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THE ECONOMIC TIMES MONEY

MANAGE-
MENT
FOR KIDS
P6
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 14 No. 46 | November 11-17, 2024 | 24 pages | `8

TEACH YOUR TEEN

EQUITY INVESTING
Give your children
a headstart in
wealth creation by
introducing them
to the markets. P2

CONSIDER
MARKET STOCKS WITH OUTSOURCING
JITTERS? ROBUST CARE FOR THE
KEEP CALM CREDIT ELDERLY
P7 QUALITY P10
P8
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cover story
02 The Economic Times Wealth November 11-17, 2024
GETTYIMAGES

TEACH YOUR TEEN

EQUITY INVESTING
Give your children a headstart in wealth creation by
introducing them to the markets.
By Riju Mehta who’s raring to have his own trading ac- pulled in many an unlikely investor in the risk, return and long-term growth poten-

A
count soon, even as he pursues finance past few years, pushing youngsters on the tial of investments,” he adds.
t 16, an average, undecided teen- at Narsee Monjee College of Commerce & threshold of adulthood into this ‘risky’ “Some teens are already exposed to these
ager is usually grappling with Economics, Mumbai. avenue could be seen as extreme by many. concepts through their families or friend
choices. Which college should I His father, Delhi-based Ashish, can’t Yet, experts disagree. circles, but this age is appropriate for giv-
apply to? Which phone should I stop beaming. “My father had nudged me “Early exposure to equity can demys- ing them an orientation, assuming they
buy? Akshaj Garg was dealing into stock investing when I was a teenager, tify investing and help teens see it as an have an interest,” agrees Dinesh Rohira,
with his own dilemma: which blue-chip and I have done the same for my son,” says approachable, systematic process rather CEO & Founder, 5nance.com. “The orienta-
stocks should I buy? the 47-year-old, who offered his trading than a complex, blackhole scenario,” says tion should start at 15-16 years, and from
This was in 2022. Today, he is sitting account to Akshaj so that he could start Abhijit Bhave, MD & CEO, Equirus Wealth. 17-19 years they should be exposed and
smug with a `75,000 portfolio. “Earlier, I experimenting. “While 16 years can be a good starting age trained because some of them may even
was applying fundamental analysis to pick because teens are beginning to understand want to make a career out of it,” he adds.
stocks. Now I’m learning technical analy- Is it too early to start? real-world financial concepts, at 17, they There is no dearth of interest for Japneet
sis,” says the seemingly placid 18-year-old, While the raging Indian markets have can definitely grasp basic concepts like Singh Bhalla, the 17-year-old who started

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cover story
The Economic Times Wealth November 11-17, 2024 03

Gambling
or speculating Free tips by
If you are investing in the mar- friends, ‘insiders’
Making ket for thrill, or because your If your friend has heard of this
quick money friends are doing it, or it’s the ‘hot, insider tip’, or you’ve got
latest fad, or you have informa- a tip off a WhatsApp group, Social media
Most teens can do with extra
money, given their spending
tion on a stock’s appreciation, ignore immediately. Unless you influencers
don’t do it. Any investing with- know the reason why you want
needs, and stock market is often Though YouTube is a favourite
out research and analysis to put the money in a specific
seen as a source of quick money. among teens to know about
is gambling and will stock, avoid it. Conduct your
It’s unlikely that you will make the markets, remember that a
lead to losses. own research before
money through random trading. large number of followers or
investing. subscribers does not translate
Even if you get lucky once, it
won’t last long. Market investing into investing expertise. Stick to
involves patience, research online or offline courses from

Equity traps
and hard work. recognised institutes and pro-
fessionals in the field, or read
newpapers and books.

youngsters
Day/
derivative trading should avoid Starting with
a large sum
This is the riskiest option even Here are some pitfalls that can not It’s best to start with mutual fund
for older, experienced inves- only lead to losses, but also put SIPs or ETF investing, but if you
tors. As per a Sebi study, 93% are interested in stocks and IPOs,
the teens off the stock markets. start with small sums ranging
individual traders lost money
in equity F&Os between from `10,000-50,000. Avoid
2021-22 and 2023-24. Do not penny stocks, small caps, sectoral
attempt it, at least at funds and derivatives, but if
this early stage. you want to experiment,
use a small amount.

with an IPO last year and now invests in While most steps merge or overlap with
stocks, ETFs and mutual funds—with his
parents’ account and most of their money.
Akshaj Garg one another, the purpose is to set them on
the right track through guidance and self-
Not only is he uncannily familiar with 18 years, college experimentation.
market concepts and jargon but, more
surprisingly, Bhalla is a self-starter. “My
student, Delhi Introduce basic
parents have no knowledge about the mar-
Parents
equity concepts at
kets. I got interested when my teacher told
us about an IPO last year,” says the finance Ruchi & Ashish Garg 15-16 years
student studying in Navi Mumbai. He 43 & 47 years, While curious teens will find a way to
now assiduously researches every market learn about the markets, they may not
instrument before investing in it, with a Started always tap the right avenues. This is
strong logic to back his choice. investing at where the parents can step in. “Since it’s
This is an approach Uma Shashikant 16 years (2022) not taught in schools, it’s important to
advocates fervently. “Instead of the tradi- (using father’s teach them the basics and direct them to
tional approach of starting with concepts trading account) programs that can help them understand
and basics, allow them to dip their toes the fundamentals,” says Mrin Agarwal,
themselves. Let them pick stocks and Initial Founder, Finsafe India. “However, the
funds and see how their views play out. investing sum biggest problem is that parents them-
Create a safe space for them to talk about `50,000 (own sav- selves don’t have knowledge about the
their investments without being judged or ings since childhood) markets,” she adds.
criticised. Let it be their own story of dis- If the parents are not confident, they
covery,” says the Chairperson of Centre can direct them to financial planners,
Invested in
for Investment Education and Learning. reading material and online courses. If,
Blue-chip stocks
The approach can be subjective depend- however, parents are investing in the
ing on the parents, but the consensus is markets themselves, 15-16-year-olds can
clear. It’s a good idea for parents to prod
Gains from trading be weaved into the conversations about
their teens towards equity investing, be it
`8,000 equity portfolios and investing basics.
stocks or mutual funds. It not only opens (in first 7-8 months) This is how Noida-based Aarav Jain,15,
up a seemingly arcane investing avenue, who is very keen on equity investing, has
but also prepares them for more focused in- Current portfolio started. “Since we have been investing in
vesting when they start earning, and gives `75,000 mutual funds through SIPs, we have tried
them a long horizon for wealth creation. (stocks; own money) to introduce him to the subject through
“Compounding in equities takes time, I want to start a business family discussions, talks with our finan-
and time is compounding’s best friend.
The earlier the parents teach this to their with my own money. I also Strategy
cial adviser and picking a finance-related
subject in school. Now, we are about to
teens and the earlier they start investing,
the sooner they will be able to grasp the
want to experiment at this Conducts thorough
research using funda-
start a mutual fund SIP using his pocket
money and other cash gifts in his name,”
markets and create tremendous wealth in
the future,” says Rushabh Desai, Founder,
stage so that when I start mental analysis. Now says his mother, Sonia. Rohira endorses
this: “If parents are involved in investing,
learning technical
Rupee with Rushabh Investment Services. earning, I can invest to get analysis and plans to they should share their life experiences
To give the keen teens a headstart, ET apply it soon. and also introduce them to investing theo-
Wealth has decided to provide a rudimen- high returns. —Akshaj Garg ries and instruments.”
tary, five-step roadmap to their parents Parents can start by explaining basic
on this Children’s Day (14 November). terms like equity, stocks, mutual funds,

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cover story
04 The Economic Times Wealth November 11-17, 2024

risk and return, bear and bull markets, Japneet Singh their chances of earning high returns.
volatility, as well as concepts like diver- Bhalla, 17 years, “They should understand that it’s hard-
sification, compounding, goal-setting, earned money and requires work. It’s not a
and long-term investing. “Reinforce college student, Delhi gamble,” says Rohira.
how through compounding, reinvested  Wrong source of advice: Another big
earnings lead to exponential growth over Started investing at gaffe is looking for ‘hot tips’ from friends,
the long term, a core advantage of early 16 years (2023) ‘insiders’, unverified sources, WhatsApp
investing. Explain how higher potential (using parents’ groups, or social media influencers. “The
returns come with higher risk. Teens trading accounts) kids hear about equity investing from all
should understand this trade-off and types of sources and feel it’s very easy to
know that not every investment return is Initial investing make money from the markets. Social me-
guaranteed,” says Bhave. sum dia influencers are the biggest risk,” says
`15,000 Agarwal. This may also be the surest way
Tell them about (parents’ money) to fall victim to scams and lose all the mon-
ey. Bhalla, however, is very cautious. “I al-
risks & traps Invested in ways research the instruments I invest in
Even before the child starts to research Tata Technologies IPO and know the reason why I’m investing in
and explore in greater depth, explain it. Even for the Tata Technologies IPO last
to him the pitfalls of a flawed attitude Gains year, I had analysed the company before
towards equity investing, the dangers of 140% going for it,” he says.
wrong advice, of getting emotional about  Market risks & hype: The teens need
(listing premium)
investing, and other market-related risks. to be told that the markets are risky and
 Quick-rich plans: Dissuade the child they can lose all their capital, especially if
Current portfolio
from equity investing if all he wants is they follow the herd or fads. They should
quick money. “A lot of youngsters want to
`86,000 (stocks, be informed about the higher risk involved
ETFs, mutual funds;
make money fast and not listen to their in small caps and penny stocks, sectoral
parents,” says Agarwal. This is why they
pocket money and themes, futures & options trading, and
want to indulge in day trading or deriva- parents’ money) stocks with low volumes. “Discourage in-
tive trading. Bhalla may be an exception. vestments based purely on trends without
“I don’t want to take the risk of options Strategy proper research, reinforcing that sound
trading even though I’m learning it, and Conducts due diligence investing requires diligence. Also explain
want to invest for the long term. I’m in- Since I want money for and research before in- that short-term price changes are routine
vesting in the ETFs because I want money vesting in both stocks and don’t always reflect fundamental is-
in two years for my studies and this is a my higher studies in the and mutual funds. Is sues. They should avoid getting emotional
safe option,” he says.
It’s important that the teens be ex-
next 1-2 years, I’m investing learning options trad-
ing and plans to take
about daily fluctuations,” says Bhave.

plained the basics of how markets work.

The stock market is no magic box, where
in the ETFs as these are a NSE’s NCFM courses Evolved research
next year.
tips and trades yield gargantuan sums in safe option. & mock portfolios
a jiffy. On the contrary, the longer they A teenager between 17 and 19 years should
stay invested in the market, the better move from basics to a deeper analysis and

All about demat & trading accounts for minors

Can a demat account be What happens when
Q opened for a minor? Q the minor turns 18?
Since there is no age restriction for having a demat The existing account can be converted into a
account, it can be opened in a minor’s name by his regular account when the child turns 18, but a
parent or legal guardian. Technically, the account is new account opening form has to be submitted
in the minor’s name, but it is managed and operated along with the required documents.
by the parent or guardian. Also, the minor can’t be a
joint holder along with his parent or guardian.
What is the tax
Can a trading account Q liability for a minor’s
Q be opened for a minor?
demat/ trading account?
If a minor’s account earns income by way of
Minors cannot directly trade or open a trad- capital gains, it will be clubbed with the income of
ing account, but a parent or legal guardian the parent who earns more under Section 64 (1A),
can open it on behalf of the minor. It’s also and will be taxed at his slab rate. The parent can
known as a custodial account. claim an exemption of up to `1,500 per child on
the clubbed income under the old tax regime.

What kind of trading is

Q Where can the accounts
allowed in such accounts? Q be opened?
Since a minor cannot enter into a contract with a
stockbroker to buy or sell securities, or conduct fi- The accounts can be opened with a depository
nancial transactions, the account can be opened only participant (DP) or stockbroker who is regis-
for selling securities possessed by the minor through tered with the Central Depository Services Lim-
an investment in an IPO, inheritance, corporate ac- ited (CDSL) or the National Securities Depository
tion, or market transfers. Only equity can be bought Limited (NSDL). Most brokers and online broking
or sold through this account, and no intra-day trad- platforms offer a comprehensive demat-cum-
ing, currency or derivative trading is allowed. trading account for minors.

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cover story
The Economic Times Wealth November 11-17, 2024 05

evaluation of the markets and companies.

