THE ECONOMIC TIMES WILL YOU

GAIN FROM
PAY-AS-YOU-
DRIVE MOTOR
INSURANCE?
P11
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | July 18-24, 2022 | 24 pages | `8

YOUR
TAX FILING
CHECKLIST These nine steps will help you prepare your tax
return and ensure smooth filing. P2

How to Five Should

balance stocks that you opt
saving and resisted for FMPs
spending downturns this time?
P7 P8 P10
 cover story
02 The Economic Times Wealth July 18-24, 2022

You have

YOUR
to file tax
returns if…

TAX FILING
CHECKLIST Your gross total
income (before

These nine steps will help you

deductions and ex-
emptions) exceeded

prepare your tax return and the basic exemption

limit of `2.5 lakh
ensure a smooth filing. (`3 lakh for senior
citizens and `5 lakh
for very senior citi-
zens under the old
tax regime).

Your total sales,

turnover, or gross
receipts in business
exceeded `60 lakh.

Your total gross

receipts from
profession exceeded
`10 lakh.

You spent more than

`2 lakh on overseas
travel.

You deposited `50

lakh in a savings
bank account or `1
crore in a current
bank account.

Your electricity bills

aggregated more
PHOTOS: GETTY IMAGES

than `1 lakh

You have foreign

assets or income or
signing authority
in a foreign bank
By Babar Zaidi very easy in recent years. If everything is tax forms now require the assessee to give account.

A
s the last date for filing tax returns
approaches, many taxpayers are
hoping that the deadline will be
extended. Our advice is not to wait
till the last few days to file your
return. Whether there is an extension or not,
it is always better to get these things out of
the way as soon as possible. If you have got all
the necessary documents, why do you want to
wait till the last day?
Besides, filing your return has become
handy, the whole process does not take more
than 30 minutes. As you get ready to file, go
through our checklist of nine things to keep
in mind. These steps will help you prepare a
flawless return and ensure smooth filing.
GET THE FORM 16
OR 16A FOR SALARY
BREAKUP
For salaried taxpayers, the first step is to get
their Form 16 or 16A from their employer. The
the breakup of his gross salary, mentioning
the various heads of income. You will have
Your TDS or TCS was
to mention the basic salary, HRA and other
allowances, such as LTA, uniform allowance, `25,000 (`50,000
etc. In many cases, the Form 16 will not offer a for senior citizens)
detailed breakup, but only give a gross salary or more.
figure. The taxpayer will have to work back-
wards by subtracting the amounts claimed You have to claim
for various exemptions from the gross salary the refund of TDS or
and then declare the remainder as his basic
TCS paid.
salary. Make sure the final salary income
matches with that in the Form 16 or 16A.
 cover story
The Economic Times Wealth July 18-24, 2022 03

“If there is no mismatch

What the AIS in the information in
Form 16 , Form 26AS
knows about you and AIS, the return will
Apart from personal details, the AIS has information
on the following financial transactions
get processed faster.”
AMIT MAHESHWARI
Income from salary, profession or business PARTNER,
AKM GLOBAL

Interest earned on deposits and bank accounts

Interest earned on small savings “AIS may get updated
Purchase and sale of stocks and mutual funds even after the return is
filed. One should report
Income from dividends
the actual income and
Rental income from property not blindly rely on AIS.”
Income from lotteries, horse racing, etc K AR AN BATR A
CHARTERED
Tax deducted at source (TDS) on income ACCOUNTANT

Purchase of foreign currency

Some exemptions like HRA can be claimed
at the time of filing returns even if it is not
mentioned in the Form 16. However, it is
better to furnish the required information
to your company so that the exemption is
factored in the Form 16 numbers. It has
been observed that tax returns in which
the declared income, exemptions and
deductions match those in the Form 16 get
processed faster and without a hitch.
VERIFY DETAILS
OF TDS, TCS IN
FORM 26AS
Before filling up the form, check whether
all the tax deducted on your behalf has
been credited to you. The Form 26AS has
details of all payments made to you and the
TDS on these payments. This includes TDS
on interest from deposits and bonds and
dividend income. It will also have details
of tax collected at source (TCS). TCS is
levied on certain transactions, including
transfer of money abroad or purchase of
foreign currency. This TCS can then be
adjusted against your tax liability. You can
access your Form 26 AS either through the
tax department portal or your Net banking
account to check if the TDS and TCS deduc-
tions are correctly mentioned in it.
If you find that some TDS or TCS has not
been credited to you, contact the deductor
immediately. “Maybe the deductor has not
deposited the TDS or TCS, or maybe the
TDS has been deposited but the statement
has not been filed yet. It could also be due
to the wrong PAN or incorrect amount in
the TDS statement,” says Archit Gupta,
CEO of tax filing portal, Cleartax. “It takes
Tax collected at source (TCS) on specified expenses
Tax refunds claimed
about 7-10 days for a correction to reflect in
the Form 26AS, so one should act immedi-
ately,” says Tilotama Gourisaria, Partner
in Kolkata-based Agarwal Lodha & Co.
MATCH INCOME
AND TDS, TCS
DETAILS IN AIS
Once you have checked the TDS and TCS
details in your Form 26AS, match them
with the details in the Annual Information
Statement (AIS). Launched last year, the
AIS is a comprehensive statement of all
financial transactions conducted by an
individual during the year. It has details
of all incomes received by the individual
(including salary, profession, rent, inter-
est, etc.) from various sources. It also has
details of where and how much the indi-
vidual invested and spent during the year
(see graphic).
Though the AIS covers all possible
financial transactions, it is still work in
progress and some details may not get
captured in the form. “The AIS depends on
information from multiple sources. It will
take some time to integrate all the infor-
mation at one place,” says Sudhir Kaushik,
CEO of tax filing portal, Taxspanner. In
fact, the AIS Handbook of the tax depart-
ment specifically states that “there may
be other transactions relating to the tax-
payer which are not presently displayed in
AIS. The taxpayer is expected to check all
related information and report complete
and accurate information in the income
tax return”. There could be mismatches as
the government’s system might not have
acquired complete information. “While
filing ITR, taxpayers should go by the ac-
tual transaction numbers and not wholly
rely on the AIS numbers,” says Gupta of
Cleartax. “The AIS may get updated in
future even after one has filed his return,”
says Chartered Accountant Karan Batra.
The good news is that taxpayers can
submit their feedback on the information
given in the AIS. “A taxpayer can respond
whether the information is correct, par-
tially correct or incorrect. The discrep-
ancy can be pointed out in the feedback,”
says Gourisaria.
GET CAPITAL GAINS
STATEMENTS FROM
BROKER, MFs
If you have invested in stocks and mutual
funds, you must also get a capital gains
statement from your broker and mutual
funds. Long-term gains beyond `1 lakh
from equities and equity-oriented funds
are taxed at 10%, while short-term gains
are taxed at 15%.
The tax rate is higher and tax calcula-
tion is far more complicated for non-equity
funds and other assets, such as gold and
real estate. Short-term gains are added
to the income and taxed at normal rates,
while long-term gains are taxed at 20% af-
ter indexation. The average person will not
be able to calculate his gains from mutual
funds after indexation. Mercifully, mutual
funds calculate this for you and even give
you the tax liability. You can log on to your
mutual fund and get a capital gains state-
ment within minutes. A better idea is to get
a consolidated statement from a mutual
fund transfer agency, such as Computer
Age Management Services. The statement
is in your mailbox within minutes of plac-
ing the request. Similarly, stock brokers
provide capital gains statements for all
trades done during the year.
What’s more, these capital gains state-
ments can be uploaded on tax filing portals
where the relevant information gets picked
up and duly included in the tax return.
However, if your stockbroker does not give
the information in the same format as
required by the tax filing portal, you will
have to key it in manually or put it in a com-
patible Excel file.
Don’t ignore this even if you made a loss
on equity investments during the year.
“Losses can be adjusted against gains
from other assets. Unadjusted losses can
be carried forward for up to eight financial
years,” says Amit Maheshwari, Partner,
AKM Global.
INCLUDE INTEREST
ON DEPOSITS AND
BANK BALANCE
A large number of taxpayers do not report
other incomes, including interest on de-
posits and savings accounts, in their tax
returns. There was a time when they could
get away with it if they managed to avoid
TDS by splitting deposits across several
banks. This is no longer possible. “The
AIS has details of all the incomes of a PAN
cardholder. Every rupee earned as inter-
est will show up in the AIS,” says Kaushik
of Taxspanner. Even if you have multiple
deposits across different banks and no TDS
has been deducted, the interest earned will
be mentioned in the AIS.
Don’t forget to report the interest on tax-
free options, such as the PPF and Sukanya
Samriddhi Yojana, in the tax return as
well. While this will not add to your tax
liability, you will be able to explain the
source of money when the account eventu-
ally matures after a few years.
 cover story
04 The Economic Times Wealth July 18-24, 2022

DECLARE INCOME
FROM CRYPTO
ASSETS
This year’s budget has clarified how gains
Many taxpayers
from virtual digital assets, such as cryp- are hoping the 31 July
tos, will be taxed. However, the taxation
of gains in the previous financial year is deadline will be extended.
mired in confusion and contradictions.
Will cryptos be treated as equities and
Our advice is not to wait
long-term gains of up to `1 lakh be tax-free
and short-term gains taxed at 15%? Or will
till the last few days to file
they be at par with non-equity assets and your return. Why delay
short-term gains added to income and long-
term gains taxed at 20% after indexation? something that can be
Batra says that in recent tax notices sent to
investors, the department has specifically
done in 30 minutes?
asked why their income from crypto trad-
ing has not been shown as capital gains.
“Therefore, it is advisable to show this in-
come as capital gains,” he says.
Kaushik of Taxspanner advises taxpay-
ers to play safe and pay 30% tax on gains as
laid down in this year’s budget. His logic:
this year’s budget has placed virtual digi-
tal assets in the same bracket as lotteries.
While the law is not retrospective and ap-
plies from 1 April this year, there is also no
reason to assume a different tax treatment
for previous years.
There is another, more serious complica-
tion. “There is no clarity whether cryptos
will qualify as Indian or foreign assets.
In case they are treated as a foreign asset
(if remittance is received in foreign cur-
rency), crypto investors will have to de-
clare these holdings in the returns. Failure
“Don’t forget to include “Penalty for missreport- and money,” says Maheshwari. It’s a
small fee for peace of mind that your tax
to disclose foreign assets may expose the interest income in the ing foreign assets can be return is flawless and will not lead to a
individuals to stringent proceedings under
the Black Money Act,” points out Aditya
return. Every rupee up to `10 lakh per year. notice.

