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HOW TO
DIVERSIFY
YOUR DEBT
PORTFOLIO
With fixed income instruments offering
attractive returns, find out how to
build a strong debt portfolio. P2
OPT FOR HOW TO

HOW TO FIRMS LIKELY MAKE A
SIMPLIFY TO DO WELL SMOOTH
PORTFOLIOS IN SEPT CAREER
WITH ETFs QUARTER SWITCH
P8 P12
P10
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cover story Nk Daily News Mumbai & Gujarat

02 The Economic Times Wealth October 16-22, 2023
PHOTOS: GETTY IMAGES
How to
diversify
your debt
portfolio
With fixed income instruments
offering attractive returns,
find out how to build a
strong debt portfolio.
By Sanket Dhanorkar Fixed income: Prioritise safety and
I
nvestors in the fixed income space are currently spoilt for choice
as the segment is offering attractive returns. Small finance bank
liquidity over returns
fixed deposits (FD) are offering up to 9%. The RBI Floating Rate Here’s how the fixed income instruments
Bond now pays 8.05%. New online bond platforms are tempting rank on the three parameters.
investors to high-yield NCDs, offering a mouth-watering 11-13%
per annum. This bonanza is sure to whet investors’ appetite, but it also SAFETY LIQUIDITY RETURN
presents a tricky scenario. PPF, EPF, NSC, RBI bonds, Sukanaya Samriddhi
High Low Low
We typically park our money in fixed income instruments for safety. Yojana, Senior Citizens’ Savings Scheme
These investments help counter the fluctuations of higher-risk assets, Top tier bank fixed deposits High High Low
such as equities, providing a degree of stability to the portfolio. This
shield can only work if the fixed income part of the portfolio is resilient Small finance bank FDs Medium High Medium
to adversity. For this, having a proper mix of fixed income assets is criti- AAA-rated corporate FDs, NCDs Medium Medium Medium
cal. Diversification is not just for your equity portfolio. Fixed income
AA-rated corporate FDs, NCDs Low Medium Medium-High
investments can also vary widely in risk and returns. Not all bonds and
FDs are the same. Different products serve different purposes. That is Short-duration funds, corporate bond funds,
Medium High Medium
why it is equally important to strive for diversification within your fixed banking & PSU debt funds
income portfolio. In this week’s cover story, we outline a framework for Liquid funds, ultra short-term debt funds High High Low
building a safe, well diversified and, yet, potent fixed income portfolio.
Gilt funds, long-duration funds Low-Medium* High Medium-High
We also discuss how investors can safely navigate the high-yield, high-
risk arena within fixed income. Credit risk funds Low High Medium-High
*Interest rate risk can lead to heavy market-to-market losses. Zero credit risk in G-secs.
cover story
The Economic Times Wealth October 16-22, 2023 03
BUILDING AN OPTIMISED
FIXED INCOME PORTFOLIO
Divide your fixed income portfolio into three buckets
Return, liquidity and safety are key consid- ALLOCATION
erations while assessing any investment.
Equity investors understandably seek to Up to 10% 70-80% Up to 20%
maximise returns, giving low priority to
safety and liquidity. Equities are a wealth
generating vehicle. It is, therefore, reason-
able to optimise returns in this asset class.
When investing in fixed income, priorities LIQUIDITY PURPOSE STABILITY PURPOSE TACTICAL PURPOSE
must be different. The primary role of fixed BUCKET Emergency BUCKET Core portfolio: To provide BUCKET To give a kicker
income is to preserve and protect your fund: To act as a stability to entire portfo- to total return
wealth. It is not for asset building. Safety buffer in times lio from asset allocation by taking
must be accorded top priority in such invest- of distress. perspective. advantage of
ing, insist experts. Girish Lathkar, Partner interest rate
and Co-founder, Upwisery Private Wealth, INSTRUMENTS TO CONSIDER swings or
INSTRUMENTS
asserts: “In fixed income, we are not psycho- TO CONSIDER credit cycles.
Divide further as per
logically used to losing money. That is why,
Bank FDs, maturity profile—short, INSTRUMENTS
safety is most important.” It provides assur- TO CONSIDER
liquid funds. medium, or long term.
ance that our original investment amount
Small finance
will come back to us. This is more important
bank FDs,
now when attractive yields are in the offing.
AA or lower
Higher yields are typically accompanied by
rated NCDs,
higher risk. Short term (up to 3 years) Medium term (4 to 8 years) Long term
gilt funds or
Liquidity comes next in order of priority High-profile bank FDs, top 3-5 year top quality bank FDs, (more than 8 years)
government
for fixed income investing. Your money may quality NCDs, short-duration NCDs, RBI Floating Rate Bonds, PPF, EPF, Sukanya securities.
be in a safe place, but can you gain access funds & corporate bond funds. medium-duration funds. Samriddhi Yojana.
to it whenever you want? Or will you incur
a steep penalty to get it out? Liquidity is
the ability to get your original investment
amount as quickly as possible without incur-
ring a hefty cost or penalty. The fickle nature
Rates of some traditional savings
of liquidity in bonds was painfully evident instruments are elevated
in the aftermath of the 2018 IL&FS default.
Arihant Bardia, Founder and CIO, Valtrust, Interest rate (% per annum)
avers, “Unlike default risk, liquidity risk SCSS 8.20
in bonds is not visible upfront.” The lower
credit market, covering papers rated AA and RBI Floating
beyond, remains particularly vulnerable to Rate Bond 8.05
a liquidity squeeze.
Return should get its due only after safety Sukanya
Samriddhi Yojana 8.00
and liquidity. Return and risk are two sides
of the same coin. If you want a higher return,
you need to take more risks. Anshul Gupta, NSC 7.70
Co-Founder and CIO, Wint Wealth, avers,
Monthly Income
“Most FDs are unable to beat inflation,
Scheme 7.40
yielding negative real returns. To match
inflation, or even beat it, some risk needs to
be taken by diversifying beyond FDs.” If you PMVVY 7.40
are averse to risk, you need to be comfortable
with a lower return. The fixed income PPF 7.10
Should you buy securitised debt instruments?

ONLINE BOND PLATFORMS like minimum face value of listed debt pay back a portion of the principal, Caution and diligence are advisable
GripInvest and Wint Wealth are now securities under private placement along with the monthly interest when investing in SDIs. Depending on
offering securitised debt instruments is `1 lakh. Instead of putting in `5 payouts, over their tenure, facilitating the nature of underlying securities,
(SDIs). To avoid the risk of default in lakh to buy five different bonds, SDIs better cash flow. In the absence of the basket may carry potent credit,
individual loans, multiple types of offer this diversification by investing any cash collateral and other credit liquidity, and market risks. The pooled
loans are pooled together in a single in a single instrument with a smaller enhancements, the basket may be securities are carved into different
bucket of interest earning securities. outlay. Even as traditional bonds or assigned a credit rating that is aligned tranches representing varying risk,
NCDs return the principal amount with the rating of the lowest rated yield or other characteristics.
Pass-through certificates (PTCs) are only at the end of the tenure, SDIs bond in the pool.
issued by a special purpose vehicle Bardia cautions, “Investors will never
(SPV) to investors against these be able to verify the underlying pool
securitised loans. These are typically of receivables. SDIs don’t always offer
backed by various tangible assets, diversification, as multiple receivables
such as loans, lease rentals, invoices from the same company may be
and other receivables. The cash flow packaged in a single instrument.” If
from the underlying pool of assets is chosen well, SDIs are a potent vehicle
used to service the securities issued for earning higher yield. Investors
by the SPV. must, however, take the help of a
financial adviser to gauge the profile
SDIs allow fractionalised investments of underlying pool of receivables.
in multiple bonds, even as the
cover story
universe comes with a diverse range

of risk-return options with their own
Small finance banks are offering attractive FD rates
safety and liquidity characteristics.
INTEREST RATES (% PER ANNUM)
With this framework as the back-
drop, experts advise investors to create Bank
1-YEAR 3-YEAR 5-YEAR
a bucket strategy within fixed income. HIGHEST SLAB
TENURE TENURE TENURE
Demarcate the entire portfolio into
three distinct buckets, each serving a Unity Small Finance Bank 9.00 7.35 7.65 7.65
different purpose.
Suryoday Small Finance Bank 8.60 6.85 8.60 8.25

LIQUIDITY BUCKET
1 Fincare Small Finance Bank 8.51 7.50 8.00 8.00
Every individual needs a money pot
that can serve as a backstop during Equitas Small Finance Bank 8.50 8.20 8.00 7.25
times of distress. This is the emer-
gency corpus that will come to your
rescue during specific events like
ESAF Small Finance Bank 8.50 6.00 6.75 6.25
a sudden job loss, prolonged illness
or accident. Without this buffer, you Jana Small Finance Bank 8.50 8.00 8.50 7.25
would be forced to dip into the pool of
investments meant for key life goals. North East Small Finance Bank 8.50 7.00 7.75 6.25
A solid emergency fund is one that is
easily accessible at a very short notice Utkarsh Small Finance Bank 8.50 8.00 8.50 7.50
and is immune to value erosion. It is
a job that is best left to fixed income. Source: Paisabazaar
Ideally, up to six months’ worth of your
household expenses must be parked
in a mix of bank fixed deposits and
liquid funds. While income from both
Corporate FDs are also fetching high returns
now gets taxed at the slab rate, liquid INTEREST RATES (% PER ANNUM) ADDITIONAL
funds are superior, given that gains on INTEREST RATE
Company FOR SENIOR
these are only taxable when redeemed. 1-YEAR TENURE 3-YEAR TENURE 5-YEAR TENURE CITIZENS (% PA)
Interest income from FDs is taxable on
an accrual basis. Further, breaking an
FD usually attracts a small penalty in
Muthoot Capital Services 7.21 8.07 8.38 0.25
the form of lower interest rate for the
current tenure. Money parked in a liq- Shriram Finance 7.34 7.95 8.18 0.50
uid fund can be withdrawn at any time
in full without any penalty (except exit Bajaj Finance 7.40 8.05 8.05 0.25
load if withdrawn within seven days).
Depending on your needs, the emer-
Mahindra Finance 7.60 8.05 8.05 0.25
gency corpus should take up to 10% of
your fixed income portfolio.
Sundaram Home Finance 7.45 7.75 7.90 0.50
STABILITY BUCKET Source: Paisabazaar

2
This bucket is the core part of your instruments with a long lock-in period or ma-
fixed income portfolio, accounting for “Make sure you understand turity profile. The Employee Provident Fund “Most FDs are unable to
70-80% of the assets. It must house in-
vestments that provide stability to the
the bond’s hierarchy within (EPF) and Public Provident Fund (PPF)
would feature prominently in this bucket.
beat inflation, yielding neg-
entire portfolio from the asset alloca-
tion perspective. It should also contain
its issuer’s capital structure. The guaranteed return, along with EEE tax
exemption status, at all three levels—con-
ative real returns. Some risk
instruments that make a significant While subordinated bonds tribution, interest payout and maturity— needs to be taken by diversi-
contribution towards key financial make these the best vehicles for this bucket.
goals. Experts suggest carving the yield 100-150 bps higher re- Parents of a girl child can also take the fying beyond FDs.”
core fixed income bucket into distinct
time buckets based on the maturity
turns, it’s not worth the risk.” benefit of Sukanya Samriddhi Yojana, which
also fetches guaranteed returns (currently
profile of investments—short, me- 8%) along with the EEE taxation status. The
ANSHUL GUPTA
dium and long term. account can be closed after 21 years or on the
CO-FOUNDER AND CIO,
Investments of up to three-year time VARUN FATEHPURIA marriage of the girl, whichever is earlier. WINT WEALTH
horizon should be in the short-term FOUNDER AND CEO, Half of the accumulated corpus can be with-
bucket. Any high-profile bank FD, DAUL AT drawn for the girl’s higher education needs
top-quality NCD, short duration bond at 18 years of age.
funds or corporate bond funds should As a rule, do not venture into high-yield credit cycle or take advantage of interest rate
find space here. Avoid high-yield small the peak rates, it appears prudent to lock (credit risk) or duration strategies (interest swings to give a boost to the overall portfolio.
finance bank FDs, corporate FDs and in now. Apart from these, target maturity rate risk) for the stability bucket. Also, stay For this bucket, you may target investments
NCDs rated AA or below for core al- funds of five-seven years’ tenure or medium- away from annuity products, as well as guar- in high-yield NCDs or gilt and long-duration
location. Bank deposits are safer than duration debt funds fit into this bucket. For anteed return plans offered by insurers. funds. FDs of small finance banks can also
those with NBFCs because of their de- those seeking assured regular payouts, the These mostly offer poor returns. be tapped here. This bucket is not for every-
posit insurance cover of up to `5 lakh. RBI Floating Rate Bond is a good option. It one, and can even be skipped altogether. It is
The medium-term bucket would has a tenure of seven years, and the interest only advisable if there is enough surplus left
TACTICAL BUCKET
cater to cash-flow needs of over four
to eight years. Locking into five-year
rate is reset every six months. Keep in mind
that the interest income is taxable and there
3 after allocation to the earlier two buckets.
Further, only those with adequate under-
FDs and NCDs makes sense now. Top- is no premature withdrawal option, except This bucket represents the opportunistic standing of the economic cycles and nature
quality NBFCs are offering returns in for senior citizens. part of your fixed income portfolio. The of different risks in bond market should ven-
excess of 8%. Rather than wait to catch The long-term stability bucket will cover idea of any tactical allocation is to play the ture into this territory. Tactical exposure
cover story
is best limited to 20% of the overall fixed in-

