THE ECONOMIC TIMES BEST CARS 2021 P2

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guest column
The Economic Times Wealth January 25-31, 2021

Does Sensex at 50,000

have any meaning?
Is it just a big number with a lot of hype around it? Not really. It does get
equity investing the attention it deserves, says Dhirendra Kumar.

DHIRENDR A KUMAR
CEO, VALUE RESE ARCH
money
I
would have thought that it goes
without saying that round numbers
of the Sensex or any other index are
meaningless but apparently they
aren’t. It looks as if the Sensex hitting
50,000 means a lot to investors. Or perhaps
it doesn’t—it’s only the people who write in
the media—social and otherwise—who are

mysteries incessantly talking about the 50,000.

For those who invest
in equities but get
a bit too influenced
by the severe ups
and downs, the
big round number
provides some
perspective that
all things pass, and
over a long period,
the story is always a
cheerful one.
There are a number of different points
that need to be made about this 50,000
business that are somewhat unrelated but
are useful to note. To begin with, larger
numbers by themselves do not have any
special meaning. The actual level of the
index is in relation to an arbitrarily chosen
day some 40-plus years ago when the level
was deemed to be 100. If a different, later
day was chosen then the number would
be lower. The Nifty’s starting point was
at a 1,000 in 1995 so it’s only at 14,000 right
now even though the two indexes move
practically in lockstep.
What’s more important to understand
is what a change in the level of the index
means. Mathematically literate investors
know that it’s percentages that matter, not
the absolute numbers. The move from 45,000
to 50,000 is 11.1% and has the exact same
significance as the move from 2,000 to 2,222
had two decades ago. Or, during the days
gone by since the beginning of October, the
Sensex’ gain of 10,000 points has exactly
the same significance as the Nifty’s gain of
2,850 points. In this time, both the indexes
gained 25%. For any serious market
watcher, that’s the number that matters.
A related issue, which will probably be
too arcane for most people will be that
graphs showing stock prices and indexes
should have log and linear scales but that’s
probably too much to expect in the mass
media. If you, as an individual investor,
understand how the power of visualisation
can help you understand what’s happening
GETTYIMAGES

in the markets then you must switch to

graphs with log scales simply because they
are proportional to percentage changes
rather than absolute changes.
So are we all convinced that the absolute
level of the Sensex does not matter? Not
quite. For while the absolute level does not
matter, I do like the fact that this big round
number gets equity investing talked about
more widely than usual. Equity investing
in India is still a niche activity and the more
‘outsiders’, including those who are on the
verge of dipping their toes in, hear about the
better and the big round number definitely
helps a lot in that. The 50,000 does make it
pretty clear that in 40 years, that number
has become 500 times bigger and once you
realise that, it’s not something that’s easy
to get out of your head, especially if you are
at all worried about how much your savings
will grow (or not) in the future.
For people who remember the big crashes
along the way, this big round number
brings home the fact that in time it all gets
left behind as the country’s economy and
businesses march along. Some 28 years ago,
in the Harshad Mehta crash, the market
was down from around 4,500 to around
2,300. How quaint and tiny those numbers
look now. Twelve years ago, it went down
from 20,000 to 8,000 and that’s far behind us.
The fact that the big falls of the past were
overhauled in short order and now seem
irrelevantly small is the most important
part of the story.
For those who should become equity
investors but are waiting to be convinced,
this is something that is worth thinking
about. Similarly, for those who invest in
equity but get a little bit too influenced
by the severe ups and downs that happen,
the big round number provides some
perspective that all things pass, and
over a long period, the story is always a
cheerful one.
Please send your feedback to
etwealth@timesgroup.com
 S P E C I A L I S S U E COVID
THE ECONOMIC TIMES SPURS A
RISE IN
INSURANCE
AWARENESS
P10
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BEST CARS 2021 Here’s a listing of cars set to be launched this year.
Pick the one that suits your style and budget. P2

This is
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 cover story
02 The Economic Times Wealth January 25-31, 2021
BEST CARS
2021 Go through the listing of cars to be launched this year
and pick the one that suits your style and budget.
GETTY IMAGES
By Riju Mehta, with
Kartikeya Singhee
T
he year 2020 began on a dismal
note for many industries, with
sales figures plummeting as
the pandemic surged through
the year. The car manufactur-
ers also registered a sharp drop in sales
in the middle of the year. According to
data by the Society of Indian Automobile
Manufacturers (SIAM), passenger vehi-
cles witnessed a 49.6%decline in domestic
sales in June 2020 compared with the
same period last year. However, surpris-
ingly, most companies ended the year on a
ET WEALTH-CARDEKHO.COM RANKING
positive note. Passenger vehicle sales rose
13.59% in December due to the pent-up de-
mand, according to SIAM.
While Maruti Suzuki India registered a
growth of 14.6% year-on-year in December,
Hyundai posted its highest ever sales for
the month at 25%, Tata Motors saw an 84%
surge, and Mahindra & Mahindra saw
a rise of 3% in passenger vehicle sales.
Buoyed by the numbers and anticipating
recovery in 2021, even luxury car compa-
nies are optimistic, with the BMW group
predicting 25-30%growth in 2021, even as
Mercedez Benz expects to double its sales
in three years.
Taking the cue from sales figures, most
car companies have lined up launches for
2021. Many of these were scheducled to
come out last year but were delayed due to
the pandemic. So, if you did not buy a car in
the festive season last year, and are plan-
ning to pick one this year, you will have
plenty of choice. Among those expected
to bring out new or overhauled cars are
Maruti (Alto, Celerio), Renault (Kiger),
Tata (HBX, Safari), Mahindra (Scorpio,
XUV500), Skoda (Kushaq, Kodiaq),
Volkswagen (Vento, Taigun) Citroen (C5
Aircross), and Jeep (Compass).
To help you in identifying the car of your
choice, ET Wealth, in collaboration with
Cardekho.com, brings to you some of the
vehicles expected to be launched this year.
For your ease, we have categorised five of
the top choices in three price bands: below
`7 lakh, between `7 lakh and `15 lakh, and
between `15 lakh and `40 lakh.
We shall tell you what to expect in each
vehicle, whether it’s the design, engine
power or specifications. In addition, we
shall provide the approximate resale value
after three years, the monthly running
cost that you are likely to bear, and the
loan EMI if you are planning to finance the
vehicle from a bank. However, since the
vehicles have not been launched yet, the
figures are based on expected prices. So,
while you may need to recalculate when

the car launches, for now you will an idea
about the likely costs you will incur.
Though you may not be able to snag big
discounts in the near future, there may be
some offers around the festive season at the
end of the year when some cars like Skoda
Rapid and Volkswagen Vento are sched-
uled to be out. If, however, you have the
car’s resale value in mind, it is a good idea
to buy at the beginning of the new year so
that you get a registration for 2022 instead
of 2021. This will stretch the value of the
car if you were to sell it in a few years.
Also, remember that it is better to buy a
car without financing as it is a depreciat-
BEST CARS BELOW `7 LAKH
Maruti Alto
ONE OF the most popular cars in India, Maruti Alto is
scheduled to get a generational update soon. Spy shots
indicate it’s larger than before and features a tall body
design. Maruti is expected to move it to the Heartect plat-
form, which should give it a spacious cabin. It should be
better equipped in features as well. Expect dual front air-
bags, ABS (anti-lock braking system) with EBD (electron-
ic brakeforce distribution), rear parking sensors, ISOFIX
(international standard for attachment points for child
safety seats in cars) child seat anchors, 7-inch touch-
screen infotainment system with Apple CarPlay, manual
AC and tilt-adjustable steering. It’s expected to get the
same 0.8-litre petrol engine, with a CNG fuel option. It
may also offer an option of the bigger 1.0-litre engine and
AMT (automated manual transmission) gearbox.
SPECIFICATIONS
Fuel type: PETROL, CNG
Engine capacity: 0.8 litre & 1 litre (petrol)
Mileage: 23 kmpl (expected)
PRICE:
`5-6.5 lakh (EXPECTED)
Expected launch: 2021
RUNNING COST
(30 km/day per month)
`3,331
LOAN EMI
(loan for 5 years,
80% financed at
9.25% interest)
`8,288
EXPECTED RESALE
(after 3 years)
Around `3.5 lakh
SPECIFICATIONS Fuel type: PETROL
Note: Picture of the older model has been used as the new model’s pictures are not available.
Note: *All prices are expected ex-showroom. Petrol price in Delhi on 19 Jan 2021: `85.2/litre. Diesel price in Delhi on 19 Jan 2021: `75.4/litre.
Calculations for running cost and loan EMI are based on expected prices, and are indicative.
ing asset, which means the vehicle’s value
will not appreciate with time. Besides, you
will be paying interest on the loan which is
not tax-deductible for salaried taxpayers.
So, plan your purchase in advance and save
for it in order to circumvent a loan. This
may be crucial for those in sectors that may
have been badly hit by the pandemic and
are likely to suffer a salary cut or a job loss.
It may be better for such people to avoid
loans or debt of any kind at this juncture.
Another important thing to calculate
before you buy a car is the actual cost of
owning it. If you use the car infrequently,
it might make more sense to hire one when
`3-4.5 lakh (EXPECTED)
Expected launch: June 2021
RUNNING COST
(30 km/day per month)
`3,331 Petrol
LOAN EMI
(loan for 5 years,
80% financed at
9.25% interest)
`5,057
EXPECTED RESALE
(after 3 years)
Around `2 lakh
Maruti Celerio
Engine capacity: 1.0 litre
& 1.2 litre
cover story
The Economic Times Wealth January 25-31, 2021 03
you need it. If, on the other hand, you need nual servicing and maintenance costs,
to travel large distances for work every parking and cleaning costs, and miscel-
day, it might be more economical to buy laneous other charges. Another big factor
one, especially if you plan to retain it for you need to consider is whether you will
more than 5-6 years. You will also need to drive the vehicle yourself or be driven by
keep in mind the current increased price a chauffeur, since the latter can signifi-
of petrol, which is around `85 per litre in cantly escalate the cost of the car. Compare
Delhi, with diesel at around `75 per litre. this with the cost of a cab, especially if
To calculate the actual cost of owning a you travel during peak hours and live in a
car, you will not only need to include the metro or tier 1 city.
running cost based on the car’s mileage If, after all financial considerations, you
and fuel prices, but also the loan EMI along have decided to go ahead and buya car, go
with the interest component. Other factors through the following pages to make the
to be considered are the annual insurance right choice depending on your budget,
premium, registration cost and taxes, an- need and taste.
PRICE:
Note: Picture of the older model has been used as the
new model’s pictures are not available.
MARUTI HAS been working
on the second-gen Celerio for
a while and it has been spotted
testing at multiple occasions.
.:
TT-
Likely to be based on Maruti’s
new Heartect platform, it
sports a completely new rI
design and looks bigger and
boxier than its predecessor.
It’s likely to get a completely
reworked cabin with more
features. It’s expected to come
DC13 FIXED DEPOSIT
with the same 1.0-litre petrol
engine (68 PS/ 90 Nm) with
the choice of a 5-speed MT
(manual transmission) and
5-speed AMT. It could also get
the option of 1.2-litre petrol
engine (83 PS/ 113 Nm) with
the same transmission op- annualised yield
Fix ed Deposit
tions. It will continue to take
on the likes of Maruti Wagon
R and Tata Tiago.
Mileage: 23 kmpl
Give a missed call on 70971 97715
(expected) Conditions apply. *Pre-tax annualised simple yield calculated
at quarterly compounding frequency for 3 year fixed deposit
at the rate of 6.75% p.a.when interest & principal are paid
at maturity. DCB Bank Limited
 cover story
04 The Economic Times Wealth January 25-31, 2021

PRICE: Tata HBX

`5-7 lakh (EXPECTED)
Expected launch: Mid-2021 TATA MOTORS debuted the HBX concept at the 2020
Auto Expo. The carmaker is now gearing up to launch
the micro-SUV soon and it has been spotted recently in
RUNNING COST production-ready form. It looks similar to the concept,
(30 km/day per month) with butch styling and a boxy silhouette. Expect it to
replicate the concept on the inside as well. Features
`4,038 should include a semi-digital instrument cluster,
free-standing touchscreen infotainment system, auto
AC and height-adjustable driver’s seat, among others.
LOAN EMI Under the hood, the HBX SUV is expected to get the
(loan for 5 years, 80% Altroz’ 1.2-litre petrol engine. It has 86 PS and 113 Nm,
financed at 9.25% mated to a 5-speed MT and may also offer a 5-speed
interest) AMT. It’s likely to take on the likes of Mahindra KUV100
NXT and Maruti Ignis.
`8,288
SPECIFICATIONS
EXPECTED RESALE Fuel type: PETROL
(after 3 years)
Engine capacity: 1.2 litre
Around `4 lakh Mileage: 19 kmpl (expected)

Renault Kiger PRICE:

KIGER IS one of the most anticipated cars, especially

`5.9-9.5 lakh (EXPECTED)
after Magnite’s launch, and will share most of its com- Expected launch: March 2021
ponents with Nissan’s hot-selling SUV. It has already
been spotted testing and looks similar to the concept,
featuring bumper-mounted headlamps and top- RUNNING COST
mounted LED DRLs. The side profile is muscular with (30 km/day per month)
flared wheel arches, while at the back it gets C-shaped `3,834
LED tail lamps, similar to those in Kwid. It is expected
to be as feature rich as the Magnite, with digital
instrument cluster, 8-inch touchscreen, air purifier
and premium sound system. It will have two petrol en- LOAN EMI
gines: 1.0-litre naturally aspirated engine with 72 PS (loan for 5 years,
and 96 Nm, and a 1.0-litre turbo petrol, with 100 PS and 80% financed at
160 Nm. Both will be mated to a 5-speed MT. 9.25% interest)
`9,117
SPECIFICATIONS
Fuel type: PETROL EXPECTED RESALE
Engine capacity: 1.0-litre naturally aspirated (after 3 years)
petrol; 1.0-litre turbocharged petrol
`4-7 lakh
Mileage: Up to 20 kmpl

