THE ECONOMIC TIMES MONEY

HABITS
THAT
NEVER
CHANGE
P13
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | December 26-January 1, 2023 | 24 pages | `8

BUDGET 2023
WISHLIST What investors, consumers and taxpayers
BEWARE
EITHER OR
SURVIVOR
CLAUSE
want in the coming budget. P2
P6

CAPITAL GOODS
STOCKS WORTH
BETTING ON
NOW
P8

KNOW THE
TAX HITS
ON STOCK
BUYBACKS
P10
 cover story
02 The Economic Times Wealth December 26-January 1, 2023

BUDGET 2023
WISHLIST What investors, consumers and taxpayers
want in the coming budget.
ILLUSTRATION: ARINDAM, PHOTOS: GETTY IMAGES

By Team ET Wealth
compared to the previous year.
At the same time, the financial services
Hiking 80C limit will allow higher tax savings

A
industry, investors and taxpayers are Current limit of `1.5 lakh has been stagnant for last nine years.
fter weeks of consultation seeking more tax deductions and lower
with industry bodies and fi- tax rates. “Health insurance is not just Tax savings for different limits (`)
nancial experts, the Finance a risk mitigation tool but also helps in
Ministry has started work on overall economic development by spread- TAX SLAB 1,50,000 2,00,000 2,50,000
Budget 2023-24. The Budget ing protection across a larger population.
is expected to give a big push to capital The deduction under Section 80D should 5% 7,800 10,400 13,000
expenditure, but Finance Minister be raised from the current `25,000 to `1
Nirmala Sitharaman is confident that lakh,” says Tapan Singhel, Managing 20% 31,200 41,600 52,000
the buoyancy in tax collections in 2022-23 Director & CEO, Bajaj Allianz General
can fund the additional spending. Gross Insurance. “Pension and annuity income
30% 46,800 62,400 78,000
tax revenue collections in the first half of should be made tax-free in the hands of
the year (April-September) were up 18% policyholders, or a deduction for the prin- Figures include 4% cess on income tax.
 cover story
The Economic Times Wealth December 26-January 1, 2023 03

cipal component should be allowed,” says

Satishwar B, Managing Director & CEO, Capital gains tax regime is very complex
Aegon Life Insurance. There are different rates and threshold periods for different assets.
Though it will be difficult for the gov-
ernment to give out so many tax sops, ET STCG TAX HOLDING INDEXATION
Wealth believes there are some areas that LTCG TAX RATE (%) PERIOD FOR
RATE (%) BENEFIT
LTCG
need fixing. For instance, the `1.5 lakh
deduction limit under Section 80C was last
Listed stocks,
10% for gains
revised more than eight years ago in 2014. 15% in excess of `1 1 year No
Since then, the cost inflation index has equity funds
lakh
risen by over 50%, pushing up the sum re-
quired for future goals. For many Indians, International equity
tax saving is a key driver of investments. funds Slab rate 20% 3 years Yes
But the stagnant Section 80C deduction
limit means they have not seen any reason
to save more.
Debt funds Slab rate 20% 3 years Yes
Experts feel there is a compelling
case to hike the 80C limit. Though a new Listed bonds Slab rate 10% 1 year No
deduction for NPS contributions under
Section 80(CCD1b) and a `50,000 standard Real estate Slab rate 20% 2 years Yes
deduction were added in recent years,
the deduction limit needs to be raised to 10% for gains
at least `2.5 lakh to provide some relief to REIT/InvIT 15% in excess of `1 3 years No
taxpayers. A deduction of `2.5 lakh will lakh
result in higher tax savings of up to `78,000
a year, compared to `46,800 now. “The Gold ETFs/ gold
incentive for savings has to go up. Besides, funds/physical gold Slab rate 20% 3 years Yes
there are more instruments in the 80C
basket today than there were a decade or 20%, else tax
so ago,” says Vidya Bala, Head – Research, Sovereign gold free if held till
Primeinvestor.in. Slab rate 5 years Yes
bonds maturity of 8
years
Parity in capital gains tax
The prevailing tax regime for different as-
sets is a complex web, with multiple rates
and different rules for various asset classes. Term plans need budget push
For instance, long term capital gains from “There should be a
Traditional plans have very high premiums and offer very low cover.
listed stocks and equity funds are taxed at separate bucket for life
10% without indexation after one year. But
unlisted stocks and foreign equities are
insurance policies. A GUARANTEED TERM PLAN
taxed differently—shares held for more separate section for SAVINGS PLAN

than 24 months are considered long-term term insurance policies Tenure of plan 20 years 30 years
and taxed at 20% without indexation. would be helpful given
Meanwhile, gains from international equity 12.22 lakh 1 crore
funds qualify as long term only after three
the huge protection gap Insurance cover (`)

years and are taxed at 20% after indexa- in the country.” Annual premium (`) 1.2 lakh 11,352
tion—the same as non-equity funds. But VIGHNESH SHAHANE
listed bonds are again treated differently MANAGING DIREC TOR & CEO,
AGE A S FEDER AL LIFE INSUR ANCE
Cover as multiple of premium 10.18 times 880 times
from bond funds. Capital gains from listed
Premiums for Max Life Guaranteed Savings Plan and Online Term Plan.
bonds are regarded as long term if held for
over one year and taxed at 20% without in-
dexation. In gold, gold ETFs and gold funds
are taxed differently than sovereign gold Separate
bonds. In real estate also, REITs are taxed “Pension and annuity
differently from physical property.
income should be made
deduction for
Experts say the budget should bring
parity in tax rules. At the very basic tax-free in the hands plans with
level, tax rates and holding period criteria of policyholders, or 200x cover
within each asset class should be uni- a deduction for the Even plans bought by older people would be eligible.
form. Taxation of high-value Ulips with
principal component
annual premium of more than `2.5 lakh
(completely tax-free earlier) only partially should be allowed. This AGE OF BUYER 30 YEARS 40 YEARS 50 YEARS
brought them at par with listed stocks and will encourage purchase
Annual premium for life
equity funds last year. But Ulips still enjoy of pension plans.” cover of `1 crore 11,352 17,907 42,476
preferential treatment. Juzer Gabajiwala,
SATISHWAR B.
CEO, Ventura Securities, questions, MANAGING DIREC TOR & CEO, Cover as multiple of premium 880 times 558 times 235 times
“Why should a switch transaction in a AEGON LIFE INSUR ANCE
mutual fund incur tax liability even as Premiums for Max Life Online Term Plan.
similar switch in Ulips is tax free?” More
anomalies persist. Amol Joshi, Founder,
PlanRupee Investment Services, argues, there is a variation in risk profile depend- for the short term and equities are ideal asset classes.
“Within asset classes, wherever one prod- ing on the instrument. Maintaining that for the long term. But the holding period The tax on long term capital gains from
uct is given preferential tax treatment over distinction with differentiated tax rules is criterion for the two asset classes encour- equities introduced two years ago was long
another, it may not be in investor’s interest. apt,” says Bala. ages quite the opposite. Joshi feels that the overdue. As is evident from the market
One should not have to deal with three dif- Further, some feel that tax rates across varied holding period thresholds (ranging mood, it has not dampened the investors’
ferent set of tax rules for the same vehicle.” asset classes also need to reflect commonly from 1, 2 and 3 years) should be done away sentiment. Even so, there is a need to give
However, some say the disparity in tax accepted financial wisdom. For instance, it with and a common holding period of say, equities the benefit of indexation on long
rules is needed. “Even within asset classes, is said that bond investments are best held two years, should be introduced across all term capital gains. Indexation adjusts the
 cover story
04 The Economic Times Wealth December 26-January 1, 2023

purchase price of the asset for the inflation
rate, reducing the taxable gains and there-
fore, the actual tax liability. The `1 lakh
exemption on long term gains from equities
somewhat compensates equity investors,
but that only helps small investors. It is a
better idea to bring in the indexation ben-
efit and remove the exemption.
Deduction for pure term plans
Life insurance is a popular tax saving in-
strument because it is sold that way by in-
surance agents. But given the large crowd
of options under Section 80C, the industry
wants a separate deduction for life insur-
ance. “Our paramount interest has always
been to insure more citizens and ensure
they have sufficient coverage. Our efforts
will be augmented if the government in-
troduces a separate tax deduction limit
exclusively for life insurance premiums,”
says Tarun Chugh, Managing Director and
CEO, Bajaj Allianz Life.
As mentioned earlier, for many inves-
Health insurance
costs are up …
ANNUAL PREMIUM
tors, tax savings is the primary factor
defining investment choices. A separate
deduction will certainly push more people
to buy insurance, but this deduction should
be only for pure protection term plans. Just
like tax benefits under Section 10(10D) are
available only if the cover is 10 times the an-
nual premium, the new deduction should
be given only for policies where the cover is
at least 200 times the annual premium. “A
separate section for term policies would be
helpful given the huge protection gap in the
country,” says Vighnesh Shahane, MD &
CEO, Ageas Federal Life Insurance.
Benefits for pension products
The insurance industry also wants more
tax benefits on pension products. High on
the wishlist is something that has the po-
tential to radically change the way annuity
products are seen in India. “The pension
premium is already paid through taxable
income, so pension should be made tax-free
in the hands of the customer. This will
increase the penetration of pension and
make India a pensioned society, especially
since we don’t have any social security
cover,” says Shahane of Ageas Federal Life
Insurance. “Pension and annuity income
should be made tax-free in the hands of
policyholders, or a deduction for the princi-
pal component should be allowed,” concurs
Satishwar B.
But making annuity tax free will burn a
big hole in government finances. Instead,
a more feasible option would be to increase
the deduction under Section 80CCD(1b)
from `50,000 to `1 lakh. The NPS has seen
massive inflows since the new tax saving
option was introduced in 2016. According
to a Crisil study, the AUM of the scheme has
registered annual growth of 33.7% in the
past five years. Insurance companies also
want their pension plans to get the same
tax benefits as the NPS. “There could be
a separate bucket for pensions of `50,000-
75,000 to level the playing field with NPS,”
says Shahane.
“Health insurance helps
in overall economic
development. The
Health insurance deduction
The surge in health insurance costs and
the need for higher covers after the pan-
demic mean the current deduction limit
of `25,000 under Section 80D is woefully
inadequate. As per a LocalCircles survey
between August 2021 and August 2022,
among 10,000 respondents, nearly 38% saw
a premium rise of over 50% in a year, while
24% experienced a 25-50% increase. For
senior citizens, this amount almost dou-
bled in a year.
Besides, the premium cost is higher in
metros and tier 1 cities, as is the cost of hos-
pitalization, which necessitates a higher
cover. So, while a cover of `5-10 lakh would
have been sufficient for an individual in a
metro two years ago, he will now need to
have a `15-20 lakh cover.
“Increasing the limit to claim tax de-
ductions under Section 80D will enhance
affordability and encourage more people
to opt for health insurance for their fam-
ily and elderly parents,” says Krishnan
Ramachandran, MD and CEO at Niva Bupa
Health Insurance.
More sops for home buyers
Real estate is reviving, leading to an in-
crease in housing prices. This, along with
the possibility of an increase in interest

Apr 2021 deduction under Section rates of home loans, is making it difficult
80D should be raised for many people to buy a house. To give a

`8,265 Rise (%)

from the current `25,000
boost to them, especially first-time home-
buyers, the government should offer some
to `1 lakh.” tax sops. One way to do this is to increase
Dec 2022 46.2% TAPAN SINGHEL
MANAGING DIREC TOR & CEO, BA JA J
the current tax rebate of `2 lakh on home
loan interest repayment under Section 24
`12,088
ALLIANZ GENER AL INSUR ANCE
to at least `5 lakh.
“Home loans are usually large loans as
Premiums for Care Health Insurance for a even a reasonably-priced house costs more
30-year-old male in Delhi than `50 lakh. As almost two-third of your
loan repayment goes towards paying off

… and also the “Borrowers pay way

need for it more than `2 lakh
Pre-pandemic cover needed interest on home loans
in metro/tier 1 cities in 2019 in a year. The deduction
should be enhanced to `5
`5-10 lakh lakh to give some relief
to home buyers.”
Post-pandemic cover needed
VIVEK R ATHI
in metro/tier 1 cities 2022 DIREC TOR - RESE ARCH,
`15-20 lakh
KNIGHT FR ANK INDIA
the interest in the first few years of the
loan, borrowers pay way more than `2 lakh
interest on loans every year. Enhancing
the exemption to at least `5 lakh can help to
reduce the cost of purchase for home buy-
ers,” says Vivek Rathi, Director Research,
Knight Frank India.
The Budget should also consider revis-
ing the price bandwidths for homes to qual-
ify as affordable housing. “A price band of
`45 lakh or below is far too low in a city like
Mumbai, where it should be increased to
`85 lakh or more. In other major cities, the
qualifying price band should be increased
to `60-65 lakh,” says Anuj Puri, Chairman,
Anarock. He suggests that the government

Home loan customers need relief can also give a push to affordable housing
by giving higher rebates to home loans tak-
As property prices soar and loan amounts get bigger, deduction of `2 lakh on the interest is not enough. en for houses that cost less than `85 lakh.
Here’s the math for a `50 lakh loan at 9% for a borrower in 30% tax bracket. “The government can make a classifica-
tion index and then assign an affordability
BALANCE INTEREST UNCLAIMED TAX SAVINGS IF section, taking into account the differen-
LOAN PAID PER PORTION OF DEDUCTION HIKED
TENURE YEAR (`) INTEREST (`) TO `5 LAKH tial in the average price in urban cities
along with the cost of living there. This
will be easy to implement and will give a
19 years 4,45,498 2,45,498 76,595 boost to the mid-segment housing,” says
Samantak Das, Chief Economist and ED,
15 years 4,04,798 2,04,798 63,897 Research and REIS, JLL India.

12 years 3,63,121 1,63,121 50,894

Please send your feedback to
7 years 2,63,158 63,158 19,705 etwealth@timesgroup.com
 cover story
The Economic Times Wealth December 26-January 1, 2023 05

5 ways to make your

personal budget work
Making a budget is easy, but adhering to it is hard. But with some
simple tweaks, you can ace all these woes with ease.