Unless the parents have sufficient knowl-
edge or depth of experience from years of
successful personal investing, it’s best to
How to learn about the markets
direct them to other avenues of research.
These can include online and offline
Instead of just scrolling through YouTube videos, opt for certifications, online courses and virtual
courses from recognised institutions and trading platforms from recognised institutes to enhance your equity knowledge.
platforms like NISM, NCFM, BSE Institute,
etc.; books and newspapers; workshops and
webinars from professionals and industry COURSES AND CERTIFICATIONS
experts like Rachana Ranade and Ankur
Warikoo; and virtual or paper trading
While there are several good players, including eLearnmar-
platforms (see box). There is a wide range kets, Rachana Ranade, Fingrad, Coursera, that are offering
of courses available in terms of duration courses on markets, here are some that teens can try.
and complexity, starting at beginner or
basic levels and moving on to intermediate
and advanced levels. “I learnt the basics of NSE Academy Certi- BSE Institute
investing and markets from YouTube, then fication in Financial A subsidiary of BSE, it not only
took an online course by Trading Ideas, and
am planning a five-course certification pro-
Markets (NCFM) offers full-fledged paid 3-year
graduate and 1-2-year post-
gram from NCFM next year,” says Bhalla. The Academy offers graduate courses after class National Institute of Udemy
Akshaj, meanwhile, learnt market funda- various paid programs and 12 and graduation, but also Securities Markets (NISM) The online learning plat-
certifications via online form not only offers free
mentals from Edutri India’s free coaching short-term skill certifications An initiative of market regulator,
exams with beginner, basic, courses running into a
sessions after joining a WhatsApp equity and e-learning programs rang- Sebi, it offers a range of short- and
intermediate and advanced few hours, but also paid
investing community recommended by one ing from a few days to weeks. long-term, online and offline courses
level modules. While there ones starting at as low as
of his tutors. “I’m now learning technical These are available at begin- and certifications at basic, interme-
is a provision for short- `449. You can pick from
analysis as part of a college project and am ner, basic, intermediate and diate and advanced levels in various
term online certifications courses on stock trad-
analysing balance sheets,” says the teen advanced levels on subjects aspects of securities markets.
and courses, you can also ing, investing, finance,
who wants to focus as much on learning as ranging from stock markets Students and beginners can not only
register yourself, pay, get accounting, financial
acutal investment. and mutual funds to deriva- go through basic information on
study material and appear modelling and analysis,
“The teens need to know the basics of tives and financial analysis, site, but also take short-term online
for offline tests. among many more.
under MicroX and ProfX. courses for a fee.
economics and economies, company fun- Website: https://www.
damentals like revenue, profit, and key Website: https://www.bsebti. Website: https://www.nism.ac.in/ Website: https://www.
nseacademy.com/ udemy.com/
com/
products or services that generate earnings,
key sectors, track performance of stocks,
and understand how economic policies and
global trends impact the markets,” says VIRTUAL/PAPER TRADING PLATFORMS
Bhave, who also recommends books like
Rich Dad Poor Dad by Robert Kiyosaki, and For beginners, such platforms help trade without using real money. As of May this year, Sebi
The Psychology of Money and Same As Ever has prohibited the use of real-time market data, so several options are no longer available.
by Morgan Housel.
“The most important thing is that the
child should know why he is doing what he Neostox Stock Trainer Investopedia Simulator
is doing, and not trading blindly without A simple, user-friendly plat- This app can help you trade virtu- You can sign in for free. It is a
any knowledge,” says Rohira. “If he doesn’t form for virtual trading, it ally with world stock market data. very simple and easy-to-use
know why he is investing, he will not know helps you analyse the mar- It includes stocks from India, US simulator that can help you
whether he will get the desired returns. If ket and gain trading insights. and over 15 other countries, and understand the basics of
he doesn’t get good returns, at least he will You just need to register, get you can track your performance trading and investing.
know why,” he adds. Shashikant agrees. a log in, pick your securities with statistics and charts. Website: https://www.investope-
“Teens should be encouraged to form an in- and start trading. Download app from Google Play dia.com/simulator/
vestment thesis about why they are buying Website: https://neostox.com/ Store
a stock. If they pick up the basics of balance
sheet analysis, it will help understand how
a business is using capital and whether it is can’t have a trading account, but his parent free hand to the teenager, the parents need dence, while the rise and fall in stocks
profitable. If they know that selecting stocks or guardian can open it on his behalf. If the to monitor and preferably have certain can shake their confidence, says
and allocating capital is not a gamble and child wants to start trading before 18, par- guidelines in place. “It should be a guided Rohira. However, if they want to start
that diversification is actually a strategy, it ents can also open their own accounts and investment to start with, at least for a few with stocks, allow them to do so, even
will help,” she says. create portfolios for the children. months, with defined minimum and maxi- if they make mistakes.
After theoretical knowledge, they can The child should also be well-versed in mum investment, average time frame of An important part of this exercise
start paper trading, where simulators help the operation of these accounts, KYC pro- investment, average return expectations, is periodic reviews and handholding.
them trade with virtual money. “They can cesses, and banking operations. To open etc.,” says Rohira. You can schedule a review every fort-
go for virtual trading apps and platforms these accounts, the parents need to find a The amount to be given to the child can night or month and talk about his de-
like Neostox or Stock Trainer and gain some stockbroker registered with CDSL or NSDL. vary for parents, but it should ideally be cisions and the reasons for the same.
confidence. Besides, professional academies Most brokerages offer comprehensive 2-in-1 less than `50,000 and can be given as a “If you do it for a year, it will go a long
give test cases to explore. If nothing else, or 3-in-1 accounts that combine bank, demat lump sum or in instalments, if the child way in helping the child understand
parents can build a trading chart for them and trading accounts. The account opening wants to invest in mutual funds via SIPs. the nuances of investing, especially
and once they understand the nuances, they requires filling up a form with child’s de- Bhave feels the initial investment should after the theory and dummy trading,
can start tracking the companies and do tails, submitting documents including the be `10,000-25,000 as “this keeps the risk of says Rohira.
dummy trading,” says Rohira. child’s birth certificate, PAN and Aadhaar loss low and also teaches real-life lessons to “Lastly, enable conversations about
for both the child and parent, and bank ac- the child”. their decisions. Listen without inter-
count details of the parent. KYC for both par- “Allocate an amount you won’t regret ruption or judgement. Encourage dis-
Open demat & ent and child will also have to be done. losing. Tell them that this is the capital cussion, allowing them to lead,” says
trading accounts they have for investing in stocks and funds. Shashikant.
Give them a free They have to make decisions with just
When the child is ready to start trading, he this money, but you can allocate capital in
will need demat and trading accounts (see hand, but monitor tranches, if you so wish,” says Shashikant.
Please send your feedback to
box). If he is below 18 years, he can have a Once the accounts are opened, the child can Ideally, the child can start with mutual [email protected]
demat account, but cannot operate it. He start trading. While it is important to give a funds because these can help build confi-

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financial planning
06 The Economic Times Wealth November 11-17, 2024

Money management for kids

Young adults will not make investing mistakes if parents teach them how to handle finances at an early age.
by Anup Seth discipline, but also gives them a glimpse of

T
financial management.
oday’s children are sharp,
tech-savvy and quick to absorb Manage spending & saving
information. They can distin- Teaching children to manage spending and
guish between needs and wants, saving involves helping them distinguish
and develop a sense for lifestyle between needs and wants. Teach them
early on, whether through gaming, sports, about essential expenses like food and
academics, or other activities. However, school supplies, as against non-essential
money management is often overlooked. items like toys or snacks. For example, if
Without real-world experience in man- they have `1,000 and two choices—buy-
aging money, one may make financial mis- ing a game they want versus shoes for
takes till late adulthood. As a parent, I’ve school—guide them to evaluate the criti-
made it a priority to teach my kids money cal purchase out of the two. Discuss the
management and involve them in financial consequences of overspending, such as not
planning from an early age. Now, as they having enough money for other important
embark on their own journeys, they are purchases. Real-world experiences can GETTYIMAGES
equipped with the right fundamentals to help them understand the balance that
make informed decisions. From one parent they need to keep between saving and
to another, here are some simple tips to help spending.
make your kids financially smart:
Aim for financial goals
Save regularly Setting financial goals is crucial. Whether `500 in an SIP. To further motivate them, crucial protection and peace of mind dur-
Teaching your kids the value of saving can it’s saving for a new toy or a gadget, goal- you can match their investment by adding ing times of crisis. You could give them
set them on the path of financial respon- setting enables kids to stay motivated. an equal amount. In this manner, they will examples that they can relate to, like their
sibility. I advocate the three-jar approach Teach them how to set specific, measur- see first hand how their money grows and favourite bicycle getting stolen or dam-
to help kids learn to save and grow money. able, achievable, and time-bound goals. learn the value of investing early. aged, and how they would want to replace
For example, if your child gets a weekly This will instill a sense of purpose and ac- or repair it. Insurance works similarly
allowance of `100, it can be divided into complishment as they work towards their Risks & insurance for bigger risks. By communicating with
three jars: spending, saving, and growing goals. For example, if they want a `2,400 It is important to prepare for the unex- your children about money matters, you
money. Encourage them to put `20 (20% tablet, encourage them to save `200 each pected and unpredictable events in life. can help them develop healthy financial
of their allowance) into the savings jar, month. This way, they’ll reach their goal Have the difficult conversation with your habits.
and another `20 into the growing jar each in 12 months. children about adverse possibilities like
week. For every month that they keep the property damage, theft, or other economic
saving and growing jar untouched, you Habit of investing challenges like job loss.
pay them `6 interest and `8 return. By the Help children start with simple invest- Explain the role of insurance as a safety
THE AUTHOR IS CHIEF
end of the year, you can explain to them ments like savings accounts or systematic net that provides protection against finan-
DISTRIBUTION OFFICER,
how they have consistently saved and mul- investment plans (SIPs). For example, cial losses and how it forms a fundamental EDELWEISS LIFE
tiplied their money. This not only instills encourage them to start small and invest part of financial planning, providing INSURANCE

product launches Sebi mulls easing MF investing rule

T
partnership with Small Finance Banks
:: Mutual Funds (SFBs). This product aims to simplify
o address concerns about
the ‘skin in the game’ rule
the current rule, the same
percentage of investment is
Axis Mutual Fund has launched the savings by allowing users to start
for designated employees requirement for all designated
Axis CRISIL-IBX AAA Bond Financial investing with as little as `1,000,
of mutual funds, Sebi has pro- employees.
Services-Sep 2027 Index Fund that without the need to open a new bank
posed reducing the mandatory The regulator has suggested
will replicate the performance of the account. Premature withdrawals are
investment percentage, applying excluding non-cash components
CRISIL-IBX AAA Financial Services permitted, subject to interest rate
adjustments. it based on salary brackets, and like ESOPs from the mini-
Index Sep 2027. The minimum invest-
ment is `5,000. The NFO will be open
excluding non-cash components mum investment calculation
like ESOPs from the minimum to address challenges such as
till 21 November. Insurance investment calculation. The delayed compensation and high
TATA AIG has introduced five new rid-
Franklin Templeton Mutual Fund has proposals are aimed at easing below `25 lakh would have no debt burden for employees with
ers: Mental Wellbeing, EmpowerHer,
launched the Franklin India Arbitrage compliance, particularly for em- mandatory investment require- stock options. An industry
OPD Care, CanCare, and Flexi Shield.
Fund. It will invest in arbitrage op- These address critical healthcare ployees with lower CTCs. ment, while those with a CTC of analysis showed that, on an
portunities in the cash and derivative needs, with a focus on women’s health, At present, AMC employees, `25-50 lakh would invest 10%, average, AMCs pay around 7%
segments of the equity markets and mental health and cancer care. such as the CEO, CIO, and fund those between `50 lakh and `1 of total compensation as non-
arbitrage opportunities available managers, are required to in- crore would invest 14%, and cash benefits. Only six out of
those with a CTC of above `1
within the derivative segment, and
invest the balance in debt and money
Banking vest 20% of their annual salary
crore would invest 18%, Sebi
47 AMCs have paid more than
20% in non-cash compensa-
SBI Card has launched the co-branded
and perks in the mutual funds
market instruments. The minimum they manage. This amount is suggested. tion over the past three years.
KrisFlyer SBI Card in partnership
investment is `5,000. The NFO will locked in for three years. Further, the regulator has Additionally, Sebi has proposed
with Singapore Airlines, targeting
be open till 18 November. In its consultation paper, Sebi proposed lowering the manda- allowing early release of units
super-premium cardholders. The two
variants are: KrisFlyer SBI Card and has proposed that the “mini- tory investment requirements upon resignation of employees,
Investing KrisFlyer SBI Card Apex. The joining mum mandatory investment for non-investment staff, such subject to restrictions.
Mobikwik has introduced fixed and annual renewal fee before taxes amount may be reduced from as COOs and sales heads, and Under the current rule, units
deposits offering up to 9.5% annual is `2,999 for the KrisFlyer SBI Card 20% and made applicable slab- allowing flexibility based on are locked even if employees
returns through its mobile app, in and `9,999 for the Apex variant. wise, based on the CTC of the each employee’s role and activ- leave before retirement age.
employees”. Employees earning ity within the AMC. Under — PTI

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guest column
The Economic Times Wealth November 11-17, 2024 07

Market jitters? Keep calm

A guide to remaining stable during the market turbulence, says Dhirendra Kumar.

I
think I’ll wear my therapist hat today.
Are you worried about what appears
to be a stock market crash? Let me put
your mind at ease—there isn’t one. Look
at any meaningful time frame, say, two
years, three years, or longer, and you’ll see
equities delivering healthy returns. The cur-

GETTYIMAGES
rent situation is merely a pause, which might
extend longer than usual, but there’s nothing
extraordinary about it.
When did you last encounter genuinely new
investment wisdom? I’ve spent nearly three
DHIRENDR A KUMAR decades writing about investments and per-
CEO, VALUE RESE ARCH sonal finance and, sometimes, years pass by
without anything fundamentally new to say.

money
Sure, we get novel ideas to discuss—some good,
some bad, some outright absurd—but the core

mysteries principles remain unchanged. Take emu farm-

ing or cryptocurrencies. They emerged as new If you get these two aspects right—time and many investors start questioning their
phenomena, but simply reinforced an old prin- horizon and quality with diversification— strategy. However, try to think if abandon-
ciple—avoid investments that generate no real then every market downturn in history has ing your investment plan during a market
economic value. essentially been a buying opportunity. This turbulence has ever been the right choice?
There are certain fundamental investment one is no different. Think back to early 2020. History suggests the opposite. Those who
The only real truths worth revisiting when the markets The Sensex dropped from 41,000 to below stick to their well thought-out investment
challenge with buying look unstable. These are not new insights, but 30,000, before rising to 47,000 by year-end. strategy, maintaining regular investments
during downturns rather important reinforcements of what we It’s easy to say now, ‘Who had the nerve to through SIPs or systematic buying, typi-
is that investors already know. The most crucial factor is your buy then?’ But remember that every single cally emerge stronger from these periods.
often try too hard to investment timeline. Study any historical peri- trade during those months had both a seller So the next time you feel anxious about
od or market you choose, and you’ll notice that and a buyer. The buyers were the market’s market headlines or hear predictions of im-
optimise their entry
while declines are temporary, the market’s shrewdest players, turning panic into pending disasters, remind yourself about
points. One shouldn’t upward trajectory is permanent. Recovery profit. As the saying goes, buy when there’s these basic truths. You don’t need complex
try to fixate on picking typically takes a year or two, sometimes just blood in the streets. strategies or revolutionary new investment
the exact bottom. In months. Bear markets only become problem- The only real challenge with buying dur- theories. What you need is the tempera-
2020, smart investors atic when you’re forced to withdraw money at ing downturns is that investors often try ment to stay the course and the wisdom to
bought throughout a specific time and value, but that’s not how too hard to optimise their entry points. One see market declines for what they are—
March, April, May, equity investing is meant to work. shouldn’t try to fixate on picking the exact temporary setbacks in a journey that has
Some might point out what seems like an ob- bottom. In 2020, smart investors bought consistently rewarded patient, disciplined
and even into June
vious flaw in this thinking: what about stocks throughout March, April, May, and even investors. You already knew this, but some-
and July. Perfect that never recover? Consider the infrastruc- into June and July. Perfect timing only ex- times we need a gentle reminder.
timing only exists in ture stocks after the 2008-10 crash. However, ists in hindsight; any entry point is good How do you feel about this non-crash
hindsight; any entry the answer is straightforward. It comes down enough in the real world. now? As I said earlier, you already knew
point is good enough to quality and diversification. Individual What’s truly remarkable is how these this. Sometimes, we just need a reminder.
in the real world. stocks can fail permanently, but a careful in- market cycles tend to repeat themselves.
vestor either avoids such risks or limits their Yet, we often forget the lessons they teach
exposure so that no single failure can cause us. Every time the markets decline, the Please send your feedback to
[email protected]
serious damage. media narrative shifts to predicting doom