PRICE: Citroen sub-4 m SUV

`6-9 lakh (EXPECTED) CITROEN IS all set to launch its debut product, the C5
Expected launch: End 2021 Aircross mid-sized SUV, and has already started work-
ing on its second product, a made-for-India highly
localised sub-4 m SUV, which has been spotted testing.
RUNNING COST Though camouflaged, it looks boxy and features sig-
(30 km/day per month) nature Citroen design elements. Up front, it gets split
`5,112 headlamps, the double chevron Citroen logo, and the
two-part air dam with a solid chunk of bumper in be-
tween, similar to the C5 Aircross. Under the hood, it is
expected to have a 1.2-litre turbocharged petrol engine.
LOAN EMI It will take on the likes of the Maruti Vitara Brezza,
(loan for 5 years, Toyota Urban Cruiser, Hyundai Venue, Kia Sonet, Tata
80% financed at Nexon, Mahindra XUV300, Ford EcoSport and the
9.25% interest) Nissan Magnite.
`9,946
SPECIFICATIONS
EXPECTED RESALE Fuel type: PETROL
(after 3 years)
Engine capacity: 1.2 litre turbo petrol
Around `4 lakh Mileage: 15 kmpl (expected)
Note: Pictures of this model are not available.
 cover story
06 The Economic Times Wealth January 25-31, 2021

Volkswagen Taigun PRICE: PRICE:

Mahindra Scorpio
`10-16 lakh (EXPECTED) `12-17 lakh (EXPECTED)
Expected launch: Mid-2021 Expected launch: End-2021

RUNNING COST RUNNING COST

(30 km/day per month) (30 km/day per month)
`4,260 `5,112 Petrol

LOAN EMI LOAN EMI

(loan for 5 years, (loan for 5 years,
80% financed at 80% financed at
9.25% interest) 9.25% interest)
`16,576 `19,891

EXPECTED RESALE EXPECTED RESALE

WHAT RAPID is to Vento, Taigun will be
to Kushaq. It will be underpinned by the
same MQB A0 IN platform and powered by
the same set of engines. Taigun will also
look similar to its near-production model
showcased at Auto Expo 2020. Up front, it
features VW’s family look with a horizon-
tally slatted grille flanked by multi-barrel
headlamps. The side profile looks clean
with a sharp shoulder line running across
the length. At the back, it gets Sonet-like
(after 3 years)
`8-13 lakh
SPECIFICATIONS
Fuel type: PETROL
Engine capacity: 1.0-litre &
1.5-litre turbocharged TSI
Mileage: Up to 18 kmpl
styling with connected tail lamps. Inside,
expect it to have a minimalistic layout and
loaded with features like multiple airbags,
digital instrument cluster, sunroof, and
large touchscreen infotainment system.
(after 3 years)
`9-12 lakh
SPECIFICATIONS
Fuel type: PETROL, DIESEL
Engine capacity: 2.0-litre turbo
petrol; 2.2-litre diesel
Mileage: Up to 15 kmpl
MAHINDRA HAS been working on the new-
gen Scorpio for a while, but recently it was
spotted in near-production form. It gets the
typical Mahindra grille with vertical slats
and dual-barrel headlamps. The side pro-
file looks boxy, similar to the current-gen
model. Inside, it is expected to get a com-
pletely redesigned cabin. Features should
include multiple airbags, electronic sta-
bility control, hill launch assist, a larger
touchscreen infotainment system with
Apple CarPlay and Android Auto, electric
sunroof, powered driver’s seat and more.
It is expected to share its engines with the
new Thar, which gets a 2.0-litre turbo pet-
rol (150 PS/ 320 Nm) and a 2.2-litre diesel
engine (130 PS/ 300 Nm).

BEST CARS BETWEEN `15 LAKH & `40 LAKH

Tata Safari PRICE: PRICE:
Mahindra XUV500
`15-22 lakh (EXPECTED) `15-20 lakh (EXPECTED)
Expected launch: 26 Jan 2021 Expected launch: Mid-2021

RUNNING COST RUNNING COST

(30 km/day per month) (30 km/day per month)
`4,524 Diesel `5,112 Petrol

LOAN EMI LOAN EMI

AFTER ITS 21-year stint ended in 2019, the
legendary Safari nameplate is set to make
a comeback. Safari is the production name
of Gravitas which debuted at the 2020 Auto
Expo. It looks similar to Harrier till the
C-pillar. After that, it gets a stepped-up
roof to make extra headroom for a third
row of seats and a more upright rear pro-
file. It also gets mildly updated tail lamps.
Tata might also introduce some specific
cosmetic updates at the front in order to
set it apart from Harrier. Inside, the cabin
(loan for 5 years,
80% financed at
9.25% interest)
`24,864
EXPECTED RESALE
(after 3 years)
`11-17 lakh
SPECIFICATIONS
Fuel type: DIESEL, PETROL
Engine capacity: 2.0-litre diesel
Mileage: Up to 15 kmpl
layout looks similar to Harrier, but gets
a black/biege finish instead of the black-
brown/all-black finish on Harrier. Safari
will resemble Harrier in features, as well
as on the engine front. It will get a 2.0-litre
diesel engine, with 170 PS and 350 Nm,
paired with a 6-speed MT and a 6-speed AT.
(loan for 5 years,
80% financed at
10% interest)
`24,864
EXPECTED RESALE
(after 3 years)
`11-15 lakh
SPECIFICATIONS
cabin. It gets a Mercedes-like dual-screen
Fuel type: PETROL, DIESEL setup for the digital instrument cluster
Engine capacity: 2.0-litre turbo and infotainment system. Other expected
petrol; 2.2-litre diesel features are a panoramic sunroof, multi-
ple airbags, multi-zone AC and connected
Mileage: Up to 15 kmpl
car tech. Mahindra is also expected to of-
THE SECOND-GEN XUV500 has been spot- fer segment-first level 1 autonomous tech-
ted testing and gets an all new design nology. So, it will get features like autono-
with wraparound headlamps flanking mous emergency braking, lane keep assist,
Mahindra’s signature grille, new alloy and adaptive cruise control. It is expected
wheels and wraparound LED tail lights. to share its engines with the new Thar, but
Inside, it will get a completely redesigned in a higher state of tune.
 cover story
The Economic Times Wealth January 25-31, 2021 05

BEST CARS BETWEEN `7 LAKH & `15 LAKH

PRICE: Skoda Rapid Successor
`9-15 lakh (EXPECTED) SKODA’S RAPID Successor will be based on the same
Expected launch: End 2021 MQB A0 IN platform that will underpin the upcoming
Skoda Kushaq compact SUV. It will not only feature
RUNNING COST a completely new design with bigger proportions, but
(30 km/day per month) will also get a new name. It will be powered by the same
1.0-litre TSI petrol engine that powers the Rapid and will
`4,260 have 110 PS and 175 Nm, mated either to a 6-speed manual
transmission or a 6-speed torque converter automatic.
The new compact sedan is likely to be loaded with fea-
LOAN EMI
tures like (up to) six airbags, electronic stability control,
(loan for 5 years, 80%
hill launch assist, auto AC with rear AC vents, auto
financed at 9.25%
dimming IRVM, digital instrument cluster and a large
interest)
touchscreen infotainment system with Apple CarPlay
`14,919 and Android Auto.

SPECIFICATIONS
EXPECTED RESALE
Fuel type: PETROL
(after 3 years)
Engine capacity: 1.0-litre turbocharged TSI petrol
`6-8 lakh
Mileage: Up to 18 kmpl
Note: Picture of an older model has been used as the new model’s pictures are not available.

Volkswagen Vento PRICE:

VW IS working on the next-gen Vento and will share

`9-14 lakh (EXPECTED)
its underpinnings with Skoda Rapid, that is, the Expected launch: End 2021
MQB A0 IN platform. It will be powered by the same
1.0-litre turbocharged petrol engine as the current RUNNING COST
Vento, which comes with 110 PS and 175 Nm paired to (30 km/day per month)
either a 6-speed MT or a 6-speed AT. Although the se-
dan has not been spied testing yet, we expect it to be `4,260
bigger than the current-gen model. Like other mod-
ern Skoda-Volkswagen cars, expect the new Vento
LOAN EMI
to be loaded with features like multiple airbags,
(loan for 5 years, 80%
electronic stability control, hill launch assist, digi-
financed at 9.25%
tal instrument cluster, auto AC and a large touch-
interest)
screen infotainment system with Apple CarPlay and
Android Auto. `14,919
SPECIFICATIONS
Fuel type: PETROL EXPECTED RESALE
(after 3 years)
Engine capacity: 1.0-litre turbocharged TSI petrol
Mileage: Up to 18 kmpl
`6-8 lakh
Note: Picture of an older model has been used as the new model’s pictures are not available.

PRICE: Skoda Kushaq

`10-16 lakh (EXPECTED) KUSHAQ IS Skoda’s upcoming compact SUV based on
Expected launch: Mid-2021 the Vision IN concept and is also underpinned by the
MQB A0 IN platform. The SUV has already been spotted
testing in the country and it looks similar to the concept.
RUNNING COST Under the hood, it is likely to offer two engine options:
(30 km/day per month) 1.0-litre turbocharged TSI from the Rapid (110 PS/175
Nm) and 1.5-litre turbocharged TSI (150 PS/ 250 Nm)
`4,260 from the Karoq. While the 1.0-litre engine is expected to
be offered with a 6-speed MT and 6-speed AT, the 1.5-litre
unit is likely to have a 7-speed DSG (dual-clutch auto-
LOAN EMI
matic) only. Kushaq is expected to be packed with fea-
(loan for 5 years, 80%
tures like multiple airbags, digital instrument cluster,
financed at 9.25%
sunroof, a large touchscreen infotainment system with
interest)
Apple CarPlay and Android Auto and auto AC.
`16,576
SPECIFICATIONS
Fuel type: PETROL
EXPECTED RESALE
(after 3 years) Engine capacity: 1.0-litre &
1.5-litre turbocharged TSI
`8-13 lakh Mileage: Up to 18 kmpl
 cover story
The Economic Times Wealth January 25-31, 2021 07

PRICE:
Jeep Compass facelift
`16-27 lakh (EXPECTED) JEEP RECENTLY debuted the facelifted Compass in
Expected launch: Feb 2021 India and is already taking pre-orders. Its test drives
are set to begin from the last week of January. It looks
similar to the pre-facelift model, but gets mild exterior
RUNNING COST updates which make it look sharper, while the cabin
(30 km/day per month) gets a major overhaul. The main attraction is a large
10.1-inch touchscreen infotainment system with wire-
`5,112 less Apple CarPlay and Android Auto. Other features in-
clude a 10.25-inch digital instrument cluster, dual-zone
AC, 360-degree camera, ventilated front seats, powered
LOAN EMI tailgate, multiple airbags and a panoramic sunroof. The
(loan for 5 years, engines include the 1.4-litre turbocharged petrol and
80% financed at 2.0-litre diesel options. Both get a 6-speed MT as stand-
10% interest) ard with an option of 7-speed DCT with petrol engine,
and a 9-speed automatic with the diesel engine.
`26,522
SPECIFICATIONS
Fuel type: PETROL, DIESEL
EXPECTED RESALE
(after 3 years) Engine capacity: 1.4-litre turbo petrol;
2.0-litre diesel engine
`12-20 lakh Mileage: Up to 15 kmpl

Citroen C5 Aircross PRICE: AROUND

CITROEN IS all set to unveil the India-spec SUV on 1

`30 lakh (EXPECTED)
February, even though it was expected to debut by Expected launch: 1 Feb 2021
September 2020, but was delayed due to the pandemic .
The C5 Aircross is a premium mid-sized SUV that will
take on the likes of Volkswagen Tiguan Allspace and RUNNING COST
Skoda Kodiaq petrol. Under the hood, C5 Aircross is (30 km/day per month)
expected to have a diesel engine only, possibly a 2.0-litre `4,524
engine with 176 PS and 400 Nm, mated with an 8-speed
automatic. The features may include a panoramic sun-
roof, dual-zone climate control, 12.3-inch digital instru-
ment cluster and an 8.0-inch touchscreen infotainment LOAN EMI
system. In terms of safety, the C5 Aircross could feature (loan for 5 years,
multiple airbags, front and rear parking sensors, and 80% financed at
electronic stability control. 10% interest)
`49,728
SPECIFICATIONS
Fuel type: DIESEL EXPECTED RESALE
Engine capacity: 2.0-litre Diesel (after 3 years)
Mileage: Up to 15 kmpl Around `22 lakh

SKODA DEBUTED the Kodiaq pet- adjustable driver’s seat, panoramic

PRICE: AROUND
Skoda Kodiaq Petrol rol at the 2020 Auto Expo and was sunroof, 3-zone climate control and
`35 lakh (EXPECTED) expected to go on sale by April 2020.
However, it was delayed due to the
power nap package.

