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THE ECONOMIC TIMES MANAGING

FINANCES
AFTER 80
P15
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 14 No. 23 | June 3-9, 2024 | 24 pages | `8
UNLISTED SHARES
GOLD MINE or
MINEFIELD? This unchartered territory
offers high returns, but also
carries very high risks. Find
out whether you should
invest in unlisted shares. P2
SHOULD YOU NHCX: SINGLE HOW TO

JOIN THE PORTAL BUILD
MANUFAC- FOR HEALTH CAREER
TURING RUSH? CLAIMS CAPITAL
P5 P12 P16
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cover story
02 The Economic Times Wealth June 3-9, 2024
UNLISTED SHARES
Gold mine
or
Minefield?
This unchartered territory offers terrific rewards, but also carries very
high risks. Find out whether you should invest in unlisted shares.
By Babar Zaidi
Unlisted stocks are more volatile, less rewarding
I
nvestors in Tata Technologies
were overjoyed when the stock got Primex 40 has outperformed Nifty 50 in the past three years, but mid-cap and small-cap indices were far ahead.
listed in November 2023. At `1,314,
the closing price on listing day was 240 3-year CAGR
216.06
more than 160% above the issue
price of `500. Not all investors made a kill- Index values are normalised Nifty Midcap 100
215.42
ing though. A few weeks before the IPO 220 27.0%
opened on 22 November, Tata Technologies
shares were trading at around `860 apiece Nifty Smallcap 250
in the unlisted market. The investors who 200 As IPOs revved up 26.2%
bought these shares at that price saw their after Covid, the
investment go up by only 53%. Primex 40 shot up Primex 40
70% in 2021.
180
Even 53% was not theirs for the picking, The euphoria 175.21 18.2%
thanks to a rule that disallows pre-IPO subsided soon. The
investors from selling their holdings till index stayed flat for
Nifty 500
160 nearly 18 months.
six months after a stock is listed. The lock-
in period for Tata Technologies ended last
18.3%
100
week on 30 May, but the share price is now Nifty 50
140
`1,030, which means the gains are now 173.32
pared further to less than 20%.
14.7%
Here’s some cold comfort for the early 156.87
120
bird investors in Tata Technologies. They
are luckier than those who bought Paytm Source: WWIPL,
shares at `3,200-3,400 in September 2021, 100 Reuters-Refinitiv
6-8 weeks before the company launched its 3 May 2021 3 May 2022 3 May 2023 24 May 2024
IPO. The first shock for Paytm sharehold-
ers came when the company announced an all-time high. Much of this is thanks to While the hits (Tata Technologies, IREDA, `50,000 should be in risky assets,” says
the IPO price band, which was lower at the ease of investment provided by online Utkarsh SFB, Cyient DLM) have stayed Rahul Ghose, CEO of Hedged.in. “Given
`2,080-2,150. Then the stock plunged 27% investment platforms. Anyone with `5,000- in the memory of investors, the lemons that this allocation is only 5% of the equity
on listing day, and pre-IPO investors could 10,000 and a demat account can now invest (Paytm, LIC and Delhivery) have been portfolio, the risk is negligible, but the op-
do nothing but watch in dismay. By the in unlisted stocks. quickly forgotten. portunity is huge because `50,000 has the
time the six-month lock-in period ended There are several reasons why unlisted potential to become `5-6 lakh,” he adds.
on 18 May 2022, the share price had fallen shares are getting so much attention. Should you invest? Unfortunately, data does not support
to `535, almost 85% below the price in the Many IPOs that came out in the past 2-3 In the past decade, many Indians have em- this argument. In the past three years, the
unlisted market, in October 2021. years have given enormous returns to braced the equity culture and started in- Primex 40 has beaten the benchmark Nifty
Welcome to the volatile, uncertain and investors. However, due to the huge rush of vesting in stocks and equity mutual funds. 50 and matched the returns of the broad-
opaque world of unlisted shares. Though investors, IPO allotment is only a fraction Some analysts feel that retail investors based Nifty 500, but its returns are nowhere
low on transparency and fraught with high of the number of shares applied for. To get should put money in unlisted shares if they near that of the Nifty Midcap 100 and the
risks, this segment of the capital market around this problem, investors want to buy want outsized returns. “Every retail inves- Nifty Smallcap 250 indices (see chart). True,
is humming with activity. Last month, the stocks ahead of the IPO. tor should have at least 5% of his equity some unlisted stocks have performed well
Primex 40 index, which tracks the perfor- Interestingly, the IPO market itself has portfolio allocated to unlisted shares. So, in the past year, but many others have de-
mance of 40 top unlisted companies, hit been a mixed bag in the past few years. if your equity portfolio is `10 lakh, at least clined (see tables).
cover story
The Economic Times Wealth June 3-9, 2024 03
Unlisted shares created wealth … … but investors also lost money

The biggest winners in the past year. These shares were the biggest losers in the past year.
Last traded price (`) Last traded price (`)

Stock 2023 2024 Change (%) Stock 2023 2024 Change (%)
Waaree Energy 600 2170 262 API Holding 21 9.30 -56
Axles India 175 600 243 BLSX 34 17 -50
Nayara Energy 180 600 233 Oravel Stays (OYO) 70 35 -50
Manjushree Technopack 1,000 3,100 210 LAVA International 96 50 -48
Indian Potash 1,000 3,100 210 Mayasheel Retail India 30 20 -33
Orbis Financial Services 90 275 206 Vikram Solar 325 225 -31
Tata Capital 400 990 148 Kurlon Enterprises 850 600 -29
Hexaware Technologies 250 550 120 Shri Vishnu Shankar Mill 400 315 -21
Utkarsh Core Invest 140 300 114 Gynofem Healthcare 85 68 -20
SBI Funds Management 900 1,900 111 Ramaraju Surgical 315 260 -17
Data as on 30 May 2024 Source: WWIPL.
The other problem is that Primex 40 has Velumani sold his venture to PharmEasy are not traded regularly. In some cases, announce quarterly results. There are no
witnessed far higher volatility than the for `4,500 crore in 2021, he reinvested there are no buyers (or sellers) for months such mandatory requirements for unlisted
other indices. After Covid started show- `1,500 crore in shares of API Holdings (par- on end. This means investors can’t en- companies. Audited financial statements
ing signs of receding and the IPO market ent company of PharmEasy) in the hope of ter or exit these counters at a price they can be filed even 12-15 months after the end
revved up in mid-2021, the index shot up growing his wealth further. However, the want to. “Liquidity is limited to nil in of the financial year.
70% within six months. However, it fell valuation of API Holdings has plummeted unlisted shares,” warns Rahul Bhutoria, In some cases, where investors have
in 2022 and remained in the doldrums 92%, from `77,000 crore in 2021 to `6,142 Co-Founder & Director, Valtrust. invested through an organised platform,
for nearly 18 months, before moving up crore now. Shares of the unlisted company, The other problem is the lack of trans- angel fund, etc., they could insist on
again in early 2024. In contrast, the Nifty which were trading at `135 at the time of parency. Listed companies are required specified disclosures at periodic intervals.
indices have been more stable and demon- the deal in November 2021, are now priced to inform stock exchanges about any “These are only contractual obligations.
strated lower volatility. below `10. development that can have an impact on Practically speaking, if the company does
Other financial advisers say retail the share price. This includes new orders, not adhere to these, taking action against
investors should not dabble in unlisted Low on liquidity, transparency acquisitions, or the exit or induction of the same is difficult,” says Samir Sheth,
shares for the simple reason that the risk Close to half of the 600-odd unlisted shares key personnel. They are also required to Partner & Head, Deal Advisory Services,
they entail is not worth the rewards they BDO India.
Grab the early bird advantage...

offer. “The universe of listed stocks pro-
vides retail investors enough opportuni- Mind the costs, and the tax
ties to earn stable returns. Why allocate Investors should also be careful about vari-
Investors in these unlisted stocks made gains on listing.
money to under-researched and obscure ous costs, including the brokerage fee and
stocks when they can’t promise outsized transaction charges. The brokerage rate
Pre-IPO Listing Listing Listing day
returns?” asks Deepti Goel, Associate Stock for unlisted stocks varies across players,
price (`) date price (`) gain (%)
Partner, Alpha Capital. and there is little transparency around it.
“Most brokers sell unlisted shares after
Beware of under-researched Gandhar Oil Refinery 272 30 Nov 2023 302 11
adding their margin to the share price,”
and overhyped scrips warns Krishna Patwari, Founder &
The six-month lock-in period may be the
SMC Global Securities 88 28 Feb 2021 105 19 Managing Director, Wealth Wisdom India.
least of the problems associated with “What investors should be especially
unlisted stocks. Bigger risks are posed by BSE 820 3 Feb 2017 1,069 30 mindful of is the difference in the tax rules.
the paucity of research and lack of trans- Listed stocks and equity funds have sev-
parency in pricing of the shares. Unlike HDFC Standard Life Insurance 250 17 Nov 2017 344 38 eral tax advantages over unlisted stocks,”
bluechip listed stocks, which are tracked says Chartered Accountant Nishant
by dozens of analysts, unlisted stocks are CSB Bank 200 4 Dec 2019 300 50 Khemani. Firstly, unlisted shares have to
not covered by brokerages and equity be held for at least two years for gains to
research firms. Platforms like World be treated as long-term capital gains. For
Wisdom India provide information on the
unlisted companies, but stay away from ... but don’t buy into the hype listed stocks and equity-oriented funds,
the minimum holding period is one year.
recommending stocks. These stocks were trading at high prices before the IPOs. Secondly, long-term capital gains are taxed
In the absence of coverage by experts, at 20% after indexation, compared to 10%
investors have to do the research them- Pre-IPO Listing Listing Listing day for listed stocks. They are also not eligible
selves or depend on tips from finfluenc- Stock for the `1 lakh exemption enjoyed by listed
price (`) date price (`) loss (%)
ers. It is here that investors can get misled stocks and equity funds.
by hype. Just two years ago, Edtech giant UTI AMC 1,000 12 Oct 2020 477 -52 Short-term gains are added to your in-
Byju’s was valued at $22 billion (`1.8 lakh come and taxed at the slab rate. Somebody
crore). However, controversies have erod- One 97 Communications 2,200 18 Nov 2021 1,564 -29 with a taxable income of more than `10
ed its value. Earlier this year, BlackRock lakh will have to cough up 30% tax or more
valued it at $1 billion (`8,300 crore), down Delhivery 700 24 May 2022 537 -23 on such gains. Short-term gains from listed
95% from its peak. stocks are taxed at a lower rate of 15%.
Readers will note that the unlisted mar- —with Kumar Shankar Roy
Aptus Value Housing 450 24 Aug 2021 347 -23
ket is very small, so the price discovery
mechanism is not very efficient. Even sea-
AGS Transact Tech 200 31 Jan 2022 161 -19 Please send your feedback to
soned investors can get it horribly wrong.
etwealth@timesgroup.com
When Thyrocare Founder Arokiaswamy Source: WWIPL.
cover story
How listed firm conned investors

Sebi has banned Varanium and its promoter from the capital markets after investigations revealed malpractice.
by Jyotindra Dubey reputation as a remarkable investment, from the company’s rapid financial as-
W
while the IT services company kept mak- cent to its current troubles. Allegation #3
hen Varanium Cloud ing new announcements to impress un- The red flags raised by the investors
made its debut on suspecting investors. put Varanium under Sebi’s scanner, Misreporting of
NSE’s SME platform
in September 2022, it
The narrative took a turn in November
2023, after investors alleged irregu-
which initiated an investigation focus-
ing on its utilisation of IPO proceeds,
financial statements
quickly became the larities in share trading and dividend fairness of reported financial state- VARANIUM’S STANDALONE REVENUE
talk of the town. Shares of the Mumbai- payments. Adding to the controversy, ments, and genuinity of its corporate an- from operations in 2022-23 was `383.36
headquartered company, allotted at allegations of cheating in two separate nouncements. It revealed that Varanium crore, 985% higher than in the previ-
`122 apiece, soared to `1,602 in just four cases surfaced against Varanium had engaged in dubious transactions to ous year. In its response to Sebi, the
months. Social media buzzed with excite- Cloud’s promoter Harshvardhan Sabale portray a positive financial outlook and company said it had moved from B2C to
ment and word of mouth helped propel its in February 2024, shifting the spotlight misutilised the IPO proceeds. B2B model and revenues from 2022-23
onwards were gross revenues billed by
distributors who sell Varanium services.
Sebi observed that Varanium’s record-
ed sales of `326.22 crore (83.9% of total
sales) during 2022-23 and `268.1 crore
Allegation #1 (71.5% of total sales) in the first half
of 2023-24 came from an entity called
Misutilisation Amtelfone, which is a distributor of VoIP
of IPO proceeds Services in the Middle East and North
AS PER ITS IPO prospectus, Africa. A public domain search showed a
the company was supposed website, which had basic information but
to utilise its `40 crore-odd no details of Amtelfone’s management or
IPO proceeds to set up three individuals associated with it.
containerised data centres Varanium Cloud had also recorded
(`23.4 crore), three digital sales worth `21.07 with Cressanda Solu-
learning centres (`8.4 crore), tions. In 2022-23, its entire revenue was
and for general corporate accounted as trading sales against which
purposes (`8.59 crore). `71.77 crore was recorded as purchase
The company had stated of stock-in-trade. Varanium annual report
that it had received a quota- stated the entire sales were on account
tion from Avance Technolo- of services provided. The contradiction
gies to set up data centres raised doubts over the transaction.
and digital learning centres.
However, when the NSE
sought details of quotations
received by the company,
along with invoices and Allegation #4
other supporting documents,
GETTYIMAGES
Varanium stated that all Stake divestment