Upload
‘Indianse-invoice in 30 with
most satisfied days hybrid
for tax work’
credit
The Goods and Services Tax “From 1 April 2025, taxpay- taxpayers. limit,” said GSTN.
Network (GSTN) has intro- ers with an AATO of `10 crore GSTN, in it’s advisory, stated According to the experts, fail-
duced a new rule disallowing and above would not be allowed that the GST portal will auto- ure to upload e-invoices within
uploading of e-invoices older to report (upload) e-invoices matically reject the e-invoice 30 days on the IRP portal may
than 30 days on the invoice older than 30 days from the date if it is being uploaded after 30 have severe consequences.
registration portal (IRP) from 1 of reporting on IRP portals. days from the date of generation “The invoice will not be
April 2025, for a large category This restriction would apply to of the invoice. considered valid, preventing
of GST taxpayers. all document types (invoices/ “If an invoice is dated 1 April the recipient from claiming
Under the GST law, busi- credit notes/debit notes) for 2025, it cannot be reported after input tax credit. This can also
nesses (suppliers/sellers) with which an IRN is to be gener- 30 April 2025. The validation disrupt business operations
a specified annual aggregate ated,” stated the GSTN in an built into the invoice registra- as recipients and transporters
turnover (AATO) need to gener- advisory. tion portals (IRP) would disal- may refuse goods without a
ate an electronic invoice (e-in- Currently, this rule applies low the user from reporting valid e-invoice. Additionally,
voice) and upload it on the IRP only to GST taxpayers with an (uploading) the e-invoice after noncompliance can lead to
portal, which enables the buyer AATO of `100 crore and above. the 30-day window. Hence, it penalties and increased scru-
to claim input tax credit. Once However, from 1 April next is essential for taxpayers to tiny from tax authorities,” says
uploaded, an invoice reference year, it will apply to those with ensure that they report the Divya Bhushan, Tax Partner,
number (IRN) and QR code are an AATO of `10 crore and above, e-invoice within the 30-day win- EY India.
generated. that is, a much larger number of dow provided by the new time —Neelanjit Das

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stocks
08 The Economic Times Wealth November 11-17, 2024

Consider stocks with

robust credit quality
Companies with strong financial health can prove effective during phases of market instability.

by Sameer Bhardwaj earnings and premium valuations. To man-

I
age risks, investors should focus on compa-
ndian markets plunged into a nies with strong fundamentals, assessable
freefall in October 2024, with through credit quality or financial sound-
the benchmark Nifty 50 index ness. We used a Reuters-Refinitiv model to
losing 1,605 points, the highest identify these companies. The model, called
monthly fall since March 2020 SmartRatios Credit Risk, assesses a com-
in absolute terms. While most mar- pany’s financial health and credit quality
ket benchmarks across Asia, the US, using key accounting ratios in profitability,
Europe, and South America delivered liquidity, leverage, solvency, and growth.
negative returns in October (Japan, It combines historical data with analyst
Hong Kong, and Canada registered estimates, weighting sector-relevant ratios
gains), the Nifty 50 index underper- more heavily. The model generates a score
formed global markets by registering from 1 to 100, with higher scores indicat-
an over 6% month-on-month decline. ing stronger credit and financial profiles.
Relentless FPI selling, driven by at- According to Reuters-Refinitiv, the model
tractive Chinese markets and high do- “is an intuitive and robust default prediction
mestic valuations, contributed to the model that provides a view of a firm’s credit
market correction. FPIs sold a record condition and financial health by analysing
`94,017 crore in net equities in October, a wide array of accounting ratios that are
according to NSDL data, while domes- predictive of credit risk.”
GETTY IMAGES

tic mutual funds bought ` 90,770 crore. Reuters-Refinitiv claims that the model
According to the interim earnings outperforms traditional accounting-based
review report by Motilal Oswal, the credit models, such as the Altman Z-score
earnings growth of 166 companies and provides incremental value in an equity
(within the brokerage’s coverage uni- investment strategy. For companies with a
verse that has declared results as of 31 the weakest since 2019-20,” adds the Motilal recovery seems to be taking a longer-than- market cap over `100 crore, the credit risk
October) declined by 8% year-on-year, Oswal report. expected time. An India strategy report by model is calculated by Reuters-Refinitiv for
the lowest in 17 quarters. The aggre- Looking at valuations in terms of TTM InCred Equities (released in the third week 2,906 companies. To include high-rank (or
gate performance was hit by a sharp (trailing twelve months) PE, while the recent of October) lists a declining trend in the with robust financial strength) companies,
drag from global commodities. correction has made valuations of the Nifty government’s capital expenditures, easing we considered only those with a score of
On the other hand, 34 companies in 50 index at par with its one-year average, credit growth, sluggish growth in e-way more than 90. BFSI companies are excluded
the Nifty 50 index reported a flat year- the Nifty Midcap 100 and Nifty Smallcap 100 bill generation and a drop in toll revenue (in from the analysis. As the score is based on a
on-year growth in earnings. The per- indices continue to trade at a significant pre- September 2024) as indicators of a prolonged proprietary algorithm, it is not freely avail-
formance has led to a downgrade in the mium. The valuation premium of the Nifty slowdown in economic activity. able. The objective of this article is to use the
Nifty 50 EPS estimates. “Consumption Midcap 100 and Nifty Smallcap 100 indices The report cites rising consumer infla- model’s output to identify fundamentally
remains weak, and parts of BFSI face stood at 24.9% and 22.3% respectively com- tion, weak September earnings, and the high strong stocks.
asset-quality stress. Overall Nifty EPS pared to their last one-year average. The data growth needed in the second half of 2024-25 The following are five such stocks that are
has seen 7% downward revision in the is sourced from Trendlyne. to meet the 7% GDP target as short-term covered by a decent number of analysts and
last six months, reducing the expected Experts believe that the election-led market concerns.Analysts believe that FPI are currently offering a double-digit share
2024-25 earnings growth to just 5%, slowdown has extended, and economic selling will continue amid weak corporate price potential.

STYLAM INDUSTRIES
12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS Stylam
forward PE price (`) price (`) POTENTIAL BUY HOLD SELL Industries

25.41 2,357 2,821 19.7% 4 2 0 135.00

THE LAMINATES MANUFACTURER products to improve margins and quarter) to produce large sheets that
reported a strong performance in plans to ramp up sales in the US have a strong potential in devel-
100
the September quarter with 12% and market. Also, a gradual recovery in oped countries. The management is
15% year-on-year growth in revenue demand in Europe will bode well for confident of gaining market share
and EBITDA respectively. While the the company. Moreover, strong real in exports aided by strong client
recovery in exports and improve- estate sales in the last few years relationships, prompt service and ex- Nifty 500
ment in realisations supported will support the domestic laminate pansion into new geographies. 132.17
revenue, a better product mix aided demand from 2025-26 onwards. An HDFC Securities report is bull-
EBITDA. The laminate exports saw The company is increasing its ish on the company because of its
a robust 25% year-on-year revenue laminate capacity to cater to the industry-leading growth and EBITDA
growth; however, the domestic rev- export demand, and it is in the margins, healthy balance sheet and
enue fell 11% amid weak demand. process of setting up a new laminate impressive return ratios. It estimates
The management is aiming to sheet manufacturing plant (likely to 26% and 32% revenue and earnings
increase the share of value added be commissioned in the March 2025 CAGR during 2024-25 and 2026-27. 6 Nov 2023 5 Nov 2024

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stocks
The Economic Times Wealth November 11-17, 2024 09

ENGINEERS INDIA FINOLEX CABLES ANALYSTS’ RECOMMENDATIONS

12-month Current 1-year target UPSIDE 12-month Current 1-year target UPSIDE
POTENTIAL POTENTIAL BUY HOLD SELL
forward PE price (`) price (`) forward PE price (`) price (`)
21.7 192 235 22.6% 23.92 1,207 1,581 30.9% 5 1 0

Finolex Cables
ANALYSTS’ RECOMMENDATIONS THE MANUFACTURER OF electrical and telecommuni- 133.43
BUY HOLD SELL cation cables is expected to report revenue and PAT
4 0 1 growth of 12.6% and 20.8% respectively in the Sep-
tember quarter, according to the consensus estimates 100
THE ENGINEERING CONSUL- has maintained 20-25% of analysts compiled by Reuters-Refinitiv. The per-
TANCY and EPC company margins for the segment. formance will be supported by healthy B2B demand
reported a weak perfor- The company is also focus- aided by the infrastructure sector and strong exports.
The cables sector benefits from demand driven by Nifty 500
mance in the September ing on international markets
quarter with a 13% year-on- and continues to exploit infrastructure, construction, power T&D, digitalization 132.17
year decline in the consoli- opportunities in the Middle initiatives, and the Bharat Net project. India’s renewa-
dated revenue growth. The East, Nigeria, Algeria, and bles push will further boost wires & cables demand.
performance was impacted Guyana. To meet this, the company plans a`500 crore capex,
by the muted performance The company saw strong including an E-Beam facility for EV cables.
of the turnkey segment. order inflows of `2,760 It is also expanding fibre cable capacity and enter-
However, the turnkey seg- crore during the quarter ing solar, railways, automotive, and instrumentation
6 Nov 2023 5 Nov 2024
ment is expected to perform which grew at 141% year- sectors.
better in the second half of on-year. It has a healthy Moreover, the FMEG segment (electrical switches, ratios, growth in the FMEG business and expectations
the current financial year led order book of `1,1150 crore, LED lamps, fans, low-voltage MCBs and water heaters) of EBITDA margin improvement in the near term as the
by the uptick in the execu- which provides strong rev- will be supported by new launches. Recent reports key positives.
tion of ongoing projects and enue visibility. from Asian Markets Securities and Systematix are On the other hand, the latter sees strong revenue
new projects secured in the A recent Antique Broking constructive on the company. The former lists a strong potential from the E-beam plant and Bharat net op-
first half of 2024-25. The report is bullish on the com- distribution network, likely improvement in return portunity as the key catalysts.
management has maintained pany due to its attractive
margins of 5-7% for the valuation (after the recent
turnkey segment. correction). It says that the HINDUSTAN AERONAUTICS
On the other hand, the business performance is ex- UPSIDE
12-month Current 1-year target ANALYSTS’ RECOMMENDATIONS
consultancy segment will be pected to improve with the POTENTIAL
forward PE price (`) price (`)
17.4%
supported by projects in the pickup in ordering activity BUY HOLD SELL
petrochemical, upstream, and finalisation of multiple 30.85 4,262 5,002 8 1 2
biofuels and infrastructure turnkey and consultancy
sectors and the management projects in the near term. THE AEROSPACE AND defence company is expected
to report revenue and PAT growth of 11.8% and 13.6%
year-on-year respectively in the September quarter,
according to the consensus estimates of analysts com-
Engineers piled by Reuters-Refinitiv. It has a robust order book
India
of `94,000 crore (at the end of 2023-24) and a strong Hindustan Aeronautics
149.62 order pipeline provides a strong revenue visibility.
100
220.28
The company’s 2024-25 revenue will be impacted
due to execution challenges amid supply chain issues
100 (which led to the delay of a large order for 83 Tejas
Nifty 500
MK I A aircraft). However, clearance for the procure-
ment of `26,000 order for 240 aero engines of SU-30 132.17
MKI aircraft by the Cabinet Committee on Security will
Nifty 500
boost the overall performance. Moreover, the company
132.17 is a beneficiary of the defence proposals announced by
6 Nov 2023 5 Nov 2024

the government as such proposals are to be sourced engines. The company is also working on a JV with
from the domestic industry (indigenously designed, Safran to produce turboshaft engines for helicopters.
developed, and manufactured). A report from Antique Stock Broking (released in the
It is also aiming to indigenise engine technology first week of September 2024) lists the multi-year
6 Nov 2023 5 Nov 2024 through the MoU route. It has entered a MoU with GE double-digit earnings growth potential and robust
and will receive a transfer of technology for fighter jet return ratio profile as the key positives.

INFOSYS
ANALYSTS’ RECOMMENDATIONS
12-month Current 1-year target UPSIDE
POTENTIAL BUY HOLD SELL
forward PE price (`) price (`) Nifty 500
25.53 1,754 2,029 15.6% 26 10 5
132.17

THE GLOBAL CONSULTING and IT and a rise in discretionary spending will be impacted by wage hikes and 100
services company reported good in capital markets. The traction in furloughs. However, productivity
numbers in the September quar- discretionary spending was visible gains and pyramid optimisation due Infosys
ter with 3.1% quarter-on-quarter in the manufacturing and energy to project Maximus will provide sup- 125.70
revenue growth in constant currency sectors whereas the retail and com- port. A recent Motilal Oswal report is
terms. The performance was sup- munication sectors remain subdued. bullish on the company and expects
ported by a broad-based growth The small deals saw a double- that it will be a key beneficiary of
across verticals (technology, manu- digit growth that led to an upgrade the acceleration in IT spending in
facturing, life sciences and energy) in the revenue growth guidance the medium-term. The report sees
and markets (North America, Europe, in constant currency for 2024-25. the margin guidance of 20-22% as
India and the Rest of World). The US The management has revised the encouraging and estimates revenue
BFSI vertical improved meaningfully, guidance from 3% to 4% to 3.75% to and PAT growth of 8.1% and 10.4% 6 Nov 2023 5 Nov 2024
driven by cost optimisation projects 4.5%. The second half of 2024-25 in the second half of 2024-25. Current price as on 5 November 2024. Nifty 50 12M forward PE: 21.35. Source: Reuters Refinitiv.

