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Arogya
Sanjeevani
Is it for you?
Know the pros and cons of the
standardised health insurance plan to
check if it suits your needs. P2

Where should Don’t ignore Treat this Tips to write

you buy a risks of gilt period as a better, earn
house now? funds pause more
P7 P9 P14 P16

WE HELP YOU CHOOSE THE BEST

WORKS HY ffs
(MV 0
 cover story
02 The Economic Times Wealth May 18-24, 2020
Arogya
Sanjeevani
Is it for you?
Go through the pros and cons of
the standardised health insurance
plan to check if it suits your needs.
By Riju Mehta
A
mong the many learnings im-
parted by the coronavirus, per-
haps the most relevant for India
is the need for health insurance
coverage. As the pandemic con-
tinues to rage, the dire health scenario has
come to the fore: in a country where the av-
erage retail healthcare inflation has risen
sharply from 4.39% in 2017-18 to 7.14% in
2018-19, as per the Economic Survey 2019,
only 4.2 crore people, out of a 130 crore pop-
ulation, have retail health policies. This
means that the out-of-pocket spends are a
high 65% against a global average of 18%,
as per the insurance regulator, Irdai.
This is the reason that, in recent
years, the government and Irdai have
tried to step in and correct the skew.
The Ayushman Bharat Pradhan Mantri
Jan Arogya Yojana was introduced in
2018, with the intention of providing free
health coverage to the bottom 40% of the
population, or 50 crore people. Last year,
Irdai mandated the launch of Arogya
Sanjeevani (AS), a low-cost product with a
nominal cover and attractive features.
“The need for health insurance has
always been there, but people have not
GETTY IMAGES
bought it for various reasons, one being
the complexity in the product itself,”
says Pushan Mahapatra, MD & CEO, SBI
General insurance (see ‘Arogya is a simple
product..’). Besides the high premium and
obscure terms and conditions in the fine
print, there were other problems. “The tra-
ditional mindset was to procrastinate the
purchase since it was not considered es-
sential, not to mention the lack of accessi-
bility,” says Bhabatosh Mishra, Director,
Claims, Underwriting & Product, Max
Bupa Health Insurance.
Many of these hurdles seem to
have been taken care of with Arogya
Sanjeevani, with clearance given to 29
general and health insurance companies
to market the product. While 16 odd insur-
ers have already brought out the product,
mandated to be launched by 1 April 2020,
others are set to follow suit soon. Does this
mean you can buy Arogya Sanjeevani
without a second thought and it will take
care of all your health insurance needs?
What does it offer?
AS is a basic health plan that offers a lim-
ited cover of `1-5 lakh for one year, with
the annual premium ranging from `4,000
to `7,500 (see Snapshot...). It can be bought
as an individual or a family floater plan,
covering spouse, children, parents and
parents-in-law.
The important thing is that the features,
in terms of coverage, inclusions, exclu- while the rest of the cost is borne by the
sions, as well as the terms and conditions, insurer. “Co-pay is introduced by the
remain the same across insurers. The pre- insurer to cover the risk of uncertainty
mium, however, varies. This is because it about the customer profile, and is, in fact,
is reflective of the costs associated with a low in case of AS,” says Prasun Sikdar, MD
plan: claims, management expenses and & CEO, ManipalCigna Health Insurance.
distribution costs incurred by the com- There is a waiting period of 30 days, but
pany. “Since the claims ratio, staff and the coverage is wide, including treatment
servicing, growth and expansion, distri- costs for coronavirus and other illnesses.
bution across various demographies and It includes daycare treatments, Ayush and
regions is different for each company, the and modern treatments, besides dental
premium is bound to vary,” says Mishra. and plastic surgery. There are, however,
There is, however, no zone pricing in the several restrictions and limitations in the
plan, implying that the premium will coverage of some of these treatments.
remain the same across regions, whether
the buyer is in a metro or a tier 3 city. Benefits & drawbacks
It does have a co-pay inclusion of 5%, While the plan seems to offer a good deal at
which translates to the customer shelling a low cost, the market still has a lot of basic
out 5% of the sum insured from his pocket, health plans that offer wide coverage and
“As the features of Arogya
Sanjeevani are similar, the
serviceability of the company
will be important when
customers choose a plan.”
GURDEEP SINGH BATR A
HE AD, RE TAIL UNDERWRITING, BA JA J ALLIANZ
GENER AL INSUR ANCE
 cover story
The Economic Times Wealth May 18-24, 2020 03

features. Should one discard those in fa- relatively low premium stands out as a
vour of Arogya Sanjeevani? It is essential distinct advantage. The premiums for
to consider the pros and cons before tak-
ing a final decision.
similar basic health plans in the market
are 20-50% more expensive, a huge differ- Snapshot of Arogya
No confusion: “One of the biggest
problems faced by buyers was that there
were multiple insurance products of-
ence for buyers.
Some of the latest treatments such as
stem cell therapy and oral chemotherapy
Sanjeevani
fered by companies, with different sets of are covered, while dental and plastic
pricing in metros and surgery, even cataract
non-metros, and with surgery is insured,
various add-ons. It led which are typically not
to a lot of confusion covered by basic plans.
as to which product
to buy,” says Gurdeep
Another attraction is
the inclusion of alter- Main features
Singh Batra, Head, native medicine treat-
Retail Underwriting, ments, such as homoe- Sum insured Policy term Renewability
Bajaj Allianz General opathy and ayurveda.
Insurance. While most of these
`1-5 lakh 1 year Lifelong
“Besides, the fine treatments are covered
print in the policy by other health plans, Eligibility Co-pay No-claim bonus
would typically surface they usually come for a 18-65 years 5% of sum 5-50% of
only at the time of claim higher premium.
settlement,” says S.
“Arogya is essentially Flexibility: The plan
(dependent kids: 3 insured sum insured
months to 25 years)
Brahmajosyula, Head, for the first-time buyers has other advantages
Underwriting, SBI like the option of paying
General Insurance.
with low income and premium in monthly,
With Arogya, there is low insurance visibility quarterly, semi-annual
a high degree of clarity
since the features, as
in tier 3/4 cities.” or annual instalments.
It also offers to cover
What does
well as terms, are stand-
ardised and remain the
PR ASUN SIKDAR
MD & CEO, MANIPALCIGNA
parents and parents-in-
law at a reasonable pre-
it cover?
same across insurers. HE ALTH INSUR ANCE mium, which is typical-
So one doesn’t need to ly offered by other plans
Hospitalisation
compare and research for the best plan. If for a much higher premium. Besides, it Includes hospital room rent,
it meets one’s requirements, one can pick offers lifelong renewability, portability boarding expenses, doctor fees, Daycare
nursing expenses, operation
it depending on the premium that suits and the delivery of soft document copies to
theatre and ICU charges,
treatments
one’s budget. customers.
surgeon, anaesthetist, medical All daycare
Wide cover at low premium: To be able “The plan is quite reasonably priced, treatments are
to get such a large set of treatments at a so one can easily buy a small individual
practitioner, consultants,
specialist fees, medicines used during hospital covered, but
stay, road ambulance charges, pre- and post- OPD is not.
hospitalisation expenses.
How much
premium
will you ANNUAL ANNUAL

pay? PREMIUM FOR

INDIVIDUAL
POLICY (`)
PREMIUM FOR
FAMILY FLOATER
POLICY (`)
Ayush
treatments
Modern
treatments Dental
Cataract
Covered
& plastic up to 25%
This covers Stem cell
inpatient care therapy, robotic
surgery of sum
ManipalCigna Health Ins 7,433 10,710 treatment under surgeries, oral Only the insured or
Ayurveda, chemotherapy, treatments `40,000,
HDFC Ergo Health Ins 7,352 14,704 Yoga and balloon caused by an whichever
Naturopathy, sinuplasty, intra injury or a is lower,
TATA AIG General Insurance  6,353 - Unani, Sidha and vitreal injections, disease are per eye.
Homoeopathy. among others. covered.
United India Insurance 6,343 15,007
Religare Health Insurance 6,013 15,149
Future Generali General Ins 5,996 14,089
Main exclusions
Bajaj Allianz General Ins 5,950  13,510
Kotak General Insurance 5,842 13,473
Max Bupa Health Ins 4,723 11,044
Diagnostic and Cosmetic Obesity
SBI General Insurance 4,501 11,721 investigative Maternity OPD or plastic & weight
tests expenses treatment surgery control
Star Health & Allied Ins  4,170  9,255
Universal Sompo General Ins 4,164 9,304
Go Digit General Insurance  3,263   7,194

Alcohol or Change Hazardous Infertility

Individual: Cost of `5 lakh cover for a 35-year-old male. drug abuse of gender or adventure and
Family floater: 2 adults and 2 children, with the oldest member being 35 years old.
treatment Rehabilitation treatment sports sterility
Premiums for all insurers could not be sourced. Data sourced from websites and companies.
 cover story
04 The Economic Times Wealth May 18-24, 2020

Arogya Sanjeevani vs Basic health plans cover at a young age. Later, with growth in
family and income, one can port to a bigger,
more comprehensive cover,” says Anand
AROGYA SANJEEVANI BASIC HEALTH PLANS Roy, MD, Star Health and Allied Insurance.
FEATURES Capping & limitations: Remember, however,
that the low premium comes for a cost. The
room rent sub-limit, which is typically 1%
Sum insured `1-5 lakh Higher sums insured available of the sum insured or nil in basic health
plans is 2%of sum assured up to a maxi-
mum of `5,000, and for ICU, it is 5%up to a
Premium `4,000-7,500 20-50% higher than AS
maximum of `10,000.
Similarly, modern treatments are cov-
Individual, family floater, including Individual, family floater, parents
Cover type ered up to 50% of the sum insured, while
parents & parents-in-law optional at a higher premium
cataract surgery is covered up to 25% of
2% up to `5,000 & sum insured or `40,000 per eye. The dental
Room rent Either no room rent capping or 1-2%
5% up to `10,000 for ICU and plastic surgery are covered only in
case of an illness or accident. Many health
Co-pay 5% of sum insured Usually 10-30% plans that offer these facilities come with-
out such limitations.
Different premiums for metros and tier Another limitation is the size of the
Zone pricing No zone pricing
1, 2, 3, 4 cities
 All insurers are mandated to cover by 1
Modern treatments Covered up to 50% of sum insured
Oct 2020

Daycare treatments All fully covered Most plans cover these

Ayush treatments Covered Many plans cover these

Covered at almost double the premium

OPD treatments Not covered
of a regular plan

Waiting period 30 days 30-90 days

Pre-existing diseases 4 years 4 years “Health insurance has

now become a necessity,
No-claim bonus 5-50% of SI Up to 100% of SI not luxury, and with AS
Add-ons No riders/ add-ons Allowed add-ons
offering premium payment
in instalments, one should
Pre- & post-hospitalisation 30 days / 60 days Mostly 60 days / 90 days not postpone buying it.”
ANAND ROY
Basic health plans details may vary MD, S TAR HE ALTH & ALLIED INSUR ANCE

“Arogya is a simple product for those who

PUSHAN
MAHAPATR A
MD & CEO,
SBI GENER AL
INSUR ANCE
As the features of Arogya Sanjeevani are similar
across insurers, what should one consider while
buying a plan?
Since the features are the same, you will need to see
how close the company is to you, how strong is its
brand and financial strength, servicing and claim
settlement. Ultimately, it’s the customer experience
in policy purchase and claim settlement that will be
the distinguishing factor over a period of time.
The plan has been launched at a time when the
want a basic health cover for the first time”
Covid crisis is at its peak. Can it be a
game changer for penetration?
Even without the pandemic, the product
fulfils a need in the society. Ayushman
Bharat caters to the bottom rung of
nearly 50 crore people. Another 11%
are covered by corporates and group
plans, and then there are the individual
policies. Despite these, more than 40%
of the population is uninsured. So the
need is there, especially because of the
rising medical inflation. However, in-
surance is not being bought for various
reasons, one of them being the product
itself, which comes with complex terms
and conditions. There was a need to de-
mystify the product terms, inclusions,
exclusions, etc. Arogya is a very simple
product for someone who wants a basic
health cover for the first time. It’s a sort
of starter kit, on which you can build for
2-3 years, and as your income and fam-
ily grow, you can look at migrating to a
more complex product.
As for it being a game changer, we
now have a simple product like Arogya
to cater to the huge uninsured popula-
tion. It will depend on how well it is
distributed by insurers and their reach
in semi-urban and rural areas.
Are you at an advantage given your
large presence in tier 3/4 cities, or will
the lack of technology be a deterrent?
If the processes can be made digital
and channels made amenable to digital
processing, it is very easy to sell insur-
ance. The data being consumed by rural
India is mind-boggling and, in any case,
there are nearby contact points in bank
branches and banking correspond-
ents. In other places, we have agencies,
which are a force multiplier.
Will the low premium be a big pull or
will other factors come into play?
Every product has an ideal customer
profile and segment to which it is
pitched. The problem occurs when
there is no synergy between the product
and target group. This is when people’s
interest drops and they stop buying
these products. If people need more fea-
tures, they will explore. But there is a
large population for whom this product
is adequate, given the areas where they
stay, socio-economic background and
income levels. There’s no reason why, if
we reach this segment, Arogya cannot
be a viable long-term product.
Will there be an increase in digital chan-
nels of distribution now?
We will not only have to get used to
digital channels, but also a contactless,
digital process of sale. The agents are
not going to go away and will be a strong
part of the industry. We will have to
build a digital process so that they can
connect with customers. This should be
one of the game changers and a facilita-
tor for the physical channels.
 cover story
The Economic Times Wealth May 18-24, 2020 05

cover itself, which is capped at `5 lakh. “In

a metro, this amount is not adequate and
a person would need at least `10 lakh for
health cover,” says Mishra. On the other
hand, a co-pay of 5%of sum insured may be
high for a person in a rural area. Besides,
the no-claim bonus ranges from 5-50%,
while several plans offer the option of 100%
no-claim bonus.
Should you buy it?
Every insurance product is targeted at a
specific audience and most experts are of
the opinion that Arogya Sanjeevani is for
the middle to low income population in tier
3/4 cities, or even rural areas. “The USP of
the plan is that it is for the first-time buy-
ers with low income in tier 3 or 4 cities who
have no insurance visibility,” says Sikdar.
Such a plan would work for this segment
of population even with the various limita-
tions and cappings. This is because the cost
of hospitalisation in small towns and vil-
lages is much lower compared with that in
metros or tier 1 cities. So even with a room
rent limit of 2% or a 25% capping for cata-
ract, the customer will be able to bear the
hospital cost in smaller towns.
“On the other hand, even a 2-3 day hos-
pitalisation in a metro or tier 1 city would
result in heavy medical expenses, which
cannot be taken care of by this plan,” says
Sikdar. In fact, a buyer may end up paying
70% of the healthcare cost from his pocket.
It would then defeat the purpose of buying a
health insurance plan.
As for co-pay, since the plan is intended
“AS has high credibility
as it is endorsed by Irdai,
has low premium and
flexibility of soft copies
being sent to customers.”
BHABATOSH MISHR A
DIREC TOR, CL AIMS, UNDERWRITING &
PRODUC T, MA X BUPA HE ALTH INSUR ANCE
for the uninsured, it will be a step-up for
them since they will now pay only 5% of the
total hospitalisation cost compared with
the 100%they were paying earlier. Besides
this amount is typically higher, ranging
from 10-30%, for other basic health plans
However, some experts believe that the
plan would even work for the younger,
single, lower income population in metros
because it is very affordable and will help
them shoulder the basic hospitalisation
costs to a large extent. “After all, how many
people can afford to buy a `10 lakh plan
“It does not have fancy features
which may jack up its price, but
has all the essential features
and is affordable. So, it’s a very
good deal for the customers.”
S. BR AHMAJOSYUL A
HE AD, UNDERWRITING, SBI GENER AL INSUR ANCE
even in metros,” asks Sikdar. for all insurers? Most experts agree that
“It’s a good entry level plan even for peo- the things to consider are the company’s
ple who have just graduated and are in their track and serviceability record, claim set-
first jobs because it is standardised and tlement history, premium, and hospital
doesn’t require too much research,” says network. Make sure that the company has
Brahmajoysula. Later, if the buyer wants a experience in selling the type of product
more evolved plan and can pay a higher pre- that you are buying.
mium, he can easily port to other insurers. “Serviceability is a very important fac-
So if you are in a metro or a tier 1 city and tor because you need to be sure that the
don’t want a small cover with limitations company will stand by you during claim
and cappings, you can avoid this plan and settlement,” says Batra. Adds Sikdar: “It’s
opt for a more comprehensive and evolved also important to check how the company
cover. Remember, however, that you will engages with you, how its officials explain
have to pay a premium that can be 20-50% the product or its terms and conditions to
higher than the premium for Arogya you, make an effort to keep in touch with
Sanjeevani. you even after the sale of policy, or inform
If, on the other hand, the plan seems to you about the changes.”
fit your budget and needs, do not postpone Given the current circumstances, also
buying it because, as Roy of Star Health ensure that you will be able to conduct the
says, “Health insurance is no longer a entire transaction digitally.
luxury but a necessity and this prodcut is a
great way to enter insurance.”
So what you should you consider while Please send your feedback to
buying a plan since the features are same etwealth@timesgroup.com