Expected launch: Mid-2021 pandemic and is now expected to be

' AV
launched around mid-2021. It will
be powered by a 2.0-litre TSI turbo
petrol engine, with 190 PS and 320

A PC, Laptop
RUNNING COST Nm mated to a 7-speed DSG auto-
(30 km/day per month) matic. Like its diesel counterpart,
`5,112 the Kodiaq petrol will get an AWD
system as a standard. It is likely
to have similar features as before, Tablet, Mobile
such as adaptive LED headlamps,
LOAN EMI
I%N w
an 8-inch touchscreen infotainment
(loan for 5 years, system with Apple CarPlay and
80% financed at Android Auto, a 12.3-inch digital
9.25% interest) instrument cluster, 12-way power-
Ransomware
`58,017
SPECIFICATIONS Protection
Fuel type: PETROL
EXPECTED RESALE
(after 3 years)
Engine capacity: 2.0-litre
TSI turbo petrol 92.72.70.70.50
Around `25 lakh Mileage: Up to 15 kmpl 98.22.88.25.66

Let go of fear of the future
While money is important, fear of what might await should not make you scrimp, says Uma Shashikant.
W
e scrambled to get `20,000
invested in time to claim
the tax benefit. This wasn’t
too long ago. In the 1990s.
When our salaries were mod-
est; and fears for the future ran high. End
January was still the deadline for employ-
ers to get our investment information. Tax
refunds took ages to come. Some fears are so
overdone and that is a shame.
UMA SHASHIK ANT
IS CHAIRPER SON, CENTRE As young earners raising two children and
FOR INVES TMENT caring for the extended family on both sides,
EDUC ATION AND LE ARNING the husband and I saw ourselves like horses
that must run tirelessly. We were in our 30s.
We denied ourselves many simple joys; could
not come around to making any decisions of
luxury for ourselves; kept long work hours
and pushed ourselves for getting better; and
saved as if tomorrow held unknown setbacks.
When we hit the 40s we began to breathe as
invest in equity—
earnings got better. By the time we were in
through stocks
the 50s we knew we had done enough and a
and funds. With
little more with our profession, savings and
the power of
investments. Now as we nudge the 60s, we are
participation in the
asking ourselves, if we could redo it, what
best businesses that would we do differently?
others are running, First, we will drop the fear. Everything
your money grows works out just fine. There is no need to worry
significantly. You about the future. The future holds beautiful
focus on your work opportunities we don’t know or can dream of.
and your earnings The unknown means unknown nice things
and savings. too. Keep going and don’t let fear drive you to
too much caution with money. Or too much
conservativeness to spending.
Second, we will not beat ourselves about
not being able to save early. In the first 10
years of work life, people like us who had
extended families to also care for, could not
save enough. That is just fine. No harm.
financial planning
The Economic Times Wealth January 25-31, 2021
GETTY IMAGES
There comes a time when expenses drop and
incomes rise and you still are earning and
saving and making up for that late start.
Third, we will apportion money for indul-
gence and for saving, treating both as equally
important. Once a monthly treat of an even-
ing out seemed like luxury then. Now people
routinely order in three work day dinners
and go out with friends every weekend. Our
frugality seems so overdone. We would be
kinder to ourselves.
If we were to do the same again, we would
be more optimistic and relaxed. What did we
do right and feel proud about?
First, we focussed on our work and
grabbed every opportunity to learn and
grow. No one could have predicted the chang-
es that India went through when we joined
the workforce in the mid 1980s. We were for-
tunate. We also grasped what came up with
open arms and gave it our best shot. If one can
reach the peak of one’s professional career
by the time one is in the 50s there is enough
to spend, save, and give. There are really no
fears about income if work ethic is right.
Second, we lived a life without debt.
Borrowing was a source of great discomfort
to both of us. We risk being called super con-
servative and unwilling to use leverage, but
we dislike debt. We repaid our home loan in
five years even if it did not make financial
sense. Sometimes one must just do what one
is comfortable with. Even if it is not math-
ematically the right thing to do.
Third, we made giving a habit. From the
first income we earned, we ensured that
what we had was shared and that it helped
those less privileged than us. We also learned
a valuable lesson about giving along the way.
09
True giving is not felt by the giver or the
receiver. It happens as if it is the right
thing to do and the most natural way to do
things. Integrating others into your life
is how this can happen. We learned that
emphathy for people around us enables us
to support them seamlessly.
What would we tell our children, if they
asked for lessons about money from us?
First, do not treat money too lightly and
do not treat it too seriously either. Money
and wealth bring you the security and
confidence to make choices that make
the world a better place. You extend your
vision beyond the basics for yourself and
your family. Use money as that provider
of comfort, choice and security. Don’t see
it as an end goal. Being moneyed allows
you to be a master of your time, your life
and your work. Seek money and wealth for
that freedom.
Second, there is more to living than
money alone. Life’s little joys come from
the innumerable experiences that invari-
ably involves others. Being empathetic,
caring and inclusive matter much more
than being wealthy alone. Make sure you
bring little joys into your life and in the
lives of people around you. Make the effort
to make little experiences matter to your-
self and others. Buy that box of ice cream
on your way home, even if it meant stand-
ing in line for longer than you wished.
Don’t let tiny discomforts come in the way
of living life with joy.
Third, invest in equity—through stocks
and funds. With the power of participation
in the best businesses that others are run-
ning, your money grows significantly. You
focus on your work and your earnings and
savings. Your money accumulates and
appreciates in the background powered
by the work so many others are putting in
to excel, to win, to amaze and to add value.
Equity investing is your key to growing
your wealth. Do not let money lie idle.
As we both contemplate the 60s in our
lives we realise that money, time and
energy aren’t available together in any
stage of one’s life. When we were young
and had all the energy to trek the world,
we had jobs and family to devote time and
energy to. In the middle age when money
was relatively easy to allocate and energy
still high, the demands of our profession
meant we had no time to allocate. Now
we have the time and the money, but the
bones are weaker than before. We still
hope to trek the mountains and walk the
beaches, we hope.
As we lie here at the hills on a dark night
amazed at the million stars and unable to
sleep under such beauty, we tell one anoth-
er that the best things in life are still free
and available in abundance. No money
needed to enjoy them. None.
Please send your feedback to
etwealth@timesgroup.com
 investing
08 The Economic Times Wealth January 25-31, 2021
‘Equities will continue to be
rewarding for investors’
The financial year 2021-22 is likely to witness strong economic growth and long-term investors
who can ignore market movements would benefit, Ravi Menon tells Sanket Dhanorkar.
Ravi Menon What is your assessment of the current
market scenario and economic recovery?
The dichotomy between market indices
CEO, HSBC Global touching new highs and current GDP num-
bers can be baffling. But if one were to look
Asset Management at the forecasted GDP numbers, may be not
so. The marketplace is forecasting rising
earnings. Skeptics may say analyst’s early
numbers are invariably moderated down-
wards. They are right. But in the current
year, earnings have surprised on the upside.
Let me quote Aswath Damodaran who said:
“Markets are not a reflector but a predictor
of economic activity”.
The quick recovery in equity markets has
led some to believe that the market ignored
the crisis, but that is not true. An economist
opined that large listed Indian companies
have little or no operating leverage. At
the first sign of crisis they were able to cut
costs significantly and boost profitability.
Increasing demand, rising liquidity, strong
offshore flows and a weakening dollar have
led to a very sharp increase in our markets.
The pandemic has accelerated the theme of
dominant companies becoming even big-
ger—given their advantages of scale, cost
and balance sheet—which is getting reward-
ed in market cap. We reckon that 2021-22 will
be a strong year for economic growth.
Most valuation metrics suggest markets
are highly overvalued. But are low interest
rates, abundance of liquidity challenging
conventional wisdom on valuations?
While the equity markets are trading at
higher than historical averages on conven-
tional valuation metrics, strong global li-
quidity and a low cost of capital environment
in India as well as globally, place equity as a
relatively better asset class in the near to me-
dium term. Low cost of capital is a driver on
both supply and demand side for companies,
while for investors a lower discount rate
means a higher real rate of return from equi-
ties compared to other asset classes. If the
cost of capital were to remain low for a sus-
tained period of time, then the current mul-
tiples are sustainable and the equity returns
would be in line with earnings growth.
Interest rates are unlikely to
move up. There has also been
a lot of discussion on current “Quick market
one year forward PE levels
compared to historic averag-
recovery led
es. On an absolute basis, it is
no doubt trading higher than
some to believe
historic averages. There is no that the market
denying that and it is a cause
to exercise some restraint. ignored the
This restraint will be specific
to individual risk appetite.
crisis, but that
is not true.”
What is the best way for in-
vestors to approach a runa-
way market like this?
It will depend on their risk appetite and re-
turn expectations. For an investor who has
saved for retirement and is approaching that
stage, it would be prudent to book regular
profits. For a long-term investor, market
movements are of less significance as it is
the compounding factor that drives returns
in the long run. India’s growing middle class
and expanding working age population is
expected to drive the consumption demand
and this is a multi-year story with long legs.
India is one of the fastest growing large econ-
omies and its incremental contribution to
world GDP would remain high. This would
eventually reflect in the market cap param-
eters too. The ingredients are all in place –
stable democracy, structural policy reforms
and Indian equities are expected to continue
to be a rewarding place for investors who are
willing to stay invested.
Will value get its time under the sun finally?
Growth stocks do not work if there is no
value in them and value stocks do not work if
there is no growth in them. During the past
decade or so, Indian equity markets have
been rewarding growth, while value has tak-
en a backseat. As we are a growing economy,
investors are willing to pay a premium for
growth. But value stocks which are part of a
growing industry, regaining its mojo due to
company specific factors, can still outper-
form. But we cannot generalise. It will be
better to be selective while evaluating value
stocks and we expect growth to outperform.
How are you positioning equity funds
for the next few years? Which sectors or
themes are you betting on?
Our investment philosophy is to invest in
dominant scalable businesses, available at
reasonable valuations. Over the past few
years, we’ve witnessed the trend of profit
pool consolidating with the dominant play-
ers in respective sectors/industries. We
believe that will accelerate as the current
disruption has a higher magnitude as well as
it encompasses more sectors.
The disruption will pave way
for interesting themes. One is
that of accelerated digital adop-
tion by consumers as well as en-
terprises. We see telecom, inter-
net economy, ecommerce, tech-
nology vendors, etc. benefittiing
from this disruption. Another
long term theme is of diversifica-
tion of the global supply chain
due to ‘China + 1’ strategy which
could be adopted by corporates
as well as economies and India
could benefit. We would position
our portfolios to benefit out of
these themes in the medium to long term.
In the short to medium term, we would be
focusing on earnings growth surprises.
Is interest rate down-cycle on its last leg?
What should one expect from debt funds?
Interest rate moves in a cycle but we think
terming it as on the last leg is a bit preemp-
tive. While the central bank has done a lot in
terms of supporting the market, the space for
further action is perhaps constrained.
While short-end funds tend to do well with
respect to consistency and volatility, their
ability to generate return in a falling inter-
est rate regime is limited. Similarly, while
long duration strategy tends to be higher in
terms of volatility, their ability to generate
capital gains is much higher when interest
rate is moving down. The preference of al-
location comes from individual’s risk and
return appetite.
Please send your feedback to
etwealth@timesgroup.com
 learn & keep
10 The Economic Times Wealth January 25-31, 2021

Covid impact: Rise in term plans, savings

The pandemic has not only led to an increase in the sale of term insurance and critical illness plans, but has also shifted the savings focus
from children’s goals to old-age security, reveals the Max Life IPQ 3.0 survey. Riju Mehta analyses the trends.

Covid raises insurance awareness, Covid spurs savings, cuts in Sharp rise in term Self-employed have
but financial insecurity high discretionary expenses awareness, but traditional higher protection than
India *IPQ is the degree
to which Indians Life insurance Savings & investment Basic expenses Luxury expenses plans still the favourite salaried
Protection feel protected from
future uncertainties
ownership 50% 41% 9%
2021 2021 2021
Quotient on a scale of 0
to 100, based on
attitudes, mental
preparedness about
41% 44% 14%
2020 2020 2020
future uncertainties,
awareness and
31% 28%
ownership of life 71% 66% Term plan Term plan
insurance products, 2021 2020 ownership for ownership for
39 35 including term, Awareness Ownership self-employed salaried
2021 2020 endowment and Ulips.