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financial planning
10 The Economic Times Wealth November 11-17, 2024

Outsourcing care for the elderly

Despite being burdened by caregiving for our parents, we reject the elderly care facilities because we have
been conditioned into believing that it is not good to put a price on acts of nurturing, says Uma Shashikant.
to view moving into a retirement home as
abandonment. They worry about what oth-
ers will say and how their children will be
judged. We place a premium on what the
elders’ preferences are, and give in to unre-
alistic assertions rooted in denial. Everyone
in their 60s knows first hand, or from
friends, stories of our parents wanting to
live in a house they have occupied for years,
among friends they have known so long, un-
willing to move into elderly care facilities,
or where feasible, to their children’s home
with outsourced caregivers. The burden
this places on their well-meaning children
is usually discounted.
The elderly are treated with respect and
deference in our society. Even if their de-
mands are unreasonable, we heed. They are
not amenable like little children, who would
willingly walk into daycare, or husbands

GETTY IMAGES
who would eat a meal prepared by a cook.
Both sons and daughters, and their spouses,
take on a mandate they can’t shrug off.
Between feelings of genuine love and grati-

I
tude for parents, and the cold refusal to take
met her at the retirement home. She in the household. They cook, clean, and care responsibility, we have many shades of grey.
and her husband had quit their jobs for the children and the elderly. When a mar- Money, as always, is the villain of the
in Singapore and moved in with her ketplace for work opened up to include women, piece. We dislike markets taking over our
80-year-old mother, who was afraid of we discounted these caregiving services even lives. We don’t want to put a price on and
living alone after her husband passed more. Women who stayed at home to nurture outsource what we know are acts of love and
away. They were scared after her father’s the family were seen as less accomplished nurturing. We see ourselves diminished as
unexpected demise following a brief illness, than those who went to work, for caregiving a society when we reduce these to services
before the children could arrive. We, a group services did not earn an income. Women had with a price tag. We continue to hope that the
of cousins spending a weekend there, were di- to make a choice between work and home, and goodness in us will flow enough to remain
vided in our approval of this selfless act. were judged whichever way they chose. selfless for the other. Or we see ourselves as
UMA SHASHIK ANT Caregiving is not easy. We can argue about At the same time, the struggle to balance driven by duty and dharma to do what has to
IS CHAIRPER SON, why it is important. We must be grateful to our work outside home and caregiving respon- be done, without protest.
CENTRE FOR INVES TMENT parents; we must support those who cannot sibilities impacted the lives of most women. Being torn in this manner about caregiv-
EDUC ATION AND LE ARNING Women stretched themselves or took a career ing seriously diminishes efficiencies in the
contribute anymore; we must love and care
for someone who has given so much to us when break, quit their jobs, or chose suboptimal marketplace that have emerged for these
they need our help; we cannot abandon those jobs, to care for children, the elderly and the services. After so many years of women
who are weak and dependent; we must set a home. Markets for caregiving came up in re- being in the workforce, and the dispropor-
good example by being kind to the elderly, and sponse. Households began to engage workers tionate caregiving responsibility after
so on. The standard for responsible behaviour to help with the chores. Childcare services child-bearing, they have not been able to
We have done our best by the next generation has been set in the so- offered hope for women who went to work. demand mandatory daycare services at
for our parents, but we ciety, where abandoning aged parents is near Today’s working woman can also outsource their workplace. Household help remains an
know the toll it took on criminal. Taking care of parents is what lov- her kitchen. Why should care for the elderly be unregulated and exploitative marketplace.
us. Being appreciated ing, virtuous, dutiful and grateful children do, seen differently? The packaged and outsourced food industry
for being the caregiver we tell ourselves. We tend to paint a generalistic and unkind has grown with alarming disregard for the
However, we have enough examples around picture of these developments. Most of us don’t health of its consumers. But we continue to
felt good, but not good
us showing that such selfless acts do not come grow our own food anymore. We have long believe that all these services are somehow
enough to ease the
easily to most of us. We have done our best for outsourced it to the point where many of us bad for society because they monetise ser-
burden of caregiving.
our parents, but we know the toll it took on us. have no clue how our food is produced. Faced vices a household must offer altruistically.
We deny the hardships, Being appreciated for being the caregiver felt with the threat of metabolic diseases, we are We can do better. These choices can coex-
graciously do not bring good, but not good enough to ease the burden of still arguing for our rights as consumers in the ist. We can build these services such that
up the sacrifices, and caregiving. We deny the hardships, graciously marketplace for food. We have not taken direct they provide the support we need, while
bury the resentment do not bring up the sacrifices, and bury the responsibility to do it ourselves. Nor is it practi- layering our ability to nurture and care. We
deep inside. We tell resentment deep inside. We turn around as we cal for the world to go back to a life along a river, need conversations around these choices. So
our children as we age and tell our children that we won’t burden growing food in the farm, where we live with many households’ choices around income,
age that we won’t them similarly. That is a clear acknowledge- our livestock. This extreme example is only to spending, saving, investing and giving are
burden them similarly. ment of the burden of the task. Retirement illustrate that markets for caregiving services impacted by these decisions. Our circle of
homes that have sprung up all over India offer will continue to emerge. Caregiving for the what we care about must expand and get real
That is a clear
the choice of old age comfort for a price. Why do elderly need not be an exception. It only takes so that the trade-offs are better informed.
acknowledgement of
we find it difficult to accept that caregiving is a acknowledgement that this task is tough for
the burden of the task.
service that can be outsourced and paid for in a most of us and we need help.
Please send your feedback to
marketplace? We, perhaps, frame the problem differently. [email protected]
Women have been the traditional caregivers Many elders of earlier generations continue

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SMART STATS
The Economic Times Wealth
November 11-17, 2024

In This Section
MUTUAL FUNDS - P12
LOANS AND DEPOSITS - P14

ET WEALTH TOP 50 STOCKS

Every week we put about 3,000 stocks through four key filters and rate them on a mix of factors. The end result
of this is the listing of the top 50 stocks based on the composite rating to help ease your fortune hunt.

RANK PRICE ` GROWTH%* VA LUAT I O N R AT I O S R AT I N G

Value
Current Previous Stock Net PEG Div No. of
Research
Rank Rank Price Revenue Profit PE PB (5-year) Yield (%) funds
Stock Rating

Kotak Mahindra Bank 1 1 1,759 25 29 15.7 2.4 1.2 0.1 142 
1 Fast growing stocks
Can Fin Homes 2 2 856 17 25 13.9 2.4 0.8 0.7 44 
Top 5 stocks with the highest
Manappuram Finance 3 3 153 27 21 5.8 1.0 0.2 2.1 9 
revenue (1-year) growth (%)
Bajaj Finance 4 4 6,920 30 15 27.8 4.9 1.1 0.5 102 

AU Small Finance Bank 5 5 596 41 6 24.6 2.8 0.7 0.2 38  Natco Pharma 42.5
Aavas Financiers 6 6 1,656 19 14 25.3 3.3 2.1 0.0 38  Cholamandalam
Investment 42.2
Indus Towers 7 7 333 5 128 11.9 3.2 0.1 0.0 59 
AU Small Finance
REC 8 9 522 21 17 9.4 1.9 0.4 3.0 118  41.2
Bank
NIIT Learning Systems 9 8 468 5 12 27.6 5.8 3.7 1.1 13 
UTI Asset 31.7
Cholamandalam Inv. & Fin. Co. 10 10 1,287 42 25 28.0 5.0 0.7 0.2 124  Management Co.

Bajaj Finance 29.7

Karur Vysya Bank 11 11 227 22 32 10.4 1.7 0.8 1.0 42 

The Great Eastern Shipping Co. 12 12 1,206 -2 6 6.5 1.4 1.4 2.8 21 

KFin Technologies 13 13 1,026 27 37 59.5 14.6 1.5 0.6 23 

2 Least expensive stocks
Petronet LNG 14 15 333 2 15 13.1 2.7 0.9 2.9 30 
Top 5 stocks with the lowest
ICICI Bank 15 17 1,264 23 17 19.0 3.3 1.4 0.8 270  price to earnings ratio
Hero MotoCorp 16 19 4,778 14 37 23.6 5.1 1.0 2.9 110  Manappuram 5.76
Finance
Chambal Fertilisers and Chem. 17 23 499 -29 26 13.4 2.5 0.6 1.5 11 
The Great 6.47
KPIT Technologies 18 26 1,438 28 49 54.3 15.8 1.1 0.5 51  Eastern Shipp.
DCB Bank 6.70
Shriram Finance 19 25 3,041 20 22 14.4 2.2 0.7 1.5 101 
Repco Home
Nesco 20 20 1,007 15 18 18.9 2.9 1.1 0.6 6  Finance 7.07

LTIMindtree 21 42 5,972 4 5 37.4 8.3 7.3 1.1 50  Utkarsh Small 8.84
Finance Bank
PI Industries 22 18 4,641 11 35 40.8 7.8 1.6 0.3 64 

Best PEGs
NMDC 23 21 242 16 5 11.9 2.5 0.5 3.0 38
3


Happy Forgings 24 -- 1,145 9 16 41.4 6.3 1.9 0.4 23 

Top 5 stocks with the least
Utkarsh Small Finance Bank 25 55 42 29 2 8.8 1.5 0.4 1.2 8  price earnings to growth ratio
Manappuram
Zydus Lifesciences 26 45 977 12 66 23.3 4.6 0.7 0.3 68  Indus Towers Finance
Natco Pharma 27 22 1,432 42 103 15.6 3.9 0.2 0.7 11 

Bandhan Bank 28 14 180 22 10 10.5 1.2 0.5 0.8 17 

0.08 0.11 0.20 0.23 0.32
Just Dial 29 28 1,128 14 59 19.3 2.2 0.3 0.0 6 

Infosys 30 33 1,838 3 8 27.8 8.3 3.3 2.6 212  Ashoka

Buildcon Natco Pharma
Ashoka Buildcon 31 27 239 27 188 10.8 2.8 0.1 0.0 10  Just Dial

Indiamart Intermesh 32 32 2,396 18 36 33.6 7.7 1.0 0.8 28 

Gulf Oil Lubricants India 33 24 1,234 7 27 17.9 4.4 0.7 2.9 8 
4 Income generators
CMS Info Systems 34 30 526 19 7 24.0 4.1 2.2 1.1 27  Top 5 stocks with the highest
HCL Technologies 35 53 1,852 7 9 29.5 7.2 3.3 2.8 123  dividend yield (%)
UTI Asset
Repco Home Finance 36 31 487 15 30 7.1 1.0 0.7 0.6 10  3.46
Management Co.
Sun Pharmaceutical Industries 37 38 1,800 9 29 38.9 6.2 1.5 0.8 171  NMDC 3.04
State Bank Of India 38 35 858 21 2 11.3 1.9 1.7 1.6 214  REC 3.03
UTI Asset Management Co. 39 29 1,339 32 49 20.6 4.0 0.4 3.5 24  Gulf Oil Lubricants
2.95
India
City Union Bank 40 36 182 10 12 12.7 1.5 4.6 0.8 24  Hero MotoCorp 2.91
Abbott India 41 71 28,605 8 19 46.8 17.1 2.5 1.4 50 

LG Balakrishnan & Bros 42 40 1,295 9 10 14.7 2.3 1.7 1.4 8 

5 Most widely held
Kewal Kiran Clothing 43 39 629 -2 13 24.4 5.2 1.9 0.3 15  Top 5 stocks held by most
DCB Bank 44 41 121 23 11 6.7 0.8 1.2 1.0 20 
number of mutual funds
State Bank Of India Sun Pharmaceutical
Computer Age Management 45 34 4,725 26 37 54.2 22.3 1.5 1.0 45  Industries

Emami 46 67 674 5 12 37.9 11.1 3.3 1.2 47 

270 214 212 171 142
Muthoot Finance 47 50 1,837 28 17 16.4 2.9 0.9 1.3 50 

Voltamp Transformers 48 44 10,519 16 39 31.3 7.6 0.8 0.8 18 

Gland Pharma 49 69 1,776 21 47 43.0 3.4 1.1 1.1 54  ICICI Bank Infosys Kotak Mahindra
Bank
Bikaji Foods International 50 48 872 23 60 75.7 16.6 1.3 0.1 25 
SEE NUMBER OF MUTUAL FUNDS HOLDING THE
STOCKS IN THE ADJACENT TABLE.
*REVENUE AND EPS FIGURES BASED ON ONE-YEAR GROWTH. DATA AS ON 8 NOV 2024. SOURCE: VALUE RESEARCH

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP12 User: saurabh.gupta3 Time: 11-08-2024 17:51 Color:

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12 The Economic Times Wealth November 11-17, 2024

LAGGARDS & LEADERS

ETW FUNDS 100

Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).

LAGGARDS LEADERS

BEST FUNDS TO BUILD YOUR PORTFOLIO Equity: Large cap 5-year returns
ET Wealth collaborates with Value Research to identify the top-performing 13.25 25.82
Axis Bluechip Fund BHARAT 22 ETF
funds across categories. Equity funds and equity-oriented hybrid funds are 13.32 25.63
ranked on 3-year returns while debt-oriented hybrid and income funds are PGIM India Large Cap Fund ICICI Prudential BHARAT 22 FOF

ranked on 1-year returns. 14.03 22.42

Groww Large Cap Fund SBI BSE Sensex Next 50 ETF
RETURNS (%)
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%)
14.89 22.36
LIC MF BSE Sensex Index Plan UTI BSE Sensex Next 50 ETF
EQUITY: LARGE CAP 14.97 22.12
Nippon India Large Cap Fund  34,432.09 2.29 9.96 34.93 19.53 20.09 1.57 Tata BSE Sensex Index Fund Quant Focused Fund
Quant Focused Fund  1,183.09 -1.91 5.06 37.79 18.45 22.12 2.15
HDFC Top 100 Fund  38,683.63 1.35 8.78 30.99 16.97 17.69 1.61 19.53%
ICICI Prudential Bluechip Fund 

66,206.57
429.06
2.52 10.26 35.25 16.90 19.54 1.45 THE 3-YEAR
RETURN
Equity: Flexi cap 5-year returns
JM Large Cap Fund 0.35 7.71 37.22 16.29 18.70 2.36
1,906.66 OF NIPPON
DSP Nifty 50 Equal Weight Index Fund - Regular Plan  0.97 9.72 32.28 16.12 19.96 0.87
INDIA 12.12 32.78
 2,439.97
Baroda BNP Paribas Large Cap Fund # 1.87 10.28 38.10 15.62 18.11 2.00 LARGE CAP Axis Focused Fund Quant Flexi Cap Fund
Edelweiss Large Cap Fund - Regular Plan  1,122.58 3.26 10.57 32.39 14.74 17.64 2.18 FUND IS
1,289.72 THE 13.15 24.92
Invesco India Largecap Fund  3.37 11.54 37.51 13.80 18.34 2.09
HIGHEST LIC MF Children’s Fund JM Flexicap Fund
Canara Robeco Bluechip Equity Fund - Regular Plan  15,311.79 3.95 12.61 33.29 12.93 18.23 1.66 IN ITS
CATEGORY. 13.44 24.74
EQUITY: LARGE & MIDCAP ABSL Bal Bhavishya Yojna Parag Parikh Flexi Cap Fund
Motilal Oswal Large and Midcap Fund - Regular Plan  6,500.18 14.86 23.89 58.39 25.50 26.34 1.77
13.95 24.27
Quant Large and Mid Cap Fund  3,827.97 -2.20 3.86 45.64 22.81 26.36 1.88
ABSL Retirement Fund - 30s Plan HDFC Retirement Savings Fund
ICICI Prudential Large & Mid Cap Fund  17,464.42 2.69 12.18 41.49 20.50 23.92 1.70
HDFC Large and Mid Cap Fund - Regular Plan  24,508.23 2.70 11.67 38.81 20.37 23.86 1.66
14.93 24.19
UTI Large & Mid Cap Fund - Regular Plan  4,086.38 4.46 16.64 45.12 20.22 24.15 1.96 Motilal Oswal Focused Fund ICICI Prudential Focused Equity Fund
Kotak Equity Opportunities Fund - Regular Plan  26,175.17 3.02 11.57 38.69 19.59 22.29 1.59
SBI Large & Midcap Fund  29,234.37 4.54 14.42 36.11 18.06 22.10 1.60