come portfolio.
AA and lower rated bonds are trading at high yields
The recent spike in bond yields presents a The spreads over government securities and AAA-rated bonds are attractive.
good opportunity for debt investors to lock
into 10-year constant maturity gilt funds.
Yield (%) Tenure 1 year 3 years 5 years 10 years
9.94 10.06 10.25 10.25
These work best when rates are closer to
8.20 8.32 8.52 8.52
the top of a rising cycle. By simply owning
7.36 7.39 7.34 7.50 7.62 7.62 7.62
the bellwether 10-year Government of India
7.15
security, one can sidestep the risk of active
calls going wrong, as in gilt funds. Avoid
tactical bets on credit risk funds, as the in-
cremental return is often not commensurate
with the risk taken.
How to pick high-yield bonds: Retail
investors today have easy access to all types
of bonds via online bond platform providers.
While investing directly in high-yield bonds
and NCDs, investors must exercise utmost
caution. Lathkar observes, “Unlike equi- G-sec AAA AA A
ties, the fixed income game is binary. Either
Compiled by Rupee with Rushabh Investment Services.
you get back your principal or you don’t.”
The bonds on offer differ vastly in credit
quality, from AAA and sovereign bonds to
securities rated AA and below (upto BBB-).
Yields in debt funds are modest
Vishal Goenka, Co-founder, IndiaBonds. Few debt fund categories can provide sharp capital appreciation when interest rates start cooling.
com, insists investors must get a clear grasp
of the risk matrix. “In bonds, risk doesn’t Banking & Low duration
simply go up in linear fashion as you go down Debt fund category Yield to maturity (%) PSU debt 7.48 Long duration
the credit quality ladder.” It gets dispropor- 7.52 7.41
tionately higher at the lowest rungs of the Corporate bond
credit ladder, but is not always captured in 7.55 Short duration
the bond pricing or yields. So, an AA-rated is- 7.39
suer is riskier than an AAA-rated one, but an Floater
A-rated issuer is several times riskier than 7.63 Ultra short-
an AA-rated issuer. term bond
Further, pricing of bonds (as reflected 7.29
in the yield) within the same rating bucket
(such as AA-, AA, AA+) is often very similar. Medium duration
Yet, the credit profile of businesses in the 7.78
same rating bucket can differ vastly. Bardia Gilt
says investors must avoid blindly chasing 7.27
yields. “Within the same rating bucket, it
is best to go for the safest, even if it offers
a lower yield,” he says. Before opting for a
Credit risk
high-yield NCD, make sure it compensates
8.16
for the higher risk in the form of a higher Liquid
spread—extra yield over NCDs of similar 6.96
credit rating and tenure. Today, the average
Source: Value Research
yield on offer for a three-year AA-rated bond
is 8.32%. If a low-profile AA-rated NBFC is
offering less than 9% for three years, it’s not
a good deal.
formance in tandem. Often, this simple check
can catch troubled issuers. If the company’s
“In fixed income, we are coupon paying bonds, avers Gupta. “In
case of bonds paying both principal
Relying on credit ratings alone is not fundamentals seem strong but its stock price not psychologically used to and interest only at the end, your en-
enough. Goenka asserts, “Credit rating is the is falling, it may be a red flag. tire money can get stuck if the entity
first level of due diligence. Investors must go Investors must also consider the bond’s losing money. That is why defaults. With regular coupon paying
beyond issuer’s credit rating and look at the seniority in the payment hierarchy. It re- bonds, if the monthly payout stops, you
company’s historical performance, inter- flects the order in which bondholders are safety is most important.” can still exit,” he says. In case of NCDs
est coverage and nature of security cover.” repaid when the issuer turns insolvent. It with long tenure or cumulative payout,
Bardia suggests investors verify the compa- will determine the chances of you getting it may help if it is accompanied by a put
GIRISH LATHKAR
ny’s fundamentals as well as share price per- back your principal in such an event. Senior option, as it will allow you an early exit
PARTNER AND
secured bonds are placed at the top, enjoying CO-FOUNDER, if you perceive elevated risks.
first preference in repayment. Tier 2 subor-
“Investors must go beyond dinated bonds and perpetual (AT1) bonds lie
UPWISERY PRIVATE
WEALTH
Besides, investors must enforce
strict hygiene rules in picking individ-
the issuer’s credit rating at the bottom of the seniority ladder. Varun
Fatehpuria, Founder and CEO, Daulat, a While exploring lower down the credit
ual bonds and NCDs. Make sure you
are diversified across at least four-five
and look at the company’s tech-enabled wealth management platform, ladder, avoid opting for longer tenure bonds. different issuers, with no single issuer
remarks, “Make sure you understand the Fatehpuria says, “The lower rated segment accounting for more than 5% of your
historical performance, bond’s hierarchy within its issuer’s capital of the bond market is not very liquid. It is total portfolio. Even if buying AAA-
structure. While subordinated bonds yield best not to venture into bonds maturing rated PSU bonds, diversify across
interest coverage and 100-150 bps higher returns, it is not worth beyond 24-36 months as these may not afford different entities. Go for issuers with
nature of security cover.” the incremental risk.” However, seniority
does not necessarily imply safety. If the
an exit at a good price if you need to take your
money out.” Default risk can also get more
lower leverage, or debt-equity ratio.
Stick with listed NCDs. Unlisted NCDs
issuer’s pedigree is weak, even a senior, se- pronounced over time if business conditions are not only illiquid but also a blind
cured bond can turn out to be a dud. Dewan deteriorate. So, in terms of risk, an NCD of- spot in terms of financial disclosures.
VISHAL GOENKA Housing Finance NCDs are a case in the fering 10% over a 24-month tenure may actu-
CO-FOUNDER, point. An unsecured NCD of a marquee ally be better than one offering 11% over five
entity can even be a safer bet than a secured Please send your feedback to
INDIABONDS.COM years. Likewise, skip bonds offering cumula-
etwealth@timesgroup.com
NCD of an up-and-coming NBFC. tive or bullet payout, and stick with regular
review preview
product
How to reduce your TCS launches
:: MUTUAL FUNDS
during overseas travel Aditya Birla Sun Life Mutual Fund
will launch the Aditya Birla Sun Life
Transportation and Logistics Fund,
an open-ended thematic equity
fund that will invest in stocks from
Book your foreign air tickets and hotel stay separately to avoid the high TCS of 20%. the transportation and logistics
sector. Its benchmark is the Nifty
Transportation & Logistics TRI. The
by Anulekha Ray minimum investment is `500. The
P
NFO will open on 27 October and
lanning an international trip with close on 10 November.
your family? Be ready to bear a
higher upfront cost due to the new tax
collected at source (TCS) rule. When
:: INSURANCE
you book an overseas tour package of up to `7 Canara HSBC Life Insurance
lakh in a financial year, you have to pay 5% has launched GAIN (Guaranteed
TCS, but if the cost of the package exceeds `7 Assured INcome), a savings-
cum-protection plan that offers
lakh, the TCS is 20%. Whether you buy on-
policyholders the flexibility to
line or offline, the responsibility of collecting
choose payout options aligning
TCS lies with the travel agent.
with their financial goals. The
One way to avoid the high TCS is to book
policy offers three different
flights, hotels and sightseeing separately, options. It also allows flexible
instead of making it a single booking. In this premium payment terms.
way, these transactions will not be consid-
ered a tour package and only 5% TCS will ManipalCigna Health Insurance
apply on each. Neeraj Agarwala, Partner, has launched ManipalCigna
Nangia Andersen India, says, “The pur- Accident Shield, a customisable
chase of only an international travel ticket personal accident plan that not
or only hotel accommodation by itself is not only covers death and disability,
covered in the definition of ‘overseas tour but also hospitalisation and
programme package’. So travellers should year,” says Sudarshan Motwani, Founder & with a credit card transaction before swip- ancillary expenses. The Classic
consider purchasing air tickets and booking CEO, of BookMyForex.com. ing it abroad. Plan covers accidental death,
accommodation separately.” As of now, there is no TCS on international Also, keep in mind that `7 lakh is the funeral expenses and repatriation
TCS is also levied on remittances from credit card transactions. “Currently, in- combined threshold for all categories under of mortal remains. The Plus Plan
India if the amount exceeds `7 lakh in a fi- ternational credit cards do not incur TCS, the liberalised remittance scheme (LRS) offers the basic plan benefits along
nancial year. So, while going on an overseas unlike regular credit cards. Opting for an for all modes of payments, regardless of the with coverage for permanent total
trip with your family or as part of a group, international credit card for your foreign purpose. So even if you pay through a debit disability. The Pro Plan covers
permanent partial disablement,
it’s a good idea to get different people to book trip expenses can help you sidestep the ad- card for one trip and make payments via a
complemented by 12 optional
tickets and hotels to take advantage of the `7 ditional tax liability,” says Rikant Pittie, bank transfer on another, the TCS will be
covers, such as adventure sports
lakh limit. “Make prudent use of the `7 lakh Co-Founder, EaseMyTrip. However, do levied if the total amount exceeds `7 lakh in a
cover, coma benefits, broken
exemption limit per individual in a financial remember the additional charges that come financial year.
bones benefit, among others.
Star Health and Allied Insurance
Direct tax
has introduced surrogacy and
First numberless credit card

oocyte donor covers in its Star
Women Care Insurance Policy. It
collections up 18% is available as an individual and
launched by Axis Bank-Fibe India’s gross direct tax

floater plan to women in the age
group of 18-75 years. The plan
A
collection increased by covers in-patient hospitalisation
xis Bank has partnered However, this card is mainly targeted 17.95% to `11.07 lakh for postpartum delivery
with Fibe, formerly known at the digital savvy customers because crore in the period complications incurred by the
as EarlySalary, to launch a a customer needs to be familiar with from 1 April to 9 October, as per the Ministry surrogate mother for a 36-month
numberless credit card. The mobile applications. “We aim to em- of Finance. The net collections stood at `9.57 period. It also provides oocyte
plastic card will have no number, power our users with a safe and secure lakh crore, 21.82% higher than the net col- donor coverage, indemnifying in-
expiry date or CVV printed on it. It payment ecosystem, clubbed with the lections for the comparable period last year. patient hospitalisation expenses
will only have an embedded chip and convenience of UPI payments, thereby This collection is 52.5% of the total Budget for complications for a 12-month
period.
cardholders can access the card details establishing a fresh benchmark in the estimates of direct taxes for the financial year
using the Fibe mobile app. Axis Bank credit card industry,” says Akshay 2023-24. Interestingly, the growth in corporate
says this reduces the risk of identity Mehrotra, Co-Founder and CEO of income tax (CIT) collections was only 7.3%, :: BANKING
theft or unauthorised access to Fibe. —Anulekha Ray while personal income tax (PIT) shot up by IndusInd Bank has tied up with
customer’s card details, ensuring almost 29%. “It’s a robust growth. If we grow Visa and Juspay to launch Virtual
absolute security and privacy. “This at this level, we can easily achieve or exceed Commercial Card, a credit card
numberless card will prioritise the the targeted tax collection of `18.23 lakh crore for cross-border transactions
security of our customers,” says as mentioned in the Budget (financial year for corporates and travel agents.
Sanjeev Moghe, President & Head, 2023-24),” said CBDT Chairman Nitin Gupta. Commercial users can generate
Cards & Payments, Axis Bank. Over the last few years, various efforts have virtual cards or credentials
Numberless cards have become been made to increase the tax base and im- in foreign currencies as well,
popular across the world. The prove compliance. In the financial year 2022- safeguarding the parent card
number. Each virtual card can
card details, such as number, 23, for example, the total gross GST collection
be customised with transaction
CVV and expiry date, are stored stood at `18.1 lakh crore and the average gross
limits and even the expiry dates
behind a secure login on an app. monthly collection for the full year was `1.51
can be defined to ensure secure
So, even if you lose the physical card, lakh crore. The gross revenue in 2022-23 was
payments.
you are not at risk of losing your details. 22% higher on a yearly basis.
guest column
Ignore noise while investing

Learn to trust your own experience, knowledge and fundamentals of
investing, instead of focusing on others’ opinions, says Dhirendra Kumar.
K
uchh to log kahenge, logon ka he had quoted Shakespeare: ‘Our doubts
kaam hai kahana... I really are traitors, and make us lose the good
wanted to hum these lyrics, but we oft might win, by fearing to attempt.’
to understand why I wanted to do Doubts do not serve any purpose,
so, let me give you some context. especially when they contradict your
Often, the most common questions about own knowledge and experience. More
investing take on a new life when seen in the returns have been sacrificed by sitting
light of an investor’s situation or unique way on the sidelines and not investing,
DHIRENDR A KUMAR of expressing it. This is why I truly relish live waiting for some illusory situation
CEO, VALUE RESE ARCH Q&A sessions. A question that might seem in which investments are worth
repetitive in text can become engaging and attempting.
money enlightening when discussed in a specific Look at the way value increases
over time. Think of `1 lakh invested
mysteries
context, resonating with the audience.
Every week, I answer queries in 1982 in the stocks of the BSE Sensex.
from investors on live radio. For This money would have grown to `37 lakh
over a decade, I’ve appreciated this today. During these years, any number
format, compared to writing articles of economic and political hardships were
or appearing on TV. Having participated suffered by the country. If you are worried
People will always in hundreds of shows and engaged with about what ‘people are saying’ now,
comment on social thousands of callers, I’ve grown familiar imagine what they were saying in 1993, or
media. That is their goal. with the type of questions investors pose 2001, or 2007. Yet, anyone who had stuck
If you talk about sensible because, ultimately, there’s a limit to the to investing through all this would have
things like investing topics that they can inquire about. While the generated enormous wealth over the years.
subjects may be consistent, individuals vary, The journey of investing is peppered
steadily for years, soon
and this perspective provides an added layer with all kinds of voices, opinions and
you will have nothing of interest. apprehensions. However, as history
to say and no one will One such investor, who called in at the has repeatedly shown, it’s not the noise
pay any attention. Once show, had started investing some years ago. that counts, but the discipline, patience,
GETTYIMAGES
you are on the right He had chosen three or four good mutual and belief in one’s own experiences and
path, having doubts and funds and was investing regularly in these knowledge. Instead of getting swayed by
second thoughts because through SIPs. Everything was going well; the the cacophony of opinions, trust your
returns were good, he had learned to tolerate journey and the fundamentals
of what someone else
volatility, and had no problem with the of investing. Every market, high and low,
is saying is counter- investments themselves. However, he called things like investing steadily for years, presents its own tale, but the steady hand of
productive. to ask about something that is increasingly soon you will have nothing new to say, and a well-informed investor writes the
becoming a worry. ‘People are saying that the no one will pay any attention. My advice to most successful stories. So, the next time
markets are too high and will fall,” he said. the listener was that he should focus on his you come across naysayers or feel the
This was his problem. His worry stemmed personal experience and be confident about weight of popular opinion, remember
not from investments, but from what random his own understanding and knowledge that it’s your narrative to shape, not theirs.
people on social media and elsewhere were had brought him this far. Once you are on Keep the faith, stay informed, and
saying. the right path, having doubts and second invest wisely.
As the song goes, people will always thoughts because of what someone else is
comment on one thing or the other, and in saying is counter-productive.
this day and age, they do it on social media. I was reading a column by the Chief
Please send your feedback to
That is their goal. If you talk about sensible Investment Officer of Motley Fool, where etwealth@timesgroup.com
Now, card-on-file tokenisation at bank level

The RBI has introduced new are applicable to both debit limit on the maximum num-
channels for card-on-file for and credit cards which have ber of cards. While making a
tokenisation. It will now be to be tokenised for future on- transaction, a customer can
issued at the bank level to line purchase as opted by cus- use any of the tokenised card
enhance convenience to cre- tomers. Tokenisation refers to details taken from the token
ate tokens and link to their replacement of actual or clear requestor app. For every
existing accounts with vari- card details with an alternate combination of card and
ous e-commerce applications. code called the ‘token’ used in merchant, a unique token is
However, a customer can introduce CoF token creation online purchase. This shall generated each time.
choose whether or not to let facilities directly at the issuer be unique for a combination The process of tokenisation
his card be tokenised. bank level.” of card, token requestor and typically entails filling your
According to the RBI A tokenised card transac- the merchant. card details and verification
Governor, “At present, card- tion is regarded safer because Tokenisation is applicable via OTP, after which a token
on-file (CoF) token can only the real card data is not only for domestic transac- is generated that is associated
be created through mer- shared with the merchant tions. A customer can request with your card. This token is
chant’s application or Web during transaction process- for any number of cards to saved by the online merchant.
page. It is now proposed to ing. Tokenisation guidelines be tokenised and there’s no — Sneha Kulkarni
financial planning
Simplify portfolios with ETFs