Security Level 59% Term plans 28%

Knowledge Index
Purpose of saving has shifted
*Knowledge
from kids to old-age security 63% Endowment
plans 33%
Index is the 2020 2021
degree to which 57% 60%
Indians are aware 2021 2020 42% Ulips 11%
of life insurance Kids’ education
55 46 *Security Level is the degree to which
products, on a Indians feel financially secure and are 63
2021 2020 scale of 0 to 100. prepared on a scale of 0 to 100.
68 Sharp rise in Term awareness
purchase of critical among working
Delhi tops in protection, Mumbai Old-age security/retirement
62 illness plans women rises
in insurance ownership 57
59% feel they have Did you buy a critical illness 2021
Protection Life insurance ownership insufficient term coverage rider with term insurance?
IPQ SCORE OWNERSHIP (%) Kids’ marriage
2021
91 89 45 1% 13%
81 82 80 49 Don’t remember Not at all sufficient
74% 26%
cover of my
72 term plan No Yes 64% 62%
For untimely death of the breadwinner Women Men
50 46 46 45 41
40 11%
35 More than 2020
30 sufficient 2020
46%
Somewhat
For medical emergencies sufficient 89% 11%
No Yes
38 51% 53%
32 29% Women Men
Sufficient
DELHI CHENNAI MUMBAI HYDERABAD BENGALURU KOLKATA Buying a house
32
33
Covid-related anxieties on the rise Buying life Financial security Life insurance ownership
ANXIETIES 2021 2020
Buying a car
11
insurance: 2021 2021
Someone in family might get infected with Covid 65% -
13
Millennials 57%
58%
Non- 70%
73%
Non-
Sustaining lifestyle and expenses with the current earnings 65% 57% catching up Millennials millennials Millennials millennials
65% 56% Travel/vacation
Financial security of family in case of breadwinner’s death

Cost of treatment of Covid infection 65% - 9 with Gen X

Inadequacy of funds in case of critical illness in family 64% 57% 13 Source: The ‘Max Life India Protection Quotient 3.0’ survey was conducted by Max Life Insurance in association with Kantar. It was conducted among 4,357 respondents across 25
cities, including six metros, nine tier 1 and 10 tier 2 cities, as opposed to the 2020 survey, which had 7,014 respondents. Figures may not add up to 100% due to multiple responses.
ILLUSTRATION: ANIRBAN BORA

How your
finances
should look
in your 40s
Make sure that your savings ratio is rising and the credit ratio is falling.
Amitesh, a 42-year-old university
professor, often looks at a picture of
a family trip to the Andamans from
a few years ago. To him, it exempli-
fies what he’s working towards in
his retirement: more trips and long-
lasting happy memories. He and his
wife, a former professor and now a
technology consultant, started sav-
ing when they got married in 2000,
putting away money every month
and increasing their savings as
and when they received raises.
They recently had to adjust their
contributions to pay off the last of
their home loan. They now plan to
be debt-free in the next five years.
They are getting there with sound
and stringent financial decisions.
smart things to know
A person is said to
1
have an insurable
interest in something
if he would suffer
loss or get adversely
affected if that
property was lost or
damaged and would
benefit financially
from that property’s
safety or continued
existence.
T
he 40s is a critical time
for retirement savings. It
is likely that around this
time a person will reach
his peak income and can
make a dent in his long-term goals if
he hasn’t already begun to do so. By
this stage, Amitesh should have had a
clear strategy for his retirement plan
as savings for this goal can’t be on an
ad hoc basis. However, high interest
rate personal loan or credit card debt
can hold Amitesh back in the 40s. The
repayment can be a drain on savings
and could take away from the invest-
ments that he could have otherwise
made. He and his wife are doing well
to have a plan in place to pay down
debt quickly. However, between
unsecured debt and home mortgage,
he must prioritise the former due to
high cost and zero tax benefits, un-
like the mortgage.
The 40s is also a life-stage where
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Insurable interest
2
In life insurance,
a person has an Insurable
3 5
insurable interest in interest in
another person when the prop-
the death of that erty or life
person would cause a is the basis
financial, emotional or of insurance
another type of loss. policies.
financial planning
The Economic Times Wealth January 25-31, 2021 13
PAPER WORK
:: Investing in equities
With the stock markets reaching
an all-time high, many investors
are increasingly interested in
taking at least a small allocation
to equities. However, before
deciding to invest in equities, it
is important for an investor to
ascertain a few things like, choice
of company, the price at which
one should invest, investible
amount etc. One can then choose
amongst the following options.
Direct investment in shares
For this, one needs
to research about the
company to invest in. A
demat account needs to be opened
along with a trading account with
a broker. A bank account and KYC
compliance is also mandatory.
GETTY IMAGES
Equity mutual fund
To be able to invest in MFs,
one needs to complete KYC
requirements and fill up the
application form of the fund house
indicating the desired scheme. Once
the ability to rectify mistakes is the application is accepted, units are
restricted as there is limited time allotted to the investor. Portfolio value
to make amends. Goals such as re- of the investment can be ascertained
tirement have many years before at the end of each business day by
they have to be met and can benefit multiplying the units with the NAV.
from high capital appreciation and
compounding. Amitesh must evalu-
ate his portfolio to ensure that it is Portfolio management
skewed towards growth assets such Investors who wish to
as equity. He and his family must invest a higher amount of
also find ways to increase savings by funds (above `50 lakh) in
cutting back on lifestyle and other ex- the equity markets have the option
penses, such as buying an expensive to approach portfolio managers. A
laptop or a fancy car. An emergency portfolio management agreement is
fund and mediclaim are required for entered between the investor and the
protection of income, along with life portfolio manager which spells out the
insurance. Not having an emergency objectives, risks, securities that the
back-up can have serious conse- latter will invest in as well as the costs
and portfolio management charges. The
quences for Amitesh’s family.
Maximising earnings and savings beneficial ownership of shares invested
should be the main focus for Amitesh by the portfolio manager remains with
the investor in his demat account and
at this stage. Hence, while the sav-
hence the investor receives dividends/
ings ratio should rise, the credit ratio
bonus allotments in his account.
should be falling.
:: Points to note
z Capital gains tax on MFs is appli-
cable at time of redemption and not
when the fund manager buys or sells
securities within the MF portfolio.
z Capital gains tax on shares invested
4
by the portfolio manager is applica-
ble to the investor at the time of the
transaction effected by the former.
z Customisation of the portfolio is
The essential thing Also, the
possible with a PMS at a higher cost
is that there must relationship
vis a vis an MF scheme which has a
be some prop- between the
standard portfolio in line with the
erty, right, life or insured and the
investment objective of the scheme.
potential liability subject matter
capable of being must be recog-
insured. nised by law.
 your queries
12 The Economic Times Wealth January 25-31, 2021
I am an 81-year-old retired PSU
officer. I have a two-storied house
on a 2,400 sqft plot in Chennai. I
want to settle my immovable
property in favour of my three
children. I do not want to sell the
property as I want to live in it. How
should I divide the property?
Consult a property lawyer and write
a will to declare transfer of the
property title and rights in equal
proportion to your children after
your demise. The will ensures
peaceful transfer of property among
the legal heirs according to the
applicable laws of succession. Since it
is a self occupied property, you
remain the legal owner till your last
breath. It is only after your passing
that your children who are marked as
successors in the will can acquire the
property. They can reside in, lend or
sell the property as per their needs.
However, before registering for
change in title ownership (mutation),
your children will need to ensure that
there is no loan linked to the
property. The process of mutation
will update the new property owners
in government records. Explore the
possibility of dividing the property
in a manner that each child has a
demarcated unit. It will minimise
scope of any
unpleasantness after
your demise.
Raj Khosla
Founder and Managing
Director, MyMoneyMantra.com
My bank FD of `6 lakh is maturing
shortly. Due to falling interest rates
and also to reduce tax, I want to
invest this amount in mutual funds,
to get a return of 8% per annum. I
am in the 30% tax slab, a retired
senior citizen, and am not averse to
taking some risk. Which mutual
funds should I invest in?
A return of 8% is a tall ask in debt
funds especially in the categories
suitable for SWPs. Please tone
down your expectations and use
floating rate, ultra short and short
term debt funds for SWP. Please
go with high quality funds and not
with high-returning funds. Also
consider RBI floating rate bonds
2020 as it will provide returns
and guarantee.   the best returns for senior
Vidya Bala,
Co-Founder,
PrimeInvestor.in
QA
&
Our panel of experts will
answer questions related to
any aspect of personal
finance. If you have a query,
mail it to us right away.
QUESTION OF THE WEEK
I am 62. I have a total of `13 lakh invested
in ICICI Balanced Advantage Fund, ICICI US
Bluechip Fund, HDFC Top 100 and Aditya
Birla Sunlife Focussed Fund. I have FDs of
about `80 lakh and `30 lakh in SCSS and
PMVY. I will very soon be getting `1.8
crore as my PF. How should I invest this
money to earn a monthly income of `1
lakh? I do not have any liabilities.
It’s good to see that you have saved well and look
comfortably placed. You have `3 crore of total
corpus, and I will break this into two investment
horizons. For a horizon of less than five years, I
would suggest fixed income instruments for your
liquidity needs and expenses, along with capital
protection. Assuming inflation of 5%, you would
need `12 lakh in the first year and `13 lakh in the
second year and so on, as income. You already
have invested `30 lakh in SCSS and PMVY which
will help you with regular income. Invest another
`40 lakh from your PF proceeds in ultra short
duration debt funds for five years and activate
Systematic Withdrawal Plans (SWP). Consider
any of these funds—HDFC Ultra Short Term Fund,
ICICI Prudential Ultra Short Term Fund and SBI
Magnum Ultra Short Duration Fund. You should
invest the remaining `2.3 crore with a long-term
horizon of at least 5-7 years. Usually, I would
suggest investing 70-80% of the corpus in equity
for best long-term gains. But you seem a
conservative investor and I would suggest you
invest around 55%—`1.3 crore—in equity. You can
consider these funds—Mirae Asset Large Cap
Fund or Parag Parikh Flexi Cap Fund, Axis
Bluechip Fund or Axis Focussed 25 Fund and
HDFC Index Sensex Fund or Tata Index Sensex
Fund. You should replace all your existing funds
with these suggested equity funds, once you
have crossed the short term capital gains tax
threshold. For the remaining `80 lakh, you seem
comfortable investing in FDs; hence, I would
suggest that you keep renewing your
investments there. Currently, SBM Bank,
Suryodaya Small Finance Bank,
Jana Small Finance Bank and
IndusInd Bank are providing
citizens. Do compare online
on best FD returns at the time
of maturity of your FDs.
Naveen Kukreja
CEO and Co-Founder, Paisabazaar.com
I left my job with a private firm in October
2020 after working for eight years. I now
want to withdraw the EPF amount. Will I get
interest for the period April 2020 to October
2020? I have made some capital gain by
selling my old flat, purchased in 1992 and
registered in 1997. How will the capital gain
be calculated? How does one invest in 54 EC
bonds to avoid capital gain tax?  
Interest will be credited up to the end of the
month preceding the date on which the final
payment for the claim is authorised. Say, if you
present your claim in January 2021 and your
payment is authorised in February 2021, inter-
est will be credited till January 2021. Capital
gains would be calculated as sale consideration
or stamp duty value of the property as on the
date of sale, whichever is higher, less any ex-
penses incurred for the purpose of transfer, the
indexed cost of acquisition and indexed cost of
improvement, if any. The resultant figure shall
be taxable long term capital gains which can be
offset by investing in a new property or eligible
bonds under Sec 54. Eligible 54EC bonds are
that of: Rural Electrification Corporation Ltd.
(REC), Power Finance Corporation Ltd. (PFC),
National Highways Authority of India (NHAI)
and Indian Railways Finance Corporation
(IRFC). Investment can be made either through
a broker or any bank. You would have to choose
the respective bond, produce required KYC doc-
uments and make the payment. The invest-
ment has to be made within six months from
the date of transfer and the maximum amount
of exemption is restricted to an investment cap
of `50 lakh. The lock-in period for the said in-
vestment is five years and the
bonds cannot be pledged for the
purpose of availing loans.
Divakar Vijayasarathy
Founder and Managing Partner, DVS
Advisors LLP
I have sold my equity mutual holdings
during 2020-21 for `7 lakh and made LTCG
of `2.5 lakh. How I can save on LTCG tax?
Section 54EC provides exemption on transfer
of a land or building or both and investing the
consideration in specified assets like bonds is-
sued by NHAI and REC. Hence, exemption as
per section 54EC cannot be claimed in your
case as reinvestment from the sale of equity
mutual funds is not covered there. However, if
you are planning to buy a house, you can claim
the exemption u/s 54F for investment of the
whole of the sale consideration
provided you don’t own
more than one house.
Amit Maheshwari
Partner, AKM Global
Ask our experts
Have a question for the experts?
etwealth@timesgroup.com
 career strategy
14 The Economic Times Wealth January 25-31, 2021
How to
impress your
boss remotely
Be a WFH high performer even when
no one can see you work, says
Devashish Chakravarty.
Y
ou were a high performer at
work. But the new Work-From-
Home (WFH) set up denies you
the vital face time with your
manager and team that was es-
sential to get information, share instant up-
dates, demonstrate your work ethic and be
recognised for your consistency. While you
miss this critical part of your professional
toolbox, here’s how you can compensate for
the loss and earn your dues.
Clock comfort
While you work towards your growth,
consider how you can contribute to your
manager’s success. Put yourself in your
manager’s shoes. Your boss has her work
cut out with the additional hurdle of get-
ting a remote team to function and succeed
together. How can you make her life easier?
As a first step, offer predictability. Start
with office timings. Follow the regular of-
fice calendar and clock for work hours as
well as meal breaks. Your consistency and
availability makes you a reliable colleague
and keeps trust level high.
Master meetings
The individual and team meetings have
now become the lifeline for your colleagues
to get stuff done and for your boss to man-
age the team. Treat them with due serious-
ness. Be the first to join a meeting ahead of
time. You get a few extra minutes with oth-
ers who join early. Know that your manager
probably has a packed schedule and limited
time for the meeting. As a top notch profes-
sional, you know the meeting agenda and
are fully prepared to contribute and not be
a drag on the meeting. If you have called
for the meeting, you are responsible for
achieving the goals and closing the meeting
on time. Assert yourself and control the dis-
cussion accordingly. In external meetings
with clients and vendors, know that you too
are representing your company and don’t
expect your manager to carry that burden
alone.
Video veteran
Choose a video meeting over a voice call
or group chat whether you have a discus-
sion with your manager or colleague. You
gain a ton of information and context from
the tone and body language that helps you
take better decisions. The chances of mis-
communication are lower and you are less
likely to make mistakes. Though you have
the option to attend the video call wearing
your shorts, choose to dress formally as you
would in an office meeting. Thus, you con-
stantly strengthen both your attitude and
image of a high performing professional.
Accessible and available
Did you receive a critical chat late because
your internet failed? Or missed a call be-
cause your phone was on silent? Ensure
that you always have the technology you
need and can access your employer’s com-
munication without fail. Always answer
your phone—that unknown number might
be a client with an urgent problem, whose
next call might be to your boss. Check in
with your office chat/ messages/ emails at
regular intervals.
Beyond your brief
To be recognised as an outstanding con-
tributor, go beyond expectations. Know
that in a remote working environment,
only outcomes are seen. Thus only results
matter and the process and hours you put in
are not as critical as in office. Hence show
up with your best work in WFH. Deliver
before deadlines, pick up projects that are
important for your manager even if they
are beyond your job description. Can you
help your colleagues deliver outcomes and
establish positive working relationships
with them? Your approach makes you in-
valuable to your team and manager.
Communicate with context
The best antidote to lack of face time is over
communication. Firstly, make sure that
you have at least one conversation with
NEW
REMOTE JOB?
1 INSERT YOUR
INTRO
When you have joined a new job
remotely and have never met
your colleagues physically, it can
take longer to feel part of the
team. Speed up the process and
help people remember you by
introducing yourself when you
speak.. Start calls with: “Hello I
am Amey, and have just joined
the sales team. How are you? Can
I get your advice on...”
GETTYIMAGES
HELP IN HISTORY
2 The faster you know what
people are talking about in a pro-
ject or meeting, the earlier you
will be able to contribute. Quickly
your boss every week for inputs, updates get up to speed by going through
and expectation matching. Secondly, take the history of email threads you
initiative to share relevant information have been copied on or scrolling
with everyone and post required updates through group chat conversations
on email, calls or chats. Plan discussions in on your office chat application.
advance and add context with content each
time. Imagine the questions that may be MENTAL MAP
asked and have your answers ready. Focus 3 At office, multiple con-
on achieving business priorities and not versations and sources help you
just updating statuses. Finally, respect oth- rapidly learn about your work-
ers and avoid emotional and controversial place, people and projects. In
discussions on politics, religion etc . WFH, the repetition is missing.
Use a notebook and pen to note
Ownership to trust every new nugget of information
The trust that your employer or boss has you come across. Build a mental
in you is the best predictor of recognition, map of your work and get your
appraisals and promotions. The best way questions answered when you
to earn and foster that trust is to demon- get a chance.
strate ownership. Own your role, your
outcomes, your team’s success and your
KYC - KNOW YOUR
employer’s goals. When you own a task or a
role, then you prioritise time for deadlines,
4 COLLEAGUE
ignore your tendency to procrastinate, Your output is higher and your
think through what could go wrong and stress lower when you connect
are proactive in taking initiatives, solving and bond with your team. At
problems and coming up with new ideas. office, you spent time with them
You also increase trust when you own up to over lunch, coffee and at the
your mistakes immediately and show that water cooler. While working re-
you have learnt from them. motely, make extra effort to start
or join non-work conversations
When your boss is new before and after meetings, group
If your manager is new, get the relationship social meets or a scheduled vir-
started from a place of respect and trust. tual coffee.
Help him learn the ropes when he asks, but
don’t assume the role of a mentor. If you CUSTOMISE
have any complaints against your previous 5 CHANNELS
boss, don’t share them and cast yourself in Your communication channel
a poor light. Equally unprofessional is if with your colleagues include
you take on the mantle of a political leader email, office chat app, WhatsApp,
and decide to be the voice for your team’s voice calls and video calls. Get
problems. Instead, figure out how you can to know which channel is used
help him settle down and succeed. for what kind of conversations
within your team. Then under-
stand each person’s preference
of channel and timings so that
THE WRITER IS A CAREER COACH,
you can customise to get the best
MENTOR AND THE AUTHOR OF
responses.
YOURSORTINGHAT.COM
SMART STATS
The Economic Times Wealth
January 25-31, 2021