EQUITY: FLEXI CAP

Equity: Mid cap 3-year returns
JM Flexicap Fund  4,531.48 3.72 15.24 53.44 25.98 24.92 1.81 12.95 33.52
ICICI Prudential Retirement Fund - Pure Equity Plan  1,035.44 5.92 10.89 48.03 23.91 24.10 2.15
25.98% PGIM India Midcap Opp Motilal Oswal Midcap Fund
HDFC Focused 30 Fund  15,109.01 6.19 14.86 42.76 23.90 22.71 1.68
THE 3-YEAR 16.17 26.77
HDFC Flexi Cap Fund  66,225.06 5.77 15.18 43.58 23.41 23.17 1.43
RETURN OF Axis Midcap Fund HDFC Mid-Cap Opportunities Fund
Bank of India Flexi Cap Fund - Regular Plan  1,918.25 4.28 12.43 52.56 22.03 — 2.02 JM FLEXI-
CAPFUND
16.24 25.31
HDFC Retirement Savings Fund Equity Plan  6,167.84 3.56 12.39 34.78 19.84 24.27 1.78
IS THE DSP Midcap Fund Quant Mid Cap Fund
ICICI Prudential Focused Equity Fund  10,201.40 2.87 14.10 44.47 19.34 24.19 1.74
HIGHEST
Mahindra Manulife Focused Fund - Regular Plan  1,850.46 0.24 8.87 41.63 19.28 — 2.02 IN ITS
17.13 24.69
Franklin India Flexi Cap Fund  18,251.58 3.43 12.61 37.42 17.69 22.72 1.71 CATEGORY. UTI Mid Cap Fund Nippon India Growth Fund
Parag Parikh Flexi Cap Fund - Regular Plan  82,441.08 5.78 11.59 35.00 16.53 24.74 1.33 17.51 24.25
SBI Retirement Benefit Fund - Aggressive Plan  2,837.57 1.50 10.66 26.97 15.83 — 1.94 Taurus Mid Cap Fund Edelweiss Mid Cap Fund
Franklin India Focused Equity Fund  13,050.18 1.88 9.47 33.61 15.82 20.95 1.76
360 ONE Focused Equity Fund - Regular Plan  8,177.06 0.91 9.75 33.61 15.48 21.82 1.78
Union Flexi Cap Fund  2,354.86 3.81 9.32 29.67 13.16 19.72 2.02
Equity: Small cap 3-year returns
EQUITY: MID CAP
Motilal Oswal Midcap Fund - Regular Plan  18,604.02 11.21 29.08 67.07 33.52 32.91 1.62 13.75 29.46
HDFC Mid-Cap Opportunities Fund  77,682.90 4.33 16.00 43.58 26.77 29.35 1.39 PGIM India Small Cap Fund Nippon India Small Cap Fund
Quant Mid Cap Fund  9,500.70 -2.71 1.37 39.57 25.31 33.09 1.73 33.52% 17.68 28.19
Nippon India Growth Fund  35,208.97 6.12 17.53 47.71 24.69 29.98 1.59 THE 3-YEAR
RETURN OF
ABSL Small Cap Fund Bandhan Small Cap Fund

Edelweiss Mid Cap Fund - Regular Plan 7,755.06 9.30 22.49 55.63 24.25 30.31 1.74
MOTILAL 18.99 26.82
Kotak Emerging Equity Fund - Regular Plan  52,626.72 6.55 21.02 45.29 22.56 27.89 1.43 OSWAL
ABSL Nifty Smallcap 50 Index Quant Small Cap Fund
SBI Magnum Midcap Fund  22,338.38 4.06 12.91 33.48 19.52 27.71 1.67 MIDCAP
FUND IS THE 19.38 26.32
EQUITY: SMALL CAP HIGHEST
Kotak Small Cap Fund Tata Small Cap Fund
Nippon India Small Cap Fund  62,259.56 5.08 17.52 44.69 29.46 36.24 1.43
IN ITS
CATEGORY. 19.88 25.37
Tata Small Cap Fund - Regular Plan  9,319.04 13.26 23.91 51.68 26.32 33.41 1.70
SBI Small Cap Fund HSBC Small Cap Fund
EQUITY: VALUE ORIENTED

Hybrid: Aggressive 5-year returns

JM Value Fund  1,084.63 2.22 14.40 49.22 25.50 25.76 2.19
SBI Contra Fund  41,326.63 1.69 9.85 38.84 23.94 30.10 1.52
ICICI Prudential Value Discovery Fund  51,197.82 2.63 13.21 38.68 22.32 26.18 1.54 25.50%
Templeton India Value Fund  2,304.57 0.68 9.78 36.80 20.74 24.54 2.05 THE 3-YEAR 12.01 26.82
RETURN OF PGIM India Hybrid Equity Fund BoI Mid & Small Cap Equity & Debt
Bandhan Sterling Value Fund - Regular Plan  10,600.66 2.71 10.43 36.92 19.75 26.41 1.75
JM VALUE
EQUITY: ELSS FUND IS 12.17 25.45
THE HIGH- ABSL Retirement Fund - 40s Plan JM Aggressive Hybrid Fund
Motilal Oswal ELSS Tax Saver Fund - Regular Plan  4,194.64 13.85 22.46 63.06 25.12 24.14 1.83 EST IN ITS
SBI Long Term Equity Fund - Regular Plan  28,732.52 2.27 12.87 49.70 23.84 24.83 1.60 CATEGORY. 12.54 24.26
HDFC ELSS Tax Saver Fund  16,760.61 4.08 13.19 42.37 21.99 21.20 1.71 Shriram Aggressive Hybrid Fund Quant Absolute Fund
Quant ELSS Tax Saver Fund  11,560.66 -1.58 4.66 40.33 20.30 32.02 1.72 12.57 22.17
Bank of India ELSS Tax Saver Fund - Regular Plan  1,485.63 3.42 8.82 44.70 18.85 25.87 2.08 Axis Children’s ICICI Prudential Equity & Debt Fund
DSP ELSS Tax Saver Fund  17,770.63 4.53 17.44 45.93 18.55 22.04 1.64 12.65 19.4
Parag Parikh ELSS Tax Saver Fund - Regular Plan  4,362.18 4.53 12.76 32.05 17.97 23.09 1.72 LIC MF Unit Linked Insurance Mahindra Manulife Aggressive Hybrid
Kotak ELSS Tax Saver - Regular Plan  6,501.48 2.62 10.14 36.08 17.80 20.80 1.76
ANNUALISED RETURNS IN % AS ON 6 NOV 2024.

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP13 User: saurabh.gupta3 Time: 11-08-2024 17:50 Color:

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The Economic Times Wealth November 11-17, 2024 13

ETW FUNDS 100 RETURNS (%)

Value Research Net Assets Expense

1 Top 5 SIPs
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio

HYBRID: EQUITY SAVINGS

HSBC Equity Savings Fund  477.96 4.62 10.20 25.43 12.77 13.13 1.51 Top 5 equity schemes based
Kotak Equity Savings Fund - Regular Plan  7,643.87 1.86 6.29 18.00 10.98 11.23 1.77 on 10-year SIP returns
SBI Equity Savings Fund - Regular Plan  5,410.46 3.16 7.82 16.35 10.25 11.42 1.19
12.77%
Quant Small Cap Fund
UTI Equity Savings Fund - Regular Plan  594.41 1.25 5.14 14.95 10.00 11.15 1.65 THE 3-YEAR
RETURN OF 28.10
ICICI Prudential Equity Savings Fund  12,168.01 2.04 5.91 10.49 8.52 8.18 0.97
HSBC EQUITY
SAVINGS FUND Nippon India Small Cap Fund
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) IS THE 26.68
SBI Magnum Children's Benefit Fund - Investment Plan  2,855.58 2.41 18.81 41.86 21.28 — 1.93 HIGHEST IN
ITS CATEGORY. Motilal Oswal Midcap Fund
JM Aggressive Hybrid Fund  642.94 2.65 11.41 42.14 21.15 25.45 2.27
ICICI Prudential Equity & Debt Fund  41,395.98 2.35 9.26 32.62 19.18 22.17 1.58 24.84
Bank of India Mid & Small Cap Equity & Debt Fund  1,000.31 4.08 12.95 38.07 19.10 26.82 2.25 Quant ELSS Tax Saver Fund
ICICI Prudential Retirement Fund - Hybrid Aggressive Plan  685.29 4.54 9.96 41.51 17.79 18.74 2.27 24.74
Edelweiss Aggressive Hybrid Fund - Regular Plan  2,197.84 3.26 11.41 31.62 17.18 18.39 1.97
HSBC Small Cap Fund
HDFC Children's Gift Fund  10,042.29 3.43 10.70 27.75 16.00 18.96 1.73
UTI Aggressive Hybrid Fund - Regular Plan  6,330.44 3.76 12.83 32.16 15.96 19.23 1.87 23.78
Quant Absolute Fund  2,352.27 -2.37 3.46 31.63 15.30 24.26 2.00 SIP: SYSTEMATIC % ANNUALISED RETURNS
Kotak Equity Hybrid Fund - Regular Plan  6,714.55 4.19 14.20 32.62 15.25 18.60 1.77 INVESTMENT PLAN AS ON 6 NOV 2024
HDFC Retirement Savings Fund - Hybrid Equity Plan  1,614.71 3.68 10.69 26.55 14.99 17.74 2.08
Baroda BNP Paribas Aggressive Hybrid Fund #  1,200.07 4.17 10.12 31.43 13.78 16.66 2.11

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

SBI Magnum Children's Benefit Fund - Savings Plan  121.21 4.77 12.38 21.57 12.63 13.34 1.21
2 Top 5 SWPs
Top 5 conservative hybrid schemes

Kotak Debt Hybrid Fund - Regular Plan 2,885.62 2.84 7.17 17.53 9.63 11.58 1.66
21.57% based on 3-year SWP returns
HDFC Hybrid Debt Fund  3,342.03 2.00 5.98 15.77 9.99 10.97 1.76
ICICI Prudential Regular Savings Fund  3,303.15 2.20 6.58 14.83 9.07 9.94 1.66 THE 1-YEAR Bank of India Conservative Hybrid Fund
RETURN OF
SBI Conservative Hybrid Fund  10,030.40 2.36 7.10 14.78 9.66 11.31 1.12 14.09
SBI MAGNUM
Bank of India Conservative Hybrid Fund - Regular Plan  66.74 1.26 3.67 11.65 13.00 11.96 2.23 CHILDREN’S
BENEFIT SBI Magnum Children’s Benefit Fund
HYBRID: DYNAMIC ASSET ALLOCATION FUND IS THE 11.71
HDFC Balanced Advantage Fund  96,535.51 1.54 8.49 31.81 21.07 20.22 1.35 HIGHEST
IN ITS Parag Parikh Conservative Hybrid Fund
Baroda BNP Paribas Balanced Advantage Fund #  4,186.97 3.16 8.22 25.52 12.82 16.06 1.89
CATEGORY. 11.18
Edelweiss Balanced Advantage Fund - Regular Plan  12,689.91 2.01 6.68 23.90 11.23 15.13 1.69
ICICI Prudential Balanced Advantage Fund  62,050.92 1.69 7.68 20.30 12.18 13.20 1.46 ICICI Prudential Income Optimizer Fund (FOF)
Tata Balanced Advantage Fund - Regular Plan  10,453.34 1.32 6.22 19.75 11.15 13.32 1.70 11.16
DEBT: FLOATER SBI Retirement Benefit Fund
SBI Floating Rate Debt Fund - Regular Plan  1,152.51 1.94 4.26 8.38 6.48 — 0.46 10.43
Aditya Birla Sun Life Floating Rate Fund - Regular Plan  12,681.31 1.96 3.97 7.98 6.52 6.43 0.44
SWP: SYSTEMATIC % ANNUALISED RETURNS
WITHDRAWAL PLAN AS ON 6 NOV 2024
DEBT: BANKING AND PSU
Aditya Birla Sun Life Banking & PSU Debt Fund  9,341.66 1.96 4.25 8.10 5.95 6.50 0.73
HDFC Banking and PSU Debt Fund - Regular Plan  5,748.27 1.93 4.21 8.06 5.82 6.42 0.79
Value Oriented :
ICICI Prudential Banking & PSU Debt Fund
Bandhan Banking & PSU Debt Fund - Regular Plan


8,929.75
13,434.76
1.78
1.84
3.94
4.01
7.81
7.69
6.23
5.78
6.61
6.34
0.74
0.63
8.10%
THE 1-YEAR
RETURN OF
3 Cash Holdings
ITI Banking and PSU Fund - Regular Plan  30.96 1.75 3.82 7.69 5.85 — 0.70
ABSL BANK-
ING & PSU
DEBT: SHORT TERM 14.26
FUND IS THE
HDFC Short Term Debt Fund  14,622.22 2.00 4.32 8.51 6.13 6.73 0.71 HIGHEST IN 9.34
Sundaram Short Duration Fund  193.82 2.13 4.31 8.17 5.88 7.52 0.83 ITS CATEGORY.
Aditya Birla Sun Life Short Term Fund - Regular Plan  8,759.95 1.93 4.15 8.14 6.11 6.60 1.01 6.75 6.26 6
Axis Short Duration Fund  9,341.54 1.89 4.09 8.14 5.92 6.35 0.89
UTI Short Duration Fund - Regular Plan  2,567.03 1.98 4.00 8.08 5.94 7.41 0.83
ICICI Prudential Short Term Fund  19,746.04 1.88 4.04 7.98 6.39 6.85 1.02

DEBT: CORPORATE BOND ICICI SBI DSP Tata Axis

Prudential Contra Value Equity Value
Aditya Birla Sun Life Corporate Bond Fund  22,493.63 2.09 4.58 8.78 6.44 7.09 0.52 Value Fund Fund PE Fund Fund
HDFC Corporate Bond Fund  31,301.09 2.18 4.58 8.74 6.17 6.90 0.61 Discovery
Nippon India Corporate Bond Fund  4,618.48 2.15 4.52 8.69 6.49 6.86 0.70 # Expense as on 30 September 2024 Fun
Kotak Corporate Bond Fund - Standard Plan  13,846.35 2.05 4.41 8.48 6.05 6.38 0.67 Expense as on 31 October 2024
Returns as on 06 November 2024 % OF ASSETS AS ON 30 SEP 2024
Axis Corporate Bond Fund - Regular Plan  6,097.83 1.91 4.27 8.20 5.98 6.67 0.91
Assets as on 30 September 2024
ICICI Prudential Corporate Bond Fund  26,853.66 1.94 4.13 8.08 6.47 6.89 0.58

4
Rating as on 31 October 2024

Did not find your fund here?