Building a portfolio is fraught with errors, expensive and time-consuming, whereas an ETF is a readymade
portfolio combining the best in that segment and available as a single product, says Uma Shashikant.
committee of the stock exchange to drop
any business that does not perform well, or
does not meet the criteria for selection. It
is automatic and immediate. No action is
required on the part of the investor when
the underlying portfolio is reworked
to drop poor quality stocks. Can it get better
than this?
Third, a portfolio can have all the good
stocks that one has very cleverly bought, but
how it grows in value depends on one more
factor: quantity. I have heard many stories
of investors holding a multibagger stock
they can’t brag enough about. I bought it at
`10 when no one was buying, and now it is
at `1,200, they would say. How much did you
invest, I would ask. I bought 50 shares, they
would say. How can this multi-bagger make
a difference to an investor’s wealth if it is a
tiny proportion of the portfolio?
How does the index solve this problem?
GETTY IMAGES
Let us assume everyone bought an equal
number of every stock in the market. People
did not want to bother with the question of
how many to buy and treated them equally.
T
However, every company is of a different
he idea that portfolios must be high frequency. These stock traders also at- size. Some have issued a large number of
simplified as one ages has caught tract enough investor attention. shares; some offer less. Pause to consider
the readers’ attention. Some of What does all this focus on timing and selec- this: if everyone held the same number of
the elderly readers of this column tion result in? Investors end up with a long list each stock, the stocks of small companies
have asked for specific steps in this of stocks in which they hold too little. When would get depleted, while those of bigger
regard. Some have sent their portfolios for a they buy, they are not sure if they have the companies would still be available. Hence,
review. Some want to know if this can be done right stock at the right time. Hence, they invest the more the capital of a company, the more
at all. I would venture to offer a single stroke a small sum. When it does well, they do not top the number of equal portfolios in which it
simplification that works very well—ETFs it up because they don’t want to buy when it will figure. This is the principle of market-
(exchange-traded funds). If you hold equity, has already become expensive. If it does not do cap weightage that the index follows. How
UMA SHASHIK ANT choose ETFs to earn equity returns with least well, they should ideally sell it, but investors much is invested in each stock is simply pro-
IS CHAIRPER SON, effort and cost. are loath to booking losses. They expect the portional to how much capital it has, multi-
CENTRE FOR INVES TMENT We have discussed earlier the case for ETFs, stock to recover some day. plied by the market price. The ETF weighs
EDUC ATION AND LE ARNING but a good idea can do with some reiteration. Therefore, our current problem of what each stock according to this formula.
Let’s begin with what we typically believe many investors admit as an unwieldy portfolio Fourth, ETFs are cheap and operationally
when we construct a portfolio, and what we is a result of these shenanigans to buy the right easy. It’s a single product that holds all
usually end up with. Our investing journeys stocks at the right time, and hold a portfolio of stocks of an index in proportion to their
are peppered with stories of stupendous winning, multi-bagger stocks. Why is the ETF market caps. It is the cheapest to buy; 25
success with equity shares, either ours or a much better and simple choice? p at the most as annual cost. It’s easy to
We have the choice somebody else’s. How a stock or fund grows First, money is not made by making individ- buy on a stock trading platform, just like a
to hold a mishmash to become magically huge in value is a story ual punts on this name or that. Money is made stock. It’s excellent for buying and holding
of stocks acquired we cannot hear enough about. Most investors by bringing together various stocks across without having to worry about the everyday
with inadequate think equity investing is about selecting the diverse sectors in a single portfolio. Except for investor questions: Am I holding good
right stock. business owners with ESOPs and promoter stocks? Is something going wrong that I
information, or a
We also have market crashes and booms stakes, who have too many stocks of the busi- should act? Am I holding enough? ETFs pay
portfolio made up of
becoming news headlines. Whenever I hear nesses they own and operate, all of us need a no commission, so no one will bring it to you
the largest, liquid,
the words ‘life-time high’, I cringe. Haven’t we diversified portfolio. We all have a portfolio or push you to buy a product that is actually
profitable, actively
heard it enough since the index crossed the anyway when we hold more than one stock. good for you.
traded, widely held
1,000 level? The equity markets will swing, We have the choice to hold a mishmash of To simplify your portfolio, you need
stocks. It beats me to tell yourself that human intervention
causing steep changes in values on the way up stocks acquired with inadequate information,
why the sensible and down. However, investors tend to believe or a portfolio made up of the largest, liquid, in selecting and timing the market, and
choice of holding an that somehow these turns can be predicted. profitable, actively traded, widely held stocks. building a portfolio is fraught with errors.
index doesn’t appeal, They would ideally want to buy low and sell It beats me why the sensible choice of holding It is expensive and time-consuming, calling
compared to a poorly high, and no argument can stop that desire. an index doesn’t appeal, compared to a poorly for skills and luck. ETFs make no such
collated portfolio. We call these two attributes selection and collated portfolio. An ETF is a readymade pretense and simply track the market. One
timing. Selection refers to what one buys; portfolio representing the best in that segment reader heard this from me and asked, “So
timing refers to when one buys. Since market and available to buy as a single product. what is the best time to buy an ETF?” Some
swings occur routinely, and liquidity or cash Second, for a portfolio to perform well, it stories are often told, but seldom heard.
is needed for acting on one’s desire to buy, mar- should undoubtedly have winning stocks.
ket action involves both buying and selling. More importantly, it should weed out what is
Please send your feedback to
There is a class of people that rapidly selects not working. An index, on the basis of which an
and times the market, buying and selling at ETF is constructed, is monitored by a special
financial planning
How to estimate the value PAPER WORK

:: How to claim NCB on
of your financial goals
new car insurance
Buying car insurance is a mandatory
cost that one needs to consider. If
the car buyer has earned a no-claim
bonus (NCB) on his previous car
policy, this can be claimed on the
insurance premium for the new car.
Here’s how to claim it.
Obtain no-claim
bonus certificate
You need to contact the
previous car insurance company to ob-
tain a no-claim bonus certificate. If the
new car policy is being taken from an-
other insurer, a no-claim bonus transfer
certificate needs to be obtained.
Documents needed
To claim NCB, keep the fol-
lowing documents ready:
Old car insurance policy document.
Copy of no-claim bonus certificate of
the old car.
GETTY IMAGES
Vehicle details, including the make
and model of the car.
T
Inform the new
o know how much money she will dialogue box. ‘Nper’ is the number of periods
Chanchal has decided to need for her child’s goal, Chanchal (15), ‘Rate’ is the inflation rate (7%), ‘PMT’
insurance provider
has to make two estimates. One, has to be skipped, and ‘PV’ is the current cost The policyholder should
invest in an equity mu-
the amount of money she will need of higher education (`1 crore). The resulting inform the new insurance provider
tual fund for the higher for her child’s education. This can amount is `2.75 crore. This is the amount she about his eligibility for the NCB. It is
education of her child. be calculated by considering the current cost will need at the end of 15 years, going by her important to do this while purchas-
of higher education. Next, she has to find out assumptions. ing the policy and before making any
She has been told that payment. The insurance company will
the cost 15 years from now. For this, she will MS Excel can be used to make such
over a long period of time, use the NCB certificate and vehicle
need to estimate the rate of inflation that estimates for goals and arrive at a precise
details to calculate the NCB discount.
her investment will grow may apply to education expenses. Given the number. In the above example, we have not
This discount is applied to the pre-
positive rate of inflation, she will need a higher used ‘PMT’ as this will apply if the amount
to a sizeable amount amount after 15 years. Let us assume that the is required periodically, not as a lump sum.
mium amount, reducing the overall
cost of the insurance policy.
due to the power of com- education she is planning for her child costs `1 ‘PV’ is the present value, which is the current
pounding. She intends crore today, and the inflation rate is 7%. cost of education. ‘FV’ is the future value
Chanchal can carry out the calculations that is being estimated over a 15-year period,
to invest over the next 15 assuming a 7% increase in PV. Chanchal can
Pay the premium
using MS Excel functions. She can open a
years. However, she is not worksheet in the application and key in her alter the numbers to see how her requirement Once the NCB discount is
applied, the policyholder
numbers in the cells. She should then click on may vary depending on her assumptions—
sure how to estimate the can pay the remaining premium
‘fx’ from the status bar at the top of the sheet cost of education today, number of years and
amount she would need at amount. It's important to ensure
and choose ‘financial’ as the category. In the rate of inflation. Saving and investing for any
that the premium payment is made
the end that period. How list that appears, she can scroll down to arrive goal is much easier when its value is estimated
within the stipulated time to avoid
at ‘FV’ or future value. Clicking on it opens a in advance.
can she find this out? any disruptions in coverage.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
smart things to know

Why companies buy back shares
1 Companies
with excess
cash in their
books and
not enough
investment
or business
opportuni-
ties buy
back shares
using their
reserves
and surplus.
2 3 4 5
Companies buy
back shares
when the price
falls without
any fundamen-
tal reason so
that they can
build investor
confidence and
indicate that
the company is
undervalued.
As buying
back of shares
results in a fall
in the number
of outstanding
shares, it can
lead to in-
creased earn-
ings per share
and, in the
future, higher
dividend per
share.
Since buyback
is an offer
and share-
holders can
choose to ac-
cept or reject
it, promoters
can forfeit
the offer and
increase their
stake in the
company.
Buyback
results in long-
term capital
gains, com-
pared to divi-
dends, which
are taxed at
marginal rate
and can be
tax-effective
for people
in higher tax
brackets.
stocks
Opt for firms likely to do

well in Sept quarter
Stocks with good short-term prospects are more likely to manage volatility, which is
expected to intensify amid multiple geopolitical and macro issues.
by Sameer Bhardwaj
C
orporate India is expected to
report good performance in
the September 2023 quarter
supported by the base effect,
margin expansion, volume
improvement and ongoing capex recovery.
Motilal Oswal’s second quarter preview
report expects 21% year-on-year growth
in the Nifty 50 earnings, whereas a Kotak
Securities report sees a 19% y-o-y jump in
the BSE Sensex earnings.
The benefits of the fall in input prices
and moderation in power and fuel costs
will support the EBITDA (earnings
before interest, taxes, depreciation and
amortisation) margins. An Antique Stock
Broking report expects 220 basis points
improvement in the margins of Nifty 50
companies (excluding financials), led by
the energy, cement and auto sectors.
Sector-wise expectations
Most sectors like automobiles, banking
and finance, cement, pharma and capital
goods are expected to do well in the
second quarter. Higher realisation and
increased demand will support the auto
sector’s performance, whereas strong
order books and swift execution will
aid the performance of the capital goods
sector. The banking and finance sector
is expected to do well because of lower
GETTYIMAGES
provisions and stable asset quality.

On the other hand, lower fuel costs and
low base will drive the cement sector’s
performance. The pharma sector’s
performance will be aided by new
launches in the US markets, traction in
multiple global challenges like rising US
bond yields, geopolitical uncertainties,
As volatility is likely coming months, investing in companies
that are favoured by analysts could prove to
domestic formulations, margin expansion
and benefits of rupee depreciation.
volatility in commodity prices, China’s
economic growth concerns, high inflation
to increase, investing be a better strategy.
Among the constituents of the Nifty 500
Moderate growth will be visible
in metals and mining, FMCG and IT
and elevated interest rates. Moreover,
the recent Israel-Palestine conflict and
in firms favoured by index, there are 141 companies for which a
minimum of three analysts have provided
sectors. Weak realisations and decline the likely surge in crude oil prices are analysts could be a net profit estimates. Of these, 89 companies,
in base metal prices despite lower coal expected to create instability in the or 63%, are expected to report a y-o-y growth
costs will impact the metals and mining coming weeks. good strategy. of over 10%.
sector, whereas continued weakness in In a recent equity outlook note, Vinay ET Wealth identified companies that are
discretionary spending will limit IT sector Paharia, CIO, PGIM India Mutual Fund, expected to report an all-round performance
revenues. The FMCG sector is expected remains optimistic on the long-term volatility. The valuation premium of the improvement in the September quarter.
to report a single-digit revenue growth as outlook for Indian equities, but maintains MSCI India Index, over the MSCI World The companies that are expected to report
demand will be driven by volume, instead a cautious stance for the short-term Index was 25.9%, compared to the five- over 10% y-o-y growth in revenue, EBITDA
of price. perspective. He asserts that ‘lower growth year average of 18.8% in terms of 12-month and net profits have been identified from
and lower quality’ companies have forward PE multiple. Such concerns have the Nifty 500 index. Besides, companies that
Markets outlook significantly outperformed their ‘higher impacted the performance of Indian are expected to report a y-o-y improvement
The domestic equity market is trapped growth and higher quality’ counterparts markets against world markets in 2023. in EBITDA margins have been considered.
between earnings optimism and on a year-to-date basis. He believes that The MSCI India Index generated 6.6% y-t-d The estimates have been compiled for a
persistent macro challenges. After hitting volatility will intensify in the coming returns, compared to the MSCI World and minimum of three analysts. The companies
lifetime closing highs in mid-September, months due to the general elections MSCI USA indices, with 9.8% and 13.4% with EBITDA loss or net loss in the base
the market benchmarks (Nifty 50 and scheduled in May 2024. y-t-d returns, respectively. The data is quarter were excluded. The following are
BSE Sensex) corrected by over 2.5%. The The high valuation in relative terms based on 9 October 2023 values. five such companies that are currently
sentiments are being impacted due to is also contributing to the increased As the volatility could increase in the offering a double-digit price potential.
stocks
NAVIN FLUORINE 12-month Current 1-year target 100 Nifty 500

In contract development and
The manufacturer of forward PE price (`) price (`) 115.07 manufacturing organisations (CDMO)
UPSIDE specialty fluoro- segment, the firm has tied up with
POTENTIAL 34.5 3,702 4,878
chemicals is expected to Fermion to supply intermediates for three
31.8 % report revenue, EBITDA
and net profit growth
ANALYSTS’ RECOMMENDATIONS molecules, and the management expects
a revenue potential of $40 million over
BUY HOLD SELL
of 36.5%, 56.2% and 52.9%, respectively, Navin
three years. An HDFC Securities report
15 6 2 Fluorine
on a y-o-y basis, according to Refinitiv is bullish on the firm due to the earnings
consensus estimates. The improvement The HPP (high-performance product) 80.19 visibility of long-term contracts in
in volumes in the specialty chemicals segment is expected to recover volumes specialty chemicals and HPP segments, a
7 Oct 2022 10 Oct 2023
segment is expected in the second half in the second and third quarters of the tilt in sales mix towards high-margin high-
of 2023-24, led by the commissioning of current fiscal year due to optimal plant and performance materials will provide value business and capacity expansion-led
projects, increased utilisation and new capacity. The rising usage of fluorine in strong growth opportunities in the HPP growth. It estimates a 33% CAGR in net
product launches. pharma and agro space, battery chemicals and specialty chemicals segments. profit over 2022-23 and 2025-26.
PI INDUSTRIES INDIAMART INTERMESH BIOCON TORRENT