By Ira Alok Puranik Let your budget

D
o you find it im- breathe free
possible to stick
Do not treat your budget
to the budget you
as set in stone. That is a
so meticulously surefire recipe to losing your
chalk out? Apart grip over it, and finally, your
from unexpected situations, patience to persist with it.
your budget goes awry owing Let the budget evolve as
to bigger than planned outlays you go through every stage
on shopping, vacations, par- of your life. Your income
ties, eating out, etc. And once and life goals at any given
the budget goes off track, it point should guide your
feels difficult to find a way savings and expenses. As
back. But a few simple tweaks Pune-based financial planner
can help you stay on top of Sanjeev Dawar asserts, save
your household budget. Here and spend in line with how
are five ways you can improve you visualise your long and
your commitment to your fi- short-term financial aims.
nancial plan in the next year: As your income grows, your
lifestyle expenses are bound
to go up. Your household
expenses after having a
second child will shoot up.
You may intermittently incur
some unforeseen expenses
Make your budget, related to health, travel or
your own! such. At such times, don’t
stress over your stretched
The internet is full of thumb rules you budget. Adjust and adapt to
can adopt to create a budget. There the circumstances, and plan
is a ‘50-30-20’ rule, ‘save at least to rein in spends when the
33% of your income’ rule, and many situation permits.
more. But in the end, your budget
should reflect your unique needs
and priorities, rather than echo some
general financial guidelines. Don’t fix
arbitrary limits you cannot work with Identify and cut the bloat
sustainably. These can at best serve
as a starting point for you to plan Eating every day is essential to survival, but a daily take-out is not, right?
Track, track,
your finances. If your present income That is the difference between a need and a want. A healthy, realistic track
is modest, it is likely that expenses budget identifies and accounts for both. Make separate provisions for
will take a bigger bite. While making your basic necessities and indulgences. Get a firm grip over the latter. Finally, if you want your
a conscious choice for savings, allow You don’t realise it, but the little things add up to quite a hefty sum. budget to work, monitor
for some intermittent fluctuations. In The regular Zomato or Swiggy takeaways bring your favourite dishes to and track your progress
the same vein, as your income grows, your doorstep, but eat away a chunk of your income. The multiple OTT regularly. A periodic review
and your capacity to save rises, don’t subscriptions may occasionally entertain, but cause a leak in your budget. and reallocation of your
be married to some ‘ideal’ savings Monitor these spends like a hawk and scale back reasonably if needed, savings and expenses can
number you picked up earlier. If your without depriving yourself. After all, it is necessary to let your hair down, serve you well. This is
situation allows, go beyond that once in a while! As Sonesh Dedhia, a financial planner, points out, “It necessary to identify what
number. helps to have a separate kitty for all your major wants. Plan separately is working for you, and what
for your vacations and purchases beyond a certain limit, so that you don’t is not. Tracking every rupee
overshoot the determined amount.” spend is not necessary, as
long as you have a sense
Involve the family of broader outlay on
different items. You may
If your household budget is to truly work, you need to involve your loved ones in every part of the process. Bring every use spreadsheets to keep
member of your household along as you identify and plan for various expenses. For instance, sit together and identify the track of certain expenses.
size of the pot for family activities like weekend getaways, movies, vacations and eating out. Take the kids into confidence Nowadays, there are mobile
and show them the trust to work within the contours of your budget. Reward them with fun activities or a top-up on their applications like Wallet,
pocket money for sticking to the planned outlay. If someone is straying far, try getting them on the same page with a light Jupiter, Axios and more that
touch. Further, it is critical that you keep your spouse in the loop regarding all your investments. you can use to do this.
 review preview
06 The Economic Times Wealth December 26-January 1, 2023
NEWS IN BRIEF
IDBI Bank pensioners
Pensioners of IDBI Bank have
written to the finance ministry
seeking clarification on whether
their pension and health ben-
efits will continue under a new
owner even as the government
weighs various options to at-
tract investors. The IDBI Elders
Forum, a voluntary group of re-
tired IDBI Bank employees, said
data room set up for investors
does not contain any informa-
tion about the pension and VHS
offered to retired employees.
Rozgar mela
Lecturers, income tax inspec-
tors and multitasking staff
were among 1.47 lakh recruited
through ‘Rozgar Melas’ or
employment strategy to fast-
track the meeting of job seekers
and employers. Rozgar Mela
events are being held across the
country and so far about 1.47
lakh new appointees have been
inducted.
Baroda BNP NFO
Baroda BNP Paribas Multi
Asset Fund collected `1,234
crore during the NFO period.
This is the second new fund of-
fered by Baroda BNP Paribas
AMC in the last 9 months.
Beware ‘either or survivor’ clause in FDs
Despite RBI mandate, FD account holders face problems in premature withdrawal on death of joint holder.
by Rajat Dutta
B
hopal-based Surajmal Tewari
used to take care of his aged
father, while his brothers
lived in nearby towns. He had
invested his own money in bank FDs
jointly with his father, and his account-
ant was the nominee. When his father
died intestate, Tewari tried to pre-
maturely withdraw money under the
‘either or survivor’ clause. However,
he found that his siblings had served a
legal notice, followed by a stay from a
district court, registering their stake to
the father’s FDs and restraining with-
drawals. Since the documents listed his
father as a joint holder, the bank was
bound by the court order.
This is a problem being faced by many
FD joint holders. Fixed deposit forms
across banks have standard operating
instructions, including ‘either or survi-
vor’, and some banks also have ‘former or
survivor’ and ‘later or survivor’ clauses.
Depositors are nudged by bank staffers to
opt for the ‘either or survivor’ clause, the
understanding being that if a joint holder
dies, the survivor will get the proceeds.
This, however, is misleading.
As per the RBI circular dated 9 June
High demand for
home, vehicle loans
Huge increase in retail credit despite high interest rates.
Despite rising interest rates, retail credit in
India witnessed a significant increase over
the past year, with outstanding personal loans
rising to whopping `37.7 trillion as of October
2022, BankBazaar said in a report. Of the `37.7
trillion outstanding personal loans, housing ac-
counted for 48.43% or `18.25 trillion and vehicle
loans 12.24% or `4.6 trillion.
Other personal loans accounted for 26.26% or
`9.9 trillion. Credit continues to grow, despite
interest rate hikes and macro-economic pres-
sures due to inflation and the Russia-Ukraine
war. For instance, home loans grew 16 % y-o-y,
while car loans grew 20%y-o-y. As per RBI data,
home loans grew 8.4% between March and
October, faster than the preceding six month
period during which there were no hikes.
“If demand for housing finance is slowing,
it is yet to be seen. The home finance segment
makes up nearly half of the bank retail credit
market. At the current rate, the segment is
likely to grow to `20 trillion and hold its share
through the new year as real estate continues
its post-pandemic upswing,” said the report.
The report titled “Moneymood Retail Credit
Trends”, said bank personal loans grew 20% to
`37.7 trillion, y-o-y as on October 2022, signaling
a robust post-pandemic recovery. Even though
2005, claimants/ legal heir(s) of FD
joint account holders can follow a process
to recover the amount even if there is no
nomination. Besides, RBI campaigns spec-
ify that ‘in case of a joint deposit account,
the nominees’ right arises only after the
death of all account holders’. In case of ‘ei-
ther or survivor’, ‘former or survivor’ and
‘later or survivor’, one of the joint holder(s)
has to pass away to attract the operation
instructions. In ‘former or survivor’, the
loans against FD, gold, shares, and bonds make
up a small share of the retail credit market, it is
the fastest growing segment. As interest rates
rose, Indians borrowed smartly by pledging
assets to secure lower interest rates. Loans
against FDs have risen 54% since the end of
2020, while gold loans have risen 58% in the
same period. There’s no stopping the demand
and financing for big-ticket items such as elec-
tronics and vehicles. Consumer durable loans
grew 142% over 2020 and 57% since 2021.
—Sunaina Chaddha
first joint holder becomes the sole owner if
the second joint holder dies, and in case of
‘later or survivor’, the second joint holder
becomes the sole owner on the demise of
the first joint holder.
The problem arises when the FD
holder(s) wants to withdraw prematurely
and one of the joint holders is incapacitated
or passes away. This is because for pre-
mature withdrawals, signatures of all
joint holders are required.
As per the RBI, if the account
was opened with the survivor-
ship clause, the payment of
the balance to survivor/
nominee of the de-
ceased deposit account
holder represents a
valid discharge of bank’s
liability. However, banks
are not processing claims
of surviving joint holders. The
RBI, in a preamble to its notification
dated 14 November 2011, clarified that
if any of the joint holders died and there
was a need for premature withdrawal, the
concurrence of legal heirs of the deceased
joint holder was required. This, however,
comes with a caveat that banks can allow
premature withdrawals provided they
have taken a specific joint mandate from
Upskilling rush
in smaller cities
There is an an almost 50% surge in
demand for upskilling in tier 2 and 3
cities, finds new data. This increase
can be attributed to several factors in-
cluding the need to remain relevant in
the changing professional landscape,
coupled with the widespread avail-
ability of internet services and the
popularity of e-learning courses.
Growth of sectors like supply chain
management, full stack development,
financial services, and cyber security
has fuelled demand for skilled profes-
sionals, finds a report by professional
education firm Imarticus Learning.
Owing to the hybrid model of work-
ing and increase in digital penetra-
tion, fresh talent from tier 2 and 3
cities is opting for upskilling courses.
The overall student enrollment stands
at 45,000 in the upskilling courses of-
fered by the platform in the prescribed
period. —Brinda Sarkar
the depositors for the said purpose.
As per its 16 August 2012 circular,
the central bank aligned the terms on
premature withdrawals, as stated in its
4 November 2011 notification, to be incor-
porated in its circular dated 9 June 2005,
and asked the banks to include specific
joint mandate from the depositors for the
purpose. However, the FD forms of major
private and public sector banks have not
incorporated the required clause and no
bank has taken adequate measures to
make customers aware of the requirement.
If the surviving joint holder waits till
maturity, he can claim the proceeds only
by submitting the death certificate of the
deceased joint holder. If, on the date of ma-
turity, the surviving joint holder is also de-
ceased, the nominee becomes the claimant.
Legally, nothing changes after the demise
of a joint holder and the surviving holder
receives the money on maturity. So, what is
the rationale for banks to seek consensus
from heirs of the deceased joint holder only
in case of premature withdrawals?
THE AUTHOR IS
FOUNDER & INITIATOR,
INHERITANCE NEEDS
SERVICES
 stocks
08 The Economic Times Wealth December 26-January 1, 2023
Improved sector fundamentals
boost for capital goods stocks
Increased capex, falling commodity prices and robust order books to push performance.
by Sameer Bhardwaj
T
he capital goods sector’s per-
formance has been resilient in
2022, supported by increased
investments. While govern-
ment investments are aimed at
strengthening infrastructure, private in-
vestments are fuelled by increased capac-
ity utilisations following the pandemic.
The China one plus policy is likely to
increase investment opportunities in
India. Indian companies can exploit such
opportunities due to low-cost manufactur-
ing and availability of skilled labour. Also,
decline in commodity prices will support
margins and profitability going forward.
The BSE Capital Goods index has deliv-
ered over 20.1% year-to-date (YTD) returns
compared to 5.3% by the Sensex. In the sec-
ond quarter, the 24 companies of the BSE
Capital Goods index reported an aggregate
PAT growth of 29.6% y-o-y compared to
constituent stocks of the BSE Sensex in-
dex, which reported 15.2% y-o-y growth.
Most large capital goods companies are
trading above or close to consensus target
prices compiled by Bloomberg. Analysts
expect the cash flow cycle of sector stocks
GETTYIMAGES
to improve, which will lead to valuation
rerating. Reports from Sharekhan, Credit
Suisse and BoB Capital Markets are bull-
ish on the sector’s growth prospects.
Initiatives like Make in India,
Atmanirbhar Bharat and PLI schemes
are expected to boost investments across
sectors. “The government has maintained
its strong capex momentum during
April-October 2022; capex growth stood
at around 61% y-o-y and 23% on a 4-year
CAGR basis. Overall, 55% of the budgeted
capex has been carried out in the first
seven months of 2022-23 compared to 43%
last year,” says a recent Emkay report.
Increased investments have supported
the order books of capital goods compa-
nies, helping achieve the highest-ever or-
der backlog. Order inflows have grown in
the range of 19-21% y-o-y in the first half of
2022-23, says Yash Doshi, Senior Manager
Research at Research & Ranking.
The BoB Capital Markets report says
India is on the verge of a new capex cycle
and plans like National Infrastructure
Pipeline and Gati Shakti will ensure the
continuity of the capex cycle by debottle-
necking project approvals and funding. It
states that if only 50% of the NIP fructifies,
it will imply a massive annual capex injec-
tion of `11 lakh crore over next five years.
A report from Credit Suisse sees the in-
vestment cycle strengthening based on the
data on order inflows, capital goods im-
ports, capacity utilization and short-cycle
revenues of machinery and consumables.
It sees manufacturing, government
spending on infrastructure and energy
transition as the key drivers of the cur-
rent investment cycle.
A Sharekhan report sees average rev-
enue visibility of around 3 years for its
coverage universe supported by robust
order books. It expects strong inflows
for most of its capital goods coverage
universe due to its diversified and robust
order pipeline. Orders expected from sec-
tors like infrastructure, hydrocarbon,
power generation and distribution, de-
HINDUSTAN AERONAUTICS
12-month Current 1-year target
forward PBV price (`) price (`)
19.7 2,657 3,141
THE DEFENCE PSU reported strong
operating performance in the second
quarter supported by a higher share of
repair and overhaul (ROH) sales in the
revenue. The management has guided
strong order inflows and doubled its
ROH sales guidance for the 2022-23
to 2024-25 period. Large-scale orders
KEI INDUSTRIES
12-month Current 1-year target
forward PBV price (`) price (`)
29.2 1,508 1,757
ANALYSTS’ RECOMMENDATIONS
POTENTIAL
UPSIDE BUY HOLD SELL
16.46% 15 2 0
THE ELECTRICAL WIRES and cables
manufacturer reported in-line revenue
numbers in the second quarter and post-
ed 19% y-o-y growth. The performance
was supported by growth across most
product categories (LT cables, HT cables,
house wires and stainless steel wires).
Factors like pick up of spending in
infrastructure (railways, metros, renewa-
bles, highway, airports and power T&D),
capex announcements in various sectors
(steel, cement, fertilizer and refinery
sectors), leading position in institutional
cables, expansion of dealer base, robust
order book (`3,000 crore), healthy cash
position and focus on increasing the re-
tail business are likely to drive the long
term growth.
BHARAT ELECTRONICS
1-year target
12-month Current
forward PBV price (`) price (`)
fence as well as from private sectors such
as cement, petrochemicals and refiner- 26.1 101 118
ies. Also, emerging sectors such as data
centers, renewable energy and process POTENTIAL ANALYSTS’ RECOMMENDATIONS
automation are expected to aid order in- UPSIDE BUY HOLD SELL
flows going forward.
Analysts prefer L&T, ABB India,
16.09% 27 2 2
Siemens, Bharat Electronics, KEI
Industries, Hindustan Aeronautics, AIA THE AIRSPACE AND defence electron-
Engineering and Va Tech Wabag in the ics company reported in-line numbers
capital goods space. Following are the in the second quarter of 2022-23. Its
three companies that are currently of- healthy order book of `52,800 crore at
fering double-digit share price potential the end of the second quarter provides
over the next one year. strong revenue visibility. The company
is a beneficiary of the government’s
strong indigenisation thrust in the
defence sector. Strategy to diversify
into non-defence areas (EV, metro
POTENTIAL ANALYSTS’ RECOMMENDATIONS and healthcare equipment), focus on
UPSIDE
BUY HOLD SELL increasing exports share and healthy
18.21% 9 0 1 execution capabilities are the key
growth catalysts.
in manufacturing aircraft/helicopters,
sustained growth in ROH, debt-free Current price as on 20 December 2022. BSE
status, strong cash position and healthy Sensex 12M forward PE: 22.6 times, BSE
return rations are the key catalysts. An Capital Goods index 12M forward PE: 34.3
Elara Capital report says the rising share times. Source: Bloomberg.
of indigenisation and unexplored export
opportunity in the aircraft and helicop- Please send your feedback to
ter industry warrant a stock re-rating. etwealth@timesgroup.com
 guest column
The Economic Times Wealth December 26-January 1, 2023 09

Learnings from the

Infosys legends
On its 40th anniversary, the contrast between Infosys and today’s modern
‘tech’ businesses could not be starker, says Dhirendra Kumar.