In This Section
MUTUAL FUNDS - P16
LOANS AND DEPOSITS - P18
ALTERNATE INVESTMENTS- P19

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

NTPC 1 2 96.10 12.92 22.43 8.39 0.82 3.20 0.32 1.69 0.76 25 4.92
1 Fast growing stocks
UPL 2 1 584.55 15.35 63.54 25.16 2.32 1.04 0.41 2.54 1.24 35 4.77
Cipla 3 3 812.75 19.16 70.01 43.05 4.23 0.48 0.61 1.51 0.38 40 4.65 Top 5 stocks with the highest
expected revenue % growth
NMDC 4 4 117.20 20.91 35.11 10.22 1.32 4.37 0.31 2.42 0.85 22 4.05
over the previous year
Hindustan Zinc 5 6 283.20 31.93 37.81 17.80 3.01 12.75 0.42 1.89 0.67 21 3.48
Divi's 47
Dr Reddy's Laboratories 6 7 5,052.20 23.23 64.92 43.19 5.44 0.49 0.68 1.29 0.37 43 4.30 Laboratories
Tata Power 7 5 83.00 14.44 42.19 15.92 1.16 1.83 0.50 2.20 0.73 19 4.37 Granules India 39
Tata Steel 8 9 666.70 11.65 53.14 28.59 1.11 1.45 0.55 2.26 0.99 28 4.54
Hindustan Zinc 32
Adani Ports & SEZ 9 8 547.65 30.84 50.08 30.13 4.41 0.57 0.61 2.08 1.28 27 4.82
Adani Ports & 31
HCL Technologies 10 15 993.30 17.86 28.32 24.48 5.24 1.00 0.78 1.74 0.84 47 4.70 SEZ
CCL Products India 11 10 248.00 19.76 28.07 19.92 3.56 2.82 0.70 1.94 0.84 11 4.91 Ipca 29
Laboratories
Ceat 12 38 1,431.05 19.93 44.70 25.15 2.28 0.92 0.43 1.89 0.99 23 3.65
EPL 13 13 255.60 20.73 50.38 39.11 5.29 1.60 0.79 2.11 0.75 16 4.63
2 Least expensive stocks
Ipca Laboratories 14 16 2,052.00 29.44 91.83 43.15 7.21 0.38 0.46 1.76 0.18 25 4.04
Top 5 stocks with the lowest
Alkem Laboratories 15 12 3,075.55 19.53 44.10 32.69 5.98 0.81 0.77 1.43 0.37 24 4.25 price-earnings ratio
Granules India 16 19 340.25 39.44 87.27 26.18 4.76 0.29 0.29 2.36 1.15 12 4.58 NTPC 8.39
Coromandel International 17 14 852.35 16.76 35.01 23.38 5.77 1.42 0.68 1.72 0.72 18 4.44 NMDC 10.22
Escorts 18 20 1,285.65 19.63 62.93 23.70 5.13 0.19 0.28 2.45 1.46 28 4.39
Power Grid
KEC International 19 17 354.65 15.95 23.16 16.18 3.27 0.96 0.71 2.25 1.17 33 4.55 Corp 10.91

JSW Steel 20 18 393.30 19.13 55.11 23.65 2.61 0.50 0.31 2.43 1.44 29 3.03 Tata Power 15.92
Emami 21 21 477.20 13.58 92.68 71.09 11.80 1.68 0.72 1.98 0.70 35 4.29
Indus Towers 15.93
Power Grid Corp 22 22 195.15 6.23 14.48 10.91 1.58 4.61 0.76 1.57 0.61 22 4.73
Jyothy Labs 23 24 158.25 18.09 35.10 34.05 4.72 1.92 0.96 1.75 0.89 19 4.37
Ambuja Cements 24 23 252.55 5.78 24.48 24.82 2.16 6.49 1.39 1.77 0.77 42 4.29 3 Best PEGs
Top 5 stocks with the least
Hero MotoCorp 25 29 3,247.30 23.87 14.40 18.31 4.62 2.75 1.27 1.96 0.81 51 3.67
price-earnings to growth ratio
Britannia Industries 26 27 3,630.80 23.24 37.06 62.37 19.88 4.62 1.66 1.59 0.79 44 4.18 JSW Steel
Granules India
Mphasis 27 26 1,600.65 22.57 18.59 25.33 5.15 2.12 1.42 1.97 0.98 32 4.56
Orient Cement 28 25 83.30 1.82 50.42 19.99 1.55 0.90 0.41 2.53 1.30 11 4.64
Indus Towers 29 40 246.15 21.21 23.13 15.93 3.34 2.52 0.93 2.96 0.62 27 3.37 0.28 0.29 0.31 0.31 0.32

JK Cement 30 28 2,165.00 19.10 38.59 33.93 5.56 0.35 1.06 1.70 0.75 26 4.54
Rallis India 31 33 284.60 16.44 44.11 30.19 3.96 0.86 0.69 2.16 1.05 22 3.77 Escorts NMDC NTPC
Aurobindo Pharma 32 30 902.25 14.79 23.40 19.01 3.20 0.46 0.82 2.60 1.02 33 4.42
Ajanta Pharma 33 31 1,743.55 18.77 34.65 32.50 5.90 0.53 0.95 1.78 0.76 11 4.73
4 Income generators
Divi's Laboratories 34 35 3,604.60 47.38 64.22 69.78 13.14 0.44 1.08 1.63 0.64 22 4.23 Top 5 stocks with the highest
Glenmark Pharma 35 32 497.15 11.91 30.01 18.33 2.34 0.49 0.58 2.49 0.87 26 3.65 dividend yield (%)
Varun Beverages 36 36 923.65 20.37 62.34 54.42 7.94 0.27 0.86 2.00 0.67 16 4.69 Hindustan Zinc 12.75
Ambuja
Motherson Sumi 37 42 154.35 6.72 55.84 42.22 4.39 0.95 0.74 3.15 1.50 31 4.29 6.49
Cements
Britannia
Cadila Healthcare 38 34 469.50 14.14 32.26 41.40 4.69 0.72 1.35 1.61 0.28 35 3.63 Industries
4.62
ACC 39 -- 1,665.75 1.82 17.61 23.12 2.76 0.82 1.33 1.68 0.81 43 4.42 Power Grid
4.61
Corp
Hindustan Unilever 40 39 2,367.65 24.49 35.31 76.73 62.86 1.59 3.05 1.34 0.57 41 4.41
NMDC 4.37
Natco Pharma 41 43 896.75 28.25 26.01 35.53 4.34 0.97 1.24 1.67 0.61 15 3.47
Apollo Tyres 42 37 217.30 10.20 33.34 26.45 1.27 1.49 1.25 2.30 1.15 25 3.96
5 Least risky
Torrent Pharmaceuticals 43 44 2,738.95 13.10 37.95 45.89 9.75 1.18 1.20 1.66 0.44 35 3.43 Top 5 stocks with the lowest
HeidelbergCement 44 49 221.35 7.27 17.84 18.73 3.82 2.73 1.06 1.92 1.04 18 4.72 downside risk
Dr Reddy's Alkem
HDFC Asset Management 45 41 2,663.00 13.14 39.34 21.46 3.65 0.78 2.62 2.23 1.14 40 4.53 Laboratories Laboratories
Finolex Industries 46 -- 616.85 9.55 21.45 23.12 3.87 1.63 1.06 2.22 1.09 19 4.58
Infosys 47 48 1,339.70 15.46 16.97 30.70 7.97 1.61 1.83 1.75 0.95 47 4.62 1.17 1.29 1.34 1.43 1.51
Sanofi India 48 46 8,448.90 0.43 43.98 46.39 7.87 4.20 1.09 1.17 0.34 11 4.36
Tech Mahindra 49 47 1004.70 10.74 14.51 21.79 4.03 2.45 1.62 2.13 1.16 47 4.36 Sanofi India Hindustan Cipla
Unilever
Minda Industries 50 45 442.40 18.60 95.74 75.62 6.45 0.09 0.84 2.25 1.05 20 4.50
SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 20 JANUARY 2021. SOURCE: BLOOMBERG IN THE ADJACENT TABLE.
 smart stats
16 The Economic Times Wealth January 25-31, 2021

ETW FUNDS 100

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

LAGGARDS LEADERS

ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are
9.83 18.76
ranked on 3-year returns while debt-oriented hybrid and income funds are Taurus Largecap Equity Nippon India ETF NV20
ranked on 1-year returns. 11.20 18.54
JM Large Cap Kotak NV 20 ETF
RETURNS (%)
Value Research Net Assets Expense 11.66 17.39
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%)
Principal Nifty 100 EW Axis Bluechip
EQUITY: LARGE CAP 12.20 17.18
Axis Bluechip Fund  22,517.33 21.60 29.36 21.15 15.18 17.39 1.78
15.18% Franklin India Bluechip Canara Robeco Bluechip Equity
Canara Robeco Bluechip Equity Fund  1,364.34 21.58 30.20 25.76 14.44 17.18 2.23 THE 3-YEAR 12.45 17.12
RETURN
HDFC Index Fund  1,747.45 22.89 33.24 20.39 12.59 16.52 0.30 Tata Large Cap Mirae Asset Large Cap
OF AXIS
Tata Index Sensex Fund  42.99 22.14 32.15 19.66 12.29 16.03 1.00 BLUECHIP IS
Nippon India Index Fund  126.41 22.83 33.11 20.78 12.24 15.79 0.26 THE HIGHEST
IDFC Nifty Fund  264.16 22.95 33.08 21.10 11.49 15.94 0.76 IN ITS
CATEGORY. Equity: Multi-cap 5-year returns
UTI Nifty Index Fund  3,173.34 23.32 33.32 20.44 11.33 15.91 0.14
HDFC Index Fund Nifty 50 Plan  2,355.42 23.24 33.18 20.03 11.14 15.71 0.30
8.88 19.14
Edelweiss Large Cap Fund  222.59 21.48 30.99 19.71 10.24 15.20 2.49
Nippon India Retirement IIFL Focused Equity
Motilal Oswal Focused 25 Fund *  1,548.07 21.65 31.73 22.00 10.09 14.99 2.15
Sundaram Select Focus Fund  1,185.08 21.85 28.43 16.31 10.03 14.98 2.26 9.09 18.89
Mirae Asset Large Cap Fund  22,093.02 21.39 31.22 18.98 9.41 17.12 1.63 Taurus Starshare (Multi Cap) Quant Active
9.29 18.78
EQUITY: LARGE & MIDCAP
Mirae Asset Emerging Bluechip Fund  14,302.17 25.12 37.08 26.61 11.89 21.17 1.70
11.89% Nippon India Multi Cap Axis Focused 25