New tax filing deadline is 30 Nov Reduction in

EPF contribution
Government also cuts TDS rates to leave more money in the hands of taxpayers
will not benefit
employees

A
s part of the Covid relief meas-
ures, the government has
extended the deadline for fil-
ing income tax returns for the
financial year 2019-20 from 31
July to 30 November. Similarly, the dead-
line for tax audit has been shifted from 30
September to 31 October.
Earlier, the deadline for receiving Form-
16 had been extended from 15 June to 30
June in view of the disruption caused by
the nationwide lockdown. Tax experts
were therefore anticipating an extension in
the ITR filing deadline.
The government has also reduced the
TDS rates applicable for non-salaried
payments. As per the announcement, to
provide more funds to taxpayers, TDS for
non-salaried payments and TCS for speci-
fied receipts shall be reduced by 25%. The
reduced TDS and TCS rates will remain
valid till 31 March 2021. The reduced rates
will be applicable on payments such as TDS
on rent exceeding Rs 50,000 per month,
dividend payments from mutual funds and
companies and TDS on fixed deposits.
However, the reduction in the TDS and
TCS rates does not mean any reduction in
the tax liability. An individual will still
have to pay tax on the entire payment as
per the applicable slab rate. If the tax is
higher than the TDS rate, the taxpayer
may have to pay a higher self assessment
tax later. Therefore, a lower TDS may sim-
ply defer the liability. In case the TDS rate
is higher than the tax payable, the move
will reduce the amount that gets stuck
with the government before it is claimed as
a refund.
In a further relief to taxpayers, the last
date for making payments without interest
and penalty under the Vivad se Vishwas
scheme has been extended to 31 December.
This is the second extension of the scheme.
Earlier, it had been extended to 30 June.
The Vivad se Vishwas Scheme was an-
nounced in the Budget 2020 to allow one-
time settlement of tax disputes between the
tax department and individuals. The settle-
ment can be made without paying any pen-
alty and interest on the disputed amount.
To ease the stress on employers,
the government has reduced the
contribution to the EPF account
from 12% to 10% of an employee’s
salary for the next three months.
Employers will save money due to
the 2% reduction in their contribu-
tion to the EPF of their employees.
While the move will also increase
the take-home salaries of employ-
ees, financial experts say it would
also curtail the growth in the indi-
vidual’s Provident Fund account.
If the total contribution is reduced
from 24% to 20%, the employee
will be contributing 16.6% less to
his retirement savings for the next
three months.
Of course, this would also depend
on how salaries have been struc-
tured by an organisation. If the
PF contribution is part of cost to
company (CTC) of an employee’s
salary, the employer may have to
pass on the benefit to the employee
by way of increasing some other
allowance.
 guest column
06 The Economic Times Wealth May 18-24, 2020

How to exit long-term

holdings securely
What’s the right way to protect the gains that you may have already made in
equity funds? It’s time you explored the SWP option, says Dhirendra Kumar.

H
ow can you ensure that if you
have been saving and growing
your wealth over the years, then
an event like the Covid pan-
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH demic does not slash and burn
through your portfolio within months?
Even though Covid-19 is a new phenom-
money ena, there’s nothing new about the problem

mysteries I’m talking about. Whether it was the dotcom

SWPs are a regular
redemption from
a fund. There are a
number of variations.
Investors can either
redeem a fixed
amount, a fixed
number of units or all
returns above a certain
base level. Often, they
are a convenient way
to make a regular
income from a fund
investment.
crash or the 2008 financial collapse, there
have always been events that have threat-
ened to trash your investments just when
you were about to need the money. This time
is no different.
Amongst investors in equity mutual
funds, the talk of the last three months has
been how much value their investment
portfolios have lost. At the end of March,
the crash in values looked apocalyptic, with
funds having lost up to 40%of their peak
value before the crash. April brought some
relief as, against all expectations, just as the
Covid was becoming a globe-girdling pan-
demic, equity values staged a recovery.
However, regardless of what actually
happens, one sees laments on twitter about
how the value of money accumulated for this
or that purpose has been decimated by the
crash in equity funds.

The one-year period

was the best in terms of
delivering the best returns
but also overall the least
variability and the least
worst minimum returns.
At Value Research, this problem of a safe
exit from a long accumulated portfolio has
always been in focus. This is something
that we always discussed in our books and
magazines, as well as in the columns that
I write. The standard advice that we have
always given is that just as one must enter
equities gently through SIPs, one must exit
through SWPs. For planned exits, where one
knows beforehand roughly when one needs
the money, the thing to do is to start with-
drawing the money through an Systematic
Withdrawal Plan some time before the target
date arrives.
For those who are not familiar with the
concept, SWPs are a regular redemption
from a fund. There are a number of varia-
tions. Investors can either redeem a fixed
amount, a fixed number of units or all re-
turns above a certain base level. Often, they
are a convenient way to make a regular in-
come from a fund investment. However, they
function very well as a way of safely with-
drawing from long-running investments too.
The idea is simple but easy. Let’s say that
you had accumulated `20 lakh in a set of eq-
uity funds that you needed about now. Let’s
say the money was in funds that together had
the same performance as the Sensex. The
value of the money would have dropped from
`20 lakh in late February to `15 lakh now.
Not good.
The SWP technique that we suggest would
mean that around February 2019, you should
have started a monthly SWP of roughly
1/12th of the value. If you had `20 lakh in eq-
uity funds in February 2019 and you started
withdrawing them at this rate, then you
would have been able to get out about `19.8
lakh over the year. There would have been
some opportunity loss too but ignoring that
is exactly what this is all about. This tech-
nique always works in sharply reducing any
potential losses that you might face.
The question then arises as to how we
know whether one year is the right period.
This started as a rule of thumb, but recently,
when there has been an intense interest in
this technique, we have done a little research
project comparing one, two and three-year
periods over a long period of time and one
year turned out to be the best. Here’s what
we did: We took the Sensex’s entire history
and assumed that there was a fund that gave
exactly those returns. There wasn’t, but
that does not matter for the purpose of this
experiment. We ran a set of simulations (1110
odd in all) of making 10 year investments and
then withdrawing them through an SWP of
one, two or three-year period. The one-year
period was the best in terms of delivering the
best returns (which is obvious) but also over-
all the least variability as well as the least
worst minimum returns.
In short, there will always be sudden
crises, now and in the future. For long term
accumulations that are needed at a known
point in time, a one year lead time is enough
to make a neat exit.
Please send your feedback to
etwealth@timesgroup.com

Where to buy a house now
Suburbs and tier 2 cities are likely to gather more interest if work from home becomes the norm in future.
by Narendra Nathan
T
hough residential real estate
has very few takers right now,
the future looks promising. The
housing segment is expected
to propel the real estate sector
forward between 2022-25.
Among favourable factors, the emerging
structural change involving work from
home will play an important role. While
most people are now working from home
due to the current circumstances, several
IT companies have already announced
that this would be a permanent feature for
at least a part of their workforce. “Work
from home as a concept is going to remain
because some companies are realising
that productivity is not impacted by this.
This also allows companies to hire employ-
ees from smaller towns,” says Shveta Jain,
MD, Residential Services, Savills India.
In the first phase, this shift will be mod-
erate because companies will be grappling
with issues like data confidentiality, etc.
“Once things settle, majority of the work-
ers will go back to offices and only the non
client facing will continue to work from
home,” says Prashant Thakkur, Director
& Head of Research, Anarock. What will
be the impact? “The impact will be more
in some sectors like IT and less in others.
So, this could be around 10-15% of the ag-
gregate work force, which will also be sub-
stantial,” says Samantak Das, Executive
Director and Head of Research - Real
Estate Intelligence Services, JLL India.
Emerging suburbs
The work from home culture will change
the way we live. Moving to more spacious
homes in the suburbs would make sense
because commuting will not be required.
Residential will lead next phase of recovery
Average annual investment (in $ billion) is projected more in housing.
5.10
Office
3.90
1.00 3.50
0.70
1.00
2.80
2.40 1.20
1.30 1.30
0.80
Phase 1 Phase 2 Phase 3a
2010-13 2014-17 2018-19
Figures for 2020-21 and 2022-25 are estimates by Savills India
As most urban homes today do not come
with space meant for a home office or
study, a bigger home in the suburbs could
be the answer. “Most people settled for
small houses close to office. If they work
from home, people will move away from
city centres to suburbs, which are more
spaced out and also cheaper,” says Jain.
Companies have also started realising
that lower travelling time means more
productivity. “To reduce travelling time of
employees, companies may go for the hub
Residential Others
Total
3.60
1.10
1.20
1.30
Phase 3b Phase 4
2020-21* 2022-25*
Source: Savills India
real estate
The Economic Times Wealth May 18-24, 2020 07
tions in the metros, some companies may
move their second centres to smaller cit-
ies. While this will be the back up plan of
companies against disturbances like this,
it will also create more job opportunities
in smaller towns,” says Thakkur. More
job opportunities in smaller cities would
mean increased housing demand in those
places and lower migration to metros. The
working class profile may also support
housing demand in tier 2 cities. “Demand
in smaller cities is driven by end users.
Since the percentage of government and
public sector employees are high, the ongo-
ing employment slowdown will not affect
this segment,” says Thakkur.
The way forward
Though home buyers have to consider
factors like their job security, etc, experts
feel that the coming quarters will be a
good time to start searching because of
the expected correction in price. Since
new transactions are not happening due
to the lockdown, the pricing pressure is
not visible now. However, experts feel
GETTYIMAGES
that the end user activity will come back
in the next 2-3 months and the downward
pressure in price will be visible after that.
“Though the extent of price correction
will vary from micro market to micro
and spoke model—main office in the city market, housing prices are expected to
centre and several smaller offices in the come down by 5-8% in the next 6-9 months
suburbs. Since there is a shortage of qual- and this will open up opportunities for
ity office space in the suburbs now, this end users,” says Jain. Since prices have
shift may happen only in the medium to remained flat for the past few years, time
long term,” says Das. correction has happened already. Das also
feels that this is a good time to search and
Tier 2 cities will gain zero in on the dream house of your choice.
Though metro dwellers are unlikely to “Though prices of existing projects are not
shift to smaller towns, several positive de- being lowered, new projects are coming up
velopments are expected there also. “Due at competitive prices. Even corporate de-
to continued Covid-19 induced restric- velopers are giving good offers. Being in a
buyers’ market now, home buyers can also
drive a hard bargain,” he says.
In addition to the suburbs and smaller
cities, real estate investors can also look
at lower priced segments like affordable
and budget housing that are expected to
recover first.
“While high end projects will continue
Estimated Within 6 months
6 to 12 months
to suffer due to lack of demand, affordable
and budget projects will recover first.
time to More than Continued government support will be
12 months
5.50 recovery the main driver in keeping the affordable
segment resilient,” says Thakkur. Das
Affordable concurs. “While affordable and budget
1.10 housing 21 segments are expected see green shoots
is more from the coming festive season (from
resilient and 62 October), high-end and luxury segments
2.90 is expected will remain stagnant in 2020-21,” he says.
to bounce 51 Properties costing up to `40 lakh are re-
back faster. ferred to as affordable housing and proper-
ties costing between `40 and `80 lakh are
1.50 Recovery will start 32 referred to as budget housing.
once the nationwide
28
restrictions are
significantly eased
Note: Based on a
6 Please send your feedback to
survey by Savills Affordable Other
etwealth@timesgroup.com
India Housing Housing
 guest column
08 The Economic Times Wealth May 18-24, 2020
Debt fund investors seem to
have learnt their lesson
April redemptions show investors are reacting judiciously to recent events, says Narendra Nathan
T
he recent closure of six schemes
by Franklin Templeton shocked
debt fund investors. Though
there were a number of side
pocketing incidents earlier, no
one expected a complete closure. Side pock-
eting entails segregating bad quality pa-
pers from the main portfolio and convert-
ing these into a separate scheme. While the
original scheme continues with reduced
net asset value (NAV), no entry or exit is
allowed in the segregated scheme. This
scheme is wound up as and when money,
either in full or in part, is received from its
investments. Franklin Templeton’s action
was akin to segregating entire schemes.
Investors will have to wait years to get
their money back—in part or full— de-
pending on the situation then.
The event created panic among debt
fund investors and redemptions were not
restricted to Templeton schemes alone.
However, redemption data from April
shows investors taking a judicious ap-
proach. For example, there has been a net
outflow of `19,239 crore from credit risk
funds in April. This indicates long -term
investors are realising the folly of taking
risks in the debt portion of their portfolio
just to earn 1-2% more. Safety, liquidity
and return (SLR) principle should guide
debt investments as debt should be for pro-
viding stability to the portfolio and not to
generate additional returns. Equity is the
right asset class for trying to generate addi-
tional return by taking higher risk.
Investors are displaying maturity by
distinguishing between categories based
on risk and have started shifting money to
safe categories. Net inflow into liquid and
overnight funds were `68,848 crore and
`2,603 crore respectively. However, inves-
tors were quick to reduce exposure to cate-
gories taking unnecessary risks. Duration
funds are supposed to be normal debt funds
with papers restricted to that duration.
Dynamic bond category, on the other hand,
is supposed to shift between different
durations based on market situations and
generate additional returns. Sebi’s classifi-
cation rules did not specifically ban these
categories from investing in lower quality
papers and some AMCs used that loop-
hole to generate higher returns by taking
higher credit risk. The net outflows from
all these categories in April show investors
have figured out the game.
Another point worth mentioning is
that investors have started checking the
portfolio quality of each scheme within
categories and have started distinguishing
schemes based on credit profile. For exam-
ple, the AUM of ICICI Prudential Medium
Term Bond Fund, a scheme with 53%
exposure to AA rated papers, fell by 19%.
The AUM fall in IDFC Bond Fund, which
has 100% in AAA and sovereign papers,
fell only by 7% in April. Similar investor
distinction is visible in the ultra short
term category as well. While AUM of ICICI
Prudential Ultra Short Term, a scheme
with 55% AA or lower rated papers, fell by
12% in April, AUM of HDFC Ultra Short
Term Fund, a scheme with 100% in AAA
rated papers or equivalent remained flat.
Comparison between March and April
reveals AMCs and fund managers have
also learned their lessons and reduced
their exposure to lower rated papers.
However, there is no guarantee that fund
houses will continue to be extra vigilant
forever. If one goes by history, AMCs and
fund managers will forget about this inci-
dent in 1-2 years and will start taking risks
again. For instance,the extra vigilant
stance generated by the fixed maturity
plan (FMP) crisis in October 2008 didn’t
last long. The crisis then was triggered due
to faulty design of the product. The FMP’s
entire portfolio was locked into the tenure
of the scheme, but investors were allowed
to redeem in the middle with an exit load.
This created an asset liability mismatch.
NARENDR A NATHAN
IS CHIEF MANAGER,
INVES TMENTS, E T WE ALTH
Comparison
between March and
April reveals AMCs
and fund managers
have also learned
their lessons and
reduced their
exposure to lower
rated papers.
GETTYIMAGES
More importantly, most of these papers
were illiquid and therefore, AMCs could
not sell them in the market to meet re-
demption requests. The fund industry sur-
vived that crisis only with the help of Sebi
and RBI. However, once things settled,
AMCs started taking higher risks again.
As blindly believing debt fund manag-
ers is not a good strategy, investors have to
check the scheme portfolios every month.
The credit profile of a portfolio can change
either because the fund manager takes
deliberate action in this regard or because
of redemption pressures. Assume scheme
XYZ has an AUM of `100 crore and 50% of
its investments is in high rated papers and
the remaining in low rated papers and it
is facing a sudden redemption of `25 crore.
Since lower rated papers are usually illiq-
uid, the fund manager will be forced to sell
high rated papers. After this, the scheme
will be left with `25 crore of high rated pa-
pers (33% of portfolio) and `50 crore of low
rated papers (67% of portfolio). Any fall in
quality of portfolio and reduction in AUM
is a warning sign and investors should
rush to the door before it shuts.
Please send your feedback to
etwealth@timesgroup.com