12-month Current 1-year target UPSIDE
The e-commerce
company is expected
12-month Current 1-year target PHARMACEUTICALS
forward PE price (`) price (`) POTENTIAL forward PE price (`) price (`) The pharma company
to report revenue, UPSIDE
30.7 3,465 4,197 12.6 % EBITDA and net profit 28.7 258 290 POTENTIAL
is expected to report
revenue, EBITDA and
ANALYSTS’ RECOMMENDATIONS
growth of 21.8%, 25.8%
and 14.6%, respectively, on a y-o-y basis, ANALYSTS’ RECOMMENDATIONS 11.3 % net profit growth of
16.8%, 19.9% and 22.2%,
BUY HOLD SELL according to Refinitiv consensus estimates. BUY HOLD SELL
respectively, on a y-o-y basis, according
20 2 1 It is expected to witness a healthy margin 12 3 4 to Refinitiv consensus estimates. Torrent’s
recovery in the future, supported by strong
Nifty 500 domestic business and Brazil franchise are
100 Nifty 500 cash collection. 100
115.07 poised for market-leading growth. While
115.07 The price revision for entry-level paid
the former will be supported by price
customers is expected to improve its
hikes and increasing brand value, the
PI ARPU (average revenue per user) in the
Industries faster pace of new launches will support
future. Though the company added a
the latter.
113.41 lower number of paid customers in the Biocon Moreover, the growth outlook of the
June 2023 quarter, the management
91.21 US and German markets is improving
expects additions in paid subscribers to
as regulatory hurdles are expected to
normalise in the third quarter of 2023-24.
abate gradually. The company is also
Also, the company’s acquisitions in
7 Oct 2022 10 Oct 2023 7 Oct 2022 10 Oct 2023
seeing price stability in the US generics
accounting software (Busy, Vyapar,
segment and the margins are likely to
The agri sciences Livekeeping and Realbooks) are The biotechnology
UPSIDE UPSIDE jump due to cost optimisation measures.
company is expected to benefitting the company as more MSMEs company is expected to
POTENTIAL POTENTIAL Better integration and synergies from
report revenue, EBITDA are becoming GST-compliant and getting report revenue, EBITDA
21.1 % and net profit growth of
24.1%, 27.1% and 29.8%,
digitised. Analysts see higher growth in
digitisation among SMEs, strong network
12.4 % and net profit growth
of 58.3%, 78.3% and
Curatio’s (wholly owned subsidiary)
portfolio, significant share of the domestic
formulations in revenue (more than 55%
respectively, on a y-o-y basis, according effect, lower churn rate across clients, 222.4%, respectively, on a y-o-y basis,
in the June 2023 quarter), better product
to Refinitiv consensus estimates. Strong industry-leading position and high according to Refinitiv consensus estimates.
mix, softening of API prices, recovery in
demand momentum in the CSM (custom operating leverage as the key strongholds. The company is well placed to benefit
chronic therapy growth rates in India and
synthesis manufacturing) business, A recent Elara Securities report is from the growing biosimilar market and
industry-leading PCPM (measure of sales
and decent prospects for the domestic bullish on the company and expects 25% plans to launch three new biosimilars in
force productivity) in India are the key
segment are expected to support the y-o-y revenue growth over 2023-24 and the US market. It is also well positioned
positives.
future performance of the company. 2025-26, led by higher ARPU. Another among peers due to its attractive product
The speculated deal on the company’s
The CSM order book stood at $1.8 report from Ambit Capital, which was pipeline. Also, the market share gains in
acquisition of Cipla’s promoter stake is
billion at the end of the June 2023 released after the June 2023 quarter base business, expansion in new markets,
expected to bring a larger US business
quarter, with the segment helping results, expects the company to mitigate and consolidation of Viatris biosimilar
into Torrent’s fold, but a Yes Securities
the company to sustain growth in an challenges from verticalised e-B2B portfolio is enhancing the company’s
report sees the deal, if it materialises, as
unfavourable global environment. On the players due to granular and specific competitiveness in the segment.
a negative due to debt and ROCE dilution
other hand, the domestic segment will be cataloguing, which makes its traffic sticky In generics, the company is expanding
concerns.
driven by new product launches and focus and less vulnerable to poaching. capacities in peptides and injectable
on wheat, rice and horticultural crops. drugs, and diversifying in emerging
12-month Current 1-year target 12-month Current 1-year target
The consolidation of pharma markets to drive growth. It is also focusing
forward PE price (`) price (`) forward PE price (`) price (`)
acquisitions is also expected to support on fermentation-based products, which
overall growth as the management plans 52.0 2,820 3,175 are expected to support growth in the 33.8 1,869 2,079
to double the segment revenue in the next future. The outlook of Syngene (research
three to four years. Also, tailwinds like ANALYSTS’ RECOMMENDATIONS subsidiary) remains robust, led by strong ANALYSTS’ RECOMMENDATIONS
the government’s plan to introduce PLI BUY HOLD SELL traction from clients and its plans for full- BUY HOLD SELL
scheme for chemicals and agrochemicals 10 2 3 scale vaccine manufacturing. 19 6 3
will bode well for the company. The company’s capex cycle is nearing
A recent Motilal Oswal report is bullish Indiamart completion, which will improve cash flow Torrent
on the company and believes that it Intermesh visibility and mitigate debt repayment
100 100 Pharmaceuticals
has levers in place to sustain the near- 125.69 concerns. A recent JM Financial report 118.86
term growth momentum, led by faster remains bullish on the company and
Nifty 500
commercialisation of new molecules, sales believes its risk-reward ratio is extremely
ramp-up in existing molecules, product Nifty 500 favourable, which will support stock re- 115.07
launches in the domestic market and 115.07 rating. It says that all business segments
recent acquisitions in the pharma API are poised for double-digit growth and
(active pharmaceuticals ingrdients) and expects margins to expand by 380 basis
CDMO space. points over the 2022-23 and 2025-26
7 Oct 2022 10 Oct 2023 period. 7 Oct 2022 10 Oct 2023
Current price as on 10 October 2023. Nifty 50 12-M forward PE: 19.3. Source: Refinitiv
career
How to make Winning the

internal battle
a smooth Acknowledge
emotions
career switch
Accept that emotions are a
natural reaction to change and
your growth journey. Do not
ignore or suppress them. Express
them in a healthy manner by
either journalling or sharing with
Treat it as a continuous process of a friend or counsellor. Expressing
emotions will help you figure out
learning and growth, and prepare well what really matters to you and
the worries you can let go of.
for it, says Devashish Chakravarty.
Reframe thoughts
Speak your thoughts aloud
or write them down. Identify
negative thoughts and frames
that kill your motivation. Reframe
every situation that you may be
obsessing about. Define the gains,
GETTYIMAGES
learning and personal growth
from a career switch, instead
of focusing on failure or losses.
T
List out your existing skills that
he past few years have been a careers, learn more about them. Research
wild ride. Everything is chang- online about the industries, companies
Build a new network qualify you for the switch.
ing around us, including in- and roles within these areas. Go through Creating a new space and network is the
dustries and professions. Many websites to gather information and check last step as you get ready to start your new Channelise feelings
professionals are adapting to the news articles for current trends. You can career. To generate career opportunities Your negative feelings
evolving market or personal circumstances use LinkedIn to map out individual career and job roles, you need to know people and can be a great source of energy
by switching careers to either pursue bet- trajectories and platforms like Glassdoor they need to know you. Start building a and output if you direct these
ter opportunities and challenges, or to do to read about experiences shared by professional network by joining online and well. Feeling stressed? Go for
something more exciting or meaningful. people. Next, jump to primary research offline communities and groups. Attend a workout or start meditation.
Your own job role and career may have by speaking to people who are working conferences, industry events, online Feeling anxious about your lack
transformed from the one you signed up for. in that field. Reach out to them through events, webinars and workshops with the of ability? Pick up a skill that the
Are you frustrated and disgruntled with the your network and have an informational dual goals of learning about your domain new career needs, and invest time
changes and are dreaming about a career interview with them. Ask them about their and meeting new people. Use your existing and effort in it. Use insecurity to
transition too? Know that changing careers experiences, aspirations, challenges and contacts to seek new professional contacts drive your learning and progress
is an opportunity to discover new interests, advice for you. Discuss your career plans and meetings. Use tools like AngelList and to calm your anxiety.
develop new skills, increase your income, or and goals with trusted people in your LinkedIn to connect with new companies
simply enhance your well-being. Here’s how professional network and avoid blind spots and people. Finally, evaluate and apply to
you can convert your dreams to reality. in thinking and approach. Finally, narrow jobs, whether these are generated through Seek support
down to the career you wish to pursue. your new network or job boards and profes- Do not treat your career
sional networking platforms. switch as a solo trip. Like all
Identify your interests other major events in life, involve
Start your career switch planning with Bridge the skill gap others who are a part of your life
a clean slate. As an easy first step, write After exploring and mapping out the new Final checklist journey. Keep your family and
down your skills. Include tangible skills direction, list out skills required for suc- As you get ready to find and finalise your friends updated and involved,
that you have learnt and used at work, such cess in your new career and find the over- first opportunity, make sure you have and accept their encouragement
as working on a software like Tally/ SAP. lap with the skills you already possess. covered all the bases. First, have adequate and emotional support. Take
Next, write down your strengths or areas in What is the skill gap that you need to over- financial support to see you through the advice from your peers and
which you are much better than others, say, come? Which are the top one or two skills transition phase. Second, be prepared for mentors. Connect with others
analytical thinking or detail orientation. that will get you the maximum leverage? emotional uncertainty and resistance or who are going through similar
Third, list out your interests or areas in To get started on your re-skilling journey, criticism of a few naysayers. Third, update switches.
which you enjoy working, say, client facing consider online and offline courses to ac- your resume and online profiles, and start
roles, content creation, etc. Finally, the most quire mandatory or good-to-have certifica- with mock interviews and preparation.
challenging bit is introspection about your tions for your new career. Fourth, be prepared to negotiate your first Celebrate
values and purpose. What kind of work do Next, seek out a mentor or an expert in salary. Finally, have a plan to transition
milestones
Celebration and self-
you find distasteful or meaningless, and that field who is willing to guide or coach smoothly from your current career to the
acknowledgement is an essential
what kind do you find purposeful or enjoy- you with a hands-on experience in that new one. Though the transition may be
step in a career switch, and in
able? You can also speak to a mentor or skill. Even though most of your learning rocky initially, you are playing the long
creating a new professional
career counsellor, or use an online tool like will come from on-the-job work after you game of continuous learning and growth.
identity. Acknowledge that
Myers-Briggs Type Indicator to understand start, your initial efforts are critical to let Your ability and experience in navigating
every step takes you closer
more about yourself. Conclude this self- hiring managers know of your commit- the hurdles will only add to your confidence
to your goal. Treat these as
awareness exercise to determine what kind ment and willingness to deliver from day and future success.
milestones and celebrate each
of careers would interest you over a horizon one. After you get started, add your new
accomplishment by either
of 10 years or more. skills and certifications to your resume.
rewarding yourself or by sharing
Rework your old resume to focus on those
THE WRITER IS FOUNDER & CEO, with people who matter. Enjoy
past projects and achievements that show-
Map out new opportunities case existing transferable skills that are
SALARYNEXT.COM, A JOB LOSS the new career!
ASSUR ANCE COMPANY
Once you have listed a few suitable relevant to the new career.
SMART STATS
The Economic Times Wealth
October 16-22, 2023
In This Section
MUTUAL FUNDS - P14
LOANS AND DEPOSITS - P16
ET WEALTH TOP 50 STOCKS

ALTERNATIVE INVESTMENTS- P17
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