documents were with the tax
department as the company
by promoter
was undergoing CGST audit. THE SEBI INVESTIGATION revealed that
It also stated that neither the Sabale was prima facie engaged in fraudu-
company, nor its directors, lent practices by presenting misleading
information about the company’s growth
officers, or employees were Allegation #2 prietary firm owned by an individual
and prospects. Despite numerous posi-
in any way connected with named Raj Kishanchand Jagtani. The
Avance. Sebi further investi- Fund diversion registration certificate of BM Traders tive corporate announcements, boasting
about the company’s success and expan-
gated Varanium and its deal- showed that it was involved in the
BANK STATEMENTS, INCLUDING those sion, Sabale reduced his shareholding
ings with Avance, a BSE-listed wholesale business of fruits and veg-
of the IPO escrow account and Vara- significantly through market sales. He was
company, and found out etables. The reported income of BM
nium’s main current account, revealed holding a 64.22% stake in the company as
that the latter had reported Traders during 2023-24 was a mere
that immediately after receiving the on 31 March 2023. The first lock-in period
revenue of `30.5 crore from `6.4 lakh. A visit to its office revealed
issue proceeds, the company made on promoter shareholding was over on 12
operations in 2022-23, which that it was a residential address
large remittances to an entity named October 2023. As of December-end last
was less than the payments and had no business activity. Sebi
BM Traders (46% of IPO proceeds) year, he held only a 36.38% stake, which is
made by Varanium during investigation stated that prima facie,
and also to several promoter group under lock-in until 12 October 2025. Sabale
this period. it appeared that a significant amount
companies (16%). sold the remaining stake owned by him,
Further analysis of from IPO proceeds had been diverted
Sebi found that BM Traders is a pro- realising a whopping `143 crore.
Avance’s 2022-23 financial to BM Traders.
statements revealed that out
of its total assets of `434.7
crore, it had zero fixed as-
sets and, thus, its capability The bottom line
to construct the proposed THE INVESTIGATION CON- financial statements by presented a rosy picture est. Considering its findings,
data centres for Varanium ap- CLUDED that Varanium had recording fictitious sales about the financial health of Sebi, in May 2024, banned
peared doubtful. misutilised the IPO proceeds and purchases. The mis- the company, leading to an Varanium and Sabale from
and had manipulated its stated financial statements increase in investor inter- the capital markets.
mutual funds
GETTYIMAGES
Should you join the
supportive macro environment, are lead-
ing to high utilisation of existing capex, as
well as an increase in overall capex,” re-
marks Gautam Kalia, Head Super Investor,
manufacturing rush?
Sharekhan by BNP Paribas. “Along with a
growing working-age population and rising
domestic demand, these factors position
manufacturing as a major growth theme
for India over the next decade,” asserts Lalit
Kumar, Fund Manager, ICICI Prudential
Manufacturing Fund.
The buzz around manufacturing sector is driving AMCs to roll out new funds. The initial signs are encouraging. Apple
plans to build over 50 million iPhones in
India in the next 2-3 years. Foxconn, one of
its key suppliers, announced a $1.5 billion
by Sanket Dhanorkar Flavour of the season flexi-cap fund returned 11.7% and the best investment in India. Tata Group is planning
A
Back in 2006-7, infrastructure was the dar- infra fund only managed 11%. Infra funds’ an iPhone assembly plant in Tamil Nadu,
s the buzz around India’s ling of the stock market. Everyone was sold return profile has improved only in the past with its Karnataka plant already opera-
manufacturing sector on India’s imminent infrastructure boom. two years, averaging 12% since 2007. In com- tional. Google will make Pixel 8 phones in
grows, AMCs are eager to Order books were growing and businesses parison, flexi-cap funds have averaged 13%. India with Dixon Technologies. Micron
capitalise on the momen- were borrowing heavily to expand capac- The returns clearly did not justify the hype became the first major global semiconduc-
tum. Fund houses have been ity. Investors, caught up in the hype, were around infra stocks. tor company to put up a base in India. AMD
lining up new fund offers (NFO) of flocking to any fund with the ‘infra’ tag, and Will manufacturing go the way of infra- inaugurated its largest global design centre
equity funds focused on manufactur- AMCs were eager to oblige. Six of these funds structure? The central narrative sounds in Bengaluru as part of a $400 million in-
ing. Mahindra Manulife AMC’s fund were launched in 2007, with another three familiar—a country on the brink of un- vestment.
is currently open for subscription, funds arriving in early 2008. shackling its ambitions. The government India’s manufacturing sector is gaining
while Baroda BNP Paribas AMC’s of- The initial hype fizzled out spectacularly, has recently pushed to revitalise manu- momentum, reflected in economic activity.
fering is waiting in the wings. In the leaving many investors with poor returns. facturing through initiatives like Make in In March, the HSBC India Manufacturing
past year, there have been five new By March 2013, nearly all infra funds were India and PM Gati Shakti. Its ‘Aatmanirbhar PMI index reached a 16-year high of 59.1,
launches, bringing the total to seven bleeding and remained chronic underper- Bharat’ plan promotes local goods over indicating strong expansion. In 2023-24,
active and three passive funds with a formers until 2022. From 31 May 2007 to 31 costly imports, and ambitious PLI schemes India achieved record merchandise exports
manufacturing focus. However, the May 2022, infra funds delivered a paltry offer incentives for manufacturing in areas of $778 billion, according to the Commerce
last time there was this much excite- annualised return of 8.3%, equivalent to like electronics, bulk drugs, pharmaceuti- Ministry data.
ment around a theme, it ended up being the Public Provident Fund (PPF) returns cals, telecom hardware, and food processing. Analysts are confident that India’s manu-
a washout. for the same period. In contrast, the average Additionally, India aims to capitalise on the facturing sector has stronger foundation
‘China+1’ strategy, attracting global firms than its past infrastructure ambitions.
seeking alternative suppliers. Arihant Bardia, CIO of Valtrust Capital,
Analysts believe that with clear intent and notes that the infrastructure sector in the
Recently launched funds an enabling environment, manufacturing
presents a multi-decade investment oppor-
2006-8 period was burdened by unhealthy
leverage, red tapism and corruption. It was
Launch Fund Net assets (` cr) tunity. “There is strong government support also cyclical and had long gestation periods,
for self-reliance through ‘Aatmanirbhar with delayed returns. These issues do not af-
15 days HDFC Manufacturing NA Bharat’. These reforms, coupled with the fect manufacturing companies today.
Tata Nifty500 Multicap India
78
Older funds are faring well
1 month Manufacturing 50:30:20 Index
2 months Canara Robeco Manufacturing 1,242 Increased manufacturing activity has boosted returns.
5 months Axis India Manufacturing 4,683 LAUNCH

NET ASSETS
(`CR)
RETURN (%)
1-YEAR 3-YEAR 5-YEAR

9 months Quant Manufacturing 652
ICICI Pru Manufacturing Oct 2018 3,883 71.0 31.4 26.1
Navi Nifty India
1 year, 9 months Manufacturing Index 30 Kotak Manufacture in
India
Feb 2022 1,933 53.1 NA NA
2 years, 3 months Kotak Manufacture in India 1,933
ABSL Manufacturing
Mirae Asset Nifty India 50.4 17.8 18.3
2 years, 4 months Manufacturing ETF 130 Equity
Jan 2015 950
Source: Value Research

Nifty500 TRI 38.2 19.3 18.3
Data as on 27 May | Source: Advisorkhoj
mutual funds
The manufacturing theme is more di- Infra funds failed to justify initial hype
versified, covering a mix of consumption-
These funds have consistently underperformed, resulting in sub-par returns.
driven and old-economy businesses. The
Nifty India Manufacturing Total Return 15-year CAGR (till 31 May 2022)
Index (TRI), the benchmark for these
11.0 11.7
funds, includes auto and auto components 9.8 9.4
(31%), capital goods (21%), and healthcare 8.9 8.6 8.6 8.5 8.3
(14%). “Manufacturing covers nearly 37%
8.5 6.1 6.0
of the overall market cap and is well di-
versified across sectors,” observes Kalia.
Comparatively, infra funds played within
narrower confines, which elevated their
risk profile.
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Despite recent wins, investors should be

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facturing. Progress varies by sector, and the
government’s PLI schemes have fallen short Source: Value Research
in textiles, IT hardware, specialty steel, “There is growing concern that mutual Should you take the bait? facturing sector. With additional pres-
medical devices, white goods, and auto com- funds may be over-emphasising the manufac- Manufacturing funds present a compelling ence of banking and financial services
ponents. While overall investment exceeded turing sector, much like the infrastructure theme supported by various factors. Unlike companies, which are currently valued
expectations last fiscal year, production was sector was in 2006-7, which eventually disap- past infrastructure promises relying on attractively, these funds provide bet-
uneven across sectors. pointed many investors. The sustainability distant profits, manufacturing is grounded ter comfort.” He only suggests taking
A decade after the launch of ‘Make in of the manufacturing boom remains uncer- in more immediate potential. However, it dedicated exposure to manufacturing
India’, the manufacturing sector contrib- tain,” contends Feroze Azeez, Deputy CEO, remains an idea with uncertainties. This to those with higher risk appetite.
utes only 15% to the GDP, well below the Anand Rathi Wealth. Valuations are crucial, renders targeted investments in the theme India’s journey to becoming a manu-
targeted 25% by 2022. India still lags as a and while the current manufacturing buzz risky. “Investors should be cautious about facturing hub will be a long climb.
contender to replace China as the global isn’t as feverish as the infrastructure boom of making focused bets on any specific sector, Investors should not expect big pay-
manufacturing hub. While China’s global years past, stocks are trading at a significant including manufacturing,” warns Azeez. offs within a few years. As Quantum
FDI share decreased by 9.3 percentage premium. This has made some analysts cau- Anish Teli, Founder, QED Capital Advisors puts it, “Investors need
points from 2019 to 2023, India hasn’t seen a tious. Quantum Advisors India finds the cur- Advisors, cautions, “A spurt of NFOs spe- themes and stories to invest. However,
proportional increase. Other countries like rent valuations less encouraging. “As the op- cific to a theme is usually when that idea has investing in the hype of a theme with-
Vietnam, Mexico, Brazil and the USA are at- portunity broadens, we should expect to see already been discovered and future growth out being realistic about expectations
tracting the majority of FDI flows. A report more options. However, it would pay to have is priced in.” can lead to bad allocation decisions.”
by Kotak Institutional Equities highlights realistic expectations. Japan, South Korea Bardia insists that the manufacturing
India’s failure to attract significant FDI, and China grew in double digits for close to theme is no fad, yet does not find merit in tak-
with net FDI plummeting by 62% to $10.6 bil- two decades. We do not expect that in India,” ing a dedicated bet on it. “Existing flexi-cap Please send your feedback to
lion in 2023-24, according to the RBI. the asset manager observes in a note. funds already provide exposure to the manu-
Why did you switch to/ In which areas does EV

buy an electric vehicle? need improvement?
Environmental Environment top 46% Long charging time is top irritant
concern driving
reason for moving Good mileage
to EVs 52%
42% 61% Limiting
Charging
77% Ease of charging charging in-
EV sales station avail- time

Environmen- frastructure
tal ben- ability around 54%
efit/ reduced residence/work Limited
49%
emissions Battery
Premium is the top 73% 50% driving
range
48% degradation
Latest trend/ High initial cost
consideration while Fuel cost 53% technologically
reduction Low main-
picking insurance, claims tenance cost
advanced
What are the top
a recent ICICI Lombard factors while consider-
survey on electric Ease of charging
a big factor for Which of the following ing EV insurance?
vehicles. buying compared add-ons did you opt for?
Premium remains main consider-
to a year ago Roadside help top ation while buying EV insurance
Fuel cost savings top 50% insurance add-on
62%
reason for Bengaluru Less than one
55% Premium cost 48%
year 35%
74% Coverage Charging station Claim
74% Hyderabad
Delhi
for battery damage 42% settlement
replacement Better IDV experience
79% 37% 32%

66% Bengaluru More than 39% Customer
Mumbai one year Convenience
57% reviews/
65% 32% 37% feedback
77% Kolkata Source: ICICI Lombard ‘Eco-Friendly Evolution: Electric Roadside Software
Ease of associated
Chennai vehicle adoption and its impact on motor insurance’ assistance for breakdown
study by Hansa Research. The survey was conducted
EV-related issues garages/ service centres
among 539 respondents, in May 2024, in metro cities. coverage
guest column
The threat of bad advice

Stringent regulation and financial literacy can help counter it, says Dhirendra Kumar.
T
he amount of energy needed to refute
bull**** is an order of magnitude
bigger than that needed to produce
it. This is Brandolini’s law, or the
Bull**** asymmetry principle. It
highlights a significant challenge in our digi-
tal age. Coined in 2013 by an Italian program-
mer, Alberto Brandolini, the principle empha-
sises the immense effort required to debunk
nonsense, compared to the effortless ease with
which it is created and spread.
Brandolini formulated this insight after
DHIRENDR A KUMAR reading Daniel Kahneman’s book, Thinking, GETTYIMAGES
CEO, VALUE RESE ARCH Fast and Slow, and watching a heated political
debate on Italian TV. Having watched many
money
TV debates in India, I fully sympathise with
Brandolini. The nonsense does tend to flow noring bad advice, regardless of the source. aspect of financial literacy is not just what
mysteries freely in political debates on TV. However,

that’s not what I want to discuss.
By learning to identify and disregard poor
financial guidance, we equip ourselves with
to do with money, but also what not to do
with it. Unfortunately, this type of educa-
Apart from TV, the rise of social media and a valuable skill, much like teaching some- tion is rarely available and is often learned
its army of finfluencers have made this princi- one to fish, rather than giving them a fish. through bitter experience.
ple more relevant than ever. These influencers This approach will serve us well, whether Adding to the complexity, the pervasive
often peddle bad personal finance advice with the advice comes from an online influencer nature of these harmful financial products
little accountability, leading many to make or a certified financial professional. means that even savvy investors can some-
The real pitfalls
poor financial decisions based on dubious This shifts the focus to investor educa- times fall prey to sophisticated schemes.
arise when bad
recommendations. In investing, the problem tion, often referred to as financial literacy. The hard fact is that there is no foolproof
financial products is exacerbated by an industry that actively It’s clear that protecting investors is impos- solution. Some bad products are recognis-
are marketed as good encourages people to deceive themselves. This sible if they lack the knowledge and willing- able easily, some are harder to figure out,
ones, and investors issue has become so pervasive that Sebi is ness to be protected. Therefore, most people and some impossible without a lot of experi-
fail to recognise the starting to take serious action against it. need basic financial literacy, which is com- ence, and by being generally sceptical of
deceit. If you are However, the problem looks very different monly understood as knowing what to do anything new.
from the perspective of regulators, compared with money. This includes understanding Still, stringent regulatory action is es-
saving and investing,
to that of individual investors. From a regula- how the investment world works, the differ- sential. Without the real threat of conse-
encountering such
tory standpoint, the focus is ensuring that ent types of investments, their suitability, quences, including publicly visible punitive
schemes is inevitable; anyone providing financial advice is properly and how to incorporate these into one’s measures against violators, the unchecked
it’s not an exception, regulated. However, for individual investors, financial plans. While this foundational spread of finfluencing will continue. To get
but certainty. Thus, a regulation alone does not guarantee safety. We knowledge is essential, it’s not where most a sense of the outrageous financial advice
more crucial aspect of have all encountered bad, self-serving advice people make serious mistakes. being disseminated, try opening YouTube
financial literacy is not from regulated intermediaries. Whether this The real pitfalls arise when bad financial in an incognito window of your browser and
advice comes from a YouTube finfluencer or products are marketed as good ones, and searching for something as simple as ‘best
just what to do with
a bank’s relationship manager, the damage to investors fail to recognise the deceit. If you stocks to buy’. For seasoned investors, this
money, but also what
the investor is the same. are saving and investing, encountering might be amusing, but for novices, it can be
not to do with it. Therefore, it’s practical to set aside the no- such schemes is inevitable; it’s not an excep- dangerously misleading.
tion that only unregulated sources provide tion, but certainty. Sooner or later, everyone
poor advice. Instead, we should develop a faces the experience of being sold harmful Please send your feedback to
personal methodology for recognising and ig- financial products. Thus, a more crucial etwealth@timesgroup.com
MahaRERA empowers homebuyers

Many homebuyers feel cheat- Parking space dimensions Length x breadth for open
ed when they pay for a parking parking areas for each vehi-
space, but after allotment find MINIMUM SIZE/AREA OF cle to be parked,
PARTICULARS TYPE OF VEHICLE
PARKING SPACE
that it is not large enough for Length x breadth x verti-
their vehicle. MahaRERA, via (a) Motor vehicle 2.5 m x 5.5 m cal clearance for garages,
its order dated 29 April 2024, covered parking spaces pro-
3 sq m (lease dimension
has fixed this issue. The order (b) Scooter, motorcycle vided at basement, podium,
shall be a minimum 1.2 m)
mandates that specific infor- stilts and mechanised park-
mation about parking space, (c) Bicycle 1.4 sq m ing arrangement for each
including its dimensions, (d) Transport vehicle/bus 3.75 m x 7.5 m vehicle to be parked.
should be mentioned not only “MahaRERA has taken a
in the allotment letter but also crucial step of modifying the
allotted, should be mentioned the allotment letter/agree-
in the sale agreement. It has model agreement between
in the allotment letter and the ment for sale.
asked for some changes to be the developer and the home-
sale agreement. The parking Definition of size: The
implemented by promoters. buyer which will enhance the
layout plan, which is approved word ‘size’ of parking space
Parking space-related in- rights of the homebuyer,” says
by the planning authority and has been defined to clarify any
formation: The number, type Subham Chatterjee, Principal
shows the above-mentioned ambiguity. The circular said
and size, as well as the place Associate, ALMT Legal.
details, should be annexed to the word ‘size’ means:
where the parking is booked/ —Neelanjit Das
stocks
GETTYIMAGES
handling its production costs, adds Jasani.
Net profit margins in Q4