Don’t ignore risks of gilt funds
Investors are rushing to buy, lured by great returns. However, returns can moderate to a large extent.
by Sanket Dhanorkar
I
nvestors have been piling on to
gilt funds, attracted by the high
double-digit returns. It is not just
new investors flocking towards
this space. Data from AMFI
shows that while `2,846 crore flowed
into gilt funds in April, the segment
saw only `330 crore worth of redemp-
tions. Existing investors seem to be
keen to hold on to their hefty gains.
Very few are actually booking profits
in this segment. Given the recent de-
velopments, can this approach hurt
investors?
Both gilt and long duration funds
have enjoyed a good run for over two
years now. Ever since the central bank
embarked on a series of rate cuts from
mid-2018, returns from such funds have
soared. Bond yields and interest rates
move in opposite direction to bond pric-
es. When interest rates fall, bond prices
go up. Longer duration bonds see steep-
er rise. The recent sharp 75 basis points
cut by RBI further propelled the NAV of
these funds. Gilt funds and long dura-
tion funds have clocked 15% and 16.6%
respectively over the past year. During
this time, yield on the benchmark 10
year sovereign bond has softened from
7.4% to below 6%. The question now is,
how long will this party continue?
Now even if the central bank cuts
interest rates further to prop up a stut-
tering economy, the bond markets may
not share the joy. This is because the
government is now resorting to higher
market borrowing to plug revenue
shortfall arising due to weak economic
activity amid the Covid-induced lock-
down. The government intends to bor-
row `12 lakh crore—50% more than
the earlier target—to finance its fiscal
deficit. Bond markets fret over excess
supply as it pushes bond prices down.
Experts indicate the bond market tra-
jectory going forward will be guided
more by the fiscal math and the addi-
tional borrowing it entails.
Early indications are that the gov-
ernment may not have to stretch the
fiscal math as much as feared. Despite
the `20 lakh crore stimulus package,
the actual direct hit borne by the treas-
ury is likely to be much lower. “From
a fiscal standpoint the immediate cost
to the exchequer will be in the
range of `1-2 lakh crore, which
is not too outlandish given the
current situation,” says a note
by Axis AMC. While this is a
relief, bond markets still have
to contend with the surplus bor-
rowings. Further announce-
ments may also keep the bond
Gilt and long duration funds have
enjoyed a strong run for two years
Fund
IDFC Government Securities - Constant Maturity Plan
ICICI Prudential Constant Maturity Gilt
IDFC Government Securities - Investment Plan
Axis Gilt
SBI Magnum Gilt
DSP 10Y G-Sec
DSP Government Securities
Nippon India Nivesh Lakshya
SBI Magnum Constant Maturity
Nippon India Gilt Securities
Data as on 13 May 2020
market on tenterhooks, analysts say.
“A lot of volatility can be expected in
the long duration strategies in coming
days,” warns Pankaj Pathak, Debt Fund
Manager, Quantum AMC. “There is still
huge uncertainty about the financing of
the fiscal deficit and how much of incre-
mental government bond supply will be
absorbed by the RBI,” Pathak adds. The
dynamics between the known expan-
sion in fiscal deficit and the somewhat
unknown quantum of financing of this
by the central bank is important,
argues Suyash Choudhary,
Head – Fixed Income,
mutual funds
The Economic Times Wealth May 18-24, 2020 09
AMC, insists investors should not buy
gilt funds expecting a repeat of last
year’s performance. “If you buy a gilt
fund make sure you have a very long
1-year Net assests horizon,” she says. Pathak argues it is
return (%) (` Cr) better to play duration through dynamic
18.8 229 bond funds given their flexibility to cut
portfolio duration sharply in anticipa-
18.4 164 tion of rate hikes. “Existing investors in
duration funds may cut back positions to
18.1 858
some extent,” he adds. This will still al-
17.5 86 low you to gain from any further upside
if it plays out.
17.5 2,433
Apart from the great returns, inves-
17.4 48 tors have also latched on to gilt funds for
another reason. Concerned by recent
17.3 1,036
sharp NAV drops in debt funds owing to
16.8 1,135 defaults and credit rating downgrades,
investors are finding safety in the
16.6 609
sovereign guarantee of government
16.4 1,250 securities. But experts warn investors
are turning a blind eye to a different type
Source: Value Research
of risk in gilt funds. While credit risk
in this basket can be safely ignored, gilt
IDFC AMC. “We have seen the reveal of funds are highly susceptible to interest
the expansion in deficit but market yields rate risk. There is the possibility of loss
are reacting to the absence of any absorp- of capital owing to adverse movements in
tion plan so far from the central bank of interest rates—specifically, an uptick in
this excess duration supply,” he adds. interest rates. A look at historical perfor-
The RBI will have to step up open-market mance shows that this risk can deliver
purchases or execute further “Operation blows far worse than credit defaults.
Twists”—where it buys longer maturity Pathak says, “Gilt funds may be safe
government bonds and sells short matu- from credit perspective, but are not from
rity notes. If the RBI does not absorb the the interest rate perspective.” Do not buy
additional supply in some manner, there gilt funds as a substitute for a ultra short
could be a sell-off in gilts, analysts duration fund because you are chasing
say. safety, Gupta asserts. “To try and solve
Radhika Gupta, one problem, you will create another
CEO, Edelweiss one,” she cautions.
Please send your feedback to
etwealth@timesgroup.com
GETTYIMAGES
 stocks
10 The Economic Times Wealth May 18-24, 2020
Use APT model to identify
quality stocks during volatility
This model helps in estimating the fair value of a stock by taking into account multiple systematic risk factors.
by Sameer Bhardwaj
T
he expected return of a stock is
based on the risks it is exposed
to. The difference between the
actual return and the expected
return is termed as alpha.
Stocks that generate positive alpha are
sought after. The market or systematic
risks hold considerable importance in the
risk and the expected return relationship.
This is because diversification strategy
cannot eliminate the market risks and
therefore, investors should be compensat-
ed for such risks. In finance theory, capital
asset pricing model (CAPM) is widely used
to estimate such expected returns.
CAPM is a one-factor model where the
sensitivity (or beta) of a stock with respect
to the market index returns, acts as a cru-
cial variable in estimating the expected
return. However, the stock markets are
influenced by several macro variables
like inflation, industrial production, GDP
growth, currency movements, govern-
ment finances, international oil prices,
etc. Each of these factors have a varying
level of influence on different stocks. For
example, the weakening of a nation’s cur-
rency has a positive effect on the export-
oriented companies, whereas companies
dependent on imported raw material get
negatively affected.
To include the impact of different fac-
tors on the expected return, a multi-factor
model known as arbitrage pricing theory
or APT model is used. It is an extension
of CAPM where the expected return of a
stock is calculated as a linear function
of various macroeconomic factors. The
sensitivity of a stock with respect to each
macro factor is represented by a factor
specific beta. In other words, there will be
different betas, each representing a stock’s
sensitivity to the said factor. The model is
represented as:
E(r)=Rf+ (f1)+ (f2)+ (f3)+ … +
1 2 3
E(r) : The expected return of a stock.
n
Rf : The risk-free rate (or the return when
no systematic risk factors are present)
, , 3 … n : Factor specific betas.
1 2
f1, f2, f3 … fn : Macro or systematic risk factors.
The f1, f2…fn can include GDP growth,
fiscal deficit, bond spreads, industrial
production etc. Corresponding to these
factors, there are betas: b1, b2…bn. Each
beta measures the effect of a defined macro
factor on the expected returns of a stock.
The APT model has its limitations too.
Since it does not specify the number of fac-
tors to be included in the model, the ana-
lyst/investor is free to decide the factors.
As a result, the output may differ depend-
APT positive alpha stocks with good potential
The actual return is compared with the expected return to identify stocks with positive alpha.
Company
Finolex Industries
UPL
Navin Fluorine International
Essel Propack
ing on the number of risk factors included.
For the computational aspects, APT
involves the application of multiple linear
regression and cross-sectional regression.
However, this article does not focus on
computation methodology. It aims to iden-
(fn) tify stocks that have generated positive
alpha as per APT.
The constituents of the BSE500 index
are analysed to identify stocks that have
generated returns higher than expected.
Last five years of quarterly data for four
systematic risk factors namely, real GDP
growth, IIP growth, WPI inflation rate and
BSE Sensex returns are included.
Using such data, the expected returns of
all of the 500 stocks are worked out. The ac-
tual return (average return over the past
5 years) is compared with the expected re-
turn to find out stocks with positive alpha.
For example, Pfizer has generated an actu-
al 5-year quarterly average return of 5.3%,
whereas as per the APT model, the return
works out as 3.3%. This implies a quarterly
Dividend Current
PE
yield (%) price (`) price (`)
12.56 2.74 364
57.11 2.14 376
41.78 0.55 1,410
61.53 0.74 170
Current price, PE and Dividend yield as on 12 May 2020. Source: ACE Equity and Bloomberg.
average positive alpha of 2%. To look at the
future potential of such stocks only those
that are covered by at least five Bloomberg
analysts and with one-year forward price
potential greater than 10% were included.
Let us look at four such stocks:
Finolex Industries
The PVC pipes and PVC resin manu-
facturer has its production facilities in
Maharashtra and Gujarat. According to
a sector report by Equirus, players like
Finolex will continue to gain market share
due to the likely revival in agri demand,
difficulties faced by the unorganised play-
ers owing to liquidity issues, and expected
increase in demand from the affordable
segment. The brokerage house is bullish
on the company and expects an EBITDA
CAGR of 17% over 2019-20 and 2021-22.
UPL
UPL is an agrochemical company that
manufactures industrial chemicals, chem-
ical intermediates, specialty chemicals,
and also offers crop protection solutions.
The company has significantly reduced
its net debt in the fourth quarter of 2019-
20 and the commentaries from its global
peers indicate that the demand for agro-in-
puts is intact despite Covid-19 challenges.
According to a report by Emkay, there is
a likelihood of a rating upgrade in 2021-22
based on its estimated adjusted net debt
to EBITDA ratio. The brokerage house
estimates EBITDA margins of 22.1% and
22.5% for 2020-21 and 2021-22 respectively.
Navin Fluorine International
It is a specialty fluorochemicals company
that specialises in the manufacture of
refrigerants, and various organic and in-
organic fluorides. The company’s specialty
business & CRAMS (Contract research
GETTYIMAGES
and manufacturing services) segments are
growing at a robust pace helped by strong
domestic and export volumes. Analysts be-
lieve that the proposed capex of `450 crore
Target Upside Experts’ views
potential(%) Buy Hold Sell
644 76.6 15 3 0
564 50.3 30 2 2
1,665 18.0 10 3 0
199 17.3 9 1 1
will help the company explore new avenues
and scale up its international position.
Essel Propack
This is a specialty packaging company
that manufactures laminated plastic tubes
catering to the FMCG and pharma space.
According to a report by Motilal Oswal, the
company is set to benefit from the various
expansion measures and efforts to improve
its product mix across geographies over the
last two years. Moreover, the increasing
share of higher-value personal care tubes
will help improve the margins. Besides,
its diversified presence across the globe
reduces the concentration risk. New prod-
uct launches, renewed growth strategy,
prudent capital allocation, and increasing
use of laminated tubes over aluminium are
additional growth drivers going forward.
Please send your feedback to
etwealth@timesgroup.com
 QA
your queries
The Economic Times Wealth May 18-24, 2020 11