Kalpataru Projects Intnl. 1 1 659.70 31.25 86.44 22.45 2.25 1.08 0.30 1.29 0.87 15 4.60
Samvardhana Motherson 2 2 95.45 30.46 133.63 43.15 2.88 0.68 0.33 1.37 1.07 22 4.64
Natco Pharma 3 4 869.95 41.60 74.85 22.03 3.23 1.06 0.30 1.06 0.39 15 3.47 Top 5 stocks with the highest
revenue growth (%) over the
LIC Housing Finance 4 3 471.85 17.23 47.51 8.98 0.96 1.79 0.20 1.25 1.23 32 3.84
previous year
Manappuram Finance 5 9 146.30 26.91 38.83 8.31 1.29 2.10 0.24 1.78 2.01 20 4.40
PSP Projects 44
Apollo Tyres 6 5 379.30 10.22 65.02 21.92 1.88 1.19 0.35 1.21 0.45 29 3.52
Phoenix Mills 42
Zydus Lifesciences 7 6 593.95 17.21 64.85 30.66 3.43 1.00 0.50 0.86 0.26 36 3.69
Maruti Suzuki India 8 7 10,580.90 33.17 45.92 38.83 5.16 0.86 0.84 0.70 0.70 49 4.16 Natco Pharma 42
Somany Ceramics 9 11 718.00 18.95 95.78 42.30 3.84 0.43 0.44 1.42 0.46 22 4.64 Ujjivan Small
Finance Bank 37
Balrampur Chini Mills 10 8 416.75 29.57 104.06 30.01 2.91 0.59 0.28 1.32 0.97 11 3.91
Maruti Suzuki 33
Steel Authority of India 11 12 89.35 2.92 89.89 17.00 0.68 1.13 0.17 1.26 1.60 26 3.12 India
Adani Ports & SEZ 12 13 814.95 28.62 69.84 33.12 3.86 0.61 0.47 2.14 2.91 20 4.80
Larsen & Toubro
Endurance Technologies
13
14
15
14
3,081.75
1,586.85
22.96
27.11
41.19
74.80
41.33
46.64
4.84
5.07
0.97
0.44
1.00
0.62
0.82
0.97
0.30
0.01
37
20
4.62
4.30
2 Least expensive stocks
Top 5 stocks with the lowest
IndusInd Bank 15 17 1,424.25 10.43 29.68 13.90 1.93 0.99 0.47 1.18 2.18 48 4.75 price-earnings ratio
PSP Projects 16 21 770.20 44.48 55.95 21.13 3.48 0.32 0.38 1.31 2.02 12 4.58 Manappuram
8.31
Finance
M&M Financial 17 16 286.85 26.65 24.96 17.10 1.91 2.07 0.66 1.29 1.55 40 3.72
CESC 8.72
Phoenix Mills 18 -- 1,939.65 42.43 49.19 25.94 4.13 0.26 0.51 1.23 0.50 16 4.62
LIC Housing 8.98
Aurobindo Pharma 19 22 915.90 16.65 59.55 27.83 2.00 0.33 0.46 1.27 0.46 30 3.83
Finance
UPL 20 19 620.60 5.59 24.25 13.58 1.56 1.59 0.46 0.95 0.70 29 4.31 Ujjivan Small 9.79
Finance Bank
Orient Cement 21 20 187.80 18.06 87.98 31.06 2.38 0.87 0.35 1.49 1.24 13 3.77
Federal Bank 9.97
EPL 22 23 192.95 19.90 42.15 27.09 3.10 2.22 0.64 1.29 0.60 11 4.45
3 Best PEGs
Cipla India 23 28 1,157.90 17.35 40.28 33.26 3.98 0.73 0.79 0.83 0.37 40 4.10
Voltas 24 -- 856.95 25.30 78.90 210.23 5.21 0.49 0.53 1.02 0.61 44 3.43
Top 5 stocks with the least
Cyient 25 27 1,774.50 27.36 43.80 37.58 5.64 1.52 0.89 1.41 0.05 19 4.16 price earnings to growth ratio
CESC 26 29 88.35 16.67 14.53 8.72 1.07 5.08 0.78 0.94 0.15 14 4.64 LIC Housing Balrampur
Finance Chini Mills
Federal Bank 27 26 149.30 16.54 17.42 9.97 1.43 0.68 0.55 1.15 1.66 39 4.80
Hero MotoCorp 28 34 3,088.25 13.49 35.23 21.80 3.68 3.22 0.63 0.92 1.06 46 3.61
0.17 0.20 0.24 0.28 0.30
Embassy Office Parks 29 24 308.14 10.79 44.17 51.86 1.21 7.13 1.13 0.73 0.02 14 4.93
NTPC 30 25 241.85 4.46 22.50 13.87 1.60 3.04 0.72 0.84 0.79 24 4.79
Steel Authority Manappuram Kalpataru Projects
UltraTech Cement 31 30 8,351.75 16.58 67.66 47.49 4.43 0.46 0.73 0.78 0.90 45 4.11 Finance
of India International
Bajaj Auto 32 33 5,106.60 23.42 21.70 24.02 4.92 2.76 1.04 0.81 -0.01 47 3.64
Jindal Steel & Power
HeidelbergCement India
33
34
--
32
691.70
192.40
6.68
11.46
96.87
146.04
22.11
43.97
1.80
2.99
0.29
3.63
0.38
0.30
1.37
1.06
1.45
1.47
26
18
4.08
2.72
4 Income generators
Top 5 stocks with the highest
Torrent Pharmaceuticals 35 35 1,876.60 20.50 50.80 51.12 10.27 1.17 1.01 0.84 -0.04 33 4.27 dividend yield (%)
Embassy Office
Mahindra & Mahindra 36 31 1,566.65 15.40 10.08 16.96 3.46 1.04 0.66 1.00 1.09 43 4.61 7.13
Parks REIT
Kajaria Ceramics 37 38 1,304.90 21.88 63.02 60.28 8.93 0.70 0.96 1.03 0.12 35 4.14 CESC 5.08
Alembic Pharmaceuticals 38 36 799.75 18.61 84.52 45.91 3.59 0.99 0.54 1.10 0.98 19 3.32 HeidelbergCement
3.63
India
Eicher Motors 39 -- 3,494.20 23.99 34.02 32.93 6.40 1.06 0.95 1.02 0.66 44 3.80 Hero MotoCorp 3.22
Blue Star 40 40 882.60 29.70 52.08 43.09 12.70 0.68 0.77 0.98 -0.38 23 4.00 NTPC 3.04
5 Least risky
Ajanta Pharma 41 37 1,779.90 18.52 44.77 38.83 6.66 1.43 0.84 1.10 0.26 16 4.50
VRL Logistics 42 45 648.10 26.56 45.68 34.37 5.85 0.76 0.82 1.35 0.48 13 4.54
Top 5 stocks with the lowest
Finolex Industries 43 43 225.30 10.21 134.36 55.69 2.84 0.67 0.42 1.40 0.94 18 3.83
downside risk
Suprajit Engineering 44 42 391.60 17.87 61.73 35.49 4.41 0.59 0.57 1.21 0.75 10 4.40 Embassy Office
Parks REIT Bajaj Auto
Ujjivan Small Finance Bank 45 41 58.30 36.66 14.22 9.79 2.84 2.14 1.15 1.53 2.07 15 4.93
UTI Asset Management Co 46 46 798.30 12.98 31.69 23.16 2.62 2.78 0.71 1.18 0.40 15 4.07
0.70 0.73 0.78 0.81 0.82
Aptus Value Housing 47 48 293.10 15.82 35.61 29.00 4.37 1.35 0.84 1.41 0.00 17 4.41
Ipca Laboratories 48 -- 945.55 21.44 84.10 51.02 4.12 0.42 0.60 1.07 0.22 21 2.81
Maruti Suzuki UltraTech Larsen &
JK Lakshmi Cement 49 49 677.55 14.30 50.84 22.23 2.84 0.56 0.44 1.45 1.54 20 4.00 India Cement Toubro
Rallis India 50 -- 217.05 14.03 123.80 45.96 2.44 1.15 0.41 1.28 2.20 17 2.41 SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
IN THE ADJACENT TABLE.
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 12 OCTOBER 2023. SOURCE: BLOOMBERG
smart stats
LAGGARDS & LEADERS

ETW FUNDS 100
BEST FUNDS TO BUILD YOUR PORTFOLIO
Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).
LAGGARDS LEADERS
Equity: Large cap 5-year returns

ET Wealth collaborates with Value Research to identify the top-performing
11.39 17.65
funds across categories. Equity funds and equity-oriented hybrid funds are Taurus Largecap Equity Fund BHARAT 22 ETF
ranked on 3-year returns while debt-oriented hybrid and income funds are 11.56 17.47
LIC MF Nifty Next 50 Index Fund ICICI Prudential BHARAT 22 FOF
ranked on 1-year returns.
11.68 17.11
ICICI Prudential Nifty Next 50 Quant Focused Fund
RETURNS (%)
Value Research Net Assets Expense 11.80 16.63
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%)
Groww Large Cap Fund Nippon India Large Cap Fund
EQUITY: LARGE CAP

11.88 16.41
Quant Focused Fund  394.16 5.83 17.54 18.03 24.93 17.11 2.38 24.93% UTI Nifty Next 50 Index Fund Canara Robeco Bluechip Equity Fund
ICICI Prudential Bluechip Fund  41,833.39 5.09 15.76 21.7 23.04 15.86 1.58
THE 3-YEAR
UTI Nifty 50 Index Fund - Regular Plan  12,596.83 2.17 12.51 17.48 19.49 15.07 0.41 RETURN OF
HDFC Index Fund Nifty 50 Plan  9,828.80 2.15 12.44 17.36 19.31 14.84 0.40 QUANT Equity: Flexi cap 5-year returns
Bandhan Nifty 50 Index Fund - Regular Plan  929.37 2.11 12.33 17.07 19.06 14.91 0.60 FOCUSED
Kotak Bluechip Fund - Regular Plan  6,511.83 3.41 13.51 17.56 18.99 15.73 1.79 FUND IS THE 11.00 24.49
HIGHEST
HDFC Index Fund - S&P BSE Sensex Plan  5,467.73 1.55 11.33 17.34 18.80 15.09 0.40 Shriram Flexi Cap Fund Quant Flexi Cap Fund
IN ITS
 CATEGORY.
ICICI Prudential S&P BSE Sensex Index Fund 1,105.67 1.55 11.36 17.34 18.73 15.15 0.35
11.34 21.65
Nippon India Index Fund - S&P BSE Sensex Plan  518.80 1.52 11.19 16.94 18.52 14.78 0.58
Axis Focused 25 Fund 360 ONE Focused Equity Fund
Canara Robeco Bluechip Equity Fund - Regular Plan  10,335.66 2.53 13.49 17.03 17.94 16.41 1.71
11.45 20.62
EQUITY: LARGE & MIDCAP
Taurus Flexi Cap Fund Parag Parikh Flexi Cap Fund
HDFC Large and Mid Cap Fund - Regular Plan  11,810.08 8.1 24.45 28.15 31.12 19.19 1.78
ICICI Prudential Large & Mid Cap Fund  9,177.04 6.63 18.56 23.17 30.74 18.13 1.8
11.48 20.17
SBI Large & Midcap Fund  15,705.95 4.02 16.18 17.39 27.12 17.94 1.75 Motilal Oswal Flexi Cap JM Flexicap Fund
Kotak Equity Opportunities Fund - Regular Plan  15,500.47 6.13 19.08 23.23 24.13 18.79 1.66 11.99 19.64
Mirae Asset Emerging Bluechip Fund - Regular Plan  29,024.00 7.46 20.32 21.77 23.71 19.78 1.6 Bandhan Focused Equity HDFC Retirement Savings Fund Equity
Tata Large & Mid Cap Fund - Regular Plan  5,331.34 3.68 16.73 19.58 23.60 18.62 1.86
EQUITY: FLEXI CAP

HDFC Flexi Cap Fund  39,794.33 5.35 17.48 25.44 32.23 18.07 1.59
32.23% Equity: Mid cap 3-year returns
JM Flexicap Fund  640.69 9.6 25.74 32.44 29.74 20.17 2.36
THE 3-YEAR 19.56 37.18
HDFC Retirement Savings Fund Equity Plan  3,746.40 5.01 18.47 26.92 29.59 19.64 1.87 RETURN OF
HDFC FLEXI DSP Midcap Fund Quant Mid Cap Fund
Franklin India Focused Equity Fund  9,529.06 5.22 18.18 19.51 29.48 18.12 1.8
CAP FUND 22.8 36.90
ICICI Prudential Retirement Fund - Pure Equity Plan  367.57 4.95 23.09 23.67 28.26 — 2.4
IS THE
Franklin India Flexi Cap Fund  12,141.15 8.77 20.93 23.45 28.13 17.12 1.76 HIGHEST Axis Midcap Fund Motilal Oswal Midcap Fund
ICICI Prudential Focused Equity Fund  5,382.93 4.36 17.49 23.13 25.17 16.15 1.85 IN ITS 23.08 34.17
360 ONE Focused Equity Fund - Regular Plan  4,629.87 5.7 18.04 24.29 24.35 21.65 1.88 CATEGORY.
HSBC Midcap Fund HDFC Mid-Cap Opportunities Fund
Parag Parikh Flexi Cap Fund - Regular Plan  42,784.56 5.92 16.38 25.41 22.83 20.62 1.41
23.22 34.03
Union Flexi Cap Fund  1,634.04 5.91 19.31 20.15 22.09 17.4 2.09
LIC MF Midcap Fund SBI Magnum Midcap Fund
PGIM India Flexi Cap Fund - Regular Plan  5,816.46 0.97 13.36 14.05 21.23 18.81 1.78
Canara Robeco Flexi Cap Fund - Regular Plan  10,307.83 2.57 13.81 15.6 18.62 16.49 1.72 25.97 33.93
Franklin India Prima Motilal Oswal Nifty Midcap 100 ETF
EQUITY: MID CAP
Quant Mid Cap Fund  3,140.30 12.46 27.19 27.95 37.18 25.46 1.92 37.18%
Motilal Oswal Midcap Fund - Regular Plan  5,953.05 9.5 28.29 24.37 36.9 23.01 1.79 THE
SBI Magnum Midcap Fund  13,244.51 7.06 23.15 22.57 34.03 22.66 1.78 3-YEAR Equity: Small cap 3-year returns
Nippon India Growth Fund  19,247.23 10.84 30.64 30.33 33.38 23.05 1.69 RETURN OF
QUANT MID 25.06 44.45
Mirae Asset Midcap Fund - Regular Plan  12,172.62 10.22 27.49 25.01 31.8 — 1.71
CAP FUND
Edelweiss Mid Cap Fund - Regular Plan  3,797.54 9 23.68 22.16 30.98 21.48 1.86 IS THE ITI Small Cap Fund Quant Small Cap Fund
Kotak Emerging Equity Fund - Regular Plan  33,918.27 9.11 22.02 22.39 30.49 21.94 1.52 HIGHEST 30.25 43.84
IN ITS
PGIM India Midcap Opportunities Fund - Regular Plan  9,342.34 4.06 16.39 9.66 28.76 24.03 1.71 Aditya Birla Sun Life Nippon India Small Cap Fund
CATEGORY.
EQUITY: SMALL CAP 31.85 41.14
Quant Small Cap Fund  9,089.12 11.7 29.52 38.61 44.45 29.6 1.76 Bandhan Emerging Businesses HSBC Small Cap Fund
Nippon India Small Cap Fund  37,374.40 11.38 32.88 35.82 43.84 26.6 1.55 32.37 40.17
Tata Small Cap Fund - Regular Plan  6,134.53 7.72 25.13 29.81 39.41 — 1.76
SBI Small Cap Fund HDFC Small Cap Fund
Edelweiss Small Cap Fund - Regular Plan  2,455.27 10.2 29.06 27.99 37.29 — 1.95
Kotak Small Cap Fund - Regular Plan  12,439.62 7.41 23.85 20.71 35.39 24.99 1.68
32.6 39.41
Axis Small Cap Fund - Regular Plan  16,175.33 7.78 24.59 24.41 32.6 26.05 1.66 Axis Small Cap Fund Tata Small Cap Fund
EQUITY: VALUE ORIENTED

SBI Contra Fund  16,337.09 7.71 21.4 29.56 37.55 23.11 1.73 37.55% Hybrid: Aggressive 5-year returns
Bandhan Sterling Value Fund - Regular Plan  6,846.79 5.71 20.98 23.9 35.33 19.05 1.81 THE 3-YEAR
ICICI Prudential Value Discovery Fund  33,938.64 7.61 17.82 27.74 29.76 18.77 1.64 RETURN OF 21.59
SBI CONTRA
9.50
EQUITY: ELSS FUND IS Nippon India Equity Hybrid Quant Absolute Fund
Quant Tax Plan  4,924.99 7.44 20.16 15.98 33.24 26.56 1.85 THE HIGH- 9.92 18.25
Bandhan Tax Advantage (ELSS) Fund - Regular Plan  5,160.17 5.5 19.9 22.74 29.46 18.77 1.79 EST IN ITS
CATEGORY.
LIC MF Aggressive Hybrid Bank of India Mid & Small Cap Equity
DSP Tax Saver Fund  12,085.93 6.44 18.53 21.83 24.69 18.36 1.69
Bank of India Tax Advantage Fund - Regular Plan  888.58 8.24 20.1 22.58 24.22 21.09 2.25 10.17 18.22
PGIM India ELSS Tax Saver Fund - Regular Plan  568.45 1.82 12.26 16.8 23.82 16.37 2.32 PGIM India Hybrid Equity ICICI Prudential Equity & Debt Fund
Kotak Tax Saver Regular Plan  4,198.60 5.3 16.88 20.9 23.46 17.92 1.8 10.4 16.18
Union Tax Saver (ELSS) Fund  708.49 5.74 18.52 19.34 22.96 17.87 2.35 Shriram Aggressive Hybrid Kotak Equity Hybrid Fund
Parag Parikh Tax Saver Fund - Regular Plan  2,064.97 7.06 15.73 20.19 22.41 — 1.86
10.44 16.06
Mirae Asset Tax Saver Fund - Regular Plan  17,985.39 5.46 17.39 20.51 22.3 18.41 1.61
Canara Robeco Equity Tax Saver Fund - Regular Plan  6,139.98 2.93 14.29 14.84 20.45 18.14 1.74
Bandhan Asset Allocation HDFC Children’s Gift Fund
ANNUALISED RETURNS IN % AS ON 11 OCT 2023.

smart stats
ETW FUNDS 100 Value Research Net Assets

RETURNS (%)
Expense
1 Top 5 SIPs
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio
HYBRID: EQUITY SAVINGS