Invesco India Growth Opportunities Fund*  3,472.39 20.52 31.36 17.16 9.06 15.55 2.02
THE 3-YEAR 9.48 17.73
RETURN OF HDFC Focused 30 UTI Equity
Kotak Equity Opportunities Fund  4,632.66 20.94 29.34 17.68 8.93 16.25 1.96 MIRAE ASSET
Canara Robeco Emerging Equities Fund  7,312.85 23.17 34.67 25.84 8.60 18.02 1.90 EMERGING 10.70 16.80
LIC MF Large & Mid Cap Fund  930.42 19.73 30.81 14.36 7.17 16.63 2.37 BLUECHIP IS IDFC Multi Cap JM Multicap
Sundaram Large and Mid Cap Fund  1,398.30 21.17 29.77 10.40 7.12 14.47 2.22 THE HIGHEST
IN ITS
Principal Emerging Bluechip Fund  2,418.04 23.18 35.22 22.96 6.18 17.49 2.05
CATEGORY.
EQUITY: MULTI CAP Equity: Mid-cap 3-year returns
Quant Active Fund  133.05 26.51 45.59 48.72 15.45 18.89 2.48
UTI Equity Fund  14,860.64 26.88 41.80 32.91 15.28 17.73 2.05
-0.09 13.70
IIFL Focused Equity Fund *  1,352.72 24.90 35.66 27.22 15.04 19.14 2.18 Aditya Birla Sun Life Mid Cap Axis Midcap
Parag Parikh Flexi Cap Fund  6,392.80 14.56 26.06 31.99 14.52 17.87 1.97 0.03 11.86
Canara Robeco Equity Diversified Fund  3,055.60 19.83 29.90 24.32 12.33 16.64 2.11
Sundaram Mid Cap Quant Mid Cap
Axis Focused 25 Fund  14,357.95 25.21 33.92 21.56 11.55 18.78 1.83
DSP Equity Fund  4,613.17 25.88 32.40 20.34 9.80 16.56 1.93 1.84 8.54
Kotak Standard Multicap Fund  33,461.66 20.99 29.14 15.87 8.88 16.01 1.59 Motilal Oswal Midcap 100 ET Invesco India Mid Cap
SBI Focused Equity Fund*  12,760.97 23.23 26.73 14.01 8.58 16.08 1.81 2.12 7.99
Tata Retirement Savings Fund  949.23 15.66 26.31 16.79 7.22 16.25 2.34 IDBI Midcap DSP Midcap
EQUITY: MID CAP 2.15 7.24
Axis Midcap Fund  8,514.60 21.38 32.50 26.76 13.70 17.92 1.89 13.70% L&T Midcap Kotak Emerging Equity
Invesco India Mid Cap Fund*  1,228.48 23.98 35.45 25.48 8.54 15.88 2.42 THE 3-YEAR
DSP Midcap Fund  9,822.97 20.71 32.04 23.26 7.99 17.28 1.82
RETURN OF
Kotak Emerging Equity Fund  9,016.03 25.27 40.16 21.87 7.24 17.05 1.81
AXIS MID-
CAP FUND IS
Equity: Small-cap 3-year returns
Taurus Discovery (Midcap) Fund*  60.47 18.79 30.52 24.71 6.71 15.85 2.57 THE HIGH-
EST IN ITS -5.43 13.75
EQUITY: SMALL CAP CATEGORY. Aditya Birla Sun Life Quant Small Cap
Axis Small Cap Fund  3,631.90 20.39 41.16 21.76 11.64 17.38 2.03
-4.58 11.64
SBI Small Cap Fund*  6,628.36 26.22 46.12 30.73 5.08 19.34 1.92
Sundaram Small Cap Axis Small Cap
Nippon India Small Cap Fund  10,916.19 25.84 44.66 25.15 2.38 16.60 2.06
-3.78 5.08
EQUITY: VALUE ORIENTED
HSBC Small Cap Equity SBI Small Cap
Kotak India EQ Contra Fund  875.90 22.41 32.19 18.65 10.63 16.57 2.33
UTI Value Opportunities Fund  5,202.11 25.56 35.08 22.48 9.99 14.44 2.14
-1.93 3.14

L&T Emerging Businesses Union Small Cap
Invesco India Contra Fund* 6,010.40 24.03 31.18 23.98 8.76 17.13 2.05
Tata Equity PE Fund  4,620.28 17.37 26.90 16.11 4.33 15.88 1.96 -1.20 2.41
Franklin India ICICI Prudential Smallcap
EQUITY: ELSS
Quant Tax Plan  34.59 28.89 52.76 54.73 15.30 21.14 2.48 15.30%
Canara Robeco Equity Tax Saver Fund
Mirae Asset Tax Saver Fund


1,475.66
5,489.29
21.65
23.99
35.00
37.68
32.15
26.20
14.46
11.96
17.39
21.36
2.23
1.86
THE 3-YEAR
RETURN OF
Hybrid: Aggressive 5-year returns
Axis Long Term Equity Fund  27,180.98 26.02 34.11 20.84 11.62 16.32 1.62 QUANT TAX
JM Tax Gain Fund  48.40 27.03 36.72 20.11 10.35 17.02 — PLAN IS 7.05 15.78
Invesco India Tax Plan*  1,385.53 21.39 30.80 21.68 9.34 15.38 2.31
THE HIGH- Nippon India Equity Hybrid Quant Absolute
EST IN ITS
BOI AXA Tax Advantage Fund  375.60 20.96 37.81 33.60 8.77 17.63 2.58
CATEGORY. 9.83 14.70
DSP Tax Saver Fund  7,424.68 25.37 32.01 19.13 8.25 16.18 1.85 PGIM India Hybrid Equity Tata Retirement Savings
Taurus Tax Shield Fund*  73.71 17.58 26.87 16.85 7.31 15.03 2.47
Tata India Tax Savings Fund  2,480.85 22.21 32.12 16.52 6.77 15.02 2.04
9.92 14.65
Tata Hybrid Equity Mirae Asset Hybrid Equity
HYBRID: EQUITY SAVINGS 10.07 14.63
Axis Equity Saver Fund  702.44 10.40 14.22 11.95 8.47 9.34 2.39 Franklin India Life Stage Canara Robeco Equity Hybrid
Edelweiss Equity Savings Fund  86.70 8.09 10.75 14.05 8.12 9.47 1.68
10.94 14.55
Kotak Equity Savings Fund  1,372.56 7.11 11.06 11.40 7.65 9.18 2.21
Aditya Birla Sun Life Equity Principal Hybrid Equity
Principal Equity Savings Fund  55.12 11.66 15.58 17.29 7.64 9.07 2.35
ANNUALISED RETURNS IN % AS ON 20 JAN 2021.
 smart stats
The Economic Times Wealth January 25-31, 2021 17

ETW FUNDS 100 1 Top 5 SIPs

RETURNS (%)
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio Top 5 equity schemes based
ICICI Prudential Equity Savings Fund  1,047.76 8.83 10.91 5.17 6.53 9.25 1.51 on 10-year SIP returns
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) SBI Small Cap
BNP Paribas Substantial Equity Hybrid Fund  501.68 18.17 21.80 17.06 11.44 — 2.42 11.44% 22.87
Canara Robeco Equity Hybrid Fund  4,169.56 15.73 22.75 21.18 11.30 14.63 1.97 THE 3-YEAR Mirae Asset Emerging Bluechip
Mirae Asset Hybrid Equity Fund  4,378.85 17.62 24.16 17.79 9.58 14.65 1.86 RETURN OF
DSP Equity & Bond Fund  6,193.97 19.28 24.60 18.15 9.19 14.07 1.87 BNP PARIBAS 22.81
SUBSTAN- Canara Robeco Emerging Equities
SBI Equity Hybrid Fund*  35,655.46 19.56 22.77 15.07 9.08 13.21 1.66
TIAL EQUITY
Sundaram Equity Hybrid Fund  1,645.79 17.60 21.80 13.39 8.81 13.58 2.14 FUND IS THE 20.25
HDFC Children's Gift Fund  4,001.92 17.09 25.09 18.95 8.10 14.15 1.95 HIGHEST
HDFC Retirement Savings Fund  530.65 17.61 25.73 17.79 7.97 — 2.72 IN CATEGORY. Nippon India Small Cap
Tata Retirement Savings Fund  1,314.72 13.81 22.93 17.03 7.25 14.70 2.20 20.10
Principal Hybrid Equity Fund  1,102.37 17.76 24.70 18.70 5.84 14.55 2.23
Quant Active
HYBRID: CONSERVATIVE (DEBT-ORIENTED) 18.77
Kotak Debt Hybrid Fund  343.74 8.55 11.99 15.06 8.55 10.22 2.27
Baroda Conservative Hybrid Fund*  30.39 4.79 6.22 14.26 9.49 9.17 2.12 SIP: SYSTEMATIC % ANNUALISED RETURNS
INVESTMENT PLAN AS ON 20 JAN 2021
Canara Robeco Conservative Hybrid Fund  370.46 5.55 8.43 13.78 9.22 9.16 1.97
Tata Retirement Savings Fund  163.45 5.13 8.36 11.97 6.87 9.84 2.26

Top 5 MIPs
ICICI Prudential Regular Savings Fund
Indiabulls Savings Income Fund*


2,733.60
13.56
5.09
5.95
8.95
7.86
11.29
7.32
8.60
5.54
10.44
8.56
1.80
2.00 2 Top 5 MIP schemes based on
DEBT: MEDIUM- TO LONG-TERM

3-year SWP returns
IDFC Bond Fund Income Plan
SBI Magnum Income Fund* 
705.37
1,765.95
0.92
1.34
1.45
3.09
11.27
11.13
9.41
9.21
8.68
9.26
1.97
1.46
11.27%
Baroda Conservative Hybrid
THE 1-YEAR
ICICI Prudential Bond Fund  4,081.42 0.96 2.29 10.87 8.76 8.56 1.20
RETURN OF 10.32
Nippon India Income Fund  422.29 1.00 1.42 10.37 9.36 8.71 1.73 IDFC BOND
FUND INCOME Canara Robeco Conservative Hybrid
DEBT: MEDIUM-TERM
IS THE HIGH-
SBI Magnum Medium Duration Fund*  6,887.07 1.60 3.95 11.55 9.63 10.01 1.26 9.85
EST IN ITS
IDFC Bond Fund Medium Term Plan  4,228.43 1.04 1.97 10.09 8.57 8.09 1.44 CATEGORY. ICICI Prudential Regular Savings
ICICI Prudential Medium Term Bond Fund  6,207.31 1.66 4.30 9.85 8.12 8.20 1.71
9.29
HDFC Medium Term Debt Fund  2,618.87 1.88 4.34 9.50 8.15 8.26 1.34
Indiabulls Income Fund*  16.37 1.18 2.11 8.72 8.60 7.86 0.90 Kotak Debt Hybrid

DEBT: SHORT-TERM 9.11

HDFC Short Term Debt Fund  17,927.79 1.35 3.00 10.41 9.05 8.59 0.74 Nippon India Retirement
ICICI Prudential Short Term Fund  23,696.47 1.45 2.98 10.19 8.60 8.51 1.16 8.68
Axis Short Term Fund  14,991.72 1.07 2.50 9.52 8.57 8.23 1.01
Kotak Bond - Short Term  19,644.21 1.03 2.43 9.34 8.44 8.07 1.14 SWP: SYSTEMATIC % ANNUALISED RETURNS
WITHDRAWAL PLAN AS ON 20 JAN 2021
IDFC Bond Fund Short Term Plan  14,041.73 0.69 2.11 8.90 8.42 7.96 0.81
L&T Short Term Bond Fund  4,445.20 0.87 1.98 8.90 8.28 7.85 0.75

DEBT: DYNAMIC BOND

12.57%
IDFC Dynamic Bond Fund
DSP Strategic Bond Fund


3,100.48
1,778.04
1.02
1.32
1.81
1.80
12.57
12.36
10.08
9.63
9.19
8.58
1.67
1.19 THE 1-YEAR
RETURN OF
3 Mid Cap : Cash holdings
Axis Dynamic Bond Fund  1,488.57 0.98 1.67 11.60 9.60 9.08 0.67
IDFC DYNAMIC
ICICI Prudential All Seasons Bond Fund  5,289.94 1.64 3.18 11.50 9.26 9.97 1.59
BOND FUND IS 6.71
Kotak Dynamic Bond Fund  2,606.70 1.66 3.09 11.21 9.84 9.60 1.16 THE HIGH- 5.98
SBI Dynamic Bond Fund*  2,659.08 0.95 1.46 9.73 9.26 9.23 1.65 EST IN ITS 4.68 4.30
Mirae Asset Dynamic Bond Fund  146.09 0.62 0.91 9.65 8.47 — 1.45 CATEGORY.
3.50
DEBT: CORPORATE BOND
HDFC Corporate Bond Fund  29,219.84 1.38 2.83 11.28 9.34 9.00 0.60
Aditya Birla Sun Life Corporate Bond Fund  24,939.53 1.21 2.82 11.16 9.30 8.87 0.45
UTI Corporate Bond Fund  2,854.60 0.93 2.44 10.23 — — 0.57
ICICI Prudential Corporate Bond Fund  19,716.29 1.30 2.63 9.99 8.80 8.47 0.59 Expense as on 31 December 2020 DSP HDFC Invesco Taurus Franklin
*Expense as on before 31 Dec 2020
Midcap Mid-Cap India Mid Discov- India
Kotak Corporate Bond Fund  8,181.41 1.13 2.74 9.02 8.74 8.47 0.62 Oppor- Cap ery (Mid- Prima
Returns as on 20 January 2021
DSP Corporate Bond Fund  1,902.21 0.69 2.19 8.74 — — 0.52 tunities cap)
Assets as on 31 December 2020
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Rating as on 31 December 2020 % OF ASSETS AS ON 31 DECEMBER 2020
Did not find your fund here?
Log on to www.wealth.economictimes.com for an exhaustive list.

