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Best
BUILD
EMERGENCY PURCHASE
FUND VEHICLE

INVEST FOR
INVEST CHILD
IN PPF

ways
SAVE FOR
RETIREMENT
to use
PREPAY
HOME
LOAN

your
bonus Here are some smart
ways to use the
surplus cash coming
your way soon. P2
 cover story
02 The Economic Times Wealth April 24-30, 2023
Best ways
to use your
bonus
Here are some smart
ways to use the
surplus cash coming
your way soon.
PHOTOS: GETTY IMAGES
By Babar Zaidi
T
he average salary incre-
ment will be 10% this year,
according to a survey by
global consultancy firm
WTW. Sadly, the inflation
ogre will gobble up a big slice of this
raise. But the cherry on the cake–the
annual performance bonus–will be
yours to spend. Many of us may have
already firmed up plans on how to
use the bonus. Before you blow it all
away, consider using the money to
improve your finances. “You should
identify the gaps in your financial
plan and then use the bonus money to
fill those gaps,” says Naveen Kukreja,
CEO and Co-founder of Paisabazaar.
com. Start by asking yourself a few
basic questions. The answers will
help you decide how you should spend
that money.
#1 DO YOU HAVE AN
EMERGENCY FUND?
Keep at least 6-12 months of
How many EMIs you can reduce
expenses in a contingency fund Impact of `2 lakh prepayment on `50 lakh home loan at 9%.
If you get a good raise and a generous
NEW TENURE AFTER `2
bonus this year, consider yourself REMAINING TENURE EMI (`)
LAKH PREPAYMENT
YOU SAVE
lucky. Elsewhere, people have lost
jobs or got no increment. This is why 10 years 63,337 9 years 5 months 7 EMIs
experts recommend that everyone
should maintain an emergency fund
that can be easily accessed at short
15 years 50,713 13 years 11 months 13 EMIs
notice. “If you don’t already have an
emergency fund, setting up one with
20 years 44,986 18 years 24 EMIs
your bonus money should be the first
thing to do,” says Kukreja.
The thumb rule is to have enough
stashed away to cover 3-6 months of
expenses, including loan EMIs and
insurance premiums. However, in
the current situation where a lot of
Longer the remaining tenure, the more EMIs are saved by prepayment
start-ups are folding up and finding
another job is not easy, one may need More EMIs will be saved if home loan rates are hiked further.
a bigger buffer. “People employed in
 cover story
The Economic Times Wealth April 24-30, 2023 03

established companies and holding stable

jobs can keep a corpus to sustain up to 6 Buy life insurance for yourself
months’ expenses, but those employed in Cost of `1 crore life cover till the age of 65.
start-ups or newer companies should have
a bigger buffer of 9-12 months’ expenses,” AGE TERM SINGLE PREMIUM (`) REGULAR PREMIUM (`)
says Kukreja.
An emergency fund should be available 30 35 2.42 lakh 12,545
at short notice so don’t keep the money in
volatile or illiquid instruments. Go for 35 30 2.83 lakh 16,149
liquid funds, short duration debt funds or
a sweep-in savings account which puts the 40 25 3.33 lakh 20,264
money above a specified threshold in fixed
deposits to earn slightly better returns.
45 20 3.85 lakh 28,166
You may not earn too much from this in- Premiums for Max Life online term insurance.
vestment, but that doesn’t matter.
It is also very important that this money
is not used unless there is a real emer-
gency. Dipping into it time and again for
discretionary spending will defeat the
purpose of the emergency fund. Also, if
you have used it to fund an emergency,
Piyush Sinha
replenish as soon as you get enough liquid-
27 years, Delhi
ity. That’s what Maya V.M. (see picture)
intends to do with her bonus this year. The Bonus expected
Thiruvananthapuram-based risk analyst
dipped into her emergency fund for some
unexpected expenses earlier this year and
`1.5 lakh
wants to replenish the corpus. This finance professional
uses his bonus for one-off
#2 DO YOU HAVE ADEQUATE
INSURANCE?
expenses such as insurance
payments, big-ticket
A medical cover for the family and purchases or even vacation
life cover for the breadwinner are travel. His plan this year
absolutely necessary is to either prepay a
The pandemic made us aware of the im- personal loan or use it for
portance of health insurance. Yet, many downpayment to buy a
people keep putting off this critical step for vehicle.
some reason or the other. The most com-
mon excuse is: “I know health insurance is
important but I don’t have the money right
now”. The question is, if you don’t have
`25,000-30,000 to buy a health plan, where
“One-off expenses can derail monthly budgets,
will you find the `2-3 lakh to pay for medi- so the bonus money comes handy.”
cal expenses in case of hospitalisation?
Don’t rely on the group cover from your
employer because it may not provide suf-
ficient coverage. Also, that cover will not
be available forever. Buy a family floater
health plan to cover all family members. A
`10 lakh floater plan that covers a husband,
wife and two kids will cost about `22,000-
30,000 a year depending on the age of the
oldest member. Keep in mind that health Maya V.M.
insurance premiums are eligible for tax de- 33 years,
duction, so the effective cost in the 30% tax Thiruvananthapuram
bracket will be roughly `15,000-22,000.
Similarly, everybody also needs ad-
equate life insurance cover that can effec-
Bonus expected
tively replace his or her income after set-
tling all outstanding debts. The thumb rule
`1 lakh
is to be covered for at least 8-10 times your
She dipped into her
annual income plus any outstanding debts.
emergency fund for an
Buy from an insurance company with a unexpected expense earlier
healthy claim settlement record and a good this year. Some part of the
reputation for customer orientation. bonus money will be used
The tenure of the policy is almost as to replenish the emergency
important as the cover it offers. Ideally, the fund and the balance will
cover should be till the age of 60-65 years. be used for holiday travel.
Don’t buy a short-term plan that will end
when you are in your 50s. Your insurance
needs are highest at that stage of life and
buying a new policy in your 50s will be very
costly. You might even be denied the cover
if you have developed a health condition.
“Maintaining an emergency fund is absolutely
For those who don’t want to pay the essential, especially in times like these.”
premium every year, companies have de-
signed limited premium payment plans.
You pay for 10-15 years though the cover
 cover story
04 The Economic Times Wealth April 24-30, 2023

continues for 30-35 years. Such limited

premium payment plans will be espe-
cially useful for those who plan to start
their own business after working for 10-15
years.
One may also consider buying a single
premium plan that pays the entire pre-
mium at one go. You may have to part with
your entire bonus for such a plan. On the
flipside, this one payment will take care of
your insurance needs for the rest of your
working life.
#3 ARE YOU PAYING A
HIGH-COST LOAN?
Prepaying such loans can save you
more than what you earn from fixed
income options
While salary hikes and bonuses are
something to celebrate, people with large
outstanding debts should use the surplus
cash to reduce their debt burden. High-
cost and long-term loans should be retired
as early as possible. “The longer the ten-
ure, the higher is the interest outgo. Just
like long-term investments build wealth
for you, long-term debt burdens you with
high interest,” says Raj Khosla, Managing
Director, MyMoneyMantra.com.
That’s something home loan custom-
ers should keep in mind. Home loan rates
have risen from 6.5% to more than 9% in
two years. When rates go up, extending
the tenure of a floating rate loan is the de-
fault response of lenders. A 20-year home
loan taken in 2019 at 6.5% has now ex-
tended to 31 years. Here is where the bonus
can come handy. A prepayment amount-
ing to four EMIs can reduce the tenure
of a 20-year loan by almost two years (see
graphic).
It can be argued that prepaying the
home loan takes away liquidity. This
dilemma can be addressed through home
loan saving accounts that most lenders
offer. Money put in the home loan saving
account reduces the outstanding loan and
accordingly brings down the EMI. But it
can be withdrawn anytime the borrower
is in need of cash.
For borrowers, a rupee saved is a rupee
earned. “A borrower saves 8.5-9% interest
by prepaying a home loan. It is very diffi-
cult to earn that kind of post-tax returns in
fixed income instruments,” says Kukreja.
The math is not lost on Delhi-based
finance professional Piyush Sinha (see
picture). He wants to use his bonus for the
downpayment of a new bike, but is also
considering paying off a personal loan
he took a few years back. It’s a toss up be-
tween how much he will pay for the vehicle
loan and the 10% he is paying on the per-
sonal loan.
#4 ARE YOUR LONG-TERM
GOALS ON TRACK?
Use the surplus cash to save for your
child’s higher education or your
retirement
How about using your bonus to beef up
your savings for long-term goals? That’s
what two-marshmallow investors gener-
ally do when they get a lump sum amount.
Where you put that money will depend on
your risk appetite as also the investment
horizon you have in mind. “Investors
with a high risk appetite and long-term
Sukanya scheme offers highest returns
PPF scores over bank deposits due to tax advantage.
INTEREST
INSTRUMENT
RATE (%)
Sukanya 8.00
PPF 7.10
RBI floating rate bonds 7.88
NSCs 7.70
Bank deposits 7.50
Kisan Vikas Patra 7.50
POMIS 7.40
Sujata and
Karan Rao
33 and 35 years,
Pune
Bonus expected
`3 lakh
They want to invest the
money in equity funds for
their daughter’s education.
Instead of putting it into
an equity fund at one go,
they will invest in a debt
fund and start a systematic
transfer plan of `20,000 into
the equity scheme.
“We have a long term investment horizon, but
don’t want to invest a large sum at one go.”
investment horizon of more than 5-6 years
should go for equity mutual funds,” advises
Kukreja. He says a combination of index
funds and flexicap schemes can yield de-
cent returns in the long term.
For moderate investors, Kukreja sug-
gests a mix of index, flexicap and balanced
advantage funds. Balanced advantage
funds change their asset mix depending on
the market levels, thus delivering stable
and better risk adjusted returns.
However, it may not be a good idea to
invest a large sum in equity funds at one go.
Instead, put the money in a short duration
debt fund and start a systematic transfer
plan into the equity scheme. For instance,
if you have `3 lakh to invest, identify the
flexicap fund you wish to invest in, put that
amount in a debt scheme of the same fund
house and then start a systematic transfer
of `20,000-25,000 into the equity scheme.
Your money grows at 7-7.5% in the debt
fund and slowly gets transferred into the
POST TAX RETURNS
0% TAX SLAB 20% TAX SLAB 30% TAX SLAB
8.00 8.00 8.00
7.10 7.10 7.10
7.88 6.24 5.42
7.70 6.10 5.30
7.50 5.94 5.16
7.50 5.94 5.16
7.40 5.86 5.09
equity fund over 12-15 months even as you go for fixed income options. The current
benefit from the volatility in the equity situation offers a good opportunity to lock
markets. That’s exactly what Pune-based in at the prevailing high interest rates.
IT professionals Sujata and Karan Rao (see Banks have hiked their deposit rates and
picture) are planning to do with their bonus small savings rates have also been hiked
this year. recently. Even debt funds, which have lost
A tip from mutual fund adviser Deepti some sheen after the new tax rules, are of-
Goel of Alpha Capital: If you already had in- fering indicative yields of 7.5%.
vested in debt funds before the new tax rule Investors should look at the post-tax
came into effect from 1 April, avoid using returns when comparing fixed income
those schemes for the systematic transfer. instruments (see graphic). For instance,
“Since mutual fund investments are on a while the interest rates of most small sav-
first-in-first-out basis, you will not lose out ings schemes were hiked last month, the
on the indexation benefit that past invest- PPF rate has remained unchanged at 7.1%.
ments are eligible for,” she says. But considering that the interest from
PPF is tax free, the scheme scores higher
#5 ARE YOU SEEKING
ASSURED RETURNS?
than other options in the higher income
brackets.
Lock into the prevailing high
rates and harness the power of
compounding over the long term
If you are not comfortable with the volatil- Please send your feedback to
etwealth@timesgroup.com
ity that comes with equity investments,
 mutual funds
The Economic Times Wealth April 24-30, 2023 05

Avoid shifting to hybrid

funds just to gain a tax edge
Varying degree of equity exposure in such funds alters risk element dramatically for investors.

By Sanket Dhanorkar Over one year time frames, equity savings high element of risk. Balanced advantage However, some insist that a shift to hy-

F
or many, tax benefits often form
the fulcrum for investment
choices. So it is not surprising
that the recent unfavourable
change in taxation of debt funds
has sparked a recalibration of portfolios,
pushing investors towards finding alter-
nate, tax-friendly solutions. To avoid the
higher tax liability, some are actively seek-
ing out hybrid funds. But does a shift from
pure debt to hybrid funds work?
For years, debt funds were pitched to
investors with a clear emphasis on the tax
edge these provided over fixed deposits.
Now that this tax advantage has been taken
away, many investors feel bereft. Despite
their many benefits over FDs, investors
appear keen to move away from debt funds
towards more tax-friendly alternatives.
According to financial advisers and
market observers, equity savings funds,
arbitrage funds and even balanced ad-
vantage funds are being considered for
superior tax-efficiency. These get taxed as
equity investments, resulting in a lower
tax liability of 10% on any capital gains ex-
ceeding `1 lakh in a financial year. Feroze
Azeez, Deputy CEO, Anand Rathi Wealth,
observes that hybrid funds will now be the
funds have fetched higher returns than
short duration debt funds, but they have
experienced sharp drawdowns and volatil-
ity aswell. Low interest rates for the past
few years weighed on debt fund returns
even as hybrid funds’ return got propped
up by high performance of equities. This
scenario can change dramatically going
forward. Acharya remarks, “When equity
goes down, you cannot expect equity sav-
ings funds to provide the support that debt
would. They can form part of shorter dura-
tion portfolios for their tax efficiency but
there is a return penalty in the long term.”
Also on investors’ radar are balanced
advantage funds. These are often pitched
as the ideal avenue to weather volatile
market conditions. But if equity savings
funds lie several notches above debt funds
on the risk spectrum, these also have a
Hybrid
funds may
not be good Hybrid - Aggressive hybrid
substitutes Hybrid - Balanced advantage/
for debt Dynamic asset allocation
funds typically alter equity allocation
between 30% and 80%. Even if some part of
this exposure is hedged using derivatives,
it still leaves investors open to high risk
in certain market conditions. This makes
balanced advantage funds a very poor
choice as a defensive arm of your portfolio.
“Based on hedging strategy, they can be
similar to aggressive hybrid funds with
very high equity exposure. That again
makes them poor debt substitutes. While
you can increase allocation to these funds
for tax benefits, do not expect them to take
over the role of debt in your portfolio,” says
Acharya. Joseph avers, “There are various
sub-categories within balanced advantage
funds offering varying levels of equity
exposure, with the nature of exposure also
differing a lot. It is difficult to fathom how
much risk you are taking on.”
1-YEAR ROLLING PERFORMANCE
AVERAGE
RETURN (%)
MINIMUM
RETURN (%)
17.4
11.7
brid funds need not necessarily alter the in-
vestor’s risk profile. Azeez feels investors
can maintain similar risk profile within
their preferred asset allocation. “Most
investors have debt and equity in their
portfolio but in separate funds. The smart
thing to do now is combine them in a single
hybrid fund.” Instead of paying 30% tax on
your debt funds gains and 10% on the eq-
uity side, a combined fund will be taxed at
the lower rate of 10%. Amol Joshi, Founder,
PlanRupee Investment Services, insists
such a switch will not alter asset allocation
much. “Investors who were investing via
separate funds can shift to certain hybrid
categories if the risk appetite permits
by adjusting portfolio allocation once.”
However, Joshi warns anyone doing so to
first maximise their fixed income alloca-
tion in traditional avenues.
% LOSSES
STANDARD
DEVIATION (%)
-32 16 19.2
-25.3 7.8 9.4