Despite elevated interest rates, most com-
panies witnessed margin expansion during
the quarter. However, experts believe the
margins to constrict the June 2024 quarter.
“As we will see CPI-WPI spread compress-
es, earnings growth will recede and mar-
gin expansion will decelerate. During the
next quarter, we might expect certain cuts,
but March 2024 has been a healthy quarter,”
says Riya Oswal Bafna, Co-Fund Manager
at Purnartha One Strategy.
Based on the data analysed by Jasani
for 1,870 companies that have announced
results till 27 May, the interest costs have
risen 28.5% year-on-year amid higher rates
and increased working capital require-
ments. The PAT margin has improved mar-
ginally by 30 basis points year-on-year and
50 basis points on a sequential basis.
ET Wealth tried to identify companies
that have reported industry-leading net
profit margins over a period of time. Data
Bet on healthy net

for the past five quarters (March 2023 quar-
ter to March 2024 quarter) for 2,187 com-
panies (with market cap greater than `100
crore) was used to identify such companies.
Those that have maintained net profit mar-
profit margins
gins higher than their respective industry
medians in all of the past five quarters were
screened. Banking and financial stocks
were not included in the analysis. The data
is sourced from Reuters-Refinitiv database.
There were 286 such companies. In the
Companies that repeatedly maintain net profit margins higher than their past year, the group of these 286 companies
has delivered an average return of 65%. The
industries remain versatile during uncertain market conditions. Nifty 500 index delivered 36.2% returns
during the period. The returns are based on
by Sameer Bhardwaj Companies with rising net profit margins prices, as share price growth is correlated 28 May 2024 closing values. To further re-
M
remain resilient when the markets are expe- with earnings growth,” says Deepak Jasani, fine the analysis, only those companies that
arkets have seen a riencing a rise in volatility. The comparison Head of Retail Research at HDFC Securities. witnessed a year-on-year net profit margin
roller-coaster move- of a company’s net profit margin relative to However, the ratio is not always foolproof as expansion in the March 2024 quarter were
ment in May 2024. After its industry helps investors gain insights it can be influenced by one-off items, which included.
losing 3% in the first into its financial performance and assist in can temporarily inflate or depress profits. The following are five such companies
seven trading days, making informed investment decisions. Net profit margin doesn’t throw light on that were covered by a decent number of an-
the benchmark Nifty 50 index surged “Companies that can grow their net mar- sales or revenue growth, nor does it provide alysts and are currently offering a double-
to its lifetime closing high on 24 May. gins over time witness a rise in their share insight into how well the management is digit share price potential.
However, it closed around 2% lower
from its all-time closing high on 31
May 2024. Factors such as anxiety
over Lok Sabha election results, FPI
Sansera Engineering
selling pressure, delays in rate cuts, UPSIDE ANALYSTS’ RECOMMENDATIONS
12-month Current 1-year target
and the ongoing geopolitical crisis in forward PE price (`) price (`) POTENTIAL BUY HOLD SELL
the Middle East spooked investors.
However, the sentiment received a 19.9 1,033 1,265 22.4% 8 0 0
Nifty 500
boost with the RBI’s approval of a `2.11
lakh crore dividend to the government. THE INTEGRATED player in the consistent quality. 136.25
The markets are expected to rally auto component industry exceeded Sansera is expected to benefit
if the election results align with ex- Reuters-Refinitiv revenue esti- due to rising premiumisation in
pectations. Nonetheless, persistent mates by 1.3%, driven by growth domestic two-wheeler segment,
macro issues and valuation concerns across segments. However, lower revival in exports, the ramp-up in
may constrain the upside potential. other income caused PAT to miss execution and focus on increasing 100
Analysts suggest that investors capi- estimates by 14.5% in the March the share of the non-two-wheeler
talise on the current volatility by accu- 2024 quarter. Operating profit segment. Sansera Engineering
mulating quality stocks. margins surged due to operating Focus on diversification from IC 131.83
Evaluating the earnings potential leverage and strong international (internal combustion) engine com-
relative to revenues can help in iden- performance. ponents by increasing the share of
tifying fundamentally strong stocks. The company enjoys a strong EV and non-auto segments, com-
Such potential is measured by look- order backlog in both auto and missioning of the aerospace and
ing at the net profit margin, which is non-auto components. Its focus defence plant and strong export
calculated by dividing the net profit by on aluminium forging is expected prospects are expected to support
26 May 2023 28 May 2024
the sales revenue. The higher the net to improve product mix and aid growth in the future.
profit margin, the better the financial margins in the future. Moreover, According to a recent Antique product additions, and increasing kit value. Diversifica-
health of an organisation because it in-house designing, forging and Stock Broking report, the company tion in tech-agnostic auto components and non-auto
implies higher profits relative to the machining help the company in is consistently outpacing industry segments should mitigate the EV transition risks, the
sales revenue. creating customised products with growth, driven by new client and reports adds.
stocks
Cera Sanitaryware Triveni Turbine

UPSIDE ANALYSTS’ RECOMMENDATIONS
12-month Current 1-year target 12-month Current 1-year target UPSIDE
forward PE price (`) price (`) POTENTIAL BUY HOLD SELL forward PE price (`) price (`) POTENTIAL
34.5 7,139 8,003 12.1% 12 4 0

49.3 573 694 21.1%
Nifty 500
ANALYSTS’ RECOMMENDATIONS
THE HOME solutions reported a 2.5% year-on-year 136.25
growth in consolidated revenue and a 19% increase in BUY HOLD SELL
PAT for the March 2024 quarter. Despite a challenging 5 1 1
demand environment, lower advertising, promotional
expenses, and a decline in other costs boosted both EBIT- THE INDUSTRIAL steam turbine manufacturer’s net
100
DA and PAT. These figures surpassed Reuters-Refinitiv profit surpassed Reuters-Refinitiv estimates by 5.2%
estimates by 19.9% and 21.6%, respectively. in the March 2024 quarter, driven by healthy product
Cera Sanitaryware sales and robust exports. Domestic sales grew by 33%,
The company is expected to benefit from strong tail-
winds in the sanitaryware industry, driven by the grow- 94.16 while export sales rose by 15% year-on-year. How-
ing real estate sector, rising urbanisation, and increasing ever, domestic order inflows declined due to delays in
preference for feature-rich bathrooms. The manage- finalising orders amid elections, whereas export order
ment anticipates a demand revival after the June 2024 inflows grew by 29% year-on-year.
quarter, spurred by a pickup in real estate projects. It Key sectors driving domestic order inflows include
aims for a 16% revenue CAGR from 2023-24 to 2026-27, steel, cement, pharma, and chemicals, while export
supported by volumes and product mix. orders will be bolstered by industries like waste-to-en-
26 May 2023 28 May 2024 ergy, waste heat recovery, and municipal solid waste.
To sustain growth, the company has undertaken
several strategic steps, including enhancing its product a strong balance sheet, and a healthy cash position. The company is expanding its export market, entering
mix, expanding its distribution network, and increasing An Antique Stock Broking report is bullish on the com- the USA, and diversifying its offerings to support the
marketing efforts. Its key strengths include deeper pen- pany due to its pricing power, strong traction in replace- aftersales segment. The management is investing in its
etration in the luxury segment, capacity expansion plans, ment and project demand. skilled workforce and plans to expand it by 20-25% in
2025-26.
Analysts highlight the company’s superior finan-
PI Industries cial profile, high return ratios, strong free cash flows,
capex-light business model, and market leadership as
UPSIDE ANALYSTS’ RECOMMENDATIONS key strengths.
12-month Current 1-year target
forward PE price (`) price (`) POTENTIAL BUY HOLD SELL A recent Prabhudas Lilladher report is optimis-
32.1 3,618 4,186 15.7% 19 2 3 tic about the company’s prospects, citing a healthy
enquiry pipeline across markets, a growing share of
higher-margin exports and aftermarket sales, strong
Nifty 500 traction in both industrial and API-driven turbines, and
THE AGRI-sciences company missed estimates in the
March 2024 quarter due to lower-than-expected custom 136.25 a robust order book with strong inflows across busi-
synthesis manufacturing (CSM) revenue and weak nesses.
domestic business performance. Revenue and PAT were 100
11.7% and 2.7% below the consensus estimates of ana-
lysts compiled by Reuters-Refinitiv.
Triveni Turbine 143.23
Analysts anticipate that the scale-up of molecules
launched in the past 3-5 years will support growth. The
management targets a 15% revenue growth in 2024-25
and believes that an improvement in domestic demand
could help exceed these estimates. Although there 100
are concerns about Pyroxasulfone, the company’s key PI Industries
product, going off-patent, the validity of combination 104.00 Nifty 500
patents over the next few years will provide stability. 136.25
The CSM segment has a healthy order book of $1.75
billion, ensuring good growth visibility for the coming 26 May 2023 28 May 2024
years. The management plans to launch 8-10 products
in CSM and 4 in crop care in 2024-25, which are expect- CSM growth momentum, pace of commercialisation of
ed to support revenue growth. They expect the pharma new molecules, ramp-up of existing molecules, domestic
business revenue to double over the next 2-3 years. product launches, and a recent acquisition in the pharma
A Motilal Oswal report is bullish due to consistent API and CDMO segments. 26 May 2023 28 May 2024
Indiamart Intermesh
UPSIDE Nifty 500
12-month Current 1-year target ANALYSTS’ RECOMMENDATIONS
forward PE price (`) price (`) POTENTIAL 136.25
BUY HOLD SELL
41.2 2,526 3,000 18.7% 12 2 4
THE E-COMMERCE company reported year-on-year, significantly contrib- expected to support future operating
100
a 17.1% year-on-year growth in uting to revenue growth. Although margins.
revenue and a 78.1% increase in net the company experienced increased A DAM Capital report released af-
Indiamart Intermesh
profit for the March 2024 quarter. churn in its silver package, churn in ter the March quarter results remains
While revenue met expectations, PAT gold and platinum packages re- bullish but anticipates a near-term 90.88
exceeded Reuters-Refinitiv esti- mained healthy. revenue growth deceleration. How-
mates by 24.8%. Operating margins The proportion of premium ever, it is confident in the company’s
improved despite higher employee subscribers increased following the strong fundamental growth driven
costs, thanks to optimised sales and withdrawal from tier 4 cities, and by high digitisation among SMEs, a
marketing expenses and productivity management is optimistic about strong network effect, and the ability
gains from withdrawing from tier 4 achieving 20% growth in collections to increase ARPU through upselling.
towns and non-performing areas. over the next few quarters. Addition- The report notes that the benefits 26 May 2023 28 May 2024
ARPU growth was strong at 10% ally, higher operating leverage is will materialise with a lag. Current price as on 28 May 2024. Nifty 50 12-M forward PE: 20.4. Source: Refinitiv.
interview
“Surge in credit demand will

boost the banking sector”
Corporate balance sheets and banks are in great shape, laying the foundation for a vigorous
private capex cycle, Ashish Gupta tells Sanket Dhanorkar.
have a higher allocation in these areas. liver long periods of consistent growth. This
Additionally, we hold a positive view and an will help achieve the twin objective of wealth
overweight position in the consumer discre- creation and participation in the India
tionary sector, especially in the automotive growth story.
and real estate industries. We are also look-
ing at sectors such as energy, defence, and How will you address the high overlap in
transport, which stand to benefit from gov- your equity funds?
ernment policies. With firms seeking funds We have been proactively and consciously
for growth and new ventures, we expect a bringing down the high overlap in funds.
surge in credit demand, which is expected to Bringing in diverse styles and the co-fund
enhance the banking sector’s results. In the manager concept have helped us look at our
pharmaceuticals industry, we anticipate the style of investing from a higher level. In the
favourable pricing conditions to persist and past year, the overlap has already signifi-
intensify. Conversely, we are underweight cantly reduced and we are now comfortable
on the export-oriented segment due to slow- with how each of the individual strategies is
ing global economic growth. positioned.
How are you navigating the mid- and Will you give more freedom to individual
small-cap space? Are you concerned about fund managers to pursue differentiated
the valuation premi- investing styles?
ums in these areas? Every fund manager
Mid caps and small caps “We want to ensure possesses a distinct
have seen significant investment style which
earnings upgrades,
that one style does is evident in the funds
and this is partially
reflected in their valu-
not get imposed on managed by him. We
want to ensure that
ations. Market inflows all products and there one style does not get
in these categories imposed on all products
have outpaced the is enough diversity of and there is enough
earnings growth due
to increased investor
styles and products.” diversity of styles and
products. As a CIO, I
appetite for these funds. must transcend per-
Consequently, valuations remain elevated, sonal biases towards specific investing
but pockets of opportunities do remain in styles and ensure dedicated oversight for
these categories. Similarly, there are abun- each product. So, to answer your question,
Do you think the delay in interest rate
Ashish Gupta cuts by global central banks will affect
dant opportunities within the large-cap seg-
ment as well.
yes, fund managers are at liberty to pursue
their differentiated investing styles within
equity returns? the broader framework of our investment
CIO, Axis Asset Many economies, particularly India, are How has the investing strategy of Axis philosophy.
Mutual Fund changed in the past year?
Management in an extended Goldilocks scenario and
witnessing sound growth. The health of the We have added fund managers through Why is Axis Mutual Fund shifting focus to
economy is usually reflected in the markets internal elevation and have inducted new hybrid and passive funds?
and that’s why we have been witnessing no- talent as well. We have also expanded our Axis Mutual Fund has always been strong
table or sizeable gains in equities. The delay analyst team and experienced profession- on the equity aspect of the business, boast-
in central banks’ rate cuts is a response to als have joined us. This has allowed us to ing a diverse product suite in the actively
this robust growth. Following the sharp rise, broaden our stock universe. Our aim was managed space. We aspire to become an all-
equities are expected to undergo periods of also to broaden the scope of investment strat- encompassing AMC, catering to all your in-
consolidation in the near term. egies and we introduced new products like vestment needs with a comprehensive range
the Axis Business Cycles Fund and the Axis of products, including equity funds, debt
Which sectors or themes are you cur- India Manufacturing Fund. By incorporat- funds, hybrids, passives, and alternatives.
rently focusing on? ing a range of investing styles and mapping We already have a good spread of passives
The construction cycle is already under way, for different fund managers, our products and hybrid products that we want to bring to
with increased government spending on are today tailored to the needs of a wider the forefront. Focusing on these two is a good
infrastructure and a revival in real estate. investor base. approach to reinforce our investment offer-
Corporate balance sheets and banks are ings, so that investors have an entire suite
in great shape, laying the foundation for a Will the conviction in growth style still from the fund house to invest. We recently
vigorous private capex cycle. We expect that run at the heart of the AMC’s philosophy? launched the Axis Nifty Bank Index Fund
the market trends will be shaped by posi- Certainly. Investing cycles, by nature, wit- and you can expect more offerings in the pas-
tive cyclical trends, and sectors driven by ness ups and downs. Empirical evidence sive segment from us.
capital expenditures, like infrastructure, supports our thesis that growth and quality
locally focused manufacturing, and utilities, style of investing works very well, particu-
Please send your feedback to
are poised to gain. Our investment strate- larly in a high-growth economy like India,
gies are aligned with this outlook, and we where businesses have the potential to de-
QA
your queries
&
I retired in May 2023. I own a house and have I am a 71-year-old senior citizen with no
no loans. With my superannuation corpus, I financial obligations. My assets include a
have made `4.9 crore worth of investments bank fixed deposit of `1 crore, shares val-
as follows: `1 crore in the NPS, `2 crore in ued at `73 lakh, and mutual funds worth
fixed deposits, `30 lakh each in SCSS (mine `45 lakh. I also own a residential flat valued
and wife’s name), `80 lakh in mutual funds at approximately `2 crore. My monthly
and stocks, and `50 lakh in the PPF (mine and expenses amount to around `25,000, while
wife’s name). I also have two rental proper- my gross income from pension is `70,000 a
ties generating `40,000 per month. In future, month. Please advise if adjustments to my
I will need `60 lakh for my children’s wed- investments are necessary to ensure both
dings. With monthly expenses of `50,000, is income generation and safety of my capital.
my corpus sufficient to sustain me in retire- Our panel of experts will answer
ment? Please suggest investment options for
FDs after these mature in December 2024. questions related to any aspect of An individual’s equity exposure, as per rule of
personal finance. If you have a thumb, should be ‘100 minus age’, which places
Your investments are appropriately skewed your age-guided equity exposure at 30%. Over
towards fixed income for your age and well query, mail it to us right away. time, this percentage decreases to reduce portfo-
diversified across fixed income, real estate lio volatility and risk. However, other factors like
and equity, with decent monthly rental in-
come. With 16% in pure equity, you could in-
QUESTION OF THE WEEK net worth, monthly pension, liabilities, sources of
income, investment horizon, financial goals, and
crease this by 5-15%, depending on your risk risk tolerance also influence this decision.
tolerance, to achieve inflation-beating re- Your monthly expenses are well within your
turns. For your children’s weddings, with- pension, which means you don’t have to rely on
draw `60 lakh from your FDs maturing in De- I received a sum of `70 lakh after retire- your financial assets for monthly expenses, giv-
cember 2024. Assuming a life expectancy of ment. However, I do not know where to ing you more flexibility. Your assets are split be-
85 years and monthly expenses of `50,000, invest this amount. I have adequate health tween fixed income and equities in a 46:54 ratio.
increasing by 7% annually, your investments insurance. Please advise on how to utilise Assuming no other financial goals, maintaining
worth `4.3 crore (minus the wedding ex- your current equity proportion is reasonable. If
this amount so that my money remains
pense), plus rental income, should comforta- your equity portfolio is spread out too much,
bly sustain your retirement. safe and provides good returns. streamline it for easier management. Ensure that
When your FDs mature, invest a portion of nominee names and all other details are updated.
the surplus in balanced advantage/dynamic Of the `1 crore in fixed deposits, keep `30-40
asset allocation hybrid mutual funds, and a In the post-retirement phase, you need to manage lakh readily available for medical emergencies or
portion in high-quality corporate bond mutu- your portfolio’s asset allocation while focusing on other needs. Invest the remaining in debt funds
al funds, based on your risk appetite. Hybrid capital preservation, income generation and infla- to reduce annual tax liability while ensuring capi-
funds offer equity exposure with lower vola- tion-beating growth. Here are a few specific strate- tal safety. A combination of target maturity funds
tility compared to pure equity. Avoid over- gies to help you keep your money safe while provid- (investing in government securities and state de-
investing in equity at this stage. Rental yields ing good returns. velopment loans) and active debt funds can work
for residential properties in India are low If you primarily need income, consider parking a well. If you are comfortable with higher risk and
compared to fixed income yields, and man- portion of the corpus in Senior Citizens’ Savings your existing mutual fund portfolio
aging properties can be a hassle. If you can Scheme (SCSS) and RBI floating rate saving bonds doesn’t include hybrid schemes,
manage them well, continue holding them. (FRSB). So if you invest `30 lakh in the SCSS at 8.2%, consider allocating up to 20%
However, if you don’t plan to it will generate `2.46 lakh as annual interest income from the fixed income basket
use or pass on these prop- via quarterly payouts. If this isn’t sufficient, addi- to hybrid funds.
erties, consolidating them tional funds can be invested in the SCSS in your
could be a better option. spouse’s account. If SCSS isn’t an option for your
spouse, you can go for RBI FRSBs, though their cur- Prableen Bajpai
Founder, FinFix Research and Analytics
rent rate of 8.05% may reduce when the interest rate
Rushabh Desai cycle turns down. Bank fixed deposits, offering
Founder, Rupee With Rushabh around 7.5%, can also be considered for additional
Investment Services
interest income. I am 27 years old, earning `4 lakh per
From your corpus of `70 lakh, the portion that you month, before taxes. Currently, I have `30
allocate to interest-bearing instruments will depend lakh in FDs, and my monthly expenses are `1
on your monthly income requirement. For example, lakh. With no liabilities, I’m considering real-
Last year, I transferred some of my shares to if `30 lakh is invested in SCSS, and `10 lakh each in locating some of my FD funds to other instru-
my wife’s demat account. She is not employed, RBI FRSBs and bank FDs, you can earn a monthly in- ments to secure my long-term future. Could
and now her demat account has short-term and you suggest suitable investments for me?
terest income of about `33,000.
long-term capital gains. Should I include these
gains in my own income-tax return (ITR), or do The FD portfolio can also serve as an emergency/
medical contingency fund and an ongoing liquidity If your FDs are earning 7% or more, you don’t
I need to file separate tax returns for my wife?
reserve. While renewing it, divide the FDs into small- need to reallocate them. Instead, start fresh
er amounts to avoid breaking a large FD for small monthly SIP investments in simple equity funds.
As per Section 64(1)(iv) of the Income- needs. Invest the remaining `30 lakh in equity to Allocate 30% of your portfolio to Nifty 50-based
tax Act, 1961, any income of spouse generate inflation-beating returns, if your risk appe- passive equity funds (equity index funds), 25%
from assets transferred without ade- tite allows. Diversify into 2-3 schemes: 30% in large- to Nifty 500-based index funds, and 15% to
quate consideration is to be clubbed cap index funds, 30% in flexi-cap funds, and 40% in Midcap 150 index funds. The remaining 30% can
with the transferer’s income. There- aggressive hybrid funds. Stagger the investment go to short-duration and corporate bond debt
fore, short-term or long-term capital over the next year to average out your entry in equi- funds. If you’re unhappy with your FDs, move
gains from the sale of these shares ty. Investing in equity funds requires a commitment half of these to debt funds. If not, investing in
through your wife’s demat account will of at least 5-7 years to achieve decent returns. FDs is a good diversification strategy. Ensure
be included with your income and You should also ensure that you have your equity investments are made through SIPs.
should be reported in your income-tax health insurance of at least `15 lakh. If Don’t worry about market fluctuations and have
return. There is no need for your wife your current coverage is less, en- a minimum seven-year time frame for
to file a separate ITR, provided hance it with super top-up plans to these investments.
she has no other income protect against high-impact, low-
chargeable under the In- probability medical bills. Vidya Bala
come-tax Act, 1961. Co-Founder, PrimeInvestor.in
Dev Ashish
Founder, StableInvestor, and
Amit Maheshwari Sebi-registered investment adviser Have a question for the experts?
Tax Partner, AKM Global etwealth@timesgroup.com
insurance
NHCX: Single portal