Methodology EQUITIES (figures over the past one year)

4 Debt: Liquid
The Top 100 includes only those funds that have a 5- or Large-cap: Mostly invested in large-cap companies.
4-star rating from Value Research. The rating is determined
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 0.17
0.18
0.19 0.19
distribution: Mid-cap: Mostly invested in mid-cap companies.
Small-cap: Mostly invested in small-cap companies.
RAISER 0.15
  Top 10%
  Next 22.5% Tax planning: Offer tax rebate under Section 80C.



 Middle 35%
 Next 22.5%
 Bottom 10%
(Not covered
in ETW Funds
100 listing)
International: More than 65% of assets invested abroad.
Income: Average maturity varies according to objective.
Gilt: Medium- and long-term; invest in gilt securities.
`16.17
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more
LAKH CRORE
less than three years old have been excluded. This ensures than 60%. Canara IDBI BNP Franklin Union
that all the funds have existed long enough to be tracked for was the total AUM of Robeco Liquid Paribas India Liquid
Debt-oriented aggressive: Average equity exposure
consistency of performance. Given the focus on long-term individual investors in Liquid Liquid Liquid
between 25-60%.
investing, liquid funds, short-term funds and FMPs are not mutual funds as of December
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure
less than 25%. 2020, an increase of 11.14% % AS ON 31 DECEMBER 2020
the growth option of funds that reinvest returns instead of
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity over December 2019.
and derivatives. % EXPENSE RATIO IS CHARGED ANNUALLY.
Despite these rigorous filters, the list includes 2/3 funds of
METHODOLOGY OF TOP 100 FUNDS ON
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per WWW.WEALTH.ECONOMICTIMES.COM
The fund categories are: market conditions.
 loans and deposits
18 The Economic Times Wealth January 25-31, 2021

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 2019, all banks have made the transition
Equitas Small Finance Bank 6.60 10,677
to external benchmarks for pricing new home loans. Most banks have
Indusind Bank 6.50 10,666
RBL Bank 6.50 10,666
picked the RBI repo rate as the external benchmark.
Ujjivan Small Finance Bank
DCB Bank
6.50
6.25
10,666
10,640
REPO RATE: 4%
FOR SALARIED FOR SELF EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
Equitas Small Finance Bank 6.75 11,432 Kotak Mahindra Bank 6.75 6.75 8.35 6.85 8.45
AU Small Finance Bank 6.50 11,376
Union Bank of India 6.80 6.80 7.60 6.85 7.65 1 Nov 2020
DCB Bank 6.50 11,376
Bank of Baroda 6.85 6.85 8.20 6.85 8.20 1 Nov 2020
Indusind Bank 6.50 11,376
RBL Bank 6.50 11,376 Central Bank of India 6.85 6.85 7.30 6.85 7.30 15 Oct 2020

TENURE: 3 YEARS Axis Bank 6.90 6.90 8.40 7.00 8.55 1 Oct 2020
Equitas Small Finance Bank 7.00 12,314 Bank of Maharashtra 6.90 6.90 8.35 7.15 8.45 7 Jan 2021
AU Small Finance Bank 6.75 12,224 Canara Bank 6.90 6.90 8.85 6.95 8.90 7 Jan 2020
DCB Bank 6.75 12,224
ICICI Bank 6.90 6.90 7.95 6.95 8.05 22 May 2020
RBL Bank 6.75 12,224
Indusind Bank 6.50 12,134
IDBI Bank 6.90 6.90 8.40 7.15 9.90 12 Dec 2020
Punjab & Sind Bank 6.90 6.90 7.60 7.10 7.90 30 June 2020
TENURE: 5 YEARS
DCB Bank 6.75 13,975 Bank of India 6.85 6.95 8.20 6.95 8.35 22 Sept 2020
Equitas Small Finance Bank 6.75 13,975 SBI Term Loan 6.65 6.95 7.35 7.10 7.50 1 July 2020
AU Small Finance Bank 6.50 13,804 Indian Bank 6.80 7.00 7.45 7.05 7.50 1 July 2020
Indusind Bank 6.50 13,804
Indian Overseas Bank 6.85 7.05 7.30 7.05 7.30 1 July 2020
RBL Bank 6.40 13,736
Punjab National Bank 6.80 7.15 7.75 7.15 7.75 1 Sept 2020
UCO Bank 6.90 7.15 7.25 7.15 7.25 27 May 2020
Top five senior citizen bank FDs J & K Bank 7.20 7.30 7.60 7.30 7.60 1 Jan 2021
Interest rate (%) What `10,000
TENURE: 1 YEAR compounded qtrly will grow to
SBI Max Gain 6.65 7.30 7.70 7.45 7.85 1 July 2020
Equitas Small Finance Bank 7.10 10,729 Federal Bank 7.65 7.65 7.75 7.70 7.80 16 Dec 2020
Indusind Bank 7.00 10,719 Karur Vysya Bank 7.20 7.80 9.65 7.80 9.65 1 June 2020
RBL Bank 7.00 10,719
Dhanlaxmi Bank 7.00 7.85 8.50 7.85 9.00 1 Jan 2021
Ujjivan Small Finance Bank 7.00 10,719
DCB Bank 6.75 10,692

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

Equitas Small Finance Bank 7.25 11,545
TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
AU Small Finance Bank 7.00 11,489
DCB Bank 7.00 11,489 @ 7% 1,980 1,161 899 775 707
Indusind Bank 7.00 11,489
RBL Bank 7.00 11,489 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
@ 9% 2,076 1,267 1,014 900 839
Equitas Small Finance Bank 7.50 12,497
AU Small Finance Bank 7.25 12,405 @ 10% 2,125 1,322 1,075 965 909
DCB Bank 7.25 12,405
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
RBL Bank 7.25 12,405 FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
Indusind Bank 7.00 12,314

TENURE: 5 YEARS Post office deposits Interest (%)

Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 7.25 14,323
Equitas Small Finance Bank 7.25 14,323 Sukanya Samriddhi Yojana 7.60 250 1.50 lakh p.a. One account per girl child 80C
AU Small Finance Bank 7.00 14,148
Senior Citizens' Savings Scheme 7.40 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
Indusind Bank 7.00 14,148
RBL Bank 6.90 14,078 Public Provident Fund 7.10 500 1.5 lakh p.a. 15-year tenure, tax-free returns 80C

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 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 5.5-6.7 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 6.75 13,975
Equitas Small Finance Bank 6.75 13,975 Single 4.5 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
AU Small Finance Bank 6.50 13,804 6.60 1,000
Scheme
Joint 9 lakh 5-year tenure, monthly returns Nil
Indusind Bank 6.50 13,804
RBL Bank 6.40 13,736 Recurring deposits 5.80 100 No limit 5-year tenure Nil

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

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 20 January 2021 # Benefit available only for 5-year deposit
 market watch
The Economic Times Wealth January 25-31, 2021 19

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

Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
39,854 49,460 46,410 67,160 1,000.92 1,128.83 58.34 53.24
21 JAN 2020 21 JAN 2021 21 JAN 2020 21 JAN 2021 21 JAN 2020 21 JAN 2021 21 JAN 2020 20 JAN 2021

PRICE OF 10 GM GOLD
PRICE OF 1 KG SILVER

CHANGE
X 1 WEEK 1.32% 1 WEEK 3.64% 1 WEEK 0.59% 1 WEEK -0.62%
X 1 YEAR 24.1% 1 YEAR 44.71% 1 YEAR 12.78% 1 YEAR -8.74%
Gold gained by 1.32% during the last Silver jumped up by 3.64% during the last Though precious metal demand Though firmed up during the first
week based on the hopes of a massive week on hope that Joe Biden's clean pushed it up, weak industrial demand few days, crude oil fell by 0.62%
US stimulus package under the new energy push may increase silver demand pulled it down and platinum edged up during the last week because of
Joe Biden administration. from photovoltaic cell industry. only by a bit during the past week. an increase in the US inventory.

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)

Bhandari Hosiery 4.15 2.22 207.41 11.96 712.37 60.80 Shalimar Productions 0.54 10.20 10.20 9.61 9,760.23 53.15
Visagar Polytex 1.82 25.52 152.78 0.22 -64.51 53.27 Cressanda Solutions 0.44 18.92 41.94 1.92 6,785.40 13.36
Baroda Extrusion 0.78 23.81 116.67 0.84 1,291.13 11.62 CHL 6.28 -0.32 -4.85 0.01 4,883.77 34.41
Usha Martin Education 5.10 27.50 113.39 0.36 200.65 13.46 Shree Bhawani Paper 3.35 -4.29 -1.47 0.01 4,058.12 11.67
Tamilnadu Telecom 3.79 26.76 104.86 0.08 1,095.20 17.31 Saptarishi Agro Ind. 9.45 5.00 5.00 0.19 2,612.62 32.15
Sharp Investments 0.43 13.16 104.76 0.73 282.46 10.41 Sun and Shine World. 3.64 -2.93 19.34 0.04 1,947.22 18.20
Indian Infotech and Soft. 0.53 20.45 103.85 28.03 5.51 53.30 Sun Techno Overseas 0.24 14.29 4.35 18.10 1,752.89 15.66
Rohit Ferro-Tech 2.43 15.17 102.50 0.26 699.24 27.65 Baroda Extrusion 0.78 23.81 116.67 0.84 1,291.13 11.62
Himachal Fibres 2.55 8.97 102.38 0.07 46.35 22.01 Tamilnadu Telecom 3.79 26.76 104.86 0.08 1,095.20 17.31
Indosolar 3.24 25.58 100.00 4.20 187.59 120.55 Garden Silk Mills 7.63 -10.13 -38.71 1.97 809.68 32.11

Top price losers Top volume losers

Garden Silk Mills 7.63 -10.13 -38.71 1.97 809.68 32.11 SKIL Infrastructure 3.95 8.22 58.63 1.39 -86.67 85.55
Vikas Multicorp 4.63 -6.65 -26.27 78.85 144.25 307.20 Reliance Home Finance 2.41 -2.43 -8.71 5.47 -63.42 116.90
Sagar Productions 6.49 -5.39 -25.83 1.04 181.79 26.02 Peninsula Land 6.41 -0.62 1.26 1.01 -59.89 178.97
Toyam Industries 2.94 -13.78 -22.63 4.16 -52.12 62.48 Hindustan Construction 8.44 -2.88 0.60 12.68 -58.31 1,276.97
Videocon Industries 5.75 -8.00 -19.69 8.98 -33.26 192.31 Reliance Naval & Engg. 2.94 -4.23 -3.29 11.75 -57.31 216.85
Sanwaria Consumer 1.13 1.80 -16.91 24.35 126.73 83.18 Jaypee Infratech 1.93 -4.93 1.58 7.34 -56.32 268.06
Rolta India 4.62 -21.69 -16.00 2.07 13.21 76.64 IFCI 9.14 -5.68 3.98 11.32 -54.46 1,732.93
Toyam Industries 2.94 -13.78 -22.63 4.16 -52.12 62.48
Hindustan Motors 6.45 -17.31 -14.46 1.24 29.33 134.59
Urja Global 8.11 -6.78 34.27 24.70 -51.05 451.89
Generic Pharma 9.42 -4.85 -12.78 3.17 116.64 204.32
Suncare Traders 0.81 -2.41 -2.41 42.25 -50.36 13.64
PMC Fincorp 0.48 -12.73 -12.73 16.20 -28.70 24.44

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 20 JANUARY 2021. SOURCE: ETIG DATABASE AND BLOOMBERG.
 mutual funds
20 The Economic Times Wealth January 25-31, 2021

MIRAE ASSET TAX SAVER

Impressive record in 5 years

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

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

Point to point returns (%)

BASIC Financials 38.70

FUND BENCHMARK CATEGORY AVERAGE FACTS Technology 11.24

Energy 9.61
23.71 DATE OF LAUNCH
20.05 20.74 28 DECEMBER 2015 FMCG
17.48 8.51
15.56 CATEGORY
13.78 Healthcare
11.67 EQUITY 7.52
8.76
6.31 TYPE
The portfolio is tilted towards financials, with
ELSS
sizeable presence in tech and energy.
AUM*
1-YEAR 3-YEAR 5-YEAR ` 5,489 cr
BENCHMARK Top 5 stocks in portfolio (%)
The fund has comfortably outperformed AS ON 19 JAN 2021
index and peers in recent years. NIFTY 200 TOTAL HDFC Bank 9.71
RETURN INDEX
Infosys 7.11

ICICI Bank
Rolling returns (%) FUND BENCHMARK
WHAT IT 6.94

1-YEAR
15.00 COSTS Axis Bank
Tata
4.71

4.01
9.80 Consultancy
NAV**
GROWTH OPTION
The portfolio is well diversified yet takes
12.62 `24.277 heavy positions in its top bets.
3-YEAR
DIVIDEND
11.47
`19.461
MINIMUM INVESTMENT
Recent portfolio changes
19.31 `500 New Entrants
5-YEAR
10.92 MINIMUM SIP AMOUNT Britannia Inds, ICICI Lombard General Insurance,
`500 Torrent Pharma (Nov). Muthoot Finance (Dec)
The fund has built a strong track record of AS ON 19 JAN 2021 EXPENSE RATIO*** (%)
outperformance in a short span of time. 1.86 Complete Exits
EXIT LOAD IIFL Securities, MindTree, Route Mobile (Oct).
FIGURES DENOTE DAILY ROLLING RETURNS OVER LAST 10 YEARS. NOTE: DIFFERENT BENCHMARK (S&P BSE 500
TRI) IS USED DUE TO NON AVAILABILITY OF STATED BENCHMARK DATA. 0% for redemption Lupin (Nov). Kajaria Ceramics, NTPC (Dec)
within 30 days
Additions

WHERE THE FUND INVESTS *AS ON 31 DEC 2020

**AS ON 19 JAN 2021
Ashok Leyland, Axis Bank, Dabur India,
Gujarat State Petronet, HDFC Bank, ICICI
***AS ON 31 DEC 2020
Bank, JK Cement, Maruti Suzuki, MRF, Natco
Portfolio asset Fund Pharma, Orient Electric, Prince Pipes &
Fittings, Reliance Industries, Tata Steel, Torrent
allocation style box Pharmac, UTI AMC (Dec)
Growth Blend Value
How risky is it?
Large

Equity 99.02%
CAPITALISATION

Fund Category Index

Large-cap 72.58%
Medium

Standard Deviation 22.93 22.37 22.83

Mid-cap 20.12%
Small-cap 7.31% Sharpe Ratio 0.35 0.14 0.26

FUND
Small

Debt & Cash 0.98% Mean Return 12.86 7.85 10.60

INVESTMENT STYLE MANAGERS BASED ON 3-YEAR PERFORMANCE.