I am 30 and suffering from

hypertension and pre-
& I am 46. I run a business with
my wife. I want to invest
diabetes for the past two `50,000 in NPS Tier 1 for the
years. I want to buy a health 80CCD (1B) benefit. My
insurance plan for my child’s school fee is `75,000.
spouse and myself. Should I Health To exhaust the 80C benefits,
Tax
buy a family floater or insurance should I invest another
separate plans for each of `75,000 in ELSS or NPS or saving
pricing with
us, given my pre-existing both? Other than saving tax,
usually is NPS
health conditions? the investments in ELSS or
based on Our panel of experts will answer NPS will fund my retirement. under
age, and not
pre-existing
questions related to any aspect of Section
80CCD
conditions. Buying a floater policy will personal finance. If you have a (1B) is over and above the benefit under
mean for the same price, you will get a query, mail it to us right away. Section 80C. So, you can invest in both
higher coverage and risk is spread across and avail of the full tax benefits. ELSS is
two individuals. Opt for a family floater a good option as it can yield above
plan and choose a high sum insured. Now
plans are available for sum insured as QUESTION OF THE WEEK average returns in the long run. You
should start SIPs of `2,000 each in two
high as `1 crore at very competitive ELSS funds such as Axis Long Term
prices. Please declare your I will retire on 31 May. My portfolio comprises Equity Fund and Mirae Asset Tax Saver.
health conditions to the `95 lakh in stocks. I have `16 lakh in ABSL The balance can be invested every year
insurance company. Dynamic Bond, `24 lakh in Franklin Bluechip, `13 in PPF. This will ensure asset allocation
before you buy. lakh in Franklin Small Com, `24 lakh in Franklin and optimum return with minimum risk.
Income Opp Fund and `24 lakh in ICICI Prudential Buy a health cover for self and
Medium Term Bond Fund. I will get `1.2 crore family and get additional
Yashish Dahiya deduction of up to
Co-founder and CEO, from my PF. I have FDs of `10 lakh. I stay in my
Policybazaar.com `25000 under Section
own house and have no debts. We are a family of
80D.
five with me the sole earning member. My
children are settled. I pay a premium of `38,000
for a family floater plan. I earn `21,000 a month Raj Khosla
I am a pensioner. In 1997-98, Founder and Managing Director,
from LIC pension plans. I want to rebalance my MyMoneyMantra.com
I started trading in stocks portfolio to earn an additional `80,000 per
along with four friends. We
stopped after incurring losses
month to meet expenses. After two years I might
to the tune of `2 lakh, but need an additional `20,000 a month and perhaps
It is not
never sold the shares we had. this will increase by `20,000 every two years.
We started trading again three possible to
How should I proceed? I am 18. My grandfather
years ago, after opening a claim such
notional has left me `1 lakh in his
demat account. We could not
will. Where can I invest
convert all the shares as some capital Your cumulative exposure to direct stocks and equity
this amount for 5 years?
companies had ceased to exist losses on funds is around `1.32 crore. Your free exposure to debt
while shares of others were no equities in funds (excluding Franklin Income Opp but including Invest in a
longer traded. These shares in your income ABSL Dynamic Bond) amounts to `40 lakh. To ensure secure instrument to earn decent and
paper form were bought for tax return. regular income, invest your PF proceeds of `1.2 crore in assured returns. Low risk investments,
`1.5 lakh-`2.5 lakh. Can we
To calculate an ultra short term bond fund with SWP option. You can such as bank FDs, government small
show this loss in our tax
returns, against profits made
capital loss, consider the direct plans of any of these —IDFC Ultra savings schemes, etc., provide high
during the last financial year? there should Short Term Fund, ICICI Prudential Ultra Short Term safety but low returns. For a 5-year
Since the investments were be a selling Fund, Invesco India Ultra Short Term Fund and Axis window, you can opt for schemes such as
made many years ago, can we price and Ultra Short Term Fund. Consider redeeming ICICI the NSC, Post Office Time Deposit or Post
add some nominal interest? selling date. Prudential Medium Term Fund and ABSL Dynamic Bond Office Monthly Income Scheme (POMIS).
All these Funds and invest the redemption proceeds in any of the The NSC offers you 6.8% interest, while
elements above-mentioned ultra-short term funds. A lump sum POTD and POMIS offer 6.7% and 6.6%
are missing from your delisted/defunct investment of `1.6 crore in any of those ultra short returns respectively. If you have a longer
paper shares. Therefore, you bond funds with monthly SWP of `80,000 for 20 years investment window of 10-15 years, you
will not be able to claim to start with, assuming an annualised return of 5%, will can consider investing in Kisan Vikas
these capital losses or leave you with about `1 crore in these funds at the end Patra (KVP) or PPF. Investing in equity
any interest on it. of the tenure. Redeem some of your equity funds and mutual funds is also a viable option. The
stocks in a staggered manner in every bull market best way to do this is to invest 20% in a
phase in future. Invest the proceeds along with preferred fund and deposit the rest in a
Shubham Agrawal the cash inflows from Franklin Income bank to start an SIP. If you decide to take
Senior Taxation Advisor,
Opportunities Fund, as and when you up this option, select a fund that has
TaxFile.in
receive, in your selected ultra-short delivered consistently for the last 10
debt fund. This will ensure the years. You must also put in a little time
longevity of your fixed income assets and effort to
even after increasing your monthly understand how
SWP by `20,000 every two years. mutual funds
I am a 25 and earn `4.8 work.
lakh per annum. I can save Naveen Kukreja
`10,000 per month. How CEO and Co-Founder, Paisabazaar.com
should I invest this amount Adhil Shetty
for the next seven years? Equity mutual funds have given returns of 12-14% on average over the long CEO, BankBazaar
term. Returns are, however, not guaranteed. You should consider the risks and
only if you are comfortable, you can invest in large cap funds like the Axis Blue Chip Fund and in low cost
index funds like HDFC Index Fund - Sensex Plan or Motilal Oswal Nifty 500 Fund. You might want to first
build an emergency fund to cover six months’ expenses in a fixed deposit or in a liquid fund. Ask our experts
Have a question for the experts?
Ankur Choudhary etwealth@timesgroup.com
Co-Founder and CIO, Goalwise
 learn & keep
12 The Economic Times Wealth May 18-24, 2020

A small drop does not mean a fast recovery Sharp initial recovery may not always sustain
2008-10 saw the steepest and fastest drop, yet witnessed the swiftest recovery.

1994-1999 2000-2004 2008-2010 635

572
Will this bear 1994-99 phase took least time to recover initial 25% and longest for final 25%.

PERIOD
Days taken to retrace market decline (post bottom)

INITIAL 25% 25-50% 50-75% FINAL 25%

market be brutal
Number of trading days

1994-1999 15 42 79 499
448
411
369 2000-2004 51 433 65 23
2008-2010 29 22 150 210
261

or benign?
2008-10 phase retraced initial 50% of the market fall very quickly but took much longer to recover final 50%.
In current slump, index has retraced 25% within 9 days and nearly 50% within another 24 days.
Even if market recovers quickly initially, it can take very long to fully recover lost gains. Be prepared for a lengthy fight.

74
35 24
-40.7 -56.2 -60.9
Recovery can be very slow initially,
Peak to 20% drop 20% drop to bottom Bottom to peak Peak-bottom drop (%) gaining speed much later
2020 has seen market transition from peak to bear market (20% drop from peak) in 41 trading days, but has not
reached the depths of previous bear markets. 2000-04 saw index remain weak for several months.
% of market decline recovered (post bottom)

As the ongoing bear market plays After 30 days After 100 days After 300 days
Markets can trade far below out, Sanket Dhanorkar looks back 1994-1999
peaks for a long time on three previous bear markets to 36.2
2000-04 saw index stay beyond 40% drop for the longest time.
offer you some perspective on the 54.3
Number of trading days below peak
severity of drawdowns and 54.5

PERIOD UP TO 20% BETWEEN

20%-30%
BETWEEN
30%-40%
BEYOND
40% eventual recovery. 2000-2004

14.1
1994-1999 391 494 270 2 31
2000-2004 120 154 194 508 21.2

2008-2010 294 178 81 143 2008-2010

22.4
Despite sharp sell-off, 2020 has not yet witnessed severity of previous bear markets.
57.8
66.2
Sharp upticks can be false signals Index recovered 35% of lost value within first 30 days in ongoing phase of market. Even if market takes time to
recover initial losses, the last leg of recovery may come through very rapidly.
Bear markets can often have steep relief rallies.
Return (%) Return (%)
Investors have to be ready for myriad scenarios Recovery
12 Sep 1994- 11 Feb 2000-
-38.9 25 Jan 1996 -33.9 22 May 2000 Vicious bear markets in the past have
from steep
evolved in different ways 40% DECLINE DAYS TO
PERIOD
110 DATE RECOVERY

PERIOD PEAK DATE BOTTOM DATE

RECOVERY
cuts is not
DATE 2000-04 Sep 1994-July 1999 4 Dec 1996 635
BSE SENSEX
2008-09 1994-99
always quick
25 Jan 1996-
14 Feb 1996 26.7
22 May 2000-
12 Jul 2000 26.6
(Normalised to
a base of 100)
100 1994-1999 12 Sep 1994 4 Dec 1996 14 Jul 1999 100.1 101.7 101.7 In the past, market has Feb 2000-Jan 2004 9 Apr 2001 687
2000-2004 11 Feb 2000 21 Sep2001 2 Jan 2004
taken under 2 years
90 2008-2010 2 Jan 2008 9 Mar 2009 4 Nov2010 to recover fully from a Jan 2008-Nov 2010 3 Oct 2008 513
similar cut.
14 Feb 1996- 12 Jul 2000- While recovery has been slow in recent instances, markets have recovered within 6 months after a 40% cut.
-9.4 25 Mar 1996 -27.6 18 Oct 2000 80

65.7
70
Be ready Return (%)
55.1
25 Mar 1996-
24 Apr 1996 20
18 Oct 2000-
15 Feb 2001 23.5
60
for a topsy 28.6
turvy ride
2020-? -26.8 -29
50 Recovery phase can
24 Apr 1996- 15 Feb 2001-
75.4 be very turbulent. The
-29.1 4 Dec 1996 -41.4 21 Sept 2001 1994-99 recovery saw
40 steep fluctuations.
4 Dec 1996- 5 Aug 1997- 12 Dec 1997- 21 Apr 1998- 23 Jun 1998-
5 Aug 1997 12 Dec 1997 21 Apr 1998 23 June 1998 14 Jul 1999
Bear markets are sometimes interrupted by sharp upticks that turn out to be “sucker rallies” —drawing in
investors who mistake it for the start of a sustained recovery. 30 Sometimes, markets can give up chunk of gains on the way to full recovery. The 1994-99 bear market recovered
96% of its value by Aug 1997, only to sink again.
Current bear market has already witnessed a sharp 30% uptick. It remains to be seen if it is a part of
rebound or another false signal.
DAYS 0 37 111 185 259 333 407 481 555 629 703 777 851 925 1,073 1,147 1,157 NOTE: The figures pertain to movement of BSE Sensex daily closing values. Intra-day highs and lows not
considered, including for peak & bottom days. Only trading days considered for calculating timelines.
 financial planning
14 The Economic Times Wealth May 18-24, 2020
Treat this period as a pause
Retiring in times like these can seem unfair, but this is a phase that will pass, says Uma Shashikant.
W
hat if you are retiring now,
in the middle of this crisis?
It is tough. You worry about
the wrong timing. It may
not be so bad after all, if you
exercise your options diligently.
The problem with retiring in the mid-
dle of an economic crisis is that the value
of your investments shrink. What looked
like a comfortable corpus is now a fairly
UMA SHASHIK ANT
diminished bundle of wealth. Then the
IS CHAIRPER SON, CENTRE
FOR INVES TMENT opportunities to invest remain low, if not
EDUC ATION AND LE ARNING quite risky in terms of timing. Rebalancing
the portfolio or making long term decisions
about money is tough. No one is able to say
which are the assets worth investing in.
What should you do?
First, avoid making long-term strategic
decisions. Do not assume that retirement
means you must make all the decisions
The problem about your corpus and wealth at that turn-
with retiring in ing point. Take it easy for the next few
the middle of an months until the economic scenario looks
economic crisis is clearer. Treat your retirement like a career
that the value of break mentally. Hold back the eagerness to
your investments gather and tabulate all your assets and to
shrink. What make modifications.
looked like a Second, measure your situation based on
comfortable corpus the diversity of your assets. That holds the
is now a fairly key to how your retirement will pan out.
diminished bundle It is likely that you own a home in which
of wealth. you live. Maybe you own a second home or
land too. You might have investments in
mutual funds and in the stock market. You
may have a PF and gratuity that you can
draw or invest in an annuity. You may have
bonds, deposits, PPF, post office saving cer-
GETTY IMAGES
tificates. You may also have some wealth in
gold, jewels and silver.
This diversity is your saviour. Not eve-
rything will be losing value and not every-
thing is needed at the same time. If there is
one portion of your wealth with a value that
can fund your expenses for the next year to
a possible extended period of three years,
you should be alright. A simple source of li-
quidity and income until things settle down
is all you need to be comfortable.
Third, postpone the decision to rebalance
and shuffle. This is not the right time. Do
not sell that second house in panic. Do not
liquidate your funds and stocks and convert
them to deposits. Sit through that loss if you
can. Ideally you will rebalance your assets
a few years before retirement for generating
income. If you have not done that already,
don’t try to do it now. As long as one portion
of your assets allows drawing an allowance
for your regular expenses, you are quite ok.
Fourth, do not indulge or distribute.
Many feel quite rich with the corpus that is
accessible after retirement. My mother got
herself a whole stash of new jewellery when
her PF got credited to the bank account on
retirement. She knew that her corpus was
not her source of post retirement liveli-
hood, and rightly trusted her children. I
know of elders who give away the new found
wealth to children. Hold that thought. Keep
your money and postpone any distribution
or indulgence at this time.
Fifth, don’t begin an enterprise and make
large investments to set it up. My cousins
always wanted to run a travel agency, and
called me last week saying a little office space
was now available at a throwaway price close
to her house. Why would you set up a travel
agency when the whole world is confined to its
homes, when airlines are grounded, and when
people are mortally scared of traveling? She
argued that this might be the most appropriate
time as everything is down. That is a trap.
Unless you are a maverick investor and a se-
rial entrepreneur who has seen it all, including
failure, this is not the time. If this business is
the first you ever began, and if it is going to take
your lifetime’s savings to set it up, do not get
the timing wrong. Preserve your corpus at this
time. Do not distribute it into risky avenues.
Sixth, cash is king during troubled times. It
is fine to have your retirement proceeds lying
in the bank. It is ok to receive a small interest
from fixed deposits that you have made. There
is no need to earn top returns from your corpus
from day one. Do not make investment deci-
sions you will later regret. Tell yourself that
return to normalcy is your trigger to making
long-term decisions. Do not be compelled to act
before you are convinced that the world has
returned to normal.
Seventh, account for lack of employment
opportunities and for a second career. During
these times of retrenchment and pay cuts, if
you had plans for a second job, your search just
got tougher. Be on the lookout for something
that might come your way, but prepare for not
having an income. This is only a phase and it
will pass. Don’t despair that all your plans have
failed. Take this crisis as a break from work,
rest and rejuvenate yourself. Do not sink into
complacency. Be prepared to find something
worthwhile to do when the opportunity arises.
Eighth, do not make too many drastic chang-
es to your spending and living habits. It is
unlikely that your PF balances or your assets
do not cover your normal lifestyle expenses for
a period of 12 months. Do not cut back severely
and harshly and live in fear that retiring in the
middle of the crisis has pushed you down the
ladder of comfort. Be kind to yourself. You have
worked hard all your life, devoting the best
years of youth to earn an income. Don’t allow
the negativity around you to take away from
the fact that you can truly use what you have
saved. Keep indulgence in check, but don’t cut
back on the basics.
Ninth, do not talk about your money, wealth
or plans to everyone. During times when peo-
ple are losing their jobs, suffering pay cuts and
facing losses in investments that they cannot
redeem, a recently retired person who has a
neat bundle credited into the bank, is both en-
viable and a target. Do not lend. Do not let oth-
ers know the details. Guard your wealth.
Tenth, this too shall pass. Don’t be forced to
make decisions in a hurry. Or opportunisti-
cally. Wait for normalcy and treat this period
as a pause. Don’t forget that what you have on
hand is precious.
Please send your feedback to
etwealth@timesgroup.com