Agarwal, Partner in Mahesh K Agarwal
& Co. He says it would be prudent to report
crypto holdings in Schedule FA as foreign
assets in order to avoid getting into legal
problems later.
FURNISH DETAILS
OF FOREIGN ASSETS,
INCOME
Foreign assets are indeed a minefield
littered with potential tax mistakes. All
foreign assets, including foreign bank
accounts, financial interests, immovable
property, accounts in which an individual
has signing authority, and any other capi-
tal asset held by the individual outside
India, must be reported in the tax return,
irrespective of the total income of the indi-
vidual.
Given the complexity of the task, many
people may be tempted to omit this.
This can prove costly. Willfully holding
back information on foreign assets can
invite serious charges under the Black
Money (Undisclosed Foreign Income And
Assets) and Imposition of Tax Act, 2015.
“Misreporting can lead to penal conse-
quences under the Black Money Act, which
can be as high as `10 lakh per year. The
undisclosed income will be taxed at 30%
without adjustment of any expenses and
a penalty of up to 90%. It may also entail
imprisonment up to seven years,” cautions
Gupta of Cleartax. Don’t think you can get
away once the return is processed. “Cases
can be opened even up to 16 years later, and
earned as interest will
show up in AIS.”
SUDHIR K AUSHIK
CEO, TA XSPANNER
“It takes about 7-10 days
for a correction to reflect
in the Form 26AS, so one
should act immediately
if one spots an error.”
TILOTAMA
GOURISARIA
PARTNER, AG ARWAL
LODHA & COMPANY
“It’s not clear if cryptos
will qualify as Indian or
foreign assets. If foreign
assets, they have to be
declared in the return.”
ADIT YA AGARWAL
PARTNER, MAHESH K
AG ARWAL & COMPANY
It can also lead to prison
for up to seven years.”
ARCHIT GUPTA
CEO, CLE ARTA X
penalties can be levied for non-disclosure
of foreign assets,” says Kaushik.
CHECK DEDUCTIONS,
EXEMPTIONS IN
FINAL FORM
Once you have filled all the details, don’t
be in a hurry to submit your return. Filing
the tax return has become easier in recent
years, thanks to the pre-filled forms and
integration of information from various
sources. Even so, many taxpayers have no-
ticed discrepancies in the AIS and glitches
in tax returns. “Use the pre-fill option very
carefully,” cautions Kaushik. “Make sure
that no deduction or exemption has been
missed.” Before you submit the form, go
through each section carefully to see if all
the details are correct.
It is a good idea to pay a finance profes-
sional to assist you in the task. Tax portals
charge a small fee for assisted filing, where
a tax expert will examine your return
before it is submitted to the department.
“Taxpayers’ knowledge is restricted to the
basic provisions of tax laws. Tax profes-
sionals add value and save you both time
VERIFY THE TAX
RETURNS BY FILING
THE ITR V
The tax filing process does not end with
the submission of the ITR. A crucial step
still remains. After you submit your re-
turn, you need to verify the same within
120 days. If not verified within this pe-
riod, the return becomes invalid and you
could get slapped with a penalty for non-
filing. There are six ways to verify your
income tax return.
Aadhaar-based OTP: For this, your mo-
bile number and PAN must be linked to
your Aadhaar.
Net banking: Verify the return by log-
ging to the tax filing portal through your
Net banking account.
Bank account: Generate Electronic
Verification Code (EVC) through your
bank account. For this, you must have a
pre-validated bank account.
Demat account: The process is the same
as bank account to generate an EVC.
Bank ATM: Your ATM card can gener-
ate an EVC, but this facility is restricted
to a few banks.
Signed ITR-V: Send a signed copy of
ITR-V to the tax department at:
CPC, Post Box No - 1, Electronic
City Post Office, Bengaluru - 560100,
Karnataka.
Please send your feedback to
etwealth@timesgroup.com
 review preview
06 The Economic Times Wealth July 18-24, 2022
NEWS IN BRIEF
Bajaj Allianz Life Insurance
cuts cash levels
Bajaj Allianz Life Insurance
Company is drawing down
its cash pile to load up Indian
stocks on a bet that the equity
market rout will bottom out
soon. The insurer, with assets
of about `850 billion, has cut its
cash levels by 300 basis points
in the last three months and
will deploy the remaining re-
serves in the coming months,
said Sampath Reddy, Chief
Investment Officer at Bajaj
Allianz. It is set to buy growth
stocks at reasonable valuations
and large private sector banks
without bad loan woes.
—Bloomberg
Budget holidays to get
costlier from 18 July
If you are planning a budget
holiday, you will have to pay
more for your hotel rooms from
18 July 2022. This is because the
Goods and Services Tax (GST)
Council has announced that
even hotels that charge below
`1,000 a day will come under
the GST net. A press release by
the GST council stated, “Hotel
accommodation priced up to
`1,000 a day shall be taxed at
12%.” However, the government
is yet to issue a notification.
—Preeti Motiani
BENGALURU, CHENNAI SET TO HIRE THE MOST
The July-Sep quarter has seen a jump in hiring over the previous quarter, as per the latest TeamLease survey.
India sees sharp rise in
hiring in 2022-23
54%
34% 38%
Apr-Jun Apr-Jun Jul-Sep
2021-22 2022-23 2021-22
Hiring higher in tier 1 cities
METRO & TIER 1
Apr-Jun
July-Sep
TIER 2
Apr-Jun 55%
July-Sep 62%
TIER 3
Apr-Jun 34%
July-Sep 37%
RURAL
20% Apr-Jun
22% July-Sep
Source: TeamLease Employment Outlook Report. The survey was conducted among employers of 865 businesses across 14 cities and 23 sectors, in April and May 2022.
Fall of rupee: stocks
that can gain & lose
Exporters are bound to benefit, even as importers suffer.
With six days of non-stop losses, the Indian ru-
pee is now headed for its longest weekly losing
streak after 2008. It also looks poised to break
the psychologically important 80 level against
the US dollar amid concerns of steeper tighten-
ing by the US Fed. Recession worries are also
fuelling demand for the US dollar, seen as a
safe haven. Besides the impact of a weakening
rupee on the country’s economy, any major
movement in the currency also impacts a num-
ber of listed companies.
Stocks that stand to gain
IT majors like TCS, Infosys, Wipro, Tech
Mahindra, HCL Technologies, and Mindtree,
that earn a bulk of their revenue in dollar
terms are likely to benefit from a weakening
rupee, shows data from StockEdge.
Andrew Holland, CEO, Avendus Capital,
said it is a good time to be a contra buyer in IT
stocks. “The collateral damage has been done.
These stocks are cheap. Rupee is a huge tail-
wind and I think it will remain a tailwind,” he
said. TCS earns about 50% of its revenue in dol-
lar terms from the US clients, Infosys receives
approximately 60% of its revenues from North
America, while HCL earns around 55% of its
revenue from America alone, the data shows.
IT stocks have, however, been under pres-
sure due to the impact on margins and fears
over the possibility of a recession or slowdown
in Europe. Besides, other exporters like Divi’s
61%
Jul-Sep
2022-23
83%
89%
Small businesses show biggest
jump over previous quarter
LARGE
SMALL MEDIUM
41% 47% 36% 40% 65% 69%
Apr-Jun July-Sep Apr-Jun July-Sep Apr-Jun July-Sep
product
launches
:: Mutual Funds
Motilal Oswal AMC has launched the
Motilal Oswal S&P BSE Financials ex
Bank 30 Index Fund. The open-ended
scheme will track the total returns of
S&P BSE Financials ex Bank 30 Total
Return Index. The fund will be the
first of its kind passive fund that aims
to provide exposure to the financial
services sector, excluding banks. The
minimum investment required is
`500. The NFO closes on 22 July.
Quantum Mutual Fund has
launched Quantum Nifty 50 ETF
Fund of Fund, an open-ended
fund of fund scheme that will
invest in units of the Quantum
Nifty 50 ETF. The fund combines
the efficiency of an ETF with
Laboratories and Balkrishna Industries are the convenience of an index
fund, giving investors the best
also potential gainers. In the past month,
Divi’s Lab has been up 4.5% and Balkrishna of both worlds. The minimum
investment required is `500.
Industries by 6.3%.
The NFO closes on 1 August.
Stocks that stand to lose Motilal Oswal AMC has launched
A weak rupee makes imports expensive and the Motilal Oswal S&P BSE
companies which import their raw materials Healthcare ETF, an open-ended
tend to feel the pain. Crude oil is a major raw scheme that will track the S&P
material cost for bluechip Asian Paints. When BSE Healthcare Total Return
the rupee goes up, the import bill for India’s Index. At present, the index has
largest paint company automatically rises. 97 constituents spanning pharma,
Rival Berger Paints also feels the same pinch. hospitals, diagnostic and medical
Other major companies that get impacted neg- equipment sectors. The minimum
atively include Tata Steel, JSW Steel, Pidilite investment required is `500. The
Industries, Astral and Supreme Industries. NFO closes on 22 July.
— Nikhil Agarwal
:: Insurance
Canara HSBC Life Insurance has
introduced Guaranteed One Pay
Advantage Plan, a non-linked non-
participating individual savings life
insurance plan. The policy gives
guaranteed maturity benefits along
with life cover to the policyholder.
Information technology, sales The plan offers single life and joint
lead in hiring demand life coverages. Buyers can also opt
for a loan against the policy after it
MARKETING acquires surrender value.
53% Apr-Jun
63% July-Sep Aditya Birla Sun Life Insurance has
ENGINEERING launched the ABSLI Fixed Maturity
SALES 57% Apr-Jun Plan, a non-linked, non-participating
82% Apr-Jun 70% July-Sep endowment plan that gives
90% July-Sep HUMAN RESOURCES
guaranteed benefits on maturity. This
IT single-premium plan has a minimum
21% Apr-Jun term of five years and a maximum
75% Apr-Jun 22% July-Sep term of 10 years. There is no penalty
83% July-Sep BLUE COLLAR for early surrender.
OFFICE SERVICES
50% Apr-Jun
30% Apr-Jun 57% July-Sep Bajaj Allianz Life Insurance has
33% July-Sep * Figures are for July-Sep 2022-23
launched QR code-enabled services.
It provides customers access to 15
Bengaluru most popular services on their phones.
The customer can simply scan the
intent on hiring QR code available at the company’s
BENGALURU CHENNAI HYDERABAD branches and self-service their life
91% Apr-Jun 78% Apr-Jun 70% Apr-Jun insurance policies. They can make
95% July-Sep 87% July-Sep 75% July-Sep premium payments online, view or
download policy-related documents,
MUMBAI DELHI PUNE such as policy bonds, IT certificates,
76% Apr-Jun 71% Apr-Jun 60% Apr-Jun and fund performance statements,
83% July-Sep 78% July-Sep 66% July-Sep switch funds as per their choice, etc.
 guest column
The Economic Times Wealth July 18-24, 2022 07

How to balance saving

and spending
Instead of just focusing on investments, young people should learn how to
strike a balance between consumption and savings, says Dhirendra Kumar.

T
he public discussion about
savings and investment in the
media or social media is focused
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH on the wrong issue. The most
important point always seems to

money be where to invest. Which is the hot stock

right now? Which is the best mutual fund?

mysteries And, heaven forbid, which is the hottest

crypto? To a young person who has just
started earning and is casually observing
all this, the entire exercise about investing
appears to be about choosing the best
investment. This is completely misleading.
The real problem is that most people are not
Once you observe the investing at all, or investing too little. They
magic of compounding start too late in life, sometimes don’t start at
in your savings, and all, and when they do, they invest too little.
once you realise that Teaching the value of saving to young
people is supposed to be a big part of finan-
money just multiplies
cial literacy. However, some years ago, I
on its own, this came across an interaction that gave me
personal experience a fresh perspective on the psychology of
will be far more saving among those who have just started
effective than any earning. On a television show, during a
financial literacy class personal finance Q&A, a young man asked
that you attend. a question. He had just started earning and
he wanted advice on what to do with his
money. His greatest wish in the world was

Saving is not really about

the arithmetic of returns
and interest rates, and so
GETTYIMAGES

on. It’s actually a way of

thinking, a habit.
to buy a motorbike worth `1.5 lakh. He had
been dreaming about it for many years as
something he would do when he started
earning. It’s not an uncommon dream.
He wanted to know the fastest way to save
enough money to buy a bike. In response,
he received simple and sensible advice,
complete with detailed calculations about
how much he should save, what the returns
would be, and when he would be able to buy
the motorbike. As a conservative invest-
ment adviser, I should have concurred
with this approach. Postponement of wish
fulfilment is supposed to be a cornerstone of
good financial behaviour. However, I found
myself thinking that if he started saving
now, he would probably be 30 years old by
the time he would be able to buy it, and that
he would be just too old to enjoy riding that
bike the way a young person would. In fact,
he probably would not even want it then. So,
perhaps, he should break the rules of good
financial behaviour, and buy that bike right
now with borrowed money, on an EMI.
Does that mean that he shouldn’t save at
all? After all, it makes little sense to save
while there are loans to be paid off. Even Please send your feedback to
so, my point is that such a person should etwealth@timesgroup.com
also save a little bit, even if it’s just `1,000
a month. Even if it’s saving the money in a
simple instrument like a recurring deposit
in his bank.
The reason is that, at its heart, saving is
not really about the arithmetic of returns
and interest rates, and so on. It’s actually a
way of thinking, a habit. A person who saves
even a trivial amount of `1,000 a month is
a fundamentally different kind of person
than the one who spends everything.
What I’m saying may not pass the test of
correct financial advice, but it’s probably
better to spend on what you want, as long
as you know that it’s an indulgence, and at
the same time, start getting into the habit
of saving. Once you observe the magic of
compounding in your savings, and once
you realise that money just multiplies on
its own, this personal experience will be far
more effective than any financial literacy
class that you attend. Inevitably, the savings
grow, people save more, and it becomes a
virtuous cycle.
 stocks
08 The Economic Times Wealth July 18-24, 2022
Five stocks that resisted
market downturns
GETTYIMAGES
Fundamentally strong stocks with high resistance during corrections can be good long-term investments.
by Sameer Bhardwaj
T
he risk of global stagflation
is making investors nervous.
Stagflation is an economic
phenomenon where slower
economic growth is accompa-
nied by high inflation. Both, emerging
and developed markets, are experiencing
increased volatility in their financial
markets. Benchmarks MSCI Emerging
Market Index and MSCI World Index have
lost over 20% in 2022 so far.
Such stagflation risks have emanated
from the pandemic-induced lockdowns
and the recent Russia-Ukraine war. While
lockdowns dented the global economic
growth, the war resulted in a significant
increase in prices of commodities and en-
ergy products, which led to a rise in global
inflation. The consequent increase in in-
terest rates by the global central banks has
raised concerns about economic recovery
as higher rates discourage both consump-
tion and investment.
Such risks are more pronounced in the
US and Eurozone economies. However,
emerging economies like India are likely
to see spillover effects like lower export de-
mand and volatility in capital flows (FDI/
FII). The domestic market benchmark
Nifty 50 lost 7.5% year to date, whereas the
NSE Volatility Index averaged 21.4 in 2022
so far compared to an average of 18.01 for
Tata Consultancy Services
the calendar year 2021.
“FII outflows in the first quarter of UPSIDE
12-M forward PE Current price (`) 1-year target price (`) POTENTIAL
2022-23 have been the highest ever at $15
billion. This, coupled with higher 10-year
G-Sec yields, worsening external balance,
25.9 3,085 3,554 15.2%
and consequent currency depreciation,
THE COMPANY REPORTED inline ANALYSTS’ RECOMMENDATIONS
provided a very challenging backdrop to
revenue growth in the first quarter of BUY HOLD SELL
the equity market,” states a recent Motilal
2022-23. The growth was driven by 22 15 11
Oswal report.
an uptick in the consumer packaged
The start of the first quarter earnings
goods and retail segments, followed tive on the stock as the near- to medi-
season could further increase domestic
by communication, media and BFSI um-term demand environment remains
market volatility as India Inc. is expected
segments. According to a report by robust. The deal booking remains strong
to witness a decline in sequential profit-
HDFC Securities, strong bookings across verticals, led by a multi-year tech
ability. The ongoing supply constraints,
in BFSI, gains in deal market share, upcycle. It expects the operating margin
high fuel and power costs, and a decline
strengthened hyperscaler partnerships, of the company to increase sequentially
in volumes due to lower exports are some
broad-based growth across business over the next three quarters, aided by
of the factors that are expected to drag the
groups, and strong FCF generation are positive operating leverage, improving
quarter-on-quarter (q-o-q) performance.
the key positives in the first quarter. employee pyramid, and moderation in
The first quarter preview reports from
A Yes Securities report remains posi- employee attrition.
Kotak Securities and PhillipCapital
expect an over 15% q-o-q decline in the
100 Tata Consultancy
aggregate net profits of their respective
Services
coverage universe. Though there will be
growth in y-o-y terms, such growth will be 96.60
due to the low base effect as the first quar-
ter of 2021-22 was impacted by the second
Covid wave.
There are also silver linings in form of
correction in the global commodity prices, Nifty 50
robust GST collections, and revival in
102.33
credit growth. The Bloomberg Commodity
Index lost 5.5% in the first quarter of 2022- 12 July 2021 12 July 2022
 stocks
The Economic Times Wealth July 18-24, 2022 09