formation and documents between payers
and providers. This will be done through a
single gateway using standard protocols,
and the medical information and data will
for health claims

be well encrypted and secure..
Currently, at the time of discharge, hos-
pitals manually fill up claim forms, scan
documents and upload these to individual
insurer portals to seek approval. At the in-
surer’s end, the data is digitised, manually
The digital platform, to be launched in 2-3 months, will speed up and standardise authenticated and adjudicated. It is then
sent back to the hospital and discharge is
claim settlement process, leading to cost benefits for the insured, says Riju Mehta. processed. With NHCX, most of the pro-
cess will be digitised and automated. The
claim format will be standardised and the
What is NHCX platform? insured’s digitised details accessed via
NHCX is a digital platform developed his Ayushman Bharat Health Account
by the National Health Authority (ABHA) number. The NHCX portal will
(NHA) and Union Ministry of Health automatically validate the details before
and Family Welfare as part of the routing these to the specified insurer. The
Ayushman Bharat Digital Mission. insurer will digitally verify and adjudicate
It is being created on the recommen- it, and hospital will process the discharge.
dation of the joint working group
of the Insurance Regulatory and What are the benefits?
Development Authority of India NHCX will not only help cut down the
(Irdai) and NHA. claim time, but also improve efficiency by
The portal will bring all the players reducing manual errors, increase trans-
involved in the claim process, includ- parency, and enhance policyholder’s expe-
ing ‘payers’ (insurer, third-party rience. “In health insurance, the biggest
administrator, government scheme challenge today is lack of efficient claim
administrator) and ‘providers’ (hos- service, delay in discharges, hospitals
pital, laboratories, polyclinics) at one not understanding insurer products and
place. Irdai has urged all the players to protocol, and health insurers not talking
onboard the platform, and many have in hospital language. Consequently, the
already done so. policyholder is losing trust and confidence
in insurers,” says Dr S. Prakash, MD and
How will it function?
GETTYIMAGES
CEO, Galaxy Health and Allied Insurance.
The portal will simplify, speed up and “There should be a frictionless, paperless,
standardise the claim settlement pro- well-encrypted, standard platform for hos-
cess through seamless exchange of in- pitals and insurers,” he adds.
How claim process will change with NHCX

STEP 2
Hospital manually fills STEP 3 STEP 4
claim forms and scans Hospital accesses multiple Insurer/TPA’s inter- STEP 5 STEP 6
STEP 1 documents (or PDFs). claim processing portals of dif- nal team digitises Insurer Hospital contacts
Policyholder ferent insurers/TPAs to upload and authenticates reverts to policyholder for balance
forwards documents for approval. the forms, then hospital. payment, if any.
cashless claim manually adjudi-
Current to hospital. cates the claim.
claim
STEP 7
approval, Policyholder’s
discharge discharge
process processed.
Wait- Higher
No man- Single No digitisa- ing time cut
Automatic transpar-
ual feeding; gateway, no tion of forms to 1-2 hours,
checking of ency as policy-
standardised separate insurer by insurer; auto- fast approval,
policyholder holder can track
digital claim portal access matic adjudica- cost reduction
details. approval
form. required. tion. expected. process.
New
NHCX STEP 1
process Policyholder
(digital KYC
with Ayush-
man Bharat
Health Account) STEP 4 STEP 6
STEP 3
forwards cash- STEP 2 NHCX validates Insurer/ TPA digi- Policy-
less claim to Hospital uses holder’s
the claim data tally verifies submitted STEP 5
hospital. standard claim forms and auto-adju- discharge
and routes to Hospital contacts poli-
format on NHCX.
dicates (in some cases processed.
the required cyholder for balance
insurer/TPA. manually) the claim. payment, if any.
insurance
Currently, hospitals submit claim re- will be the reduction in pre-authorisation Lombard. They will be able to track the ap- and facilitate only cashless claims, not
quests to multiple insurance companies and approval time at discharge, as well as proval process at any point, and can also reimbursements, with Irdai aiming to
through different portals, resulting in a cut in the number of documents that need expect more types of claims coverage in fu- move towards 100% cashless claims at
inconsistency. “NHCX will enable hospi- to be submitted. “The waiting time will ture, including, OPD, pharmacy bills, etc. the earliest. “Policyholders and hospi-
tals to exchange claim-related informa- become less and improve their experience. tals will benefit from streamlined and
tion in standardised format directly with More importantly, once the patient’s data is How will it help stakeholders? standardised processes exclusively for
insurance companies, reducing errors available on NHCX, it can prevent the hos- Both hospitals and insurers will be able to cashless transactions. The reimburse-
and ensuring uniformity in data presen- pital from committing medical errors, and go paperless and reduce their operational ment process will remain unchanged
tation,” says Bhaskar Nerurkar, Head, help treat emergencies,” says Dr. Prakash. and claim processing costs. Insurers can in- and outside the scope of NHCX for now,
Health Administration Team, Bajaj Allianz “It can also eliminate abuse, wherein due troduce enhanced fraud analytics to reduce continuing with the current proce-
General Insurance. to lack of proper information, a patient is fraud and abuse. dures for submitting and processing
A key feature of NHCX is its integration subjected to more than the required treat- More importantly, the digitisation of claims,” says Nerurkar.
with Hospital Information Systems (HIS). ment, investigation or extended stay in the health records of policyholders will pro-
“Hospitals manually enter claim data in hospital,” he adds. vide reliable customer data to them. “The When will it start?
different insurance portals, which requires The other major anticipated benefits importance of digital data cannot be over- This will take another 2-3 months and
significant administrative effort and in- include reduced insurance premiums and emphasised. It can help in analysis and an announcement is expected soon.
creases the likelihood of errors. The NHCX hospital charges as there will be a slashing enable insurance companies to price their “Currently, we and other insurance
will automate this process by directly of operational costs in claim processing and products. This will also reduce manipula- companies are conducting awareness
integrating with HIS, streamlining data approval. “Besides, once we track frauds tion as insurers will know what the patient programs for the network hospitals to
submission and minimising manual entry and leakage, the outgo will reduce, and we is suffering from before he buys the policy,” onboard them on the NHCX platform,”
errors,” adds Nerurkar. need not go for frequent increase in premi- says Dr. Prakash. Since hospitals are self- says Deshmukh.
The centralised validation of claim data ums,” says Dr. Prakash. regulated, it can help in increasing their The success of the NHCX platform
by NHCX before forwarding it to insurers “For the insured, the process will be accountability as well, he adds. and the subsequent percolation of
will also enhance the accuracy of informa- seamless, as on providing his unique benefits to the policyholders, as well
tion, speeding up the approval process. ABHA number, he will be able to access his Will it process both cashless as the stakeholders, will depend on the
How will it help the insured?

insurance plan from the hospital portal and reimbursement claims? onboarding of maximum number of
itself,” says Priya Deshmukh, Head, Health health insurers, TPAs and hospitals to
The immediate benefit for policyholders Products, Operations & Services, ICICI No, the platform has been built to support the portal.
Cashless claims to be cleared in 3 hours

Irdai has also mandated the insurer to decide on the cashless authorisation within one hour of receipt of the request.
by Riju Mehta 30 minutes and the companies had
Reasons for delay
I
done it. So it is possible to do it,” says
n yet another customer-centric deci- Bhaskar Nerurkar, Head, Health
sion, the Insurance Regulatory and in claim processing Administration Team, Bajaj Allianz
Development Authority of India (Irdai) General Insurance
has mandated that all cashless claims Cumbersome process “The actual problem is that after
be processed within three hours of the The fact that the claim information is hospital sends the final bill, there are
receipt of discharge authorisation request fed manually by the hospital staff and negotiations between insurers and
from the hospital. If there is any delay over then sent to the respective insurer’s hospitals on the agreed tariffs, which
three hours, the additional amount, if any, portal, where it is digitised before being typically take time. Say, the agreed tar-
that is charged by the hospital shall be borne validated and adjudicated manually, iff for a room is `10,000 per day and the
by the insurer from the shareholder’s fund. takes a lot of time. This is a big reason for hospital charges `12,000, then we point
Additionally, the insurer shall have to extended delays. it out and the hospital corrects it and
decide on the request for cashless authori- sends again. This to and fro takes time,
sation within one hour of the receipt of the Doctor’s signature but we will have to find a way to work
request. In case of death of the insured, In many cases, doctors sign the claim files around these,” says Nerurkar.
the claim settlement request needs to be to be sent by the hospital to the insurer Among other notifications, Irdai has
processed and the mortal remains released only after they have completed their imposed a penalty of `5,000 a day on
from the hospital immediately. daily rounds in the hospital, which can insurers, payable to the complainant,
The regulator has set a deadline of 31 cause inordinate delays. if they fail to comply with the award of
July 2024 for insurers to put the necessary the insurance ombudsman within 30
procedures and systems in place in order to need to go hand in hand for a seamless expe- Differences on tariffs days of the receipt of award. This is in
ensure compliance with the notification. rience. Still, it’s probably the first of many If the charges forwarded by the hospital addition to the penal interest to be paid
“In no case, the policyholder shall be steps to ensure that the claim experience differ from the tariffs agreed upon with by the insurer.
made to wait to be discharged from the hos- is streamlined for the policyholder,” says the insurer, there can be a lot of back and The insurer will also have to man-
pital….Insurers may arrange for dedicated Siddharth Singhal, Business Head of Health forth between the two, causing delays. datorily offer coverage and retain
help desks in physical mode at the hospital Insurance at Policybazaar.com. all the credits during grace period if
to deal and assist with the cashless requests. This notification seems set to dovetail Misrepresentation, frauds the premium is paid in instalments.
They shall also provide pre-authorisation with the launch of the digital platform, The manual authentication with outdated Currently, it’s up to the insurer to de-
to the policyholder through digital mode,” National Health Claim Exchange, which fraud analytics can take a lot of time in cide whether they offer cover or not.
stated the notification by the insurance has been designed to help cut down claim case of misinformation, misrepresenta- If a policyholder decides to cancel
regulator issued via a master circular on 29 processing time drastically by automating tion or fraudulent claims made by the his indemnity plan during the term,
May 2024. This circular has repealed 55 cir- much of the process. However, till this hap- policyholder. the insurer will have to refund the
culars issued earlier. pens, will the insurers be able to meet the premium for unexpired policy period,
“This is a positive step in the right direc- deadline when many policyholders regularly
Incomplete information if the term is up to a year and there is
Any incomplete information or manual
tion because sometimes the patient has to experience delays of over six hours? no claim, and for terms more than one
errors in filling up details can entail a
wait long hours for discharge. To be realis- “Our average turnaround time for pre- year if the risk coverage has not begun.
long process of the files being sent back
tic, however, there are two sides to the story. authorisation approval is 47 minutes and
and forth between the insurer and hospi-
For instance, if there is a time lag in the file about one hour for discharge. Even during
tal, taking long hours. Please send your feedback to
being forwarded from the hospital to the in- the pandemic, there were clearcut instruc-
surer, it will still impact the patient. So, both tions that claims should be cleared within
financial planning
PAPER WORK
:: Redeeming mutual
fund investments
Redeeming from a mutual fund is a
straightforward process. Investors
can choose to redeem a part or all of
their investment depending on their
financial needs and goals.
Redemption of units
Redemption of units allows
investors to take a specific
number of units from their
mutual fund investment. This
GETTY IMAGES
method is ideal for investors who need
to withdraw a part of their investment
while keeping the rest invested. It is
also useful when the NAV (net asset
value) is high, and fewer units can
Should you invest in