flavour of the season. He remarks, “Inflows

will continue, especially on the retail side,
funds Hybrid - Equity savings 10.4 -26.4 8.1 8.9

by mixing products which have both equity Most hybrid funds Debt - Short duration 6.2 -19.5 2 3.4
and debt and not just debt or gold or any exhibit higher Debt - Low duration 5.7 -15.5 1.6 2.6
other asset class standalone.” drawdowns and
Several advisers are asking investors to volatility than Returns are rolled daily for past three years. Minimum return reflects Source:
take this path. But others are cautioning debt funds. the figure for the fund exhibiting biggest loss over 1 year period. Primeinvestor.in
against using hybrid funds as debt alterna-
tives. Bhavana Acharya, Head – Mutual
Funds and Equities, Primeinvestor.in, says,
“There is a high chance that you would be
sold hybrid funds not fitting your risk pro-
file or time frame. Please stay clear of such
sales pitches.” Most hybrid funds would
be poor substitutes for debt funds. There
is varying degree of equity exposure in
these funds which puts them on a different
risk profile. Santosh Joseph, Managing
Partner, Germinate Investor Services,
likens the shift to substituting tax risk for
market risk. “The tax nudge is pushing in-
vestors to be more aggressive and risk tak-
ing in their investment choices,” he says.
Even supposedly safer categories like
equity savings funds are not strictly fit as
alternatives for debt funds. These funds
run around 20-40% exposure to equities
together with arbitrage bets taking total
equity allocation to 65%, with the rest
parked in fixed income. This modest net
equity exposure is enough to introduce
risk not many would be comfortable with. GETTY IMAGES
 guest column
06 The Economic Times Wealth April 24-30, 2023

While investing, don’t

be misled by numbers
Investing is supposed to be a numbers-driven activity. However, to do it
well, you must move beyond that, says Dhirendra Kumar.

H
ere’s a fascinating idea, verbatim
from a talk by Rory Sutherland,
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH a well-known advertising execu-
tive. “People look at Maths, and

money as soon as there are things in

numerical form, you’ve won the argument. If

mysteries you’re one of those marketers who’s trying to

use words, and some other b_____ turns up
with a spreadsheet, you’ve basically lost. The
b______ with the spreadsheet always wins.”
Sutherland is the Vice Chairman of the O&M
advertising group and has pioneered the use
of behavioural science in advertising. The
Think of great above quote shows his preference for words
companies like HDFC and ideas over numbers.
Bank, Asian Paints, Do such ideas have a place in investing?
Infosys, TCS, and so As a first reaction, many people would say
no, they don’t. In investing, numbers play a
many others. Each of
central role. ‘Data-driven’ is the buzzword in
them is in a business everything, including investing. According
with a dozen or more to this ideology, the way to judge an invest-
other companies. ment—in fact, the only way to judge an invest-
There is nothing ment—is to look at the numbers. However, in
unique about their practice, what one might call the human fac-
businesses. What tor plays just as important a role. Qualitative
factors such as management competence,
sets them apart is
company culture, and industry trends can
management quality.

Numerical analysis is the

bedrock of investment
analysis and planning. It’s
important to be aware of
GETTYIMAGES

both sides of the story.

significantly impact a company’s growth
and success. These factors may not be easily
quantifiable in a spreadsheet, but they are
key to investing.
Think of great companies like HDFC Bank,
Asian Paints, Infosys, TCS, and so many oth-
ers. Each of them is in a business with a dozen
or more other companies. There is nothing
unique about their businesses. What sets
them apart is management quality. It’s not
about the line of business but what the com-
pany’s management will make of it, how they
will finetune it and how they will execute it.
Almost all successful investment analysis is
essentially a search for quality people. You
may think that you are looking at financial
numbers, but those are just clues to what ac-
tually matters. By incorporating qualitative
factors, investors and analysts may be able to
make more informed choices and potentially
uncover opportunities that purely numerical
data might overlook.
I’m not arguing that the numbers do not
matter. Numerical analysis is the bedrock
of investment analysis and planning. It’s im-
portant to be aware of both sides of the story.
Unlike qualitative factors, quantitative data
offers a clear and objective basis for making
investment decisions. Financial ratios, his-
torical performance, and other numerical
data help investors by providing concrete
evidence of a company’s financial health
and growth prospects. Moreover, numbers
are standardised, so to speak. Comparing di-
verse investment options, whether in stocks,
mutual funds, or even fixed income, is im-
possible without numbers. In fact, there is no
way to track and compare the performance
of investments without using quantitative
data.
There’s yet another layer of complexity to
this question. While judging the human fac-
tor in corporate management is important,
the quality of this judgement itself matters.
When you bring the human factor of corpo-
rate management or an investment manager
into the picture, the human factor of the ana-
lyst and the investor also comes in. I mean,
anyone who is minimally knowledgeable can
build a spreadsheet that sorts stocks by EPS
or valuation. If the data and the formulae
are correct, it works. In contrast, sorting
companies by management quality takes
years of experience and good judgement;
even then, there’s a lot more room for er-
ror. Or rather, there’s a lot more room for
self-delusion.
We’ve often heard the advice, “Just in-
vest in a set of good stocks, monitor them
closely and hold for years.” Good advice,
right? And so simple, isn’t it? Actually,
this advice is pretty useless, and I say that
even though I have given it myself a few
times. In fact, it’s not really advice but
mere rhetoric. This old Wall Street joke is
a favourite of mine: The newcomer asks a
market veteran, “How do I make money on
the stock market?” The old master replies,
“Why, that’s very simple. Just buy low, sell
high.” So the young man asks, “Yes, but
how do I do that?” The reply comes, “That’s
very difficult. It takes a lifetime to learn.”
Please send your feedback to
etwealth@timesgroup.com
 investing
08 The Economic Times Wealth April 24-30, 2023
“Today, there is no pure
value. Nothing is so cheap”
Traditional growth sectors are under pressure. Though valuations have moderated, they are not
attractive as yet. The growth story will take time to rebound, Taher Badshah tells Sanket Dhanorkar.
Taher Badshah Do you expect the markets to remain
shaky for some more time?
CIO, Invesco Whenever the economy sees a sharp
surge in interest rates in a short span of
Mutual Fund time, it cannot come without impacting
growth. Even if it gets delayed, it comes
through eventually. There was a lot of
chatter about recession in 2022 but it
did not happen. The reason is that the
stimuli extended post Covid left a lot of
surplus in US household savings. That
was a cushion for many households over
the last year when interest rates shot
up. But now, that buffer is coming down.
This means consumption or growth in
the US will get pulled back somewhere
down the line. So what we did not see
happening in 2022 looks likely to tran-
spire in 2023. The signs of slowdown are
more intense now. India had started to
slow at the end of 2022, after seeing strong
growth on the low base of 2021. But India’s
growth was peculiar—it has been fir-
ing on a single engine of urban-centric
consumption. The lower segments of the
income pyramid have not participated.
They have remained under a lot of pres-
sure. Rural segments will take longer to
recover after phase of high interest rates.
Even though consumption has moderat-
ed, investment and manufacturing relat-
ed parts of the economy have done much
better. From a valuation standpoint, India
got rewarded as it stood out among others.
But we are now slowing down as well, and
the valuation premium has come off.
Are the tremors around global banking
space likely to grow louder?
When we have such large disturbances
in terms of interest rates in a short period
of time, accidents are bound to happen.
This has manifested in the developed
market banking space. We cannot rule out
further conflagrations. But central banks
around the world are very quick to douse
the fires. I don’t think the current situa-
tion is anywhere close the 2008 GFC which
hit the cream of the financial institutions
at the outset. For now, the hit is more on
the fringes. It doesn’t appear that this will
start engulfing larger banks. As of now,
we are not expecting a recession scenario
in the US, but a slower world in 2023.
Do you expect the RBI to continue with
a pause in interest rate hikes?
A pause in interest rates was unexpected.
We were expecting rate hikes to slow
down during the first half of this year and
then see a pause. But it has come a little
early. The RBI seems to have brought it
forward owing to the unfolding scenario
for global banking system. How long we
will remain in pause mode will depend
on inflation. Most other central banks
are likely to follow us into a pause.Going
forward, the focus will be on manag-
ing liquidity rather than interest rates.
Inflation is likely to remain within com-
fort levels, particularly if the slowdown
takes effect. That will allow central banks
to continue the rate pause for a while. If
things start to get difficult towards the
end of the year, that is when we could see
some chatter around interest rate cuts or
the rate cycle turning.
Which themes are you favouring now?
Consumption has always been a strong
story for India. But you can’t take it at face
value. I am concerned about how this
theme will play out compared to the past.
You need to see employment and incomes
to rise. We have also not had a great in-
vestment cycle for a very long time. That
can pull the brakes on consumption for
longer than we think. The government’s
focus rightly is on manufacturing and
industrialisation. Its policies and spend-
ing are in that direction. We need that
investment cycle to come through in the
next few years. It will lead to more jobs,
higher income which can then feed into
consumption. The elements are in place
to jumpstart this cycle. Banks have the
capacity to lend, policy initiatives are
supportive and there is room for higher
capacity utilisation. This makes me posi-
tive on the investment cycle for the next
few years than the consumption space.
The growth excitement remains on the
other side of the table. What can surprise
global investors is what India can do on
the manufacturing and exports side.
Many of our portfolios are also tilted to
take advantage of this scenario.
Will growth companies remain out of
market’s radar for longer?
The traditional growth sectors led by dis-
cretionary consumption are still seeing
pressure. Rising competitive intensity is
another challenge. I feel the growth angle
will take some time to come back. While
valuations in some of these pockets have
come off, these are not exactly attractive
yet. What was once value is now per-
ceived as growth, and vice versa. Some of
the industrials and beaten down cyclicals
are now being equated to growth busi-
nesses. Many of our growth strategies are
significantly overweight on industrials.
Today, there is no pure value—nothing is
so cheap that you can classify it as value.
Many of the earlier value stories which
have crossed into growth territory are
now expensive. It is a tricky scenario.
Are you preferring any particular mar-
ket cap segment now?
We are seeing bottom-up opportunities
across the spectrum. The canvas is quite
wide open. There is no polarisation be-
tween large and mid/small caps. There
may be opportunity in the small cap
space as they have trailed both large and
mid caps over the past year. Valuations
are more attractive in this space and we
are scouting for good opportunities.
Please send your feedback to
etwealth@timesgroup.com
 review preview
The Economic Times Wealth April 24-30, 2023 09

3-BHKs the most Type of homes preferred most in top 7 cities

NCR MMR Kolkata Hyderabad Chennai Bangalore Pune

preferred homes
Most property seekers in the top seven cities in India prefer 3-BHK homes over
1-BHK
2-BHK
3-BHK
4%
38%
45%
17%
43%
32%
8%
48%
42%
10%
36%
40%
10%
37%
47%
12%
42%
39%
13%
47%
36%
other configurations, finds a CII-Anarock report on the housing market. > 3-BHK 13% 8% 2% 14% 6% 7% 4%

Most preferred homes in India

42% 40%
3-BHK 2-BHK 12%
1-BHK

6%
>3-BHK

Most Budget for Investment (`) (H2 2022)

buyers
have a
26% 4%
budget of 90 lakh-
>2.5 crore
`45 lakh - 1.5 crore

`90 lakh
29% 32% 9%
<45 lakh 45 lakh-90 lakh 1.5 crore-2.5 crore

Where do people prefer to invest

Real estate is
top choice for 8% 5%
Fixed Gold
investment deposit
Percentage of respond-
ents who have invested
in various avenues.
26% 61%
Stock Real estate
market

Millennials Who thinks real estate is best investment

are driving 7%
Baby boomers (59-77 years)
housing 30%
Age
demand group Gen X (43-58 years)

Age of those who 52%

Millennials (27-42 years)
chose real estate
as best asset class. 11% Gen Z (21-26 years)

Mid-segment
homes (`40
lakh to `80 lakh
dominate new
supply with 36%
share, followed
by premium
(`80 lakh to
`1.5 crore) and
affordable (<
`40 lakh) with
24% and 18%
share.