HDFC Equity Savings Fund  3,110.80 2.67 7.75 11.3 13.71 9.59 2.01 Top 5 equity schemes based
UTI Equity Savings Fund - Regular Plan  291.56 2.78 8.51 13.82 12.86 9.45 1.5 on 10-year SIP returns
SBI Equity Savings Fund - Regular Plan  3,062.01 5.22 12.72 13.99 12.8 10.61 1.19
Nippon India Small Cap Fund
Mirae Asset Equity Savings Fund - Regular Plan  712.31 2.77 8.94 11.77 11.83 — 1.38
Kotak Equity Savings Fund - Regular Plan  3,154.13 2.51 7.99 12.54 10.94 9.67 1.96 24.52
ICICI Prudential Equity Savings Fund  7,068.60 2.7 6.35 10.34 10.36 8.44 0.99 Quant Small Cap Fund
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) 23.23
ICICI Prudential Equity & Debt Fund  26,324.58 7.1 16.16 22.66 30.45 18.22 1.68 30.45% Quant Tax Plan
Quant Absolute Fund  1,378.11 2.75 10.37 9.25 26.12 21.59 2.1 THE 3-YEAR
RETURN OF 22.66
JM Equity Hybrid Fund  74.45 10.69 22.86 29.76 23.47 14.77 2.4
ICICI PRU SBI Small Cap Fund
HDFC Children's Gift Fund  7,402.71 3.82 13.6 21.68 21.32 16.06 1.79
EQUITY & DEBT
Edelweiss Aggressive Hybrid Fund - Regular Plan  904.21 4.8 14.99 20.53 21.2 14.95 2.21 FUND IS THE 22.26
Mahindra Manulife Aggressive Hybrid Fund  820.79 5.15 15.19 18.74 20.97 — 2.24 HIGHEST IN ITS Quant Flexi Cap Fund
HDFC Hybrid Equity Fund  21,045.90 2.43 10.95 18.07 20.72 14.58 1.71
CATEGORY.
20.80
Kotak Equity Hybrid Fund - Regular Plan  4,266.69 4.24 12.54 16.12 20.15 16.18 1.84
HDFC Retirement Savings Fund - Hybrid Equity Plan  1,149.32 3.55 13.94 21.25 20.13 14.96 2.16 SIP: SYSTEMATIC % ANNUALISED RETURNS
Baroda BNP Paribas Aggressive Hybrid Fund - Regular Plan  848.67 4.11 13.41 16.97 17.18 15.3 2.23 INVESTMENT PLAN AS ON 11 OCT 2023
Canara Robeco Equity Hybrid Fund - Regular Plan  9,033.69 2.78 11.99 14.19 15.51 14.23 1.75
2 Top 5 MIPs
HYBRID: CONSERVATIVE (DEBT-ORIENTED)
SBI Magnum Children's Benefit Fund - Savings Plan
HDFC Hybrid Debt Fund


100.74
2,892.57
4.94
2.41
10.17
7.2
13.17
12.77
14.15
12.17
10.26
9.92
1.23
1.8
13.17%
THE 1-YEAR Top 5 MIP schemes based on
SBI Conservative Hybrid Fund  8,962.82 2.93 7.86 11.25 12 10.7 1.12
Kotak Debt Hybrid Fund - Regular Plan  1,987.03 1.67 6.86 10.39 10.82 10.86 1.76
RETURN OF 3-year SWP returns
SBI MAGNUM
ICICI Prudential Regular Savings Fund  3,295.25 2.18 6.63 9.62 9.04 9.37 1.72 CHILDREN’S SBI Magnum Children’s Benefit Fund
Canara Robeco Conservative Hybrid Fund - Regular Plan  1,037.75 1.8 5.47 8.36 7.96 9.4 1.81 BENEFIT IS
THE HIGH- 14.40
DEBT: MEDIUM TO LONG TERM EST IN ITS
Bank of India Conservative Hybrid Fund
SBI Magnum Income Fund  1,677.61 0.88 3.1 7.36 4.64 7.61 1.46 CATEGORY.
UTI Bond Fund - Regular Plan  311.19 0.2 2.21 6.45 8.31 4.07 1.62 13.22
HDFC Hybrid Debt Fund
DEBT: MEDIUM TERM
11.50
SBI Magnum Medium Duration Fund  7,042.91 1.21 3.25 7.51 5.07 7.7 1.22
Axis Strategic Bond Fund  1,916.87 0.93 2.93 7 5.53 6.86 1.09 SBI Conservative Hybrid Fund
Aditya Birla Sun Life Medium Term Plan  1,897.20 0.95 2.84 6.99 12.47 8.23 1.58
11.33
ICICI Prudential Medium Term Bond Fund  6,504.55 1.1 3.04 6.95 5.63 7.23 1.4
ICICI Prudential Income Optimizer
DEBT: SHORT TERM
11.05
ICICI Prudential Short Term Fund  18,689.00 1.49 3.46 7.31 5.33 7.29 1.07 7.31%
SWP: SYSTEMATIC % ANNUALISED RETURNS
HDFC Short Term Debt Fund  12,405.74 1.3 3.21 7.08 4.87 7.13 0.74 THE 1-YEAR
WITHDRAWAL PLAN
Sundaram Short Duration Fund  196.19 1.1 2.86 6.69 6.67 5.31 0.84 RETURN OF AS ON 11 OCT 2023
UTI Short Term Income Fund - Regular Plan  2,388.88 1.25 3.06 6.69 6.23 5.05 0.95 ICICI PRU
SHORT TERM
Axis Short Term Fund  7,366.58 1.08 2.79 6.62 4.59 6.84 0.99
Mid & Small Cap: Exposure
3
FUND IS
Aditya Birla Sun Life Short Term Fund  5,465.99 1.16 2.97 6.6 4.97 6.99 1.09 THE HIGH-
EST IN ITS of multi-cap funds
DEBT: DYNAMIC BOND CATEGORY.
ICICI Prudential All Seasons Bond Fund  11,096.97 1.27 3.36 7.31 5.46 7.77 1.31
Quantum Dynamic Bond Fund - Regular Plan  91.30 0.51 2.58 7.13 4.54 7.02 0.96
61.60 61.24 58.62 58.41
SBI Dynamic Bond Fund  2,965.72 0.52 2.83 7.03 4.27 7.42 1.44 56.65
Aditya Birla Sun Life Dynamic Bond Fund  1,712.27 0.68 2.59 6.5 5.76 5.62 1.23
360 ONE Dynamic Bond Fund - Regular Plan  744.85 0.68 2.84 6.27 5.32 6.36 0.52
DEBT: CORPORATE BOND

ICICI Prudential Corporate Bond Fund  23,379.83 1.68 3.74 7.45 5.41 7.36 0.53
Nippon India Corporate Bond Fund  2,458.21 1.2 3.2 7.29 5.44 6.75 0.67 Expense as on 30 Sept 2023
Aditya Birla Sun Life Corporate Bond Fund  17,915.33 1.35 3.29 7.23 5.16 7.51 0.5 Returns as on 11 Oct 2023
Assets as on 30 Sept 2023 SBI Bank LIC MF Axis Invesco
Kotak Corporate Bond Fund - Standard Plan  10,717.87 1.29 3.12 6.78 4.74 6.77 0.67
Rating as on 30 Sept 2023 Multicap of India Multi Cap Multicap India
Axis Corporate Debt Fund - Regular Plan  4,948.13 1.17 2.94 6.7 4.73 6.47 0.94
Fund Multi Cap Fund Fund Multicap
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Fund Fund
Did not find your fund here? % OF ASSETS AS ON 30 SEPT 2023
Log on to www.wealth.economictimes.com for an exhaustive list.
Methodology
The Top 100 includes only those funds that have a 5- or
4-star rating from Value Research. The rating is determined
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
FUND
4 Debt: Dynamic bond
Multi-cap: Mostly invested in large- and mid-cap
RAISER
by subtracting a fund’s risk score from its return score.
The result is assigned stars according to the following companies.
distribution: Mid-cap: Mostly invested in mid-cap companies. 0.66
0.62
Small-cap: Mostly invested in small-cap companies. 0.57
 Top 10% 0.52
32.6%
 Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
 Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
 Next 22.5% 100 listing) Income: Average maturity varies according to objective.
Gilt: Medium- and long-term; invest in gilt securities.
of the total number of equity 0.15
 Bottom 10%
schemes are from the sectoral/
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more
less than three years old have been excluded. This ensures than 60%. thematic category, the highest
that all the funds have existed long enough to be tracked for among all other equity sub- Kotak All 360 ONE Axis All Aditya Axis
Debt-oriented aggressive: Average equity exposure Weather Dynamic Seasons Birla Sun Dynamic
consistency of performance. Given the focus on long-term between 25-60%. categories, followed by the Debt FoF Bond Debt Life Active Bond
investing, liquid funds, short-term funds and FMPs are not
Debt-oriented conservative: Average equity exposure ELSS category. Data is for Fund FoF Debt Multi- Fund
part of the list. For the same reason, we have considered only
less than 25%. Manager
the growth option of funds that reinvest returns instead of September 2023.
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity % AS ON 30 SEP 2023
Despite these rigorous filters, the list includes 2/3 funds of and derivatives. % EXPENSE RATIO IS CHARGED ANNUALLY.
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per SOURCE: AMFI METHODOLOGY OF TOP 100 FUNDS ON
WWW.WEALTH.ECONOMICTIMES.COM
The fund categories are: market conditions.
loans and deposits

LOANS & DEPOSITS

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

Interest rate (%) What `10,000
HOME LOAN RATES
TENURE: 1 YEAR compounded qtrly will grow to With effect from October 2019, all banks have made the transition to
IndusInd Bank 7.50 10,771 external benchmarks for pricing new home loans. Most banks have
Bandhan Bank 7.25 10,745
picked the RBI repo rate as the external benchmark.
YES Bank 7.25 10,745
DCB Bank 7.15 10,734 REPO RATE: 6.50%
J & K Bank 7.10 10,729 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
DCB Bank 7.55 11,614 Bank of Baroda 9.15 8.40 10.60 8.40 10.60 14 Feb 2023
IDFC First Bank 7.50 11,602 HDFC Bank -- 8.50 9.40 8.50 9.40 Not Given
IndusInd Bank 7.50 11,602
Indian Bank 9.20 8.50 9.90 8.50 9.90 14 June 2023
RBL Bank 7.50 11,602
Punjab National Bank 9.25 8.50 10.10 8.50 10.10 9 Feb 2023
YES Bank 7.25 11,545
IndusInd Bank -- 8.50 10.55 8.50 10.55 Not Given
TENURE: 3 YEARS
Bank of India 9.25 8.50 10.60 8.50 10.75 1 Aug 2023
DCB Bank 7.60 12,534
Bandhan Bank 7.25 12,405
IDBI Bank 9.10 8.55 10.75 8.65 12.25 12 Feb 2023
Bank of Baroda 7.25 12,405 Union Bank of India 9.30 8.55 10.80 8.55 10.80 11 Aug 2023
IDFC First Bank 7.25 12,405 Bank of Maharashtra 9.30 8.60 10.30 8.80 10.80 8 June 2023
IndusInd Bank 7.25 12,405 SBI Term Loan 8.75+CRP 8.70 9.65 8.70 9.65 1 July 2023
TENURE: 5 YEARS Kotak Mahindra Bank -- 8.75 9.35 8.80 9.60 Not Given
DCB Bank 7.40 14,428 Karnataka Bank -- 8.75 10.43 8.75 10.43 1 Aug 2023
IndusInd Bank 7.25 14,323 Federal Bank -- 8.80 10.25 10.20 10.30 Not Given
YES Bank 7.25 14,323
Indian Overseas Bank 9.35 8.85 9.55 8.85 9.55 8 Feb 2023
ICICI Bank 7.00 14,148
UCO Bank 9.30 8.85 10.40 8.85 10.40 15 Mar 2023
IDFC First Bank 7.00 14,148
Canara Bank 9.25 8.85 11.20 8.90 11.25 12 July 2023
Punjab & Sind Bank 8.54 8.95 9.95 8.95 9.95 9 Feb 2023
Top five senior citizen bank FDs J & K Bank 9.10 9.10 9.50 9.10 9.50 10 May 2023
Interest rate (%) What `10,000 Bandhan Bank -- 9.15 13.32 9.15 13.32 Not Given
TENURE: 1 YEAR compounded qtrly will grow to
IndusInd Bank 8.25 10,851 Karur Vysya Bank 9.60 9.23 12.13 9.23 12.13 10 Feb 2023
Bandhan Bank 7.75 10,798 ICICI Bank -- 9.25 9.90 9.40 10.05 Not Given
YES Bank 7.75 10,798 Dhanlaxmi Bank 8.50 9.35 10.00 9.85 10.50 25 Feb 2023
DCB Bank 7.65 10,787 DCB Bank 9.75 9.75 9.95 9.75 9.95 13 Feb 2023
Kotak Mahindra Bank 7.60 10,782
TENURE: 2 YEARS
Your EMI for a loan of `1 lakh
DCB Bank 8.05 11,728 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
RBL Bank 8.00 11,717
@ 7% 1,980 1,161 899 775 707
YES Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.10 12,720
@ 9% 2,076 1,267 1,014 900 839
@ 10% 2,125 1,322 1,075 965 909
YES Bank 8.00 12,682
Bank of Baroda 7.75 12,589 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
YES Bank 8.00 14,859 Sukanya Samriddhi Yojana 8.00 250 `1.5 lakh p.a. One account per girl child 80C
DCB Bank 7.90 14,787
Axis Bank 7.75 14,678 Senior Citizens' Savings Scheme 8.20 1,000 `30 lakh 5-year tenure, minimum age 60 yrs 80C
RBL Bank 7.50 14,499
Public Provident Fund 7.10 500 `1.5 lakh p.a. 15-year tenure, tax-free returns 80C
Kisan Vikas Patra 7.50 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.70 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 6.9-7.50 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.40 14,428
IndusInd Bank 7.25 14,323 Single `9 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
YES Bank 7.25 14,323 7.40 1,000
Scheme
Joint `15 lakh 5-year tenure, monthly returns Nil
RBL Bank 7.00 14,148 Recurring deposits 6.70 100 No limit 5-year tenure Nil
Savings account 4.00 500 No limit `10,000 interest tax-free Nil