23. However, the benefits of such com-

modity price moderation will be visible Power Grid Corporation of India SRF
from the second quarter of 2022-23, adds
12-month Current 1-year target UPSIDE 12-month Current 1-year target UPSIDE
the Motilal Oswal report.
forward PE price (`) price (`) POTENTIAL forward PE price (`) price (`) POTENTIAL
As domestic equities are at a cross-
roads of headwinds and tailwinds, it is
important to identify stocks that display
10 213.4 238.6 11.8% 28.3 2,199 2,666.8 21.3%
good resistance to market or external
A STEADY PERFORMER due ANALYSTS’ RECOMMENDATIONS GROWTH IS EXPECTED ANALYSTS’ RECOMMENDATIONS
risks. When the market is in correction
to asset additions in the past BUY HOLD SELL across segments. While BUY HOLD SELL
mode, the downside resistance of a stock
few years, the company aims the specialty chemicals
can help judge its ability to manage 22 4 1 24 4 1
to explore the smart meter segment will grow due to
market risks. Resistance implies a fall
business where it expects supportive government
in the stock price that is lower than the According to a recent JP be supported by the strong
a decent IRR. It will also policies (tax incentives,
reduction in market benchmark during Morgan report, capex is a demand for packaging films-
emerge as a key player in PLI), export opportunities,
a market correction. key driver for the company’s BOPET and BOPP.
the execution of the Battery and product innovation,
ET Wealth analysed stocks with earnings and multiples. Ris- A recent JM Financial
Energy Storage System. The the fluorochemicals
market caps greater than `1,000 crore ing power demand, system report believes that the com-
company sees its presence business will benefit due
during multiple market corrections in strengthening, and new seg- pany’s HFC segment (a type
across the value chain to a robust refrigerant gas
order to identify those that showed bet- ments (storage /distribution) of refrigerant) will benefit in
and aims to improve the price environment that is
ter resistance. Further, this universe can drive upgrades. Improved the long run due to supply-
government’s transmission supported by volume growth
of stocks was screened using multiple payout ratios are also ex- demand mismatch since there
and distribution system. It is and realizations in both
financial metrics to look for those that pected due to free cash flow is no capacity addition from
also foraying into solar power domestic and international
had sound fundamentals. accretion. China amidst rising demand.
generation and rooftop solar markets. On the other hand,
The data for the past 10 years, from
systems. the packaging segment will
June 2012 to June 2022, was observed. Power Grid Corp of India SRF
The market peaks and troughs were
identified using the BSE Sensex daily
124.30 145.06
closing values. A minimum fall of 10%
from the peak to trough was recognised 100
100
as correction or market downturn. Also,
for identifying a correction, the differ-
ence between peak and trough was kept
at a minimum of eight weeks. Five such
corrections were identified. The major-
ity of such corrections were triggered by
Nifty 50 Nifty 50
external or market factors.
The first correction was triggered 102.33 102.33
by the Chinese stock market sell-off be- 12 July 2021 12 July 2022 12 July 2021 12 July 2022
tween 29 January 2015 and 11 February
2016, when the Sensex tanked 22.7%.
US-China trade wars triggered the sec-
ond correction between 28 August 2018
Navin Fluorine International CCL Products
and 26 October 2018, when the markets 12-month Current 1-year target 12-month Current 1-year target
UPSIDE UPSIDE
lost 14.3%. Volatility due to Lok Sabha forward PE price (`) price (`) POTENTIAL forward PE price (`) price (`) POTENTIAL
elections and market reaction to the
first full budget of the NDA government
after its return to power dragged the
46.6 3,729.7 4,175.3 11.9% 19 404 504 24.8%
Sensex down by 10.4% between 3 June THE COMPANY WILL benefit ANALYSTS’ RECOMMENDATIONS THE COMPANY WILL ANALYSTS’ RECOMMENDATIONS
2019 and 19 September 2019. The fourth from a healthy order book benefit from higher coffee
BUY HOLD SELL BUY HOLD SELL
correction came during the onset of the that provides strong revenue prices, capacity expansion
Covid pandemic, when the markets lost 15 7 2 9 0 0
visibility going forward. in Vietnam, rising share of
over 38% between 14 January 2020 and Robust growth prospects in India business, aggressive
23 March 2020. The fifth correction is be- the CRAMS segment, strong According to a JM Financial distribution plans in the A Nirmal Bang report
tween 18 October 2021 and 17 June 2022, pricing power in the inorganic report, the company stands domestic market, and strong expects the company to ben-
when the markets lost 16.9% due to con- fluorides segment, and strong to gain significantly in the global demand. The demand efit from incremental capex
cerns about rising global inflation. demand for refrigerants are long run as patent expiry till for spray-dried coffee and value-addition capacity
The stocks that have gained during other growth drivers. 2034-36 for HFO will help continues to remain healthy, creation from 2022-23. Such
corrections or have lost less than the Hydro fluoro olefins (HFO), limit price erosion. Also, the which is economically benefits include improved
market benchmark, BSE Sensex, across a high performance product, strong demand growth of cheaper. The company is per/kg margin, consistent free
these five market corrections were also offers strong growth op- HFO-1233zd and distinct ad- also seeing signs of stability cash flows and improvement
filtered out. To determine the funda- portunities. The company has vantage in terms of customer despite geopolitical issues. in return ratios. It expects
mental soundness of such stocks, the entered into a contract with acceptance over many other Economies of scale and strong cumulative FCF generation of
last 10 years’ annual data (from 2012-13 Honeywell to manufacture the HFOs, will provide incremen- customer relationships are around `650 crore over the
to 2021-22) on dividend payout ratio, patent product HFO-1233zd. tal benefits. other strongholds. next four years.
year-on-year EPS growth, and return Navin Fluorine
on equity (RoE) were extracted from International 100
100 CCL Products India
Bloomberg. Only the companies whose 96.59
10-year average of each of the above met- 104.39
rics was greater than 15% were filtered
out. Also, only companies that reported
positive EPS in each of the last 10 years
were included.
ET Wealth lists five such stocks and
their future growth prospects. Barring Nifty 50
TCS and Navin Fluorine, the other three Nifty 50 102.33
saw a decline in their long-term debt to
102.33
equity ratio between two intervals, that 12 July 2021 12 July 2022
is, between 2012-13 and 2021-22. 12 July 2021 12 July 2022 Current price as on 12 July 2022. Nifty-50 12M Forward PE: 17.46. Source: Bloomberg.
 mutual funds
10 The Economic Times Wealth July 18-24, 2022

Should you opt for However, there are some caveats. With
FMPs, investors don’t have much idea
about what will go into the fund. There

FMPs this time?

are no restrictions on the quality of bonds
that these can invest in. FMPs, like many
open-ended funds, have had a tainted
history in this regard, with several being
hit by defaults in low quality paper. This
diluted the actual realised NAV at the time
As the fixed tenure mutual fund schemes with a chequered past make a of maturity, with some funds paying only
partial maturity value. A few FMPs gave
comeback, go through the pros and cons before deciding to invest. investors the option to delay, or roll over,
the scheme maturity to a later date. These
episodes ensnared even larger fund houses
by Sanket Dhanorkar with established track records.

T
“The 2007-08 period, as well as the 2018-
he once popular fixed matu- 19 period, saw fund houses renege on the
rity plans (FMP) are making promise of returning money on maturity,
a comeback on AMC store instead offering a roll-over of maturity
shelves. With bond yields date or a shift to other funds. This does not
currently at attractive levels, provide much comfort,” remarks Vidya
AMCs have started offering, or are lining Bala, Head, Research, Primeinvestor.in.
up, FMPs of varying maturities. These Recently, several fund houses merged a
will provide investors the chance to lock few of their maturing FMPs with open-
in at prevailing yields without worrying ended debt funds, after offering an exit to
about interest rate risk. But do investors investors. However, these episodes have
really need to dive back into a space with a made the industry wiser, insists Prabhu.
chequered past? “The industry has learnt after every fiasco
FMPs are fixed tenure mutual fund and has used it to strengthen internal
schemes that invest in securities with processes, even as regulations have
matching tenures. These are closed-ended become tighter,” she says.
in nature. This means that investors can While the spectre of defaults is in the
only enter and exit at a specified time. past, it is not the only concern. Lack of
Unlike open-ended funds, FMPs have liquidity is another limitation. Investors
an expiry date, after which the investor cannot exit before maturity of the scheme.
gets the money back. The attractive fea- While these can be sold in the secondary
ture is that it allows for some degree of market through stock exchanges, the
predictability of return, even if it is not reality is that FMPs don’t see any trad-
guaranteed. The fund manager deploys ing activity, restricting the ability to
the money in securities of matching ten- exit at any time. The biggest argument
ures and holds on to them till fund expiry. favouring FMPs is that these will lock in
Unlike the open-ended funds, these do elevated yields today, but some feel there
not keep buying and selling securities in are superior alternatives to lock in higher
the interim. This dilutes the interest rate yields. Bala argues, “FMPs were popular
risk, that is, the possibility of interest rate when they were marketed as alternatives
changes impacting the fund return. FMPs to fixed deposits as there were limited op-
seem particularly appealing now because tions to ‘lock’ into better yields when rates
the yields are higher than that of bank rose. Today, investors have many options
GETTYIMAGES

fixed deposits of similar tenures. Roopali to lock in without giving up on the benefit
Prabhu, CIO and Co-head of Product and of liquidity.” She reckons that passive debt
Solutions, Sanctum Wealth Management, funds with target maturity, far lower cost
asserts, “This is a good time to lock in as well as high credit quality, make for
yields through FMPs as we are at a point good alternatives. “The promise of liquid-
from where yields will not move substan-
tially higher.”
Return of the FMPs ity and knowing where the money will be
invested (fund has to mimic the bench-
These also offer better tax efficiency. These closed-ended mutual funds were launched early this year. mark index’s construct) provides higher
FMPs with a tenure of more than three transparency,” Bala adds. These also come
years provide the benefit of indexation, Scheme name Tenure (days) Maturity date Corpus (` cr) with a defined maturity and, hence, offer
where investors are allowed to adjust the Aditya Birla SL FTP-TQ-1879D 1,879 16 May 2027 176 predictability of returns. However, con-
returns against inflation. The gains re- trary to FMPs, these are open-ended, and
alised after this period are taxed at a rate HDFC FMP-Sr 46-1162D 1,162 20 May 2025 27 afford an exit to investors at any time.
of 20% after indexation. During periods This can have a flipside, as Prabhu ar-
HDFC FMP-Sr 46-1861D 1,861 13 Apr 2027 375
of high inflation, this indexation benefit gues, “The open-ended structure of target
allows you to keep tax liability muted. In HDFC FMP-Sr 46-1876D 1,876 18 May 2027 26 maturity funds exposes them to investor
case of fixed deposits, the entire interest behaviour in the form of intermittent in-
is clubbed with income and is taxed as per Kotak FMP-294-105D 105 8 Jul 2022 204 flows and outflows, which can impact the
the specified slab rates. Some FMPs offer final yield. In FMPs, investors are forced
Nippon India FHF-XLIII-5-2315D 2,315 4 Jul 2028 139
a double indexation benefit. This comes to hold till maturity, so there is higher cer-
into play when you invest in an FMP with SBI FMP-58-1842D 1,842 20 Jan 2027 202 tainty of realising the expected yield.” If
a tenure of a little over three years before you do want to park money in FMPs, make
31 March. When the FMP matures, you SBI FMP-59-1618D 1,618 6 Jul 2026 23 sure your time horizon matches that of the
are eligible to claim indexation benefit for fund maturity. Opt for AMCs with a proven
SBI FMP-60-1878D 1,878 7 Apr 2027 199
four years instead of three years, even if track record in this space and diversify.
the holding period is only a few days over SBI FMP-61-1927D 1,927 1 Jul 2027 270
three years. The twin benefit of predict-
ability of returns and tax efficiency make SBI FMP-62-191D 191 07-Oct-2022 134 Please send your feedback to
etwealth@timesgroup.com
FMPs a rewarding proposition. Source: Accord Fintech. Compiled by ETIG Database.

by Babar Zaidi
Y
our car insurance premium
could soon be decided by how
much and how well you drive.
The Insurance Regulatory
and Development Authority
of India (Irdai) has permitted insurers
to launch pay-as-you-drive motor insur-
ance policies with premiums linked to
mileage and quality of driving.
The pay-as-you-drive policies allow
buyers to set a mileage limit for their
cars and offer discounts over the nor-
mal premium. The lower the limit, the
bigger is the discount over the normal
premium. The insurance is valid only
up to the limit chosen by the buyer. One
insurance company offers three slabs of
7,500 km, 5,000 km and 2,500 km.
The insurance regulator has also
proposed floater covers for vehicles.
Just like floater health policies cover all
members of a family, vehicle owners can
get several vehicles covered under a sin-
gle policy. In health insurance, floater
policies are very popular, but whether
they will become the preferred option
Will you gain from
pay-as-you-drive
motor insurance?
The nominal discounts being offered on premium are not
worth the restrictions placed on mileage.
How much you can save
Driving slab limit Discount on
(km per year) premium
Regular unlimited driving Nil
7,500 km (daily avg 20.5 km) 10%
5,000 km (daily avg 13.7 km) 15%
2,500 km (daily avg 6.8 km) 25%
Slabs, premium rates and discounts are indicative and may vary across insurers.
in motor insurance is debatable. Vehicles
owned by a family are usually registered
in different names, which could be a hur-
dle in such floater covers.
Irdai has also allowed insurance com-
panies to offer discounts based on the
quality of driving. A telematics device
is fitted in the car to monitor the condi-
tion of vehicle and driving habits of the
user. This data is then interpreted to give
discounts to careful drivers. It can also
penalise rash and negligent drivers.
These developments appear to be
good news for those who own multiple
vehicles or have not been driving too
much due to Covid restrictions. They
won’t have to shell out the full premium
if their vehicles are not being used
too much. “The introduction of these
options will help in giving the much-
needed fillip to motor own damage
cover in the country and increase its
penetration,” Irdai said in a statement.
Expectedly, the insurance industry
has lauded the move. “This is a trans-
formational development in the motor
Own damage
premium (`)
You save (`)
10,000
9,000
8,500
7,500
insurance category. It will boost utili-
ty-based insurance purchases and also
encourage safe driving habits,” says
Sanjay Datta, Chief Underwriting and
Claims, ICICI Lombard. “Irdai has cre-
ated a win-win situation. Own damage
coverage can now be tailored based on
a customer’s driving behaviour. It will
benefit customers who have low vehicle
usage, take care of their vehicles and
follow traffic rules,” says Rakesh Jain,
CEO of Reliance General Insurance.
insurance
The Economic Times Wealth July 18-24, 2022 11
GETTYIMAGES
However, a closer examination
shows that such policies can offer
only limited benefits. The discounts
offered on the premium are not too
exciting (see table). If you choose the
7,500 km slab, you get only a small
10% off on the regular premium.
Mind you, the discount only applies
to the own damage premium, and the
mandatory third-party premium and
other add-on covers are not affected.
The discount gets a little more
attractive for a lower limit of 2,500
km, but that works out to an average
commute of less than 7 km in a day.
Consider that before you opt for a
policy with a low slab.
The good news is that buyers can
switch to a higher slab or even to a reg-
ular unlimited policy if they end up
driving more than the slab limit. But
Nil this upgradation should be done well
before the threshold limit is exceeded.
It is not possible to upgrade after a
1,000
mishap or claim incident. “Insurers
would have to clarify the process
1,500 of settling a claim if a customer ex-
ceeds the declared usage,” points out
2,500 Supriya Rathi, Whole Time Director,
Anand Rathi Insurance Brokers.
The installation of telematics de-
vices is another ticklish issue because
it raises privacy concerns for the car
owner. No doubt it will reduce the
insurance premium, but this discount
comes at a cost. Go for it only if you are
comfortable with the thought that the
insurer will have 24x7 data on your
car’s movement.
Please send your feedback to
etwealth@timesgroup.com
 financial planning
12 The Economic Times Wealth July 18-24, 2022
How to ensure equitable
spending with spouse
Manage routine transactions through one account to track the expenses.
Pallavi is a working mother. Her hus-
band also holds a senior management
job. They earn a decent income and
live well. However, their spending
habits and attitudes are different.
While she is careful about keeping
a close eye on her transactions, her
husband spends recklessly. She finds
that somehow she runs out of money
at the end of the month. Sometimes
there are unexpected expenses that
take away the fund she thinks she
has saved for the month. She ends the
month wondering how the money got
spent and whether she is bearing the
brunt of all family expenses. How can
Pallavi manage her routine financial
transactions in a better way so that
she gets a better hold on the finances
of her family and her own expenses?
smart things to know
1
If one can-
not pay the
outstanding
amount due on
the credit card
by the due
date, it can be
converted into
payment in
EMIs.
T
here was a time when the
head of the family managed
money tightly and kept ac-
counts. These days, budgeting
seems like a boring task and no one has
the time to do it. The simplest thing for
Pallavi would be to ensure that all or
most of her spending is routed through
a single bank account. If she monitors
the bank statement, she will begin to
have a better hold of her finances.
It makes sense for Pallavi to have an
exclusive bank account that caters to
the expenses related to the household.
When both partners work and spend
on their personal expenses, it is dif-
ficult to achieve the targeted savings
for the common good and the children.
If they allocate a specific sum for the
household and for future goals, and
place it in a bank account, the mixing
up of expenses and spending will be
taken care of. Pallavi can ensure that
most, if not all, household bills are paid
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Credit card payment via EMI
2
4
3
There is an The credit
option to limit on
convert either the card is
the entire bill reduced by
amount or a the amount
specific trans- converted
action to EMI. to EMI.
PAPER WORK
:: Porting a health
insurance policy
A health insurance policyholder
may want to change the insurer
for reasons like better benefits and
services or lower premium being
offered by another insurance com-
pany. While porting the policy, the
policyholder can retain the benefits
accumulated in terms of waiting
period for covering certain proce-
dures or pre-existing diseases.
GETTY IMAGES
What can be ported
All time-bound exclu-
sions and no-claim
bonus accrued for the
existing policy can be
ported to the new policy. The
new insurer must give credit for
the waiting period for pre-exist-
ing diseases if these have been
acquired with the old policy.
Conditions
Porting can be done
only at the time of re-
newal. The new insurance period
through this account. She can ensure will start with the new policy.
that the debit card that is linked to this The new insurer is required to
account is used for all transactions for provide a cover that is at least
the family. She should try and limit equal to that of the existing cover.
cash withdrawals, but always make
them from this account to ensure that
they are accounted for. Process
This will take some discipline, but The policyholder
soon both Pallavi and her husband needs to write to the
will get used to this arrangement. The old insurance company request-
benefit is that for a specific month, they ing a shift to another policy at
will be able to see how the money was least 45 days before the expiry
spent. They will know the major heads of the policy, but not before
of expenses, avoidable expenses, unex- 60 days. The request should
pected expenses and impulsive spend- mention the name of the new
ing. Over time, they will see the first insurance company, current
policy details and other personal
and most important financial planning
input for them – their ability to save. If details of the insured. An insur-
this account is in surplus, it indicates ance portability form, along with
the proposal form and medical
that they are able to save for their future
reports, as mandated by the
goals. Then the SIPs and other invest-
insurer, needs to be submitted to
ments in joint names can be diverted
to this account, which will reflect the
the new insurer. The new insurer
needs to confirm the proposal
state of the family finances very well.
within 15 days, failing which the
policyholder can continue the
existing policy by paying the due
premium. If the proposal is ac-
cepted, the policyholder will pay
a premium for the new policy.
:: Point to note
z Apart from waiting period credit,
all other terms of the new policy,
including premium, will apply.
5
z The two insurance companies
Along with the In case one
need to complete the porting
interest, the cus- wants to
in line with the timelines pre-
tomer is charged prepay the
scribed by Irdai.
a processing fee amount, a
for converting the charge can
amount to EMI. be levied.