Note: The survey

covered 4,662 re-
spondents across
7 cities.
 stocks
10 The Economic Times Wealth April 24-30, 2023
Industry tailwinds to
support textile stocks
Fall in cotton prices, strong demand, policy support and shift in global supply chains will drive performance.
by Sameer Bhardwaj
T
he Indian textile sector has
been facing headwinds for the
past few quarters due to high
cotton prices, weak demand,
muted cotton yarn spreads and
sizeable premium in domestic cotton pric-
es relative to international prices. In 2022,
domestic cotton prices soared to `1 lakh/
candy which significantly impacted profit-
ability of spinning companies in 2022-23.
Cotton constitutes a major cost head for
such companies.
Close to 72% of the 194 listed textile
companies have reported negative returns
in the past year. The group’s median
return stood at -24.7%, according to data
compiled from Refinitiv. The data is based
on 18 April 2023 prices. However, the sec-
tor’s performance is likely to improve
in the future due to multiple tailwinds.
Brokerage reports from Elara Capital,
Emkay, Systematix, Avendus Spark and a
note from CRISIL have shown confidence
in the medium to long-term prospects of
the sector.
The Elara Capital report sees 2023-24
to be a recovery period for Indian textile
firms due to green shoots in export de-
mand and a decline in input cost inflation.
On the other hand, a Systematix report
sharing views of experts from its textile
conference expects demand to remain soft
over the next two quarters due to inflation-
ary pressures but will improve from the
second half of 2023-24.
The Emkay report sees signs of im-
provement despite the sector facing tough
times. “Correction in domestic cotton
prices, expanding yarn-cotton spread,
initiation of demand from some retailers,
better demand from China and lowering of
premium of domestic cotton over interna-
GOKALDAS EXPORTS
12-month
Current price (`)
forward PE
14.6 365
THE APPAREL MANUFACTURER and exporter
reported a strong performance in the third quar-
ter of 2022-23 despite a challenging environ-
ment. Its EBITDA and PAT grew by 7% and 35%
y-o-y. However, revenue declined 0.3% y-o-y
due to weak demand in the US market. The man-
agement expects sequential growth in revenue
in the fourth quarter of 2022-23 due to the
expected decline in clients’ inventories. Also, the
demand in the US market is expected to improve
from the second half of 2023-24.
tional cotton prices are key positives,” says
the report.
Fall in cotton prices
Both domestic and international cot-
ton prices have declined in the past few
months. In the fourth quarter of 2022-23,
domestic cotton prices declined over 20%
y-o-y. This reduced the premium over in-
ternational prices to 16% from 24% in the
third quarter, according to data compiled
from the Emkay report. The decline in pre-
mium is improving the competitiveness of
Indian companies in global markets.
Prices are expected to remain on the
lower side in the near term due to an
increase in cotton production aided by
good rainfall and improved cotton sowing.
The reduction in prices is expected to
boost the overall textile chain across the
yarn, fabric, garment and home textile
segments.
A Crisil report expects profitability of
cotton yarn spinners to improve by 100
basis points in 2023-24 as cotton prices are
expected to average 15-20% lower. Also,
the spreads between raw cotton and yarn
prices are likely to stay healthy. “In ad-
dition to the healthy spreads, expected
improvement in capacity utilisation sup-
ported by improving domestic and export
volumes in 2022-23 will bolster operating
profitability of yarn spinners in 2023-24,”
adds the report.
Improvement in demand
The demand for apparel remained strong
in the domestic markets supported by im-
proved footfalls, store expansion, the shift
to organised firms and growth in consum-
GETTYIMAGES
er wallet share. However, muted demand
from the US and UK remains a concern.
According to an Avendus Spark report,
the inventories of US retailers have fallen
ANALYSTS’ RECOMMENDATIONS
1-year target UPSIDE BUY HOLD SELL
POTENTIAL
price (`)
539 47.6% 100 6 1 0
NIFTY 500
The capex plans will ensure incremental 98.40
revenues of `450 crore by 2024-25. Easing of
raw material prices, new capacity additions,
industry tailwinds in form of higher labour cost
inflation in Vietnam and China plus one, a strong
customer base and superior design capabilities Gokaldas Exports
are the key growth drivers. The company also
has a strong balance sheet and decent work-
96.58
ing capital management. It is generating strong
free cash flows that are sufficient to support its
capacity expansion plans. 15 April 2022 18 April 2023
 stocks
The Economic Times Wealth April 24-30, 2023 11

and the retailers are cautiously optimistic
about near-term prospects while remain-
ing committed to long-term brand invest-
ments. However, the report believes that
EU growth prospects will be more chal-
lenging due to the inventory pile up.
Despite such weakness in global
demand, India’s textile exports are
expected to benefit from the US ban on
material coming from the Xinjiang region
of China, the economic crisis in Pakistan
(amongst the largest cotton producers in
the world) and the shift of global supply
chains amid China plus one strategy.
According to Anuj Jain, Research Head
and Co-Founder at Green Portfolio,
“India’s textile exports are expected to
grow by 81% to $65 billion by 2026 from
the pre-Covid level of around $36 billion
in 2019.”
Government support
The government aims to increase the
size of the textile industry to $300 billion
by 2030 from $100 billion in 2022. Some of
the measures taken by the government
to support the sector include 100% FDI
through automatic route, the PLI scheme
to encourage investments in man-made
fibres (MMF) and PM Mitra Parks for
encouraging capacity expansion and for
creating integrated textile value chains.
Moreover, FTAs (free trade
agreements) are expected to help
Indian textile companies to compete
better in global trade. India recently
signed an FTA with Australia and
UAE, which are primary markets for
readymade garments exports. Further,
the government is in talks with UK and
EU for FTAs. “If these FTAs materialise,
Indian exporters will be able to compete
with Pakistan and Bangladesh that hold
preferential status in these regions,” adds
the Systematix report.
How are stocks placed?
The current valuations of textile stocks
are slightly high as the sector has wit-
nessed some re-rating driven by industry
tailwinds. “While near-term headwinds
may persist, the sector offers a lucrative
opportunity for investors with a longer-
term investment horizon,” says Kimberly
Paes, AVP - Research at Research &
Ranking.
ET Wealth examines the prospects of
five listed textile companies that have de-
cent analyst coverage and are currently of-
fering double-digit share price potential.

ARVIND KPR MILL

12-month Current 1-year target UPSIDE 12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS
POTENTIAL POTENTIAL
forward PE price (`) price (`) forward PE price (`) price (`)
39.2% 13.9%
BUY HOLD SELL
6.2 97 135 23.6 612 697 6 0 0
ANALYSTS’ RECOMMENDATIONS THE COMPANY’S TEXTILE division reported a 10% y-o-y 100
BUY HOLD SELL growth in revenue in the third quarter. However, EBIT mar- NIFTY 500
7 0 0 gins fell due to high cost of inventory. The management
98.40
expects margin improvement from 2023-24 as the com-
THE VERTICALLY INTE- book, acquisition of new pany has orders with its export partners at passthrough
GRATED textile company key accounts and recovery prices. Reduction in cotton prices will improve perfor-
reported a 13% y-o-y de- in deferred garment orders. mance going forward. Despite volatility in US and Europe
cline in revenue growth The company is commit- markets, the company is not facing major headwinds. Its
in the third quarter due ted to investing in high- new garment capacity is fully ramped up and it plans to
to the weak performance margin businesses— AMD manufacture 35-36 million pieces every quarter, indicat- KPR MILL
of the denim and garment and garments— and is plan- ing annual capacity utilisation of 90-92%. Such capacity 92.88
segments. The concerns ning a capex of `250 crore utilisation is likely to support turnover and profitability.
over global recession have in 2023-24. Better product Integrated manufacturing facilities, capital allocation to
impacted denim buying mix and softening of input higher profitability businesses and a strong balance sheet
by retailers which led to a prices are expected to are the key strongholds. 14 April 2022 18 April 2023
significant drop in denim support profitability in the
volumes in both domestic future. The company has
and export markets. How- reduced its debt (long-term
VARDHMAN TEXTILES
ever, the woven and AMD and working capital) in the 12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS
segments continue to do third quarter and aims at POTENTIAL
forward PE price (`) price (`)
16%
BUY HOLD SELL
well. The garment segment further deleveraging, which
is expected to report decent will help strengthen the 8.3 317 368 5 1 0
performance in 2023-24 balance sheet and improve
supported by a strong order RoCE in the future. THE VERTICALLY INTEGRATED textile manufacturer
100 NIFTY 500
reported weak numbers in the third quarter due to muted
demand and lower volumes in yarn, grey and processed 98.40
100
NIFTY 500 fabric. However, yarn demand is expected to revive in the
98.40 coming months as China reopens. Also, reduction in inven-
tory held by global retailers is expected to support demand. Vardhman Textiles
Arvind The management expects margins to normalise in the com- 70.70
ing quarters. Further, capacity utilisation of the company
73.88 is likely to jump going forward. In the third quarter, the
company outperformed the industry by operating at more
than 90% utilisation compared to industry average of 70%.
An ICICI Direct report remains bullish on the stock due to
its low debt-equity ratio, healthy cash flows and industry
tailwinds in the form of China plus one, FTAs and stress
14 April 2022 18 April 2023 14 April 2022 18 April 2023
witnessed by competing countries like Pakistan.

INDO COUNT INDUSTRIES 100 NIFTY 500

12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS 98.40
forward PE price (`) price (`) POTENTIAL