Create an emergency fund
This corpus can be your insurance against an unexpected shortage of income.
Sharad is a 28-year-old
pilot who understands the
importance of an emergency
fund to take care of unexpected
expenses. However, he has
not been able to create such
a fund so far. He has tried to
build a contingency corpus in
the past, only to give up due to
other demands on his income or
because he did not have enough
surplus. Mostly, he has ended
up using whatever had been set
aside for emergencies on needs
that were not really urgent.
What steps should Sharad take
to get past this stage and move
on to saving for other financial
goals?
smart things to know
1 2
Super top-up
health insur-
ance plans
provide ad-
ditional cover, The premium amount
typically over is cost effective
and above due to threshold
the basic limits of the cover
hospitalisa- provided by the basic
tion policy. hospitalisation plan.
S
harad misses having an emer-
gency fund at his disposal in these
troubled times. The airline indus-
try has ground to a complete halt
and his income is under threat.
There is even a possibility of job loss as the
airline industry is not expected to be back
on its feet in the near future. A contingency
fund would have allowed him some cush-
ion to fall back on.
However, it is never too late to start build-
ing an emergency fund. Sharad needs to lay
down rules that will help him create and
manage the fund appropriately. His first
step should be to calculate the amount he re-
quires. A fair estimate would be six months’
worth of living expenses. He should factor
in liablities like any loan that he may be ser-
vicing. He should then divide this required
amount into smaller targets that he can
reach in stages. The smaller targets will
be easier to achieve and will give him the
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Super top-up health insurance plans
It provides
cover over the
4
threshold limit
of the health
3 5
insurance
cover in
multiple claims Super top-up policy lapses
or multiple when the entire cover is
hospitalisations exhausted and not when
in the year. you have used it once.
financial planning
The Economic Times Wealth May 18-24, 2020 15
PAPER WORK
:: Online EPF claim
Employees’ Provident Fund
Organisation (EPFO) members
now have the option to make a
withdrawal claim using an online
Aadhaar-based facility. One can
file an online claim at the https://
unifiedportal-mem.epfindia.gov.in/
memberinterface/ portal.
Prerequisites
The member must have an
activated UAN (Universal Account
Number) and seeded his bank
account details and Aadhaar to the EPFO
account. Also, the employer should have
approved and verified the e-KYC.
Approval by employer
After logging in, the member
should click on ‘Manage’ and
then ‘KYC’ to enter Aadhaar
number and bank details (of the seeded
account). The online claim facility can
be used after at least two months of
GETTY IMAGES
leaving the job after it is approved by
the employer.
Claim process
The member can click on the
satisfaction and motivation to keep going.
The next step would be to find the savings ‘Online Services’ tab and then
that can be apportioned for this goal. A good choose ‘Claim’ form, which
way of doing so would be to set aside money is a composite form No. 31, 19, 10C
for the fund first before considering other and 10D. Member’s information will
expenses. An SIP into a short-term debt be updated on the page. One needs to
enter last four digits of the registered
fund or an automatic transfer to a recur-
ring deposit at the beginning of the month
bank account number. A pop-up with
‘Certificate of Undertaking’ needs
will allow Sharad to get used to managing
to be approved to proceed for bank
his expenses on the reduced available in-
account verification. Once verified,
come. A standing instruction automates
the member can click on ‘Proceed for
the investment process while cancelling it
claim’. The desired withdrawal option
requires a little effort, which he might not must be chosen and the amount needs
put in unless it is absolutely necessary. to be updated. Scanned copy of cheque
Sharad can reach this goal faster by cut- needs to be uploaded and address
ting down on expenses and move any sav- of the member must be mentioned.
ings and excess income that comes his way, An authentication OTP will be sent
such as a bonus, towards this goal. He could to the registered mobile number. On
take a conscious decision not to increase his verification, the claim will be submitted.
lifestyle expenses in line with an increase in
salary for at least a year. This will help him
create the needed corpus quicker. Covid 19 EPF withdrawal
One can withdraw an amount
equal to three months’ of basic
and dearness allowance (DA) or
75% of the credit balance in the account,
whichever is lower, in case of financial
emergency due to Covid-19. One
needs to select ‘Outbreak of pandemic
(COVID-19)’ option against the ‘Purpose’
field and click on ‘PF Advance’ claim.
:: Points to note
 Status of the claim can be checked
on the portal through ‘Check claim
It is a great status’ under ‘Online Services’ tab.
product to  It is important to weigh the pros and
enhance the cons of withdrawal from EPF as it
coverage of enjoys a tax-free investment status.
hospitalisation
expenses.
 career strategy
16 The Economic Times Wealth May 18-24, 2020
Write better,
earn more
You can improve your writing
skills for higher income and
greater effectiveness, says
Devashish Chakravarty
D
id you know that you wrote a
novel last year? If you use email
at work, then you write be-
tween 150 to 500 words or more
a day depending on your job.
That means about 40,000 to over 1,20,000
words a year making a small or a large nov-
el. Add to that various presentations, team
notes, pitches and proposals that could
make or break your career and income.
With that volume of writing contributing
to your professional success, you need to
constantly upgrade your skills to achieve
greater success through effective writing.
Let us get started, now.
The only purpose
The only purpose of writing is to be read.
By one person at a time. So, the first ques-
tion is, who are you writing for? Step into
that person’s shoes. Understand that per-
son’s perspective, whether it is your boss, a
client, or the customer service department.
Unless you use the reader’s perspective,
your writing will not be absorbed or even
read. If your manager is going to use your
material to make a presentation to the
Board, then the directors are your final au-
dience. Do not write until you have taken a
few moments to specifically identify and be
one with your reader. This automatically
implies that there is no place for your own
emotions, especially anger, in professional
communication.
Outline to begin
The first hurdle you will face is your re-
sistance to writing especially if you are
asking for something, writing to authority,
dealing with your own or the reader’s nega-
tive biases. One simple trick will solve two
problems. Make a brief outline on a page
of what you wish to convey. This includes
the background, a few points, implications,
and actions. Making an outline bypasses
your resistance to writing and gets you
moving. It also gives you clarity of thought
and builds a strong foundation for the ac-
tual output.
Using logic
Use the problem-solving technique to
choose your content. Firstly, establish the
context to get the reader on the same page
as you. What is the problem? How and who
does it affect? Why does it matter today?
Then what are the components of the issue,
what are the reasons for each, what are the
boundary conditions and if this problem is
similar to another problem? Finally, how
to solve the causes, who will solve it, what
resources are required and by what time?
Does this cover all the questions that will
arise in the reader’s mind? This is also the
critical thinking approach and you will not
require all these questions all the time.
Telling the story
How you tell the story or sequence your
content changes the impact of your writing.
You can use the standard story-telling tech-
nique—STAR or Situation, Task, Action
and Result. There is an extended version of
STAR that makes it easier to understand.
Pixar Animation studios from the Walt
Disney stable uses it extensively in its mov-
ies - Once upon a time there was _______.
Every day, _______. One day _____.
Because of that, ______. Until finally _____.
Back to basics
Get the appropriate format right. If you are
writing an email, spend 20% of your time
in framing your subject line to make it rel-
evant and important for the reader. If you
are selling something, spend 80% of your
time in the subject. Know the salutation or
how you are expected to refer to the reader.
Follow your firm’s standard format for the
beginning and closing of your emails, pres-
entations and project reports.
Make it interesting
Your goal is to be read. So, it is your re-
sponsibility to make it interesting for the
reader. Darius Foroux, the productivity
blogger, has two tips. Firstly, remove all
clichés from your writing like – in order to,
to conclude, I am pleased to share etc. They
EDITING IS THE
SECRET SAUCE
1 2:1 EDIT
Do not succumb to the
seductive myth of the Golden
Draft. No writer in the world
writes a perfect first draft.
Always edit before you save
your writing or click send on
that email. Edit at least twice for
each draft that you write. If you
are a perfectionist who edits
about 10 times, you can improve
further by switching tasks or
taking breaks between edits.
GO FOR SIMPLE
2 Use one of your edits
GETTYIMAGES
to increase readability of your
work. Go for simplicity both in
choice of words and construction
of sentences. Writing does not
permit you the luxury of gauging
your audience’s reaction and
serve no purpose and create clutter for the
restating your point to improve
reader. Secondly, make it appealing to the
understanding.
eye. If you are writing an email, break it up
into paragraphs no longer than three sen-
PUNCTURE THE
tences each, use bullet points and sub-head-
ings, make important points bold and vary
3 BALLOON
the length of your sentences. Additionally, Let out all the hot air from
use the active voice instead of the passive, your writing to increase impact.
thus reducing the number of words while Shorten your writing drastically
focusing on the subject instead of the object in the first edit itself. Delete the
of the sentence. first two paragraphs and check
if there was more than a ripple
Get these right in impact. Use one word instead
You are concerned about professional of a phrase or sentence. Delete
writing. Hold that thought when you are fillers and adverbs like very,
sending a message, chat, or WhatsApp. greatly, quickly, little, rather etc.
Your messages should all be in prose with
no shortcuts in grammar, spelling or lan- TYPOS
guage. Save the informality for friends and 4 Typos are the bane of
family. Do a fact and figure check when- professional writing and hence
ever you are referring to data, quoting a your second edit’s goal is to
report or person and pay special attention remove mistakes. Your word
to where you put the decimal point in num- processor like Microsoft Word
bers. A factual error in one sentence and will not distinguish between
your writing is no longer trusted. Each lose (deprived of) and loose
reader will need to expend extra effort (not tight) and you will ‘lose’
thereafter to fact check and this will reduce respect on account of your
your credibility and readability. ‘loose’ writing. Use a grammar
checker tool like Grammarly or
You can always improve study good emails to improve
Writing is a skill. You are the craftsman grammar.
continuously improving upon your current
level of mastery and thus increasing your PARALLELISM AND
professional effectiveness and income. 5 REPETITION
Your biggest resource is conscious read-
During your final edit,
ing. The more you read and notice how
implement for parallelism
other writers frame their emails, books,
and remove redundancy and
presentations and reports, the better you
repetition. Parallelism occurs
write and develop your individual style for
in—he came, he saw, and he
different requirements. Additionally, your
conquered. But not in—he
vocabulary improves and you exercise a
came, he saw, and he finished
more effective choice of words in your sen-
conquering. Repetition is when
tences.
you have used the same word
multiple times. Redundancy is
when you have repeated a point
THE WRITER IS FOUNDER elsewhere, maybe using the
AND CEO AT QUEZX.COM same words.
AND HEADHONCHOS.COM.
 The Economic Times Wealth

SMART STATS
May 18-24, 2020

In This Section
MUTUAL FUNDS - P18
LOANS AND DEPOSITS - P20
ALTERNATE INVESTMENTS- P21

ET WEALTH TOP 50 STOCKS

Every week we put about 3,000 stocks through four key filters and rate them on a mix of factors. The end result
of this is the listing of the top 50 stocks based on the composite rating to help ease your fortune hunt.
RANK PRICE ` GROWTH%* VA LUAT I O N R AT I O S RISK R AT I N G
Current Previous Stock Net Div Downside Bear No. of Consensus
Rank Rank Price Revenue Profit PE PB Yield PEG Risk Beta Analysts Rating

KEC International 1 1 194.60 23.23 31.92 10.27 2.05 3.07 0.33 2.19 1.15 34 4.74
1 Fast growing stocks
Power Grid Corp of India 2 2 160.80 13.31 21.93 6.71 1.43 5.08 0.31 1.43 0.59 27 4.70
Top 5 stocks with the highest
HG Infra Engineering 3 3 170.45 41.94 72.67 8.69 1.67 0.29 0.14 2.40 1.00 16 5.00 expected revenue % growth
JK Cement 4 4 1,091.35 15.46 70.89 29.40 3.10 1.54 0.47 1.65 0.71 28 4.79 over the previous year
JSW Energy 5 5 40.15 2.57 32.84 9.50 0.56 2.47 0.27 1.79 0.60 16 4.81 HG Infra
42
Engineering
Emami 6 6 183.35 9.51 78.88 27.19 3.97 4.37 0.32 1.81 0.67 33 4.03
Bayer 42
Birla Corp 7 7 399.25 9.35 54.11 11.91 0.68 1.89 0.29 2.14 0.98 11 5.00 CropScience
Alkem Laboratories 8 9 2,527.10 29.33 78.06 39.47 5.52 1.21 0.52 1.30 0.36 21 4.24 Ajanta Pharma 40
Engineers India 9 8 63.35 22.24 17.53 10.75 1.69 6.63 0.51 1.94 0.61 15 4.47 Ipca
39
Laboratories
Sun Pharmaceutical 10 10 455.95 24.00 48.60 41.23 2.65 1.27 0.88 1.61 0.62 40 3.92
Info Edge India 32
ITC 11 11 163.80 10.13 26.01 15.87 3.39 3.48 0.61 1.76 0.82 38 4.53
Manappuram Finance 12 13 123.05 2.23 73.82 11.31 2.31 1.81 0.16 2.84 1.57 14 4.64
Larsen & Toubro 13 12 871.65 15.61 13.42 13.35 1.91 3.24 0.91 1.83 1.08 43 4.77
2 Least expensive stocks
Sterlite Technologies 14 -- 100.10 17.50 19.70 9.10 2.09 3.47 0.36 2.86 0.84 11 4.64 Top 5 stocks with the lowest
NTPC 15 21 89.35 18.68 10.01 5.84 0.81 0.54 0.65 1.52 0.72 27 4.93
price-earnings ratio

Ipca Laboratories 16 15 1,594.35 39.01 84.33 45.35 6.46 0.33 0.55 1.50 0.16 24 4.13 NTPC
5.84
CCL Products India 17 18 187.10 21.16 24.06 16.15 2.98 3.54 0.67 1.75 0.83 10 4.80
Dilip Buildcon 6.24
Gujarat Gas 18 16 241.70 31.81 142.01 40.22 7.63 0.41 0.27 1.83 0.82 30 3.97
Redington
6.55
Mphasis 19 22 803.40 23.07 10.95 12.61 2.56 3.36 0.92 1.64 0.77 34 4.26 India
APL Apollo Tubes 20 -- 1,220.40 18.61 55.77 19.45 3.01 1.12 0.41 2.21 1.23 10 4.60 CESC 6.65
UltraTech Cement 21 14 3,609.50 18.09 65.50 40.42 3.47 0.32 0.82 1.71 0.91 43 4.47 Power Grid 6.71
Corp of India
Jubilant Life Sciences 22 20 449.95 10.18 27.61 12.21 1.49 2.22 0.46 2.36 1.02 13 4.54
Cipla 23 26 569.75 13.29 29.11 29.98 3.05 0.70 1.05 1.33 0.32 43 4.39
3 Best PEGs
Essel Propack 24 25 171.75 14.08 48.52 28.04 3.90 1.45 0.58 2.12 0.70 11 4.55
Top 5 stocks with the least
Crompton Greaves Cons. 25 23 208.15 14.59 41.50 32.50 11.88 0.93 0.79 1.51 0.64 37 4.59 price-earnings to growth ratio
Aurobindo Pharma 26 28 665.60 28.22 24.13 16.42 2.79 0.44 0.68 2.87 0.92 35 4.60 Manappuram
Finance Gujarat Gas
CESC 27 30 591.80 11.70 8.04 6.65 0.88 3.36 1.14 1.75 0.72 18 4.94
Mahanagar Gas 28 27 902.00 0.66 32.57 16.34 3.72 2.17 0.45 1.87 0.95 30 4.20
0.14 0.16 0.27 0.27 0.29
Ajanta Pharma 29 29 1,494.45 39.73 44.28 33.61 5.79 0.90 0.78 1.64 0.65 12 4.33
Pfizer 30 31 4,413.45 17.70 40.31 47.13 6.71 7.81 1.17 1.41 0.35 10 4.60
HG Infra JSW Energy Birla Corp
Transport Corp of India 31 33 155.75 11.81 19.72 8.31 1.35 1.26 0.53 1.97 0.96 10 4.90 Engineering
Century Plyboards India 32 19 119.45 5.62 40.35 17.60 2.68 0.89 0.59 1.91 0.76 20 4.45
Dilip Buildcon 33 32 255.35 21.51 20.02 6.24 1.21 0.39 0.31 2.73 1.28 15 4.53 4 Income generators
Dr Reddy's Laboratories 34 35 3,732.00 22.13 29.20 32.96 4.42 0.53 1.06 1.23 0.32 47 3.60 Top 5 stocks with the highest
Thermax 35 38 700.05 1.84 34.61 24.22 2.77 1.99 0.72 1.37 0.41 32 2.94
dividend yield (%)
Redington India 8.74
Heidelberg Cement India 36 34 154.10 8.21 27.05 15.74 2.97 0.95 0.53 2.03 1.03 15 4.60
Pfizer 7.81
VRL Logistics 37 41 153.75 7.80 17.90 15.25 2.17 4.50 0.93 1.81 0.71 15 4.33
Engineers India 6.63
Torrent Pharmaceuticals 38 45 2,408.50 15.08 71.53 93.06 8.59 1.50 1.30 1.48 0.43 34 3.38 Power Grid
Corp of India 5.08
Bayer CropScience 39 50 4,500.25 41.81 146.10 65.46 8.26 0.40 0.71 1.52 0.59 10 3.80
VRL Logistics 4.50
Info Edge India 40 44 2,695.80 32.43 50.74 53.74 12.77 0.31 0.40 2.11 0.74 27 3.30
Coromandel International 41 46 615.70 5.57 45.30 24.76 5.31 0.57 0.55 1.49 0.74 15 4.33
5 Least risky
SRF 42 -- 3,651.60 14.12 44.90 32.46 5.04 0.39 0.69 2.01 1.13 21 4.38
Top 5 stocks with the lowest
Apollo Hospitals 43 -- 1,294.40 24.61 44.59 76.31 5.40 0.51 1.40 1.93 0.99 23 4.87 downside risk
Blue Star 44 37 469.95 10.09 24.96 31.53 5.79 4.22 0.96 1.71 0.82 25 3.80 Alkem
Laboratories Thermax
Lupin 45 48 863.05 3.53 54.24 63.72 2.81 0.60 1.16 1.38 0.33 46 2.98
Tata Consumer Products 46 49 362.80 27.61 70.81 55.76 3.11 0.70 1.32 1.93 1.03 11 4.36
1.23 1.30 1.33 1.37 1.38
Carborundum Universal 47 -- 209.65 12.64 22.76 15.92 2.29 1.86 0.99 1.80 0.91 11 4.27
Redington India 48 -- 84.00 19.05 0.74 6.55 0.84 8.74 46.95 2.62 0.91 10 4.80
Dr Reddy's Cipla Lupin
Ramco Cements 49 -- 549.00 12.09 26.71 23.83 2.85 0.99 1.14 1.68 0.86 28 3.71 Laboratories
Prestige Estates Projects 50 -- 157.00 27.51 6.03 14.05 1.38 1.94 3.24 2.98 1.03 18 4.78 SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
IN THE ADJACENT TABLE.
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 14 MAY 2020. SOURCE: BLOOMBERG
 smart stats
18 The Economic Times Wealth May 18-24, 2020

LAGGARDS & LEADERS

ETW FUNDS 100
BEST FUNDS TO BUILD YOUR PORTFOLIO
Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).