provide the required amount.
Value redemption
tax-free bonds?
Redeeming mutual fund
value allows investors to
take money, instead of a
specific number of units.
The corresponding units are calculated
I
n order to take a decision it on the stock exchange when based on the current NAV. This is ideal
Gaurav, a public-sector senior executive, is for investors who need a specific
to invest in tax-free bonds, interest rates drop, and make
in his late thirties and looking to invest in a amount of money. It is useful during
Gaurav must weigh its fea- handsome capital gains, he must
financial emergencies where a fixed
fixed return product with minimal risk to tures against other invest- remember that selling such
sum is required.
ments. As an investment provid- bonds may not be possible for re-
build a retirement corpus. He has heard of a ing tax-free income, these bonds tail investors like himself. These
few credit accidents and is vary of default risk. may fare well when compared bonds are not traded frequently. Full redemption
His investment adviser tells him that sev- to bank fixed deposits and debt He must be open to the possibil- Full redemption involves
mutual funds. However, Gaurav ity that he may be stuck with this withdrawing the entire in-
eral tax-free bond issues are coming up from should calculate the effective investment for its entire term of vestment from the scheme.
public-sector undertakings, infrastructure pre-tax interest rate equivalent 10, 15 or 20 years. He must, there- This is typically done when
and compare it for various op- fore, ensure that he does not have the investor no longer wishes to
companies and municipal corporations. Such
tions. As an individual in the a short-term goal associated continue with the scheme.
bonds have long tenors, typically maturing highest tax bracket, he will with tax-free bonds.
after 10, 15 or 20 years, and would make for enjoy the maximum benefit. A Gaurav must understand that
6% tax-free return would mean his investment decisions should Systematic withdrawal plan
an ideal inclusion in his retirement portfolio. approximately 8.5% return for not be driven by tax considera- SWP allows investors to
Every year, interest/coupon will be paid to someone in the 30% bracket, and tions alone. He should not invest withdraw a fixed amount or
7.5% in 20% bracket. For anyone in these bonds just because the number of units at regular
Gaurav and will be tax-free income, while the intervals. It provides a steady
who falls in the 10% tax bracket, interest is tax-free. He must fol-
principal amount will be returned to him on the benefit will be marginal. low the primary rule of invest- income stream while keeping
maturity, but it will not offer any tax benefit. Moreover, compared to other ing—product choice should be the rest of the investment intact. It is
corporate bonds, these bonds driven by his financial goals. ideal for retirees or those who need
These bonds will also be listed on a stock ex- will be highly rated in terms of The safety from default risk regular income. It is useful for creating
change, which would allow investors to ben- credit quality. As government of comes at the cost of liquidity. a secondary source of income.
efit from any appreciation in price and exit the India undertakings, they offer Tax-free bonds can be attractive
minimal risk of default. for him if he is in the higher tax Process
bonds before maturity. Gaurav is wondering However, Gaurav must bear bracket and has no concerns on The investor needs to fill up the
whether he should invest in any of these tax- in mind the long tenor. If he be- funds being locked for longer redemption form/SWP form at
lieves that he will be able to sell time horizons. the fund house website or at
free bonds.
their office. Folio number, bank
Content courtesy Centre for Investment Education and Learning (CIEL). details, identity proof may need to be
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
attached for processing the request.
smart things to know Personal accident insurance
1
Time taken for redemption
2 4
• Equity funds: Typically take
3-4 working days.
• Debt funds: Within 1-2
5
Personal Natural death,
3
For perma- working days.
accident nent total pre-existing
insurance disability or • Liquid funds: Processed
In case of accidental or partial For temporary within one working day.
policy covers death, the entire disabil- total disability, injury, suicide,
you against childbirth and • For SWP, the chosen amount is
sum assured is paid ity, a certain the insurer pays a credited to the bank account as per
accidental to the beneficiary. amount of periodic allowance pregnancy are
death, injury not covered un- the predefined schedule (monthly,
sum insured to make up for the quarterly, etc).
and disability. is paid. loss of income. der this policy.
financial planning
Managing finances after 80

Super seniors need to simplify ways of transferring assets to heirs, find a middle path between financial freedom
and dependence on children, and ensure sustenance for spouse after their passing, says Uma Shashikant.
in and move elsewhere, even if they under-
stand the benefits of doing so. Depending on
the nature of their relationship with their
children, choosing to be with them or in as-
sisted living facilities is more practical than
being alone.
Children who truly care for their par-
ents—and this tribe is constantly on the
rise —would not like them to be alone. My
friend understands that he would leave his
son anxious and worried if he and his wife
lived alone in India. However, winding up
everything and moving seems like too much
change for their age. It is important to nego-
tiate with children the choices for living in
old age and meet in the middle. Living with
children works if the parents are comfort-
able in a new place and have the space and
privacy they desire. If it seems like a choice
that closes other options, and offers too lit-
tle by way of interaction and community
living, assisted living might work. Being
adamant about living alone is a problem
many elders and their children grapple with
GETTY IMAGES
these days.
The third question is about caring for the
spouse. As one ages, one realises that the
couple won’t leave the world together. In the
H
classic mold, the husband worries about
e is a retired bureaucrat and assets that are cumbersome to deal with after the wife’s ability to manage money and the
has travelled the world on work the investor has passed. Land, property, jewels wife worries about the husband’s ability to
assignments with his family. and such physical assets are tough to access manage food and health without the other. I
Always in charge of his work, life and use, or liquidate if the heirs are residents would propose that the years in retirement
and finances, decision-making in another country. Financial assets are rela- be spent in acquiring these skills rather
has come easily to him. However, at 82, he tively easier to operate and transfer. than ringing one’s hand in despair. Neither
finds making big decisions somewhat daunt- It is important to consult professionals to cooking, nor investing is rocket science,
ing. There are three major personal finance understand how laws regarding gifts, estates and it is never too late to learn life skills and
questions to address for a super senior person and taxes apply to heirs. While my friend be in charge.
like him. First, how to ensure that the wealth wants to clean up and consolidate all his finan- If this does not appeal to the other, there
UMA SHASHIK ANT acquired and cared for over a lifetime is made cial assets and keep them in a few mutual fund is no choice but to involve children and
IS CHAIRPER SON, available to heirs. Second, how to balance the folios and bank accounts, he is not sure how their families to assign responsibility and
CENTRE FOR INVES TMENT need for financial freedom with dependence on he wants to deal with the two residential prop- to provide for allocations from the estate
EDUC ATION AND LE ARNING children during one’s lifetime. Third, how to erties. Since his son is a resident of a foreign to keep the other financially stable. As a
provide for the care and comfort of the surviv- country, if he decides to sell these, he must en- rule, assets should vest with the surviving
ing spouse when one has passed away. sure repatriation of he funds and leverage tax spouse and pass on to heirs only after the
The first question has been answered in an credits for payments made in India. spouse’s passing. Keeping assets simple,
earlier column. Simplifying one’s finances is Balancing financial freedom and depend- clean and accessible to begin with helps
always a good policy in retirement, especially ence is challenging. Many modern parents this cause the most. There is no cure for
As one ages, it if one crosses the age of 80. There’s nothing prefer independent living after retirement, victimhood and helplessness. Structuring
becomes clear that sacrosanct about this number in this day and relying on pensions, savings and investments. the assets to provide a stable income to
the couple won’t age, but simplification helps both the inves- Well-off children are usually willing to cover spouse is also a good choice to provide
leave the world tor and his heirs. The first step is to complete large expenses, and in amicable relation- them with a sense of empowerment and
together. Typically, any pending asset-related processes. Verify ships, some dependence for emergencies is not liquidity, even if they are well taken care
the husband worries and update nominations, check and organise frowned upon. of by children.
title deeds, consolidate multiple accounts and Things begin to change with advancing age. To summarise for my senior friend, it is
about the wife’s ability
folios, close dormant accounts, dematerialise The confidence about managing independent- advisable is to keep a target of 6-12 months
to manage money,
paper shares, and review joint holdings for ly takes a hit when when one parent falls ill to consolidate and simplify assets. Address
while the wife worries
proper operation. or suffers a fall. Dependence is often scary for each asset individually, involve profession-
about the husband’s
The second important step in estate plan- children living far away. Not everyone has a als to sell assets, transfer funds, and create
ability to manage food
ning for the elderly is making assets accessible circle of friends or extended family, and even if a will. Use this time to educate the spouse
and health. However, about operating the bank and investment
to heirs. Many investors leave their children they do, one is not sure how long others may be
neither cooking, nor unaware of their assets, causing confusion able to help ageing and unwell elders. Children accounts, and inform the children about the
investing is rocket after they pass away. Consolidate assets and arrange caregivers, work with agencies that assets. It is never too early to simplify one’s
science, and it is never record details, including e-mail and Internet offer such services for food, physiotherapy and finances.
too late to learn these banking access, in a notebook or spreadsheet other routine care, ask parents to move into as-
crucial life skills. for easy reference. With advancing age, either sisted living, or to move in with them.
trust heirs with account details or ensure they These choices directly impact the sense of
Please send your feedback to
can easily access them after one’s passing. independence of the elderly. They are most
The third step in accessibility is to liquidate reluctant to leave the house they have lived
career
How to CAPITAL TIPS AT

build career THE START OF
YOUR CAREER
capital 1 VOLUNTEER FOR
PROJECTS
If have recently started work-
ing, use these action steps
to start building your career
capital. Search and volunteer for
projects where you can stretch
your abilities and learn differ-
ent aspects of the business. This
requires you to push yourself
beyond your current training
and workload as a junior.
GETTYIMAGES
FIND A MENTOR
2 Identify one or more
people in your organisation or
industry who can offer guidance
Invest in yourself by developing skills, relationships and reputation to future-proof and support. A good mentor can
drastically speed up your learn-
your income and ensure lifelong career growth, says Devashish Chakravarty ing and growth with valuable
U
insights and help you avoid pit-
nderstand career capital, and comfort zone. Learning is unsuccessful apply for higher positions. Alternatively, falls. Be a person worth mentor-
you can build and control your unless you accept continuous feedback and seek roles and responsibilities within the ing through your commitment,
career for continuous growth are patient enough to continue with past same organisation in verticals you see bet- initiative and eagerness.
and lifelong primary income. failures. Working in different teams is an op- ter growth potential or fit with your own
Consider your knowledge of per- portunity to develop critical interpersonal goals. Also take on freelance work for more MEET PEOPLE
sonal finance, where your financial capital and leaderships skills that help you build income. Next, use professional relationship 3 Don’t wait for people
is anything that generates value or money relationships, which is the second pillar. capital to get introductions and recommen- to come to you or involve you
for you, be it gold, shares, bonds or rental dations to decision-makers and opportuni- in their activities. Reach out
property. Now, apply this concept to your Harness people power ties. Leverage your network to find partners actively to colleagues, attend
career. Career capital is what you build and No meaningful or valuable work is done for new projects or seek advice or support industry events, and join profes-
own, which compounds over time and gives alone. At the very least, you need a customer. for challenges. Finally, utilise your reputa- sional organisations to meet
you increasing dividends in terms of pay, au- Thus, your next investment in career capital tion to take on leadership roles internally or people. Invest in building rela-
tonomy, status, responsibility and growth. is building and maintaining relationships. in the industry, while you write, publish or tionships with diverse people
Start with people in your organisation who speak and establish yourself as an expert. internally and externally.
Why, how & whom? are critical contributors to results in your
Creating career capital means your ability role. This includes your immediate team Maintain career capital
CHASE TRANSFER-
to invest in yourself to ensure long-term
employability. Start with asking yourself
members, manager, internal customer and
other departments that interact with your
As a prudent investor, you nurture and grow
your financial capital. Similarly, make
4 ABLE CAPITAL
three key questions: why, how and whom? work. Approach professional relationships sure that your hard-earned career capital Skills and knowledge are either
‘Why’ is about discovering and articulating by asking, ‘what can I contribute or give?’ compounds over time and does not fade specialised in nature or transfer-
your identity, current motivation, career Then expand your circle by including peo- away from neglect. Commit to continuous able. In initial stages of your ca-
choices, and the energy and dedication ple you can learn from and those you can learning to stay relevant and updated on reer, pursue transferable skills,
you will bring to building career capital. teach. Next are industry professionals with market changes, and the skills required to wherever possible, like manage-
Without this internal motivation, the career whom you connect online or through offline keep pace. This could include digitisation or ment and communication. A
capital approach will fail for you. ‘How’ is events. Finally, your network is only as valu- integration of AI. Be willing to adapt to new highly specialised skill set might
about building skills and knowledge that are able as the third pillar, your reputation. opportunities and pivot into new roles, es- narrow down your mid-career
valuable in the market and can be converted pecially in industries where both customer options or make you redundant
into income. ‘Whom’ is about people and net- Build credentials needs and execution are changing rapidly. if the situation changes.
works relevant to your career, and how they Your reputation is your platinum calling Review your career capital annually and
DOCUMENT HIGHS
perceive and interact with you. From these,
you can formulate the three pillars of career
card, which gets you past locked doors and
offers valuable opportunities. This is about
measure your progress, set new goals and
plans for the next year. 5 & LOWS
capital—skills, relationships and reputation how others perceive your integrity, compe- Keep a record of your accom-
—which also reinforce each other. tence and professionalism. The way to ac- Phases of career plishments and feedback from
quire strong credentials is to build a reputa- The earlier you build on capital, the longer supervisers in a diary or on
Learn the skills game tion for high quality and reliable outcomes. you can compound it and reap dividends. e-mail. This valuable habit lets
The master craftsman continuously asks: Your consistent work over months and years In the first decade of your career, focus on you reflect on and review your
what can I offer? How can I deliver some- makes you dependable and gets you recom- generating career capital—acquiring skills, progress regularly, while main-
thing really valuable? Acquiring skills and mended for new opportunities. Protect your forging a professional network and building taining a record for discussion
knowledge you need is about abilities and reputation by maintaining professional and a strong reputation. This will unlock op- during appraisals, promotions
expertise that let you deliver outstanding ethical behaviour in personal, e-mail and portunities in mid-career, where your focus and new opportunities.
value for the paying customer or employer. social media interactions. Share and com- balances building additional career capital
The right strategy is to commit to lifelong municate your credentials through articles, and leveraging existing capital to seek lead-
learning and always stay on top of a continu- presentations and event participation. With ership roles and expand your influence. In
ously changing market. Learn the skills growing career capital, reap the dividend. later career stages, while learning and rela-
you need either through training or from tionships are a part of your life, your focus
on-job experiences. You will need to stretch Use career capital should shift to cementing your legacy and THE WRITER IS FOUNDER & CEO,
SALARYNEXT.COM, A JOB LOSS
yourself to take courses alongside your job, You can use your expanded skills and ex- finding fulfillment by sharing knowledge,
ASSUR ANCE COMPANY.
or take on challenging projects outside your perience at every stage of your career to mentoring and advisory roles.
SMART STATS
The Economic Times Wealth
June 3-9, 2024
In This Section
MUTUAL FUNDS - P18
LOANS AND DEPOSITS - P20
ET WEALTH TOP 50 STOCKS

ALTERNATIVE INVESTMENTS- P21
Every week we put about 3,000 stocks through four key filters and rate them on a mix of factors. The end result
of this is the listing of the top 50 stocks based on the composite rating to help ease your fortune hunt.
RANK PRICE ` GROWTH%* VA LUAT I O N R AT I O S R AT I N G

Value
Current Previous Stock Net PEG Div No. of
Research
Rank Rank Price Revenue Profit PE PB (5-year) Yield (%) funds
Stock Rating
Can Fin Homes 1 1 720.65 20.8 28.5 12.9 2.2 0.9 0.8 48 
1 Fast growing stocks
Manappuram Finance 2 2 167.95 46.3 33.3 6.5 1.2 -2.0 2.1 13 
Top 5 stocks with the highest
Gujarat State Petronet 3 4 288.85 35.9 15.3 9.8 1.5 1.0 1.7 56 
revenue growth (%)
Bajaj Finance 4 3 6,616.45 24.0 33.9 28.6 5.4 1.6 0.5 117 
Coal India 5 6 482.15 10.2 2.9 8.0 3.6 0.8 5.3 110  Just Dial 120.9
Aavas Financiers 6 5 1,564.80 14.1 25.8 25.4 3.3 1.6 0.0 39  Zensar
Technologies 103.0
PI Industries 7 7 3,557.25 42.9 14.0 32.2 6.2 1.3 0.4 64 
Natco Pharma 97.9
Indraprastha Gas 8 8 456.65 21.0 -0.8 16.1 3.3 1.1 2.0 39 
Arman Financial 67.7
Nesco 9 9 855.35 24.8 24.2 16.9 2.7 1.4 0.7 7 
Services
Kotak Mahindra Bank 10 10 1,690.10 21.9 33.4 18.5 2.6 1.2 0.1 131 
Maruti Suzuki 60.7
The Great Eastern Shipping 11 11 1,029.95 1.5 -7.6 5.7 1.2 0.0 3.5 23  India
Indraprastha Medical Corp. 12 12 228.75 43.9 13.3 17.4 4.5 0.7 1.9 5 
Gulf Oil Lubricants India 13 17 940.95 32.4 9.5 15.1 3.6 1.8 3.8 8 
2 Least expensive stocks
Dr. Reddy's Laboratories 14 13 5,873.75 23.6 13.5 17.6 3.5 0.9 0.7 52  Top 5 stocks with the lowest
Narayana Hrudayalaya 15 15 1,167.50 30.2 11.0 30.0 8.2 0.6 0.3 25  price-earnings ratio
The Great
Infosys 16 14 1,427.45 9.8 4.7 22.6 6.8 2.0 3.2 206 
Eastern Ship. 5.66
Akzo Nobel India 17 16 2,542.95 27.3 4.2 27.2 8.8 2.3 2.9 13  Manappuram 6.53
Finance
Sun TV Network 18 20 670.25 12.0 13.3 13.7 2.5 2.5 2.5 17 
Repco Home 7.05
Zensar Technologies 19 18 625.05 103.0 1.1 21.5 4.0 2.7 1.4 28  Finance
Avanti Feeds 20 24 506.05 28.2 5.5 19.1 2.9 4.2 1.3 11  Coal India 7.97
Persistent Systems 21 19 3,517.05 17.9 17.6 49.8 11.0 1.2 0.7 87  Gujarat State 9.82
Petronet
Jamna Auto Industries 22 22 120.85 21.9 4.4 23.7 5.4 3.5 2.0 10 
Best PEGs
Godfrey Phillips India 23 26 3,845.90 36.9 22.8 24.5 5.0 1.1 1.1 7
3