8.4 135 165
THE HOME TEXTILE manufacturer witnessed a sharp
decline in volumes in the third quarter due to cautious
consumer spending in international markets. However,
the order book is expected to improve in the next few
quarters as global retailers liquidate their inventory.
The company is expected to perform better in
the fourth quarter due to easing of freight costs and
improvement in supply chains. However, analysts be-
lieve that most of the performance improvement will
22.1%
BUY HOLD SELL
Indo Count Industries
2 1 0
76.43
be visible in 2023-24. The company is also focusing
on increasing share of its fashion and utility business
over next few years, which will help improve margins.
Strong product profile, focus on value-added
products, e-commerce and digital channels, robust
customer relationships, modernisation of spinning
capacity, synergy gains from the acquisition of GHCL, 14 April 2022 18 April 2023
capacity expansion of the home textiles division and
Current price as on 18 April 2023. Textile industry median 12M forward PE: 14.85, MSCI
benefits from FTAs are the key future growth drivers. India Index 12M forward PE: 19.2 times. Source: Refinitiv.
 learn & keep
12 The Economic Times Wealth April 24-30, 2023
WHEN PRIME MINISTER Narendra
Modi flagged off MV Ganga Vilas on the
world’s longest river cruise on 13 Janu-
ary this year, it underscored the growing
fascination with river cruises in India.
“It’s a unique way of travel to experience
life in the slow lane, surrounded by na-
ture and exploring riverside towns and
cities,” says Daniel D’Souza, President &
Country Head, Holidays, SOTC Travel.
No wonder then that in less than a
decade, boating trips have given way
to river cruises, whose duration ranges
from very short trips of a few hours or
1-2 days, such as Mandovi cruise in Goa
or Chilika lake in Odissa; medium dura-
tion trips of 3-10 days on Brahmputra
river, and longer cruises of over 12 days,
mostly along the Ganges. Some of the
longer duration cruises are also split into
shorter cruises of 3-5 days.
The Indian operators running these
cruises include the Assam Bengal
Navigation (with ships ABN Rajmahal,
Charaidew I/II, Sukpha), Exotic Heritage
Group (Antara’s Ganges Voyager, Ganges
Voyager II, Ganga Vilas, Nauka Vilas), and
Adventure Resorts and Cruises (MV Ma-
habaahu, MV Vaikundam), among others.
While some foreign tour operators, such
as Avalon Waterways, use the motor ves-
sels (MV) run by Indian players, others
like UK’s Pandaw have their own ships.
The river cruises, organised mostly be-
tween October and April, run along three
main routes: Ganges river, Brahmaputra
river, both of which span Uttar Pradesh,
Bihar, Jharkhand, West Bengal and As-
sam, and Kerala backwaters. There are
smaller cruises like those covering the
Konkan coast in Maharashtra and Goa
and at Chilika lake in Odissa. The Madhya
Pradesh Tourism is also planning to start
a three-day Narmada river cruise, from
Barwani to Ekta Nagar in Gujarat.
The cruise costs typically include stay,
all meals, transfers and excursions, and
activities or entertainment on the ship.
“The average cost is `50,000-1 lakh per
person depending on the days of sailing,
value and luxury offerings, amenities
and activities on board,” says Rajeev
Kale, President & Country Head, Holi-
days, MICE, Visa, Thomas Cook (India).
If you too are looking forward to a
unique holiday, try out the following
routes. While we list some of the bigger
routes here, there are several shorter
roundtrip cruises as well from Kolkata,
Varanasi, Mumbai, Barkul, Kochi, etc.
BEST RIVER CRUISES IN INDIA
If you are looking for a unique domestic holiday this year, opt for any of the popular river routes, but be prepared to shell out a large sum if you opt for a longer, luxury cruise, says Riju Mehta.
1 Antara
Ganga Vilas
THIS IS THE ONLY cruise of its kind,
being the longest in the world and run
by a single cruise operator. The 3,200
km luxury cruise from Varanasi in Uttar
Pradesh to Dibrugarh in Assam, via
Bangladesh, covers 27 river systems
and five states. It is operated by Antara
Luxury River Cruises on MV Ganga Vilas,
the ship having three decks with 18
suites that can accommodate 36 people.
z E
MBARK-DISEMBARK: Varanasi-
Dibrugarh
z S
TOPOVERS: Varanasi, Sarnath in UP,
Majuli in Assam, Sundarbans in Bay
of Bengal, Kaziranga National Park,
among others.
z D
URATION: 51 days. Shorter trips of
21 days and 31 days also available.
z O
PERATOR: Antara Luxury River
Cruises
FREQUENCY: Twice a year
z 
RATES
`25,000-
50,000
per person,
per day
3
Brahmaputra
CRUISES ON THE Brahmaputra are offered
both by Assam Tourism, and domestic and
foreign private players. The durations range
from a couple of hours, conducted by smaller
operators like Alfresco Grand for lunch,
sunset or dinner trips, to longer trips of
4-5 days or 10-12 days. They pass through
picturesque plantations, stop at Sivasagar, the
former capital of Ahom dynasty, include rhino
sightings at Kaziranga, and the beautiful river
island of Majuli, among others.
z E
MBARK-DISEMBARK: Guwahati-Guwahati;
Guwahati-Jorhat (or vice versa); Guwahati-
Kaziranga; Kaziranga-Jorhat (or vice versa)
z S
TOPOVERS: Kaziranga National Park,
Sivasagar, Majuli, Silghat, silk villages and
plantations.
z DURATION: 1-3 hours; 4-10 days
z O
PERATORS: Assam Bengal Navigation,
Adventure River Cruises (Mahabaahu),
Pandaw, Alfresco Grand, among others.
Above `1 lakh
z BEST TIME: November-April
Above `2 lakh
2 Ganges
river cruise
Short cruises:
7 Mumbai-Goa / Kochi /
Lakshadweep
THE GANGES CRUISES are often segregated into Upper
and Lower Ganges, differing in the areas covered and
durations. The Upper Ganges follows the Ganges river
WHILE THESE ARE not river cruises since they venture
from Kolkata to Varanasi usually in 14 days, with some
shorter 7-8 day cruises covering West Bengal and Bihar out to the Arabian sea, these 2-5 day cruises still make
from Farakka to Patna as well. The Lower Ganges cruises, for a good weekend break. Mumbai-Goa cruises are
as 4-8 day trips, are along the Ganges tributary, Hooghly, typically for 2 nights, 3 days, and these are longer if
from Kolkata to Farakka or as Kolkata roundtrip. All the they add Kochi or Lakshadweep to the itinerary. There
foreign operators add pre- and post-cruise destinations are several good operators for these cruises and the
that cover land trips, including the Golden triangle prices typically start from around `6,000.
of Delhi, Jaipur and Agra, even Mumbai and Kochi, z E
MBARK-DISEMBARK: Mumbai-Goa; Mumbai-Mumbai
increasing the duration of the trip to 18-21 days.
z S
TOPOVERS: Goa, Kochi, Lakshadweep
z E
MBARK-DISEMBARK: Varanasi–Kolkata; Kolkata-
z DURATION: 2-5 days
Kolkata; Kolkata-Farakka; Farakka-Patna; Patna-
RATES
Varanasi. z O
PERATORS: Cordelia Cruises, Angriya,
z S
TOPOVERS: Kolkata, Kalna, Matiari, Murshidabad,
SOTC, among others. `6,000-
Mayapur, Bandel, Chandannagar, Varanasi. BEST TIME: October-February 40,000
but can go up to
z D
URATION: 4-8 days (Lower Ganges); 11-14 days over `1 lakh per
(Upper Ganges)
6
person.
z O
PERATORS: Antara Luxury River Cruises, Assam
Bengal Navigation, Pandaw, Uniworld, Avalon
Waterways, TravelMarvel.
Mandovi river cruises
BEST TIME: October-April
z 
RATES THERE ARE DIFFERENT You can also try houseboat z D
URATION: 1-3 hours;
`20,000- types of short duration
cruises available in Goa,
cruises in Chapora river. day/customised trips;
overnight, longer
1 lakh such as sunset, dinner,
z EMBARK-DISEMBARK:
houseboat trips.
(3-4 days) Panjim-Panjim, Goa
`1-5 lakh (5-8 casino, crocodile & bird
z O
PERATORS: Among
days); `6-10 watching, dolphin safari, z S
IGHTS: Adil Shah’s palace,
several players, are
lakh (13-21 houseboat, and luxury floating Mandovi bridge,
days) cruises on Mandovi river.
While there are few players
Fort Aguada, Penha De
Franca church, floating
Paradise Cruises, Mandovi
Cruises, Santa Monica,
Deltin, Coral Queen, etc.
for luxury trips, plenty of casinos, Miramar Beach,
local operators are available dolphin, crocodile and bird z B
EST TIME:
October-February RATES
for 1-3 hour or day trips. watching, among others.
`400-3,000
(1-3 hours); Above
5
`6,000 (day/
customised)
Sundarbans
4
Kerala backwaters THE CRUISE TO the beautiful
mangrove forests in the delta of
Kolkata
z S
TOPOVERS: Namkhana,
Ganges, Meghna and Brahmaputra
Bhagabatpur crocodile project,
rivers can be opted for in two ways.
THE KERALA BACKWATERS, an z E
MBARK-DISEMBARK: Alleppey-Kochi Lord Buddha statue of Karumadi, Gadhkhali, Sudhanyakhali, islands
The cheaper option includes a day
interconnected network of brackish (vice versa); Kochi-Changankari (vice Hindu temple at Nedumudy, and St of Sajnekhali, Nethidopani and
tour on a boat and stay in land resorts,
canals, lagoons, rivers and lakes parallel versa); Alleppey-Thottappalli (vice Mary’s Church. Dobanki, Barren island, Sundarbans
while the more expensive ones
to the Arabian Sea, stretch from Kollam versa), and many smaller cruises from village.
z D
URATION: 6-7 hours; 2-4 days; include the stay and tour on a bigger
RATES in the south to Kochi in the north with Alleppey to Alumkavadi, Kidangara, RATES
5-10 days cruise liner. Home to the Royal Bengal z DURATION: 3-4 days
`500- most cruises beginning in Alleppey. and Mankotta, among others.
z O
PERATORS: Oberoi Vrinda,
`3,000- Tiger and flush with varied flora and z O
PERATORS: Bigger names include
Other popular backwater tourist areas
1,500 include Kumarakom, Ashtamudi in
z S
IGHTSEEING: Kumarakom bird
Adventure River Cruises, Responsible 50,000 fauna, the cruise makes for a unique Pandaw and Antara Luxury River
sanctuary, Vembanad lake, paddy (6-7 hours); short vacation. The lack of bigger
(1-3 hours); Kollam, and Bekal in Kasargod. Kerala Travel, Exotica Cruises Houseboat, Cruises, while smaller local
fields, coir villages, kathakali cruise operators is made up by the RATES
cruises differ from others in that they Thomas Cook, Alleppey Backwater players include BanBanjara,
use houseboats instead of cruise liners
performances, Punnamada lake,
traditional houses, church and snake
Cruise, Aqua Houseboat Cruise,
`15,000-1 lakh
plethora of small, local players, which Vivada Cruises, Avijatrik, Kolkata `5,000-
offer a cruise for reasonable rates.
(3-4 days);
and you can pick from the standard,
boat race yard at Champakkulam,
among many other local players.
(2-4 days);
Weekends, among others. 6,000
deluxe or premium, and luxury options. z BEST TIME: November-February `1-3 lakh z EMBARK-DISEMBARK: Kolkata- z BEST TIME: October-March (3 days); `8,500-1
(7-10 days) (5-10 days) lakh (3-5 days)
Source: Company websites. All costs are per person. Prices are indicative and may vary.
 financial planning
14 The Economic Times Wealth April 24-30, 2023
Surviving a financial trauma
Do not impose your views on someone going through a tough financial situation, says Uma Shashikant.
UMA SHASHIK ANT
IS CHAIRPER SON,
CENTRE FOR INVES TMENT
EDUC ATION AND LE ARNING
Failure moves through
phases. After denial
and desperation comes
fear and desolation.
Many do not know
how to interact with
others while living
through this phase.
They feel lonely even
amongst others and
think that no one truly
understands.
A
n entire year of chaos at the house-
hold of a close friend just ended. She
opened her cake shop last week. She
hopes to send both children to the
school she aspired for two years ago.
She discovered a mountain of unpaid credit
card dues of the husband last April. Large
enough to demolish their few assets, including
their house. After many days of negotiating
with the debt recovery unit of the bank, she
managed to liquidate the assets one by one to
repay the debt.
The husband also lost his job unexpectedly,
and she began to bake cakes from her kitchen.
The business grew slowly providing just
enough for the family to scrape by. The tougher
challenge was social ostracism and shame.
They drew into their shell. A few friends stood
by them, only to be shunned soon.
This story is not about debt traps and recov-
ery. It is about how those in trouble may want
to be left alone. Even as other onlookers believe
that they can do with some help.
Receiving financial help is not easy. Many
like my friend who involved others when the in-
itial shock of what was happening to her was too
much to bear, chose to shut everyone out soon
after. Based on her account and some conversa-
tions with a few others who found themselves in
and out of serious financial trouble, I am listing
some of their thoughts and points of view.
First, the response to a failure quickly moves
from shock to shame. A friend literally day
traded and lost his entire retirement corpus.
After voluntary retirement from a national-
ised bank, he took to stock trading and was
drawn into derivatives and margin trading.
When he was left with nothing, he told no one.
Shame held him back. He swore the family to
secrecy when he called me to break the hor-
rible news to them. Shame is not an emotion to
share.
Second, even as one loses control, one craves
GETTY IMAGES
to win it all back. Denial is the dominant emo-
tion over the textbook version of coming out
with the truth. A distant relative dragged
himself to the club to speculate in a game of
cards every evening, while insisting he was
not addicted but just too smart and making
easy money on the side. Even if the main player
caves in, the family moves in to deny on his be-
half. I have heard too many accounts of how the
offender is innocent but was waylaid by others.
Third, receiving an overdose of advice feels
overwhelming. A cousin’s business had fallen
into deep debt. After struggling to keep it alive,
he decided to shut down. Through the ordeal he
found it tough to deal with all manner of advice
coming his way, much of it very conflicting.
Others generalise and overtly simplify the is-
sues, he told me. But anyone who knew about
the problem had advice to offer, which was not
exactly helpful.
Fourth, failure moves through various phas-
es. After denial and desperation comes fear and
desolation. Many do not know how to interact
with others while living through this toughest
phase. They feel lonely even amongst others
and think that no one truly understands their
situation. Depression and death are common
in this lowest phase. An understanding family
keeps close vigil and keeps everyone else out
to protect the affected person. My friend stood
by her husband, and chose to keep others that
could shame him to depression, out.
Fifth, recovery eventually happens and is
very very slow. At that time, the family likes to
keep control of every aspect of recovery. There
is enough that has been learned and suffered
through the tough phase. Amidst the fear of los-
ing again, the family builds back. Not everyone
rebounds quickly; most take years to regain
stability. That journey is kept away from on-
lookers because those that work hard to re-
cover like to own it fully. Gratitude is a burden
in this context.
Sixth, the trauma of failure sets the
offender and the family behind not just fi-
nancially but psychologically and emotion-
ally. Even if they have repaid the debts, or
effectively stopped the harmful habit or be-
haviour, there is the fear of slipping again.
Sometimes family members do not trust
enough to acknowledge the recovery; some-
times supporting members do not feel se-
cure enough to speak about recovery. Much
like PTSD they relive the horror of the past.
There is no scope for outsiders to come in.
Seventh, outsiders are seen as being
judgemental, fear mongering, willing to
gossip, or as offering lip service. A niece
who lost her husband tragically and was
shunned by her in-laws and the maternal
family, began to rebuild her life all over
again. She feared that everyone who knew
her was not truly helpful but merely curious
to peek into her travails and mock her. She
refused to believe that it might not be true.
Enough of that depressive account, we
think. Don’t we? It is tough to lose money
and absolutely scary to face steep losses. It
is equally tough for someone else to even
comprehend what it is like to be in that situ-
ation. We might profess to understand, but
we simply don’t. Are there lessons to draw
from these accounts?
First, everyone needs a confidante in per-
sonal financial matters. We have mentioned
this before, and this is the time to emphasise
that someone else must intimately know
how you manage your money and what your
real position is like. Spouse, parent, sibling,
friend, adviser—someone. Find and keep
a financial counselor who is the sounding
board for your thoughts and actions about
money.
Second, if you are not that confidante as
above, you can’t do much in a situation of
crisis to help. You can offer a shoulder, ear
or hand. But you should not expect to be
roped in and involved. Or maybe you are not
ready to be so involved. Look for any of the
signs we discussed. Ask a few appropriate
questions. Allow them to come back to you.
Do not impose yourself into a personal situ-
ation of distress.
Third, consider the possibility of intimate
support groups. Of friends, colleagues, close
relatives, cousins, siblings — a small close
knit group that meets, talks, eats, sings and
revels together periodically. You may not
talk about finances and personal life, but
you will know when something is amiss.
You will exchange notes with others who
also see what you do, and you can offer help
and support as needed.
Being financially broken is a nightmare.
Be empathetic and sensitive, and provide
them support along with the space they
seek.
Please send your feedback to
etwealth@timesgroup.com
SMART STATS
The Economic Times Wealth
April 24-30, 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

Shriram Finance 1 1 1,339.35 18.78 115.66 13.17 1.40 3.29 0.19 1.40 1.43 35 4.31
UPL 2 2 732.05 27.44 54.42 15.51 2.28 1.36 0.25 1.29 1.25 28 4.71
PCBL 3 4 118.15 36.32 6.43 20.02 1.71 4.61 0.18 1.41 0.54 10 5.00 Top 5 stocks with the highest
revenue growth (%) over the
IndusInd Bank 4 5 1,126.20 35.42 28.63 12.77 1.64 0.76 0.35 1.48 1.83 51 4.65
previous year
Larsen & Toubro 5 6 2,232.75 33.62 58.24 35.97 3.78 0.99 0.60 0.96 1.00 43 4.74
Adani Ports & 49
NTPC 6 3 169.70 34.51 16.90 9.82 1.21 4.34 0.54 0.99 0.72 24 4.79 SEZ
Mindspace Business Park. 7 8 315.70 36.24 86.73 44.18 1.20 5.99 0.49 0.75 0.16 11 3.91 JB Chemicals & 47
Pharma
KEC International 8 7 475.45 38.97 100.48 37.29 3.42 0.83 0.37 1.42 0.47 24 4.08
46
PSP Projects
NHPC 9 11 41.90 36.33 23.93 12.10 1.22 4.42 0.54 1.39 0.37 10 4.80
AIA Engineering 46
Apollo Tyres 10 9 334.70 27.09 123.32 33.05 1.80 0.98 0.27 1.40 1.30 33 3.97
Manappuram Finance 11 10 128.85 26.50 35.66 8.25 1.31 2.31 0.26 1.55 1.97 19 4.68 Cummins India 42

Oil India 12 12 253.45 25.20 30.51 4.95 0.91 8.39 0.19 2.10 0.20 19 4.16
Adani Ports & SEZ 13 13 666.10 48.97 61.09 29.41 3.65 0.76 0.49 2.28 2.04 20 4.95
2 Least expensive stocks
City Union Bank 14 15 133.20 27.21 43.92 12.88 1.49 0.78 0.31 1.66 1.20 26 4.27
Top 5 stocks with the lowest
ACC 15 14 1,738.10 19.39 123.73 50.59 2.37 3.32 0.45 1.60 1.18 44 4.05 price-earnings ratio
CESC 16 16 68.20 25.44 13.74 6.68 0.87 6.57 0.52 0.99 0.27 15 4.87 Oil India 4.95
Bajaj Auto 17 18 4,314.35 22.60 32.81 20.00 4.13 3.28 0.56 0.99 0.25 51 4.02
CESC 6.68
Karur Vysya Bank 18 22 94.10 16.91 30.88 7.74 0.92 1.68 0.23 1.69 0.83 12 4.83
Dr Reddy's Laboratories 19 17 4,858.20 23.18 87.74 34.20 4.22 0.61 0.41 0.91 0.61 41 4.27 DCB Bank 7.35
Karur Vysya
Somany Ceramics 20 21 523.00 31.77 38.28 24.82 3.03 0.58 0.64 1.26 0.27 19 4.74 7.74
Bank
Tata Power Co. 21 20 196.40 32.80 89.60 27.98 2.75 0.90 0.14 1.33 1.53 22 3.23 Bank of 7.84
Bank of Baroda 22 23 177.60 0.78 23.22 7.84 0.89 1.61 0.34 1.61 1.72 38 4.68 Baroda