Money lessons for children
Instead of being taught formally, kids learn best by solving real-life problems, says Uma Shashikant.
T
he child wanted a new toy, and
pleaded repeatedly for it. The moth-
er told him that she did not have the
money to buy it. “But you can swipe
your card,” he insisted. “Who pays
the credit card bills?” she asked. “The bank al-
ways has money to pay all bills,” he explained.
Teaching children about money is a chal-
lenge for many parents. The primary lesson
is that money is a limited resource. Children
UMA SHASHIK ANT
only witness a few financial transactions and
IS CHAIRPER SON,
CENTRE FOR INVES TMENT are unable to comprehend how a family can
EDUC ATION AND LE ARNING run out of money. They do not understand
choices and opportunity costs, and why these
need to be factored in while balancing a house-
hold budget.
Years ago, when our children were young,
we devised a plan that worked quite well. We
allocated a specific budget for an event that
the child could get involved with, and allowed
We can make a
them to make decisions. For instance, we of-
curriculum and teach
fered a budget for a birthday party. The child
children about bank
could plan every detail after accepting that
accounts, credit
the budget would not be revised. Children
cards, loans, EMIs loved the idea of decision-making and being in
and investments, charge of an important event.
but nothing will be The learnings were precious. They had to
retained without choose their clothes, chocolates, cake, decor,
applying the mind and decide about each one while keeping ac-
to solve a real-life counts. As parents, we still swiped the card,
problem. Money but the child knew every step. Buying another
lessons are best shoe meant less money for the party, or spend-
retained if the context ing on decor meant less money for return gifts,
is presented alongside. while pleading with mommy to bake a cake
and cook some treats saved money spent on
packaged foods. The kids could see how to allo-
cate money and why they could not have it all.
The lesson that stays with them till date
is that having more money to spend did not
solve the problem. That is a critical life lesson
to learn. Even with a large budget, decisions
financial planning
GETTY IMAGES
about whether to take friends to a movie or
a theme park, had to be made. We insisted
that the children make these choices. It was
interesting how they contemplated spending
on themselves and others; spending on objects
versus experiences; spending on momentary
joys or lasting gifts. They learned and grew up
making better choices with each passing year.
Soon enough this game began to extend to
other family activities like eating out, taking
a vacation, and so on. The kids soon began to
surprise and delight us by choosing to trek all
day and eating a packed lunch from home over
movies and eating out. They had other plans
for money at time and chose what they thought
was fun. We were soon renting bikes at our
holiday locations instead of taking tours; we
were assembling fancy brunches instead of
eating out; and we were buying museum en-
trance tickets and watching plays, instead of
adding one more destination to the itinerary.
Children are immensely capable of making
sensible decisions if they are in charge.
The other learnings were equally vital.
From throwing tantrums and making de-
mands, they were now learning to negotiate
and make their case. They had to discuss
among themselves and arrive at a consensus,
and then convince us that their plan was the
best use for the money we had allocated for an
activity. From basic interactions of pleading
and persuasion, they understood that they had
to argue for the merit of their decisions. To us
as parents, this was the most satisfying out-
come of this experiment.
There were still tears, anger, disappoint-
ments and setbacks as we went about these
activities. They were barely eight and 10 years
old when we began, but they grew into this
habit beautifully. Today, as young adults,
when they talk about these experiments, they
The Economic Times Wealth July 18-24, 2022 13
bring up the benefits that we had not even
imagined. Collaboration is one prominent
lesson, my son told us recently.
He said that the school system is focused
so much on individual excellence that,
along with the race to the top, competition,
jealousy and anxiety come in. Real life in-
volves a lot of collaboration at every stage.
You have to consider the preferences and
points of view of others as you negotiate
your way in the real world—with partners,
friends, neighbours, colleagues, etc. The
money game helped him consider alterna-
tive viewpoints seriously, and to give in
where it was needed, to arrive at decisions.
That was a principal life lesson, he said.
We tend to view learning as a serious
formal activity. Whenever I talk to parents
about money, they immediately ask for
a curriculum and think the child must
know the terminologies and processes, or
that they must deal with institutions like
banks. Some insist that the child keep an
account of his expenses. Good learning
is mostly intuitive. When we connect the
dots in our minds with our understanding
of how things work, it stays. There are so
many finer aspects to the immense learn-
ing hidden in experiences that a curricu-
lum will fail to capture.
One year, my daughter decided that she
would not have a party, but spend her birth-
day taking clothes and books to distribute
among the less privileged children in a
neighbouring school. She also shot down
the idea of giving them chocolates as too
vain. Children are capable of so much em-
pathy and generosity if you let them be in
charge of their lives, without nudging and
deciding for them all the time.
I am routinely asked about money les-
sons. We can make a curriculum and teach
children about bank accounts, credit cards,
loans, EMI and investments, but nothing
will be retained without applying the mind
to solve a real-life problem. Much of our
childhood maths and science lessons are
lost to us as adults because we did not have
the opportunity to contextualise and apply.
Money lessons are best retained if the
context is presented alongside. I could
write a column about fixed versus floating
rate mortgages, but you would care about it
only when you are taking out a home loan
and have to make that decision. Otherwise,
it will be read and forgotten.
Children look at the way decisions are
made in the household and learn. Involve
them in the choices you make. Allow them
to make selections. They will enjoy the pro-
cess. In this day of limited conversations
at home, find new grounds for discussions.
Children bring a fresh perspective and
will surprise you with their abilities at
decision-making.
Please send your feedback to
etwealth@timesgroup.com

your queries
14 The Economic Times Wealth July 18-24, 2022
I have recently started working and plan to
go to the US for higher studies in two years.
I can save `1 lakh a month. As I will need to
submit financial documents for my course,
where should I invest—mutual funds or FDs?
Along with fixed deposits, you can start an
SIP in an ultra short duration fund or a low
duration fund. Ultra short duration funds
hold papers with maturities of 3-6 months,
while the latter have portfolios with 6-12
month maturities. Since these funds have
shorter maturities, they are re-priced faster
in a rising interest rate scenario. These
schemes give almost similar returns to fixed
deposits. Unlike fixed deposits, debt funds
are not taxed on an accrual basis. At the time
of withdrawal, for a holding period of less
than three years, the gains will be added to
taxable income for that financial year. Fur-
ther, the capital gains from debt funds can
be set off against capital losses, if any. If you
can take risk, then a part of your SIP can be
allocated to a conservative hybrid fund,
which will invest 10-25% in equity and the
remaining in debt. However, don’t look at re-
turns in isolation and understand the risk of
equity allocation. Conservative hybrid
funds are taxed as debt funds. If you are in a
high income slab, you can consider arbitrage
funds as well for better post-tax returns. Ar-
bitrage funds are taxed like equity. Usually,
the financial support documents for F1 visa
application include bonds, fixed deposits,
shares, debentures or mutual funds, though
fixed deposit is the preferred format. If this
is the case, you will need to set a target of 18
months for these investments. Then you can
gradually exit and keep
the money in a consoli-
dated form in fixed de-
posits during the pro-
cessing of documents.
Prableen Bajpai
Founder, FinFix®
Research & Analytics
I am 36 years old and want to know
which index fund to invest in. I have a
long-term horizon and want to start
investing `10,000 a month. My goal is
to build a retirement corpus of `3.6
crore by the time I am 60 years old.
Your goal is 24 years away. Assuming a 12%
SIP CAGR, you will have a corpus of only
`1.67 crore by that time. In order to amass
your goal value `3.6 crore, you need to in-
vest `22,000 a month. Since you have a long
horizon, you can take risk to generate higher
returns. Instead of having an index fund
portfolio, a 50-50 combination of active and
passive funds will work better. Invest 50% in
the active flexi cap category, and 50% in a
Nifty 500 index fund. If you can take higher
risk, invest 20-30% in mid- and small-cap
funds as well. Have a buffer of
around a year or two at the
end of your time horizon,
and redeem during favour-
able market conditions.
RUSHABH DESAI
Founder, Rupee With Rushabh
Investment Services
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 50 years old and plan to retire in a year. I
have a corpus of `1.25 crore and my monthly
expense is `50,000. Can you suggest some funds
to invest in using the three-bucket approach?
There are a few important details that are missing. Will you
get pension? Will you retire at 50, but generate part-time in-
come? Will your spouse work after you retire? Do you have
rental income? Do you have separate emergency savings?
Do you have access to instruments like the PPF, NPS, etc? Do
you have a comprehensive health coverage? In the absence
of these, we will assume and make suggestions.
Bucket 1: Keep at least 7-8 years’ worth of expenses (around
`40 lakh) in this bucket. Use a combination of bank FDs, ultra
short and low duration debt funds. Allocation between these
can be decided on the basis of your comfort with either in-
strument. You can have periodic FDs maturing every month
or quarter. Additionally, set up SWPs from debt funds for re-
maining requirements to simulate a pension income stream.
If monthly expense estimate of `50,000 is on the upper side
(or if you have part-time income), set up a lower payout
schedule from FD/SWP. In this manner, your first bucket will
last longer than 7-8 years. This bucket will also act as your
ongoing emergency fund. The main purpose of this bucket is
to help you derive a constant income for several years, with
some liquidity to handle small emergencies.
Bucket 2: Keep `40 lakh for this bucket and in a balanced
mix of equity and debt. Depending on your risk appetite,
have 30-50% in equity and the rest in debt. For debt, pick
from low/short duration debt funds, and for equity, keep ag-
gressive hybrid funds, multi-asset funds and balanced ad-
vantage (dynamic allocation) funds. Once you reach the re-
quired age, park some money in SCSS, PO schemes, etc.
Bucket 3: The remaining corpus (`45+ lakh) should go to the
third bucket, which is not likely to be used for almost two
decades. The aim is growth that beats inflation in the long
term. Keep about 70% in equity, and the rest in debt. Invest
in a combination of Nifty50 index/active funds (30-40%),
flexi-cap or large- and mid-cap funds (30-40%), and corpo-
rate bond or conservative hybrid funds (30%). Regular main-
tenance and rebalancing of second and third buckets based
on market conditions is important. When you are 60-70,
years old, consider buying annuity as well to boost your
monthly income. Be willing to reduce expenses in years of
poor returns. This is because your current ex-
pense requirements (`6 lakh annually) and
availability of retirement corpus (`1.25
crore) are almost matched and do not
Shubham Agrawal
provide a buffer. Try to control your
withdrawal rate and have health insur-
ance in place before you quit your job.
Dev Ashish
Founder, StableInvestor, and Sebi-
registered investment advisor
I am 32 years old and have been
investing via SIPs for the past five
years. My portfolio, with equity
investment of `10 lakh, includes
Mirae Asset Emerging Bluechip,
Kotak Flexicap, SBI Bluechip
(stopped this and started Canara
Robeco Bluechip Equity), HDFC
Small Cap (stopped this and start-
ed Kotak Small Cap). I also started
investing in Parag Parikh Flexicap
10 months ago. The total SIP outgo
is `25,000 a month. I am thinking
of stopping the SIP in Kotak Flexi-
cap due to underperformance.
Where else can I invest? My goal is
long-term wealth creation and my
risk appetite is aggressive.
Kotak Flexicap Fund has shown un-
derperformance in the recent past. It
is a large fund, which makes it diffi-
cult for the fund manager to pick suit-
able stocks. Also, the fund has almost
75% exposure to large-caps. There-
fore, consider stopping your SIP in
this fund. We recommend investing
in index funds like the Sensex and
Nifty instead. You should also look at
a new SIP in the mid-cap category.
You can consider Nippon
India Growth or Edel-
weiss Midcap Fund.
Manish Kothari
Co-founder and CEO, Zfunds
My brother and I have a joint
brokerage account with IBKR,
investing primarily in international
markets. I am an Indian resident,
while he is an NRI in Germany. How
will our account be taxed consider-
ing that I am the primary holder?
In case of jointly held assets or a
brokerage account, the taxability of
each co-owner depends on the ratio
of ownership. This can be deter-
mined by the ratio of capital contri-
bution. All gains arising from this
brokerage account should be taxed
as per this ratio. Your brother being
an NRI will need to file a return in
India for these gains and pay taxes.
There is a double taxation avoid-
ance agreement between India and
Germany, so he can get credit for
tax paid in his German tax returns.
The tax rate will depend on the
type of asset sold and its period of
holding. For ease of operation, bro-
kerages report profit and loss, and
deduct tax, if any, in
the name of the
first holder only.
Senior Taxation Advisor,
TaxFile.in
Ask our experts
Have a question for the experts?
etwealth@timesgroup.com
SMART STATS
The Economic Times Wealth
July 18-24, 2022

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

ET WEALTH TOP 50 STOCKS

ALTERNATIVE INVESTMENTS- P19

Every week we put about 3,000 stocks through four key filters and rate them on a mix of factors. The end result
of this is the listing of the top 50 stocks based on the composite rating to help ease your fortune hunt.