T
he 40th anniversary of Infosys is
being celebrated. Every Indian
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH with a historical perspective
on what has happened in this

money country over these four decades

understands the significance of Infosys. The

mysteries business was born in another India, which

hardly exists anymore, and this company
has played an outsized role in creating the
new India. This impact is not just in terms of
the business itself and the economy, but the
psychological impact of how this business
was founded, how it grew, the kind of people
Today, we’ve who founded it, its actual business activ-
created a business ity and much else. Nothing like it existed
and investment in old India, and nothing like it could have
environment where existed. That old India was highly fine tuned
to ensure that entrepreneurs of the Murthy,
companies that have
Nilekani, et al. kind would fail.
never made a profit I won’t labour these points any more
and appear to be because everyone is talking about them.
incapable of doing Instead, I think as savers and investors,
so are bloated and we should pay attention to something that
inefficient. Nilekani said during the 40th anniversary
celebrations, “What worries me is, do they
GETTYIMAGES

want to build an institution? I think the hard

part is to build an institution, it’s a marathon

The past is a guide to future,

but it tries to fool you. In- are bloated and inefficient.
Why this happened is, of course, well
stead of listening to today’s understood by those who know the venture
funding business, which Nandan Nilekani
cheerleaders, listen to those does better than anyone else. A business that
who succeeded yesterday. succeeds by growing big over decades (as
Infosys did), or succeeds modestly, is useless
succeed is survivorship bias of the most
misleading kind.
The past is a viable guide to the future,
but it tries very hard to fool you. Instead
of listening to today’s cheerleaders, listen
to those who succeeded yesterday.

race. Today we (Infosys founders) are as op-
timistic and work as hard as 40 years ago. Do
these guys have the stamina to play the long
game? That’s what worries me because too
much money is a curse.”
To some people that would have sounded
like the kind of complaint that older people
tend to make about young people. However,
Nilekani went on to explain his point, which
was that he did not understand companies
being given money to burn, “Once you lose
respect for capital, for frugality, lose respect
for managing your expenses, then the game’s
over,” he said.
Respect for capital and respect for frugal-
ity. That’s a most unusual concept today. It
sounds crazy from the perspective of normal
times, but many, many businesses spend
years in a situation where practically speak-
ing, there is a target for spending. In a nor-
mal business environment, companies that
have grown old and profitable sometimes get
bloated and cost-inefficient. Now, we’ve cre-
ated a business and investment environment
where companies that have never made a
profit and appear to be incapable of doing so
to the global funding ecosystem. All other
pathologies are side effects of this disease. Please send your feedback to
Sometime last year, there was a trend of etwealth@timesgroup.com
people juxtaposing the following two ‘facts’
on investing-related social media: In 1990,
someone offered to buy Infosys for `2 crore.
The company is worth `6.5 lakh crore today.
Two: In 2021, Info Edge’s `4.6 crore Zomato
investment became `15,000 crore. Many peo-
ple concluded that these two facts tell them
the same thing about equity: over a long
period, equity investments can give gigantic
gains. Not just that, they feel they can draw
some lessons for their investments.
Nothing could be further from the truth.
You are operating under a gigantic survi-
vorship bias when you look back and see
how amazing the Infosys journey has been.
Hundreds or thousands of businesses would
have been founded at the same time, and
many failed and disappeared. You don’t
know about the failures. Of the new-gener-
ation businesses that you see today, many
will fail. However, you don’t yet know which
ones. So to conclude that Infosys succeeded,
the new generation of businesses will also
 taxation
10 The Economic Times Wealth December 26-January 1, 2023

Know tax implications

of stock buybacks
Though more tax efficient than
dividends, buyback offers do not entirely
exempt stockholders from the tax axe.

by Ira Alok Puranik

I
If 2021 was the year of IPOs, 2022
was the year of buybacks. More
than 50 companies announced
buybacks worth `37,519 crore
during the year. After TCS and
Bajaj Auto, the latest to join the band-

GETTYIMAGES
wagon has been One97 Communication,
Paytm’s parent company. Last week, it
announced an `850-crore open market
buyback, with a maximum price of `810
per share. Earlier this month, Infosys
also rolled forth its `9,300 crore open- The top buybacks of the year Taxability in case of
market buyback. open-market buyback
On the face of it, buybacks may seem Type of Offer period Total buyback
lucrative to shareholders. Since the deci- Company
buyback (2022) amount (in ` crore) Long-term Short-term
sion affirms the company’s underlying
Tata Consultancy Services Tender Offer 23 Feb-9 Mar 18,000 capital gain capital gain
faith in its potential, markets respond
(Not applicable for (15%+cess)
positively. Share prices move up in the
ACC Open Market 26 Aug–9 Sep 11,259 gains <`1 lakh) `7,500+cess
short run. The company is seen as cash-
rich, looking to bolster shareholder val- 7 Dec 2022-6 Jun Nil
Infosy Open Market 9,300
ue in absence of good investment oppor- 2023
tunities. It also boosts popular investor
metrics like earnings per share (EPS), Bajaj Auto Open Market 4 Jul-10 Oct 2,500 This is one reason why the Securities and
given that buybacks reduce the number UPL Open Market 7 Apr-20 May 1,100 Exchange Board of India (Sebi) wants to
of available shares in the market. pull the plug on the open market buyback
However, there are tax implications GAIL (India) Tender Offer 22 Apr–25 May 1,082 route by April 2025.
shareholders cannot ignore. Noida-based chartered accountant Yatin
One97 Communications 21 Dec 2022-19
Buybacks happen either through the Open Market 850 Vashistha explains, “Since the exchange
Limited (Paytm) Jun 2023
direct tender offer or the open market. does not distinguish between an investor’s
In the tender offer route, individual Triveni Engineering and buyback trades and other regular trans-
Tender Offer 16 Dec 16-22 Dec 800
stockholders incur no tax liability on Industries actions, all transactions are subjected to
gains from the buyback. A tender offer long-term and short-term capital gains tax
gives you the option to sell the shares Zydus Lifesciences Tender Offer 23 Jun–6 Jul 750 as applicable.”
directly to the company, your entire MOIL Tender Offer 28 Jan-10 Feb 694 Again for instance if Sigma Co. chooses
stakeholding, or a portion of it, at a price the open-market route, there will be dif-
higher than market value, within a spe- ferent tax implications for you the share-
cific time window.
However, the company undertaking
Taxability in case of a tender offer holder, who has earned `50,000 from the
buyback. If the shareholder sells his stock
such repurchase has to pay a 20% tax, Issue Distributed Total within 12 months of purchase, the gains
Number Buyback Tax
plus surcharges on the distributed in- Entity Price Income per Distributed will be treated as short-term capital gains
of shares Price (A) ` payable
come, which is the difference between (B) ` share (A-B) ` income ` and taxed at 15%. If held for more than 12
the buyback and issue prices. Investor 100 600 100 500 50,000 Nil months, gains will be long-term capital
For example, you hold 100 shares of gains. There is no tax on gains up to ` 1
20% i.e
Sigma Co, which wants to repurchase Company lakh, but beyond this threshold, these are
`10,00,000
10,000 shares at a market price of `600 (Sigma 10,000 600 100 500 50,00,000 taxed at 10%.
(+surcharge,
per share. The issue price was `100 Co.) For some investors, the flurry of buy-
cess)
per share. On the proceeds of `50 lakh back offers is an ideal opportunity to
the company will have to pay 20% tender offer.” does not change for corporates, the income harvest tax losses. This involves selling at
buyback tax, plus other applicable from buyback becomes taxable in the a loss and adjusting those losses against
charges. But your income from the buy- The double-taxation whammy hands of shareholders. capital gains from other investments.
back—`50,000—will remain tax-free. The picture changes with the open mar- In the open market route, the anonymity Unadjusted losses can be carried forward
Mumbai-based chartered accountant ket route, which most companies choose. of buyers makes it difficult to gauge wheth- for up to seven financial years.
Nitesh Buddhadev says this route is ad- “That’s when things get tricky,” says er a trader’s buying/selling is part of any
vantageous to investors. “This income Buddhadev. Here, companies purchase buyback activity or not. This means that
Please send your feedback to
is tax-free in the hands of shareholders their stocks through exchanges over an both the company and the shareholder end
etwealth@timesgroup.com
so investors stand to gain more from a extended period. While the tax treatment up taxed for the gains from the transaction.

I inherited some equity shares from my father in
July 2022. These were purchased 30 years ago
though I don’t know at what price. I want to sell
these shares, and the current market value would
be `20 lakh. Will this be considered as LTCG or
STCG? How should I calculate capital gains and
tax on this? My net taxable income is `5 lakh and
there is no tax liability for 2022-23.
In case of gift or inheritance, period of holding
of the original owner is added to calculate the
period of holding. Therefore, any gains on this
personal finance. If you have a query,
equity will be long term capital gain (LTCG). As
per grandfathering clause, the cost price of the
listed equity will be higher of the two (i) actual
cost or (ii) lower of selling price or highest price
quoted on stock exchange on 31 January 2018.
You need a list of these equities and have the
31 January 2018 values of each from the pub-
licly available stock market data, preferably
from NSE or BSE. As per (ii) in the formula, this
or selling price will serve as your cost price, if
we assume that most equities have only gone
up in the last 30 years. This is the best available
course of action and the assessing
officer may seek explanation
on the same. Once the LTCG
is calculated, it will be taxed
at 10%.
Shubham Agrawal
Senior Taxation Advisor, TaxFile.in
I am 22 and earn `4.1 lakh per annum. I want to do my
postgraduation in 2024, which will cost `40 lakh. My
current investments include an FD (`1 lakh), RD
(`12,000 per month) and investments in mutual funds
(`6,000 every month in diverse schemes). I do not have
to contribute towards basic expenses like rent or food.
I wish to buy a house by the time I am 30. How should I
invest my money in the short and long term, and how
should I manage my expenses to achieve my goals? Is it
wise to take an education loan or shall I use my ances-
tral property as a payment for masters?
An education loan will allow you to fund your stud-
ies without liquidating existing assets. To reduce
the loan burden, you can do one of the two things:
continue to pay the interest on the loan throughout
the time you would be studying or start repayment
on the loan without opting for a moratorium. This
will help bring down the cost and close the loan
faster. Once you start working again, outline all
your financial goals for the near and short term,
and start savings towards each separately. Calcu-
late how much you can set aside from your salary
towards prepaying your education loan. You can
deposit this amount every month in a recurring de-
posit and use it to make a prepayment every year.
Set aside a portion of your income towards other
goals as well, such as buying a house or anything
else. Select the instrument based on the length of
the investment and your risk appetite. For in-
stance, you may want to consider FDs and RDs for
investing funds you will need in the next year or
so. You can consider investing in mutual funds for
money that you would need in 5 years
or more. It may be best to focus on
clearing your existing liabilities,
such as education loan, before
investing in new assets.
Adhil Shetty
CEO, BankBazaar
QA
your queries
&
The Economic Times Wealth December 26-January 1, 2023 11
I am 75. I retired 15 years ago
and do not get a pension. My
wife and I have two children,
both employed. We have two
flats from which we earn
`40,000 in rent. We are covered
by medical insurance by our son.
Our panel of experts will answer We have investments in stocks
and mutual funds worth `1.07
questions related to any aspect of crore, PPF of `26 lakh, SCSS of
`15 lakh each, FD of `5 lakh and
post office MIS of `9 lakh. I want
to earmark a certain amount in
mail it to us right away. the name of our three grandsons,
aged 13, 6 and one-and-a-half,
QUESTION OF THE WEEK for their higher education. Please
suggest the best means of invest-
ment for maximum returns.
I am 35 and have a portfolio of `50 lakh in MFs Given education inflation in India,
and stocks. My wife and I together earn `6 lakh which hovers around 8-10% de-
pending on the course and col-
a month. I am salaried while she is self-
employed. Four years ago, we purchased an lege, allocation to a growth asset
is essential to ensure real returns.
office worth `3.5 crore. We have been prepay-
Parking money in a fixed income
ing the loan and will pay it off completely in a product with 6-7% returns would
year. We have PPF corpus of `20 lakh that will result in low or negative real re-
mature in 2 years. Currently, we live in a self- turns. Investing in equity mutual
owned 1 BHK that will fetch around `1.6 crore funds is the simplest way to allo-
cate funds for the college educa-
if we sell it now. Our aim is to purchase a house
in the next two years, worth about `5 crore. tion of your grandkids. However,
the investment horizon for your
Should we withdraw some money from our
eldest grandson is the shortest
investments to meet our goal? and, therefore, return expecta-
tions must be realistic as the
portfolio will need to be less ag-
Both monthly expenses and surplus are unknown. But as gressive. In the past 5 years, Nifty
you are clearing off the loan on the office, it is assumed that 50 has delivered a compounded
the surplus is being used to make prepayments. We will as- return of 11.97% and this can be a
sume no rental income is available from the office space. decent reference point. A large
The PPF of `20 lakh will become `25-28 lakh after 2
cap index fund along with an ac-
years assuming you keep investing. If you don’t have any tive fund from the multi cap
contingency reserves, then first please set aside up to 6-9 space can be selected. For the
months’ worth of expenses as an Emergency Fund. Even a younger two, investments can be
simple bank FD will do. I will not advise you to liquidate done more aggressively, and
PPF even after maturity. On maturity, please extend it for a hence a mid cap and a small cap
duration of 5 years with contributions. Details of `50 lakh fund can be included. In the last
MF and stock portfolio are not known so difficult to review 10 years, the Nifty 50 and Nifty
it properly. But equities are best suited for long-term in-
Mid Cap 150 indices have moved
vestments and it’s advisable to stick with them for several up at 12% and 16.35% CAGR, re-
years. Assuming you sell and get `1.6 crore for your cur-
spectively. The amount you wish
rent 1BHK, that will take care of 25-30% of the down pay- to set aside is not mentioned. As-
ment in 2 years’ time for the `5 crore house. If you decide
suming that an investment of `10
to use your equities of `50 lakh as well, then I would sug- lakh is done for each kid, and 11%
gest selling now and keeping the funds in debt instruments
CAGR is considered across the
and not wait for the last moment. You don’t want any mar- three time-frames, a corpus of
ket falls to reduce portfolio value.
`17 lakh, `35 lakh, and `53 lakh
A downpayment of `1.5-2 crore would mean a loan of can be generated by the time
close to `3-4 crore. If you take a loan for 20 years, the EMI they turn 18. The investments
will be `2.6-3.4 lakh a month. This is almost 50% of your can be done in your name with
monthly income and not ideal. Monthly EMIs are best limit- each child as a nominee in their
ed to 30-35% of income. respective schemes. You can even
The maths of the purchase makes it seem that it will select schemes from your exist-
strain your finances (unless salary and/or business income ing portfolio for the purpose and
increases substantially). Maybe you can make requisite
rethink it a bit and/or delay the pur- changes for
chase for a few years so that you the nominee.
can accumulate more savings.
Please remember that the
more money that goes into the Prableen Bajpai
house purchase, the less will Founder FinFix®
Research & Analytics
be available for other goals.
Dev Ashish
Founder, StableInvestor and
Sebi-registered investment advisor
Ask our experts
Have a question for the experts?
etwealth@timesgroup.com
 financial planning
12 The Economic Times Wealth December 26-January 1, 2023

PAPER WORK
:: Direct plan in
mutual funds
Mutual funds are a great tool to
invest in the securities market,
enabling investors to achieve
inflation-indexed returns over
time. Some investors, who are not
financially savvy, may prefer to
take the help of agents or distribu-
tors to guide them, while others
may like to take investment deci-
sions by themselves.

2 plans: regular

GETTY IMAGES
and direct
Investors who like to in-
vest on their own, prefer the direct

How to overcome inertia

plan as this does not include com-
mission charges. Those who prefer
doing the investments through
an agent can invest through the
regular plan, which has a relatively

in investment decisions
higher expense ratio compared to
the direct plan. However, though
two plans are offered, the portfolio
of the scheme is the same for both.