The fund takes a large cap tilt, like NEELESH SURANA The fund’s risk-return profile is one
many peers in its category.
TENURE: 5 YEARS of the best among peers.
Source: Value Research

This tax saving fund has Bluechip—with emphasis on more from Emerging Bluechip, track record within a short span
Should recently completed five years of quality of earnings, without managed by the same fund of time, with a superior risk-

You operations. It adopts the same

investing ethos of its larger
overpaying for it. In terms of
market cap positioning, it lies
manager. Given its positioning,
it tends to give higher weight to
return profile in its category.
The proven capabilities of its

Buy siblings—Mirae Asset Large

Cap and Mirae Asset Emerging
at the intersection of the two
offerings but borrows ideas
large caps compared to mid cap
ideas. It has built an impressive
fund manager provide comfort
for the long haul.
 pick of the week
The Economic Times Wealth January 25-31, 2021 21

Natco Pharma: On a growth trajectory

With the fear of the pandemic going away, sales from other divisions are expected to normalise soon

N
atco Pharma has surprised the market with y- anti-viral, immune-suppression, etc and expect to come out
o-y revenue and net profit growth of 65% and with 1-2 complex product launches soon. To increase its reach,
Fundamentals
70% respectively in the second quarter of 2020- Natco also plans to market products of established players in CONSENSUS
ACTUAL
ESTIMATE
21. Pandemic related demand jump in its key the generic space through tie-ups.
2019 2020 2021 2022
product Tamiflu and Revlimid settlement have The recent diversification of its export to markets like
Revenue (` cr) 20,945.00 19,150.00 23,519.30 24,801.60
boosted the second quarter numbers. This ‘above average Brazil, Canada, China, etc, are also doing well. Strong pan-
growth’ should not be taken as the norm. However, analysts demic related sales happened in Brazil and Canada in the Ebitda (` cr) 7,948.00 5,826.00 7,507.30 8,557.80

believe that this research and development focused mid-size second quarter. Though the rate of growth will be moderate, Net profit (` cr) 6,349.50 4,493.90 5,512.20 5,875.10
pharma company will repeat pandemic related revenues will EPS (`) 34.36 24.63 33.26 32.43
good performance in the coming remain strong. Because there is
quarter as well, mainly because Analysts’ views no significant improvement in the Valuations PBV PE
DIVIDEND
YIELD (%)
normalisation of sales in other number of Covid cases in coun- Natco Pharma 4.33 31.22 0.75
segments would balance modera- 2 7 tries like the US, Brazil, Canada, Biocon 7.91 82.30 0.00
Sell Buy
tion of growth from Covid related etc and therefore, pandemic relat- Abbott India 12.66 64.42 1.73
segments. Its third quarter rev- ed drugs such as Tamiflu should Gland Pharma 9.88 46.59 0.00
enues are expected to grow 18% y- continue to attract good revenues Torrent Pharmaceuticals 9.61 38.75 1.17
o-y, primarily driven by exports. in future also.
Due to improvement in earnings 6 After the recent jump up, its
before interest, tax, depreciation Hold valuations are on the higher side
Latest brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
and amortisation (Ebitda) margin compared to historical averages.
15 Jan Investec Buy 1,100
triggered by the increased share However, its valuation (see table )
from the US markets, Natco is also is not high compared to other mid 13 Jan Anand Rathi Hold 946
expected to report 37% y-o-y net Natco’s recent diversification of its exports to markets like cap pharma companies. 11 Jan Axis Capital Add 1,020
profit growth in the third quarter. Brazil, Canada, China, is doing well and is expected to do so 7 Jan Nirmal Bang Buy 1,099
in future as well. Besides, its valuations despite the recent
Domestic business de-grew by Selection Methodology: We pick 13 Dec ICICI Securities Hold 974
jump are not high compared to other pharma companies.
11% y-o-y in the second quarter on This has made the company a favourite of analysts.
up the stock that has shown the
account of lower oncology and hep- maximum increase in “consensus
atitis-C sales. Impact was severe analyst rating” during the last one Relative performance 148.60
in the oncology segment as cancer patients were deferring hos- month. Consensus rating is arrived at by averaging all analyst 100 MARKET PRICE: `896.75
pitalised treatments due to Covid fears. With a basket of more recommendations after attributing weights to each of them (ie
than 30 products, Natco is a leading oncology player in India. 5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 1 for strong
139.35
Since the pandemic induced fear have receded, sales from sell) and any improvement in consensus analyst rating indi-
other divisions should also normalise in the coming quarters. cates that the analysts are getting more bullish on the stock.
Natco has generated a niche market for itself in the US with To make sure that we pick only companies with decent analyst SENSEX
the help of its focus on high end limited entry products and se- coverage, this search will be restricted to stocks with at least 120.09
lective tie ups. It also has a strong pipeline there and has filed 10 analysts covering it. You can see similar consensus analyst
21 JAN 2020 ET PHARMA NATCO PHARMA 21 JAN 2021
more than 55 ANDA applications. Most of these are for niche rating changes during the last one week in ETW 50 table.
Natco Pharma is compared with ET Pharma. Stock price and index values
products. Its US business now is focused in areas like cancer, —Narendra Nathan normalised to a base of 100. Source: ETIG and Bloomberg.

WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
*STOCK PRICES AS ON 21 JAN

STOCK ADVICE COMMENT

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

Prestige Estates has signed an agrement with Blackstone for part sale of its commercial,
Prestige Estates J M Financial Buy 280 370 32 retail and hospitality assets at an enterprise value of `9,160 crore. Post deal, it plans to
become net debt-free company and enter into a new phase of development.

Maintain ‘buy’ because earnings growth momentum is likely to sustain in the third quarter. The
Coromandel International Motilal Oswal Buy 852 1,090 28 structural story, i.e. farmers shifting from urea to complex fertilisers, also remains intact.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Maintain ‘sell’ as the current valuations already factor in the normalised results in 2021-22. There is
Bajaj Finance Axis Sec Sell 5,117 4,350 -15 also uncertainty over impact from RBI’s NBFC norms on the company’s operating and return ratios.
Maintain ‘sell’ rating considering dependency on top client, anticipated subpar revenue
Mindtree Emkay Sell 1,757 1,580 -10 growth, unsustainable margins and rich valuations.
Despite strong third quarter numbers and accelerating growth and margin profile in near
L&T Technology Services HDFC Sec Reduce 2,528 2,175 -14 term, maintain ‘reduce’ as valuations more than adequately factor in the recovery curve.
Though theatres are allowed to operate in majority of states, availability of content and lower
PVR Geojit Reduce 1,542 1,403 -9 footfall is dragging recovery. ‘Reduce’ due to current high valuation and slower pace of recovery.
Maintain ‘reduce’ rating due to sharp run-up in stock price and unattractive valuations. Volatile
Hindustan Zinc Prabhudas Lilladher Reduce 283 260 -8 ore grade–due to increase in share of mines having low grade of ore–is another concern.
 your feedback & more...
22 The Economic Times Wealth January 25-31, 2021

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, ‘Best about the family or any other
ways to save tax’. In addition to the important decisions relating to
various tax saving schemes you
have highlighted, one can also take Insightful analysis finances. It’s important to have
this understanding as I am making
advantage of the tax deduction investment decisions for all my
permitted by the government for
donations made to certain charitable
on tax saving family members.
Unnati Shah
organisations. When made to worthy This refers to the cover story, ‘Best
causes, the RoI on such donations is ways to save tax’. Thanks for the This refers to the article, ‘Reduce
immeasurable. article. It was a great and insightful number of schemes to streamline
V. Nandakumar
analysis of the tax saving options. portfolio’. The investment market is a
It will be very helpful for me kind of a speculation market, so there
This refers to the story, ‘6 ways to reduce personally as I was looking for new must be scrutiny of these schemes
construction costs’. I think the best tax saving options other than the before investing. Experts should assist
way to reduce the cost is involvement conventional options like bank FDs and guide the new investors who
throughout the process and not relying and PPF. are unaware of the market tactics.
solely on contractor or engineer or S. Eshwar Government should also help raise
any third party. It will save you a lot of awareness and educate new investors.
money as well as help you maintain your R. K. Bansali
peace of mind. approach of someone whom she met respect’ is a good story with no value
Varsha Singh conversing with her. This article idoes addition. A narrative like this will be more Corrigendum
not depict reality as it is not relatable. appropriate for children. The line in the Smart Things to
The article, ‘Your money deserves We hardly come across such super rich Manoj Kumar Patel Know section should have read:
respect’ by Uma Shashikant is just people in India who are indulging in such Exemption: One need not pay any
a work of fiction, not for any reader spending without control. I have read Uma Shashikant’s article tax on such income. Interest income
or even an average Indian who does Murali A. on financial planning . I appreciate the on PPF and REC tax-free bonds is
not know anything about money. It deep thinking and the practical ways fully exempt from tax. The error is
has been written with a stereotype The article titled ‘Your money deserves with which she approaches life, be it regretted.

REALTY Residential area and key job hub

Besides excellent connectivity, the area boasts reputed healthcare facilities and proximity to retail hubs.
HOT SPOT
SUPPLY BY BHK
LOCALITY SNAPSHOT
17%
HADAPSAR, PUNE 1 BHK

Prominent residential area comprising major industrial estates and IT SEZ 2 BHK 47%
Key employment hubs are Magarpatta City SEZ, SP Infocity and Hadapsar Industrial Area
Excellent connectivity via NH-65, Magarpatta Road (SH-27) and Hadapsar Railway Station 3 BHK 25%
Reputed healthcare options include Noble Hospital, Sahyadri Super Specialty Hospital, etc.
Proximity to known retail hubs such as Seasons Mall, Amanora Mall and Brand Factory Above 3 BHK 11%
Consumer preference by
Mundhwa Keshav Nagar
PRICE RANGE LOCALITY VALUES budget segment (`)
`4,100-9,900/ sqft
Hadapsar
Price (`/sqft) : 4,400-7,800 Below 50 lakh
24% 25%
Rent (`/month) : 17,800-31,600 50-75 lakh
75 lakh-1crore
Magarpatta 23% 1-1.25 crore
Keshav Nagar 10% 18%
Airport: 14 km Above 1.25 crore
Hadapsar Price (`/sqft) : 5,000-7,600
Railway station: Rent (`/month) : 16,300-26,100
6 km Consumer preference by
NH-65: 1 km Magarpatta City covered area (sq ft)
Price (`/sqft) : 6,700-9,900
Above
1 BHK 2 BHK 3 BHK
3 BHK
Rent (`/month) : 31,700-49,900 19% 16% Below 1,000
620 sq ft 1,030 sq ft 1,570 sq ft 1,000-1,250
3,560 sq ft 11% 18%
`35
lakh (avg)
`65
lakh (avg)
1.11
`crore (avg)
2.98
`crore Mundhwa
Price (`/sqft) : 5,000-7,600 25%
1,250-1,500
1,500-1,750
(avg) Above 1,750
Rent (`/month) : 16,600-26,500 11%

Schools 10+ Hospitals 10+ Restaurants 20+ Banks 20+ Grocery Stores 20+ Petrol Pumps 5+ In dia’s No. 1 P ropert y Sit e

The Economic Times Wealth is available at an invitation price of `8/issue. To book your copy, contact your newspaper vendor or call 022-39898090; Email: crm.mumbai@timesgroup.com; SMS ETWS to 58888

The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data
before publication. In spite of this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this
newspaper, The Economic Times Wealth will not be held responsible or liable. The content hereof does not constitute any
form of advice, recommendation or arrangement by the newspaper. The Economic Times Wealth will not be liable for any
direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers are
recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions.
PUBLISHED FOR THE PROPRIETORS, Bennett, Coleman & Co Ltd by R.Krishnamurthy at The Times of India Building, Dr. D.N. Road, Mumbai 400001. Tel. No.: (022) 6635 3535,
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reserved. RNI No.: MAHENG/2014/57046. VOLUME 08 NO. 04