Bharat Electronics 23 19 102.85 36.57 39.43 30.88 6.03 1.68 0.80 1.28 1.21 30 4.67
ITC 24 24 400.30 27.18 34.96 32.24 7.87 3.07 0.90 0.84 0.33 38 4.66 3 Best PEGs
Top 5 stocks with the least
Torrent Pharmaceuticals 25 27 1,590.00 28.94 108.86 69.38 9.06 1.60 0.63 0.79 0.66 33 4.21
price earnings to growth ratio
Coromandel International 26 25 930.60 33.24 37.27 18.14 4.36 1.27 0.51 1.22 0.96 12 4.58
PCBL Oil India
Reliance Industries 27 26 2,346.05 37.66 31.60 25.44 2.03 0.34 0.81 1.07 1.10 37 4.49
DCB Bank 28 32 101.85 23.30 24.69 7.35 0.73 0.98 0.32 1.66 1.12 24 4.29
0.14 0.18 0.19 0.19 0.23
EPL 29 30 160.70 22.75 37.58 23.84 2.80 2.63 0.64 1.39 0.73 12 4.67
Endurance Technologies 30 35 1,258.55 37.21 54.84 38.05 4.47 0.50 0.69 1.16 0.52 23 4.30
Dhanuka Agritech 31 34 646.15 29.11 21.53 14.39 3.13 0.93 0.60 0.99 0.54 11 5.00 Tata Power Shriram Karur Vysya
Co. Finance Bank
ICICI Lombard Gen. Ins. 32 29 1,076.25 29.34 61.37 41.54 5.80 0.88 0.71 1.11 0.71 28 4.32
Coal India 33 31 229.55 18.90 28.49 8.18 3.29 13.18 0.27 1.25 1.12 23 3.83
4 Income generators
Cipla India 34 36 904.00 18.32 44.47 29.23 3.53 0.55 0.64 0.95 0.57 41 4.10
Top 5 stocks with the highest
Cummins India 35 33 1,559.90 42.16 63.45 44.57 8.09 1.50 0.72 1.12 1.09 30 3.67 dividend yield (%)
AIA Engineering 36 41 2,746.20 45.60 58.89 41.79 5.45 0.33 0.71 1.18 0.57 15 4.53 Coal India 13.18
Transport Corp of India 37 37 604.80 31.25 22.54 16.20 3.28 1.15 0.57 1.56 0.54 10 4.60 Oil India 8.39
Kalpataru Power 38 42 523.30 27.16 34.81 14.21 1.79 1.26 0.71 1.40 1.15 14 4.57
CESC 6.57
Ahluwalia Contracts 39 40 523.00 29.67 62.08 22.69 3.40 0.06 0.36 1.57 0.92 11 4.36 Mindspace
5.99
Business Parks
HG Infra Engineering 40 39 879.05 38.42 24.49 15.41 4.08 0.11 0.40 1.68 1.68 15 5.00
PCBL 4.61
DLF 41 46 414.45 29.13 64.68 68.56 2.83 0.71 1.02 1.38 1.61 21 4.62
Jyothy Labs 42 43 195.00 25.82 87.35 43.91 4.93 1.29 0.50 1.16 1.06 15 4.07
5 Least risky
Ambuja Cements 43 49 380.70 5.41 55.11 38.94 2.43 1.66 0.76 2.19 1.25 46 3.89 Top 5 stocks with the lowest
Cera Sanitaryware 44 -- 6,283.95 39.96 56.80 54.05 8.04 0.55 0.94 1.27 0.41 19 4.21 downside risk
Zydus Wellness 45 -- 1,508.05 26.30 37.45 31.50 2.01 0.33 0.84 0.97 0.60 10 4.80 Torrent Dr Reddy's
Pharmaceuticals Laboratories
Bharat Forge 46 47 787.65 38.92 48.28 33.60 5.53 0.38 0.68 1.29 1.26 31 3.81
PSP Projects 47 -- 668.00 46.04 24.73 14.53 3.52 0.75 0.59 1.63 1.90 11 4.36
0.75 0.79 0.84 0.91 0.95
JB Chemicals & Pharma 48 48 2,114.85 47.04 43.31 42.70 7.71 0.78 0.98 1.11 0.71 13 4.46
Container Corp Of India 49 44 611.60 25.62 38.30 34.61 3.40 2.67 0.85 1.28 1.12 28 3.64
Mindspace ITC Cipla India
Glenmark Pharma 50 50 512.15 14.32 46.37 15.34 1.59 0.49 0.31 1.37 1.63 18 3.72 Business Parks
SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
IN THE ADJACENT TABLE.
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 20 APRIL 2023. SOURCE: BLOOMBERG
 smart stats
16 The Economic Times Wealth April 24-30, 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 4.68 12.81
ranked on 3-year returns while debt-oriented hybrid and income funds are IDBI Nifty Next 50 Index LIC MF S&P BSE Sensex ETF

ranked on 1-year returns. 4.76 12.80

ICICI Prudential Nifty Next 50 HDFC S&P BSE Sensex ETF
5.60 12.80
RETURNS (%) Nippon India ETF Nifty Next 50 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 (%)
5.61 12.77
EQUITY: LARGE CAP SBI Nifty Next 50 ETF Nippon India ETF S&P BSE Sensex
Quant Focused Fund  237.78 -5.07 -2.23 -1.49 26.68 10.98 2.32
26.68% 5.77 12.77
ICICI Prudential Bluechip Fund  34,679.35 -2.78 1.62 5.74 24.99 11.02 1.63
UTI Nifty Next 50 Exchange ICICI Prudential S&P BSE Sensex ETF
UTI Nifty 50 Index Fund  9,965.39 -2.69 0.66 4.78 24.83 11.71 0.30 THE 3-YEAR
RETURN OF
HDFC Index Fund Nifty 50  7,825.32 -2.71 0.62 4.65 24.61 11.49 0.40
QUANT
ICICI Prudential Nifty 50 Index Fund
HDFC Index Fund - S&P BSE Sensex


4,176.69
4,405.01
-2.72
-2.09
0.61
0.88
4.66
6.37
24.41
24.29
11.34
12.28
0.34
0.40
FOCUSED
FUND IS
Equity: Flexi-cap 5-year returns
Tata Nifty 50 Index Fund  385.64 -2.74 0.54 4.61 24.17 11.32 0.52 THE HIGHEST
ICICI Prudential S&P BSE Sensex Index Fund  896.02 -2.14 0.86 6.39 24.16 12.28 0.27
IN ITS 3.39 17.02
CATEGORY. Motilal Oswal Flexi Cap Parag Parikh Flexi Cap Fund
Nippon India Index Fund - S&P BSE Sensex  400.51 -2.19 0.67 5.98 23.98 11.94 0.75
Kotak Bluechip Fund  5,375.91 -2.23 0.56 4.44 23.92 10.99 1.83 5.21 16.96
Tata S&P BSE Sensex Index Fund  214.57 -2.16 0.78 6.13 23.24 11.89 0.58 Nippon India Retirement Quant Flexi Cap Fund
Canara Robeco Bluechip Equity Fund 8,860.36 -2.05 -0.32 3.66 21.00 12.26 1.74

5.35 15.53
EQUITY: LARGE & MIDCAP Bandhan Focused Equity IIFL Focused Equity Fund
SBI Large & Midcap Fund  9,827.47 -0.11 0.15 6.81 29.80 12.57 1.79 29.80% 5.45 13.11
Mirae Asset Emerging Bluechip Fund  23,447.27 -2.52 -0.48 -0.28 26.36 13.50 1.60 THE 3-YEAR Taurus Flexi Cap Fund HDFC Retirement Savings Fund Equity
Kotak Equity Opportunities Fund  11,892.93 -0.63 1.19 4.86 25.95 12.23 1.71 RETURN OF
SBI LARGE
6.78 12.86
EQUITY: FLEXI CAP AND MID- Axis Focused 25 Fund PGIM India Flexi Cap Fund
HDFC Retirement Savings Fund Equity  2,775.68 0.79 5.79 10.79 32.56 13.11 1.89 CAP IS THE
Parag Parikh Flexi Cap Fund  31,290.25 5.15 5.27 5.41 29.33 17.02 1.58 HIGHEST
IN ITS
PGIM India Flexi Cap Fund
ICICI Prudential Retirement Fund


5,310.35
218.49
-2.26
-2.11
-1.48
0.70
-2.41
2.69
28.28
28.21
12.86
—
1.94
2.42
CATEGORY. Equity: Mid-cap 3-year returns
IIFL Focused Equity Fund  3,483.76 0.05 2.08 6.27 26.53 15.53 1.92 20.47 38.14
ICICI Prudential Focused Equity Fund  4,032.96 -2.27 1.53 7.25 26.52 12.28 1.89 DSP Midcap Fund Quant Mid Cap Fund
JM Flexicap Fund  269.40 -1.45 2.73 9.38 25.40 12.35 2.35
Mirae Asset Focused Fund  8,459.34 -3.61 -2.71 -4.57 24.84 — 1.76
23.40 37.57
Axis Midcap Fund PGIM India Midcap Opportunities
Union Flexi Cap Fund  1,339.95 -2.38 -1.65 2.05 24.74 11.64 2.22
Sundaram Focused Fund  771.81 -1.67 -1.48 0.02 22.83 11.90 2.39 24.03 37.07
Canara Robeco Flexi Cap Fund  8,712.83 -2.18 -0.70 1.81 22.10 12.09 1.75 HSBC Midcap Fund SBI Magnum Midcap Fund

EQUITY: MID CAP 24.24 35.75

IDBI Midcap Fund Motilal Oswal Midcap Fund
Quant Mid Cap Fund  1,665.50 -5.65 -0.86 2.48 38.14 17.78 2.38
38.14%
PGIM India Midcap Opportunities Fund  7,811.60 -2.58 -5.52 1.20 37.57 15.68 1.92
THE
25.14 33.90
SBI Magnum Midcap Fund  8,733.51 2.74 -0.97 6.18 37.07 12.19 1.79 3-YEAR Taurus Discovery Motilal Oswal Nifty Midcap
Edelweiss Mid Cap Fund  2,613.70 0.30 -1.84 4.65 32.96 11.46 1.96 RETURN
Kotak Emerging Equity Fund  24,406.71 -0.37 -0.29 3.83 32.81 12.99 1.59
OF QUANT
MIDCAP
Nippon India Growth Fund
Axis Midcap Fund


13,420.40
18,748.75
-0.57
0.61
-0.22
-3.63
5.71
-0.42
32.76
23.40
13.44
13.27
1.69
1.64
FUND IS
THE HIGH-
Equity: Small-cap 3-year returns
EST IN ITS
EQUITY: SMALL CAP CATEGORY. 25.01 61.32
Quant Small Cap Fund  3,578.84 -2.49 6.20 3.17 61.32 22.92 2.37 ITI Small Cap Fund Quant Small Cap Fund
Nippon India Small Cap Fund  24,490.83 1.08 2.49 8.39 45.53 15.35 1.62 30.64 45.53
Canara Robeco Small Cap Fund  5,106.04 -1.71 -2.11 -0.74 43.22 — 1.84
Bandhan Emerging Businesses Nippon India Small Cap Fund
Kotak Small Cap Fund  8,672.23 -0.86 -2.45 -2.31 41.23 14.72 1.75
Edelweiss Small Cap Fund  1,499.54 -0.44 -0.98 4.26 39.54 — 2.38 30.79 43.22
Bank of India Small Cap Fund  428.03 -1.54 -3.74 1.23 39.44 — 2.49 Aditya Birla Sun Life Canara Robeco Small Cap Fund
SBI Small Cap Fund  15,590.43 -1.01 -3.67 6.25 35.95 13.66 1.68 32.93 42.61
Axis Small Cap Fund  11,601.44 -0.61 -0.96 3.61 33.15 17.39 1.70 Invesco India Smallcap HSBC Small Cap Fund
EQUITY: VALUE ORIENTED 33.15 41.30
SBI Contra Fund  8,979.10 0.48 4.88 13.07 40.80 14.43 1.78 40.80% Axis Small Cap Fund HDFC Small Cap Fund
ICICI Prudential Value Discovery Fund  27,677.26 -1.32 5.79 7.06 32.70 14.02 1.70
THE 3-YEAR
Kotak India EQ Contra Fund  1,467.20 -2.51 2.77 5.96 26.61 11.78 2.13
UTI Value Opportunities Fund  6,652.02 -3.56 -1.17 3.37 24.46 11.05 1.84
RETURN OF
SBI CONTRA Hybrid: Aggressive 5-year returns
FUND IS
EQUITY: ELSS THE HIGH-
Quant Tax Plan  3,198.18 -7.33 -6.30 -1.72 42.44 20.01 2.32 EST IN ITS 4.96 17.55
Bandhan Tax Advantage (ELSS) Fund  4,169.25 -2.04 0.43 2.34 33.68 10.84 1.85 CATEGORY. Nippon India Equity Hybrid Quant Absolute Fund
PGIM India ELSS Tax Saver Fund  471.15 -2.28 1.29 3.00 27.29 11.42 2.51 4.98 13.45
Bank of India Tax Advantage Fund  695.47 -1.11 0.04 4.34 27.03 11.68 2.37 IDBI Hybrid Equity Fund ICICI Prudential Equity & Debt Fund
Mirae Asset Tax Saver Fund  14,448.50 -2.17 0.26 1.25 26.52 13.35 1.64
6.06 11.66
DSP Tax Saver Fund  10,178.52 -3.52 0.37 1.91 26.08 11.84 1.71
Kotak Tax Saver  3,400.35 -2.11 0.94 4.47 25.73 12.68 1.87
Bandhan Asset Allocation HDFC Children's Gift Fund
Union Tax Saver (ELSS) Fund  581.14 -2.36 -1.85 3.16 25.71 11.75 2.57 6.38 11.28
Canara Robeco Equity Tax Saver Fund  4,923.68 -1.92 -1.80 3.67 24.43 13.49 1.81 Aditya Birla Sun Life Equity Baroda BNP Paribas Aggressive Hybrid
HYBRID: EQUITY SAVINGS 6.53 11.12
Mirae Asset Equity Savings Fund  560.91 -0.46 1.52 4.18 14.28 — 1.43 HSBC Aggressive Hybrid Fund Kotak Equity Hybrid Fund