If you don’t have time to plan investments, put them on auto mode. Ways of investing
in direct plan

Rohan is 37 and recently married. He has
a stable job and earns a decent income.
However, he is unable to save any money.
He and his wife enjoy frequent outings,
shopping and holidays, which costs mon-
ey. While Rohan wants to invest some part
of his income, he finds that either there
is very little left at the end of the month
or money is just lying idle in his savings
bank account. He dislikes the thought of
adhering to a financial plan and the deci-
sions associated with it, so he finds rea-
sons to avoid doing anything and doesn’t
know much about investment avenues an-
yway. He has read enough about the need
to start investing early to be concerned
about his inability to get an investment
plan going. What can he do to overcome
the problem?
I
nertia in making investment decisions is a common problem faced
z Directly through
by many people. While some people postpone saving and invest-
ment decisions for good reasons, such as low income and other com-
the AMC website: Investors can
complete the application process
mitments, others like Rohan do not save and invest because they by clicking on the ‘Direct Plan’.
keep postponing the decisions related to financial planning. For such
zRTA website/other direct invest-
people, the best way to ensure that some portion of their income gets
invested is to make savings automatic, that is, in a way that does not re-
ment platforms: Mutual fund
registrar and transfer agents, such
quire them to make frequent decisions on where and how much to invest.
as CAMS and Karvy, also provide
There are various ways in which Rohan can put his saving and invest-
online platforms to invest in direct
ment exercise on auto mode till he is willing to give it the time and atten- plans of mutual funds. There are
tion it requires. He can use a salary deduction option with his employer, other direct investment platforms
who may agree to deduct a fixed amount from his pay and use it to make that facilitate such investments
an additional provident fund contribution or an insurance premium.
like MF Utilities, etc.
He can also give a standing instruction to his bank to move money from
zPhysical form: In case of a physi-
his salary account into any investment avenue, including mutual funds cal application form, investors
(through SIP) and fixed deposits, on a given date, consistently. He should should mention that they are opt-
preferably choose a date within a week of receiving his salary, so that he
secures his savings before he spends most of his monthly income.
ing for direct investment by writ-
ing the word “Direct” where the
All of these options require Rohan to create a one-time mandate for in- broker/distributor code is filled.
vesting a fixed amount. After that it goes in to auto-mode and creates an
investment portfolio for him with minimal action or decision from him.
As Rohan realises the need to start investing, he will be ready to make
Switching
the one-time effort. The low involvement required from his side to keep Another way of moving
to a direct plan is by
the investment going will suit his current reluctance to participate more
switching an existing
actively. Also, these options will force Rohan to cut back on his reckless
spending habit.
investment in a regular plan to the
direct plan of the same scheme. This
Content on this page is courtesy Centre for Investment Education and Learning (CIEL). involves redemption from one plan
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. and investment into another plan,
which may entail tax implications.

smart things to know Types of loans

1
:: Points to note
Home loans are
primarily used to
buy a new house 2 Personal loans
are for a short
term, used at
4
Loan against assets
Credit cards
allow consum-
ers to use funds
interest-free for
z KYC is mandatory for any
investment in mutual fund,
including direct plans.
z Each mutual fund scheme offers

3 5
and are generally Auto loans are used the borrow- can be used for any up to a month. a direct plan and a regular plan.
for a long tenure to buy cars and are ers’ discretion. purpose. As it is But if a payment z The NAV of a direct plan tends
(20-30 years). medium-term loans As these are secured with mutual is missed, the to be higher than that of a regu-
They have the with a moderate rate unsecured, the funds, bonds, PPF, rate of interest lar one as the commission com-
lowest rate of of interest. In case of a interest rate gold, etc, the rate of that is levied ponent is absent in the former.
interest among default, the car is taken of these loans interest is lower than is the highest
other loans. back to recover dues. are higher. personal loans. among all loans.

Never changing money habits
We persist in ways we deal with our wealth, not checking if it can be made better, says Uma Shashikant.
E
very time the year draws to a close
we like to review what worked
and what did not. Sometimes we
indulge in forecasts based on
trends we have seen. We also use
the opportunity to list out the surprises and
the unexpected events. But your columnist
remains somewhat unwilling to engage in
those pursuits. Our issues remain unchanged,
don’t they? Don’t our stories uncannily keep
UMA SHASHIK ANT coming back?
IS CHAIRPER SON, Let’s dig out of that bin of the familiar, some
CENTRE FOR INVES TMENT gems that are worthy of mention. What might
EDUC ATION AND LE ARNING
be the simple personal finance triumphs to
cheer about? We sometimes run the risk of wor-
rying about what ought to be, while overlook-
ing the merits of what is. Let’s make that list of
what has persisted and triumphed not just this
year, but perhaps for sometime.
First, the focus on income is high on the
minds of the ordinary saver. This is so evident
We live a personal
in the early acceptance of the job that comes
finance life that is
along; in the persistence with a not-so-satisfy-
enabled by our choice
ing job until one finds something else; in the
of practices and habits,
moonlighting to pursue more than a single
preferences and
job; in the continuation of consulting and
attitudes, honed by
freelance jobs well after retirement; and in
time and strengthened always asking of an investment avenue about
by government the income it would generate. We all love the
oversight. income streams.
Second, the ability to build wealth in what-
ever form one is comfortable with. In the vil-
lages it is common to buy livestock and gold
with seasonal income, only to trade it or pledge
it for subsequent needs. We can spite the cross
country choice of investment in gold for being
too expensive and somewhat unfair in the way
the costs are structured, but squirreling away
some savings in whatever asset one likes, gold
primarily included, is a habit that persists in
Indian households.
Third, the propensity to save is far more
financial planning
The Economic Times Wealth December 26-January 1, 2023
GETTY IMAGES
widespread in India than it is in most devel-
oped countries. The prevalence of debt and
borrowing is relatively lower and households
set aside some money for the future somewhat
routinely. We worry about growing consumer-
ism and the spending habits of the young. One
setback in a job or health is enough for many
of them to worry about the future and become
savers. We also know that many households
turn serious savers when a baby is born.
Fourth, the focus on family and children is
very high among savers and investors. Many
financial advisers and distributors admit
that the financial goals of a typical Indian
household will include children’s education,
children’s marriage and parents’ retirement,
mostly in that order of priority. Many leave be-
hind their lifetime earnings for their children,
living frugally and setting aside money for the
well being of the next generation.
Fifth, desperate measures to get rich grab
news headlines. But many households find
the resilience to bring their finances in order
after a few mistakes. It is common to see budg-
ets for lottery tickets, day trading, and such
speculative activities curbed to a limit. There
is also the risk averse tendency of not going
back to what may not have worked the first
time. Low equity penetration persists despite
headline grabbing stories of wealth made from
equity investing.
Sixth, admiration for winners and the
wealthy does not translate into large scale at-
titudinal change and action. But crises push
out many who remain wary of returning.
We thus have swathes of admirers of Warren
Buffet, and a low equity participation. We have
admiration for entrepreneurs and business-
men, but fewer stories of failed businessmen
coming back to rebuild. We have unfinished
residential properties and oversupplied hous-
es remaining standing in many of our cities,
13
with no tradition of distress sale or bargain
buying, even if we admit that people love
investing in real estate.
Seventh, we do not make hasty decisions
to modify our historical preferences. An
in built stability and long term orientation
is evident in the sticky preference for low
return bank deposits; a loyalty towards
erstwhile profitable but now severely loss
making banks, because they are owned by
the government; a remarkable affinity for
insurance as an investment despite poor
returns; and the affection for government
post office, provident fund, and saving
schemes and products even if they seem ar-
chaic in design and process.
Eighth, we like investment products, but
we dislike any market risks that come with
them. The persistent demand that the sim-
ple investor is somehow entitled to protec-
tion and privileges is asserted and rewarded
from time to time. Thus special pricing for
the small ticket investor remains, and it is
perfectly acceptable for brokers, advisers,
journalists, traders, television channels
and WhatsApp groups to send out invest-
ment tips and tricks. The simple investor
feels entitled to low cost, if not free advice
and is accordingly pampered. Even if regu-
lation tries its best to certify and regulate
the providers involved.
Ninth, we demand and receive detailed
communication and elaborate processes for
our engagement with any institution. The
focus on protecting the investor is so high
across all regulators due to this orientation.
Every time a fraud is unearthed, or an epi-
sode of misrepresenting something comes
to light, the government and its regulating
agencies press ahead for more information
to be disclosed and shared. The ordinary
investor is able to enjoy being an empowered
and informed decision maker.
Tenth, we are a country with the larg-
est number of personal finance litigations
pending in courts with regard to inherit-
ance. We are able to assert our right to
wealth that is lawfully ours and are willing
to fight for our share, through the maze of
procedure and delay, sometimes across mul-
tiple generations, to get a verdict. Making
nominations, generous gifting at weddings,
buying properties in family and other
names, introducing sleeping family mem-
bers into businesses, and emphasizing joint
ownerships are all well entrenched tools
to transfer wealth to the family and to next
generations.
Thus we live a personal finance life that is
enabled by our choice of practices and hab-
its, preferences and attitudes, honed by time
and strengthened by government oversight.
Any irony that a skeptical reader senses in
the list, is purely incidental.
Please send your feedback to
etwealth@timesgroup.com
 travel
14 The Economic Times Wealth December 26-January 1, 2023

State Secrets: GUJARAT

If, instead of foreign holidays, you prefer to travel within India, here’s a new series to help you plan the best
vacations in each of the 28 states and 8 Union Territories. We highlight tourist attractions, culinary choices,
modes of travel and the costs involved. In the seventh part of the series, Riju Mehta takes you to Gujarat.

CAPITAL WHERE TO STAY…

GANDHINAGAR
There are several accommodation options
BEST TIME TO VISIT ranging from Gujarat Tourism resorts to all
NOVEMBER TO star hotels, homestays, hostels and tents.
FEBRUARY You can pick the ones that suit your budget.
The bigger cities will throw up more luxury
options, while the smaller towns will have
more affordable stay options.

COST: `27,000 for 9 nights

(`2,000-4,000 per night)

WHAT TO EAT…
While Gujarati snacks are the most well-
known, if you want to savour the state’s
elaborate vegetarian cuisine, you should
sample the Gujarati thali, which typically
includes farsans (steamed/fried snacks),
vegetables, shaak (spicy vegetable curry or
dry dish), kathol (pulses), daals, curd-based
dishes like kadhi and raita, staples like rice,
rotli, rotla and bhakri, and desserts like
basundi or shrikhand. The popular snacks
include khaman, thepla, khandvi, dabeli,
dhokla, khakhra and muthiya.
COST: `500-1,000 per person, per day

WHAT TO DO…
This western state has the longest coastline
in the country and has stunning landscapes
HOW TO With 17 operational airports, the state has one of the biggest air There is so much to see and do that you will
REACH FROM networks in the country. We have considered the Ahmedabad have to pick sites as per your interests.
and geographical diversity, including salt airport as it offers the cheapest fares. The flight takes only about
deserts (Rann of Kutch), rivers (Narmada, DELHI… 1.5 hours, and will cost around `2,400 a person for a January 2023
TEMPLES
Tapi and Sabarmati), beaches and hills. It’s booking. By train, it will take around 14 hours to reach. The 2A class Some of the famous temples include the
also known for its grand temples, historical fare starts at `1,665, while sleeper class starts at around `450. Somnath ( Veraval), Dwarkadhish (Dwarka),
sites, such as the Indus Valley civilisation Swaminarayan Akshardham (Gandhinagar),
Cost by air Sun temple (Modhera), Rukmini temple
ruins, and Gir National Park, which houses Cost by train: `1,665 (Dwarka), Bhalka Tirth (Somnath), Ambaji
the Asiatic lions. You can easily spend 7-10 `2,391 (Delhi-Ahmeda- onwards (Class 2A) (Delhi- (Banaskantha), Shri Swaminarayan mandir
days here, sampling not only its natural bad, 1 hour, 35 minutes) Ahmedabad, 13-16 hours)
beauty and monuments, but also its unique (Bhuj), and Hutheesing Jain ( Ahmedabad).
food and rich culture. *One way, per person. Flight cost on Skyscanner on 22 Dec. Train cost on Ixigo MONUMENTS & SITES
Indus Valley sites: A must-visit place, which
includes Lothal in Ahmedabad and Dholavira
SUGGESTED ITINERARY in Kutch, with ruins from 2-3rd century BC.
DAY 1: Ahmedabad take a trip to Champaner- Mahal and Prag Mahal. Champaner-Pavagarh Archaeological Park:
You may require over 10 days if you don’t want
to miss out all the attractions in the state. If, Visit the Sabarmati Pavagarh sites. If not, move directly to The Unesco World Heritage site houses forts,
however, you want to prioritise your interests, Ashram and riverfront, DAY 4: Patan-Dasada the tent city in Dhordo, mosques, temples and stepwells from 8-14th
you can cut down the trip to a week or so. and Science City, and Arrive in Patan the next Kutch. Enjoy the White centuries.
don’t forget to sample morning, about 4.5 hours salt desert and sunset. Statue of Unity: The tallest statue in the
the snacks and Gujarati away and visit the Rani DAY 7-9: Somnath- world is about 2 hours from Vadodara.
thali. The next day, take ki Vav. Then move to Porbandar-Dwarka Rani ki Vav: The queen’s stepwell, in Patan,
DAY 5-6 DAY 4 a 2-3 hour heritage Modhera to see the sun Next day, either move about 125 km from Ahmedabad, is a
walk in the morning and temple, about half hour back to Ahmedabad and Unsesco World Heritage Site.
visit the popular spots away. From there travel then go to Somnath, or Laxmi Vilas Palace: The Gaekwad royal fam-
GUJARAT in the city, including the to Dasada about 1 hour go directly to Somnath, ily's palace in Vadodara is reputed to be the
DAY 1 Shree Swaminarayan, away. which will take 10 hours largest private residence in India.
DAY 2-3 Jagannath and Jain tem- DAY 5-6: Bhuj-Kutch or so. In the next two
ples. Move to Vadodara, Next morning take a days, visit Somnath, WILDLIFE
DAY 7-9 about two hours away, in safari to see the flamin- Porbander and then Gir National Park: Also known as Sasan Gir, it
the evening. gos and wild asses in Dwarka to cover all the houses Asiatic lions, leapords, hyenas, croco-
DAY 2-3: Vadodara the sanctuary and then beautiful temples. diles, monitor lizards and 300 bird species.
Start Visit the Laxmi Vilas move to Bhuj about 6-7 DAY 10: Back to Delhi LANDSCAPES
Palace, take a trip to the hours away. If you want You can return to
Rann of Kutch: One of the world's largest salt
Statue of Unity about to stay in Bhuj, visit the Ahmedabad and take a
marshes, it comprises Great and Little Rann,
two hours away, and also Harmisar lake, Aiana flight to Delhi.
AHMEDABAD and makes for a stunning white expanse.
SMART STATS
The Economic Times Wealth
December 26-January 1, 2023

In This Section
MUTUAL FUNDS - P16
LOANS AND DEPOSITS - P18

ET WEALTH TOP 50 STOCKS

ALTERNATIVE INVESTMENTS- P19

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 RISK R AT I N G

Current Previous Stock Net Div Downside Bear No. of Consensus
Rank Rank Price Revenue Profit PE PB Yield PEG Risk Beta Analysts Rating