RANK PRICE ` GROWTH%* VA LUAT I O N R AT I O S RISK R AT I N G

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

1 Fast growing stocks

Oil India 1 1 178.00 38.16 43.35 3.47 0.64 5.80 0.15 2.29 0.35 20 4.40
IndusInd Bank 2 2 820.90 21.24 57.46 13.18 1.32 0.61 0.21 1.69 1.59 49 4.69
Hero MotoCorp 3 3 2,792.80 27.57 50.37 24.00 3.51 3.34 0.47 1.25 0.84 49 4.12 Top 5 stocks with the highest
revenue growth (%) over the
Bandhan Bank 4 4 275.35 48.33 126.97 20.25 2.57 0.36 0.17 1.90 1.36 27 4.44
previous year
UPL 5 6 670.15 12.72 37.63 14.34 2.11 1.47 0.34 1.38 0.93 30 4.73
Bandhan Bank 48
NCC/India 6 5 57.20 2.41 53.18 7.23 0.62 1.37 0.14 1.64 1.11 18 4.83
Sagar Cements 7 8 170.45 42.86 85.30 28.55 1.57 0.82 0.42 1.88 0.94 12 4.58 Biocon 48
Larsen & Toubro 8 7 1,646.15 18.78 37.82 26.69 2.81 1.09 0.64 1.13 1.03 41 4.85
Oberoi Realty 47
Embassy Office Parks REI 9 9 369.99 22.41 37.55 39.45 1.35 5.90 0.87 0.97 0.18 15 4.80
Sagar Cements 43
Mahanagar Gas 10 13 795.30 26.22 25.46 13.24 2.20 2.94 0.52 1.27 0.98 33 4.15
Adani Ports & SEZ 11 10 724.45 28.62 75.28 32.15 3.99 0.69 0.42 1.54 1.51 25 4.60 Eicher Motors 40

Balrampur Chini Mills 12 11 360.30 18.52 59.61 16.10 2.66 0.69 0.26 2.07 0.98 10 4.90
Quess Corp 13 16 575.00 27.56 83.65 34.49 3.42 1.38 0.40 1.84 1.37 13 4.61
2 Least expensive stocks
Maruti Suzuki India 14 20 8,567.75 31.04 124.34 65.72 4.61 0.53 0.57 1.31 0.95 53 4.13
Top 5 stocks with the lowest
KEC International 15 12 455.85 19.56 71.99 34.68 3.18 0.89 0.50 1.49 0.87 28 4.32 price-earnings ratio
Eicher Motors 16 17 2,955.10 40.32 68.56 47.96 6.38 0.57 0.71 1.22 0.66 47 4.17 Oil India
3.47
CESC 17 19 74.70 13.06 18.18 7.13 0.93 6.16 0.40 1.36 0.62 18 4.89 Oil & Natural
Gas Corp 3.47
Gujarat State Petronet 18 22 231.85 22.44 25.28 7.95 1.64 0.88 0.30 1.45 1.22 26 4.58
Dr Reddy's Laboratories 19 15 4,575.40 11.47 50.69 32.08 3.96 0.67 0.64 1.20 0.50 42 4.69 Vedanta 4.59

Container Corp Of India 20 18 674.25 26.05 50.27 38.99 3.81 0.89 0.84 1.34 1.02 35 4.51 Manappuram 5.80
Finance
Reliance Industries 21 23 2,397.15 27.81 38.14 26.06 2.08 0.29 0.71 1.26 0.99 39 4.31
Coal India 6.87
Oil & Natural Gas Corp 22 26 127.15 14.95 7.49 3.47 0.61 7.31 0.30 1.84 0.18 29 4.21
Bank of Baroda 23 25 105.20 0.45 22.71 7.15 0.61 2.63 0.31 1.82 1.36 35 4.57
Torrent Pharmaceuticals 24 24 1,499.85 15.76 98.35 65.20 8.51 1.62 0.72 1.42 0.50 32 4.38 3 Best PEGs
Top 5 stocks with the least
NTPC 25 27 148.30 12.23 12.04 8.60 1.06 4.81 0.76 1.19 0.82 28 4.82
price earnings to growth ratio
Cyient 26 29 769.55 26.76 17.61 15.97 2.67 3.10 0.98 1.43 0.68 20 4.50
Oil India Vedanta
EPL 27 28 169.35 15.06 40.53 24.51 2.88 2.48 0.63 1.37 0.98 14 4.43
Exide Industries 28 21 148.80 8.78 32.00 18.13 1.19 1.33 0.49 1.11 1.18 25 4.28
0.14 0.15 0.17 0.17 0.21
Mphasis 29 32 2,111.20 26.39 30.09 28.11 5.81 3.40 0.97 1.70 1.35 32 4.56
Zee Entertainment 30 31 224.40 10.82 44.93 22.22 1.97 1.12 0.55 2.01 1.48 23 4.52
Hindustan Zinc 31 30 283.70 18.54 25.06 12.57 3.53 6.63 0.40 1.44 0.66 19 2.58 NCC/India Bandhan IndusInd Bank
Bank
Birla Corp 32 34 908.40 21.16 16.58 18.37 1.21 1.05 0.94 1.73 0.88 23 4.70
Symphony 33 35 845.95 36.02 75.51 49.51 7.07 0.81 0.65 1.26 0.82 10 4.30
4 Income generators
Vedanta 34 33 227.90 3.28 21.80 4.59 1.32 19.19 0.17 2.30 0.87 18 4.11
Top 5 stocks with the highest
Jyothy Labs 35 36 165.10 13.90 46.32 37.38 4.19 1.52 0.84 1.06 0.65 17 4.35 dividend yield (%)
Indoco Remedies 36 37 379.85 19.17 35.86 22.45 3.84 0.39 0.62 1.56 0.73 10 4.70 Vedanta 19.19
HG Infra Engineering 37 38 528.05 25.35 8.54 9.06 2.40 0.15 0.26 2.04 1.36 16 5.00 Coal India 9.05
VRL Logistics 38 46 657.95 25.44 42.55 35.56 8.74 1.24 0.63 2.18 1.70 12 4.75 Oil & Natural
7.31
Gas Corp
Endurance Technologies 39 45 1,434.15 22.91 47.06 43.80 5.15 0.41 0.89 1.54 0.80 24 4.50
Hindustan Zinc 6.63
Biocon 40 40 331.90 48.12 83.73 60.50 4.88 0.15 0.79 1.54 0.60 21 3.86
CESC 6.16
Alembic Pharmaceuticals 41 48 710.55 11.98 36.57 25.64 2.67 1.94 0.67 1.30 0.48 19 3.26
Coal India 42 43 192.00 17.19 7.26 6.87 2.76 9.05 0.88 1.58 0.80 27 4.26
5 Least risky
Manappuram Finance 43 39 88.15 10.86 15.08 5.80 0.92 3.30 0.39 1.96 1.38 17 4.59 Top 5 stocks with the lowest
Glenmark Pharma. 44 42 389.30 20.55 21.60 11.63 1.21 0.65 0.51 1.42 0.87 20 3.80 downside risk
Exide
Oberoi Realty 45 -- 834.05 46.56 36.85 28.78 2.89 0.36 0.72 1.85 1.54 25 3.76 Industries
Jyothy Labs
Bharat Electronics 46 50 237.40 21.24 19.09 23.70 4.63 1.80 1.25 1.41 1.09 29 4.69
Varun Beverages 47 47 834.80 34.59 84.79 81.85 13.93 0.19 0.93 1.58 0.73 17 4.71
0.97 1.06 1.08 1.11 1.13
City Union Bank 48 -- 150.30 15.54 24.62 14.60 1.69 0.13 0.60 1.31 1.13 26 4.54
Coforge 49 -- 3,417.25 28.43 34.00 31.46 7.81 1.48 0.90 1.97 1.30 27 4.11
Embassy Office Cipla/India Larsen &
Cipla/India 50 -- 951.15 11.93 29.09 30.56 3.69 0.52 1.04 1.08 0.08 44 4.39 Parks REI Toubro
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 14 JULY 2022. SOURCE: BLOOMBERG IN THE ADJACENT TABLE.
 smart stats
16 The Economic Times Wealth July 18-24, 2022

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 5.67 15.97
ranked on 3-year returns while debt-oriented hybrid and income funds are Taurus Largecap Equity Nippon India ETF Nifty 50 Value 20

ranked on 1-year returns. 6.09 15.77

JM Focused Kotak Nifty 50 Value 20 ETF
6.60 15.69
RETURNS (%) DSP Top 100 Equity ICICI Prudential Nifty50 Value 20 ETF
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) 6.75 12.04
IDBI Nifty Junior Index Canara Robeco Bluechip Equity
EQUITY: LARGE CAP 6.85 12.01
Canara Robeco Bluechip Equity Fund*
Kotak Bluechip Fund*


6,824.39
4,217.00
-7.51
-6.95
-13.34
-12.14
-1.57
-0.16
14.66
13.90
12.04
10.06
1.87
2.04
14.66% Navi Large Cap Equity HDFC S&P BSE Sensex ETF

UTI Mastershare Fund*  9,237.78 -8.52 -14.40 0.59 13.63 10.44 2.04 THE 3-YEAR
RETURN OF
ICICI Prudential Bluechip Fund*
Baroda BNP Paribas Large Cap Fund*


29,981.07
1,204.99
-7.12
-7.08
-10.39
-11.21
5.05
1.08
13.25
12.79
10.59
9.49
1.70
2.27
CANARA
ROBECO
Equity: Flexi-cap 5-year returns
Mirae Asset Large Cap Fund*  30,299.43 -7.22 -11.84 0.75 12.37 10.59 1.59 BLUECHIP IS
IDFC Nifty 50 Index Fund*  424.17 -8.05 -11.76 1.86 12.33 11.01 0.36 THE HIGHEST 4.14 16.50
UTI Nifty 50 Index Fund*  7,068.10 -8.14 -11.97 1.91 12.32 11.05 0.31 IN ITS Motilal Oswal Flexi Cap Parag Parikh Flexi Cap
CATEGORY.
ICICI Prudential S&P BSE Sensex Index Fund*  561.72 -7.75 -12.06 2.12 12.25 — 0.29 4.55 15.48
HDFC Index Fund Nifty 50 Plan*  5,940.60 -8.17 -12.02 1.76 12.05 10.85 0.40 Taurus Flexi Cap Quant Flexi Cap
Invesco India Largecap Fund*  616.25 -8.48 -15.35 0.71 12.03 9.26 2.39
5.07 13.22
HDFC Index Fund - S&P BSE Sensex Plan*  3,390.39 -7.78 -12.08 2.13 12.00 11.49 0.40
Nippon India Retirement IIFL Focused Equity
Nippon India Index Fund - S&P BSE Sensex Plan*  282.71 -7.79 -12.13 2.08 11.92 11.18 0.54
Tata S&P BSE Sensex Index Fund*  137.06 -7.75 -12.05 1.85 11.44 11.07 0.58 6.06 12.52
Axis Bluechip Fund*  32,322.11 -10.13 -16.52 -5.23 11.11 11.73 1.74 IDFC Focused Equity UTI Flexi Cap

EQUITY: LARGE & MIDCAP 6.96 12.47

Quant Large and Mid Cap Fund*  155.43 -10.20 -7.64 8.86 20.77 11.87 2.31 20.77% IDFC Flexi Cap PGIM India Flexi Cap
Mirae Asset Emerging Bluechip Fund*  20,663.71 -7.83 -13.12 -0.10 18.95 13.57 1.69 THE 3-YEAR
Axis Growth Opportunities Fund*  7,070.61 -10.70 -15.34 -2.79 18.86 — 2.00 RETURN
Canara Robeco Emerging Equities Fund*  12,768.56 -7.35 -13.39 0.28 17.22 11.38 1.84 OF QUANT
LARGE AND
Equity: Mid-cap 3-year returns
SBI Large & Midcap Fund  6,394.23 -8.06 -10.78 1.16 16.11 11.51 1.88
MID CAP IS 13.30
Kotak Equity Opportunities Fund*  9,222.59 -8.50 -10.13 1.15 15.91 10.56 1.83 THE HIGH-
31.90
Edelweiss Large & Mid Cap Fund*  1,269.68 -7.46 -12.09 0.01 15.79 11.90 2.27 EST IN ITS Franklin India Prima PGIM India Midcap Opportunities

EQUITY: FLEXI CAP

CATEGORY. 13.60 29.76
Parag Parikh Flexi Cap Fund*  22,323.99 -8.46 -13.34 1.04 21.34 16.50 1.94 Sundaram Mid Cap Quant Mid Cap
PGIM India Flexi Cap Fund*  4,241.13 -11.14 -17.66 -3.83 20.01 12.47 1.98 14.54 23.94
HDFC Retirement Savings Fund Equity Plan*  2,087.87 -5.60 -8.19 3.42 17.97 12.06 2.15 L&T Midcap SBI Magnum Midcap
IIFL Focused Equity Fund*  2,777.90 -9.39 -15.96 0.28 17.90 13.22 1.96 14.97 22.67
UTI Flexi Cap Fund*  22,656.75 -11.20 -19.98 -6.45 16.88 12.52 1.81
DSP Midcap Motilal Oswal Midcap 30
Union Flexi Cap Fund  1,084.67 -7.67 -13.96 -0.33 16.08 11.25 2.32
Sundaram Focused Fund*  648.72 -11.26 -15.25 -3.06 15.40 10.84 2.56 15.02 22.19
Canara Robeco Flexi Cap Fund*  7,102.55 -8.41 -14.81 -0.95 15.00 12.07 1.90 IDBI Midcap Edelweiss Mid Cap
SBI Focused Equity Fund  23,804.00 -9.29 -15.81 -1.20 14.19 12.35 1.63
Axis Flexi Cap Fund*  9,696.34 -10.69 -18.08 -4.64 12.39 — 1.85

EQUITY: MID CAP Equity: Small-cap 3-year returns

PGIM India Midcap Opportunities Fund*  5,168.64 -6.10 -12.26 7.94 31.90 16.17 2.11 31.90%
Edelweiss Mid Cap Fund*  1,863.52 -7.01 -10.61 1.26 22.19 13.16 2.11 THE 13.74 38.80
Kotak Emerging Equity Fund*  18,258.63 -7.80 -9.44 3.20 21.40 12.86 1.73 3-YEAR Aditya Birla Sun Life Quant Small Cap
RETURN OF
Nippon India Growth Fund*  11,267.89 -6.33 -9.77 6.03 20.57 12.95 1.89
PGIM INDIA 16.75 32.46
Axis Midcap Fund*  16,566.73 -7.55 -13.29 0.58 20.16 15.39 1.82 HSBC Small Cap Equity Bank of India Small Cap
MIDCAP
Invesco India Mid Cap Fund*  2,148.46 -7.99 -13.39 -0.54 19.13 12.68 2.09 OPP IS 17.02 31.98
THE HIGH-
EQUITY: SMALL CAP EST IN ITS Franklin India Smaller Canara Robeco Small Cap
Kotak Small Cap Fund*  7,079.71 -9.32 -12.49 4.57 29.61 15.20 1.95 CATEGORY. 18.09 29.61
Nippon India Small Cap Fund*  18,358.16 -9.08 -11.64 7.70 28.22 15.66 1.82
HDFC Small Cap Kotak Small Cap
Axis Small Cap Fund*  8,955.50 -7.93 -10.24 5.55 25.52 17.16 1.97
SBI Small Cap Fund  11,646.28 -6.07 -8.71 4.67 25.35 16.73 1.74 20.87 28.25
Sundaram Small Cap Union Small Cap
EQUITY: VALUE ORIENTED
SBI Contra Fund  4,670.06 -4.43 -5.99 10.66 23.71 12.64 1.94
UTI Value Opportunities Fund*  6,054.55 -7.09 -11.43 -0.02 15.54 11.23 2.00 Hybrid: Aggressive 5-year returns
Invesco India Contra Fund*  8,210.76 -6.85 -11.22 0.59 14.87 11.69 1.77
Kotak India EQ Contra Fund*  1,192.39 -8.18 -11.34 0.31 13.99 11.77 2.28
3.94 16.81
EQUITY: ELSS Nippon India Equity Hybrid Quant Absolute
Quant Tax Plan*  1,370.20 -10.95 -9.51 4.96 30.43 19.19 2.62 30.43% 4.93 12.28
Bank of India Tax Advantage Fund*  551.26 -9.63 -16.26 -4.30 21.08 13.11 2.50
THE 3-YEAR LIC MF Children's Gift ICICI Prudential Equity & Debt
IDFC Tax Advantage (ELSS) Fund*  3,399.14 -9.46 -12.01 3.50 17.66 11.86 1.95 RETURN OF
Canara Robeco Equity Tax Saver Fund*  3,517.62 -7.20 -13.65 -0.20 17.30 13.67 2.04 QUANT TAX 5.19 10.87
Mirae Asset Tax Saver Fund*  11,494.59 -8.18 -12.66 0.00 17.23 13.55 1.66 PLAN IS IDBI Hybrid Equity Bank of India Mid & Small Cap
THE HIGH-
Union Long Term Equity Fund  478.56 -7.39 -12.33 2.26 16.77 11.19 2.53
EST IN ITS
5.54 10.48
DSP Tax Saver Fund*  9,091.49 -7.94 -10.99 -0.32 16.02 11.45 1.78 CATEGORY. PGIM India Hybrid Equity HDFC Children's Gift
JM Tax Gain Fund*  60.92 -8.27 -14.67 1.02 15.29 11.24 2.54
6.07 10.37
Kotak Tax Saver*  2,528.82 -9.01 -11.57 1.29 14.51 10.48 2.00
L&T Hybrid Equity Baroda BNP Paribas Aggressive
Axis Long Term Equity Fund*  27,627.69 -12.30 -19.93 -10.12 10.57 10.12 1.55
ANNUALISED RETURNS IN % AS ON 13 JULY 2022.
 smart stats
The Economic Times Wealth July 18-24, 2022 17