ANNUALISED RETURNS IN % AS ON 19 APRIL 2023.

 smart stats
The Economic Times Wealth April 24-30, 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
HDFC Equity Savings Fund  2,514.76 -0.18 2.18 4.82 13.99 7.68 2.05
UTI Equity Savings Fund  258.86 0.68 3.70 6.72 13.24 — 1.53 on 10-year SIP returns
SBI Equity Savings Fund  2,232.88 0.71 0.54 2.68 13.03 7.19 1.19
Nippon India Small Cap Fund
Kotak Equity Savings Fund  2,099.94 0.61 3.21 6.11 12.16 8.01 2.05
Edelweiss Equity Savings Fund  253.42 0.28 1.85 3.98 10.08 7.51 2.07 22.28
SBI Small Cap Fund
HYBRID: AGGRESSIVE (EQUITY-ORIENTED)
Quant Absolute Fund  1,073.76 -5.73 -3.82 2.05 34.37 17.55 2.31 34.37% 21.30
Bank of India Mid & Small Cap Equity & Debt  377.51 -0.61 1.64 -1.16 27.59 9.46 2.59 THE 3-YEAR Quant Tax Plan
ICICI Prudential Equity & Debt Fund  21,435.78 -0.51 3.15 5.52 27.38 13.45 1.73 RETURN 21.07
HDFC Children's Gift Fund  6,281.86 2.09 4.98 11.61 25.03 11.66 1.81 OF QUANT
ABSOLUTE Quant Small Cap Fund
Kotak Equity Hybrid Fund  3,326.97 -1.16 1.56 4.32 23.71 11.12 1.91
FUND IS THE
HDFC Retirement Savings Fund - Hybrid Equity  948.04 0.86 4.81 8.93 22.45 10.61 2.20 HIGHEST IN ITS 19.59
Edelweiss Aggressive Hybrid Fund  496.26 -0.42 2.36 6.37 21.15 11.02 2.63 CATEGORY. Quant Flexi Cap Fund
Mirae Asset Hybrid Equity Fund  6,949.27 -1.77 0.47 2.88 18.70 10.42 1.76
19.59
Canara Robeco Equity Hybrid Fund  8,247.13 -1.38 0.18 3.14 17.64 10.61 1.76
Baroda BNP Paribas Aggressive Hybrid Fund  780.81 -1.85 0.72 3.20 17.53 11.28 2.26 SIP: SYSTEMATIC % ANNUALISED RETURNS
INVESTMENT PLAN AS ON 19 APRIL 2023
HYBRID: CONSERVATIVE (DEBT-ORIENTED)
HDFC Hybrid Debt Fund  2,728.96 1.07 4.26 6.67 12.20 8.01 1.82

2 Top 5 MIPs
SBI Conservative Hybrid Fund  7,356.93 1.19 2.83 6.32 12.92 8.13 1.11
Kotak Debt Hybrid Fund  1,765.96 0.74 2.74 5.76 12.08 8.70 1.78
ICICI Prudential Regular Savings Fund  3,213.64 0.44 2.23 5.26 9.87 7.99 1.73
Top 5 MIP schemes based on
SBI Magnum Children's Benefit Fund  90.68 1.83 2.87 4.81 14.15 7.75 1.21
Canara Robeco Conservative Hybrid Fund  1,086.04 0.47 2.20 3.91 9.52 8.12 1.81
3-year SWP returns

DEBT: MEDIUM TO LONG TERM Bank of India Conservative Hybrid Fund

SBI Magnum Income Fund 1,537.97 1.78 4.23 5.93 5.91 7.17 1.46 15.48
5.93%

Aditya Birla Sun Life Income Fund  1,496.22 1.86 4.16 4.80 6.14 7.24 0.89
THE 1-YEAR SBI Magnum Children's Benefit Fund
DEBT: MEDIUM TERM RETURN OF 15.25
Aditya Birla Sun Life Medium Term  1,764.41 2.09 4.08 22.40 14.12 7.93 1.50 SBI MAGNUM
INCOME IS Aditya Birla Sun Life Regular Savings
ICICI Prudential Medium Term Bond Fund  6,415.15 1.82 3.79 6.08 6.70 6.93 1.41
THE HIGH- 15.06
Axis Strategic Bond Fund  1,717.35 1.96 4.00 5.79 6.36 6.73 1.08 EST IN ITS
SBI Magnum Medium Duration Fund  7,110.35 2.00 4.26 5.71 6.30 7.45 1.22 CATEGORY. HDFC Hybrid Debt Fund
HDFC Medium Term Debt Fund  3,811.13 1.71 3.79 5.01 5.93 6.63 1.29
14.29
DEBT: SHORT TERM SBI Conservative Hybrid Fund
ICICI Prudential Short Term Fund  14,797.18 1.83 3.65 6.39 6.41 7.01 1.07 6.39% 14.12
Aditya Birla Sun Life Short Term Fund  4,829.25 1.89 3.59 5.57 6.61 6.92 1.08 THE 1-YEAR
HDFC Short Term Debt Fund  11,490.97 1.86 3.77 5.35 6.06 7.00 0.74 RETURN OF SWP: SYSTEMATIC % ANNUALISED RETURNS
ICICI PRU WITHDRAWAL PLAN AS ON 19 APRIL 2023
Axis Short Term Fund  6,729.70 1.86 3.75 5.27 5.68 6.75 0.97
SHORT TERM
UTI Short Term Income Fund  2,301.96 1.76 3.53 5.21 7.38 4.91 0.96
FUND IS
IDBI Short Term Bond Fund  26.27 1.64 3.61 4.85 8.54 6.23 0.75 THE HIGH-
DEBT: DYNAMIC BOND
ICICI Prudential All Seasons Bond Fund  8,998.16 1.88 3.77 6.71 6.65 7.46 1.31
EST IN ITS
CATEGORY. 3 Mid Cap: Cash Holdings
SBI Dynamic Bond Fund  2,659.27 1.73 4.14 6.66 5.13 7.20 1.64
13.09
Quantum Dynamic Bond Fund  87.38 1.72 4.40 6.42 5.15 6.87 0.73
11.21
HDFC Dynamic Debt Fund  593.71 1.78 3.51 4.89 6.19 5.40 1.72
IIFL Dynamic Bond Fund  621.16 1.61 3.30 4.63 5.65 6.10 0.52
8.03 7.56 7.17
DEBT: CORPORATE BOND
ICICI Prudential Corporate Bond Fund  19,376.58 1.88 3.54 6.26 6.34 7.08 0.53
Nippon India Corporate Bond Fund  1,967.75 1.83 3.94 5.80 6.03 6.64 0.68 Expense as on 31 Mar 2023
Aditya Birla Sun Life Corporate Bond Fund  15,698.05 1.90 3.79 5.53 6.48 7.36 0.46 Returns as on 19 April 2023
Kotak Corporate Bond Fund  9,911.22 1.76 3.48 4.97 5.61 6.79 0.67 Assets as on 31 March 2023
Sundaram Corporate Bond Fund  908.23 1.72 3.40 4.80 5.76 7.04 0.51 Rating as on 31 March 2023 Axis WhiteOak Kotak Baroda Bandhan
Midcap Capital Emerging BNP Midcap
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Fund Mid Cap Equity Paribas Fund
Did not find your fund here? Fund Fund Midcap
Log on to www.wealth.economictimes.com for an exhaustive list. % OF ASSETS AS ON 31 MARCH 2023

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 Debt: Ultra short duration
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
RAISER
The result is assigned stars according to the following 0.48 0.48
0.43 0.44
distribution: Mid-cap: Mostly invested in mid-cap companies.
Small-cap: Mostly invested in small-cap companies. 0.34
 Top 10%

55.6%
 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.
  Bottom 10% Gilt: Medium- and long-term; invest in gilt securities. of the total mutual
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more fund industry AUM Baroda Bandhan IDBI Mirae HSBC
less than three years old have been excluded. This ensures than 60%.
that all the funds have existed long enough to be tracked for
was concentrated BNP Ultra Ultra Asset Ultra
Debt-oriented aggressive: Average equity exposure
in the largest five Paribas Short Short Ultra
consistency of performance. Given the focus on long-term between 25-60%. Ultra Term Term
investing, liquid funds, short-term funds and FMPs are not AMCs in March
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure
less than 25%. 2023. % AS ON 31 MARCH 2023
the growth option of funds that reinvest returns instead of
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 deposits
18 The Economic Times Wealth April 24-30, 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

Interest rate (%) What `10,000
HOME LOAN RATES
TENURE: 1 YEAR compounded qtrly will grow to With effect from October 2019, all banks have made the transition to
Indusind Bank 7.50 10,771 external benchmarks for pricing new home loans. Most banks have
Bandhan Bank 7.25 10,745 picked the RBI repo rate as the external benchmark.
DCB Bank 7.25 10,745
Yes Bank 7.25 10,745 REPO RATE: 6.50%
J & K Bank 7.10 10,729 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
DCB Bank 8.00 11,717 Indusind Bank -- 8.40 9.75 8.40 9.75 Not Given
IDFC First Bank 7.75 11,659 Indian Bank 9.20 8.45 9.10 8.45 9.10 9 Feb 2023
Indusind Bank 7.75 11,659 HDFC Bank -- 8.45 9.85 8.45 9.85 Not Given
AU Small Finance Bank 7.50 11,602
UCO Bank 9.30 8.45 10.30 8.45 10.30 15 Mar 2023
Yes Bank 7.50 11,602
Bank of Baroda 9.15 8.50 10.50 8.55 10.60 14 Feb 2023
TENURE: 3 YEARS
Bank of Maharashtra 9.30 8.60 10.30 8.80 10.80 8 Feb 2023
AU Small Finance Bank 8.00 12,682
Union Bank of India 9.30 8.75 10.50 8.75 10.50 11 Feb 2023
IDFC First Bank 7.75 12,589
Indusind Bank 7.75 12,589 IDBI Bank 9.10 8.75 10.75 8.75 12.25 12 Feb 2023
DCB Bank 7.60 12,534 Punjab National Bank 9.25 8.80 9.45 8.80 9.45 9 Feb 2023
Union Bank of India 7.30 12,424 Kotak Mahindra Bank -- 8.85 9.35 8.90 9.40 Not Given
TENURE: 5 YEARS Indian Overseas Bank 9.35 8.85 9.55 8.85 9.55 8 Feb 2023
DCB Bank 7.60 14,571 Bank of India 9.35 8.85 10.70 8.85 10.85 1 Mar 2023
Indusind Bank 7.25 14,323 Canara Bank 9.25 8.85 11.25 8.85 11.25 12 Mar 2023
AU Small Finance Bank 7.20 14,287 Punjab & Sind Bank 8.54 8.95 9.95 8.95 9.95 9 Feb 2023
RBL Bank 7.00 14,148
ICICI Bank -- 9.00 9.90 9.00 10.05 Not Given
Yes Bank 7.00 14,148
Karnataka Bank -- 9.08 10.35 9.08 10.35 1 Mar 2023
J & K Bank 9.10 9.10 9.50 9.10 9.50 10 Feb 2023
Top five senior citizen bank FDs SBI Term Loan 8.75+CRP 9.15 9.65 9.15 9.65 15 Feb 2023
Interest rate (%) What `10,000 Bandhan Bank -- 9.15 13.32 9.15 13.32 Not Given
TENURE: 1 YEAR compounded qtrly will grow to
Indusind Bank 8.00 10,824 Karur Vysya Bank 9.60 9.23 12.13 9.23 12.13 10 Feb 2023
Bandhan Bank 7.75 10,798 Dhanlaxmi Bank 8.50 9.35 10.00 9.85 10.50 25 Feb 2023
DCB Bank 7.75 10,798 SBI Max Gain 8.75+CRP 9.55 10.05 9.55 10.05 15 Feb 2023
J & K Bank 7.60 10,782 DCB Bank 10.94 9.75 9.95 9.75 9.95 13 Feb 2023
Kotak Mahindra Bank 7.50 10,771

TENURE: 2 YEARS
DCB Bank 8.50 11,832
Your EMI for a loan of `1 lakh
IDFC First Bank 8.25 11,774 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
Indusind Bank 8.25 11,774
@ 7% 1,980 1,161 899 775 707
Axis Bank 8.01 11,719
AU Small Finance Bank 8.00 11,717 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
AU Small Finance Bank 8.50 12,870
@ 9% 2,076 1,267 1,014 900 839
IDFC First Bank 8.25 12,776
@ 10% 2,125 1,322 1,075 965 909
Indusind Bank 8.25 12,776
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
DCB Bank 8.10 12,720
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
Axis Bank 7.75 12,589

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 8.00 250 `1.5 lakh p.a. One account per girl child 80C
Indusind Bank 7.75 14,678
AU Small Finance Bank 7.70 14,642 Senior Citizens' Savings Scheme 8.20 1,000 `30 lakh 5-year tenure, minimum age 60 yrs 80C
State Bank of India 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 7.50 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.70 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 6.8-7.50 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.60 14,571
Indusind Bank 7.25 14,323 Single `9 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
AU Small Finance Bank 7.20 14,287 7.40 1,000
Scheme
Joint `15 lakh 5-year tenure, monthly returns Nil
ICICI Bank 7.00 14,148
IDFC First Bank 7.00 14,148 Recurring deposits 6.20 100 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 19 April 2023 #Benefit available only for 5-year deposit
 market watch
The Economic Times Wealth April 24-30, 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)
52,541 60,373 68,590 75,419 990.14 1,092.69 102.75 79.16
20 APR 2022 20 APR 2023 20 APR 2022 20 APR 2023 20 APR 2022 20 APR 2023 20 APR 2022 19 APR 2023

PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER

CHANGE
X 1 WEEK -0.43% 1 WEEK -0.59% 1 WEEK 3.84% 1 WEEK -3.65%
X 1 YEAR 14.91% 1 YEAR 9.96% 1 YEAR 10.36% 1 YEAR -22.96%

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)