1 Fast growing stocks

LIC Housing Finance 1 1 411.00 29.00 70.00 9.52 0.91 2.07 0.15 1.62 1.58 34 4.00
UPL 2 2 729.35 23.00 48.00 15.39 2.26 1.32 0.28 1.40 1.10 29 4.76
Shriram Finance 3 -- 1,339.40 17.00 98.00 13.18 1.40 0.88 0.21 1.63 1.75 34 4.29 Top 5 stocks with the highest
revenue growth (%) over the
KEC International 4 4 459.45 30.00 100.00 34.99 3.21 0.87 0.35 1.48 0.80 26 4.19
previous year
Prestige Estates Projects 5 7 451.05 26.00 60.00 15.75 1.99 0.33 0.25 1.52 1.00 20 4.80
SBI Cards & 47
Embassy Office Parks 6 5 347.00 20.00 59.00 41.43 1.31 6.11 0.69 0.84 0.04 15 4.87 Payment
Larsen & Toubro 7 6 2,109.95 27.00 48.00 34.17 3.60 1.03 0.70 1.11 1.02 44 4.75 Cyient 46
Oil India 8 8 203.05 26.00 31.00 3.90 0.72 6.59 0.17 2.07 -0.13 20 4.15
Eris Lifesciences 44
Dr Reddy's Laboratories 9 9 4,349.25 17.00 68.00 30.64 3.78 0.68 0.44 1.07 0.77 42 4.43 Adani Ports &
SEZ 42
Apollo Tyres 10 10 316.30 24.00 91.00 31.57 1.72 1.02 0.35 1.64 1.62 33 3.97
M&M Financial 11 14 227.85 20.00 74.00 24.83 1.68 1.59 0.34 1.84 1.86 33 3.64 Greenply 42
Industries
Coal India 12 11 222.70 18.00 38.00 7.91 3.18 20.10 0.19 1.48 0.66 25 3.96
Adani Ports & SEZ 13 16 856.90 42.00 61.00 38.30 4.76 0.58 0.63 1.50 1.39 24 4.67
2 Least expensive stocks
VRL Logistics 14 17 528.85 32.00 51.00 29.17 7.17 1.48 0.48 1.92 1.08 13 4.77
Top 5 stocks with the lowest
Somany Ceramics 15 19 466.80 29.00 43.00 22.44 2.74 0.62 0.52 1.53 0.98 18 4.72 price-earnings ratio
Manappuram Finance 16 13 114.10 23.00 31.00 7.32 1.16 2.55 0.28 1.72 1.60 19 4.68 Oil India 3.90
L&T Finance Holdings 17 12 87.35 19.00 150.00 25.06 1.09 0.56 0.16 1.78 1.74 13 4.54 Oil & Natural
Gas Corp 3.97
Cyient 18 15 814.95 46.00 23.00 17.08 2.86 2.93 0.85 1.20 0.45 20 4.45
Manappuram
CESC 19 21 76.40 20.00 15.00 7.53 0.98 5.70 0.54 1.08 0.40 17 4.76 7.32
Finance
Torrent Pharmaceuticals 20 18 1,585.95 24.00 105.00 68.76 8.98 1.52 0.63 1.32 0.69 35 4.00 CESC 7.53
NTPC 21 20 165.90 23.00 12.00 9.67 1.19 4.17 0.83 1.11 0.61 26 4.81
Coal India 7.91
City Union Bank 22 22 176.30 24.00 45.00 17.22 1.99 0.56 0.41 1.45 1.23 27 4.37
Tata Power Co. 23 23 208.90 27.00 66.00 30.30 2.98 0.82 0.17 1.63 1.53 24 3.00
ICICI Lombard Gen. Ins. 24 26 1,239.75 30.00 59.00 47.73 6.66 0.78 0.77 1.19 0.80 28 4.39 3 Best PEGs
Top 5 stocks with the least
Reliance Industries 25 24 2,577.80 34.00 34.00 28.16 2.25 0.31 0.86 1.18 0.95 36 4.31
price earnings to growth ratio
Oil & Natural Gas Corp 26 25 142.25 28.00 5.00 3.97 0.70 8.19 0.87 1.71 -0.10 28 4.07 LIC Housing Oil India
Grasim Industries 27 28 1,744.85 31.00 44.00 16.14 1.52 0.58 0.54 1.36 1.30 10 4.60 Finance

Bharti Airtel 28 29 816.60 18.00 135.00 69.36 6.26 0.37 0.58 1.07 0.65 34 4.56
0 0.15 0.16 0.17 0.17
Bharat Electronics 29 30 98.25 29.00 33.00 29.82 5.82 1.51 0.91 1.35 1.02 31 4.58
Mphasis 30 27 1,989.15 30.00 33.00 26.00 5.37 2.35 0.81 1.59 1.22 35 4.06
Endurance Technologies 31 32 1,400.80 35.00 52.00 42.79 5.03 0.44 0.81 1.35 0.64 23 4.35 Britannia L&T Finance Tata Power Co
Inds Holdings
Blue Star 32 34 1,205.00 39.00 98.00 69.09 11.41 0.82 0.76 1.34 0.70 23 4.09
SBI Cards & Payment 33 35 786.85 47.00 73.00 45.66 9.53 0.32 0.63 1.34 1.19 27 4.26
4 Income generators
Kansai Nerolac Paints 34 36 425.60 31.00 102.00 62.54 5.43 0.51 0.64 1.12 0.56 21 3.48
Top 5 stocks with the highest
ITC 35 37 332.45 21.00 26.00 26.97 6.58 3.43 1.03 0.93 0.62 35 4.60 dividend yield (%)
Gujarat State Petronet 36 38 258.45 21.00 3.00 8.94 1.85 0.75 0.31 1.45 1.38 25 4.72
Coal India 20.10
Greenply Industries 37 43 144.70 42.00 31.00 18.80 3.31 0.33 0.68 1.47 1.10 12 4.83 Oil & Natural
8.19
Greenpanel Industries 38 31 321.05 27.00 37.00 16.85 3.98 0.45 0.45 1.70 0.80 12 4.58 Gas Corp
Oil India 6.59
EPL 39 39 166.50 18.00 34.00 24.76 2.91 2.54 0.73 1.51 1.02 13 4.69 Embassy Office
6.11
Coromandel International 40 41 892.05 30.00 26.00 17.11 4.11 1.31 0.67 1.35 0.90 12 4.50 Parks
CESC 5.70
Britannia Inds 41 40 4,391.45 23.00 33.00 69.33 41.33 1.28 0.00 1.03 0.64 41 4.00
Cipla India 42 33 1,122.45 18.00 46.00 35.99 4.35 0.44 0.78 0.94 0.34 42 4.21
5 Least risky
BHEL 43 44 78.90 39.00 88.00 62.58 1.05 0.49 0.71 1.81 1.37 21 1.81 Top 5 stocks with the lowest
IRB Infrastructure 44 42 298.35 25.00 114.00 33.77 1.41 0.42 0.70 1.90 1.30 11 4.27 downside risk
DLF 45 -- 377.85 22.00 57.00 62.69 2.59 0.79 1.03 1.64 1.58 23 4.65 Britannia Inds
ITC
Jyothy Labs 46 48 202.95 21.00 65.00 47.45 5.32 1.25 0.73 1.16 0.84 16 4.12
HG Infra Engineering 47 -- 556.20 27.00 17.00 9.55 2.53 0.18 0.34 1.84 1.32 15 5.00
0.84 0.93 0.94 1.03 1.07
Glenmark Pharma 48 49 436.40 10.00 42.00 13.08 1.36 0.57 0.30 1.40 1.17 19 3.84
Eris Lifesciences 49 50 659.25 44.00 18.00 22.08 4.70 1.11 1.22 1.09 0.53 10 5.00
Embassy Cipla India Dr Reddy's
Dhanuka Agritech 50 -- 695.45 24.00 22.00 15.61 3.40 0.85 0.90 1.15 0.24 13 4.69 Office Parks Laboratories
SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 22 DECEMBER 2022. SOURCE: BLOOMBERG IN THE ADJACENT TABLE.
 smart stats
16 The Economic Times Wealth December 26-January 1, 2023

ETW FUNDS 100

BEST FUNDS TO BUILD YOUR PORTFOLIO
LAGGARDS & LEADERS
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

ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are 6.59 13.81
ranked on 3-year returns while debt-oriented hybrid and income funds are IDBI Nifty Junior Index Fund LIC MF S&P BSE Sensex ETF - Sensex

ranked on 1-year returns. 6.78 13.81

ICICI Prudential Nifty Next 50 HDFC S&P BSE Sensex ETF
6.99 13.81
RETURNS (%) JM Focused Fund SBI S&P BSE Sensex ETF
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) 7.46 13.80
Taurus Largecap Equity ICICI Prudential S&P BSE Sensex ETF
EQUITY: LARGE CAP
7.64 13.78
Quant Focused Fund
ICICI Prudential Bluechip Fund


182.75
35,929.40
-0.97
3.76
19.42
17.34
10.79
10.81
21.89
16.07
11.69
11.45
2.62
1.67
21.89% SBI Nifty Next 50 ETF Nippon India ETF S&P BSE Sensex
Canara Robeco Bluechip Equity Fund  8,832.26 1.01 15.09 4.81 15.51 13.24 1.87 THE 3-YEAR
RETURN OF
IDFC Nifty 50 Index Fund  574.62 2.68 16.69 9.57 14.91 12.73 0.60
UTI Nifty 50 Index Fund  9,502.80 2.78 16.79 9.59 14.90 12.76 0.30
QUANT
FOCUSED Equity: Flexi-cap 5-year returns
UTI Mastershare Fund  11,038.90 0.25 14.18 2.42 14.70 11.06 2.04 FUND IS
Kotak Bluechip Fund  5,427.09 1.38 15.72 6.06 14.69 11.31 1.94 THE HIGHEST 4.45 17.71
HDFC Index Fund Nifty 50 Plan  7,551.40 2.76 16.71 9.44 14.66 12.57 0.40
IN ITS
CATEGORY. Motilal Oswal Flexi Cap Quant Flexi Cap Fund
ICICI Prudential S&P BSE Sensex Index Fund  656.42 2.81 16.61 9.42 14.49 13.27 0.29
5.23 15.61
HDFC Index Fund - S&P BSE Sensex Plan  4,214.10 2.78 16.54 9.37 14.20 13.29 0.40
IDFC Focused Equity Fund Parag Parikh Flexi Cap Fund
Nippon India Index Fund - S&P BSE Sensex Plan  357.57 2.66 16.29 9.07 14.17 12.98 0.77
Baroda BNP Paribas Large Cap Fund  1,439.97 2.33 15.83 8.32 13.98 10.99 2.14 5.63 14.99
Mirae Asset Large Cap Fund  35,406.83 1.41 14.58 5.66 13.84 10.87 1.56 Taurus Flexi Cap Fund IIFL Focused Equity Fund
Tata S&P BSE Sensex Index Fund  176.82 2.75 16.36 9.19 13.58 12.89 0.58 5.71 13.55
Axis Bluechip Fund  36,890.65 -1.53 12.44 -2.17 10.60 11.66 1.59
Nippon India Retirement PGIM India Flexi Cap Fund
EQUITY: LARGE & MIDCAP 6.56 12.76
Quant Large and Mid Cap Fund  438.63 1.47 22.06 15.41 25.68 13.65 2.31 25.68% LIC MF Flexi Cap Fund HDFC Retirement Savings Fund
SBI Large & Midcap Fund  8,993.03 0.44 20.99 11.60 20.45 12.08 1.81 THE 3-YEAR
Mirae Asset Emerging Bluechip Fund  24,643.10 0.26 14.40 2.49 19.17 13.07 1.70 RETURN
Canara Robeco Emerging Equities Fund
Axis Growth Opportunities Fund


15,854.15
8,473.66
-1.58
-4.25
14.90
12.14
2.93
-4.39
19.11
17.95
10.86
—
1.78
1.85
OF QUANT
LARGE AND Equity: Mid-cap 3-year returns
MID CAP IS
Kotak Equity Opportunities Fund  11,662.47 0.29 18.75 11.23 17.80 11.96 1.79 THE HIGH- 15.44 35.68
Edelweiss Large & Mid Cap Fund  1,695.78 -1.10 17.72 5.98 17.71 12.01 2.17 EST IN ITS DSP Midcap Fund Quant Mid Cap Fund
CATEGORY.
EQUITY: FLEXI CAP 17.13 35.61
PGIM India Flexi Cap Fund  5,379.73 -0.16 15.79 -1.50 22.84 13.55 1.94 HSBC Midcap Fund PGIM India Midcap Opportunities
HDFC Retirement Savings Fund Equity Plan  2,633.76 2.28 18.81 12.11 22.34 12.76 1.98
17.29 27.27
Parag Parikh Flexi Cap Fund  28,546.26 -1.06 11.07 -2.64 21.91 15.61 1.64
Franklin India Prima Fund SBI Magnum Midcap Fund
IIFL Focused Equity Fund  3,500.96 1.96 19.73 4.26 19.33 14.99 1.92
ICICI Prudential Retirement Fund - Pure Equity Plan  211.07 0.57 14.28 6.69 18.65 — 2.67 18.23 25.54
Union Flexi Cap Fund  1,396.13 0.83 16.80 3.30 17.95 12.32 2.29 IDBI Midcap Fund Edelweiss Mid Cap Fund
Canara Robeco Flexi Cap Fund  8,935.91 0.21 14.98 2.46 16.80 12.69 1.81 18.52 24.83
Sundaram Focused Fund  808.83 -0.40 16.97 3.23 16.71 12.21 2.42
Sundaram Mid Cap Fund Mirae Asset Midcap Fund
Mirae Asset Focused Fund  9,128.31 -0.21 10.29 -3.40 16.65 — 1.78
UTI Flexi Cap Fund  26,102.37 -3.80 10.63 -8.44 15.72 12.59 1.75
SBI Focused Equity Fund  28,452.99 -3.36 12.21 -5.06 14.31 10.95 1.59

EQUITY: MID CAP

Equity: Small-cap 3-year returns
Quant Mid Cap Fund  1,272.71 0.60 23.58 19.71 35.68 19.42 2.68
35.68% 20.06 53.40
PGIM India Midcap Opportunities Fund  7,576.62 -3.37 17.22 4.37 35.61 16.38 1.93
THE Aditya Birla Sun Life Quant Small Cap Fund
Edelweiss Mid Cap Fund  2,477.71 -2.34 20.09 7.30 25.54 11.88 2.06 3-YEAR
Nippon India Growth Fund  13,860.86 -1.49 19.91 10.07 24.61 12.99 1.84 RETURN 24.95 38.03
OF QUANT Franklin India Smaller Canara Robeco Small Cap Fund
Kotak Emerging Equity Fund  23,223.54 -1.98 18.73 8.73 24.11 13.01 1.72
MIDCAP
Axis Midcap Fund  19,741.37 -3.90 13.87 -0.09 19.24 14.49 1.76 FUND IS
25.50 37.64
THE HIGH- Motilal Oswal Nifty Smallcap Bank of India Small Cap Fund
EQUITY: SMALL CAP
EST IN ITS
Canara Robeco Small Cap Fund  4,367.47 -2.10 16.94 11.41 38.03 — 2.06 CATEGORY.
26.74 34.80
Bank of India Small Cap Fund  406.96 -2.40 20.18 3.72 37.64 — 2.67 Axis Small Cap Fund Nippon India Small Cap Fund
Nippon India Small Cap Fund  23,765.05 0.65 23.52 13.08 34.80 14.55 1.83 27.22 32.86
Edelweiss Small Cap Fund  1,428.41 -1.34 20.75 6.51 32.86 — 2.17 Invesco India Smallcap Edelweiss Small Cap Fund
Kotak Small Cap Fund  8,498.23 -3.32 13.96 0.65 31.58 14.54 1.91
SBI Small Cap Fund  15,335.11 -0.62 21.59 13.09 29.03 12.74 1.85
Axis Small Cap Fund  11,358.11 -0.23 17.81 8.90 26.74 17.15 1.85 Hybrid: Aggressive 5-year returns
EQUITY: VALUE ORIENTED
SBI Contra Fund  7,204.54 2.75 21.34 17.27 30.53 13.50 1.93 30.53% 4.95 18.51
ICICI Prudential Value Discovery Fund  27,794.80 5.88 19.27 18.81 25.04 13.78 1.75 Nippon India Equity Hybrid Quant Absolute Fund
THE 3-YEAR
Invesco India Contra Fund  9,901.64 0.29 18.15 8.27 17.76 11.27 1.82 RETURN OF 5.87 13.12
UTI Value Opportunities Fund  7,194.42 0.64 18.51 8.06 17.60 12.04 1.99 SBI CONTRA IDBI Hybrid Equity Fund ICICI Prudential Equity & Debt Fund
Kotak India EQ Contra Fund  1,473.54 3.31 20.07 11.44 17.07 12.77 2.20 FUND IS
THE HIGH- 6.27 11.45
EQUITY: ELSS EST IN ITS LIC MF Children's Gift Fund Baroda BNP Paribas Aggressive Hybrid
Quant Tax Plan  2,327.41 -1.65 23.56 16.17 38.12 21.41 2.62 CATEGORY.
6.34 11.14
IDFC Tax Advantage (ELSS) Fund  4,090.79 0.94 17.94 8.67 22.70 11.37 1.93
IDFC Asset Allocation Fund HDFC Children's Gift Fund
Bank of India Tax Advantage Fund  696.31 0.32 20.70 3.94 22.55 12.43 2.47
Canara Robeco Equity Tax Saver Fund  4,582.95 -0.44 16.51 3.82 19.75 14.53 1.98 6.37 11.08
PGIM India ELSS Tax Saver Fund  453.51 3.23 17.34 9.50 19.36 11.69 2.51 LIC MF Equity Hybrid Fund Canara Robeco Equity Hybrid Fund
Union Long Term Equity Fund  594.15 0.58 17.66 6.18 18.84 12.20 2.50
ANNUALISED RETURNS IN % AS ON 21 DEC 2022.
 smart stats
The Economic Times Wealth December 26-January 1, 2023 17