All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns.
Debt: Dynamic Bond
Log on to www.wealth.economictimes.com for an exhaustive list.

Methodology Debt funds with less than

18-months performance
Categories
Equity: Large-cap: Funds investing at Hybrid: Conservative: Funds investing FUND
RAISER
The Top 100 includes only least 80% in large cap stocks. 10-25% in equity, and the rest in debt.
history and equity 1.53
those funds that have a 1.45 1.47
and hybrid funds with Equity: Large & MidCap: Funds invest- Hybrid: Equity Savings: Funds investing 1.41
5- or 4-star rating from ing at least 35% each in large and at least 65% in equity and equity related
less than three-years 1.14
Value Research. The rating

20.5%
performance track record mid caps. instruments, and at least 10% in debt.
of a fund vis-à-vis other
are not rated. This ensures Equity: Flexi Cap: Funds investing at Hybrid: Dynamic Asset Allocation:
funds in its category is least 65% in equity with no particular Funds which dynamically manage
that all the funds have
determined by subtracting cap on large, mid or small. the asset allocation between equity
existed long enough to be
a fund’s risk score from its Equity: Mid Cap: Funds investing at
and debt.
tracked for consistency
return score. The resulting least 65% in mid caps. Debt: Short Duration: Funds with
of performance. Given of the AUM of Quant Small Cap
number is assigned stars Macaulay duration between 1 and 3
the focus on long-term Equity: Small Cap: Funds investing at DSP ICICI Invesco Nippon Bank
according to the following least 65% in small caps.
years at the portfolio level. Fund was concentrated in the top
investing, we have Credit Pru- India India of India
distribution:
(Not considered only the Equity: Value Oriented: Funds fol-
Debt: Corporate Bond: Funds investing three stocks in September 2024, Risk dential Credit Credit Credit
at least 72% in AA+ and above-rated the highest concentration among
covered ‘growth’ plan of funds as lowing value/contrarian investment
corporate bonds. Fund Credit Risk Risk Risk
Top 10% in ETW it reinvests interim gains strategy and grouped under ‘Value’ or small-cap equity funds. The Risk Fund Fund Fund
Funds 100 unlike ‘IDCW’ plan which ‘Contra’ categories as per SEBI. Debt: Banking and PSU: Funds invest- Fund
Next 22.5% listing) ing at least 72% in the debt instruments category average of concentration % AS ON 31 OCT 2024
offers periodic payouts to ELSS: Equity: With a lock-in of three
Middle 35% years and tax benefit under Section 80C.
of banks, PSUs, public financial institu- in the top three stocks was 9.4%.
investors, thereby reducing tions and municipal bonds. % EXPENSE RATIO IS CHARGED ANNUALLY.
Next 22.5% NAV. The fund categories Hybrid: Aggressive: Funds investing METHODOLOGY OF TOP 100 FUNDS ON
Debt: Floater: Funds investing at least
Bottom 10% are: 65-80% in equity, and the rest in debt.
58.5% in floating-rate instruments. Source: ACEMF. WWW.WEALTH.ECONOMICTIMES.COM

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP14 User: saurabh.gupta3 Time: 11-08-2024 17:37 Color:

loans and deposits

14 The Economic Times Wealth November 11-17, 2024

LOANS & DEPOSITS

ET WEALTH collaborates with ETIG to provide a comprehensive ready reckoner of loans and fixed-income
instruments. Don’t miss the information on investments for senior citizens and a simplified EMI calculator.

Top five bank FDs

Interest rate (%) What `10,000
HOME LOAN RATES
TENURE: 1 YEAR compounded qtrly will grow to With effect from October 2019, all banks have made the transition to
Bandhan Bank 8.05 10,830 external benchmarks for pricing new home loans. Most banks have
IndusInd Bank 7.75 10,798 picked the RBI repo rate as the external benchmark.
RBL Bank 7.50 10,771
Karnataka Bank 7.35 10,756 REPO RATE: 6.5%
YES Bank 7.25 10,745 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
RBL Bank 8.00 11,717 City Union Bank 9.70 8.25 10.50 8.25 10.50 23 May 2024
IndusInd Bank 7.75 11,659 IndusInd Bank -- 8.35 10.00 8.35 10.00 Not Given
DCB Bank 7.50 11,602 Bank of Maharashtra 9.30 8.35 10.40 8.45 10.90 13 June 2024
Karnataka Bank 7.35 11,568
Union Bank of India 9.25 8.35 10.75 8.35 10.75 11 April 2024
ICICI Bank 7.25 11,545
Indian Bank 9.20 8.40 9.80 8.90 10.30 15 April 2024
TENURE: 3 YEARS
Indian Overseas Bank 9.35 8.40 10.50 8.50 10.60 13 Oct 2023
DCB Bank 7.55 12,516
Bank of Baroda 9.15 8.40 10.60 8.40 10.60 14 Feb 2023
RBL Bank 7.50 12,497
Bank of India 9.35 8.40 10.70 8.40 10.85 1 June 2024
Bandhan Bank 7.25 12,405
IndusInd Bank 7.25 12,405 UCO Bank 9.30 8.45 10.30 8.45 10.30 15 Mar 2023
YES Bank 7.25 12,405 IDBI Bank 9.10 8.45 10.80 8.55 12.30 12 Aug 2024

TENURE: 5 YEARS
SBI Term Loan 9.15 8.50 9.65 8.50 9.65 5 April 2024
DCB Bank 7.40 14,428 Punjab & Sind Bank 8.45 8.50 10.00 8.50 10.00 16 Feb 2024
Dhanlaxmi Bank 7.25 14,323 Canara Bank 9.25 8.50 11.20 8.55 11.25 12 Aug 2024
IndusInd Bank 7.25 14,323 Karnataka Bank -- 8.60 10.62 8.60 10.62 1 April 2024
Yes Bank 7.25 14,323 South Indian Bank 9.85 8.70 11.20 8.75 11.70 Not Given
RBL Bank 7.10 14,217 Kotak Mahindra Bank -- 8.75 9.00 8.75 9.00 Not Given
HDFC Bank -- 8.75 9.95 8.75 9.95 Not Given
Top five senior citizen bank FDs Federal Bank -- 8.80 10.25 10.20 10.30 16 Feb 2024
Interest rate (%) What `10,000 Karur Vysya Bank 9.90 9.00 11.05 9.00 11.05 19 Aug 2024
TENURE: 1 YEAR compounded qtrly will grow to
J & K Bank 9.45 9.10 10.20 9.10 10.20 10 June 2024
Bandhan Bank 8.55 10,883
IndusInd Bank 8.25 10,851
Bandhan Bank -- 9.16 13.33 9.16 13.33 Not Given
RBL Bank 8.00 10,824 ICICI Bank -- 9.25 9.90 9.40 10.05 Not Given
Karnataka Bank 7.85 10,808 Dhanlaxmi Bank 8.50 9.35 10.00 9.85 10.50 1 Aug 2024
YES Bank 7.75 10,798

TENURE: 2 YEARS
RBL Bank 8.50 11,832
Your EMI for a loan of `1 lakh
IndusInd Bank 8.25 11,774 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
DCB Bank 8.00 11,717
@ 7% 1,980 1,161 899 775 707
Karnataka Bank 7.85 11,682
IDFC First Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.05 12,701
@ 9% 2,076 1,267 1,014 900 839
RBL Bank 8.00 12,682
@ 10% 2,125 1,322 1,075 965 909
YES Bank 8.00 12,682
Bandhan Bank 7.75 12,589 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
IndusInd Bank 7.75 12,589

TENURE: 5 YEARS
YES Bank 8.00 14,859
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits

DCB Bank 7.90 14,787 Sukanya Samriddhi Yojana 8.20 250 `1.5 lakh p.a. One account per girl child 80C
Axis Bank 7.75 14,678
Dhanlaxmi Bank 7.75 14,678 Senior Citizens’ Savings Scheme 8.20 1,000 `30 lakh 5-year tenure, minimum age 60 yrs 80C
IndusInd Bank 7.75 14,678
Public Provident Fund 7.10 500 `1.5 lakh p.a. 15-year tenure, tax-free returns 80C

Kisan Vikas Patra 7.50 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.70 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit# 6.9-7.50 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.40 14,428
Dhanlaxmi Bank 7.25 14,323 Single `9 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
IndusInd Bank 7.25 14,323 7.40 1,000
Scheme
Joint `15 lakh 5-year tenure, monthly returns Nil
YES Bank 7.25 14,323
City Union Bank 7.10 14,217 Recurring deposits 6.70 100 No limit 5-year tenure Nil

Savings account 4.00 500 No limit `10,000 interest tax-free Nil

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
([email protected]) Data as on 7 Nov 2024 #Benefit available only for 5-year deposit

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP15 User: saurabh.gupta3 Time: 11-08-2024 17:35 Color:

financial planning
The Economic Times Wealth November 11-17, 2024 15

PAPER WORK
:: RBI Retail Direct for
retail investors

GETTY IMAGES
The platform, managed by the Re-
serve Bank of India, allows inves-
tors to invest directly in govern-
ment securities (G-secs), Treasury
bills (T-bills) and Sovereign Gold
Bonds (SGBs) without a broker. It
simplifies access to the sovereign
bond market for retail investors,
offering a direct and secure way
to invest and manage portfolios.

Registering
Investors can register on
the Retail Direct website
(https://rbiretaildirect.

Invest regularly instead

org.in). Resident Indians
and NRIs are eligible to
open an account by providing details
for Aadhaar, PAN, bank account and
mobile number. On verification, inves-

of timing the market

tors receive a Retail Direct Gilt (RDG)
account for transactions.

Options

S
Investors can buy and
Saanvi Aggarwal, 40, is a aanvi Aggarwal is contemplat- Alternatively, waiting for the ‘perfect’ sell various government
ing when to enter the equity time could lead to ‘investment inertia’, securities, such as:
corporate professional, and market, aiming to ‘buy low keeping her sidelined indefinitely.  Treasury bills: Short-
recently received a year-end and sell high’. Market timing Timing the market can be a challenging term investments with
bonus of `10 lakh. She is involves predicting whether the
market will continue its current trajecto-
game to win.
Research shows that regular invest-
maturities of up to one year.
 Government bonds: Bonds with
aware of the higher return ry or reverse course, an uncertain task. ing generally yields better outcomes tenures from five to 30 years.
For Aggarwal, it’s challenging to gauge than attempting to time the market. If  Sovereign gold bonds: A substi-
potential of equity, but remains tute for holding physical gold, offer-
whether a stock that has doubled in five Aggarwal had invested systematically
cautious about the risks, years is at its peak or if it will further in the Sensex over the past five years, ing returns linked to gold prices.
especially due to the mar- increase in value. The same uncertainty she would have possibly outperformed
applies to stocks that are declining. market timing attempts, which carry the
ket’s highs over the past year. Ultimately, the dilemma she faces is that risk of misjudgement. While timing may Placing orders
Although a slight correction investing hinges on the future, which is sound ideal in theory, it rarely proves Investors can buy securi-
inherently unpredictable. successful for most investors in practise. ties through periodic auc-
has occurred, she’s uncertain While Aggarwal is inclined to wait for To avoid regret over a potentially poor
tions conducted by the
if this is the right moment to RBI. The platform allows
the ‘right’ level to invest, she might feel timing decision, Aggarwal risks end-
users to view upcoming auctions,
invest in equities or if a more compelled to sell after a major drop or lessly waiting for the ‘right’ moment to
place bids, and track their bids in real
invest eagerly in a rising market. This invest. Instead, her best strategy should
significant market correction time. Payment for the securities is
tendency to anticipate further falls in a be to forego market timing, create a made through a linked bank account.
may be approaching, which she downturn or additional gains in an up- plan, and invest systematically at regu-
swing may lead her to buy high and sell lar intervals over the next several weeks
could leverage. low, ultimately impacting her returns. or months.
Managing investments
Content courtesy Centre for Investment Education and Learning (CIEL). The platform facilitates
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. easy management
of G-secs, allowing

smart things to know Anchor investors

investors to view and
track their holdings, receive interest

1
4
payments, and access maturity pro-
ceeds directly in their bank account.

2 :: Points to note

3
Anchor investors They help in

5
are institutional price discov- They usually They help  The platform enables direct access
investors who Anchor investors ery by placing agree to a lock-in provide to government securities without
commit to pur- typically include large bids, period, which price brokerage fees.
chasing a mutual funds, indicating the ranges from 30 stability  While G-secs are safe, they may be
significant por- foreign portfolio interest of to 90 days, dur- and boost less liquid compared to equities,
tion of shares investors, insur- institutional ing which they investor especially for long-tenure bonds.
in a company ance companies, investors in cannot sell their confidence
before its IPO. and pension funds. the IPO. shares. in the IPO.

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP16 User: saurabh.gupta3 Time: 11-08-2024 17:34 Color:

mutual funds
16 The Economic Times Wealth November 11-17, 2024

DSP MIDCAP

Struggling to keep pace

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals
of the fund, its portfolio and performance to help you make an informed investment decision.

HOW THE FUND HAS PERFORMED Top 5 sectors in portfolio (%)

Point-to-point returns (%)

BASIC Financial 15.19

FUND BENCHMARK CATEGORY AVERAGE FACTS Automobile 12.78

Capital Goods 12.73

DATE OF LAUNCH
14 NOV 2006 Chemicals 9.97
43.56 42.26
38.70 CATEGORY
28.96 EQUITY Technology 8.93
26.41
21.69 20.50 20.87 TYPE
15.45 The portfolio is fairly diversified
MID CAP
in its sector positioning.
AUM*
`20,237.46 crore AS ON 30 SEP 2024
1-YEAR 3-YEAR 5-YEAR
BENCHMARK
The fund has sharply lagged index AS ON 5 NOV 2024 NIFTY MIDCAP 150
and peers in recent years. TOTAL RETURN INDEX Top 5 stocks in portfolio (%)

Coforge 3.78

Rolling returns (%) FUND BENCHMARK

WHAT IT AU Small Finance
Bank 3.25

20.53 COSTS Ipca Laboratories 3.19

1-YEAR
NAV** Bharat Forge
24.44 3.03
GROWTH OPTION
Coromandel 2.86
`144.233 International
18.42 IDCW
3-YEAR The fund is well diversified with
`32.505
20.14 modest positions in top bets.
MINIMUM INVESTMENT AS ON 30 SEP 2024
`100
16.90
5-YEAR MINIMUM SIP AMOUNT
17.05 `100
EXPENSE RATIO # (%) Recent portfolio changes
1.66 New entrants
The fund’s long-term track record indicates chronic AS ON 5 NOV 2024

underperformance across time frames. EXIT LOAD

Kirloskar Oil Engines (Aug).
Note: Different benchmark (BSE Midcap150 TRI) is used due to non availability of stated benchmark data.
1% for redemption
within 364 days Samvardhana Motherson International (Sep).
Returns are rolled daily over past decade for relevant time frames.