ETW FUNDS 100 RETURNS (%)

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

HYBRID: EQUITY SAVINGS

Top 5 equity schemes based
Mahindra Manulife Equity Savings Dhan Sanchay  417.78 -4.89 -6.01 2.11 9.75 6.78 2.57
Kotak Equity Savings Fund*  1,908.19 -1.54 -1.29 5.85 8.75 7.67 2.14
on 10-year SIP returns
Edelweiss Equity Savings Fund*  315.08 -2.55 -3.48 1.76 8.54 7.61 2.07 Nippon India Small Cap
22.82
HYBRID: AGGRESSIVE (EQUITY-ORIENTED)
Quant Absolute Fund*  437.03 -5.95 -4.62 7.93 24.56 16.81 2.31 24.56% SBI Small Cap
Bank of India Mid & Small Cap Equity & Debt Fund*  322.07 -12.00 -16.76 -2.12 21.30 10.87 2.55 THE 3-YEAR 22.74
ICICI Prudential Equity & Debt Fund*  18,586.87 -6.65 -5.20 14.00 16.89 12.28 1.80 RETURN OF
QUANT AB- Quant Tax Plan
Kotak Equity Hybrid Fund*  2,539.24 -5.77 -7.69 3.25 14.83 10.01 2.08
SOLUTE FUND 21.99
HDFC Children's Gift Fund*  5,216.99 -3.43 -7.04 2.29 13.82 10.48 1.93 IS THE HIGH-
Baroda BNP Paribas Aggressive Hybrid Fund*  721.76 -6.47 -9.59 -1.91 13.17 10.37 2.39 EST IN ITS Mirae Asset Emerging Bluechip
Canara Robeco Equity Hybrid Fund*  7,428.51 -6.17 -10.48 -0.45 12.90 10.30 1.87 CATEGORY.
20.18
HDFC Retirement Savings Fund - Hybrid Equity Plan*  796.65 -3.94 -7.45 0.42 12.48 9.76 2.42
DSP Equity & Bond Fund*  6,836.89 -7.00 -12.44 -4.80 12.10 8.78 1.85 Kotak Small Cap
SBI Equity Hybrid Fund  48,908.09 -6.28 -7.76 2.54 11.97 10.31 1.51 19.92
Mirae Asset Hybrid Equity Fund*  6,395.79 -6.15 -9.44 0.33 11.38 9.94 1.81
SIP: SYSTEMATIC % ANNUALISED RETURNS
Axis Equity Hybrid Fund*  1,729.85 -7.77 -13.21 -0.84 11.27 — 2.18
INVESTMENT PLAN AS ON 13 JULY 2022
Axis Children's Gift*  639.91 -9.30 -14.87 -1.16 11.20 9.40 2.42

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

SBI Magnum Children's Benefit Fund - Savings Plan
ICICI Prudential Regular Savings Fund*
SBI Conservative Hybrid Fund



85.34
3,204.22
6,079.02
-1.85
-0.68
-0.74
-2.79
-1.13
-1.71
5.85
5.67
5.48
10.39
8.59
10.11
8.22
7.68
7.04
1.20
1.75
1.10
2 Top 5 MIPs
Top 5 MIP schemes based on
Kotak Debt Hybrid Fund*  1,468.39 -1.18 -2.52 4.54 10.05 7.64 1.84 3-year SWP returns
Canara Robeco Conservative Hybrid Fund*  1,117.58 -1.54 -2.52 1.91 8.75 7.29 1.83
Bank of India Conservative Hybrid
DEBT: MEDIUM- TO LONG-TERM
13.86
Aditya Birla Sun Life Income Fund*
ICICI Prudential Bond Fund*


1,532.87
2,576.08
-0.15
0.89
-0.13
0.40
2.39
1.93
5.83
6.10
5.98
6.10
0.90
1.18
2.39% SBI Magnum Children's Benefit
THE 1-YEAR
SBI Magnum Income Fund  1,543.25 0.67 0.05 1.84 6.51 6.38 1.46
RETURN OF 11.57
Kotak Bond Fund*  1,550.79 0.12 -0.82 1.41 5.09 5.29 1.79 ABSL INCOME Kotak Debt Hybrid
FUND IS
DEBT: MEDIUM-TERM THE HIGH- 11.00
Axis Strategic Bond Fund*  1,681.95 0.75 1.03 3.73 6.91 6.61 1.10 EST IN ITS SBI Conservative Hybrid
ICICI Prudential Medium Term Bond Fund*  6,355.24 1.04 1.31 3.63 7.24 6.60 1.38 CATEGORY.
SBI Magnum Medium Duration Fund  9,384.37 0.63 0.50 2.67 6.96 7.07 1.21 10.82
HDFC Medium Term Debt Fund*  3,612.00 0.23 0.16 2.59 6.15 6.30 1.30 Canara Robeco Conservative Hybrid
DEBT: SHORT-TERM 9.55
Aditya Birla Sun Life Short Term Fund*  4,630.66 0.85 1.49 3.52 6.51 6.67 1.11 3.52% SWP: SYSTEMATIC % ANNUALISED RETURNS
ICICI Prudential Short Term Fund*  15,492.50 1.00 1.42 3.36 6.61 6.57 1.12 THE 1-YEAR WITHDRAWAL PLAN AS ON 13 JULY 2022
Axis Short Term Fund*  6,539.05 0.61 1.12 3.08 6.29 6.57 0.96 RETURN
Nippon India Short Term Fund*  7,283.85 0.27 0.68 2.87 6.22 6.22 1.15 OF ADITYA
BIRLA SUN
Mid & Small : Cap expo-
3
HDFC Short Term Debt Fund*  13,834.21 0.56 0.86 2.86 6.61 6.92 0.75
LIFE SHORT
TERM FUND
DEBT: DYNAMIC BOND
IS THE HIGH- sure of Flexi Cap funds
IIFL Dynamic Bond Fund*  576.15 0.25 0.82 4.00 6.04 5.96 0.52 EST IN ITS
Quantum Dynamic Bond Fund*  83.64 1.05 1.32 3.29 5.62 5.72 0.73 CATEGORY.
48.50 46.73 46.62
ICICI Prudential All Seasons Bond Fund*  5,616.01 0.94 1.13 3.06 6.81 6.61 1.38 44.66
40.38
Kotak Dynamic Bond Fund*  2,065.01 -0.20 -0.21 2.28 5.67 6.80 1.20
HDFC Dynamic Debt Fund*  473.15 0.19 -0.73 0.37 6.13 4.40 1.74

DEBT: CORPORATE BOND

Nippon India Corporate Bond Fund*  2,019.37 0.64 1.24 3.62 6.40 6.55 0.63 Expense as on 30 June 2022
ICICI Prudential Corporate Bond Fund*  15,110.05 0.93 1.42 3.49 6.58 6.80 0.58 *Expense as on before 30
June 2022
Aditya Birla Sun Life Corporate Bond Fund*  13,326.37 0.51 1.16 3.19 6.86 7.15 0.46
Returns as on 13 July 2022
Kotak Corporate Bond Fund - Standard Plan*  8,902.49 0.43 0.99 3.18 6.17 6.79 0.66 Bank Nippon HDFC Taurus ABSL Bal
Assets as on 30 June 2022
HDFC Corporate Bond Fund*  21,663.40 0.28 0.44 2.64 6.45 6.93 0.60 Rating as on 30 June 2022 of India India Flexi Retire- Flexi Cap Bhav-
Flexi Cap ment ishya
Cap Savings Yojna
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns.
Did not find your fund here? % OF ASSETS AS ON 30 JUNE 2022
Log on to www.wealth.economictimes.com for an exhaustive list.

Methodology
The Top 100 includes only those funds that have a 5- or
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
4 Debt: Liquid
4-star rating from Value Research. The rating is determined
by subtracting a fund’s risk score from its return score. Multi-cap: Mostly invested in large- and mid-cap
companies.
FUND
RAISER
The result is assigned stars according to the following 0.20
0.19
distribution: Mid-cap: Mostly invested in mid-cap companies. 0.17 0.17
  Top 10% Small-cap: Mostly invested in small-cap companies. 0.14

`2,512
  Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
  Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
  Next 22.5% 100 listing) Income: Average maturity varies according to objective.
  Bottom 10%
Fixed-income funds less than 18 months old and equity funds
Gilt: Medium- and long-term; invest in gilt securities.
Equity-oriented: Average equity exposure more
CRORE
less than three years old have been excluded. This ensures than 60%. was the net inflow in Flexi
that all the funds have existed long enough to be tracked for Cap funds in June 2022, Canara IDBI Union IDFC L&T
Debt-oriented aggressive: Average equity exposure Robeco Liquid Liquid Cash Liquid
consistency of performance. Given the focus on long-term between 25-60%. the highest among equity
investing, liquid funds, short-term funds and FMPs are not Liquid
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure schemes. It constituted 16.2%
the growth option of funds that reinvest returns instead of less than 25%. of the total equity funds net % AS ON 31 MAY 2022
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity inflows, as per AMFI data. % EXPENSE RATIO IS CHARGED ANNUALLY.
Despite these rigorous filters, the list includes 2/3 funds of and derivatives.
METHODOLOGY OF TOP 100 FUNDS ON
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per WWW.WEALTH.ECONOMICTIMES.COM
The fund categories are: market conditions.
 loans and deposits
18 The Economic Times Wealth July 18-24, 2022

LOANS & DEPOSITS

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

Top five bank FDs

TENURE: 1 YEAR
Interest rate (%) What `10,000
HOME LOAN RATES
compounded qtrly will grow to
With effect from October 2019, all banks have made the transition to
Bandhan Bank 6.25 10,640
external benchmarks for pricing new home loans. Most banks have
RBL Bank 6.25 10,640
DCB Bank 6.10 10,624
picked the RBI repo rate as the external benchmark.
Indusind Bank
IDFC First Bank
6.00
5.75
10,614
10,588
REPO RATE: 4.90%
FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
DCB Bank 6.60 11,399 Punjab National Bank 7.50 6.80 8.05 7.00 8.15 9 June 2022
Bandhan Bank 6.50 11,376
Bank of India 7.25 6.90 8.60 6.90 8.75 4 May 2022
Indusind Bank 6.50 11,376
RBL Bank 6.50 11,376 Axis Bank 7.00 7.00 7.30 7.05 7.35 8 June 2022
IDFC First Bank 6.25 11,321 Canara Bank 7.30 7.05 9.25 7.10 9.30 7 June 2022
TENURE: 3 YEARS Indian Overseas Bank 6.85 7.05 7.30 7.05 7.30 25 Jan 2022
DCB Bank 6.60 12,170 Karur Vysya Bank 7.45 7.15 9.35 7.15 9.35 9 May 2022
Bandhan Bank 6.50 12,134
Bank of Maharashtra 7.70 7.30 8.70 7.55 9.20 10 June 2022
Indusind Bank 6.50 12,134
Union Bank of India 7.70 7.40 9.10 7.40 9.10 11 June 2022
RBL Bank 6.30 12,063
IDFC First Bank 6.25 12,045 Punjab & Sind Bank 7.50 7.40 8.25 7.55 8.50 8 June 2022

TENURE: 5 YEARS Indian Bank 7.70 7.40 8.15 7.55 8.30 9 June 2022
DCB Bank 6.60 13,872 UCO Bank 7.80 7.40 7.60 7.40 7.60 9 June 2022
Indusind Bank 6.50 13,804 Bank of Baroda 7.45 7.45 8.80 7.45 8.80 15 June 2022
RBL Bank 6.30 13,669
Kotak Mahindra Bank 7.50 7.50 8.00 7.55 8.10 8 June 2022
IDFC First Bank 6.00 13,469
SBI Term Loan 7.55 7.55 8.05 7.75 8.25 15 June 2022
Karur Vysya Bank 5.90 13,402
ICICI Bank 7.60 7.60 8.30 7.70 8.45 8 June 2022
Karnataka Bank 7.50 7.74 9.09 7.74 9.09 1 June 2022
Top five senior citizen bank FDs Central Bank of India 7.75 7.75 8.20 7.75 8.20 9 June 2022
Interest rate (%) What `10,000
TENURE: 1 YEAR compounded qtrly will grow to J & K Bank 7.85 7.85 8.25 7.85 8.25 10 June 2022
Bandhan Bank 7.00 10,719
Dhanlaxmi Bank 7.00 7.85 8.50 8.35 9.00 1 June 2022
RBL Bank 6.75 10,692
SBI Max Gain 7.55 7.95 8.45 8.05 8.55 15 June 2022
DCB Bank 6.60 10,677
Indusind Bank 6.50 10,666 South Indian Bank 7.25 8.25 10.50 8.60 11.00 1 June 2022
IDFC First Bank 6.25 10,640

TENURE: 2 YEARS
Bandhan Bank 7.25 11,545
Your EMI for a loan of `1 lakh
DCB Bank 7.10 11,511 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
Indusind Bank 7.00 11,489
@ 7% 1,980 1,161 899 775 707
RBL Bank 7.00 11,489
IDFC First Bank 6.75 11,432 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
Bandhan Bank 7.25 12,405
@ 9% 2,076 1,267 1,014 900 839
DCB Bank 7.10 12,351
@ 10% 2,125 1,322 1,075 965 909
Indusind Bank 7.00 12,314
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
RBL Bank 6.80 12,242
FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
IDFC First Bank 6.75 12,224

TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 7.10 14,217
Indusind Bank 7.00 14,148 Sukanya Samriddhi Yojana 7.60 250 1.5 lakh p.a. One account per girl child 80C
RBL Bank 6.80 14,009
Axis Bank 6.50 13,804 Senior Citizens' Savings Scheme 7.40 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
IDBI Bank 6.50 13,804
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 6.60 13,872
Indusind Bank 6.50 13,804 Single 4.5 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
RBL Bank 6.30 13,669 6.60 1,000
Scheme
Joint 9 lakh 5-year tenure, monthly returns Nil
IDFC First Bank 6.00 13,469
Kotak Mahindra Bank 5.90 13,402 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 14 July 2022 # Benefit available only for 5-year deposit
 market watch
The Economic Times Wealth July 18-24, 2022 19

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

Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
47,962 50,363 69,120 55,685 1,133 838 73.13 96.30
14 JULY 2021 14 JULY 2022 14 JULY 2021 14 JULY 2022 14 JULY 2021 14 JULY 2022 14 JULY 2021 13 JULY 2022

PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER

CHANGE
X 1 WEEK -0.62% 1 WEEK -2.10% 1 WEEK -4.47% 1 WEEK -6.26%
X 1 YEAR 5.01% 1 YEAR -19.44% 1 YEAR -26.02% 1 YEAR 31.68%

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)

Kush Industries 8.86 27.30 161.36 0.24 978.51 13.51 Meyer Apparel 1.31 -13.25 -3.68 0.21 4,299.58 10.55
DSJ Keep Learning 3.17 26.80 140.15 0.08 35.26 26.37 Integra Essentia 4.43 27.30 133.16 22.12 2330.50 170.87
Integra Essentia 4.43 27.30 133.16 22.12 2,330.50 170.87 Stampede Capital 0.68 0.00 3.03 1.52 1,386.94 19.47
Ventura Textiles 7.74 27.09 126.32 0.00 -9.90 15.05 Kush Industries 8.86 27.30 161.36 0.24 978.51 13.51
Regency Ceramics 5.93 26.98 104.48 0.02 55.70 15.68 Sankhya Infotech 8.59 27.26 -19.64 1.62 972.80 12.54
Sturdy Industries 0.75 13.64 70.45 2.66 720.24 11.34 Excel Realty N Infra 9.42 26.27 67.91 2.74 911.91 88.60
Excel Realty N Infra 9.42 26.27 67.91 2.74 911.91 88.60 Alps Industries 2.80 -5.08 -30.00 0.25 886.23 10.95
Venlon Enterprises 9.77 27.38 65.87 0.13 376.74 51.04 Sturdy Industries 0.75 13.64 70.45 2.66 720.24 11.34
Croissance 8.93 5.18 54.77 0.21 -82.34 61.17 Caspian Corporate Serv. 5.70 -3.23 -31.49 0.18 694.16 17.73
Esaar (India) 8.51 10.09 52.51 0.45 207.72 17.39 Shree Global Tradefin 8.13 3.44 1.88 14.80 657.49 1,034.22

Top price losers Top volume losers

Impex Ferro Tech 6.16 -14.21 -55.94 1.10 -82.22 54.16 Impex Ferro Tech 6.16 -14.21 -55.94 1.10 -82.22 54.16
Pro Fin Capital Services 1.26 -8.70 -52.99 19.75 148.54 26.71 Sawaca Business Machi. 1.90 14.46 -11.63 4.64 -81.07 21.74
Triveni Enterprises 3.01 -4.14 -44.97 2.91 -56.37 17.22 Zenith Steel Pipes 7.60 27.09 -34.48 2.29 -74.37 108.13
Sintex Plastics Technol. 3.21 -21.90 -43.49 6.41 59.24 204.22 Advik Capital 3.60 -1.37 8.43 7.25 -66.26 79.27
Tatia Global Venture 1.59 8.16 -42.18 3.40 474.78 24.10 Zee Learn 6.14 1.15 -11.91 1.19 -65.10 200.23
Seacoast Shipping Serv. 2.77 1.84 -36.90 28.99 47.14 93.27 Vikas Ecotech 3.61 -3.73 -12.17 18.13 -61.38 341.79
BCL Enterprises 2.17 6.37 -35.42 20.51 39.38 25.30 Sulabha Enggineers 5.08 -9.77 -28.15 1.97 -61.12 51.05
Zenith Steel Pipes 7.60 27.09 -34.48 2.29 -74.37 108.13 ARC Finance 1.13 -3.42 -8.87 31.69 -60.36 57.05
Sulabha Enggineers 5.08 -9.77 -28.15 1.97 -61.12 51.05 Prismx Global Ventures 4.96 -6.42 -21.02 2.16 -57.34 201.38
Vikas Proppant & Grani. 1.11 -23.45 -27.92 5.71 -20.56 57.13 Triveni Enterprises 3.01 -4.14 -44.97 2.91 -56.37 17.22

STOCKS HAVE BEEN SELECTED USING THE FOLLOWING FILTERS: PRICE LESS THAN `10, ONE-MONTH AVERAGE VOLUME GREATER THAN OR EQUAL TO 1 LAKH, AND MARKET
CAPITALISATION GREATER THAN OR EQUAL TO `10 CRORE. DATA AS ON 14 JULY 2022. SOURCE: ETIG DATABASE AND BLOOMBERG.
 mutual funds
20 The Economic Times Wealth July 18-24, 2022

SBI LARGE & MID CAP

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

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

Point-to-point returns (%)

BASIC Financial 15.07

FUND BENCHMARK CATEGORY AVERAGE FACTS Automobile 11.75

Consumer 8.13
DATE OF LAUNCH staples
16.11 15.05 28 FEBRUARY 1993
13.91 Healthcare 7.35
11.51 11.19 CATEGORY
9.66 Services 7.14
EQUITY
TYPE
2.73 The fund’s sectoral positioning
1.16 1.02 LARGE- & MID-CAP is fairly diversified.
1-YEAR 3-YEAR 5-YEAR AUM*
`6,394 Crore
Top 5 stocks in portfolio (%)
The fund has lagged the index over the past year, AS ON 13 JULY 2022
BENCHMARK
but retains outperformance over 3 & 5 years. NIFTY LARGE MIDCAP 250 ICICI Bank 5.97
TOTAL RETURN INDEX
Page Industries 4.54
Reliance
Rolling returns (%) FUND BENCHMARK WHAT IT Industries 4.47

18.81 COSTS HDFC Bank

Infosys
3.37

3.34
1-YEAR
16.17 NAV**
GROWTH OPTION
The fund portfolio is well-diversified in
13.72 `343.77 individual bets with no outsized positions.
3-YEAR IDCW
11.78
`155.31
MINIMUM INVESTMENT
13.87
`5,000
5-YEAR Recent portfolio changes
11.92 MINIMUM SIP AMOUNT
`500 New Entrants
The fund’s long-term track record indicates EXPENSE RATIO*** (%) Motherson Sumi Wiring India, Muthoot
healthy outperformance across time frames. AS ON 13 JULY 2022 1.88 Finance, The Ramco Cements, Tube
Investments Of India, Ultratech Cement, United
EXIT LOAD
Note: Different benchmark (S&P BSE Large Mid Cap TRI) is used due to non-availability of stated benchmark data. Breweries.
The above figures denote daily average rolling return over past decade for relevant time frames. 0.1% for redemption
within 30 days
*AS ON 30 JUNE 2022 Complete Exits

WHERE THE FUND INVESTS

**AS ON 13 JULY 2022
***AS ON 31 MAY 2022 ABB India, Brigade Enterprises, Natco Pharma,
Tata Motors, Torrent Pharmaceuticals.
Cholamandalam Investment & Finance
Portfolio asset Fund Company, Kotak Mahindra Bank.
allocation style box
Growth Blend Value
How risky is it?
Large

Equity 92.56%
CAPITALISATION

Fund Category Index

Large-cap 41.39%
Standard Deviation 23.80 22.67 21.75
Medium

Mid-cap 36.74%
Small-cap 21.87% Sharpe Ratio 0.55 0.51 0.49

FUND
Small

Debt & Cash 7.44% Mean Return 16.53 14.97 14.10

INVESTMENT STYLE
MANAGER BASED ON 3-YEAR PERFORMANCE.

The fund’s risk-return profile is better

The fund retains sizeable presence in small SAURABH PANT than its category average.
caps apart from its large & mid cap tilt. TENURE: 5 YEARS, 9 MONTHS
Source: Value Research

Should
From a market-cap agnos- core buckets distinctly. In its a pure bottom-up approach. fund put in a strong show last
tic multi-cap offering (SBI large-cap portfolio, it remains Its sizeable small-cap pres- year. The fund needs to show

You Magnum Multiplier), it mor-

phed into a large- & mid-cap
benchmark conscious and
plays a momentum strategy.
ence, compared to peers, is an
outcome of this approach than
consistency in delivering out-
performance in its new avatar

Buy fund in 2018. Under its revised

mandate, the fund runs the two
Within the mid-cap arena, it
chases absolute returns with
design. After a stretch of weak
performance (2018-20), the
to be counted among the top
picks in its category.
 pick of the week
The Economic Times Wealth July 18-24, 2022 21

ICICI Lombard: On growth track

Increasing retail focus, merger synergies and supportive regulatory environment make it an attractive bet.

G Fundamentals
iven the favourable dynamics of the general insur- Meanwhile, gains in the engineering segment were aided by
ance industry, ICICI Lombard is set to deliver robust extensive direct engagement and domain driven expertise.
growth. Since 2008, the company has delivered PAT Third, the company will benefit from strong synergies after CONSENSUS
ACTUAL
ESTIMATE
CAGR of 22.7% compared to the general insurance the Bharti AXA merger in 2021-22. Consolidation of branches,
2021 2022 2023 2024
industry’s 13-year PAT CAGR of 2.4%, according to the compa- technology integration, optimisation of organisational struc-
ny’s annual report 2021-22. This was supported by disciplined ture, new OEM partners and new bancassurance partners in Revenue (` cr) 11,124.70 21,660.18 17,933.70 19,174.01

underwriting, sustainable value creation and excellence in distribution are key synergies of the merger, as per a Motilal EBITDA (` cr) 1,477.07 1,793.97 2,269.72 5,822.53
customer service. Oswal report. A `200 crore synergy benefit is expected, out of Net Income (` cr) 1,473.16 1,271.01 1,788.98 2,177.69
In 2021-22, it reported GDPI of which `70 crore has been realised Basic EPS (`) 32.27 25.82 36.35 45.71
`17,977 crore, which grew 28.4% in 2021-22.
y-o-y. Analysts remain confident Analysts’ views Fourth, it plans to continue ex- Valuations PBV PE
DIVIDEND
YIELD (%)
of its prospects due to multiple rea- pansion in distribution, digital,
2 ICICI Lombard General Insur. 8.26 48.31 0.59
sons. First, the pandemic has led to
Hold
23 technology and claims services, Life Insurance Corporation 71.22 151.52 0.00
a change in consumer perception Buy and plans to invest `100-150 crore in
SBI Life Insurance Company 9.81 75.70 0.18
about health insurance. Availability 2022-23. It also aims to build growth
of online policy issuance and claims, momentum while focusing on un- HDFC Life Insurance Company 13.14 85.54 0.32
ICICI Prudential Life Insurance 8.71 97.16 0.11
growing insurable population, con- 5 derwriting profitable segments.
tinued efforts of the regulator in Its stock is trading close to an
making insurance affordable and
Sell
all-time low on a one-year forward Brokerage calls TARGET
protecting customer rights have pro- valuation, according to the Motilal RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
vided an impetus to the industry. Oswal report. Adverse regulatory 8 July Motilal Oswal Buy 1,500
Second, the company is likely to policies and impact on pricing pow- 7 July Credit Suisse Outperform 1,400
witness traction across segments. ICICI Lombard has plans to continue expansion across er due to increasing competition
7 July YES Research Buy 1,600
Revival of the auto sector with eas- distribution, digital, technology and claims services. will be key risks going forward.
It is also expanding its network to tier 3 and tier 4 7 July IIFL (Institutional) Buy 1,600
ing supply chain issues and likely Select ion methodolog y: We
cities improving growth visibility. This has made the 6 July Elara Capital Accumulate 1,335
jump in demand for two-wheelers company a favourite of analysts. pick the stock that has shown the
due to the opening up of offices and maximum increase in ‘consensus
colleges, is expected to increase auto sales, subsequently analyst rating’ during the past month. The consensus rating Relative performance SENSEX
pushing the motor insurance segment. The company achieved is arrived at by averaging all analyst recommendations after 100 MARKET PRICE: `1,250.2 101.2
leadership in motor segment, with a market share of 11.8%, in attributing weights to each of them (5 for strong buy, 4 for buy,
2021-22. Its health insurance segment is poised to gain market 3 for hold, 2 for sell and 1 for strong sell) and any improvement
S&P BSE
share with network expansion to tier 3 and tier 4 cities. in consensus analyst rating indicates that the analysts are 81
The company is also seeing market share accretion in com- getting more bullish on the stock. To make sure that we pick
mercial segments. Its initiatives, such as innovative value- only companies with decent analyst coverage, this search will
added services, helped improve market share in the fire seg- be restricted to stocks with at least 10 analysts covering them.
ment, whereas anti-theft and anti-hijacking programs and You can see similar consensus analyst rating changes during 13 JULY 2021 ICICI LOMBARD 14 JULY 2022
supply chain solutions supported the marine cargo segment. the past week in ETW 50 table. —Sameer Bhardwaj ICICI Lombard is compared with BSE Sensex. Stock price and index values
normalised to a base of 100. Source: ETIG and Bloomberg.

WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
*STOCK PRICES AS ON 14 JULY

STOCK ADVICE COMMENT

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

Maintain 'buy' due to superior product mix. Its upcoming facility in south India will improve
Ganesha Ecosphere Antique Stock Broking Buy 719 1,000 39 EBITDA margins and reduce logistics costs. Its EPS is expected to double by 2023-24.

Rate 'buy' due to its focus on high-margin chronic therapeutic areas, potential in domestic trade gener-
Windlas Biotech Choice Equity Buy 222 289 30 ics and OTC brands, synergy benefits due to technological advancements and operational efficiencies.
Maintain 'buy', as it is well positioned to benefit from growth engines in enterprise, 5G driven
Tech Mahindra Kotak Securities Buy 1,021 1,300 27 investments by telecom companies and demand tailwinds in multiple service portfolios. Also, the
valuations adequately capture risks.
Initiate 'buy' as demand from steel and cement sectors is expected to drive higher utilisation.
Elecon Engineering Co. Edelweiss Buy 297 374 26 Operating leverage, improving balance sheet and low interest income are other key catalysts.

Strong AUM growth and normalisation of operating and credit costs are expected to improve RoA/
Home First Finance Mirae Asset Buy 756 945 25 RoE. Focus on affordable housing, expectation of stable asset quality, etc., are other positives.

It is expected to achieve revenue growth guidance in 2022-23 given its strength in digital
HCL Technologies Sharekhan Buy 928 1,140 23 foundation, unique integrated infrastructure and leadership in the fast growing ERD segment.