ETW FUNDS 100 Value Research

Fund Rating
Net Assets
(` Cr) 3-Month 6-Month
RETURNS (%)
1-Year 3-Year 5-Year
Expense
Ratio 1 Top 5 SIPs
Top 5 equity schemes based
Mirae Asset Tax Saver Fund  14,255.39 1.31 14.76 4.28 18.28 13.28 1.71
Kotak Tax Saver  3,163.28 1.69 20.25 11.29 17.95 12.27 2.02 on 10-year SIP returns
DSP Tax Saver Fund  10,715.09 1.17 17.31 8.08 17.53 11.65 1.75
Quant Tax Plan
HYBRID: EQUITY SAVINGS
23.67
Mirae Asset Equity Savings Fund  592.44 1.26 8.72 5.21 10.84 — 1.41
Edelweiss Equity Savings Fund  272.10 1.10 6.91 4.36 9.25 7.75 2.06 Nippon India Small Cap Fund
Kotak Equity Savings Fund  2,058.40 1.83 7.59 7.69 9.24 8.03 2.11 23.59

HYBRID: AGGRESSIVE (EQUITY-ORIENTED) SBI Small Cap Fund

Quant Absolute Fund  867.83 -0.46 19.28 15.98 30.54 18.51 2.31 30.54% 23.40
Bank of India Mid & Small Cap Equity & Debt Fund  392.35 0.70 16.29 -0.34 24.99 9.89 2.55 THE 3-YEAR
Quant Flexi Cap Fund
RETURN
ICICI Prudential Equity & Debt Fund  21,655.35 2.93 14.45 14.7 20.14 13.12 1.78
OF QUANT 21.60
HDFC Children's Gift Fund  6,179.13 1.58 14.97 9.25 16.49 11.14 1.82 ABSOLUTE
Kotak Equity Hybrid Fund  3,195.99 0.68 13.62 7.98 16.09 11.00 2.02 FUND IS THE Quant Small Cap Fund
HDFC Retirement Savings Fund - Hybrid Equity Plan  933.17 2.30 13.87 7.45 15.41 10.50 2.22 HIGHEST IN ITS 20.14
Canara Robeco Equity Hybrid Fund  8,593.14 0.68 12.87 4.61 14.18 11.08 1.81 CATEGORY.
Baroda BNP Paribas Aggressive Hybrid Fund  821.51 1.61 13.19 7.52 13.62 11.45 2.25 SIP: SYSTEMATIC % ANNUALISED RETURNS
INVESTMENT PLAN AS ON 21 DEC 2022
Mirae Asset Hybrid Equity Fund  7,323.43 1.15 13.14 5.27 12.91 10.44 1.76
SBI Equity Hybrid Fund  57,409.31 -0.01 11.54 5.29 12.60 10.29 1.45

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

ICICI Prudential Regular Savings Fund
SBI Conservative Hybrid Fund


3,319.77
6,842.80
1.25
1.31
6.34
7.12
6.19
5.58
8.71
10.75
8.09
7.85
1.74
1.11
2 Top 5 MIPs
Top 5 MIP schemes based on
Kotak Debt Hybrid Fund  1,632.44 1.23 7.86 4.95 10.48 8.29 1.81 3-year SWP returns
Canara Robeco Conservative Hybrid Fund  1,142.46 1.00 5.88 3.75 8.78 7.91 1.79
SBI Magnum Children's Benefit Fund  89.94 1.16 5.87 3.59 11.56 7.46 1.21 Bank of India Conservative Hybrid Fund

DEBT: MEDIUM- TO LONG-TERM 13.63

SBI Magnum Children's Benefit Fund
ICICI Prudential Bond Fund
SBI Magnum Income Fund


2,425.75
1,511.17
1.51
1.50
4.41
4.03
3.16
3.12
5.82
6.49
6.53
6.83
1.18
1.47
3.16%
THE 1-YEAR 11.40
Aditya Birla Sun Life Income Fund  1,529.76 1.67 3.66 2.41 6.36 6.64 0.89
RETURN OF SBI Conservative Hybrid Fund
DEBT: MEDIUM-TERM ICICI PRU
BOND IS 10.77
ICICI Prudential Medium Term Bond Fund  6,255.53 1.51 3.95 4.17 6.71 6.83 1.41 THE HIGH- Kotak Debt Hybrid Fund
Axis Strategic Bond Fund  1,569.40 1.40 3.54 3.87 6.53 6.63 1.09 EST IN ITS
SBI Magnum Medium Duration Fund  8,811.26 1.59 3.57 3.44 6.56 7.27 1.21 CATEGORY. 10.61
HDFC Medium Term Debt Fund  3,668.88 1.49 3.65 2.89 6.00 6.48 1.29 Aditya Birla Sun Life Regular Savings
DEBT: SHORT-TERM 9.86
ICICI Prudential Short Term Fund  14,357.74 1.61 4.10 4.62 6.37 6.86 1.12 4.62% SWP: SYSTEMATIC % ANNUALISED RETURNS
Aditya Birla Sun Life Short Term Fund  5,664.66 1.40 3.36 4.14 6.31 6.76 1.10 THE 1-YEAR WITHDRAWAL PLAN AS ON 21 DEC 2022
UTI Short Term Income Fund  2,087.84 1.41 3.07 3.79 7.50 4.79 0.96 RETURN OF
ICICI PRU
Axis Short Term Fund 7,478.34 1.40 3.01 3.69 5.74 6.63 0.99
Large & Mid Cap:

SHORT TERM

3
HDFC Short Term Debt Fund  12,247.94 1.50 3.16 3.46 6.08 6.96 0.74 FUND IS
IDBI Short Term Bond Fund  31.69 1.51 3.28 3.02 8.31 6.19 0.75 THE HIGH-
EST IN ITS Cash holdings
DEBT: DYNAMIC BOND CATEGORY.
ICICI Prudential All Seasons Bond Fund  6,074.24 1.61 4.97 4.56 6.91 7.31 1.38 7.19
Quantum Dynamic Bond Fund  85.18 2.31 3.94 4.37 5.91 6.36 0.73
5.83 5.47
IIFL Dynamic Bond Fund  462.62 1.48 3.22 3.65 5.80 6.05 0.52
Kotak Dynamic Bond Fund  1,991.05 1.57 4.04 2.52 5.84 7.06 1.31 3.88 3.80
HDFC Dynamic Debt Fund  497.26 1.29 3.15 1.64 5.98 4.94 1.73

DEBT: CORPORATE BOND

ICICI Prudential Corporate Bond Fund  15,772.66 1.68 3.83 4.42 6.32 7.00 0.58
Expense as on 30 Nov 2022
Nippon India Corporate Bond Fund  1,564.40 1.72 3.50 4.33 6.22 6.62 0.61
Returns as on 21 Dec 2022 Tata ICICI Union SBI Large LIC MF
Aditya Birla Sun Life Corporate Bond Fund  12,547.07 1.59 3.57 4.07 6.60 7.26 0.46
Assets as on 30 Nov 2022 Large & Prudential Large & & Midcap Large &
Kotak Corporate Bond Fund  8,774.80 1.47 3.22 3.60 5.65 6.79 0.67 Rating as on 30 Nov 2022 Mid Cap Large & Midcap Fund Mid Cap
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Fund Mid Fund Fund
Did not find your fund here? % OF ASSETS AS ON 30 NOVEMBER 2022
Log on to www.wealth.economictimes.com for an exhaustive list.

Debt: Dynamic bond fund

Methodology
The Top 100 includes only those funds that have a 5- or
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
4 lowest expense ratio
4-star rating from Value Research. The rating is determined
by subtracting a fund’s risk score from its return score. Multi-cap: Mostly invested in large- and mid-cap
companies.
FUND
The result is assigned stars according to the following
distribution: Mid-cap: Mostly invested in mid-cap companies. RAISER 0.57
0.62
0.67

 Top 10% Small-cap: Mostly invested in small-cap companies. 0.52

88.9%
 Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
 Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
 Next 22.5% 100 listing) Income: Average maturity varies according to objective. 0.15
  Bottom 10% Gilt: Medium- and long-term; invest in gilt securities.
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more
of the total AUM of
less than three years old have been excluded. This ensures than 60%. equity diversified Kotak IIFL Dy- Axis All Aditya Axis
that all the funds have existed long enough to be tracked for schemes in November All namic Seasons Birla Sun Dynamic
Debt-oriented aggressive: Average equity exposure
consistency of performance. Given the focus on long-term Weath- Bond Debt Life Ac- Bond Fund
investing, liquid funds, short-term funds and FMPs are not
between 25-60%. 2022 comprised BSE 500 er Debt Fund FoF tive Debt
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure index stocks. FOF Multi
the growth option of funds that reinvest returns instead of less than 25%. % AS ON 30 NOV 2022

offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity % EXPENSE RATIO IS CHARGED ANNUALLY.
Despite these rigorous filters, the list includes 2/3 funds of and derivatives.
METHODOLOGY OF TOP 100 FUNDS ON
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per WWW.WEALTH.ECONOMICTIMES.COM
The fund categories are: market conditions.
 loans and
18 The Economic Times Wealth December 26-January 1, 2023

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

TENURE: 1 YEAR
Interest rate (%) What `10,000
HOME LOAN RATES
compounded qtrly will grow to
With effect from October 2019, all banks have made the transition to
DCB Bank 7.25 10,745
external benchmarks for pricing new home loans. Most banks have
Bandhan Bank 7.00 10,719
RBL Bank 7.00 10,719
picked the RBI repo rate as the external benchmark.
Karnataka Bank
Axis Bank
6.80
6.75
10,698
10,692
REPO RATE: 6.25%
FOR SALARIED FOR SELF-EMPLOYED (%)
TENURE: 2 YEARS BANK
RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
DCB Bank 7.85 11,682
Axis Bank 8.10 8.60 8.95 8.70 9.05 Not Given
IDFC First Bank 7.50 11,602
SBI Term Loan 8.15 8.55 9.05 8.55 9.05 1 Oct 2022
Federal Bank 7.25 11,545
SBI Max Gain 8.15 8.95 9.45 8.95 9.45 1 Oct 2022
Indusind Bank 7.25 11,545
AU Small Finance Bank 7.20 11,534 Dhanlaxmi Bank 8.15 9.00 9.65 9.50 10.15 1 Nov 2022
Punjab & Sind Bank 8.29 8.70 9.70 8.70 9.70 8 Dec 2022
TENURE: 3 YEARS
DCB Bank 7.85 12,627 Kotak Mahindra Bank 8.30 8.30 9.00 8.40 9.10 Not Given
AU Small Finance Bank 7.75 12,589 IDBI Bank 8.50 8.40 10.15 8.50 11.65 12 Oct 2022
IDFC First Bank 7.50 12,497 J & K Bank 8.50 8.50 8.90 8.50 8.90 11 Oct 2022
Union Bank of India 7.30 12,424 HDFC Bank 8.65 8.60 9.50 8.60 9.50 Not Given
Axis Bank 7.00 12,314
Karnataka Bank 8.67 8.67 9.99 8.67 9.99 1 Nov 2022
TENURE: 5 YEARS Bank of Maharashtra 8.70 8.00 9.70 8.20 10.20 7 Nov 2022
DCB Bank 7.60 14,571
Union Bank of India 8.70 8.25 10.10 8.25 10.10 11 Oct 2022
AU Small Finance Bank 7.20 14,287
Indian Overseas Bank 8.75 8.50 9.05 8.50 9.05 10 Oct 2022
Axis Bank 7.00 14,148
City Union Bank 8.75 11.50 14.00 11.50 14.00 10 Oct 2022
HDFC Bank 7.00 14,148
ICICI Bank 7.00 14,148 Canara Bank 8.80 8.55 10.80 8.55 10.80 7 Dec 2022
Bank of Baroda 8.85 8.60 10.20 8.65 10.30 8 Dec 2022
Indian Bank 8.95 8.50 9.65 8.50 9.65 8 Dec 2022
Top five senior citizen bank FDs Punjab National Bank 9.00 8.55 9.20 8.55 9.20 8 Dec 2022
Interest rate (%) What `10,000
TENURE: 1 YEAR compounded qtrly will grow to Central Bank of India 9.10 8.20 9.00 8.20 9.00 1 Oct 2022
DCB Bank 7.75 10,798 Bank of India 9.10 8.30 14.25 8.30 14.25 1 Oct 2022
Axis Bank 7.50 10,771 UCO Bank 9.15 8.75 8.95 8.75 8.95 8 Dec 2022
Bandhan Bank 7.50 10,771
ICICI Bank 9.25 8.60 9.35 8.70 9.50 Not Given
RBL Bank 7.50 10,771
Canara Bank 7.25 10,745

TENURE: 2 YEARS
DCB Bank 8.35 11,797
Your EMI for a loan of `1 lakh
IDFC First Bank 8.00 11,717 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
Axis Bank 7.75 11,659
@ 7% 1,980 1,161 899 775 707
Federal Bank 7.75 11,659
Indusind Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.35 12,814
@ 9% 2,076 1,267 1,014 900 839
AU Small Finance Bank 8.25 12,776
@ 10% 2,125 1,322 1,075 965 909
IDFC First Bank 8.00 12,682
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
Axis Bank 7.75 12,589
FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
Bandhan Bank 7.50 12,497

TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
­investment (`)
Maximum
­investment (`)
Features
Tax
benefits
DCB Bank 8.10 14,932
Axis Bank 7.75 14,678 Sukanya Samriddhi Yojana 7.60 250 1.5 lakh p.a. One account per girl child 80C
AU Small Finance Bank 7.70 14,642
HDFC Bank 7.50 14,499 Senior Citizens' Savings Scheme 7.60 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
ICICI Bank 7.50 14,499
Public Provident Fund 7.10 500 1.5 lakh p.a. 15-year tenure, tax-free returns 80C

Kisan Vikas Patra 7.00 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 6.80 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 5.50-6.70 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.60 14,571
AU Small Finance Bank 7.20 14,287 Single 4.5 lakh 5-year tenure, monthly returns Nil
 ost Office Monthly Income
P
Axis Bank 7.00 14,148 6.70 1,000
Scheme
Joint 9 lakh 5-year tenure, monthly returns Nil
City Union Bank 7.00 14,148
HDFC Bank 7.00 14,148 Recurring deposits 5.80 100 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
(ETIGDB@TIMESGROUP.COM) Data as on 22 December 2022 # Benefit available only for 5-year deposit
 market watch
The Economic Times Wealth December 26-January 1, 2023 19

ALTERNATIVE INVESTMENT
RETURNS MONITOR
The scope and attractiveness of alternative investments is increasing. Here’s a weekly tracker of returns from such investments. But don’t
compare these with returns from traditional investments since the proportion and purpose of alternative investments is vastly different.

Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
47,912 54,480 61,520 67,605 968.01 996.51 72.86 78.14
22 DEC 2021 22 DEC 2022 22 DEC 2021 22 DEC 2022 22 DEC 2021 22 DEC 2022 22 DEC 2021 21 DEC 2022

PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER

CHANGE
X 1 WEEK 1.49% 1 WEEK 1.56% 1 WEEK -1.24% 1 WEEK 2.67%
X 1 YEAR 13.71% 1 YEAR 9.89% 1 YEAR 2.94% 1 YEAR 7.25%

PENNY STOCKS UPDATE

Penny stocks as a recommended non-traditional investment? Not exactly. ET WEALTH
neither has the expertise nor does it recommend investing in such stocks. But since the
relatively ‘low’ cost of investment attracts some investors to penny stocks, we provide
a weekly snapshot of this most volatile and uncertain type of stock investing.

Top price gainers Top volume gainers

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR)

Adcon Capital Services 2.25 25.70 171.08 3.97 650.74 74.57 Nouveau Global Ventu. 1.40 4.48 10.24 9.14 11,155.14 25.97
Maharashtra Corporation 2.60 -5.45 157.43 26.93 511.70 164.22 Premier Capital Serv. 6.40 -8.57 -4.76 5.45 1,341.53 23.74
Excel Realty N Infra 0.52 13.04 73.33 44.23 -59.09 73.36 GG Engineering 1.47 -8.70 -11.98 80.73 1,178.47 55.96
Visagar Financial Serv. 2.14 10.88 56.20 7.47 368.66 20.87 Kaushalya Infrastructure 4.92 -10.87 12.59 0.76 911.29 17.04
Libord Finance 8.93 2.64 53.44 0.02 83.11 14.02 Soma Textiles & Ind. 9.69 15.77 25.84 0.25 857.84 32.01
Bombay Talkies 4.15 15.28 53.14 0.03 -100.00 22.41 Alstone Textiles (India) 2.10 16.67 -36.56 17.11 744.99 267.75
Regent Enterprises 4.80 12.94 47.24 2.37 -30.34 16.06 Tijaria Polypipes 6.71 -3.31 44.61 0.49 702.05 19.21
Gyscoal Alloys 4.11 20.53 45.23 4.25 272.69 65.06 Supremex Shine Steels 4.91 -17.62 37.15 2.20 699.56 15.47
Tijaria Polypipes 6.71 -3.31 44.61 0.49 702.05 19.21 Adcon Capital Services 2.25 25.70 171.08 3.97 650.74 74.57
Vintron Informatics 2.05 25.77 44.37 0.17 110.22 16.07 WinPro Industries 3.89 -6.27 -16.34 3.75 586.91 38.88

Top price losers Top volume losers

Symbiox Investment 4.53 -10.47 -49.10 6.28 -60.37 14.17 Sintex Industries 4.96 -22.26 -33.24 4.69 -100.00 297.20
Alstone Textiles (India) 2.10 16.67 -36.56 17.11 744.99 267.75 Visesh Infotecnics 0.56 -8.20 -9.68 45.19 -75.37 211.37
Pressure Sensitive Syst. 7.35 -9.26 -34.67 1.39 -25.50 109.07 Prismx Global Ventures 2.61 -4.04 -11.53 2.88 -74.44 113.38
Sintex Industries 4.96 -22.26 -33.24 4.69 -100.00 297.20 Colorchips New Media 9.95 -9.63 -28.05 3.17 -70.41 84.62
Colorchips New Media 9.95 -9.63 -28.05 3.17 -70.41 84.62 Reliance Naval & Eng. 2.33 -7.54 -15.88 3.20 -69.83 171.86
Greencrest Financial Ser. 2.03 -8.97 -28.01 14.69 -58.85 74.20 Symbiox Investment 4.53 -10.47 -49.10 6.28 -60.37 14.17
Saianand Commercial 0.52 -7.14 -25.71 30.75 250.03 11.81 Excel Realty N Infra 0.52 13.04 73.33 44.23 -59.09 73.36
Arshiya 7.51 -24.52 -24.82 2.81 87.85 197.89 Greencrest Financial 2.03 -8.97 -28.01 14.69 -58.85 74.20
Ontic Finserve 2.50 -9.09 -23.31 34.97 223.28 22.50 Shree Global Tradefin 5.59 11.13 14.78 19.04 -51.10 711.10
Shree Ganesh Biotech 1.40 -10.26 -22.65 60.08 131.73 55.80 Advik Capital 2.90 -3.97 -13.69 3.61 -49.32 63.86

STOCKS HAVE BEEN SELECTED USING THE FOLLOWING FILTERS: PRICE LESS THAN `10, ONE-MONTH AVERAGE VOLUME GREATER THAN OR EQUAL TO 1 LAKH, AND MARKET
CAPITALISATION GREATER THAN OR EQUAL TO `10 CRORE. DATA AS ON 22 DECEMBER 2022. SOURCE: ETIG DATABASE AND BLOOMBERG.
 mutual funds
20 The Economic Times Wealth December 26-January 1, 2023

AXIS FOCUSED 25

Not flavour of the moment

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 31.91

FUND BENCHMARK CATEGORY AVERAGE FACTS Services 14.55

Technology 11.67
DATE OF LAUNCH
18.30 29 JUNE 2012 Chemicals 11.08
15.51 CATEGORY
11.81 12.48
10.33 EQUITY Materials 8.08
7.20 8.99 8.94
TYPE
-9.11 FLEXI CAP The fund portfolio is heavily
tilted towards financials.
1-YEAR 3-YEAR 5-YEAR AUM*
`17,894 Crore
BENCHMARK
Top 5 stocks in portfolio (%)
AS ON 20 DECEMBER 2022
The fund has sharply lagged index
and peers over the past year. NIFTY 500 TOTAL Bajaj Finance 8.77
RETURN INDEX
Avenue 8.74
Supermarts

Rolling returns (%)

WHAT IT Tata Consultancy
Services 8.35

COSTS
FUND BENCHMARK
Pidilite Industries 7.43
16.22
Kotak Mahindra
1-YEAR Bank 7.38
16.38 NAV**
GROWTH OPTION The fund runs a very compact portfolio
`40.13 featuring outsized positions in its top bets.
14.86
3-YEAR IDCW
12.44 `19.15
MINIMUM INVESTMENT Recent portfolio changes
15.19 `500
5-YEAR New Entrants
MINIMUM SIP AMOUNT
12.43 LTIMindtree.
`100
EXPENSE RATIO*** (%)
The fund’s long term track record indicates Complete Exits
AS ON 20 DECEMBER 2022 1.75
healthy outperformance over longer time frames. Samvardhana Motherson International,
EXIT LOAD MindTree.
Note: Different benchmark (S&P BSE 500 TRI) is used due to non availability of stated benchmark data.
The above figures denote daily average rolling return over past decade for relevant time frames. For units in excess of 10%
of the investment,1% will Increasing allocation
be charged for redemption
PI Industries, Sona BLW Precision Forgings
WHERE THE FUND INVESTS
within 365 days
*AS ON 30 NOVEMBER 2022
(Oct), Apollo Hospitals Enterprise, Asian
**AS ON 20 DECEMBER 2022 Paints, Motherson Sumi Wiring India,
***AS ON 30 NOVEMBER 2022 Pidilite Industries, Reliance Industries, Tata
Portfolio asset Fund Consultancy Services (Nov).
allocation style box
Growth Blend Value
How risky is it?
Large

Equity 99.62%
CAPITALISATION

Fund Category Index

Large-cap 90.05%
Standard Deviation 23.09 21.62 22.63
Medium

Mid-cap 9.54%
Small-cap 0.41% Sharpe Ratio 0.40 0.66 0.74
Small

Mean Return 12.75 18.04 20.39

FUND
Debt & Cash 0.38%
BASED ON 3-YEAR PERFORMANCE.

MANAGER
INVESTMENT STYLE
The fund’s risk-return profile
The fund retains its large cap bias, JINESH GOPANI has weakened in recent years.
with modest presence in mid caps. TENURE: 6 YEARS, 5 MONTHS
Source: Value Research

Should
The funds runs a focused manager comfortable paying has sagged in recent years. towards value has left its
approach, comprising a highly a premium for select stocks After putting in consistent growth-led engine cold. While

You compact portfolio of the fund

manager’s highest conviction
that fit within its strict quality
and growth framework. The
outperformance through 2017-
20, it has seen two years of
the fund manager has proven
execution capabilities, woes
Buy bets. It features a distinct
large cap bias with the fund
fund boasts an impressive
long term track record, but
severe underperformance. The
market’s shifting preferences
may persist till climate turns
favourable for growth style.
 pick of the week
The Economic Times Wealth December 26-January 1, 2023 21

Laurus Labs: Promising outlook

Strong prospects for business segments, robust R&D profile and capacity expansion to boost growth.

P Fundamentals
harmaceutical and biotechnology company Laurus plan to add 1 million litres of fermentation capacity.
Labs reported decent performance in the second The ARV (generic FDF + API) segment will be driven by
rising demand for generic and biosimilar drugs and the ex- CONSENSUS
quarter of 2022-23 with a 30.9% y-o-y revenue growth. ACTUAL
ESTIMATE
This was supported by robust growth in synthesis pansion of the HIV drug market. However, the segment’s per-
2021 2022 2023 2024
and non-ARV (anti-retroviral) API segments. However, the formance was subdued in the second quarter due to increased
Revenue (` cr) 4,723.22 4,888.54 6,365.01 7,050.23
price erosion in the ARV segment and elevated operational competition and adverse pricing dynamics.
EBITDA(` cr) 1,551.53 1,404.31 1,860.38 2,080.67
costs dragged net profit, which grew 15.6% y-o-y. Third, the company has a strong focus on R&D that aims
Laurus Labs offers a diverse product portfolio that includes to improve manufacturing process efficiencies to maintain Net Income (` cr) 983.98 828.31 1,038.23 1,179.57

generic FDF (finished dosage form), cost competitiveness. It is follow- Basic EPS (`) 18.29 15.36 19.51 22.31
CDMO-synthesis, Bio and generics- ing a product-specific approach
API. The majority of Bloomberg an-
Analysts’ views and moving up in the value chain Valuations PBV PE
DIVIDEND
YIELD (%)
alysts are confident about the pros- by investing in complex generics.
2 Laurus Labs 6.27 24.20 0.51
pects of Laurus for multiple reasons. It has developed a unique novel
First, the company will benefit
Hold 10 drug delivery for pediatric HIV Sun Pharmaceuticals Ind. 5.05 59.08 0.99
Buy Divi's Laboratories 7.91 31.02 0.86
from the growth prospects of the and commissioned a lab for a ster-
Cipla 4.35 35.31 0.45
pharma industry. The global spend- ile injectable project.
Dr. Reddy's Laboratories 3.77 23.29 0.69
ing on medicines is expected to Laurus is also expanding capac-
grow at 3-6% CAGR to $1.8 trillion
by 2026, including spending on covid
2
ity and commissioned 10 billion
units in non-ARV business during Brokerage calls TARGET
vaccines and novel therapeutics, ac- Sell the second quarter. It aims to in- RECO DATE RESEARCH HOUSE ADVICE PRICE (`)

cording to the company’s 2022 annu- crease the formulation capacity by 15 Dec 2022 Spark Capital Advis. Add 430
al report. It also cites CARE Ratings another 5 billion in the next finan- 13 Dec 2022 DAM Capital Buy 582
estimates, which say that the domes- Laurus Labs will benefit from the growth prospects cial year. The company has made 22 Nov 2022 Motilal Oswal Buy 610
tic pharma industry could grow at of the global and domestic pharma indutry as a greenfield investment to set up 22 Nov 2022 Antique Stock Broking Hold 444
an annual rate of 11% over 2021-23 to spending on medicines, including Covid-19 vaccines, an R&D center for the Synthesis 28 Oct 2022 Elara Capital Accumulate 500
reach more than $60 billion in value. is likely to increase at 3-6% CAGR by 2026. division at Hyderabad and three
Second, various business seg-
ments of Laurus are expected to witness reasonable growth
manufacturing units in Vizag.
Selection methodology: We pick the stock that has shown
Relative performance SENSEX
108.0
100 MARKET PRICE: `391.10
in the future. The CDMO-Synthesis segment will be driven the maximum increase in ‘consensus analyst rating’ during 97.0
by traction in existing commercialised molecules, new cus- the past month. The consensus rating is arrived at by averag- 80.6
tomer additions, favourable demand tailwinds and a recent ing all analyst recommendations after attributing weights to
multi-year contract win. each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and
The API segment is supported by product development in 1 for strong sell). An improvement in consensus analyst rating
anti-diabetic, cardiovascular and gastroenterology thera- indicates that the analysts are getting bullish on the stock.
peutic areas and capacity expansion in high potent areas. Only stocks with at least 10 analysts covering them are con-
The Bio segment is expected to gain significant traction with sidered. You can see similar consensus analyst rating changes 21 DEC 2021 ET PHARMA LAURUS LABS 22 DEC 2022
capacity scale-up in alternate food proteins and an expansion during the past week in ETW 50 table. —Sameer Bhardwaj Laurus Labs is compared with ET Pharma. Stock price and index values
normalised to a base of 100. Source: ETIG and Bloomberg.

WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
*STOCK PRICES AS ON 22 DECEMBER

STOCK ADVICE COMMENT

HOUSE PRICE* (`) PRICE (`) UPSIDE (%)

Initiate with ‘Buy’ as it will benefit from opportunities in 5G and defence. Strong R&D, capacity ex-
HFCL Arihant Capital Buy 83 127 53.0 pansion, product portfolio expansion and a strong client base are key growth drivers.
Rate ‘Buy’ due to the GST rate cut on ethanol meant for blending, leadership in domestic ethanol
Praj Industries Prabhudas Lilladher Buy 370 520 40.5 plants, global presence, focus on future-ready technologies, and diversification in wastewater
treatment.
Reiterate ‘Buy’ due to robust proprietory channel growth, promoter commitments to bring down
Max Financial Emkay Buy 702 930 32.5 pledge and attractive valuations. Also, the corporate structure simplification will aid in growth
revival.
Product and distribution synergies from Sunflame acquisition, focus on premium products, strong
V-Guard Industries PhillipCapital Buy 261 315 20.7 cash flows and likely improvement in margins and market share in the future.
Demand momentum to continue over next 2 years, improvement in ARR and occupancy rates, boost
Indian Hotels Motilal Oswal Buy 327 390 19.3 to growth from new and re-imagined business, and higher income from management contracts.
Reiterate ‘Buy’ due to expectations of robust growth from the replacement segment and industrial
Amara Raja Batteries Sharekhan Buy 641 756 17.9 battery segment. Robust market share, strong brand equity, extensive distribution network and
comfortable valuations are other positives.