Repco Home Finance 24 27 469.75 34.1 17.3 7.0 1.0 -0.7 0.6 10 
Top 5 stocks with the least
Muthoot Finance 25 25 1,674.00 14.4 25.2 16.3 2.8 1.3 1.3 52  price earnings to growth ratio
Arman Financial Bajaj Holdings &
Petronet LNG 26 31 293.85 9.1 -12.0 12.2 2.6 1.3 3.4 24 
Investment
Arman Financial Services 27 23 2,016.00 67.7 51.3 12.1 2.6 0.5 0.0 9 
0.04
Bajaj Holdings & Investment 28 30 7,986.25 49.8 360.8 12.2 1.6 0.6 1.6 9 
0.53 0.57 0.64 0.66
Nestle India 29 28 2,404.80 2.8 10.3 72.6 69.5 0.7 1.3 61 
Cholamandalam Investment 30 29 1,212.85 26.7 47.6 29.9 5.2 1.8 0.2 119 
The Great Narayana JK Lakshmi
Just Dial 31 34 933.90 120.9 23.5 21.9 2.0 4.1 0.0 6  Eastern Hrudayalaya Cement
Shipping co.
Income generators
Maruti Suzuki India 32 33 12,598.00 60.7 19.9 29.4 4.6 3.9 1.0 175 
Abbott India 33 37 25,991.00 26.5 9.4 46.1 15.0 2.7 1.6 49  4
Amara Raja Energy & Mobility 34 21 1,190.05 23.2 8.4 23.5 3.2 2.2 0.8 16  Top 5 stocks with the highest
dividend yield (%)
Natco Pharma 35 41 1,020.30 97.9 47.7 13.2 3.1 1.6 0.9 9 
Coal India 5.27
Praj Industries 36 44 500.95 33.5 2.9 33.2 7.8 1.1 0.9 22 
Castrol India 3.98
Cera Sanitaryware 37 40 7,042.20 14.1 4.1 38.5 6.8 2.7 0.8 14 
Gulf Oil Lubricants
3.81
Cipla 38 39 1,466.60 47.0 13.3 28.7 4.4 1.8 0.9 104  India
The Great Eastern
Transport Corporation Of India 39 47 857.75 8.1 5.4 19.2 3.4 1.0 0.8 9  3.50
Shipping Company
Tata Consultancy Services 40 46 3,736.10 9.5 6.8 29.4 15.0 3.6 2.0 161  Petronet LNG 3.38
Most widely held

Asian Paints 41 43 2,883.70 33.0 2.9 50.9 14.8 3.3 1.1 35 
Hawkins Cookers 42 48 7,215.00 5.5 -2.2 39.0 12.8 3.3 1.4 5  5 Top 5 stocks held by most
Avenue Supermarts 43 49 4,444.95 5.0 18.4 113.6 15.4 5.2 0.0 93 
number of mutual funds
JK Lakshmi Cement 44 -- 784.85 28.3 4.1 19.7 2.9 0.7 0.8 22 
Maruti Suzuki India Kotak
Mahindra Bank
Eicher Motors 45 45 4,742.95 37.2 14.5 32.5 7.2 3.6 1.1 67 
Castrol India 46 50 187.75 11.2 5.7 21.2 8.2 5.0 4.0 14 
206 175 161 131 119
LG Balakrishnan & Bros 47 55 1,227.80 7.7 6.5 14.5 2.9 0.7 1.4 8 
City Union Bank 48 35 142.55 8.3 11.8 10.4 1.3 2.0 1.1 27 
Infosys Tata Consultancy Cholamandalam
Marksans Pharma 49 53 146.55 33.8 17.9 22.0 3.6 0.7 0.3 5 
Services Investment
Shriram Finance 50 51 2,302.70 12.5 21.4 11.8 1.8 -1.6 1.9 106  SEE NUMBER OF MUTUAL FUNDS HOLDING THE
STOCKS IN THE ADJACENT TABLE.
*REVENUE AND EPS FIGURES BASED ON ONE-YEAR GROWTH. DATA AS ON 30 MAY 2024. SOURCE: VALUE RESEARCH
smart stats
LAGGARDS & LEADERS
ETW FUNDS 100

Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).
LAGGARDS LEADERS
BEST FUNDS TO BUILD YOUR PORTFOLIO Equity: Large cap 5-year returns
12.47 22.74
ET Wealth collaborates with Value Research to identify the top-performing PGIM India Large Cap Fund BHARAT 22 ETF
funds across categories. Equity funds and equity-oriented hybrid funds are 13.25 22.67
Groww Large Cap Fund ICICI Prudential BHARAT 22 FOF
ranked on 3-year returns while debt-oriented hybrid and income funds are
13.34 21.72
ranked on 1-year returns. Axis Bluechip Fund Quant Focused Fund
RETURNS (%)
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) 13.73 20.70
Franklin India Bluechip Fund UTI Nifty Next 50 ETF
EQUITY: LARGE CAP
13.75 20.63
Nippon India Large Cap Fund  26137.65 6.42 21.08 37.74 23.47 17.43 1.61 23.47% LIC MF S&P BSE Sensex Index ABSL Nifty Next 50 ETF
ICICI Prudential Bluechip Fund  54904.23 4.91 19.43 37.42 20.29 17.96 1.49 THE 3-YEAR
Quant Focused Fund  924.73 4.38 25.63 51.11 20.00 21.72 2.22 RETURN
OF NIPPON
HDFC Top 100 Fund
DSP Nifty 50 Equal Weight Index Fund - Regular Plan


33170.08
1345.87
4.47
4.11
17.24
17.17
33.8
34.19
19.80
18.99
15.5
17.63
1.62
1
INDIA Equity: Flexi cap 5-year returns
LARGE CAP
Baroda BNP Paribas Large Cap Fund  1930.52 7.13 23.6 38.37 18.60 17.68 2.07 FUND IS
874.24 THE
11.35 31.16
Edelweiss Large Cap Fund - Regular Plan  5.57 17.38 30.96 17.18 16.28 2.24
HIGHEST ABSL Bal Bhavishya Yojna Quant Flexi Cap Fund
Kotak Bluechip Fund - Regular Plan  8027.99 6.5 17.79 29.95 16.08 16.59 1.76
IN ITS 11.56 24.66
SBI Bluechip Fund  45410.51 6.96 13.92 23.51 15.37 15.35 1.53 CATEGORY.
Canara Robeco Bluechip Equity Fund - Regular Plan  12830.12 5.45 17.34 27.87 14.94 17.06 1.69 ABSL Retirement 30s Plan JM Flexicap Fund
11.76 23.60
EQUITY: LARGE & MIDCAP
Axis Focused Fund Parag Parikh Flexi Cap Fund
ICICI Prudential Large & Mid Cap Fund  13117.39 7.88 22.59 44.23 25.98 21.56 1.72
Motilal Oswal Large and Midcap Fund - Regular Plan  4036.22 8.49 22.62 48.76 25.20 — 1.86
13.73 22.04
HDFC Large and Mid Cap Fund - Regular Plan  18691.62 7.17 20.59 46.93 25.01 21.67 1.7 Taurus Flexi Cap Fund ICICI Pru Retirement Fund
Kotak Equity Opportunities Fund - Regular Plan  21495.8 13.05 26.63 45.34 22.82 20.99 1.62 13.85 21.68
SBI Large & Midcap Fund  22689.5 6.37 17.24 32.63 19.94 19.52 1.65 Nippon India Retirement Fund 360 ONE Focused Equity Fund
EQUITY: FLEXI CAP

ICICI Prudential Retirement Fund - Pure Equity Plan
JM Flexicap Fund


729.8
2107.42
9.88
11.6
29.07
31.61
57.35
62.8
29.82
29.39
22.04
24.66
2.27
1.97 29.82% Equity: Mid cap 3-year returns
HDFC Focused 30 Fund  11246.61 7.69 21.64 41.42 27.33 19.62 1.71 THE 3-YEAR 17.16 35.39
Bank of India Flexi Cap Fund - Regular Plan  879.32 12.53 31.18 64.33 26.56 — 2.25 RETURN OF
DSP Midcap Fund Motilal Oswal Midcap Fund
ICICI PRU
HDFC Flexi Cap Fund  52874.12 7.07 22.27 42.3 24.97 19.59 1.5
RETIRE- 17.96 32.50
HDFC Retirement Savings Fund Equity Plan  5044.1 5.86 18.22 35.86 22.76 21.61 1.81 MENT FUND PGIM India Midcap Oppo Fund Quant Mid Cap Fund
ICICI Prudential Focused Equity Fund  7872.07 8.67 24.4 44.37 22.59 20.62 1.77 IS THE
Franklin India Flexi Cap Fund  15267.1 5.77 19.92 42.22 21.43 19.7 1.73
HIGHEST 20.42 29.22
IN ITS Axis Midcap Fund Nippon India Growth Fund
360 ONE Focused Equity Fund - Regular Plan  7009.01 8.52 19.5 37.25 20.80 21.68 1.8 CATEGORY.
Parag Parikh Flexi Cap Fund - Regular Plan  63933.76 4.61 16.64 33.4 20.41 23.6 1.37 20.62 28.88
Franklin India Focused Equity Fund  11511.53 6.76 19.69 36.51 19.58 18.14 1.77 UTI Mid Cap Fund HDFC Mid-Cap Opportunities Fund
Union Flexi Cap Fund  2051.3 4.38 14.85 34.12 18.19 18.57 2.05 21.39 27.35
EQUITY: MID CAP LIC MF Midcap Fund Motilal Oswal Nifty Midcap 100 ETF
Motilal Oswal Midcap Fund - Regular Plan  9819.09 10.02 26.18 52.27 35.39 27.47 1.72 35.39%
Quant Mid Cap Fund  6920.17 13.18 34.63 73.96 32.50 33.1 1.77 THE 3-YEAR
Nippon India Growth Fund  26821.89 11.42 22.54 56.5 29.22 26.01 1.63 RETURN OF
MOTILAL
Equity: Small cap 3-year returns
HDFC Mid-Cap Opportunities Fund  63413.49 8.02 22.71 55.69 28.88 25.31 1.44
OSWAL
Edelweiss Mid Cap Fund - Regular Plan  5534.33 10.18 24.89 52.71 25.91 25.79 1.8
MIDCAP 18.25 33.69
Kotak Emerging Equity Fund - Regular Plan  42699.18 14.53 23.63 47.54 24.25 24.7 1.47 FUND IS THE ABSL Small Cap Fund Quant Small Cap Fund
HIGHEST
SBI Magnum Midcap Fund  17910.24 7.81 16.1 37.15 23.73 24.07 1.69
IN ITS
18.45 32.66
EQUITY: SMALL CAP CATEGORY. ABSL Nifty Smallcap 50 Nippon India Small Cap Fund
Nippon India Small Cap Fund  50422.78 10.18 20.77 55.37 32.66 30.73 1.47 21.15 30.05
Tata Small Cap Fund - Regular Plan  6951.59 8.2 17.31 41.12 27.01 27.38 1.74 UTI Small Cap Fund Franklin India Smaller Companies
ICICI Prudential Smallcap Fund  7658.95 7.38 16.27 42.69 25.85 25.55 1.77 21.36 29.79
Edelweiss Small Cap Fund - Regular Plan  3361.4 6.58 14.81 44.42 25.46 27.81 1.88
ITI Small Cap Fund HSBC Small Cap Fund
Axis Small Cap Fund - Regular Plan  20136.63 4.3 12.36 36.01 23.36 26.06 1.63
21.81 27.61
EQUITY: VALUE ORIENTED Kotak Small Cap Fund Bandhan Small Cap Fund
JM Value Fund  665.51 9.37 27.78 64.28 29.10 24.01 2.35
SBI Contra Fund  29585.65 6.5 21.51 46.09 28.19 26.13 1.58 29.10%
Templeton India Value Fund  1922.69 6.35 22.7 43.13 25.93 21.5 2.08 THE 3-YEAR Hybrid: Aggressive 5-year returns
ICICI Prudential Value Discovery Fund  42664.32 3.86 18.79 40.17 24.41 22.59 1.58 RETURN OF
Bandhan Sterling Value Fund - Regular Plan  8943.61 5.22 20.23 39.1 23.96 21.45 1.76
JM VALUE 10.32 24.09
FUND IS
THE HIGH-
ABSL Retirement Fund: 40s Plan Quant Absolute Fund
EQUITY: ELSS
Quant ELSS Tax Saver Fund  9360.89 8.82 30.14 58.31 26.75 31.8 1.76
EST IN ITS 10.59 22.04
CATEGORY.
SBI Long Term Equity Fund - Regular Plan  23411.67 7.91 28.71 56.62 26.71 22.11 1.62
PGIM India Hybrid Equity Fund BOI Mid & Small Cap Equity & Debt Fund
Bank of India ELSS Tax Saver Fund - Regular Plan  1297.72 10.03 28.66 55.03 23.86 25.66 2.11 11.32 20.47
Kotak ELSS Tax Saver - Regular Plan  5608.21 10.64 24.24 39.64 20.94 19.25 1.77 Axis Children’s Gift ICICI Prudential Equity & Debt Fund
DSP ELSS Tax Saver Fund  14859.56 8.06 22.62 42.78 20.07 20 1.66 11.50 19.80
Parag Parikh ELSS Tax Saver Fund - Regular Plan  3360.61 2.34 13.36 28.87 19.97 — 1.71 Navi Aggressive Hybrid Fund JM Aggressive Hybrid Fund
Bandhan ELSS Tax Saver Fund - Regular Plan  6432.29 3.73 15.56 32.77 19.49 19.65 1.75
11.66 17.16
Union ELSS Tax Saver Fund  875.87 4.67 14.5 32.35 18.98 18.93 2.29
LIC MF Aggressive Hybrid Fund ICICI Prudential Retirement Fund
ANNUALISED RETURNS IN % AS ON 29 MAY 2024.
smart stats
ETW FUNDS 100 RETURNS (%)

Value Research Net Assets Expense
1 Top 5 SIPs
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio
HYBRID: EQUITY SAVINGS

HSBC Equity Savings Fund  274.96 5.68 12.35 21.75 12.26 10.77 1.51 12.26% Top 5 equity schemes based
Kotak Equity Savings Fund - Regular Plan  5132.18 3.54 9.96 18.68 11.92 10.85 1.86 THE 3-YEAR on 10-year SIP returns
HDFC Equity Savings Fund  4180.3 2.59 9.31 17.32 10.82 10.31 1.94 RETURN OF
HSBC EQUITY Quant Small Cap Fund
UTI Equity Savings Fund - Regular Plan  357.05 2.77 8.13 16.48 10.82 10.45 1.54
SAVINGS FUND
 27.52
SBI Equity Savings Fund - Regular Plan 4751.72 2.67 7.01 18.49 10.14 10.58 1.19 IS THE HIGH-
ICICI Prudential Equity Savings Fund  10118.19 1.39 4.24 10.38 8.07 7.91 0.97 EST IN ITS Quant ELSS Tax Saver Fund
CATEGORY.
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) 25.99
ICICI Prudential Equity & Debt Fund  34733.09 5.05 18.48 37.56 23.63 20.47 1.62 Nippon India Small Cap Fund
JM Aggressive Hybrid Fund  262.45 8.42 25.76 54.49 23.26 19.8 2.35 25.71
Bank of India Mid & Small Cap Equity & Debt Fund  724.24 7.03 17.13 48.73 22.79 22.04 2.39
Quant Mid Cap Fund
Quant Absolute Fund  2024.53 5.02 24.26 37.31 20.19 24.09 2.03
Edelweiss Aggressive Hybrid Fund - Regular Plan  1564.25 5.27 16.41 31.9 18.47 16.95 2.03
24.99
HDFC Children's Gift Fund  8864.86 5.54 14.59 26.67 17.62 17.12 1.77 Quant Flexi Cap Fund
UTI Aggressive Hybrid Fund - Regular Plan  5487.53 5.47 14.91 30.5 17.35 15.97 1.94 24.55
Mahindra Manulife Aggressive Hybrid Fund - Regular Plan  1138.39 6.18 17.03 31.19 17.13 — 2.12
Kotak Equity Hybrid Fund - Regular Plan  5411.89 7.76 16.21 28.26 15.78 16.7 1.82 SIP: SYSTEMATIC % ANNUALISED RETURNS
INVESTMENT PLAN AS ON 29 MAY 2024
HDFC Retirement Savings Fund - Hybrid Equity Plan  1394.48 3.73 12.88 25.9 15.70 15.6 2.11
HYBRID: CONSERVATIVE (DEBT-ORIENTED)