REDUCE
RESEARCH STOCK 1-YEAR TARGET POTENTIAL
STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) DOWNSIDE (%)

Maintain ‘sell’ as sales remain subo-optimal compared to the pre-pandemic days. The recovery
Avenue Supermarts HDFC Securities Sell 3,942 2,700 -32 for the next two years has been factored in. However, the assumption stands at risk, given the
heightened competition from deep-pocketed retailers.
 tax optimiser
22 The Economic Times Wealth July 18-24, 2022

Deductions can reduce tax to zero

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

D
elhi-based marketing
executive Daljeet Singh
pays a low tax because
his salary is not very INCOME
FROM EMPLOYER
high. There is still scope
to reduce his tax liability further.
Taxspanner estimates that Singh
can be completely tax-free if his sal-
ary structure is rejigged to include
tax-free components and if he invests
in the NPS to save tax. INCOME HEAD CURRENT SUGGESTED
As a marketing executive, Singh
travels a lot. He should start by ask-
Basic salary 4,72,000 4,72,000
ing his company for some basic tax-
House rent allowance 2,36,000 2,36,000 Reduce this taxable
free components like meal coupons
portion of the pay
and newspaper allowance. If he gets package.
Special allowance 2,80,000 2,40,000
`500 as monthly newspaper allow-
ance and `2,000 worth of meal cou- Telephone 6,000 6,000 This is tax-free
pons per month, his annual taxable subject to usage and
income will reduce by `30,000. reasonable limits.
Meal coupons 0 24,000
Next, he should ask for gadget al-
This is tax-free if
lowance. Moveable assets bought Newspaper allowance 0 6,000 supported by actual
in the company’s name for personal bills.
use are taxed at 10% of their value. Gadget allowance 0 10,000
This can reduce his taxable income Items bought for
personal use by
by `10,000. Employer's contribution to Provident Fund 56,640 56,640 company are taxed
A big reduction in taxable income at 10% of the value.
is possible if he invests in the NPS. Contribution to NPS under Sec 80CCD(2) 0 0
Up to `50,000 invested in the NPS is
deductible under Sec 80CCD(1b). TOTAL 10,50,640 10,50,640
There is further scope for reducing
the total income by buying health
insurance for parents, but Singh will
not have to do that for now.
These three steps alone will re-
duce his taxable income by `90,000,
INCOME FROM OTHER SOURCES
bringing it down to `5.43 lakh. The Switch to debt
Interest income 1,250 1,250 funds to avoid tax
standard deduction of `50,000 will
on interest.
take his income below the `5 lakh Capital gains 0 0
threshold and make him eligible for
tax relief under Section 87A. Under
Rental income 0 0
this, if the total income of the taxpay- TOTAL 1,250 1,250
er is less than `5 lakh after claiming
all deductions and exemptions, the All figures are in `
entire tax liability is waived.
Denotes suggestion to increase Denotes suggestion to reduce

Tax-saving investments
INVESTMENT CURRENT SUGGESTED
OPTION ( `) ( `)

Provident Fund 56,640 56,640 Daljeet

ELSS funds 72,000 72,000 Singh’s tax WRITE
TOTAL TAX SAVED
Life insurance 24,000 24,000 Invest in NPS TAX ON TAX ON
TO US
`30,306
TAX ON OTHER CAPITAL
and save tax.
NPS under Sec 80CCD(1b) 0 50,000 SALARY INCOME GAINS
FOR HELP
TOTAL ADMISSIBLE 1,50,000 2,00,000 CURRENT PER YEAR Paying too much
tax? Write to us
`30,306 0 0 at etwealth@
Other deductions `30,306 TAX RATIO
(Total tax as % of annual income)
timesgroup.com with
‘Optimise my tax’
EXEMPTION OR CURRENT SUGGESTED as the subject. Our
DEDUCTION ( `) ( `) EXISTING SUGGESTED experts will tell you
SUGGESTED ( `) ( `) how to reduce your
HRA exemption 1,92,800 1,92,800 tax by rejigging your
Medical insurance 12,000 12,000
`0 0 0 2.9% 0% pay and investments.
`0
TOTAL 2,04,800 2,04,800

Start SIPs in equity funds for
sufficient retirement corpus
Sarvesh Goyal is investing for multiple goals. Here’s what the doctor has advised him:
1 2
FIRST DAUGHTER’S
EDUCATION: 14 years
GOALS
PRESENT COST:
`30 lakh
FUTURE COST: `1.14 cr
PORTFOLIO
CHECK-UP
Started investing in
equity funds 7-8
years ago.
Early start, regular
SIPs have helped
build sizeable corpus.
All funds are well
chosen and have a
mid-cap skew.
Goals are ambitious
but small increases in
SIPs can help achieve
all of them.
Note from
the doctor
Need equities to build
sufficiently big retire-
ment corpus.
Take term insurance
plan to safeguard
these goals.
Review investments
and rebalance at least
once a year.
Reduce risk when goal
is near so that you
don’t miss the target.
Switch from equities for short-term goals
Deepak Agarwal is saving
for his daughter’s education
and marriage. Here’s what
the doctor has advised:
FUND NAME
Axis Midcap
DSP Top 100 Equity
1 Start an SIP of `40,000 in the debt fund.
Aditya Birla SL Frontline Equity
Fixed deposits
UTI Nifty 50
2 invested.
Mirae Asset Emerging Bluechip
mutual funds
The Economic Times Wealth July 18-24, 2022 23
PORTFOLIO
DOCTOR
Not many
ARINDAM
investors
know
3 4 5 whether
SECOND DAUGHTER’S FIRST DAUGHTER’S SECOND DAUGHTER’S RETIREMENT INCOME: they have
EDUCATION: 16 years WEDDING: 20 years WEDDING: 22 years 23 years
invested in
PRESENT COST: `30 lakh PRESENT COST: `30 lakh PRESENT COST: `30 lakh CURRENT NEED:
FUTURE COST: `1.8 crore (`75,000 a month) the right
FUTURE COST: FUTURE COST:
`1.38 crore `1.16 crore `1.33 crore FUTURE COST: `8.6 crore funds and if their
fund portfolio is on
FUND NAME AMOUNT
INVESTED (`)
EXISTING
SIP (`) RECOMMENDED ACTION NEW SIP
(`)
track. The Portfolio
Doctor assesses the
Increase SIPs to `6,000 in this outstanding
Axis Midcap 1,32,700 5,000 flexicap fund. Hike by 5% every year. 6,000 health of the fund
1 Edelweiss Large & Midcap 2,28,000
Increase SIPs to `6,000 in this outperforming
5,000 large- & mid-cap fund. Hike by 5% every year. 6,000 portfolio, examines the
schemes and their
Continue contributing to this scheme to build a
Sukanya Samriddhi Yojana 4,25,000 6,250 tax-free corpus. 6,250
suitability with regard to
Canara Robeco Emerging Equities 1,29,000
Increase SIPs to `6,000 in this stable large- and
5,000 mid-cap fund. Hike by 5% every year. 6,000 the goals and, if
Continue SIPs in this oustanding mid-cap fund.
required, recommends
2 Kotak Emerging Equities 1,49,000 5,000 Increase amount by 5% every year. 5,000
corrective measures. The
Sukanya Samriddhi Yojana 4,00,000
Continue contributing to this scheme to build a
6,250 tax-free corpus. 6,250 advice given is based on
Continue SIPs in this outperforming large- and
the performance of the
Mirae Asset Emerging Bluechip 83,000 4,000 mid-cap fund. Hike by 5% every year. 4,000
3
funds, the risk profile of
Mirae Asset Large Cap 90,000
Continue SIPs in this stable large-cap fund. Hike
4,000 by 5% every year. 4,000 the investor as well as
Increase SIPs to `7,000 in this stable large-cap
his financial goals.
4 Axis Bluechip 65,000 5,000 fund. Hike by 5% every year. 7,000
Start SIPs of `5,000 in this outperforming flexi-
PGIM India Flexicap 0 0 cap fund. Hike by 5% every year. 5,000 Assumptions used
Start SIPs of `5,000 in this outperforming flexi- in the calculations
Parag Parikh Flexicap 0 0 cap fund. Hike by 5% every year. 5,000
INFLATION
Continue investing in this safe option to build a
Education For all
5 PPF 14,25,000 12,500 tax-free corpus. 12,500
expenses other goals
Continue contibutions in this retirement
Provident Fund 48,28,500 15,000 scheme. Do not withdraw before retirement. 15,000
Continue investing in this low-cost pension
10% 7%
NPS 7,00,000 5,000 scheme. Opt for maximum equity exposure. 5,000
, RETURNS
The goals can be reached using the mutual
TOTAL `86,55,200 `78,000 funds marked in the same colour. `93,000 Equity funds Debt options
12% 8%
PORTFOLIOS
ANALYSED BY
1 2
PORTFOLIO RAJ KHOSLA,
DAUGHTER’S EDUCATION: DAUGHTER’S WEDDING: Managing Director
CHECK-UP
GOALS
and Founder,
2 years 5 years
PRESENT COST: `24 lakh PRESENT COST: `35 lakh Investing in equity
MyMoneyMantra
funds and stocks for
FUTURE COST: `29 lakh FUTURE COST: `49.1 lakh
past 8-10 years.
WRITE
AMOUNT
INVESTED (`)
EXISTING
SIP (`) RECOMMENDED ACTION
Education goal is too
close, so needs to
TO US
protect capital. FOR HELP
4,00,673 5,000 If you want your portfolio examined,
Goal is very close, so you should switch out of these equity funds Wedding goal is near,
write to etwealth@timesgroup.com
6,10,358 5,000 to short-term debt scheme ICICI Pru Short Term to protect capital. so start withdrawing with “Portfolio Doctor” as the subject.
2-3 years from now. Mention the following information:
1,31,056 5,000
Review investments z Names of the funds you hold.
4,25,000 0 and rebalance at least z Current value of the investment.
z If you have SIPs running in any
once a year.
Continue SIPs in this stable index fund. Increase amount by 5% of them.
53,456 5,000 every year. Reduce risk when goal z The financial goals for which you
Continue investing in this outstanding large- and mid-cap fund. is near, so that you
11,05,000 25,000 Increase by 5% every year. z How much you need for each
don’t miss the target. financial goal.
z How far away is each goal.
TOTAL `27,25,543 `45,000
 your feedback & more...
24 The Economic Times Wealth July 18-24, 2022

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.

Thank you for the illustrative story on
destination weddings, ‘Plan an Indian
destination wedding’. My fiancé
and I are planning to get married
in November this year. We want an
intimate wedding with few people due
to Covid precautions, but still want to
make it special. Your list of top Indian
cities for wedding festivities and the
cost to organise in these destinations
has been quite helpful for us to decide
where we can plan our own wedding.
The tips on wedding insurance were
an eye-opener for us, and it’s certainly
something we will now choose to
ensure that we don’t suffer any
financial loss in case of a calamity or
lockdown.
Vanita Thakur
The article on retirement plans,
‘Retirement: a fast disaster or a slow
one?’ by Dhirendra Kumar was a good
reflection on ground realities. However,
it should have had some alternate
suggestions too. There is no doubt that
equities are good investments, but it
comes with a rider that these should be
Fascinating and
commendable ideas
The cover story, ‘Plan an Indian
destination wedding’, was quite
amazing. It is a fascinating idea to get
married at a neutral destination with
local food, culture and local artists. All
the suggestions given in the article are
not only extremely beautiful, but highly
commendable too.
Vinod Johri
selected carefully. In the columnist’s own
words, the selection of appropriate chips
requires ‘knowledge and experience’, which
are key factors in driving the conservative
mindset to avoid risks. This can sometimes
prove to be a herculean task even for expert
fund managers of AMCs during a volatile
stock market.
Srinivasan S.P.
business cycles. I have learnt to be a
patient, choosy, long-term investor,
and now earn a handsome amount as
dividend. So you have me as a dedicated
follower.
Mohan Ram P.S.
The article shows cracks in the post-
retirement planning among Indian
investors. It opens a new viewpoint to
look at retirement. A must-read article
for those postponing retirement
planning.
Amogh Deshpande
The article, ‘Estimating returns from
investments’ was interesting, but it
should have provided more information
on how returns can be affected by
I was delighted to go through your write- different markets like a bull run or a
up on life after retirement, especially the long-term bear market. Also, it would
comment, ‘after retirement, equity is a be more instructive to know when you
must’. I have been investing in equities should opt out of an investment if you
since 2007, after 40 years of service, aren’t getting the projected returns.
following the exact advice that you have For instance, how long should you keep
offered. This has helped me build a sound a stock if you’re getting only 8% a year,
portfolio brick by brick, and kept me instead of the 12% you had planned?
busy in studying trends, companies, and Ravikant Tripathi

REALTY An emerging, well-connected locality

The area has many multistoreyed residential projects, social amenities and proximity to job hubs.
HOT SPOT
Supply by BHK
LOCALITY SNAPSHOT 57%

KONDAPUR, HYDERABAD
Kondapur is an emerging commercial and residential locality in northwest Hyderabad. 38%
Connected to other parts of the city via Botanical Garden Road, Gachibowli-Miyapur Road and Nehru ORR.
5%
It has several multistorey residential projects by local developers such as Aparna, SMR and Sumadhura.
Nearby employment hubs: Mindspace IT park, DLF Cyber City, Divyasree Omega, Purva Summit and Kohinoor IT Park. 2 BHK 3 BHK 4 BHK
Hospitals: Apollo Spectra, KIMS; Schools: CHIREC International, World One; Retail: Sarath City Capital and Atrium Mall.
Consumer preference
by budget (`)
PRICE RANGE: `7,800-10,000/- psf DISTANCES: RGI Airport : 34 km Secunderabad Railway Station: 21 km NH-65: 4 km

CMC Enclave 18% 20% Below 75 lakh

2 BHK
900 (sq ft) Price (`/sqft): 8,400-10,000 75 lakh-1crore
12% 1-1.25 crore
`75
lakh (avg)
*Rent (`/month): 30,000-40,000
19%
31% 1.25-1.5 crore
Laxmi Nagar Above 1.5 crore

Raja Rajeshwar Nagar Price (`/sqft): 8,100-9,500

Kondapur
3 BHK Laxmi Nagar *Rent (`/month): 27,000-35,000
1,250 (sq ft) Bo
tan
Kohinoor
IT Park
Consumer preference
i
Raja Rajeshwar Nagar by carpet area (sqft)
1.10
`crore
cal Divyasree
Gard
Hyderabad en Omega
Ro
(avg)
ad Price (`/sqft): 7,800-10,000
CMC Enclave *Rent (`/month): 25,000-35,000 12% Below 900
Purva 21%
Summit
11% 900-1,100
4 BHK Whitefields Whitefields 1,100-1,300
1,850 (sq ft) DLF Cyber City
Price (`/sqft): 8,800-10,000 14% 19% 1,300-1,500
1.70
`crore
Hyderabad
*Rent (`/month): 30,000-42,000 1,500-1,700
(avg) 23% Above 1,700
Note: Map not to scale *3 BHK Rent (INR/month)

Schools 15+ Hospitals 15+ Restaurants 15+ Banks 15+ Grocery Stores 15+ Petrol Pumps 10+ In dia’s No. 1 P ropert y Sit e

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

The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of
this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times
Wealth will not be liable for any direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions.
PUBLISHED FOR THE PROPRIETORS, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110 002,
Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP. Regd. Office:
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RNI NO. DELENG/2011/37994. MADE IN NEW DELHI VOLUME 12 NO. 29