LAGGARDS LEADERS

ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are
-0.11 7.41
ranked on 3-year returns while debt-oriented hybrid and income funds are Taurus Largecap Equity Axis Bluechip
ranked on 1-year returns. 0.07 6.37
Principal Nifty 100 Equal Weight Canara Robeco Bluechip Equity
1.42 6.05
Franklin India Bluechip Mirae Asset Large Cap
Value Research Net Assets
RETURNS (%)
Expense 1.6 5.06
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) Baroda Large Cap SBI ETF Nifty Next 50
1.87 4.96
EQUITY: LARGE CAP
Axis Bluechip Fund  12,716.81 -19.99 -14.63 -2.99 7.17 7.41 1.98
7.17% Nippon India Large Cap Nippon India ETF Shariah BeES

Canara Robeco Bluechip Equity Fund*  418.00 -17.94 -11.96 -1.69 4.01 6.37 2.42 THE 3-YEAR
HDFC Index Fund  1,177.38 -22.86 -20.42 -13.30 2.64 4.18 0.30
RETURN
Tata Index Sensex Fund*  23.61 -22.52 -20.11 -13.00 2.63 3.82 0.46
OF AXIS
BLUECHIP IS
Equity: Multi-cap 5-year returns
Sundaram Select Focus Fund*  932.85 -20.73 -16.75 -9.04 2.47 4.92 2.33 THE HIGHEST
UTI Nifty Index Fund*  2,097.08 -22.96 -20.81 -15.14 0.92 3.58 0.17 IN ITS -1.72 7.79
Edelweiss Large Cap Fund  165.33 -22.78 -19.09 -12.05 0.72 3.32 2.44 CATEGORY. Nippon India Multi Cap Axis Focused 25

Motilal Oswal Focused 25 Fund * 1,153.47 -18.92 -14.63 -2.62 0.71 4.83 2.27
-1.09 7.68
Mirae Asset Large Cap Fund *  15,347.16 -22.67 -20.21 -13.84 0.47 6.05 1.65
Nippon India Retirement Parag Parikh Long Term Equity
ICICI Prudential Bluechip Fund*  21,820.93 -21.60 -19.19 -13.92 -0.29 4.00 2.05
Indiabulls Bluechip Fund*  127.95 -23.80 -21.59 -14.87 -1.73 4.06 2.43 -0.8 7.54
Taurus Starshare SBI Focused Equity
EQUITY: LARGE & MIDCAP 0.07 7.13
Invesco India Growth Opportunities Fund*  2,282.43 -22.63 -18.84 -10.12 1.62 5.05 1.93 1.62% HDFC Focused 30 Tata Retirement Savings
Mirae Asset Emerging Bluechip Fund*  8,838.98 -20.91 -16.15 -6.92 1.03 10.28 1.73 THE 3-YEAR
Kotak Equity Opportunities Fund  2,980.18 -22.33 -16.27 -8.85 -0.95 5.41 2.10 RETURN OF 0.52 6.52
INVESCO IN- LIC MF Multicap IIFL Focused Equity
Canara Robeco Emerging Equities Fund  4,845.74 -21.98 -13.32 -9.57 -1.36 7.70 1.90
DIA GROWTH
LIC MF Large & Mid Cap Fund*  594.43 -24.81 -19.12 -9.25 -1.56 5.59 2.45 OPPORTUNI-
Sundaram Large and Mid Cap Fund*  1,012.99 -27.67 -24.66 -16.03 -1.61 4.53 2.09 TIES FUND IS
DSP Equity Opportunities Fund  4,439.07 -23.54 -19.22 -11.23 -2.23 5.24 1.96 THE HIGHEST
IN ITS
Equity: Mid-cap 3-year returns
Principal Emerging Bluechip Fund  1,822.03 -22.19 -15.06 -9.54 -2.25 5.85 2.18
CATEGORY.
-11 6.78
EQUITY: MULTI CAP
Aditya Birla Sun Life Mid Cap Axis Midcap Fund
Parag Parikh Long Term Equity Fund  2,925.43 -14.51 -8.20 -1.64 6.37 7.68 2.09
SBI Focused Equity Fund*  7,967.80 -21.93 -14.61 -8.14 4.59 7.54 1.80 -10.06 0.13
Canara Robeco Equity Diversified Fund  1,896.90 -19.04 -12.03 -5.16 3.24 5.61 2.25 Motilal Oswal Midcap 100 Exchange Quant Mid Cap Fund
Axis Focused 25 Fund  9,493.38 -23.99 -18.54 -6.10 2.84 7.79 1.73 -9.61 -2.11
IIFL Focused Equity Fund  785.87 -23.31 -15.58 -3.88 2.69 6.52 2.30
Sundaram Mid Cap DSP Midcap
Tata Retirement Savings Fund  689.21 -19.00 -15.56 -6.12 0.88 7.13 3.77
Kotak Standard Multicap Fund  26,049.43 -23.28 -19.88 -13.40 -0.97 5.79 1.70
-9 -2.75
Edelweiss Multi Cap Fund  488.67 -23.94 -19.47 -14.60 -1.43 4.45 2.46 SBI Magnum Midcap Tata Midcap Growth
JM Multicap Fund  118.78 -24.64 -21.90 -11.72 -1.48 4.72 — -8.36 -3.3
SBI Magnum Multicap Fund*  7,912.14 -24.36 -21.53 -15.33 -1.96 4.75 1.86 IDBI Midcap Edelweiss Mid Cap
Motilal Oswal Multicap 35 Fund*  10,236.93 -25.46 -22.66 -16.74 -4.42 4.66 1.18

EQUITY: MID CAP

Axis Midcap Fund  5,098.37 -17.25 -10.15 1.67 6.78 7.18 1.94 6.78% Equity: Small-cap 3-year returns
DSP Midcap Fund  6,487.64 -19.50 -11.89 -4.99 -2.11 7.30 1.92 THE 3-YEAR
RETURN OF -16.33 1.52
Kotak Emerging Equity Fund  5,911.85 -26.66 -18.38 -12.24 -4.34 4.94 1.92 AXIS MID- ABSL Small Cap Axis Small Cap
L&T Midcap Fund  5,366.51 -23.61 -16.74 -13.86 -5.06 5.48 1.98 CAP FUND IS
THE HIGH- -16.17 0.57
EQUITY: SMALL CAP EST IN ITS Sundaram Small Cap SBI Small Cap
CATEGORY.
Axis Small Cap Fund  2,169.10 -26.87 -17.39 -4.12 1.52 6.56 2.23 -13.62 -7.05
SBI Small Cap Fund*  3,280.30 -23.83 -18.42 -11.15 0.57 7.97 2.25
HSBC Small Cap Equity Nippon India Small
Nippon India Small Cap Fund*  6,994.88 -27.64 -21.37 -21.07 -7.05 5.28 2.21
L&T Emerging Businesses Fund  4,267.86 -30.79 -27.87 -29.69 -11.05 3.41 2.08
-12.86 -7.36
Franklin India Smaller Companies Union Small Cap
EQUITY: VALUE ORIENTED
-11.83 -8.49
Kotak India EQ Contra Fund  726.10 -24.31 -20.64 -15.45 1.15 4.20 2.49

DSP Small Cap Kotak Small Cap
Invesco India Contra Fund* 4,273.93 -21.40 -15.30 -10.64 1.13 6.36 2.10
Tata Equity PE Fund*  4,018.95 -20.61 -19.41 -14.10 -3.98 4.81 2.67
L&T India Value Fund  5,709.96 -25.12 -20.88 -18.26 -6.68 3.68 1.93
Hybrid: Aggressive 5-year returns
EQUITY: ELSS
Axis Long Term Equity Fund  19,632.01 -22.63 -17.13 -5.05 3.85 6.01 1.72 3.85% -1.69 6.92
Canara Robeco Equity Tax Saver Fund*  940.59 -19.37 -11.95 -4.97 3.07 5.61 2.33 THE 3-YEAR JM Equity Hybrid Canara Robeco Equity Hybrid
Mirae Asset Tax Saver Fund*  3,184.25 -21.76 -18.69 -10.07 1.87 — 2.18 RETURN OF
Invesco India Tax Plan*  930.37 -21.54 -16.10 -8.13 1.39 5.32 2.44 AXIS LONG -0.48 6.23
Aditya Birla Sun Life Tax Relief 96*  9,371.50 -20.06 -14.28 -10.15 0.24 4.94 1.47
TERM EQUITY Nippon India Equity Hybrid DSP Equity & Bond
FUND IS THE
Quant Tax Plan*  8.83 -17.01 -17.86 -9.17 -1.17 6.53 2.48
HIGHEST IN 0.87 6.1
Tata India Tax Savings Fund*  1,769.58 -23.48 -19.68 -13.33 -1.28 5.63 3.20 ITS CATEGORY. PGIM India Hybrid Equity Tata Retirement Savings
DSP Tax Saver Fund  5,407.34 -22.94 -19.35 -11.04 -1.42 5.61 1.87
1.19 5.94
Kotak Tax Saver Regular Plan  1,040.28 -24.04 -18.27 -12.24 -1.76 4.37 2.29
Franklin India Life Stage Principal Hybrid Equity
JM Tax Gain Fund  31.80 -26.94 -22.92 -13.46 -1.95 3.94 —
Motilal Oswal Long Term Equity Fund*  1,411.09 -26.81 -22.30 -12.30 -3.00 6.64 2.20 1.57 5.69
LIC MF Equity Hybrid SBI Equity Hybrid
ANNUALISED RETURNS IN % AS ON 13 MAY 2020.
 smart stats
The Economic Times Wealth May 18-24, 2020 19

ETW FUNDS 100 Top 5 SIPs

Value Research
Fund Rating
Net Assets
(` Cr) 3-Month 6-Month
RETURNS (%)
1-Year 3-Year 5-Year
Expense
Ratio
1 Top 5 equity schemes based
HYBRID: EQUITY SAVINGS on 10-year SIP returns
Edelweiss Equity Savings Fund  83.73 -3.94 -1.79 2.76 5.40 6.03 1.74 SBI Small Cap
Kotak Equity Savings Fund  1491.74 -7.11 -4.95 -0.11 4.50 5.77 2.15
15.02
Axis Equity Saver Fund  700.38 -10.55 -7.93 -2.77 3.32 — 2.39
Canara Robeco Emerging Equities
ICICI Prudential Equity Savings Fund*  1241.95 -11.34 -8.52 -3.29 2.68 5.28 1.33
13.95
HYBRID: AGGRESSIVE (EQUITY-ORIENTED)
Canara Robeco Equity Hybrid Fund*  2,912.43 -13.22 -7.78 -0.81 3.73 6.92 2.02 3.73% Axis Long Term Equity
SBI Equity Hybrid Fund*  29,105.88 -17.41 -12.46 -5.00 3.63 5.69 1.80 THE 3-YEAR 12.42
Mirae Asset Hybrid Equity Fund*  3,314.23 -15.38 -12.84 -6.67 2.69 — 1.90 RETURN OF
CANARA Principal Emerging Bluechip
Tata Retirement Savings Fund  1,047.69 -15.75 -12.37 -5.42 1.20 6.10 2.43
ROBECO EQ- 11.85
DSP Equity & Bond Fund  5,538.45 -18.13 -12.14 -2.75 1.09 6.23 1.90
UITY IS THE
HDFC Retirement Savings Fund  367.19 -16.86 -13.30 -9.88 0.57 — 2.63 HIGHEST DSP Midcap
HDFC Children's Gift Fund  2,776.99 -17.68 -14.34 -9.99 0.29 4.98 2.13 IN ITS
CATEGORY. 11.33
Principal Hybrid Equity Fund  1,087.56 -16.29 -13.19 -11.57 0.12 5.94 2.24
ICICI Prudential Equity & Debt Fund*  17,696.29 -17.60 -15.01 -11.44 -0.37 4.96 1.82 SIP: SYSTEMATIC % ANNUALISED RETURNS
INVESTMENT PLAN AS ON 13 MAY 2020
HYBRID: CONSERVATIVE (DEBT-ORIENTED)
Baroda Conservative Hybrid Fund*  22.10 0.78 3.64 11.12 7.36 7.29 2.08
Top 5 MIPs
Kotak Debt Hybrid Fund
Tata Retirement Savings Fund


236.39
133.22
-5.04
-3.55
-1.80
-0.77
5.19
5.16
4.32
4.57
6.91
6.88
2.23
2.94 2 Top 5 MIP schemes based on
ICICI Prudential Regular Savings Fund*  1,581.24 -4.79 -2.04 3.54 5.76 7.71 1.91
Indiabulls Savings Income Fund*  24.56 -3.31 -2.05 1.71 6.61 — 2.00 3-year SWP returns
DEBT: MEDIUM- TO LONG-TERM Indiabulls Savings Income
Nippon India Income Fund*  305.89 3.45 6.69 15.09 8.61 8.66 1.62
IDFC Bond Fund Income Plan  670.57 3.56 6.93 14.92 8.06 8.61 1.92 15.09% 7.02
SBI Magnum Income Fund*  1,292.48 1.55 6.57 13.69 7.94 8.77 1.46 THE 1-YEAR Baroda Conservative Hybrid
ICICI Prudential Bond Fund*  3,153.22 1.88 5.18 12.35 7.80 8.35 1.08 RETURN OF
6.65
NIPPON INDIA
DEBT: MEDIUM-TERM INCOME FUND ICICI Prudential Regular Savings
SBI Magnum Medium Duration Fund*  3,192.04 1.59 5.44 12.17 8.45 9.19 1.22 IS THE HIGH-
EST IN ITS 5.05
IDFC Bond Fund Medium Term Plan  2,807.92 2.43 5.09 11.41 7.72 8.06 1.43
CATEGORY. Canara Robeco Conservative Hybrid
Indiabulls Income Fund*  30.33 2.47 4.54 9.14 8.20 7.99 0.90
HDFC Medium Term Debt Fund  1,134.93 -0.61 2.77 7.94 6.63 7.60 1.29 4.92
DEBT: SHORT-TERM LIC MF Debt Hybrid
L&T Short Term Bond Fund  4,421.96 2.51 4.69 10.50 7.91 7.97 0.75 4.63
Axis Short Term Fund  5,560.05 1.76 4.28 10.31 7.77 8.07 0.95
SWP: SYSTEMATIC % ANNUALISED RETURNS
HDFC Short Term Debt Fund  11,000.38 1.40 4.25 10.13 8.01 8.25 0.39
WITHDRAWAL PLAN AS ON 13 MAY 2020
IDFC Bond Fund Short Term Plan  11,459.35 1.72 4.08 10.12 7.78 7.94 0.80