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 12 October 2023 #Benefit available only for 5-year deposit
market watch
ALTERNATIVE INVESTMENT
RETURNS MONITOR
The scope and attractiveness of alternative investments is increasing. Here’s a weekly tracker of returns from such investments. But don’t
compare these with returns from traditional investments since the proportion and purpose of alternative investments is vastly different.
Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
50,552 57,911 57,104 69,699 887.63 886.12 87.27 83.49
12 OCT 2022 12 OCT 2023 12 OCT 2022 12 OCT 2023 12 OCT 2022 12 OCT 2023 12 OCT 2022 11 OCT 2023
PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER
CHANGE
X 1 WEEK 2.81% 1 WEEK 3.71% 1 WEEK 2.56% 1 WEEK 1.43%
X 1 YEAR 14.56% 1 YEAR 22.06% 1 YEAR -0.17% 1 YEAR -4.33%
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)
IL&FS Transportation 5.75 26.93 89.77 0.64 148.46 189.15 Sulabha Enggineers 5.75 -14.31 43.39 6.71 770.07 57.79
Diligent Media Corp 5.37 25.17 75.49 2.89 686.62 63.20 Sarveshwar Foods 5 -1.96 -1.77 2.42 760.99 489.40
Kaushalya Infrastructure 8.73 2.95 67.88 1.07 599.14 30.23 Kanani Industries 8.64 -5.47 5.88 1.25 715.80 85.45
DCM Financial Services 7.28 45.89 65.08 0.40 544.04 16.11 Diligent Media Corp 5.37 25.17 75.49 2.89 686.62 63.20
Comfort Intech 8.82 22.16 63.33 29.09 319.30 282.15 Kaushalya Infra 8.73 2.95 67.88 1.07 599.14 30.23
Computer Point 5.74 -9.18 62.61 0.67 165.10 17.22 Pressure Sensitive 7.48 3.60 3.03 24.48 564.19 111
Premier 3.48 4.19 51.30 0.15 88.05 10.57 Kridhan Infra 2.67 -8.56 15.09 0.48 562.18 25.31
USG Tech Solutions 7.95 1.92 50 0.26 117.63 31.33 DCM Financial Services 7.28 45.89 65.08 0.4 544.04 16.11
Confidence Finance 9.80 10.11 46.71 0.20 110.99 10.05 Akshar Spintex 6.52 4.32 -9.19 0.33 370.38 163
Cranes Softwares 5.84 -9.18 45.64 2.77 127.70 68.77 Comfort Intech 8.82 22.16 63.33 29.09 319.30 282.15
Top price losers Top volume losers

Toyam Sports 5.96 -9.15 -32.88 24 37.2 253.9 KBC Global 2.64 5.6 -8.33 3.95 -88.72 162.36
Future Lifestyle Fashions 3.15 5.7 -31.22 1.06 50.8 63.55 GG Engineering 1.22 -4.69 5.17 66.19 -87.47 107.3
Diligent Industries 7.32 -9.41 -27.67 1.89 95.16 83.74 GCM Securities 1.34 0 -6.29 2.84 -86.11 25.46
Triveni Enterprises 2.11 -10.21 -23.83 2.63 136.69 12.07 Colorchips New Media 4.24 -0.47 5.47 2.44 -83.88 36.06
ACI Infocom 1.22 -1.61 -21.29 2.59 -62.84 13.48 Tilak Ventures 4.6 -3.56 -2.95 5.71 -81.52 102.4
GTL 8.08 -1.94 -19.76 1.74 -69.86 127.1 Prismx Global Ventures 1.78 9.2 -6.32 4.36 -80.84 78.11
Arshiya 4.21 -0.24 -19.19 1.09 -30.15 110.93 Kenvi Jewels 8.29 -2.24 -9.1 3.15 -80.83 104.79
Shree Ganesh Biotech 0.77 -3.75 -18.95 72.98 109.61 30.69 Excel Realty N Infra 0.4 0 0 5.71 -79.29 56.43
BLS Infotech 2.15 -5.7 -17.94 20.93 29.71 149.73 Bhandari Hosiery 6 -1.96 -10.58 1.25 -77.72 98.04
RO Jewels 3.88 -9.56 -16.74 4.91 1.97 19.57 Future Consumer 0.83 5.06 -9.78 7.06 -76.44 164.92
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 12 OCT 2023. SOURCE: ETIG DATABASE AND BLOOMBERG.
mutual funds
MOTILAL OSWAL LARGE & MID CAP
Outperformance in past year

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals
of the fund, its portfolio and performance to help you make an informed investment decision.
HOW THE FUND HAS PERFORMED Top 5 sectors in portfolio (%)
Point-to-point returns (%)

BASIC Financials 26.96
FUND BENCHMARK CATEGORY AVERAGE FACTS Healthcare 18.83
29.09 Services 12.38

28.40 DATE OF LAUNCH
22.48 24.09 17 OCTOBER 2019 Capital goods 9.11
18.50 CATEGORY
15.46 6.64
EQUITY Automobiles
TYPE
LARGE & MIDCAP The fund portfolio has high exposure to
financials and health sectors.
AUM*
1-YEAR 3-YEAR `2,338 crore
AS ON 10 OCTOBER 2023 Top 5 stocks in portfolio (%)
BENCHMARK
The fund has sharply outperformed the NIFTY LARGE MIDCAP 250 Trent
index and its peers over the past year. 6.38
TOTAL RETURN INDEX
Cholamandalam
Investment and 5.50
WHAT IT
Finance
The Federal 4.92
Rolling returns (%)
COSTS
FUND BENCHMARK Bank
Global Health 4.88

26.03 NAV** 4.36
1-YEAR Infosys
GROWTH OPTION
15.55 `21.15 The fund runs a compact portfolio with
IDCW** large positions in top bets.
`18.57
23.74
MINIMUM INVESTMENT
3-YEAR
`500
13.81
MINIMUM SIP AMOUNT
AS ON 10 OCTOBER 2023
`500 Recent portfolio changes
The fund has started its journey EXPENSE RATIO # (%)
New entrants
on a strong note. 2.02
EXIT LOAD Glenmark Pharmaceuticals, HDFC Bank,
Note: Different benchmark (S&P BSE Large Mid Cap TRI) is used due to non availability of stated
1% for redemption Interglobe Aviation, Netweb Technologies
benchmark data. Returns are rolled daily over past decade for relevant time frames.
within 15 days India, Timken India (July). Concord Biotech,
Gland Pharma, SBFC Finance (Aug). Jupiter
*AS ON 30 SEPT 2023 Life Line Hospitals, NTPC (Sept).
**AS ON 10 OCT 2023
#AS ON 31 AUG 2023
WHERE THE FUND INVESTS Complete exits

Ashok Leyland, Gujarat Gas, Housing
Development Finance Corporation, Kajaria
Portfolio asset Ceramics, United Breweries (July). State Bank
Fund
allocation of India (Aug). Ultratech Cement (Sept).
style box
Growth Blend Value
99.81 How risky is it?

Large
Equity
Fund Category Index
CAPITALISATION
Large cap 43.91

35.13 Standard Deviation 14.71 14.25 13.94
Medium
Mid cap
Small cap 20.96
Sharpe Ratio 1.56 1.35 1.26
Cash 0.19 FUND
Small
Mean Return 27.34 23.60 21.93
INVESTMENT STYLE
MANAGER BASED ON 3-YEAR PERFORMANCE.
The fund currently runs a tilt ADITYA KHEMANI/ The fund’s risk-return profile is
towards mid and small caps. AS ON 30 SEPT 2023
RAKESH SHETTY among the best in its category.
4 YEARS / 10 MONTHS
Source: Value Research
Should This fund was launched soon after the

creation of a separate category for
average portfolio market cap Is much
lower than others. Further, it runs a con-
leaders. The fund has performed reason-
ably well in its short running time so far,
You large- and mid-cap funds. It takes a more
aggressive stance than its peers. Apart
centrated portfolio of around 35 stocks
with large positions in its top bets. The
clocking sharp outperformance over the
past year. Continued strong showing in
Buy from its large- and mid-cap focus, it runs
a sizeable exposure to small caps. Its
emphasis is on high growth and low
volatility, with a preference for industry
the coming years will establish a good
track record for this young fund.
pick of the week

Indian Oil: Growth despite green shift

Rising energy demand, capacity expansion and consolidation in global refining market will drive growth.
T
he diversified energy player holds a leadership posi- existing refineries, and with the ongoing expansion, the group Fundamentals
tion in India’s downstream oil market and has a pan- refining capacity is set to increase to 107.4 MMTPA (including CONSENSUS
ACTUAL
India presence with an extensive customer base. It is subsidiary CPCL’s capacity) by 2030. With the ongoing consoli- ESTIMATE
expected to report a consolidated net profit of `4,590 dation in the global refining sector, these expansions offer sig- 2021-22 2022-23 2023-24 2024-25
crore in the September 2023 quarter, according to the Reuters- nificant value to Indian Oil. It is also equipping its refineries to Revenue (` cr) 5,89,335.74 8,41,755.91 7,74,602.45 7,84,829.99
Refinitiv estimates. facilitate the changes in refinery product demand patterns. EBITDA (` cr) 47,531.56 39,035.66 48,160.38 44,674.68
The profitability will be supported by higher marketing It continues to expand its network of oil and gas pipelines, Net profit (` cr) 24,955.15 10,614.52 25,647.25 21,194.38
margins relative to the corresponding period of the previous marketing and distribution infrastructure to cater to the grow-
EPS (`) 18.12 7.71 17.13 15.12
year. In the September 2022 quarter, ing demand and aims at achieving
the company had reported a net loss
of `991.6 crore. However, the profit- Analysts’ views
cost efficiencies. The integration
with the upstream business is prov-
Valuations PBV PE
DIVIDEND
YIELD (%)
ability is expected to moderate on a ing to be a valuable strategy for sus- Indian Oil Corporation 0.91 5.20 3.24
3 Reliance Industries 2.22 24.54 0.38
q-o-q basis despite a buoyant refining
Sell 20 taining profitability as it improves
segment and prospects of higher in- Buy supply chain efficiency and diversi- Oil & Natural Gas Corp 0.83 6.16 6.10
ventory gains. The jump in crude oil fies revenue streams. Bharat Petroleum Corp 1.41 4.00 1.13
prices and continuing freeze on re- Also, investments across the natu- Hindustan Petroleum Corp 1.14 4.39 0.00
tail prices is expected to weaken the 11 ral gas value chain, petrochemical
marketing segment’s performance.
Most analysts are confident about
Hold
integration, biofuel integration and
expansion of renewable portfolio
Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
the company’s growth prospects (CBG, hydrogen and EV charging)
9 Oct 2023 Prabhudas Lilladher Hold 97
as it is expected to benefit from the will provide earnings stability
9 Oct 2023 Elara Capital Accumulate 100
exponential growth in India’s energy and sustain long-term growth. The
demand. Rising population, urbani- company has given 36% returns 7 Oct 2023 Motilal Oswal Buy 113
Despite a gradual shift to green energy, analysts
sation, industrialisation and lower believe conventional sources will remain crucial in compared to 16.3% returns by BSE 6 Oct 2023 JM Financial Hold 85
per capita energy consumption com- developing countries for the next couple of decades. Sensex in the past year. Its 12-month 6 Oct 2023 IIFL Add 110
pared to the world average are some forward EV/EBITDA is at over 3%
of the factors that are driving the energy demand. discount to the oil and gas industry median. Relative performance 136.8
The company’s 2023 annual report says that India’s energy Selection methodology: We pick the stock that has shown
100 MARKET PRICE: `90.3
demand is poised to grow three times faster than the rest of the the maximum increase in ‘consensus analyst rating’ during
world and will account for almost a quarter of the rise in global the past month. The consensus rating is arrived at by averag-
energy demand by 2040. Despite a gradual shift towards lowing all analyst recommendations after attributing weights to
carbon and renewable energy forms, it is expected that conven- each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and
SENSEX
tional sources (oil and gas) will continue to play a key role in 1 for strong sell). An improvement in consensus analyst rating 116.2
sustaining the growth of developing countries for at least the indicates that the analysts are getting bullish on the stock. 107.8
next couple of decades. Only stocks with at least 10 analysts covering them are consid-
11 OCT 2022 INDIAN OIL CORPORATION ET OIL & GAS 12 OCT 2023
Indian Oil has taken strategic steps to exploit opportuni- ered. You can see similar consensus analyst rating changes
IOC is compared with ET Oil and Gas and Sensex. Stock price and index
ties in the energy sector. It is augmenting the capacities of its during the past week in ETW 50 table. —Sameer Bhardwaj 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 12 OCTOBER
STOCK ADVICE COMMENT

HOUSE PRICE* (`) PRICE (`) UPSIDE (%)
Initiate with ‘buy’ due to opening and ramp-up of new parks, cost benefits due to in-house manufacturing of
Wonderla Holidays Ambit Capital Buy 791 1,250 58.0 rides, superior brand recall, likely jump in non-ticket revenue mix and inexpensive valuations.
Maintain ‘buy’ due to strong pre-sales in September quarter, robust cash-flow generation, acceleration of
Sobha HDFC Securities Buy 707 1,024 44.8 new launches, brand pull, absence of major capex, likely deleveraging and supportive valuations.
Initiate with ‘buy’ due to likely jump in revenue and profitability, supported by expansion plans, regulatory
Antique Stock
Gravita India Buy 925 1,250 35.1 tailwinds, steady customer base, leadership position in India in lead recycling, and sustainable margins im-
Broking provement.
Recommend ‘buy’ due to healthy growth prospects in auto OEM export space, healthy margin profile, capital
Mayur Uniquoters ICICI Direct Buy 538 700 30.1 efficient business model with strong RoIC, healthy balance sheet and inexpensive valuations.
Initiate with ‘buy’ as it is uniquely positioned to tap into the opportunities in learning and development
NIIT Learning Systems Sharekhan Buy 428 550 28.5 market. Also, exceptional cash-flow generation, increasing number of marquee clients, strong return profile
and attractive valuation are key positives.
Initiate with ‘buy’ due to its market leadership in the ports segment, strategic acquisitions, operating lever-
Adani Ports & SEZ Motilal Oswal Buy 790 1,010 27.8 age benefits, expectations of strong cash-flow generation and focus on value-added areas such as logistics.
SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) DOWNSIDE (%)
Reiterate ‘sell’ due to falling market share, weak growth prospects, depressed margins due to inflated
SAIL Kotak Securities Sell 94 50 -46.8 fixed costs and rising coking coal prices, likely jump in leverage due to capex plans and high valuations.
QA
your queries
&
I had bought a flat in 1992 and want to I want to make a will, bequeathing my
sell it now. To calculate the indexed cost assets to my wife when I die. After her
of acquisition, the cost inflation index death, the assets will pass on to our two
(CII) is available only from 2001-2. How children. Is it mandatory for my children to
do I get the index for earlier years? get a probate? Will naming an executor
make it easier for my heirs?
Many taxpayers were facing difficul-