*AS ON 30 SEP 2024

WHERE THE FUND INVESTS **AS ON 5 NOV 2024 Complete exits

#AS ON 30 SEP 2024
Can Fin Homes, Ratnamani
Metals & Tubes (Aug).
Portfolio asset
Fund
allocation
style box
Growth Blend Value How risky is it?
Fund Category Index
95.15%
Large

Equity
Standard deviation 15.61 14.95 15.55
CAPITALISATION

Large cap 9.56

70.71
Medium

Mid cap Sharpe ratio 0.65 0.99 1.05

Small cap 19.73
Mean return 16.03 20.60 22.12
Cash 4.85
FUND
Small

BASED ON 3-YEAR PERFORMANCE.

MANAGER
Debt 0.00
INVESTMENT STYLE The fund’s risk-return profile is
VINIT SAMBRE inferior to many of its peers.
The fund retains sizeable presence in
AS ON 30 SEP 2024 12 YEARS, 3 MONTHS AS ON 31 OCT 2024
small-caps apart from its mid-cap tilt. Source: Value Research

The fund adopted the mid-cap portfolio featuring modest is erratic, it has endured a torrid
Should mandate in 2018 after being
run as a mid- and small-cap fund
positions in its top bets. The
fund seeks businesses with high
time since 2021. It has sharply
lagged both its index and peers,
You previously. It retains sizeable ROE, low leverage and positive sinking to the bottom of the

Buy presence in small-caps apart

from its mid-cap tilt. It also runs
cash flows, with sustainable
competitive advantages. While
performance charts. Investors
should stick with more proven
a leaner yet well diversified the fund’s long-term track record offerings in this segment.

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP17 User: saurabh.gupta3 Time: 11-08-2024 17:24 Color:

pick of the week

The Economic Times Wealth November 11-17, 2024 17

DLF: Set to soar with new launches

Strong launch pipeline, healthy operating cash flows and industry tailwinds to drive performance.

T
he real estate player reported a strong 47% and 122% aspirational lifestyle, entry of foreign retailers, growing Fundamentals
year-on-year growth in revenue and PAT in the consumption and demand for quality malls. The management CONSENSUS
ACTUAL
September quarter. However, the presales bookings continues to take strategic steps to strengthen its business ESTIMATE
contracted 69% year-on-year to `690 crore due to segments. In the development business, the focus is on tap- 2022-23 2023-24 2024-25 2025-26
the lack of new launches amid delay in obtaining necessary ping multiple geographies and developing margin-accretive Revenue (` cr) 5,694.83 6,427.00 7,748.51 9,317.51
approvals. Despite muted sales bookings, the company gener- products. For the rental business, the company is growing its EBIT (` cr) 1,725.88 1,913.40 2,585.67 3,347.60
ated strong operating cash flows and maintained a net cash portfolio through organic growth across both office and retail Net profit/loss (` cr) 2,035.83 2,727.09 3,518.81 4,297.97
position (cash minus liabilities). segments. The management expects a sharp improvement in
EPS (`) 8.22 11.02 14.50 17.36
The management is confident of achieving its annual sales occupancy of the DCCDL (a DLF group company) office port-
guidance of `17,500 crore in 2024-25, folio from the second half of 2024-25.
Valuations PBV PE
DIVIDEND
YIELD (%)

Analysts’ views
aided by a strong launch pipeline A significant land bank having a high
for the second half of the current fi- embedded potential, robust pipeline of DLF 5.04 55.16 0.62
Macrotech Developers 7.11 58.6 0.18
nancial year. It has guided a launch
1 new products across both development
pipeline with an estimated GDV of and rental business, strong balance Godrej Properties 7.82 56.27 0.00
`42,000 crore for 2024-25. It also aims
Sell 13 sheet and consistent cash flow gen- Oberoi Realty 5.33 31.81 0.20
Buy
to launch its luxury projects (The eration are the key strongholds of the Prestige Estates Projects 6.28 104.09 0.10
Dahlias, DLF 5 and Privana 3) in the company. A recent HDFC Securities
2
fourth quarter of 2024-25, which will
drive presales. The company main-
Hold
report lists robust sectoral trends,
industry-wide consolidation, record-low
Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
tained a strong performance track inventory in its core market, increasing
28 Oct 2024 HDFC Securities Buy 988
record and developed 178 projects. demand for branded luxury offerings
In terms of scale, it has a develop- and expansion of its annuity portfolio as 28 Oct 2024 Antique Stock Broking Buy 1,014
ment potential of 220 million square the key growth drivers. 28 Oct 2024 Motilal Oswal Buy 925
DLF is a beneficiary of the buoyant real
feet (msf) across residential and estate market. The stock has outperformed the mar- 28 Oct 2024 JM Financial Buy 1,000
commercial segments. It is a benefi- ket benchmark in the last one year with 27 Oct 2024 ICICI Securities Add 880
ciary of the buoyant real estate market, which is driven by fac- 35.6% returns compared to BSE Sensex with 22.5% returns.
tors such as increasing urbanisation, shifting demographics,
aspirational lifestyles, and economic growth in the country.
Selection methodology: We pick the stock that has shown
the maximum increase in ‘consensus analyst rating’ during
Relative performance 135.6
100 MARKET PRICE: `803.1 127.4
The growing residential demand, expected growth in sus- the past three months. The consensus rating is arrived at by
tainable workplaces, growing population and rising income averaging all analyst recommendations after attributing
levels are adding further impetus to the sector’s growth. weights to each of them (1 for strong buy, 2 for buy, 3 for hold, 4
Policy interventions like RERA, increasing demand for larg- for sell, 5 for strong sell). An improvement in consensus ana-
er homes and consumer preference for the luxury segment lyst rating indicates that the analysts are getting bullish on SENSEX
are driving the residential segment whereas rising demand the stock. Only stocks with more than five analysts covering 122.5
for quality workplaces and expansion by Global Capability them are considered. You can see similar consensus analyst
7 NOV 2023 DLF ET Construction 7 NOV 2024
Centres are supporting the office segment. rating changes during the past week in ETW 50 table.
DLF is compared with ET Construction and BSE Sensex. Stock and index values
On the other hand, the retail segment is thriving due to —Sameer Bhardwaj normalised to a base of 100. Source: ETIG and Reuters-Refinitiv

WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
STOCK ADVICE COMMENT
HOUSE PRICE (`) PRICE (`) UPSIDE (%)

Rate ‘buy’ due to decent performance in the September quarter driven by higher optic cable margins. Also, fo-
Sterlite Technologies Nuvama Buy 122 170 39.3 cus on improving global market share, likely increase in spending by global telecom operators and likely decline
in inventory destocking in the US are the key positives.
Maintain ‘buy’ due to good performance in the September quarter led by robust asset quality. Also, operating
Centrum
Federal Bank Buy 185 250 35.1 leverage ‘benefits, normalisation of credit cost, focus on enhancing NIMs and improving return profile are the
Broking key positives.
Maintain ‘buy’ due to the likely volume improvement in the future led by market share gains in the tractor
Steel Strips Wheels Axis Securities Buy 204 265 29.9 segment and increase in export demand. Also, expectations of EBITDA margins expansion due to value added
products are the other positives.
Reiterate ‘buy’ due to the decent performance in the September quarter led by controlled costs. Also, earnings
Gland Pharma Motilal Oswal Buy 1,611 1970 22.3 are expected to revive over the next two years aided by the increased volume offtake of base products.

Antique Stock Retain ‘buy’ due to the strong operating performance in the September quarter aided by a favourable revenue
ABB India Buy 7,126 8624 21.0
Broking mix, better pricing and cost optimisation measures. Pickup in industry capex is a key positive.

Cholamandalam Maintain ‘buy’ due to the steady performance in the September quarter led by decent NII and healthy other
JM Financial Buy 1,280 1530 19.5
Investment & Finance Co. income. Its robust track record and improvement in operational efficiencies are the key positives.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) DOWNSIDE (%)

Retain ‘sell’ due to the weak performance in the September quarter amid subdued revenue growth and higher
Exide Industries Kotak Securities Sell 445 300 -32.6 than expected expenses. Profitability and return ratios are likely to remain under pressure in the future.

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP18 User: saurabh.gupta3 Time: 11-08-2024 17:22 Color:

tax optimiser
18 The Economic Times Wealth November 11-17, 2024

NPS, perks can cut tax by `37,000

Sudhir Kaushik of TaxSpanner.com tells readers how they can
optimise their tax by rejigging their incomes and investments.

G
urugram-based finance
professional Harpreet Singh
pays a low tax even though
his salary is not very tax- INCOME
friendly. However, there
is scope to bring this down further. FROM EMPLOYER
TaxSpanner estimates that Singh’s tax
can be reduced by nearly `37,000 if his
pay structure is rejigged to include tax-
free perks, his company offers him the
INCOME HEAD CURRENT SUGGESTED
NPS benefit and he invests in the pen-
sion scheme on his own as well.
Many of the perks, including con- Basic salary 4,80,000 4,80,000
veyance allowance, in Singh’s salary
House rent allowance 2,40,000 2,40,000
are taxable. He should ask these to be Reduce this
replaced by some tax-free perks. If he Special allowance 1,24,000 1,24,000 taxable component
gets communication allowance of `6,000 of the salary.
(`500 per month), books and periodicals Conveyance allowance 2,90,400 1,72,400 These perks are
allowance of `6,000 (`500 per month), tax-free subject to
and food coupons worth `18,000 (`1,500 Communication allowance 0 6,000 actual usage and
per month), his tax will come down by reasonable limits.
Meal coupons 0 18,000 Bills will need to be
about `6,250. Leave travel allowance of
`40,000 will cut the tax outgo by `8,300. submitted to claim
Books and periodicals 0 6,000 these.
Offering these allowances will not add
to his employer’s paperwork because Leave travel allowance 0 40,000 This is tax-free if
employee benefit solutions such as claimed twice in a
Zaggle Save can manage these perks Employer's contribution to PF 57,600 57,600 block of four years.
digitally. Up to 10% of basic
Contribution to NPS under Sec 80CCD(2) 0 48,000
More tax can be saved if his company pay put in the NPS is
offers him the NPS benefit. Under tax-free.
TOTAL 11,92,000 11,92,000
Section 80CCD(2), up to 10% of the em-
ployee’s basic salary put in the pension
scheme is tax-free. If his company puts
You stand to save
`4,000 (10% of his basic salary) in the
NPS on his behalf every month, his an-
nual tax will reduce by about `10,000.
INCOME FROM OTHER SOURCES `29,079
in tax if you stay
Another `10,400 can be saved if Singh
invests `50,000 in the pension scheme Interest income 750 0 in the old tax
on his own.
regime.
Capital gains 0 0
Singh relies on the group health
Shift from fixed
insurance from his employer. Group Rental income 0 0 deposits to mutual
health covers have gaps and he needs funds to avoid
to buy a health cover separately. A pre- TOTAL 750 0 yearly tax.
mium of `8,000 for a health cover will
All figures are in `
further cut his tax by about `1,650.

Denotes suggestion to increase Denotes suggestion to reduce

Tax-saving investments
INVESTMENT CURRENT SUGGESTED
OPTION (`) (`)
Reduce
57,600 contribution to
Provident Fund 57,600
the PPF. Harpreet Singh’s tax
PPF 1,00,000 32,400
Start SIPs of TAX ON TAX ON TOTAL TAX SAVED WRITE
60,000 TAX ON INTEREST CAPITAL TO US
`36,764
ELSS funds 0 `5,000 in an
SALARY INCOME GAINS
ELSS fund to
NPS under Sec 80CCD(1b) 0 50,000 save tax. FOR HELP
CURRENT
TOTAL ADMISSIBLE 1,50,000 2,00,000 Contribute to PER YEAR Paying too much
tax? Write to us
the NPS to save `53,435 156 0 at etwealth@
for retirement.
Other deductions `53,591 TAX RATIO
(Total tax as % of annual income)
timesgroup.com with
‘Optimise my tax’
EXEMPTION OR CURRENT SUGGESTED as the subject. Our
DEDUCTION (`) (`)
EXISTING SUGGESTED experts will tell you
Buy health how to reduce your
HRA exemption 2,40,000 2,40,000 insurance for SUGGESTED tax by rejigging your

Medical insurance 0 8,000

yourself.
`16,827 0 0
4.5% 1.4% pay and investments.

TOTAL ADMISSIBLE 2,40,000 2,48,000 `16,827

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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealth Edition: 1 Page: ETWDP19 User: saurabh.gupta3 Time: 11-08-2024 18:14 Color:

mutual funds
The Economic Times Wealth November 11-17, 2024 19

Goals ambitious, but can PORTFOLIO

DOCTOR

be reached by hiking SIPs Not many

investors

BCCL
know
Prashank Saxena is saving for multiple goals. Here’s what the doctor has advised him. whether
1 2 3 4 5 6
they have
invested in
EMERGENCY START CHILD’S WEALTH CHILD’S RETIREMENT
FUND: BUSINESS: EDUCATION: CREATION: MARRIAGE: INCOME: 24 years the right
10 years 18 years 18 years 27 years
GOALS

