upto maximum of 12%. (still working on this)

Our flat - Cost of per sq.ft in 2008 is Rs.2500. Cost of per sq.ft in 2012 is Rs.4200. That is 11% appreciation. We are paying bank loan for 12% which is a loss. The only gain we save our rent. We usually get a rent close to 6% annually on the cost of the flat. 

Caution: Flat is a depreciating asset. Means we cannot directly equate it with market price.

If we don't have a loan, we save the 8% appreciation + 6% interest!

4. Equity - Something between 8 to 12% standard. 

5. Gold ETF is also a good bet! We can sell it to convert it to cash.

6. Bank FD - They give 8%.

I have not included NSC!