Bisil Plast 2.00 20.48 124.72 0.24 -78.59 10.80 East West Holdings 5.09 0.20 13.11 8.63 1,927.68 55.76
Avance Technologies 0.50 19.05 92.31 7.21 133.56 19.82 Burnpur Cement 5.01 -4.02 21.90 4.27 1,248.9 43.15
DCM Financial Services 7.27 51.14 88.34 0.18 351.24 16.09 Navkar Urbanstructure 7.00 -21.17 -4.11 6.89 942.45 157.08
Panafic Industrials 1.33 19.82 62.20 5.54 120.73 10.92 Comfort Intech 3.29 -17.54 24.15 3.94 779.51 105.25
Sun Retail 0.70 0.00 59.09 6.85 49.35 10.86 Galactico Corporate Ser. 7.64 -18.38 -18.20 12.22 579.79 113.84
Prag Bosimi Synthetics 3.01 20.88 54.36 0.22 51.88 22.39 Ruchi Infrastructure 8.29 -2.24 1.59 0.90 478.56 178.65
Vivanta Industries 4.60 20.10 51.82 9.90 283.14 46.00 Radhe Developers 5.04 -28.71 -32.80 12.69 454.14 253.81
SVC Industries 3.25 9.43 51.16 0.60 85.09 53.01 Econo Trade (India) 8.30 -6.53 3.75 0.09 429.33 15.50
Sumeet Industries 3.21 8.45 47.25 0.43 -29.22 33.27 Nouveau Global Ventures 0.59 0.00 -7.81 3.28 374.60 10.94
Dhanada Corporation 3.50 14.38 47.06 0.03 121.59 19.57 Greencrest Financial 0.81 5.19 0.00 2.85 368.31 29.61

Top price losers Top volume losers

Patron Exim 8.43 12.7 -44.17 5.08 5.48 19.54 Adcon Capital Services 1.84 -7.54 -1.08 2.03 -78.36 60.98
Shree Securities 0.75 -1.32 -33.63 16.65 151.87 59.85 Deep Diamond India 9.74 -3.66 -32.83 2.37 -73.88 31.17
Deep Diamond India 9.74 -3.66 -32.83 2.37 -73.88 31.17 Arshiya 6.02 0.17 -3.22 2.03 -71.89 158.63
Advik Capital 3.07 -5.83 -32.82 25.67 20.22 67.60 Maharashtra Corp. 1.31 -0.76 -10.27 5.52 -71.68 82.74
Radhe Developers 5.04 -28.71 -32.80 12.69 454.14 253.81 Seacoast Shipping Serv. 3.42 -1.44 28.09 18.56 -55.49 115.15
SVP Global Textiles 9.89 9.77 -31.65 2.20 2.87 125.11 Zee Media Corporation 8.86 0.45 -2.96 2.99 -53.26 554.10
Cerebra Integrated Tech. 7.27 -5.58 -21.24 2.38 -3.38 81.42 Gala Global Products 7.38 -3.78 8.53 1.65 -47.49 40.28
Leading Leasing Finance 4.08 4.35 -21.24 2.26 117.99 21.79 KCL Infra Projects 1.87 -2.60 25.50 2.47 -45.43 14.49
Quadrant Televentures 1.05 0.00 -19.85 4.39 -41.38 64.29 Rollatainers 1.09 -0.91 9.00 1.34 -45.39 27.26
Galactico Corporate Ser. 7.64 -18.38 -18.20 12.22 579.79 113.84 Softrak Biotech 6.97 21.22 26.73 1.18 -43.65 31.42

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 20 APRIL 2023. SOURCE: ETIG DATABASE AND BLOOMBERG.
 mutual funds
20 The Economic Times Wealth April 24-30, 2023

CANARA ROBECO EQUITY TAX SAVER

Worthy pick in its category

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 30.04

FUND BENCHMARK CATEGORY AVERAGE FACTS Technology 9.38

Automobile 7.28
26.66 DATE OF LAUNCH
24.58 24.17 31 MARCH 1993 Energy 7.24
CATEGORY
Consumer Staples 6.79
13.68 EQUITY
11.31
9.88 TYPE
ELSS The fund retains a tilt towards financials.
2.68 1.12 1.83
AUM*
3-YEAR 5-YEAR `4,924 Crore
1-YEAR
BENCHMARK
The fund has beaten the index over AS ON 18 APRIL 2023 Top 5 stocks in portfolio (%)
past year but lags over past 3 years. S&P BSE 500 TOTAL
RETURN INDEX HDFC Bank 7.30

ICICI Bank 7.17

Rolling returns (%)

WHAT IT Infosys 5.76
COSTS
FUND BENCHMARK

16.72 Reliance
Industries 5.50
1-YEAR
NAV** State Bank of
15.95 India 3.82
GROWTH OPTION
`114.74
The fund’s portfolio is well diversified yet
14.38 IDCW retains large positions in top few bets.
3-YEAR `35.71
12.96
MINIMUM INVESTMENT
`500
14.61 MINIMUM SIP AMOUNT
Recent portfolio changes
5-YEAR `500 New Entrants
12.72 EXPENSE RATIO*** (%) Dabur India, Interglobe Aviation, ITC, Tata Steel.
2.01
The fund’s long term track record indicates AS ON 18 APRIL 2023
EXIT LOAD
healthy outperformance across time frames. Complete Exits
0%
Note: Returns are rolled daily for past 10 years over relevant time frames. Asian Paints, Max Financial Services.
*AS ON 31 MARCH 2023
**AS ON 18 APRIL 2023
***AS ON 28 FEBRUARY 2023 Increasing allocation

WHERE THE FUND INVESTS

Ashok Leyland, Bharti Airtel, Blue Dart Express,
Dabur India, Hindustan Unilever, Housing
Development Finance Corporation, ICICI Bank,
Infosys, Interglobe Aviation, ITC, Reliance
Portfolio asset Fund Industries, Tata Steel.
allocation style box
Growth Blend Value
How risky is it?
Large

Equity 94.86%
Fund Category Index
CAPITALISATION

Large cap 79.20%

Standard Deviation 15.38 15.88 16.86
Medium

Mid cap 18.26%

Small cap 2.54%
FUND Sharpe Ratio 1.42 1.35 1.39

MANAGER
Small

Debt & Cash 5.14% Mean Return 25.73 25.34 27.34

BASED ON 3-YEAR PERFORMANCE.
INVESTMENT STYLE SHRIDATTA
BHANDWALDAR The fund’s risk-return profile is
The fund takes a distinct large cap tilt 3 YEARS, 5 MONTHS better than category average.
with modest presence in mid caps.
Source: Value Research

Should This fund has no specific market cap bias business and management pedigree. The 21, consistently ranking among the top

You
but retains a large cap tilt, with sizeable portfolio is fairly diversified yet retains funds in its category. While it experienced
mid cap presence. Its preference is for large sized positions in its top few bets. a blip in 2022, its superior downside

Buy growth companies with emphasis on

strong competitive position, quality of
After a lean patch between 2012-17, the
fund put up a stellar show between 2018-
protection makes it a worthy pick among
tax-savings funds.
 pick of the week
The Economic Times Wealth April 24-30, 2023 21

Aarti Industries: On growth path

Capacity expansion, robust R&D, industry tailwinds and investments in technology to drive performance.

T Fundamentals
he manufacturer of specialty chemicals reported a Aarti Industries has also entered into a partnership with
mixed third-quarter performance with revenue de- Deepak Fertilisers for the supply of nitric acid, a critical raw
material, for the next 20 years. The deal will eliminate the CONSENSUS
clining 1% while EBITDA and PAT grew 8.1% and ACTUAL
ESTIMATE
9.7% on a sequential basis. For the fourth quarter, the need to invest in backward integration for nitric acid.
2021 2022 2023 2024
revenue is expected to increase by 1.4%, while the net profit Third, the company has planned a capex of `2,500 crore over
Revenue (` cr) 4,506.10 6,999.96 6,783.30 7,676.35
is expected to decline by 2.6% on a q-o-q basis, according to 2021-22 and 2024-25 to expand capacities in new areas and in ex-
EBITDA(` cr) 981.19 1,928.81 1,124.02 1,346.57
average estimates of analysts compiled by Reuters-Refinitiv. isting product lines. The management is confident of deliver-
Aarti Industries manufactures over 100 products, exports ing an EBITDA growth CAGR of 25% over 2022-23 and 2024-25. Net Income (` cr) 523.23 1,306.77 531.27 648.48

to about 60 countries and has over Softening of input costs, im- Basic EPS (`) 15.02 36.05 14.57 17.91
1,100 domestic and global clients. proving product mix, world-class
The company is facing demand is-
Analysts’ views manufacturing facilities, emerg- Valuations PBV PE
DIVIDEND
YIELD (%)
sues in discretionary sectors (dyes, ing opportunities in industries Aarti Industries 3.33 33.42 0.64
pigments, textiles and automo- like battery chemicals, electronic
4 16 chemicals and high-end polymers Pidilite Industries 19.11 98.35 0.42
tive), which remains a key concern. SRF 8.56 33.23 0.68
Hold Buy
However, most experts are bullish will help the company to sustain
Deepak Nitrite 7.51 28.30 0.38
about its prospects due to multiple growth in the future.
Navin Fluorine International 12.61 74.09 0.23
reasons. Fourth, the company is focus-
First, the Indian specialty chemi-
cals market is expected to grow at 6
ing on information security and
digital transformation through its Brokerage calls TARGET
a CAGR of 12% over the next few Sell UNNATI program, which aims at RECO DATE RESEARCH HOUSE ADVICE PRICE (`)

years, according to the company’s enhancing productivity and com- 19 Apr 2023 YES Research Buy 795
2022 annual report. The growth petence. It is employing hyper- 18 Apr 2023 HDFC Research Buy 879
will be driven by increased demand Aarti industries will benefit from the growth in automation initiatives through 13 Apr 2023 Prabhudas Lilladher Accumulate 660
from end-user industries, such as the Indian specialty chemicals market, process emerging technologies, such as 10 Apr 2023 Phillip Securities Buy 750
food processing, personal care, ag- innovation, value-added products and a rich RPA, low-code no-code, Chatbot 8 Apr 2023 Nirmal Bang Accumulate 550
riculture, auto and healthcare, and pipeline of more than 50 products. and video analytics, to improve its
export opportunities.
Other factors that will support growth are shifting of supply
operational efficiency.
Selection methodology: We pick the stock that has shown
Relative performance SENSEX
100 MARKET PRICE: `544.05
10 105.6
chains from China, import substitution opportunities, the the maximum increase in ‘consensus analyst rating’ during
94.6
government’s PLI schemes for various downstream indus- the past month. The consensus rating is arrived at by averag-
tries, 100% FDI in the chemical sector, and the PCPIR policy. ing all analyst recommendations after attributing weights to
Second, the company’s robust R&D and process innovation each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 66.7
will help expand its customer base and sustain competitive- 1 for strong sell). An improvement in consensus analyst rating
ness. It is adding new chemistries and value-added products indicates that the analysts are getting bullish on the stock.
and has a rich pipeline of more than 50 products. The manage- Only stocks with at least 10 analysts covering them are consid-
ment estimates 25-30% margin potential from such products ered. You can see similar consensus analyst rating changes 19 APR 2022 ET CHEMICALS AARTI INDUSTRIES 20 APR 2023
and the growth will be visible from 2024-25 onwards. during the past week in ETW 50 table. —Sameer Bhardwaj Aarti Industries is compared with ET Chemicals. 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 20 APRIL