REDUCE RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Kotak High cost of funds differential with frontline banks, requirement of signficant investments, and
YES Bank Sell 22 16 -27.3
Securities unsustainable valuations. The current loan book is targeting segments that offer little advantage.
 tax optimiser
22 The Economic Times Wealth December 26-January 1, 2023

NPS, health plan cut tax to zero

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

H
yderabad-based software
professional Tarun Sapra
pays a low tax even though
his salary is not very
tax friendly. But he can INCOME
optimise his tax outgo by claiming
all the deductions available to him.
FROM EMPLOYER
Taxspanner estimates that Sapra can
reduce his tax to zero if he opts for the
NPS benefit offered by his company
and also invests in NPS on his own.
INCOME HEAD CURRENT SUGGESTED
Sapra’s taxable income before deduc-
tions is `11.39 lakh. If the net taxable
income (after all deductions) can be Basic salary 6,02,000 6,02,000
reduced to less than `5 lakh, then one
can claim full tax relief under Sec 87A House rent allowance 3,01,000 3,01,000 Reduce this taxable
portion of the pay
and reduce the tax to zero. Sapra claims package.
HRA exemption for `2.84 lakh and Special allowance 2,36,400 1,21,200
invests the maximum `1.5 lakh under
Section 80C. With the standard deduc- Telephone and internet 6,000 6,000
tion of `50,000, these bring down his net
taxable income to a little over `7 lakh. Conveyance reimbursement 0 24,000 These perks are tax
Here’s how he can cut it further. free on submission
As a first step, Sapra should opt for Newspaper allowance 0 9,000 of bills and subject
to actual usage
the NPS benefit offered by his com-
within reasonable
pany. Under Sec 80CCD(2), up to 10% Food coupons 0 22,000 limits.
of the basic put in NPS is tax-free. If
his company puts `5,016 (10% of his Employer's contribution to Provident Fund 72,240 72,240 Up to 10% of basic
basic pay) in the NPS every month, his salary put in NPS is
taxable income will reduce by `60,200. tax deductible.
Contribution to NPS under Sec 80CCD(2d) 0 60,200
It can reduce by another `50,000 if he
invests in the scheme on his own under TOTAL 12,17,640 12,17,640
Sec 80CCD(1b). At 27, Sapra should put
the maximum 75% in equity funds.
Next, he should ask his company for
some basic tax-free perks. If he gets INCOME FROM OTHER SOURCES
conveyance reimbursements of `24,000 Reduce tax by
(`2,000 a month), a newspaper allow- Interest income 2,300 0 opting for debt
ance of `9,000 (`750 a month) and food funds.
Capital gains 0 0
coupons worth `22,000, his taxable
income will reduce by `55,000. Rental income 0 0
If he buys medical cover with `45,000
for himself and his parents, his net tax- TOTAL 2,300 0
able income will fall below `5 lakh. All figures are in `

Tax-saving investments Denotes suggestion to increase Denotes suggestion to reduce

INVESTMENT CURRENT SUGGESTED

OPTION ( `) ( `)

Provident Fund 72,240 72,240

Life insurance 28,000 28,000

Tarun Sapra’s tax
PPF 10,000 10,000
TOTAL TAX SAVED WRITE
ELSS funds 40,000 40,000 Consider this
TAX ON TAX ON
TO US
`45,801
TAX ON OTHER CAPITAL
NPS under Sec 80CCD(1b) 0 50,000
new option to
save tax.
SALARY INCOME GAINS
FOR HELP
TOTAL ADMISSIBLE 1,50,000 2,00,000
CURRENT PER YEAR Paying too much
tax? Write to us
`45,323 478 0 at etwealth@
Other deductions `45,801 TAX RATIO timesgroup.com with
‘Optimise my tax’
(Total tax as % of annual income)
EXEMPTION OR CURRENT SUGGESTED as the subject. Our
DEDUCTION ( `) ( `) EXISTING SUGGESTED experts will tell you
Save tax SUGGESTED ( `) ( `) how to reduce your
HRA exemption 2,84,000 2,84,000 with health tax by rejigging your
Medical insurance 0 45,000
insurance
for self and
`0 0 0 3.8% 0% pay and investments.
parents. `0
TOTAL 2,84,000 3,29,000
 mutual funds
The Economic Times Wealth December 26-January 1, 2023 23

Switch out of equity funds PORTFOLIO

DOCTOR

for short-term goal Not many

ARINDAM
investors
know
Girish Sethi is investing for multiple goals. Here’s what the doctor has advised him: whether
1 2 3 4 5 6
they have
DOWNPAYMENT FIRST DAUGHTER’S SECOND DAUGHTER’S FIRST DAUGHTER’S SECOND DAUGHTER’S RETIREMENT
EDUCATION: 15 yrs MARRIAGE: 18 yrs MARRIAGE: 22 yrs INCOME: 13 yrs invested in
FOR HOUSE: 2 yrs EDUCATION: 11 yrs
GOALS

PRESENT COST: PRESENT COST: PRESENT COST: PRESENT COST: PRESENT COST:
PRESENT COST: the right
`1.5 crore
`20 lakh `30 lakh `28 lakh `30 lakh `30 lakh
(`50,000 a month)
funds and if their
FUTURE COST: FUTURE COST: FUTURE COST: FUTURE COST: FUTURE COST: FUTURE COST: fund portfolio is on
`22.9 lakh `80 lakh `1.17 crore `1 crore `1.33 crore `3.6 crore track. The Portfolio
PORTFOLIO FUND NAME AMOUNT EXISTING RECOMMENDED ACTION NEW SIP Doctor assesses the
CHECK-UP INVESTED (`) SIP (`) (`)
health of the fund
Started investing in Aditya Birla SL Flexicap 1,76,000
Shift SIP and corpus to short term debt fund.
15,000 Hike SIP to `50,000. 50,000 portfolio, examines the
equity funds 4-5 schemes and their
years ago. SBI Large & Midcap 26,000 5,000 Continue SIPs in this large and mid cap cap fund. 5,000
Goals are ambitious, 1 Axis Greater China Equity 20,000 5,000 Switch from this global fund to Axis Midcap. 5,000
suitability with regard to
but early start has PGIM India Large Cap 1,14,800 5,000 0
the goals and, if
helped. Shift SIPs and corpus to short term debt fund.
required, recommends
Nippon India Large Cap 2,00,000 5,000 0
Don’t invest in too
Parag Parikh Flexi Cap 2,28,000 12,500
Continue SIPs in this outperforming flexi cap
12,500
corrective measures. The
many funds. Just 5-6 fund. Increase amount by 10% every year.
schemes are enough. 2
Continue contributing to this scheme to build a tax
advice given is based on
Sukanya Samriddhi Yojana 5,00,000 6,250 free corpus. 6,250
For house goal, shift the performance of the
out of equity to debt. Canara Robeco Emerging Equities 1,29,000
Continue SIPs in this outstanding large and
5,000 midcap fund. Hike by 10% every year. 5,000 funds, the risk profile of
Note from Continue SIPs in this value fund. Increase the investor as well as
3 ICICI Pru Value Discovery 1,49,000 3,000 amount by 10% every year. 3,000
the doctor his financial goals.
Continue contributing to this scheme to build a
Retirement goals is Sukanya Samriddhi Yojana 5,00,000 6,250 tax free corpus. 6,250
too low at `50,000 Continue SIPs in this outperforming large and
per month. Consider Mirae Asset Emerging Bluechip 83,000 5,000 mid cap fund. Hike by 5% annually if AMC allows.
5,000 Assumptions used
raising it to `1 lakh. 4
PGIM India Midcap Opportunities 65,000 5,000
Continue SIPs in this outstanding mid cap fund.
5,000
in the calculations
Early retirement can Hike by 5% every year.
be achieved with reg- Continue SIPs in this well-performing large cap INFLATION
5 Axis Bluechip 1,72,000 10,000 10,000
ular investing. fund. Education For all
Switch from this value fund to Axis Midcap. Hike expenses other goals
Small 5-10% annual Kotak India Equities Contra 25,000 3,500 SIP amount by 5% every year.
3,500
hike in SIPs needed.
Review investments
Mirae Asset S&P 500 Top 50 ETF 21,000 5,000
Continue SIPs in this global fund. Increase SIP
amount by 5% every year.
5,000 10% 7%
6
and rebalance at least Continue contibutions in this retirement scheme.
Provident Fund and PPF 64,53,000 15,000 Do not withdraw before retirement. 15,000
once in a year. RETURNS
NPS 7,00,000 16,000
Continue investing in this low-cost pension
16,000 Equity funds Debt options
Reduce risk when goal scheme. Opt for maximum equity exposure.
is near so that you ,
don’t miss the target. TOTAL `95,61,800 `1,27,500 The goals can be reached using the mutual
funds marked in the same colour. `1,52,500 12% 8%

Start systematic transfer for marriage

PORTFOLIOS
ANALYSED BY

RAJ KHOSLA,
Managing Director
1 2
Rakesh Awasthi is saving for DAUGHTER’S MARRIAGE:
PORTFOLIO and Founder,
MyMoneyMantra
CHECK-UP
GOALS

DAUGHTER’S EDUCATION: 2 yrs

his daughter’s goals. Here’s PRESENT COST: `24 lakh
5 years
CURRENT NEED: `35 lakh Investing in equity
what the doctor has advised: FUTURE COST: `29 lakh FUTURE COST: `49.1 lakh funds and stocks for WRITE
AMOUNT EXISTING
past 8-10 years. TO US
FUND NAME INVESTED (`) SIP (`) RECOMMENDED ACTION Education goal too
near so needs to pro-
FOR HELP
If you want your portfolio examined,
DSP Midcap 4,00,673 5,000 tect capital. write to etwealth@timesgroup.com
Switching out of equity funds to short-term debt scheme ICICI Pru Marriage goal also near with “Portfolio Doctor” as the subject.
Axis Focused 25 8,10,358 15,000 Short Term to protect capital. Start SIP of `35,000
1 Mention the following information:
so start withdrawing
Parag Parikh Long Term Equity 1,31,056 5,000 2-3 years from now. z Names of the funds you hold.
z Current value of the investment.
Fixed deposits 4,25,000 0 Review investments z If you have SIPs running in any
Continue SIPs in this stable index fund. Increase amount by 5% every and rebalance at least of them.
UTI Nifty 50 53,456 5,000 z The financial goals for which you
year. once in a year.
2 invested.
Continue investing in this outstanding large and mid cap fund.
Mirae Asset Emerging Bluechip 11,05,000 25,000 Reduce risk when goal z How much you need for each
Increase by 5% every year if AMC permits.
is near so that you financial goal.
z How far away is each goal.
TOTAL `29,25,543 `55,000 don’t miss the target.
 your feedback & more...
24 The Economic Times Wealth December 26-January 1, 2023

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.
The article ‘Why bank deposits can’t reading ET Wealth regularly for a number
match debt fund returns’, drove home
Timely and helpfull
of years, I wish to thank Uma Shashikant
the point that investing money in debt and Dhirendra Kumar for their sterling
funds is a better option than investing advice and philosophy, as expressed in
in fixed deposits. But at the same time,
I believe that investments in debt funds
story on debt fundss their columns. They are the only people
whose advice I follow unquestioningly,
require good knowledge of indexation Alarm bells are ringing about how a without critical evaluation in my mind, and
benefit, revision of asset prices, etc, global recession is inevitable in 2023. I feel I have benefited from their advice
unlike fixed deposits, which are not Even if India isn’t affected directly, significantly, both in my investing as well
difficult to understand. One always our economy is bound to suffer. The as my personal habits.
wishes to keep an investment portfolio stock markets will likely feel the im- Eruch Batliwala
simple. All that one needs to know in pact the most, becoming extremely
term deposits is that if the interest volatile. I believe we should start I would like to convey my heartfelt
amount exceeds the limit of `40,000 a focusing on how to keep our finances gratitude to the team for for bringing out
year, then it will attract the provisions secure and debt funds are one of the ET Wealth week after week. I have been
of the Income Tax Act. We can by all best ways to do so. Your cover story a big fan of it for years and consider it
means avoid that. on the same has reinforced my belief my go-to source for my personal finance
S. Ramakrishnasayee that I’m on the right path. decision making. I think I have achieved
Rishi Aggarwal financial independence due to it. I say
The story, ‘10 ways to steady your this as I am confident of what returns
finances’, was simple and to the point. I can possibly make rather than just
While I was familiar with some of the achieving a certain corpus. As Uma
concepts, such as emergency corpus and Shashikant says, the confidence comes
credit score, the others like liquidity and Uma Shashikant’s column, ‘Down with insecurity about who would take care more from conceptual clarity than just
savings ratio were interesting to learn. I entitled inheritors’, correctly reflects of them in their old age if they offend the cold numbers. Of course, the validation
think these numbers should be reiterated what is happening in our society today. children today. also comes from the various articles and
time and again as these are the building Actually, it is very difficult for the Alok Gupta segments like ETW Funds 100, Q&A,
blocks of prudent financial planning. parents to put their foot down, probably columns by Dhirendra Kumar, etc.
Savita Phule due to the selfish reason and the As a 76-year-old investor who has been Rajesh Reddy

REALTY Emerging suburb in Noida

HOT SPOT Sector 150 in the city is close to several corporate offices and is well connected to Delhi.

Supply by BHK
LOCALITY SNAPSHOT 67%

SECTOR 150, NOIDA

Sector 150 is a developing residential area situated at the intersection of Noida and Yamuna Expressways.
19%
Besides both the expressways, Aqua Metro Line also provides connectivity to Noida and Delhi. 14%
Hosts several high-rise apartment projects by prominent developers such as Godrej, Tata, ATS, and Eldeco.
Key employment centres: Advant IT Park (9 km), Unitech Info Space (10 km) and Oxygen Business Park (9 km). 2 BHK 3 BHK 4 BHK
Hospitals*: Kailash Hospital, Yatharth Hospital | Schools*: JP International, Greater Valley | Retail*: Ansal Plaza Mall.
Consumer preference
by budget (`)
PRICE RANGE: `5,100-10,500 psf DISTANCES: IGI Airport: 46 km Hazarat Nizamuddin Railway Station: 20 km Noida Expressway: 3 km

SECTOR VALUES 13%

2 BHK 17% Below 50 lakh
750 (sqft) Hi
nd 50 lakh-1 crore
on Sector 150
`63 Ri
ve
r Ex
pw
ay
34% 36%
1-1.5 crore
Aq

lakh (avg) ida Price (`/sqft): Above 1.5 crore

u

No
a

-G
Li

ida 6,800-10,500
ne

No
3 BHK 3 BHK Rent (`/month): 23,000-35,000
Ya

Noida Oxygen
1,250 (sqft) Consumer preference
mu

Business

1.07
`crore Park Sector-151
by carpet area (sqft)
na
Ex

(avg)
Ya
m Sector 151
pre

Unitech G. Noida un 10%

Advant aR
ssw

Info Space
IT Park ive
r Price (`/sqft): 9% 18% Below 800
ay

Sector-150 800-1,150
>3 BHK 5,100-6,800 1,150-1,500
1,850 (sqft)
Sector-150 2 BHK Rent (`/month): 12,000-20,000 30% 33% 1,500-1,850
1.70
`crore Faridabad Above 1,850
(avg)
Note: Map not to scale *Within 10 km radius

Schools 5+ Hospitals 5+ Restaurants 5+ Banks 5+ Grocery Stores 10+ Petrol Pumps 5+ In dia’s No. 1 P ropert y Sit e

The Economic Times Wealth is available at an invitation price of `8/issue. To book your copy, contact your newspaper vendor or call 011 - 39898090; Email: crm.delhi@timesgroup.com; SMS ETWS to 58888

The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of
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
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times
Wealth will not be liable for any direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions.
PUBLISHED FOR THE PROPRIETORS, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110 002,
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. Regd. Office:
Dr Dadabhai Naoroji Road, Mumbai 400 001. EDITOR: Babar Zaidi (Responsible for selection of news under PRB Act). © Reproduction in whole or in
part without written permission of the publisher is prohibited. All rights reserved.
RNI NO. DELENG/2011/37994. MADE IN NEW DELHI VOLUME 12 NO. 52