DEBT: DYNAMIC BOND

16.15%
Mid & Small Cap exposure
IDFC Dynamic Bond Fund  2,030.79 4.03 7.90 16.15 8.62 9.05 1.80
SBI Dynamic Bond Fund*
Quantum Dynamic Bond Fund*


1,352.43
60.58
3.42
2.76
7.09
6.98
15.94
13.69
8.69
8.17
9.33
—
1.65
0.68
THE 1-YEAR
RETURN OF
IDFC DYNAMIC
3 of Multi Cap funds
Axis Dynamic Bond Fund  488.53 2.23 6.70 13.68 8.28 8.69 0.65

BOND FUND IS
Edelweiss Dynamic Bond Fund 54.18 2.32 4.67 12.26 8.13 7.87 0.99
THE HIGH-
PGIM India Dynamic Bond Fund  43.61 1.72 5.03 12.23 8.23 8.67 1.75 EST IN ITS 63.97
ICICI Prudential All Seasons Bond Fund*  3,014.13 1.90 5.90 11.89 8.22 9.28 1.34 CATEGORY. 56.17 55.84 55.71 52.53
Kotak Dynamic Bond Fund  1,076.06 1.57 4.79 11.85 8.73 9.40 1.08

DEBT: CORPORATE BOND

HDFC Corporate Bond Fund  14,518.19 2.19 5.05 11.19 8.39 8.70 0.50
Aditya Birla Sun Life Corporate Bond Fund*  17,647.81 2.51 5.01 10.73 8.36 8.65 0.45
ICICI Prudential Corporate Bond Fund*  11,860.11 1.84 4.37 10.21 7.90 8.30 0.56 Expense as on 30 April 2020
Kotak Corporate Bond Fund  4,031.53 1.45 3.63 9.31 8.08 8.27 0.60 *Expense as on before 30 Quant Invesco ABSL Bal Aditya Nippon
April 2020 Active India Bhavishya Birla Sun India
Franklin India Corporate Debt Fund*  1,071.73 -0.89 2.53 8.29 7.63 8.08 0.92
Returns as on 13 May 2020 Multi- Yojna Life Re- Multi Cap
Assets as on 30 April 2020 cap tirement
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Rating as on 30 April 2020
Did not find your fund here? % OF ASSETS AS ON 30 APRIL 2020
Log on to www.wealth.economictimes.com for an exhaustive list.

Methodology
The Top 100 includes only those funds that have a 5- or
4-star rating from Value Research. The rating is determined
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
4 Debt: Low duration
by subtracting a fund’s risk score from its return score.
The result is assigned stars according to the following
Multi-cap: Mostly invested in large- and mid-cap
companies. FUND 0.55 0.55
distribution:

  Top 10%

Mid-cap: Mostly invested in mid-cap companies.
Small-cap: Mostly invested in small-cap companies.
RAISER 0.49 0.50

0.38
  Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered

4.5%
  Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
  Next 22.5% 100 listing) Income: Average maturity varies according to objective.
  Bottom 10% Gilt: Medium- and long-term; invest in gilt securities.
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more of the total AUM of
less than three years old have been excluded. This ensures than 60%.
equity funds was UTI Treas- IDFC Low ICICI Canara DSP Low
that all the funds have existed long enough to be tracked for Debt-oriented aggressive: Average equity exposure Pru-
in cash and cash ury Ad- Duration Robeco Duration
consistency of performance. Given the focus on long-term between 25-60%. dential Savings
vantage
investing, liquid funds, short-term funds and FMPs are not equivalents in April Savings
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure
less than 25%. 2020 as compared to
the growth option of funds that reinvest returns instead of
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity 3.4% in April 2019.
and derivatives. % AS ON 31 MAR 2020
Despite these rigorous filters, the list includes 2/3 funds of % EXPENSE RATIO IS CHARGED ANNUALLY.
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per METHODOLOGY OF TOP 100 FUNDS ON
The fund categories are: market conditions. WWW.WEALTH.ECONOMICTIMES.COM
 loans and deposits
20 The Economic Times Wealth May 18-24, 2020

LOANS & DEPOSITS

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

Top five bank FDs

TENURE: 1 YEAR
Interest rate (%)
compounded qtrly
What `10,000
will grow to
HOME LOAN RATES
With effect from 1 October, all banks have made the transition to external
Ujjivan Small Finance Bank 7.50 10,771
benchmarks for pricing new home loans. Most banks have picked the RBI
IDFC First Bank 7.25 10,745
RBL Bank 7.20 10,740
repo rate as the external benchmark.
Indusind Bank
AU Small Finance Bank
7.00
6.75
10,719
10,692
REPO RATE: 4.40%
FOR SALARIED FOR SELF EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
Ujjivan Small Finance Bank 7.50 11,602 SBI Term Loan 7.05 7.20 7.55 7.35 7.70 1 April 2020
IDFC First Bank 7.25 11,545
Punjab National Bank 7.05 7.20 7.80 7.20 7.80 1 April 2020
RBL Bank 7.25 11,545
Bank of India 7.25 7.25 7.55 7.25 8.15 1 April 2020
AU Small Finance Bank 7.25 11,545
DCB Bank 7.20 11,534 Central Bank of India 7.25 7.25 7.35 7.25 7.35 1 April 2020

TENURE: 3 YEARS UCO Bank 7.30 7.30 7.40 7.30 7.40 28 Mar 2020
AU Small Finance Bank 7.53 12,508 Punjab & Sind Bank 7.30 7.30 7.65 7.30 7.65 16 April 2020
RBL Bank 7.50 12,497 Canara Bank 7.30 7.35 9.30 7.35 9.30 7 April 2020
DCB Bank 7.35 12,442
IDFC First Bank 7.40 7.40 11.40 7.40 11.40
IDFC First Bank 7.25 12,406
SBI Max Gain 7.05 7.45 7.80 7.60 7.95 1 April 2020
Ujjivan Small Finance Bank 7.25 12,406
Indian Overseas Bank 7.25 7.45 7.70 7.45 7.70 14 April 2020
TENURE: 5 YEARS
DCB Bank 7.35 14,393 Indian Bank 7.20 7.55 7.85 7.60 7.90 1 April 2020
IDFC First Bank 7.25 14,323 J & K Bank 7.60 7.70 8.00 7.70 8.00 28 Mar 2020
AU Small Finance Bank 7.25 14,323 Union Bank of India 7.20 8.05 8.35 8.05 8.35 1 April 2020
RBL Bank 7.15 14,252
ICICI Bank 8.10 8.10 9.10 8.35 9.20 1 April 2020
Ujjivan Small Finance Bank 6.75 13,975
Karur Vysya Bank 7.60 8.20 10.05 8.20 10.05 1 April 2020
Bank of Maharashtra 7.45 8.20 9.00 8.45 9.35 7 April 2020
Kotak Mahindra Bank 8.20 8.20 9.15 8.30 9.25 16 April 2020
Top five senior citizen bank FDs
Interest rate (%) What `10,000
Bank of Baroda 7.25 8.25 8.50 8.25 8.50 28 Mar 2020
TENURE: 1 YEAR compounded qtrly will grow to
IDBI Bank 7.80 8.25 8.60 8.45 9.00 12 April 2020
Ujjivan Small Finance Bank 8.00 10,824
Dhanlaxmi Bank 7.93 8.25 8.90 8.75 9.40 5 May 2020
IDFC First Bank 7.75 10,798
RBL Bank 7.70 10,793 Federal Bank 8.35 8.35 8.45 8.40 8.50 16 April 2020
Indusind Bank 7.50 10,771
AU Small Finance Bank 7.25 10,745

TENURE: 2 YEARS Your EMI for a loan of `1 lakh

Ujjivan Small Finance Bank 8.00 11,717 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
IDFC First Bank 7.75 11,659
RBL Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
AU Small Finance Bank 7.75 11,659
@ 10% 2,125 1,322 1,075 965 909
DCB Bank 7.70 11,648

TENURE: 3 YEARS @ 12% 2,224 1,435 1,200 1,101 1,053

AU Small Finance Bank 8.03 12,694
RBL Bank 8.00 12,682
@ 15% 2,379 1,613 1,400 1,317 1,281
DCB Bank 7.85 12,627 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
IDFC First Bank 7.75 12,590
Ujjivan Small Finance Bank 7.75 12,590

TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits

DCB Bank 7.85 14,751

Sukanya Samriddhi Yojana 7.60 250 1.50 lakh One account per girl child 80C
IDFC First Bank 7.75 14,678
AU Small Finance Bank 7.75 14,678 Senior Citizens' Savings Scheme 7.40 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
RBL Bank 7.65 14,607
Public Provident Fund 7.10 500 1.50 lakh p.a. 15-year tenure, tax-free returns 80C
Ujjivan Small Finance Bank 7.25 14,323

Kisan Vikas Patra 6.90 1,000 No limit Can be encashed after 2.5 years Nil

Top five tax-saving bank FDs 5-year NSC VIII Issue 6.80 100 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to Time deposit 5.50-6.70 200 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.35 14,393
Single 4.5 lakh 5-year tenure, monthly returns Nil
IDFC First Bank 7.25 14,323 Post Office Monthly Income
6.60 1,500
Scheme
AU Small Finance Bank 7.25 14,323 Joint 9 lakh 5-year tenure, monthly returns Nil
RBL Bank 7.15 14,252
Recurring deposits 5.80 10 No limit 5-year tenure Nil
Ujjivan Small Finance Bank 6.75 13,975
Savings account 4.00 20 No limit `10,000 interest tax-free Nil
ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 14 May 2020 # Benefit available only for 5-year deposit
 market watch
The Economic Times Wealth May 18-24, 2020 21

HOW YOUR INVESTMENTS

PERFORMED THIS WEEK
This weekly tracker keeps you updated on the benchmark stock index, bond yields, forex movements and CPI-Industrial workers.
It also tracks the changes in the past one year to give investors an idea how their investments performed over a longer period.

Sensex 10-yr bond yield (%) USD-INR CPI-Industrial workers (%)

4.5 4.9 4.5

Aug '19

Mar '20
37,319 31,123 7.38 6.06 70.42 75.56

Sep '19

Oct '19
3.2
14 MAY 2019 14 MAY 2019 14 MAY 2019 2.1 2.0
14 MAY 2020 14 MAY 2020 14 MAY 2020 1.3
0.1
` PER DOLL AR

Apr '19

May '19

Jun '19

Jul '19

Nov '19

Jan '20

Feb '20
Dec '19
-1.4
-4.6
-6.6

-16.7
CHANGE
X 1 WEEK -1.02% 1 WEEK 2.90 (bps) 1 WEEK -0.37% LATEST -16.70%
X 1 YEAR -16.60% 1 YEAR -131.90 (bps) 1 YEAR 7.30% 1-YEAR AVG -0.60%
Markets continued to remain under pressure Bond yields increased marginally Rupee gained due to the increased IIP contracted by -16.7% in March 2020
due to heavy selling in IT stocks, Fed's on the expectations that the stimulus volatility in the dollar index and due to the weak performance by the
expectation of grim US economic outlook, and package could lead to an increase in positive expectations from the mining, manufacturing and electricity
investors weak response to the first tranche of government borrowings. government's rescue package. sectors amid nationwide lockdown.
government's 'Atma Nirbhar Bharat' package.

PENNY STOCKS UPDATE

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

Top price gainers Top volume gainers

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

Siti Networks 1.81 25.69 158.57 1.84 -64.88 157.85 Prismx Global Ventures 8.46 -9.32 -47.29 0.01 16,558.25 24.02
Opto Circuits (India) 5.90 27.16 152.14 3.83 226.72 177.37 DB Int. Stock Brokers 8.05 -9.65 -14.36 - 12,050.00 28.18
Sanwaria Consumer 3.55 26.79 151.77 8.87 225.84 261.32 Uttam Value Steels 0.23 9.52 21.05 30.93 4,761.22 151.99
Educomp Solutions 2.95 26.61 145.83 0.37 208.06 36.12 KSS 0.19 -5.00 - 12.41 3,784.23 39.51
Arcotech 2.20 21.55 115.69 0.09 -17.68 23.10 Yamini Investment 0.20 5.26 5.26 0.75 3,757.87 10.51
Vikas Ecotech 2.65 9.50 115.45 3.20 45.82 80.98 Beardsell 9.00 -0.44 33.33 0.03 3,022.04 25.29
SE Power 3.66 -5.91 114.04 0.44 1,126.92 14.86 Vikas Proppant 2.74 -8.36 -47.81 23.61 2,541.01 138.70
Vikas Multicorp 2.09 5.56 106.93 1.89 32.23 138.67 ISMT 3.45 -12.66 16.95 1.62 1,866.42 50.54
Hindustan Fluorocarbons 6.40 13.27 100.00 0.03 58.26 12.54 Maximaa Systems 3.00 -1.64 33.33 0.03 1,432.45 17.40
Atlanta 6.46 -5.00 86.71 0.03 -13.06 52.65 Transcorp International 6.88 -2.55 -31.20 0.09 1,362.73 21.88

Top price losers Top volume losers

Vikas Proppant & Granite 2.74 -8.36 -47.81 23.61 2,541.01 138.70 JMT Auto 2.39 18.32 30.60 1.17 -70.05 120.41
PMC Fincorp 0.22 10.00 -33.33 2.34 -38.14 11.20 Siti Networks 1.81 25.69 158.57 1.84 -64.88 157.85
Vikas WSP 4.03 -13.33 -28.04 1.53 -2.81 82.37 SREI Infra. Finance 4.05 7.71 2.27 1.43 -63.78 203.75
Shiva Cement 8.16 -6.21 -27.27 1.39 -12.57 159.12 Jaiprakash Power Vent. 0.89 21.92 11.25 19.99 -56.69 608.80
Reliance Naval & Engin. 1.03 -0.96 -21.37 10.52 80.29 75.97 Toyam Industries 2.60 8.79 4.00 1.03 -55.54 55.25
CG Power 6.50 -12.04 -20.92 1.96 -8.45 407.39 Shree Renuka Sugars 4.80 -3.03 -8.40 1.10 -50.97 920.06
Syncom Formulations 0.91 -4.21 -19.47 18.18 0.59 71.04 Dish TV (I) 4.77 -0.21 5.76 5.57 -50.57 878.30
Gennex Laboratories 2.66 -2.92 -19.15 2.30 82.76 33.65 Hindustan Construction 4.79 5.74 0.63 3.97 -46.21 724.73
MTNL 7.00 2.04 -17.36 1.14 -19.38 441.00 JCT 1.39 25.23 28.70 2.10 -45.30 116.54
Trident 4.75 0.85 -12.68 6.57 3.91 2,420.60 PMC Fincorp 0.22 10.00 -33.33 2.34 -38.14 11.20

THE 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 14 MAY 2020. SOURCE: ETIG DATABASE AND BLOOMBERG.
 pick of the week
22 The Economic Times Wealth May 18-24, 2020

GSPL: Strong player, good value

The Covid-19 induced price correction has made this the best time to invest in players like GSPL.