SBI Magnum Children's Benefit Fund - Savings Plan
Kotak Debt Hybrid Fund - Regular Plan


109.84
2414.67
2.66
2.87
8.37
8.99
17.85
15.85
12.20
10.29
11.5
11.36
1.21
1.71 17.85%
THE 1-YEAR
2 Top 5 MIPs
Top 5 conservative hybrid schemes
HDFC Hybrid Debt Fund  3140.27 2.83 8.81 15.68 10.69 10.32 1.78
RETURN OF
SBI Conservative Hybrid Fund  9789.02 3.19 7.76 13.84 10.23 10.62 1.11
SBI MAGNUM
based on 3-year SWP returns
ICICI Prudential Regular Savings Fund  3402.04 2.87 7.07 13.76 9.29 9.51 1.71 CHILDREN’S
Canara Robeco Conservative Hybrid Fund - Regular Plan  983.88 2.29 6.02 10.76 7.24 9.02 1.83 BENEFIT Bank of India Conservative Hybrid Fund
FUND IS THE 14.16
HYBRID: DYNAMIC ASSET ALLOCATION HIGHEST
HDFC Balanced Advantage Fund  83548.61 6.75 19.98 40.99 23.74 18.54 1.38 IN ITS SBI Magnum Children’s Benefit Fund
CATEGORY.
Edelweiss Balanced Advantage Fund - Regular Plan  11135.73 4.72 14.55 24.26 13.08 14.54 1.68 11.51
ICICI Prudential Balanced Advantage Fund  56709.02 3.16 10.39 20.30 12.74 12.72 1.48
SBI Retirement Benefit Fund
Tata Balanced Advantage Fund - Regular Plan  9107.02 3.21 11.95 20.50 12.54 12.81 1.69
10.84
DEBT: FLOATER
Parag Parikh Conservative Hybrid Fund
SBI Floating Rate Debt Fund - Regular Plan  1153.49 2.22 4.05 8.15 5.94 — 0.46
Franklin India Floating Rate Fund  271.22 2.11 3.88 7.73 5.55 5.72 0.96
10.79
Aditya Birla Sun Life Floating Rate Fund - Regular Plan  12768.68 2 3.9 7.53 5.9 6.52 0.46 HDFC Hybrid Debt Fund
10.25
DEBT: BANKING AND PSU
ICICI Prudential Banking & PSU Debt Fund  9056.41 1.81 3.78 7.24 5.82 6.82 0.74 SWP: SYSTEMATIC % ANNUALISED RETURNS
ITI Banking and PSU Fund - Regular Plan  30.05 1.57 3.98 6.83 5.35 — 0.7 7.24% WITHDRAWAL PLAN AS ON 29 MAY 2024
HDFC Banking and PSU Debt Fund - Regular Plan  6205.47 1.75 3.9 6.81 5.25 6.66 0.79 THE 1-YEAR
Kotak Banking and PSU Debt Fund - Regular Plan  5951.91 1.7 3.83 6.72 5.45 6.82 0.76 RETURN OF
Mid & Small Cap :
3
Aditya Birla Sun Life Banking & PSU Debt Fund  10059.46 1.69 3.8 6.69 5.31 6.75 0.72 ICICI PRU
BANKING &
Exposure of multi-cap funds
Bandhan Banking & PSU Debt Fund - Regular Plan  14207.57 1.71 3.65 6.38 5.12 6.71 0.63
PSU DEBT
DEBT: SHORT TERM FUND IS THE
HIGHEST IN
ICICI Prudential Short Term Fund  18091.83 1.84 3.81 7.22 5.84 7.02 1.07 ITS CATEGORY.
HDFC Short Term Debt Fund  12947.96 1.88 4.11 7.19 5.49 6.92 0.69 63.00
57.78
UTI Short Duration Fund - Regular Plan  2680.4 1.68 4 6.95 7.02 5.07 0.84 53.78 53.68 52.45
Aditya Birla Sun Life Short Term Fund - Regular Plan  7274.29 1.74 3.88 6.74 5.51 6.76 1.07
Axis Short Term Fund  7944.42 1.78 3.94 6.61 5.27 6.56 0.9
Sundaram Short Duration Fund  187.1 1.69 3.78 6.44 7.45 5.09 0.85
DEBT: CORPORATE BOND

ICICI Prudential Corporate Bond Fund  27350.22 1.92 3.88 7.45 5.95 7.07 0.55
Aditya Birla Sun Life Corporate Bond Fund  21330.37 1.83 4.15 7.34 5.71 7.17 0.51 Expense as on 30 April 2024 LIC MF DSP SBI Multi- HSBC Mirae
HDFC Corporate Bond Fund  28968.1 1.94 4.16 7.27 5.51 7.02 0.6 Returns as on 29 May 2024 Multi Cap Multicap cap Fund Multi Asset
Kotak Corporate Bond Fund - Standard Plan  12144.9 1.83 4 6.97 5.43 6.5 0.67 Assets as on 30 April 2024 Fund Fund Cap Fund Multicap
Nippon India Corporate Bond Fund  2892.76 1.78 4.1 6.97 5.86 6.59 0.7 Rating as on 30 April 2024 Fund
Axis Corporate Debt Fund - Regular Plan  5336.26 1.73 3.9 6.70 5.27 6.1 0.95
% OF ASSETS AS ON 30 APRIL 2024
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns.
Did not find your fund here?
4
Log on to www.wealth.economictimes.com for an exhaustive list.
Debt: Ultra-short duration
Methodology Debt funds with less than Categories FUND
The Top 100 includes only
those funds that have a
18-months performance
history and equity
and hybrid funds with
Equity: Large-cap: Funds investing at
least 80% in large cap stocks.
Hybrid: Conservative: Funds investing
10-25% in equity, and the rest in debt. RAISER
5- or 4-star rating from Equity: Large & MidCap: Funds invest- Hybrid: Equity Savings: Funds investing 0.62
0.56 0.57
149.3
less than three-years ing at least 35% each in large and at least 65% in equity and equity related
Value Research. The rating mid caps. instruments, and at least 10% in debt. 0.52
performance track record
of a fund vis-à-vis other
are not rated. This ensures Equity: Flexi Cap: Funds investing at Hybrid: Dynamic Asset Allocation:
funds in its category is
that all the funds have least 65% in equity with no particular Funds which dynamically manage
determined by subtracting cap on large, mid or small. the asset allocation between equity
existed long enough to be
a fund’s risk score from its and debt. 0.15
tracked for consistency Equity: Mid Cap: Funds investing at
return score. The resulting least 65% in mid caps. Debt: Short Duration: Funds with 1-year up capture ratio* of Quant
of performance. Given
number is assigned stars Macaulay duration between 1 and 3 Large Cap Fund, the highest
the focus on long-term Equity: Small Cap: Funds investing at
according to the following years at the portfolio level.
distribution:
investing, we have least 65% in small caps. among all equity diversified Kotak All 360 ONE Axis All Axis ABSL Ac-
considered only the Debt: Corporate Bond: Funds investing Weather Dynamic Seasons Dynamic tive Debt
(Not Equity: Value Oriented: Funds fol-
at least 72% in AA+ and above-rated
funds. The average ratio for 179
covered ‘growth’ plan of funds as lowing value/contrarian investment such funds was 96.1. Debt FOF Bond Debt Bond Multi-
in ETW corporate bonds.
Top 10% it reinvests interim gains strategy and grouped under ‘Value’ or Fund FoF Fund Manager
Funds 100 unlike ‘IDCW’ plan which ‘Contra’ categories as per SEBI. Debt: Banking and PSU: Funds invest- FoF
Next 22.5% listing) ing at least 72% in the debt instruments
offers periodic payouts to ELSS: Equity: with a lock-in of three BASED ON 29 MAY 2023 AND 29 MAY 2024
Middle 35% years and tax benefit under Section 80C.
of banks, PSUs, public financial institu-
DATA. SOURCE: ACE MF.
% AS ON 30 APRIL 2024
investors, thereby reducing tions and municipal bonds.
Next 22.5% NAV. The fund categories *How well a fund has performed relative to its % EXPENSE RATIO IS CHARGED ANNUALLY.
Hybrid: Aggressive: Funds investing
Bottom 10% Debt: Floater: Funds investing at least benchmark during periods when the index has
are: 65-80% in equity, and the rest in debt. METHODOLOGY OF TOP 100 FUNDS ON
58.5% in floating-rate instruments.
risen. The higher the ratio, the better it is. WWW.WEALTH.ECONOMICTIMES.COM
loans and deposits

LOANS & DEPOSITS

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

Interest rate (%) What `10,000
HOME LOAN RATES
TENURE: 1 YEAR compounded qtrly will grow to With effect from October 2019, all banks have made the transition to
Bandhan Bank 7.85 10,808 external benchmarks for pricing new home loans. Most banks have
IndusInd Bank 7.75 10,798 picked the RBI repo rate as the external benchmark.
RBL Bank 7.50 10,771
YES Bank 7.25 10,745 REPO RATE: 6.50%
DCB Bank 7.10 10,729 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
RBL Bank 8.00 11,717 City Union Bank 9.60 8.25 9.50 8.25 9.50 2 Apr 2024
IDFC First Bank 7.75 11,659 IndusInd Bank -- 8.35 9.45 8.35 9.45 Not Given
IndusInd Bank 7.75 11,659 UCO Bank 9.30 8.35 10.00 8.35 10.00 15 Mar 2023
DCB Bank 7.50 11,602
Union Bank of India 9.25 8.35 10.75 8.35 10.75 11 Apr 2024
Bank of India 7.25 11,545
Indian Bank 9.20 8.40 9.80 8.85 10.35 3 Apr 2024
TENURE: 3 YEARS
Punjab National Bank 9.25 8.40 10.10 8.90 10.60 9 Feb 2023
DCB Bank 7.55 12,516
Indian Overseas Bank 9.35 8.40 10.50 8.50 10.60 13 Oct 2023
RBL Bank 7.50 12,497
Bank of Baroda 9.15 8.40 10.60 8.40 10.60 Not Given
Bandhan Bank 7.25 12,405
Bank of Baroda 7.25 12,405 Bank of India 9.35 8.40 10.70 8.40 10.85 1 May 2024
IDFC First Bank 7.25 12,405 IDBI Bank 9.10 8.45 10.75 8.55 12.25 12 Feb 2023
TENURE: 5 YEARS
Canara Bank 9.25 8.50 11.20 8.55 11.25 12 Apr 2024
DCB Bank 7.40 14,428 Punjab & Sind Bank 8.45 8.55 10.00 8.55 10.00 16 Feb 2024
Dhanlaxmi Bank 7.25 14,323 Karnataka Bank -- 8.60 10.62 8.60 10.62 1 Apr 2024
IndusInd Bank 7.25 14,323 Bank of Maharashtra 9.30 8.60 10.80 8.60 10.80 9 Feb 2024
YES Bank 7.25 14,323 Kotak Mahindra Bank -- 8.70 9.35 8.75 9.60 Not Given
RBL Bank 7.10 14,217 South Indian Bank 9.85 8.70 11.20 8.75 11.70 Not Given
HDFC Bank -- 8.75 9.95 8.75 9.95 Not Given
Top five senior citizen bank FDs Federal Bank -- 8.80 10.25 10.20 10.30 16 Feb 2024
Interest rate (%) What `10,000 Karur Vysya Bank 10.00 9.00 11.05 9.00 11.05 12 Feb 2024
TENURE: 1 YEAR compounded qtrly will grow to
J & K Bank 9.10 9.10 9.45 9.10 9.45 10 Apr 2024
Bandhan Bank 8.35 10,862
IndusInd Bank 8.25 10,851
SBI Term Loan 9.15 9.15 9.65 9.15 9.65 1 Feb 2024
RBL Bank 8.00 10,824 Bandhan Bank -- 9.16 13.33 9.16 13.33 Not Given
YES Bank 7.75 10,798 ICICI Bank -- 9.25 9.90 9.40 10.05 Not Given
DCB Bank 7.60 10,782
TENURE: 2 YEARS
RBL 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
@ 7% 1,980 1,161 899 775 707
DCB Bank 8.00 11,717
Bandhan Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.05 12,701
@ 9% 2,076 1,267 1,014 900 839
RBL Bank 8.00 12,682
@ 10% 2,125 1,322 1,075 965 909
YES Bank 8.00 12,682
IDFC First Bank 7.75 12,589 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
TENURE: 5 YEARS
YES Bank 8.00 14,859
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 7.90 14,787 Sukanya Samriddhi Yojana 8.25 250 `1.5 lakh p.a. One account per girl child 80C
Axis Bank 7.75 14,678
Dhanlaxmi Bank 7.75 14,678 Senior Citizens' Savings Scheme 8.20 1,000 `30 lakh 5-year tenure, minimum age 60 yrs 80C
Public Provident Fund 7.10 500 `1.5 lakh p.a. 15-year tenure, tax-free returns 80C
Kisan Vikas Patra 7.50 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.70 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 6.9-7.50 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.40 14,428
Dhanlaxmi Bank 7.25 14,323 Single `9 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
IndusInd Bank 7.25 14,323 7.40 1,000
Scheme
Joint `15 lakh 5-year tenure, monthly returns Nil
YES Bank 7.25 14,323
RBL Bank 7.10 14,217 Recurring deposits 6.70 100 No limit 5-year tenure Nil
Savings account 4.00 500 No limit `10,000 interest tax-free Nil

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 30 May 2024 #Benefit available only for 5-year deposit
market watch
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)
60,160 71,826 70,861 92,673 1,024.31 1,035.80 69.46 78.92
30 MAY 2023 30 MAY 2024 30 MAY 2023 30 MAY 2024 30 MAY 2023 30 MAY 2024 30 MAY 2023 30 MAY 2024
PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER
CHANGE
X 1 WEEK -0.98% 1 WEEK 2.91% 1 WEEK 1.65% 1 WEEK 2.27%
X 1 YEAR 19.39% 1 YEAR 30.78% 1 YEAR 1.12% 1 YEAR 13.62%
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 CHANGE (%) (` CR)
Franklin Industries 7.94 11.05 139.88 6.94 28.89 114.81 Vardhman Polytex 9.13 -12.88 1.44 0.82 1,954.79 249.16
PMC Fincorp 4.55 59.65 60.78 30.14 191.75 243.02 Sawaca Business Mach. 1.49 -5.1 18.25 142.25 1,922.89 85.23
LCC Infotech 2.94 9.29 54.74 1.5 468.06 37.22 TV Vision 7.26 10 52.84 0.15 975.98 26.67
TV Vision 7.26 10 52.84 0.15 975.98 26.67 Scanpoint Geomatics 6.73 13.3 17.86 17.4 781.04 113.13
Baroda Extrusion 6.06 6.5 50 4.9 309.2 90.29 Diligent Media Corp. 4.29 -9.87 -2.72 0.48 676.24 50.49
CNI Research 7.29 5.81 43.5 2.15 -12.67 83.69 LCC Infotech 2.94 9.29 54.74 1.5 468.06 37.22
Leading Leasing Finance 3.4 -14.36 42.86 7.99 161.1 36.28 Orchasp 3.68 -5.88 -6.6 6.67 398.93 64.12
Rollatainers 4.51 9.73 41.82 11.31 121.07 112.8 Creative Eye 6.93 12.68 23.09 0.2 386.64 13.9
Shekhawati Poly-Yarn 3.76 9.62 41.35 2.83 55.18 129.61 RGF Capital Markets 0.69 7.81 7.81 5.31 355.82 10.35
IFL Enterprises 1.77 9.26 37.21 17.74 48.71 131.94 Baroda Extrusion 6.06 6.5 50 4.9 309.20 90.29
Top price losers Top volume losers