IMMEDIATE CURRENT NEED: funds and if their

PRESENT COST: PRESENT COST: PRESENT COST: PRESENT COST: `1.5 crore
PRESENT COST:
`1 crore `30 lakh fund portfolio is on
`9 lakh `15 lakh `25 lakh (`60,000 a month)
FUTURE COST: FUTURE COST: FUTURE COST: FUTURE COST: CORPUS NEEDED:
track. The Portfolio
FUTURE COST: NA
`29.5 lakh `1.39 crore `3.38 crore `1.86 crore `7.6 crore Doctor assesses the
health of the fund
PORTFOLIO CURRENT EXISTING RECOMMENDED ACTION NEW SIP portfolio, examines the
INVESTMENT VALUE (`) SIP (`) (`)
CHECK-UP schemes and their
Investing in a mix of Shift to a debt fund or arbitrage scheme for better suitability with regard to
equity, debt and hy- 1 Fixed deposits 9,77,000 0 tax efficiency and liquidity. 0
the goals and, if
brid mutual funds for Fund is a consistent underperformer. Shift to Parag
past 7-8 years.
Axis Bluechip Fund 1,15,210 0 Parikh Flexicap. 0 required, recommends
Has built sizeable Parag Parikh Flexi Cap 16,107
Restart SIPs of `5,000 in this outstanding flexi-cap
0 fund. Increase by 5% every year. 5,000 corrective measures. The
portfolio with regu- 2
Continue holding this stable fund but watch perfor-
advice given is based on
lar investing. Mirae Asset ELSS Tax Saver 1,51,249 0 mance closely. 0
the performance of the
Goals are ambitious
but can be reached Axis Nifty Smallcap 50 27,987
Continue SIPs in this index fund. Hike amount by
2,500 5% every year. 2,500 funds, the risk profile of
by increasing Increase monthly contribution to `5,000. Use ma- the investor as well as
monthly investment. PPF 6,64,171 4,167 turity amount for child education goal. 5,000
his financial goals.
SIPs will also have to Continue SIPs in this stable large & mid-cap fund.
3 Axis Growth Opportunities 84,562 3,000 Hike amount by 5% every year. 3,000
be increased by 5%
every year.
Nippon India Small Cap 3,16,486
Continue SIPs in this outperforming small-cap
3,000 fund. Hike amount by 5% every year. 3,000 Assumptions used
Holding too many
funds. Needs to con- Increase SIPs in this mid-cap index fund to `5,000. in the calculations
Axis Nifty Midcap 50 Index 44,417 4,000 Hike amount by 5% every year. 5,000
solidate portfolio. INFLATION
Continue holding this stable mid-cap fund but
Just 7-8 schemes PGIM India Midcap Opportunities 80,874 0 monitor its performance. 0 Education For all
from different cate- expenses other goals
Stop SIPs and move corpus to PGIM India Midcap
gories are enough. SBI Energy Opportunities 2,500 2,500 Opportunities to consolidate portfolio. 0
Portfolio has some
4
ICICI Prudential Ultra Short Term 1,22,757
Stop SIPs and systematically shift corpus to ICICI
4,000 Prudential Large & Midcap Fund. 0
10% 7%
chronic laggards that
should be removed. Start SIPs of `7,000 in this outstanding large & RETURNS
ICICI Prudential Large & Midcap 0 0 midcap fund. Hike amount by 5% every year. 7,000
Thematic and sector Equity funds Debt options
Stop SIPs in this sectoral index fund. Shift corpus to
funds can be volatile. Direct stock investments 17,54,100 0 Tata S&P BSE Sensex Index Fund. 0
Diversified schemes
deliver more stable JM Flexicap Fund 3,000
Increase SIPs to `6,000 in this outstanding flexi-
3,000 cap fund. Increase amount by 5% every year. 6,000
12% 8%
returns. Fund is underperforming. Shift SIPs and corpus to
5 Mahindra Manulife Multi Cap 3,000 3,000 JM Flexicap. Hike amount by 5% every year. 0
Note from Mirae Asset Banking and Financial Shift corpus to JM Flexicap Fund to consolidate PORTFOLIOS
the doctor 14,000 0 portfolio. 0 ANALYSED BY
Services
Buy life insurance RAJ KHOSLA,
ICICI Prudential NASDAQ 100 Restart SIPs of `2,000 in this US-focused fund. In-
cover of at least `2 20,607 0 crease ampount by 5% every year. 2,000 Managing Director
Index and Founder,
crore to safeguard
MyMoneyMantra
financial goals. ICICI Prudential Technology 79,636 0 0
Sector and thematic funds can be volatile. Shift
Avoid investing in ICICI Prudential Transportation SIPs and corpus to ICICI Prudential Bluechip.
short-term debt and Logistics
11,950 2,000 0
WRITE
funds for long term.
ICICI Prudential Bluechip 0 0
Start SIPs of `5,000 in this outperforming large-
5,000 TO US
FOR HELP
In NPS, opt for ag- cap fund. Hike amount by 5% every year.
gressive allocation 6 ICICI Prudential Equity & Debt 75,262 0 Hold this hybrid fund for the long term. If you want your portfolio examined,
with at least 50% in
write to [email protected]
equity funds. Provident Fund and VPF 13,61,000
Keep contributing and don't withdraw befor retire-
20,432 ment. 20,432 with ‘Portfolio Doctor’ as the subject.
Mention the following information:
Review investments
Keep contributing to this low-cost scheme to build  Names of the funds you hold.
and rebalance at NPS (Tier I and Tier II) 3,41,029 15,741 your retirement kitty. 15,741
 Current value of the investment.
least once a year.  If you have SIPs running in any
Continue SIPs to build gold buffer as hedge against
Axis Gold Fund 39,925 3,000 inflation. 3,000 of them.
Reduce risk when
 The financial goals for which you
goal is near so that invested.
Sovereign Gold Bonds 2,64,400 0 Hold till maturity and then reinvest in gold ETFs. 0
you don’t miss the  How much you need for each
target. , financial goal.
TOTAL `65,71,229 `70,340 The goals can be reached using the mutual
funds marked in the same colour. `82,673  How far away is each goal.

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your feedback & more...

20 The Economic Times Wealth November 11-17, 2024

Readers’ response, online and in print, to ET Wealth stories has been enlightening.
We pick some that add information and perspective to our articles from previous issues.
With respect to the cover on the most these benefits could foster a stronger cul-
wanted stocks of the year, I want to
thank you for the comprehensive
Helpful insights ture of long-term portfolio building.
B.P. Sarkar
analysis. The article’s structured meth- The cover story ‘Most wanted stocks 2024’
odology ensures readers get a clear is an insightful overview of the market As a pet mother, Ratan Tata’s thoughtful pro-
picture of the promising investment dynamics, highlighting the resilience of visions for his dog, Tito, deeply resonated
opportunities. The focus on stocks like Indian equities despite global challenges. with me. I read the article ‘What are the suc-
Mphasis and ITC, supported by detailed The methodical approach to identifying the cession rules for pets in India?’ with interest.
sectoral insights, adds depth to the re- top six stocks, focusing on mutual fund pref- It worries me that Indian law doesn’t allow
port. Highlighting the risks and urging erences, RoE, and valuation metrics, is com- pets to inherit directly, leaving their care
readers to conduct their own research mendable. The inclusion of caveats about uncertain. Our pets are family and ensuring
underscores the responsible approach mimicking fund managers’ moves provides their well-being after we are gone is a genu-
ET Wealth takes in guiding investors. valuable guidance to investors. This feature ine concern. I urge the authorities to consider
Rita Verma is a must-read for anyone looking to navi- clearer succession rules for pets.
gate the complex world of stock investments. Kavita Narang
Uma Shashikant’s column ‘Why is equity Hemant Kumar
cult a non-starter?’ was interesting. Devashish Chakravarty’s article ‘Boost
While investing in mutual funds is be- easy to navigate. funds, despite challenges like massive your career with LinkedIn’ gives valuable
coming popular, it tends to attract those S. Ramakrishnasayee FII withdrawals. They keep the market tips. LinkedIn has grown popular as a
already familiar with the mutual fund in- vibrant and contribute significantly platform for networking, job hunting, and
dustry and shares. For the general public, In her article, Uma Shashikant laments through taxes, creating opportunities for professional growth. From connecting
however, time deposits with public sector that neither equity culture, nor the con- self-employment. However, the govern- with industry leaders to accessing learning
banks remain the safest investment op- cept of building a portfolio for long-term ment is penalising these investors with resources, it empowers users to enhance
tion. These require only basic banking wealth creation, has gained popularity. increased taxation. Both long- and short- their careers. Increasing awareness about
knowledge, making them accessible even It’s worth noting that the hard-working term capital gains taxes have risen, and its features could help more people unlock
to those who are not so financially savvy. middle class continues to invest in the dividends that were once tax-free up to `10 new opportunities.
Additionally, the investment process is stock market, directly or through mutual lakh, are now taxed. I think that restoring Naisha Bansal

Active vs Passive mutual funds

If you are confused by personal finance terms, jargon and calculations, here’s a series to
simplify and deconstruct these for you. In the 24th part of this series, Riju Mehta
explains the difference between active and passive investing in mutual funds.

When it comes
to investing in
Actively managed funds Difference between active
general, you can & passive mutual funds
These funds are handled by professional
either be proactive
managers, who play an active role in choosing
and involved in
and changing the securities in the portfolio. This ACTIVE PASSIVE
the assets you pick
is done in tandem with the market performance,
and manage for
changes in company fundamentals and Outperform the Achieve the
your investment Strategy
other macro-economic factors. These require market. index return.
portfolio, or you
specialised skills for analysing, interpreting
can be laidback Expense Expense
and predicting market movements and data.
and go with the ratios and ratios and
The fund managers aim to outperform the Cost
flow, not bothering management management
market benchmark and this active involvement,
too much about fee are high. fee are low.
research and expertise translate to higher fund
shuffling and
management fee. High,
changes. This Low, as fund
difference in depending
manager’s
attitudes is what Passively managed funds Risk on the fund
manager’s
skills are not
comes into play expertise.
involved.
when you are As the name suggests, these funds do not require
investing in mutual any active involvement of managers as they Funds are
Not too
funds, as the funds follow a given market index and mirror its responsive to
responsive as
are managed movements. Since the securities are held in the Flexibility
market changes
only specific
either actively same proportion as the index, these cannot be and securities
index holdings
or passively. bought and sold at will, but only to correspond can be altered
can be altered.
Here’s how they with the changes in the index. This hands-off accordingly.
differ in terms approach does not require much monitoring Equity, debt, Exchange-
of management, or specialised skills and, hence, the fund Types hybrid, gold, traded funds,
risk, cost and management fee of such funds is much lower fund of funds. index funds.
transparency. than that of active funds. GETTY IMAGES

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The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of Published for the proprietors, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110
this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held 002, Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP.
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 NG 3.7 PubDate: 11-11-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWJK1 User: saurabh.gupta3 Time: 11-08-2024 18:10 Color:

THE ECONOMIC TIMES TEACH

YOUR TEEN
EQUITY
INVESTING
P2
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THE ECONOMIC TIMES CONSIDER

STOCKS WITH
ROBUST CREDIT
QUALITY
P8
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mutual funds
The Economic Times Wealth November 11-17, 2024

Can small-cap funds continue

to show resilience?
Small-cap strength may falter under earnings pressures and high valuations, experts warn.
by Sanket Dhanorkar

A
mid a broader market down-
turn in recent months,
small-caps have shown
surprising strength. Since
26 September, large- and
mid-cap indices have tanked by 7.3%
and 6%. The small-cap gauge, on the
other hand, has only shed 2.7%. This
performance runs contrary to usual
expectations of sharper drawdowns
in small-caps when market conditions
turn sour. So have small-caps sudden-
ly turned resilient? Or is this the calm
before the eventual storm?
Over the past few years, the small-
cap basket has enjoyed a stellar run.
The Nifty Smallcap 250 index has
soared 49.5% and 90% respectively,
over the past 1 and 3 years. After
this sharp uptick, experts have been
sounding the alarm of overheating
in this space. Many have warned of
sharper drawdowns in this segment
in the event of a market correction.
GETTY IMAGES

The market correction has arrived,

but it has not played out as expected.
On the contrary, large-caps have
taken a sharper beating. Yash Sedani,
Assistant Vice President, Investment
Strategy at 1 Finance, observes,
“Small-cap stocks are regarded as the
Choppy markets EPS has seen a 7% downward revision in
the last six months, reducing the expected
to be short-lived. Investors should not
interpret this transitory strength as new-
most volatile market segment, with
mid- and large-cap stocks following in
singe large-caps 2024-25 earnings growth to just 5%, weakest
since 2019-20. Only three Nifty companies
found tenacity in this segment. Pankaj
Tibrewal, Founder and CIO, IKIGAI Asset
terms of risk. However, an interesting Typically, small-caps experience sharp- saw earnings upgrade of more than 3% for Manager, warns earnings downgrades and
shift occurred in 2024.” er declines during market corrections. 2024-25, whereas 10 witnessed downgrades price corrections in small-caps will follow.
There are various reasons for this. Return since 26 Sept (%) of more than 3%. Meanwhile, the earn- “Operating leverage is quite high for many
First, foreign institutional investors ings downgrades have not been as bad in smaller businesses, which will show up in
(FII) have sold heavily during this the small-cap space. Median profit growth the earnings. Eventually stock prices of
period. They pulled out `1.14 lakh for the 123 small-cap companies out of 250 small-caps will catch up,” Tibrewal con-
crore in October. As it turns out, FIIs that have reported earnings so far stands tends. He points out that very few analysts
are mostly invested in the frontline at a healthy 23% year-on-year. Nearly 83 track small-cap stocks, which is why the
stocks. Their stake in small-cap stocks -2.7 of these companies have reported positive earnings downgrades have not been as pro-
is comparatively modest. So the heavy Nifty earnings growth. Among these, the median nounced. The resilience exhibited so far is
Smallcap
selling by FIIs has predominantly profit growth is an impressive 39%. Tejas led by a smaller pool of 40-50 stocks within
250
hurt large-caps and a few mid-caps. Networks, Multi Commodity Exchange, the entire basket. A much larger set of
Ownership of the free float in small- -6.0 Inox Wind, Aster DM Healthcare and Amber stocks have buckled under the weakness.
cap stocks mostly rests with domestic Nifty Midcap Enterprises, among others, have put on a Experts warn that despite the recent cor-
institutional investors (DII), par-
-7.3 150 blockbuster show. “On the earnings front, rection from the highs, the broader markets
Nifty 50
ticularly mutual funds, where retail the overall earnings picture of the market are still trading at expensive valuations.
Compiled by ETIG. Database. Data as on 1 Nov.
investors continue to pour money. looks a bit weak, but some companies in the The Nifty50 is trading at a 12-month trailing
This has kept small-caps from keeling corporate earnings. India Inc’s earnings small-cap segment are displaying strong PE of 22.4 times, in-line with its long-period
over, for now. “Earlier, retail inves- show has been disappointing, resulting in earnings growth,” observes Desai. Sedani average. Meanwhile the Nifty Smallcap250
tors used to pull out from small-caps earnings downgrades. The tepid earnings contends that the mid-cap space has suffered index trades at 32 times, significantly
at the slightest hint of turbulence. growth in frontline businesses has disap- primarily as its recent surge was driven higher than the historical average. “The
Nowadays, investors put in more mon- pointed investors. Earnings of 34 Nifty more by PE re-rating rather than earnings current correction is still not steep enough
ey at such times,” remarks Rushabh companies that have declared financial growth, unlike in small-caps. The PE ratio to provide comfort on valuations so main-
Desai, Founder, Rupee with Rushabh results until 3 November have been flat on a of the Nifty Smallcap 250 rose from 28x in taining some caution is still warranted,”
Investment Services, suggesting that year-on-year basis. BPCL, JSW Steel, Coal January to 32x by October. In contrast, the says Desai.
retail investors are propping up these India, IndusInd Bank, Reliance Industries, PE ratio of the Nifty Midcap 150 increased
stocks. and UltraTech Cement have put on a weak from 27x to 44x during the same period.
Please send your feedback to
Second, the weakness in the show. Motilal Oswal, in its interim earn- However, experts warn this perceived
[email protected]
economy has started reflecting in the ings review, has indicated that overall Nifty resilience among small-cap stocks is likely

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