G
ujarat State Petronet Limited (GSPL), the second international LNG prices and increased demand. However,
largest gas transmission company in India, has more terminals, like Swan Energy’s LNG terminal that is
Fundamentals
reacted negatively to Covid-19 fears. Though the expected to start in April 2021, are coming up and this should CONSENSUS
ACTUAL
ESTIMATE
gas transmission industry won’t be affected by help GSPL in increasing its transmission volumes.
2017-18 2018-19 2019-20 2020-21
the pandemic disruptions, its transmission vol- City gas distribution is going to be another driver for GSPL’s
Revenue (` cr) 7,213.26 9,307.67 11,439.75 12,370.90
ume may come down due to disturbances in user industries. volume growth in the coming years. In the last round, sev-
However, analysts believe that this negative impact will be eral new geographical areas have been allocated in Gujarat. Ebitda (` cr) 2,063.45 2,541.73 3,111.60 3,243.23
limited for GSPL. Companies in these new areas have to do groundwork before Net profit (` cr) 754.98 999.65 1,482.93 1,486.30
Resumption of operations by starting the distribution of CNG EPS (`) 13.38 17.72 26.78 27.05
user industries, like ceramic, and piped natural gas (PNG) to DIVIDEND
fertiliser, chemical, etc. after Analysts’ views the consumers. In addition to in- Valuations PBV PE YIELD (%)

partial lifting of lockdown re- creasing its volumes, increased Gujarat State Petronet 3.13 6.62 1.09
strictions, is a positive factor for 27 gas consumption by its city gas
GSPL. Besides, negative impact 3 Buy distribution subsidiary, Gujarat
GAIL (India) 0.84 6.20 4.17

Sell Indraprastha Gas 7.49 27.25 0.52

of reduced gas consumption by Gas, will also increase its mar-
Adani Gas 10.61 26.78 0.24
fertiliser plants during lockdown ket valuation.
Mahanagar Gas 3.71 11.71 2.22
is limited as they usually go for Reasonable valuation is an-
maintenance shutdowns in April other factor attracting analysts
before ramping up production 3 to this counter. Though the earn-
Latest brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
for the upcoming crop season. Hold ings for 2020-21 is expected to re-
11 May 20 Elara Securities India Buy 315
Though power consumption is main flat, current trailing PE
low at present, improvement in ratio of 6.63 shows that this flat 6 May 20 BOB Capital Markets Buy 275
industrial activity will push up growth is already priced in. 29 Apr 20 HDFC Research Add 209
the power demand which in turn GSPL will be able to minimise the negative impact of 29 Apr 20 Reliance Securities Buy 286
Covid-19 disruptions with the resumption of operations by
will increase gas demand from Selection Methodology: We 29 Apr 20 Nirmal Bang Inst. Buy 273
user industries after partial lifting of lockdown restrictions.
gas-based power plants. Reasonable valuation is another factor which has made the pick up the stock that has shown
Eco-friendly gas based power company a favourite of analysts. maximum increase in ‘consen- Relative performance 94.09
plants are increasing in numbers sus analyst rating’ during the 100 MARKET PRICE: `183.30
and this is expected to be the main transmission growth last one month. Consensus rating is arrived at by averaging 103.98
driver for GSPL in medium to long term, (3-5 years). Low all analyst recommendations after attributing weights to each
price of liquified natural gas (LNG), which is trading close of them (ie 5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 1 for
to a 10-year low, is another factor pushing the gas based pow- strong sell) and any improvement in consensus analyst rating
er plants. Since GSPL has wide network, it should be able indicates that the analysts are getting bullish on the stock. To
SENSEX
to serve the existing as well as upcoming gas based power make sure that we pick only companies with decent analyst 83.40
plants in Gujarat. The company’s gas pipeline projects are on coverage, this search will be restricted to stocks with at least
track and the entire Mehsana - Bhatinda pipeline is expected 10 analysts covering it. You can see similar consensus analyst 14 MAY 2019 GSPL ET OIL & GAS 14 MAY 2020
to be completed by the year end. Lack of sufficient LNG termi- rating changes during the last one week in ETW 50 table. GSPL compared with ET Oil & Gas and Sensex. Stock price and index values
nals in Gujarat is the only bottleneck to benefit from the low —Narendra Nathan normalised to a base of 100. Source: ETIG and Bloomberg.

WHAT EXPERTS ADVISE

BUY *STOCK PRICES AS ON 14 MAY
RESEARCH STOCK 1-YEAR TARGET POTENTIAL
STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) UPSIDE (%)

Blue Star managed to retain its 12.5% market-share in room ACs. It has now upgraded to buy since it
Blue Star Anand Rathi Buy 470 626 33 is expected to improve further due to its business model and balance sheet-focused approach.

Though non-gold portfolio remains worrisome, Manappuram should be better off because around
Manappuram Finance IDBI Capital Buy 123 160 30 67% of its AUM is from gold loan, a segment that will do well during troubled times.

Adani Gas added 33 CNG stations in 2019-20 taking its total count to 115. Its future volume growth
Adani Gas ICICI Direct Buy 106 130 22 should also be stable because of continued strong capex along with favourable regulatory scenario.

Though Maruti will be negatively impacted in short term, it should hold the pole position in the
Maruti Suzuki Emkay Buy 5,110 6,173 21 market, owing to increasing share of petrol vehicles, focus on new products and network expansion.

Despite Covid-19 induced disturbances, Coromandel is expected to benefit from 22% higher pre-
Coromandel International Motilal Oswal Buy 616 738 20 season rainfall across India, good water storage and favorable shift in crop pattern in its market.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

ABB business model is highly sensitive to operating leverage and `320 crore revenue shortfall for 10
ABB India HDFC Sec Sell 836 755 -10 days of disruption in Mar-2020 led to sharp erosion in profitability (`110 crore contribution shortfall).
While demand for Havells' consumer portfolio is expected to bounce back faster, B2B segments will
Havells India Prabhudas Lilladher Reduce 501 485 -3 remain a near term drag due to longer recovery cycle in industrial products.
 mutual funds
The Economic Times Wealth May 18-24, 2020 23

Don’t dip into retirement PORTFOLIO

DOCTOR

savings for kids’ education Not many

ARINDAM
investors
know
Vijaya and Deepak Tyagi are saving for their kids’ goals and retirement. Here’s the doctor’s advice: whether
they have
1 2 3 4
FIRST CHILD’S FIRST CHILD’S HIGHER FIRST CHILD’S SECOND CHILD’S
invested in
GOALS

EDUCATION: 6 yrs EDUCATION: 10 yrs MARRIAGE: 14 yrs EDUCATION: 17 yrs the right
PRESENT COST: `12 lakh PRESENT COST: `50 lakh PRESENT COST: `28 lakh PRESENT COST: `12 lakh funds and if their
FUTURE COST: `21.25 lakh TOTAL COST: `1.3 crore FUTURE COST: `72.2 lakh FUTURE COST: `60.1 lakh fund portfolio is on
track. The Portfolio
5 6 7 Doctor assesses the
SECOND CHILD’S HIGHER EDUCATION: 21 yrs SECOND CHILD’S MARRIAGE: 25 yrs RETIREMENT INCOME: 21 yrs
health of the fund
CURRENT NEED: `50 lakh CURRENT NEED: `28 lakh CURRENT NEED: `1.41 crore (`70,000 per month)
CORPUS REQUIRED: `3.7 crore CORPUS REQUIRED: `1.5 crore CORPUS REQUIRED: `5.8 crore
portfolio, examines the
schemes and their
suitability with regard to
PORTFOLIO FUND NAME AMOUNT
INVESTED (`)
EXISTING
SIP (`) RECOMMENDED ACTION NEW SIP
(`)
the goals and, if
CHECK-UP required, recommends
Investing in IDBI Nifty Index 18,587 0 Shift corpus to multi-cap fund SBI Focused Equity. 0 corrective measures. The
mutual funds for advice given is based on
Switch to multi-cap SBI Focused Equity. Hike SIP
the past 7-8 years. 1 SBI Bluechip 81,406 5,000 amount by 10% every year. 5,000
Hold too many
the performance of the
funds. Need to HDFC Hybrid Equity 2,24,350
Fund is down but holds promise. Increase SIPs to
2,000 `6,000 and hike by 10% every year. 6,000
funds, the risk profile of
streamline the investor as well as
portfolio.
ICICI Pru Bluechip 2,61,282
Switch to multi-cap ICICI Pru Focused Equity.
4,000 Increase SIP to `12,000 and hike 10% every year. 12,000 his financial goals.
Goals are
ambitious. Must
increase monthly Shift corpus to multi-cap ICICI Pru Focused Equity to
Franklin India Bluechip 1,05,737 0 consolidate portfolio. 0 Assumptions used
investment by
`24,000. in the calculations
2 ICICI Pru US Bluechip Equity 25,967
Fund offers global diversification. Increase SIPs to
1,500 `5,000 and hike by 10% every year. 5,000
All SIPs will also INFLATION
have to be hiked Education For all
by 10% every year Sukanya Samridhhi Account 2,22,000 7,000 Keep contributing to this small savings scheme and 7,000 expenses other goals
to reach goals. to the life insurance policy. Use the maturity
LIC policy NA 2,200 proceeds for education expenses. 2,200
Some goals can be
downsized if not
10% 7%
Fund has slipped. Shift corpus systematically to
possible to IDFC Multicap 2,17,659 0 0
increase SIPs.
Mirae Asset Hybrid Equity. RETURNS
Equity funds Debt options
Increase SIPs to `3,000 in this outperforming large
Note from 3 Mirae Asset Emerging Bluechip 15,578 2,500 and midcap fund. Hike by 10% every year. 3,000
the doctor
Continue SIPs in this hybrid fund and hike by 10%
12% 8%
Take loan for Mirae Asset Hybrid Equity 10,999 5,000 every year. 5,000
children’s
education but
Switch to Axis Bluechip and start SIPs of `4,000. Hike
keep retirement 4 Nippon India Equity Hybrid 1,38,793 0 by 10% every year. 4,000 PORTFOLIOS
savings intact. ANALYSED BY
Switch to multicap scheme Aditya Birla SL Equity. RAJ KHOSLA,
Avoid using Aditya Birla SL Frontline Equity 90,454 8,000 Hike SIPs by 10% every year. 8,000
Managing Director
insurance as an
and Founder,
investment. Fund has underperformed. Switch to Axis Focused 25 MyMoneyMantra
Returns from 5 Nippon India Large Cap 1,43,217 3,500 and hike SIP by 10% every year. 3,500
plans are too low.
Both husband HDFC Children's Gift 34,595
Continue SIPs in this stable hybrid fund and hike by
3,000 10% every year. 3,000 WRITE
and wife should TO US
buy term covers Canara Robeco Emerging
of at least `1
6
Equities
0
Start SIPs of `4000 in Canara Robeco Emerging
0 Equities. Hike amount by 10% every year. 4,000 FOR HELP
crore each. If you want your portfolio examined,
write to etwealth@timesgroup.com
Review Mirae Asset Large Cap 15,520 7,000 7,000 with “Portfolio Doctor” as the subject.
Continue SIPs in this outperforming large-cap and
investments and ELSS fund. Hike by 10% every year. Mention the following information:
rebalance at least Axis Long Term Equity 1,71,950 4,000 4,000  Names of the funds you hold.
once in a year. 7  Current value of the investment.
 If you have SIPs running in any
NPS 76,903 5,576 5,576
Reduce risk when Keep contributing; hike by 5% every year. Don't of them.
goal is near so  The financial goals for which you
withdraw before retirement.
Provident Fund and PPF 19,10,500 16,052 16,052 invested.
that you don’t  How much you need for each
miss the target. financial goal.
The goals can be reached using the mutual
TOTAL `37,65,497 `76,328 funds marked in the same colour. `1,00,328  How far away is each goal.
 your feedback & more...
24 The Economic Times Wealth May 18-24, 2020

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.

This refers to the cover story, ‘How requirement. Our exports are not
Covid is forcing Indians to rejig their picking up, even though the rupee has
goals’. There will be many stories of
misery and despair. Cash is going to
Start making do depreciated against the US dollar. Our
current account deficit is increasing. We
be king despite lower returns in bank
interest. Prudence will be supreme.
with less cannot afford to consume so much of
fuel in our country. There is no question
Discretionary spends, luxury of passing any benefits in crude oil
In reference to the cover story, ‘How Covid
holidays and renovations will be put price reductions to consumers as it
is forcing Indians too rejig their goals’,
on the back-burner. Buying a home would only make them consume more.
I think thrift will be the key word in the
will be a good idea for only a few and S. Kalyanaraman
post-Corona era. We will face huge budget
job security would be threatened.
deficits and hyper inflation. Spending a lot
There will be no improvement till the The survey, ‘How Covid has hit
on education will not help as it would not
government reduces GST to stimulate homebuyers’, was informative. Large
guarantee high paying jobs. The solution
consumption. and reputed builders who have unsold
will lie in adopting a simple lifestyle and
Hemant Pisat inventory must offer a discount of at
toning down expectations.
least 30% to induce buyers.
Vilas Save
For us retired people who have no N.H. Rao
pension, our only prayer is that our
money in the banks remain intact. In The column, ‘A higher order of
these uncertain times, one can’t help not last. Many pharma companies have the country also reveals the weakness in coexistence’, was wonderful. I am a
but be worried about one’s money. not fixed the underlying quality and pharma supply chains. There is much work regular reader of ET Wealth. I find Uma
Subbu, India compliance issues that have periodically to be done for pharma stocks to deserve out- Shashikant’s columns enlightening. Her
caught USFDA’s attention. Further, they performance. way of assessing points related to
The article, ‘Can pharma stocks have failed to substantially invest in R&D Nandkumar Venkatachary earning, saving and investing are
continue to outperform?’ provided and sooner or later, the pharma sector educative. The language is clear and
interesting insights. While pharma will revert to its usual role of imitating This refers to the column, ‘Once again, govt simple. She is a worthy teacher of
seems to have fared better than MNC products. The scarcity of medicines goes back on oil price reforms’. India has to economics. Wishing her every success.
other sectors, the good times may during the lockdown in different parts of import more than 80% of its crude oil D. Yadaiah

REALTY A well connected Delhi locality

HOT SPOT Proximity to the key job hub of Noida makes the area attractive for homebuyers.

SUPPLY BY BHK
LOCALITY SNAPSHOT
4%
LAXMI NAGAR-PATPARGANJ, DELHI 1 BHK

Established area in East Delhi having ample residential options along with good social & retail infra 2 BHK 35%
Proximity to key job hub of Noida and sound overall connectivity makes it a preferred residential area
A popular commercial centre with many electronic showrooms, coaching centres, malls and offices 3 BHK 52%
Key infra - Mayo International School, Max Super Speciality Hospital, V3S Mall, Cinepolis Cinemas, etc.
Well-connected through Vikas Marg, Delhi-Meerut Expy, Noida Link Rd and Blue & Pink Metro Lines 4 BHK 9%
Preet Vihar Consumer preference by
Laxmi Nagar PRICE RANGE VALUES budget segment (`)
Patparganj `4,700-16,800 per sq ft
6%
LOCALITY Price Rent 9% Below 50 lakh
IP Extension
Shakarpur (`/sqft) (`/month) 50 lakh-1 crore
28% 1-1.5 crore
Indraprastha 8,200-12,000 20,000-29,000 11% 1.5-2 crore
Extension 2-2.5 crore
24% 22%
Airport: 26 km Above 2.5 crore
Railway station: Laxmi Nagar 4,900-7,500 12,000-20,000
4 km Consumer preference by
Expressway: covered area (sq ft)
3 km Patparganj 8,200-12,300 18,000-26,000 11% Below 750
1 BHK 2 BHK 3 BHK 4 BHK
480 sq ft 870 sq ft 1,400 sq ft 2,350 sq ft 12% 16% 750-1,000
Shakarpur 4,700-7,100 10,000-17,000 1,000-1,250
`30
lakh (avg)
`80
lakh (avg)
1.70
`crore (avg)
3.40
`crore (avg)
20%
17% 1,250-1,500
1,500-1,750
Preet Vihar 12,300-16,800 19,000-30,000 24%
Above 1,750

Schools 16+ Hospitals 14+ Restaurants 20+ Banks 18+ Grocery Stores 17+ Petrol Pumps 10+ In dia’s No. 1 P ropert y Sit e

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reserved. RNI No.: MAHENG/2014/57046. VOLUME 07 NO. 20