Jackson Investments 0.67 -6.94 -31.63 2.07 -70.87 19.48 Vivanza Biosciences 6.39 -8.45 -20.03 1.52 -87.46 25.56
Sylph Technologies 2.01 -12.23 -28.72 17.56 173.18 46.85 Dipna Pharmachem 8.62 0.7 -4.65 1.63 -85.92 21.5
Reliance Home Finance 3.25 -5.25 -26.97 4.81 -43.13 157.64 Empower India 2.23 0.9 -18.91 22.49 -85.50 259.53
Gemstone Investments 1.44 -8.28 -25.77 1.14 -84.49 10.76 Gemstone Investments 1.44 -8.28 -25.77 1.14 -84.49 10.76
White Organic Agro 7.1 -6.58 -24.87 1.6 121.26 24.85 Kenvi Jewels 5.78 -0.69 -2.86 1.72 -81.64 73.06
Vivanza Biosciences 6.39 -8.45 -20.03 1.52 -87.46 25.56 Risa International 0.68 3.03 3.03 1.23 -76.98 10.85
Empower India 2.23 0.9 -18.91 22.49 -85.5 259.53 Nila Spaces 8.14 -9.25 -8.64 1.99 -72.63 320.63
KBC Global 1.64 -5.2 -18.81 58.74 -10.51 157.8 Teamo Prodyction HQ 1.11 -2.63 -8.26 6.6 -71.39 95.59
Integra Essentia 3.72 1.92 -17.7 11.57 -0.29 340.05 Jackson Investments 0.67 -6.94 -31.63 2.07 -70.87 19.48
Standard Capital Market 1.55 -1.9 -17.55 41.94 -8.07 227.85 Sundaram Multi Paper 2.83 -3.74 -9.29 5.09 -68.37 134.11
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 30 MAY 2024. SOURCE: ETIG DATABASE AND BLOOMBERG.
mutual funds
HDFC SMALL CAP
Need for greater consistency

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 Services 19.32
FUND BENCHMARK CATEGORY AVERAGE

FACTS Capital goods 11.97
Financials 11.82
55.49 DATE OF LAUNCH
51.17
3 APRIL 2008 Healthcare 10.26
40.38
CATEGORY
EQUITY Automobiles 5.01
26.85 26.06 25.23 23.76 26.35
22.83
TYPE
SMALL CAP The fund’s biggest sector positions are in
services, capital goods and financials.
AUM*
`29,685 crore AS ON 30 APR 2024
1-YEAR 3-YEAR 5-YEAR
AS ON 28 MAY 2024 BENCHMARK
The fund has sharply lagged behind the S&P BSE 250 SMALLCAP
index and peers over the past year. TOTAL RETURN INDEX Top 5 stocks in portfolio (%)
Firstsource
4.19
WHAT IT
Solutions
Rolling returns (%) FUND BENCHMARK
Bank of Baroda 4.06
1-YEAR
24.57 COSTS Sonata Software 3.30
23.20 NAV**
eClerx Services 2.96
GROWTH OPTION
19.57 `124.11 Aster DM 2.44

Healthcare
3-YEAR IDCW
15.52 `44.23 The fund portfolio is highly diversified
MINIMUM INVESTMENT with modest positions in individual bets.
16.04
`100 AS ON 30 APR 2024
5-YEAR MINIMUM SIP AMOUNT

11.03 `100
EXPENSE RATIO # (%)
AS ON 28 MAY 2024
1.60 Recent portfolio changes
The fund’s long-term track record indicates EXIT LOAD
healthy outperformance over longer time frames. New entrants
1% for redemption
Blue Dart Express, CIE Automotive
within 365 days
India, Cyient, G R Infraprojects, Zensar
*AS ON 30 APR 2024
Technologies (March). Angel One (April).
**AS ON 28 MAY 2024
Complete exits
WHERE THE FUND INVESTS
#AS ON 30 APR 2024
EIH (March). Procter & Gamble Health (April).
Portfolio asset
Fund
allocation
style box How risky is it?
Growth Blend Value Fund Category Index
91.28% Standard Deviation 15.73 15.53 18.01

Large
Equity
CAPITALISATION
Large cap 5.39

Sharpe Ratio 1.52 1.38 1.26
8.71
Medium
Mid cap
Small cap 85.90
Mean Return 29.17 26.39 27.92
Cash 8.72 FUND BASED ON 3-YEAR PERFORMANCE.

Small
Debt 0.00
INVESTMENT STYLE
MANAGER The fund’s risk-return profile is superior
to its category average.
CHIRAG SETALVAD
The fund runs a modest presence in mid caps and 9 YEARS, 10 MONTHS AS ON 30 APR 2024
AS ON 30 APR 2024
large caps, apart from its small-cap bias.
Source: Value Research
Should This fund morphed into a small-cap

fund from its earlier avatar as a mid-
quality, it runs a highly diversified
portfolio with modest positions
lean patch of late, lagging behind the
index and its peers sharply. While
You and small-cap fund. It now takes a

sharper tilt in small caps relative to
even in top bets. Its long-term track
record is erratic, with alternating
it has generally delivered healthy
outcomes over longer time frames,
Buy many peers in the same category.
Leaning towards growth and
bouts of outperformance and
underperformance. It has hit another
the fund’s struggle for consistency
may not suit everyone.
pick of the week

Somany Ceramics: Strong performer

Value-added products, strong distribution network, tech investments, industry tailwinds to drive growth.
T
he decor solutions provider and tiles manufacturer The management has guided a 1-1.5% improvement in Fundamentals
reported constrained volume growth of 7.3% year-on- EBITDA margins in 2024-25, supported by a better product CONSENSUS
ACTUAL
year in the March 2024 quarter, amid softer domestic mix led by a higher share of GVT (glazed vitrified tiles), op- ESTIMATE
demand and lower exports. However, despite a chal- erating leverage benefits, and increased capacity utilisation. 2022-23 2023-24 2024-25 2025-26
lenging environment, the revenue and EBITDA surpassed The bath fittings segment is expected to grow in double digits, Revenue (` cr) 2,478.50 2,591.40 2,826.50 3,191.20
Reuters-Refinitiv estimates by 4% and 11.1%, respectively. and the focus on value-added products in the sanitaryware EBIDTA (` cr) 189.00 253.20 292.30 344.20
While gross margins contracted by 250 basis points during segment will bode well for the company. Net profit/loss (` cr) 73.80 96.88 134.30 174.40
the quarter due to discounts offered to counter muted demand, With no major capex plans (only maintenance capex in 2024-
EPS (`) 17.34 22.98 32.61 42.38
lower costs (employee, power & fuel, and other expenses) sup- 25) and the absence of significant debt repayment, analysts ex-
ported EBITDA margins, which pect cash generation to remain healthy,
Valuations PBV PE
DIVIDEND
YIELD (%)
Analysts’ views
jumped by 180 basis points y-o-y. potentially leading to an increase in the
The stock price has surged over 15% dividend payout in 2024-25. Somany Ceramics 5.59 45.41 0.29
since the declaration of the March The management has taken various Kajaria Ceramics 8.53 47.01 0.72
quarter results. strategic steps to maintain its competi- Cera Sanitaryware 7.81 38.34 0.71
The management expects de-
17 tive position. Modernisation of machin- Carysil 7.02 36.77 0.25
Buy
mand to remain subdued in the ery to boost production, investments in Pokarna 3.36 19.53 0.11
June 2024 quarter due to the impact cutting-edge printers that enable 3D de-
of the general elections. However,
revival is expected in the second
signing of tiles with different textures,
regular dealer additions and geographi-
Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
half of 2024-25, supported by a cal diversification of manufacturing
16 May 2024 ICICI Securities Buy 916
pickup in real estate projects, likely facilities are some of such initiatives.
16 May 2024 Antique Stock Broking Buy 850
rebound in exports, and the lag ef- The stock trades at a reasonable
fect of new construction projects. 12-month forward PE multiple of 20.9, a 16 May 2024 IDBI Capital Buy 765
With a wide distribution network and strong brand
The company offers a diverse 14.5% discount to the industry median, 15 May 2024 Systematix Buy 883
value, Somany is well-positioned to gain from the
range of products, including ceram- buoyant prospects of the sanitaryware industry. according to Reuters-Refinitiv data. 15 May 2024 Nirmal Bang Buy 835
ic and vitrified tiles, sanitaryware, Selection methodology: We pick the
and bath fittings. With a wide distribution network and strong stock that has shown the maximum increase in ‘consensus Relative performance SENSEX
117.3
brand value, it is well-positioned to benefit from the buoyant analyst rating’ during the past month. The consensus rating 100 MARKET PRICE: `716.05 113.6
growth prospects of the tile and sanitaryware industries. is arrived at by averaging all analyst recommendations after
A growing population, rising urbanisation, improving attributing weights to each of them (1 for strong buy, 2 for buy,
disposable incomes, and growth in the real estate, retail, 3 for hold, 4 for sell, 5 for strong sell). An improvement in
and hospitality sectors, along with an increasing desire for consensus analyst rating indicates that the analysts are get-
personalised ceramic goods, are driving the growth of the tile ting bullish on the stock. Only stocks with more than five
industry. Similarly, the growing preference for feature-rich analysts covering them are considered. You can see similar 94.8
bathrooms and the rising demand for interior decoration in consensus analyst rating changes during the past week in
30 MAY 2023 SOMANY CERAMICS ET DECOR 30 MAY 2024
residential and commercial spaces are propelling the growth ETW 50 table.
Somany Ceramics is compared with ET Decor and Sensex. Stock and index
of the sanitaryware and bath fittings industry. —Sameer Bhardwaj values normalised to a base of 100. Source: ETIG and Reuters-Refinitiv
WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
STOCK ADVICE COMMENT
HOUSE PRICE (`) PRICE (`) UPSIDE (%)
Maintain ‘buy’ as the recently announced capex, collaboration with Tsingshan, prudent capital allocation plan
Jindal Stainless ICICI Securities Buy 714 955 33.8 and focus on enhancing value-added products is likely to benefit the company in the medium term.
Retain ‘buy’ due to inline fourth quarter performance, strong position in the core markets of Andhra and
Electronics Mart India AnandRathi Buy 207 268 29.5 Telangana, continuous penetration in the NCR, higher cash-flow generation and healthy return ratios.
Life Insurance Reiterate ‘buy’ as the growth in the share of non-PAR segment is expected to improve VNB margins. It is well
Motilal Oswal Buy 1,016 1,270 25.0
Corporation positioned to maintain its industry leadership and grow in the highly profitable product segments.
Maintain ‘buy’ as new orders’ execution and focus on value-added products will help improve performance
Uniparts India JM Financial Buy 525 650 23.8 in the medium term. Also, high operating leverage, strong positive FCF, healthy return ratios and net cash
position are other positives.
Maintain ‘buy’ due to margin improvement in fourth quarter led by better price realisation and strong product
Ashok Leyland PhillipCapital Buy 211 257 21.8 mix. Healthy CV demand, likely acceleration of replacement demand and cost-saving initiatives are positives.
Maintain ‘buy’ due to strong fourth quarter performance driven by volume growth and expense optimisa-
Campus Activewear SMIFS Buy 251 299 19.1 tion. Positives are focus on trade distribution, product portfolio expansion and operating leverage benefits.
SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) DOWNSIDE (%)
Antique Stock Maintain ‘sell’ as growth via price hikes is not likely to sustain and volume growth will be in single digits
Metropolis Healthcare Sell 1,957 1,293 -33.9
Broking over the next 2-3 years. The possibility of margin dilution and expensive valuations are other negatives.
NG 3.7 PubDate: 03-06-2024Zone: ETWealthDelhi Edition: 1 Page: DETWDPBP User: manish.kumar10 Time: 05-31-2024 18:40 Color:
your feedback & more...

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.
I fully subscribe to Dhirendra Kumar’s and smooth.
views in ‘One day vs many years’.
Investing is a marathon, not a sprint.
While the excitement around market tips
Startup woes Mani Bhushan
For many years, I have been an admirer of

The cover story ‘Startup mistakes to Uma Shashikant’s articles. They are rele-
can be contagious, it’s essential to focus avoid’ covers all aspects of startup suc- vant and touching, making me look forward
on long-term planning and avoid knee- cess and failure, guiding entrepreneurs to reading these every Monday morning.
jerk reactions. through initial euphoria, product Her financial guidance is the real wealth and
Pranav development, marketing, fundraising,
truly valuable.
fiscal discipline, and technical and legal
Parthiv Jethi
Dhirendra Kumar’s observation that issues. Entrepreneurs should under-
the future, in investment parlance, ex- stand tax issues, admissible deductions,
Uma Shashikant’s column is beauti-
tends to years and decades is very per- and tax breaks. Startups face a long,
fully written and extremely insightful.
tinent. Life is uncertain, but investing volatile journey, from experimentation
Although we are all aware of the fact, we
in institutions like the Life Insurance to becoming a full-fledged company.
find it difficult to let go. Revisiting this
Corporation of India or reputed public- Conflicts of interest with investors
valuable article on a regular basis can
sector banks for the long term can and mentors can be roadblocks, so seed
help reinforce the idea.
ensure reasonable returns. I have done funds should have a contractual com-
K.V. Sunita
this and am able to lead a decent life. mitment to stay with startups.
I don’t have any experience with the Vinod Johri I’ve been a regular reader of ET Wealth for
stock market, which I associate with almost seven years, and I can say with con-
volatility. As the saying goes, ‘A known viction that the financial wisdom imparted
devil is better than an unknown angel’. financial toll of memories’, not only demon- eye-opener. Despite knowing the futility of
by it through its stories is hard to find any-
Additionally, one should adhere to strates the author’s deep financial knowledge, clinging to material objects, we do it. Before
entering this world and after leaving it, where else. As a freelance financial writer,
legal formalities, such as appointing a but also expresses her views in a nuanced
we are non-existent. The objects we love to I have been greatly helped by the publica-
nominee, to ensure smooth transfer of manner, making it a joy to read.
remain attached to stay in this world, to be tion as it has broadened my horizons. I look
wealth. Amaruvi Devanathan
used by others. If we view life as a journey, it forward to many more years of continued
S. Ramakrishnasayee
Uma Shashikant’s latest column is an should be light, and without much luggage readership.
Uma Shashikant’s latest column, ‘The and attachments, so that it remains happy Arup Choudhury
What is rental yield?

If you are confused by personal finance terms, jargon or
calculations, here’s a new series to simplify and deconstruct
these for you. In the first part, Riju Mehta explains what
rental yield is and how it is calculated.
What are There are two types of rental yields: gross and net
Rental yield
To put it simply, the types Gross rental yield
This is the return you calculate if you
Net rental yield
If, however, you subtract maintenance expenses, prop-
rental yield is the of rental just consider the total rent, without erty taxes, home insurance premium, etc, it will give
return on your real including any costs or expenses incurred you net rental yield. This gives a more realistic idea of
estate investment if yield? by you on the property during the year. the return you can expect from your property.
you were to rent it
out. It is calculated by
comparing the rent How is it calculated? Bengaluru tops rental yields
to the purchase price
or market value of If you get a monthly rent of `60,000, and the property value
is `2 crore, you can calculate gross rental yield using the fol- CITY RENTAL YIELD (%)
the property. In other
words, rental yield is lowing formula:
your annual rent as Gross Annual rent
Bengaluru 4.45
a percentage of the rental 100
property value. yield Property value Mumbai 4.15
It can help home
buyers take informed (60,000 x 12)
3.6% Gurugram 4.1
decisions on whether 100
they should invest 2,00,00,000 Pune 3.85
in a house for
rental purposes by
comparing it with
If you retain the above assumptions, but deduct maintenance Kolkata 3.8
charges of `50,000 and home insurance premium of `5,000,
other investment
options; choosing
calculate the net rental yield as follows: Noida 3.7
the city or location Net (Annual rent annual expenses)
for buying a house rental 100 Hyderabad 3.2
by comparing rental yield Property value
properties; and
setting realistic rents (60,000 X 12) 55,000
3.3% Chennai 3.1
for their houses. 100 Delhi 2.9
2,00,00,000 Source: Anarock Research. Data for Q1 2024
The Economic Times Wealth is available at an invitation price of ` 8/issue. To book your copy, contact your newspaper vendor or call 011 - 39898090; Email: crm.delhi@timesgroup.com; SMS ETWS to 58888
The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of Published for the proprietors, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110
this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held 002, Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP.
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times Regd. Office: Dr Dadabhai Naoroji Road, Mumbai 400 001. Editor: Babar Zaidi (Responsible for selection of news under PRB Act). © Repro-
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 duction in whole or in part without written permission of the publisher is prohibited. All rights reserved.
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions. RNI No. DELENG/2011/37994. MADE IN NEW DELHI

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NG 3.7 PubDate: 03-06-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWDFP User: manish.

kumar10 Time: 05-31-2024 18:46 Color:

THE ECONOMIC TIMES MANAGING

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