STOCK ADVICE COMMENT

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

Maintain ‘Buy’ due to its strong FCF generating capabilities, new product launch pipeline and likely
Clean Science and
JM Financial Buy 1,402 2,255 60.8 stabilisation in gross/EBITDA margins. The recent correction provides a buying opportunity to cap-
Technology ture the expected EPS CAGR of 25% over the next five years.
Strong growth prospects of 3PL business and synergies from express business consolidation. Current
Mahindra Logistics Sharekhan Buy 379 502 32.5 valuations aptly factor transitioning-related uncertainties and provide a buying opportunity.
Reiterate ‘Buy’ due to its robust operating performance, strong deposit growth, healthy asset quality
AU Small Finance Bank Motilal Oswal Buy 580 740 27.6 and expectations of controlled credit costs and healthy return ratios. Also, the reappointment of MD
& CEO removes a key overhang.
Promising prospects amid manufacturing wave in India. Innovative solutions, pricing power, access to
Kennametal India Haitong Outperform 2,229 2,779 24.7 global R&D and likely improvement in EBITDA margins through operating leverage are key drivers.
Reiterate ‘Buy’ due to satisfactory performance in the fourth quarter. Investments in distribution
ICICI Lombard Emkay Buy 1,131 1,400 23.8 channels, prudent underwriting practices, cost rationalisation and new product innovation are key
growth drivers. Any clarity on the stake sale by ICICI Bank will provide a positive trigger.
Fourth quarter earnings may improve due to upward revisions in CY2023 US contract prices, decline in
Tata Chemicals Kotak Securities Buy 991 1,210 22.1 energy costs and realisations on US exports. However, cut in soda ash prices in India raises concerns.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Medium term challenges on demand, uncertain supply side constraints, ramp down in projects in
Infosys Axis Securities Sell 1,389 1,350 -2.8 fourth quarter and likely delay in investment decisions in North America amid global uncertainties.
 financial planning
22 The Economic Times Wealth April 24-30, 2023
How to get retirement
portfolio on track
Ensure the portfolio is well diversified by investing in equity and debt.
Abhijit is due to retire in seven
years. He has been trying dili-
gently to maximise contribu-
tions to his retirement portfolio
and has earmarked a portion
of his regular savings to PPF,
fixed deposits and a few long-
term bonds. He wants to make
sure that his retirement corpus
is on target. However, he finds
that his corpus has not grown
as much as he expected it to in
the 10 years that he has been
saving and worries that it may
not be sufficient. He would like
advice on what could be causing
this under-performance.
smart things to know
1
Health insurance is
comprehensive and
covers several medi-
cal expenses, includ-
ing hospitalisation,
whereas Mediclaim
typically only cov-
ers hospitalisation-
related costs for
specified illness.
A
bhijit’s portfolio may be suffer-
ing from being too conservative
and not adequately diversified
as most of his retirement sav-
ings seem to be in debt-oriented invest-
ments. He needs to review his portfolio’s
asset allocation to correct this. As his
retirement is a few years away, he should
ensure that a substantial portion of his
portfolio is in investments that give higher
returns, such as equity. He has time on his
side, which is important when investing in
assets whose return are volatile since the
risk reduces as the holding period increas-
es. Abhijit’s employment retiral benefits,
PPF and other investments are all debt-ori-
ented with low returns. This has also limit-
ed diversification benefits as his portfolio
is not positioned to participate in rallies in
equity, gold or real estate. He should recast
his asset allocation so that his retirement
portfolio is growth-oriented. The best way
to do this would be to increase allocation
to non-debt investments through periodic
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Mediclaim versus health insurance
2
The hospitalisation
3 5
cover in Mediclaim
There are no add-on is limited and
covers with Mediclaim typically does not
but many add-on exceed `5 lakh,
covers, such as critical whereas in health
illness, maternity insurance, one can
benefit and infertility select higher cover
cover, are available which can go up
with health insurance. to crores.
PAPER WORK
:: Claiming unclaimed/
unpaid dividend
Dividends are declared out of
profits made by a company and
distributed to shareholders. But if
they are unclaimed for more than
seven years, they are transferred
by the company to Investor Educa-
tion and Protection Fund Authority
(IEPF). Here’s how to claim them.
Form IEPF–5
The rightful claimant
GETTY IMAGES
or legal representa-
tive of a deceased per-
son needs to fill the IEPF-5 form
on the IEPF website (https://www.
iepf.gov.in/IEPF/refund.html).
Documents
The following
documents need to be
provided:
z Aadhaar card of holder (passport/
OCI/PIO card in case of NRIs).
z Client master list of demat ac-
count of the claimant.
z Proof of entitlement—share
certificate, dividend warrant,
investments as well as any fresh lump sum transaction statement, etc.
amounts so that over time the asset alloca-
tion is more in tune to what is suitable.
z In case of death of original share-
holder, notarised copy of death
Another aspect that Abhijit needs to certificate along with succession
watch out for is under-performing assets, certificate/probate or Will and
if any. This will pull down the returns of NOC from other holders.
his overall portfolio. To avoid this, he must
z Indemnity bond for transmission.
review the performance of each of his in-
vestments periodically and exit those that
are consistently under-performing their
benchmark and peer group investments.
Process
After the application
He must limit his portfolio review to once
is submitted, a service
a year for his core investments because
over-managing the portfolio is as harmful
request number is generated. Origi-
nal copy of indemnity bond, copy
as under-managing it.
of acknowledgement form, IEPF-5
Abhijit must also review his portfolio
form and other documents need to
from the perspective of tax efficiency and
be submitted physically to the nodal
investment costs as both will have a signif- official appointed by the company.
icant impact on the returns of a long-term
retiral portfolio. A product with higher
cost must justify its inclusion with better Verification and
returns. He must keep his investments processing of
simple and automated so that he is not re-
refund
quired to make frequent decisions.
After the application is
approved by the company, the IEPF
will released the refund and credit
it to the applicant’s bank account.
:: Points to note
4
z Shares transferred to the IEPF are
debited from the demat account.
Both If they were held in physical form,
Mediclaim they are deemed to be cancelled.
and health z Any further dividends on such
Since Medi- insurance of- shares are credited to the IEPF
claim has a fer financial until they are claimed by the
lower coverage, protection rightful owner.
the cost is low- against
er compared to medical
health plans. emergencies.

Don’t avoid equities for
retirement savings
Sujeet Sinha is saving for his children’s goals and retirement. Here’s what the doctor has advised:
1 2
FIRST CHILD’S
EDUCATION: 12 years
GOALS
PRESENT COST: `20 lakh
FUTURE COST:
`62.76 lakh
PORTFOLIO
CHECK-UP
Investing in a mix of
flexi cap, large cap and
thematic funds for the
past 4-5 years. 1 schemes and their
Early start has helped
but needs to hike SIPs
by 5% every year.
Some laggard funds
need to be replaced
with better schemes.
Start SIPs in equity
fund for retirement..
Note from
the doctor
Avoid sector and the-
matic schemes unless
sure of prospects.
Use NPS to save for re-
tirement and cut tax.
Review investments
and rebalance at least
once in a year.
Reduce risk when goal
is near so that you
don’t miss the target.
Early retirement not possible
Dinesh Sharma is saving for his children’s education and retirement. Here’s what the doctor says:
1 2
FIRST CHILD’S EDUCATION:
GOALS
4 years
PRESENT COST: `10 lakh
FUTURE COST: `14.64 lakh
FUND NAME
1 Canara Robeco Emerging Equities
2 Parag Parikh Flexi Cap
HDFC Retirement Savings Equity
PGIM India Midcap
3 hike SIPs by 5% every year.
PPF
mutual funds
The Economic Times Wealth April 24-30, 2023 23
PORTFOLIO
DOCTOR
Not many
ARINDAM
investors
know
3 4 5
whether
SECOND CHILD’S FIRST CHILD’S SECOND CHILD’S RETIREMENT INCOME: they have
EDUCATION: 15 years MARRIAGE: 20 years MARRIAGE: 23 years 23 years invested in
PRESENT COST: `20 lakh PRESENT COST: `25 lakh PRESENT COST: `25 lakh CURRENT NEED:
the right
FUTURE COST: FUTURE COST: FUTURE COST: `1.2 crore (`50,000 a month)
`96.74 lakh `1.2 crore FUTURE COST: `5.68 crore
funds and if their
`83.54 lakh
fund portfolio is on
FUND NAME AMOUNT
INVESTED (`)
EXISTING RECOMMENDED ACTION
SIP (`)
NEW SIP
(`)
track. The Portfolio
Doctor assesses the
Increase SIPs to `5,000 in this outstanding flexicap
Parag Parikh Flexicap 1,83,115 3,000 fund. Hike by 5% every year. 5,000 health of the fund
Franklin India Equity Advantage 1,87,039
Fund has underperformed. Shift corpus and SIPs to
4,000 ICICI Pru Bluechip. 0
portfolio, examines the
Start SIPs of `5,000 in this large cap fund. Increase
ICICI Pru Bluechip amount by 5% every year.
5,000 suitability with regard to
Fund is a chronic underperformer. Switch to Parag the goals and, if
DSP Midcap 2,04,576 3,000 Parikh Flexicap. 0
required, recommends
Continue contributing to this tax advantaged
Sukanya Samridhi Yojana 2,86,000 12,500 scheme. Use maturity corpus for goal. 12,500 corrective measures. The
2
Continue investing in this outstanding ELSS fund. advice given is based on
Canara Robeco Equity Taxsaver 14,567 3,000 Hike SIPs by 5% every year. 3,000
the performance of the
Continue SIPs in this stable value fund. Hike amount
ICICI Pru Value Discovery 14,830 3,000 by 5% every year. 3,000 funds, the risk profile of
3
Fund has underperformed. Switch to Mirae Asset the investor as well as
DSP Top 100 Equity 21,991 4,000 Largecap for better returns. Hike SIP by 5% every year. 4,000
his financial goals.
Switch to diversified SBI Large & Midcap Fund. Hike
SBI Infrastructure 21,428 3,000 by 5% every year. 3,000
4
UTI Transportation & Logistics 18,789
Switch to diversified UTI Value Opportunities. In-
3,000 crease SIP by 5% every year. 3,000 Assumptions used
in the calculations
Start SIPs of `3,000 in this flexicap fund. Increase
HDFC Retirement Savings Equity 0 0 amount by 10% every year. 3,000
INFLATION
Reduce contribution and invest in NPS instead. Don't Education For all
5 EPF & VPF 20,50,000 32,000 withdraw before retirement.
25,000
expenses other goals
Open NPS account and start SIP of `4,000. Hike by
NPS 0 0 5% every year. Don't withdraw before retirement. 4,000
10% 7%
,
TOTAL `30,02,335 `70,500 The goals can be reached using the mutual
`70,500
funds marked in the same colour.
RETURNS
Equity funds Debt options
12% 8%
PORTFOLIOS
ANALYSED BY
RAJ KHOSLA,
3
PORTFOLIO Managing Director
SECOND CHILD’S EDUCATION: RETIREMENT INCOME: 20 years and Founder,
CHECK-UP
MyMoneyMantra
7 years CURRENT NEED: `1 crore
Investing in equity
PRESENT COST: `12 lakh (`40,000 a month)
funds for past 3-4
FUTURE COST: `23.38 lakh FUTURE COST: `3.86 crore years. WRITE
AMOUNT EXISTING
Late start means TO US
RECOMMENDED ACTION
INVESTED (`) SIP (`) won’t be able to
reach goals with ex-
FOR HELP
Increase SIP amount to `13,000 in this outperforming large and If you want your portfolio examined,
3,69,000 5,000 mid cap fund. Hike SIP by 5% every year. isting investments.
write to etwealth@timesgroup.com
Increase SIP amount to `12,000 in this outperforming flexicap Must increase invest- with “Portfolio Doctor” as the subject.
2,72,000 10,000 fund. Hike SIP by 5% every year. ments and SIPs every Mention the following information:
Start SIPs of `10,000 in this outstanding flexicap fund and hike year. Retirement at z Names of the funds you hold.
3,45,000 0 amount by 5% every year. 50 not possible. z Current value of the investment.
z If you have SIPs running in any
0 0
Start SIPs of `10,000 in mid cap fund PGIM India Midcap and Review mutual fund of them.
z The financial goals for which you
portfolio at least
invested.
0 0
Don't have fixed income investments. Open PPF account and once a year. Change z How much you need for each
start contributing `12,500 every month. if any fund’s perfor- financial goal.
TOTAL `9,86,000 `15,000 mance slips z How far away is each goal.
 your feedback & more...
24 The Economic Times Wealth April 24-30, 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.
As a former banker, the cover story,‘Is Can we consider the same ratios for co-
your bank safe?’ was especially
interesting to me. Even after being forced Safeguarding operative banks or is that a Pandora’s Box
best left untouched?
to invest millions of rupees in some
corporate entities, which are allegedly
involved in dubious transactions, and
India’s banks Mangala Krishnamurthy

The special feature, ‘What are the roles

writing off crores of rupees as NPAs of This is regarding the cover story. and rights of a nominee ?’ analyses
willful defaulters like Mehul Choksi, The Indian banking sector is funda- nuances of nomination in bank accounts,
Vijay Mallya, Nirav Modi and many mentally strong. Mobilising deposits shares, securities and movable assets.
more due to the patronage they seem to from the public and utilising them It has been made unambiguously clear
enjoy, if our public sector banks are still judiciously happens with ease. So, that nominee and legal heirs are not
on safe ground, it is only due to the strong depositors can be rest assured that the same. The chart of requirements of
fundamentals of the banks and the their money is safe, be it in private nomination in case of bank accounts,
honesty of the bankers in general. The banks or public sector ones. Even securities and social media is quite
RBI’s enviable monitory policies, control if a bank fails, the government will comprehensive and laudable guidance
mechanism and effective monitoring safeguard the interest of depositors. for investors and account holders.
play a vital role in the good functioning Moreover, the RBI does its bit well as However, rules of nominations should be
of these banks. Our banks would shine as far as regulating the money market uniform for all assets. The clients should
the best banks in the world, if only they is concerned. be made aware of prompt modification of
are allowed to function independently S. Ramakrishnasayee nominees in bank accounts, securities
without any external interference from etc, when there are changes in families
unscrupulous quarters. and circumstances, so that legal dispute
Tharcius S. Fernando between nominees and legal heirs can
be avoided. The article aptly advises
The idea of evaluating a bank before that similar precaution in preparation
investing in one or reviewing their The study is interesting as it shows that Therefore, I feel that a weighted average of Wills in case of immovable properties
performance periodically has never the same bank is best in one category and should be worked out to arrive at a single should also be taken to avoid protracted
occurred to most of us. Your story gives the worst in another. For instance, IDBI performance measure. I think there should legal tussle between family members.
readers good parameters to look out for. Bank is worst in gross NPA and best in PCR. be a CIBIL score for banks and bankers too. Vinod Johri

REALTY Affluent housing hub in Mumbai

HOT SPOT Bandra West-Juhu has some of the most expensive properties in the city.

Supply by BHK
LOCALITY SNAPSHOT
BANDRA WEST-JUHU, MUMBAI 1 BHK 10%
Bandra West-Juhu is an affluent area boasting robust social infrastructure and excellent connectivity to rest of MMR. 2 BHK 32%
It enjoys connectivity via Western Express Highway, SV Road, Linking Road, Bandra Worli Sea Link and
Western line of suburban railways. 3 BHK 41%
Hospitals: Lilavati, PD Hinduja | Education: Kalina campus of Mumbai University, Podar, Mithibai College | >3 BHK 17%
Retail: Linking Road | Hotels: Hyatt, JW Marriott.
Consumer preference
PRICE RANGE: `30,500-45,500 psf DISTANCES: CSMI Airport: 5.5 km Bandra Junction: 4.5 km WEH: 2.5 km by budget (`)

1 BHK
LOCALITY VALUES 15% 14% Below 2 crore
Linking Road

2-4 crore
400 (sqft)
Juhu Bandra West
1.35
`Crore Hubtown
Solaris Price (`/sqft): 40,000-45,500 19% 25% 4-6 crore
6-8 crore
(avg) *Rent (`/month): 1,50,000-2,50,000 Above 8 crore
Santacruz (W) Shanti Nagar Santacruz West 27%
Industrial Estate
2 BHK Price (`/sqft): 30,500-40,500
700 (sqft) Juhu
Khar (W) *Rent (`/month): 90,000-1,20,000 Consumer preference
2.60
`crore
WEH

Bandra (W) Mumbai Khar West by carpet area (sqft)

(avg) BKC
Bandra (W) Price (`/sqft): 35,000-42,500
17% 12%
Lin
k *Rent (`/month): 95,000-1,50,000
3 BHK S ea Below 500
rli Juhu
1,100 (sqft) Wo 500-1,000
n dra 29%
Price (`/sqft): 35,500-43,500
4.45
`crore Ba 1,000-1,500
*Rent (`/month): 1,00,000-2,00,000 42% Above 1,500
(avg)
Note: Map not to scale *3 BHK Rent (INR/month)

Schools 20+ Hospitals 20+ Restaurants 20+ Banks 20+ Grocery Stores 20+ Petrol Pumps 15+ In dia’s No. 1 P ropert y Sit e

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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.
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