If a death wish is attached with the death certifi-
ty in computing capital gains using 1
cate of the testator, it assumes the stature of a
April 1981 as base due to the non- Our panel of experts will answer will (testamentary document). After your death,
availability of relevant information.
The Finance Act, 2017, shifted the questions related to any aspect of your wife will become the rightful owner as per
your will. Her assets, including the ones be-
base year to 2001 for computing the personal finance. If you have a queathed by you, will become her self-owned
fair market value (FMV) of assets. At
present, the CII for 2001 starts at 100. query, mail it to us right away. assets. Hence, she has the option to sell assets or
gift these. She can also will these to anyone, not
The cost of acquisition of an asset ac-
necessarily her children. Just stating that ‘after
quired before 1 April 2001 shall be
taken as the FMV on 1 April 2001, or
QUESTION OF THE WEEK her death, the assets will pass on to our two chil-
dren’ will not be legally valid. Such statements
the actual cost as chosen by the tax-
can get categorised under the interpretation of
payer. The cost of improvement shall
conditional wills, which could be treated as void
include only those capital expenses
ab initio (void from the beginning).
that are incurred after 1 April 2001. I am 33 years old and have a net worth of `1.5 crore, Probate is the process of validating the genu-
Shifting the base year from 1981 to
which is mostly in cash. I have a two-year-old ineness of a will in terms of it being the last will
2001 has helped capture the inflated
cost of property much better, reduc- daughter. I am planning to buy a flat in Bengaluru, signed by the testator, and also as a valid docu-
ing capital gains and tax which will cost `1 crore. I’ll make an upfront payment for wealth distribution not made under co-
ercion, duress or by an incapacitated testator. A
burden for the taxpayer. ment of `35 lakh and take a loan of `65 lakh. I do not
competent court of jurisdiction determines the
have any other financial liability. Please advise on authenticity of will, and after being satisfied,
how to invest and get better returns from my funds. endorses it through a probate order. As per Sec-
Preeti Khurana
Director of Advocacy and tion 57, read with Section 213 of the Indian Suc-
Regulations, ClearTax cession Act, 1925, no right as executor or lega-
tee can be established in any court, unless a
Your financial plan should first ascertain that you are ad- court of competent jurisdiction in India has
equately insured. Make sure you have a pure term insur- granted probate of will, under which the right is
ance policy with a cover of 10-15 times your annual in- claimed, or has granted letters of ad-
I am 45 years old and have a monthly come, and health insurance of at least `1 crore, with a ministration with the will. A pro-
salary of about `4.5 lakh after tax. I base health cover of `5 lakh and a super top-up cover of bate is mandatory if the testa-
have `6.5 crore in equity and `1.85 crore `95 lakh. You should also have an emergency fund large tor bequeaths assets in
in my PF account. I have a self-owned
enough to meet your monthly expenses for 6-12 months. Mumbai, Chennai or Kolkata.
house and no loans. My current monthly
expenses are about `1 lakh. I want to You can park these funds in fixed deposits of banks like
retire at 50. How should I proceed? Suryoday Bank, Unity Bank, Utkarsh Bank, Ujjivan Bank
and AU Bank, offering yields of 8% and above, . Rajat Datta
Founder, Inheritance Needs Services
As for your investment portfolio, you should start in-
Given your current investments, you
vesting `1.5 lakh per financial year in the PPF, which of-
should have at least `10 crore at the
fers the highest form of capital and income protection
time of retirement. Assuming you re- I want to invest `1 lakh each for my 20-year-
available. Your PPF investment would act as a low-risk
main invested in instruments giving old and 13-year-old children in small- and
fixed income component of your portfolio, with tax ben-
10% annual return for the rest of your micro-cap stocks for 15 years. Please sug-
efits under Section 80C.
life, you will be able to get an income of gest stocks that I can invest in. What are the
You should try to create a corpus of at least `2 crore factors I should consider before investing?
`42 lakh per year, or `3.5 lakh per
for your daughter’s higher education. The course fees of
month, after retirement, rising 6% year-
some top B-schools in India are around `30 lakh. Even a
on-year to keep up with inflation.
10% inflation rate would increase the fees to `2 crore in If you are not new to stocks, you would know
The bigger takeaway is that if your
20 years. Distribute your investible surplus equally that the chances of buying and holding a small-
current annual expenses are `12 lakh
across index funds, flexi-cap funds and aggressive hy- or micro-cap stock and letting it grow may not
after inflation adjustment, and you can
brid funds through SIPs of 12-18 months. yield the desired results. In the NSE, there are
keep your costs constant, then you’re
While your present investible surplus would be suffi- about 200 companies with a market cap of
well past the 25 times income guidance
cient to create a corpus for your daughter’s higher educa- over `25,000 crore, and around 2,000 compa-
(`3 crore) cited for FIRE (financial inde-
tion, make sure that you invest your incremental month- nies with a market cap of less than `5,000
pendence, retire early). You have 75
ly surplus in equity funds (listed here) in the same pro- crore. This means that many small and micro
times the suggested income, which
portion. This should create an adequate corpus for your caps don’t grow large enough for wealth build-
means you can retire right away, if you
post-retirement life and other crucial financial goals. ing. Several small and micro caps fall by the
want. For best returns and safety, split
You can consider the direct plans of PGIM India Flexi wayside and even get delisted. Instead of tak-
your holdings into short-, medium-, and
Cap Fund and Parag Parikh Flexi Cap Fund for the flexi- ing this risk, start with large or emerging large
long-term instruments on retirement.
cap category; ICICI Prudential S&P BSE Sensex Index companies and review the stocks periodically.
Make sure you have adequate health
Fund and HDFC Index Fund S&P BSE Sensex Plan for the You can add small caps to this core later. If you
insurance for yourself and your family.
large-cap index category; and Kotak Equity still want to invest in small caps, opt for mutual
This is also the right time to carry out
Hybrid Fund and ICICI Prudential Equi- funds via SIPs. This is also not the
estate planning, as it will help you allo-
ty and Debt Fund for the aggressive right time to invest via a lump sum.
cate funds for post-retirement
hybrid category. Route your SIPs
goals and build a legacy, if
through the savings accounts of
you are so inclined.
above-mentioned banks to earn Vidya Bala
higher returns on your account Co-founder, PrimeInvestor.in
Adhil Shetty balance.
CEO, BankBazaar
Naveen Kukreja
Co-founder and CEO, Paisabazaar Have a question for the experts?
travel
State Secrets: Nagaland

If, instead of foreign holidays, you prefer to travel within India, here’s a series to help you plan the best
vacations in each of the 28 states and 8 Union Territories. We highlight tourist attractions, culinary choices,
modes of travel, and the costs involved. In the 18th part of the series, Riju Mehta takes you to Nagaland.
CAPITAL
KOHIMA
WHERE TO STAY…
BEST TIME TO VISIT Government circuit houses are a good,
OCTOBER-
cost-effective stay option in the state,
MARCH
with other affordable accommodation
like homestays, guesthouses and hostels
available in the range of `500-3,000 per
night. While capital Kohima also has star
hotels and resorts in the higher price
range, smaller destinations like Tuensang,
Mokokchung and Khonoma offer good op-
tions in the range of `1,000-3,000 a night.
COST: `21,000 for 7 nights

(`500-15,000 per night)
WHAT TO EAT…
The Naga cuisine includes a wide variety
of meat (pork, beef, chicken, fish, dog)
with vegetables, bamboo shoots, and rice
as staple. The flavour comes from various
chilli sauces, garlic and ginger. Some of
the popular dishes include pork curry,
fish in bamboo, samathu (spicy dish made
This northeastern hill state abounds in with smoked pork, fermented soybean),
natural beauty, flora and fauna. Home
to nearly 17 tribes, each with its own
aikibeye (dish made with colocasia roots,
traditions and dialects, the state show- mustard leaves), akini chokibo (dish made
cases this tribal diversity at the annual HOW TO The fastest way to reach Nagaland is by air and the Delhi-Dimapur with perilla seeds, snails), bushmeat (dog
Hornbill festival held in December. You REACH FROM flight with one stop takes upwards of five hours. The cheapest flight meat), hinkejvu (dish made with colocasia,
can easily spend a week here, feasting
DELHI… is for `9,989 on Skyscanner, but the flight time is over 26 hours. A cabbage, mustard leaves, french beans),
on its beautiful valleys, waterfalls, lakes better option is the flight that costs `10,188 and takes five hours and galho (Naga khichdi made with rice and
and rivers, besides the ancient ruins, 50 minutes. You can also take a train from Delhi to Dimapur, which
meat or vegetables), amrusu (dish made
handicrafts and textiles. Simple but will take between 32 and 48 hours. The sleeper class fare starts at
spicy non-vegetarian food is another `790 and 2A class fare from `3,050 on Ixigo, for a November journey. with rice, chicken, bamboo shoots), zutho
attraction in the state that is famous for (rice beer), and black sticky rice pudding.
its bhoot jolokia, one of the hottest chil-
lies in the world. You will also need an Cost by air Cost by train COST: `600-1,000 per person, per day
Inner Line Permit to visit Nagaland and
`10,188 (Delhi- Upwards of `3,050 onwards
can apply online at https://ilp.nagaland. (Class 2A) (47 hrs, 55 mts)
Dimapur, 5 hrs 50 mts)
gov.in/services/ilp/apply.
*One way, per person. Flight cost on Skyscanner. Train cost on Ixigo
WHAT TO DO…
WATERFALLS, LAKES & RIVERS

SUGGESTED ITINERARY Waterfalls: Phek waterfall (Phek), Triple
Diezephe village, known DAY 6: WOKHA
for its bamboo handicrafts, Reach Wokha in two hours, falls (Dimapur).
Start and the Rangapahar home to one of the largest Lakes: Shilloi, Dzudu, Totsu Wozhu lakes
wildlife sanctuary. For tribes, Lothas. Visit Doyang (Phek).
clothes shopping, go to the river and hydroelectric
Hongkong market. project, Mount Tiyi and Rivers: Doyang & Dikhu rivers.
Totsu cliff. Also, check out
NAGALAND DAY 7 DAY 3-5: KOHIMA the lighthouse here. NATIONAL PARKS & SANCTUARIES
Reach the state capital in
DIMAPUR Parks: Ntangki National Park (Peren)
two hours. Visit the Kohima DAY 7:
War Cemetery and Kohima MOKOKCHUNG-TUENSANG Sanctuaries: Fakim (Kiphire), Rangapahar
DAY 6 Cathedral. To check out Arrive in three hours (Dimapur), Khonoma Nature Conservation
the traditional Naga way and check out the and Tragopan sanctuary (Kohima),
DAY 1-2: of life, visit the Tuophema, beautiful villages of Singphan (Mon), Pulie Badze (Kohima).
DIMAPUR Kisama, Naga and Khonoma Ungma, Longkhum and
Fly into the largest heritage villages. Trek Mopungchuket, besides OTHER ATTRACTIONS
DAY 1-2 city in Nagaland to the scenic Japfu peak visiting the Mongzu Ki
and visit the Triple and take in the stunning caves. Leave for Tuengsang, Kachari ruins (Dimapur); Japfu peak
DAY 3-5 waterfalls, as well (Kohima); Kohima War Cemetery (Kohima);
Dzukou valley. Also visit the where you can visit the
as Kachari ruins, the Ntangki National Park and beautiful Noklak, Longtrok Nagaland State Museum (Kohima);
famed monoliths that are Pulie Badze sanctuary. For and Chilise villages. Mount Tiyi (Wokha); Tuophema village
the remains of Rajbari shopping and food, stroll (Kohima); Hongkong market (Dimapur);
Fort of the Dimasa Kachari through the Naga Bazaar DAY 8:
kingdom. Also check out FLY BACK TO DELHI Langpangkong caves (Mokokchung).
and Tibetan market.
tax optimiser
Rent exempt even without HRA

Sudhir Kaushik of TaxSpanner.com tells readers how they can
optimise their tax by rejigging their income and investments.
D
elhi-based training pro-
fessional Puneet Grover
pays a low tax, but it is pos-
sible to reduce it to zero.
INCOME
TaxSpanner estimates FROM EMPLOYER
that Grover’s net taxable income can
be reduced to less than `5 lakh if his
pay structure includes tax free perks
and he claims exemption for rent. This
will make him eligible for full tax re-
bate under Section 87A. INCOME HEAD CURRENT SUGGESTED
Grover works for a startup that
trains people in stock trading. “The
Salary 8,40,000 7,56,000 Reduce this taxable
pay is not structured. I just get a lump portion of the pay
sum `70,000 per month,” he says. House rent allowance 0 0 package.
Though there is no HRA component
in his salary, he can still claim exemp- Special allowance 0 0 Reimbursement
tion for the rent he pays. Under Section of travel expenses
80GG, one can claim exemption for Medical allowance 0 0 is tax-free up to a
reasonable limit.
rent of up to `5,000 a month, provided Conveyance reimbursement 0 36,000
one does not own a property in the These perks are
same city. This can reduce Grover’s Phone reimbursement 0 12,000 tax-free subject to
net taxable income by `60,000. actual usage and
Next, his company should consider Books and periodicals 0 12,000 reasonable limits.
The employee
breaking up the salary into different
Meal coupons 0 24,000 has to submit
components. Reimbursement of travel, bills to claim
phone and newspaper expenses, for Employer's contribution to Provident Fund 0 0 reimbursement.
instance, are tax-free up to reasonable
limits. If Grover gets fuel and travel Contribution to NPS under Sec 80CCD(2) 0 0
reimbursements of `36,000 (`3,000 a
month), telephone allowance of `12,000
TOTAL 8,40,000 8,40,000
(`1,000 a month), and books and news-
paper allowance of `12,000 (`1,000 a
Terminate fixed
month), his taxable income will come
down by `60,000. Meal coupons of
INCOME FROM OTHER SOURCES deposits to reduce
taxable income. Put
`2,000 per month can shave off another in the PPF instead.
Interest income 25,000 0
`24,000 from the taxable income.
While these steps will reduce his Capital gains 1,40,000 1,00,000 Manage equity
investments so that
taxable income, Grover must liquidate long-term capital
Rental income 0 0
his fixed deposits, which add to his in- gains are within the
come and put him back in the tax net. TOTAL 1,65,000 1,00,000 tax-free threshold
He also needs to manage his equity of `1 lakh.
All figures are in `
investments to avoid LTCG tax.
Denotes suggestion to increase Denotes suggestion to reduce
Tax-saving investments
INVESTMENT CURRENT SUGGESTED
OPTION (`) (`)
PPF 30,000 30,000
ELSS funds 1,20,000 1,20,000
Life insurance 10,000 10,000

Puneet Grover’s tax
TAX ON TAX ON TOTAL TAX SAVED WRITE
NPS under Sec 80CCD(1b) 50,000 50,000 TAX ON OTHER CAPITAL TO US
TOTAL ADMISSIBLE 2,00,000 2,00,000
SALARY INCOME
CURRENT
GAINS
`40,608 FOR HELP
PER YEAR Paying too much
Other deductions `28,808 7,800 4,000 tax? Write to us

at etwealth@
EXEMPTION OR CURRENT SUGGESTED

`40,608 TAX RATIO timesgroup.com with
‘Optimise my tax’
DEDUCTION (`) (`) (Total tax as % of annual income)
as the subject. Our
Give rent to SUGGESTED EXISTING SUGGESTED experts will tell you
HRA exemption 0 60,000 parents and how to reduce your
claim HRA 0 0 0 tax by rejigging your
Medical insurance 14,000 14,000 deduction of 4% 0% pay and investments.
`5,000 per 0
TOTAL 14,000 74,000 month.
mutual funds
Hike equity exposure

PORTFOLIO
DOCTOR
for long-term goal

Not many
investors
know
whether
Nataraj Pillai is saving for his retirement. Here’s what the doctor has advised him:
1 2
they have
PORTFOLIO invested in
GOALS
EMERGENCY FUND: Immediate RETIREMENT INCOME: 15 years

CHECK-UP CURRENT EXPENSES: `1 lakh per month CURRENT NEED: `2.5 crore (`1 lakh a month) the right
Has been investing in FUTURE COST: `6 lakh FUTURE COST: `6.9 crore funds and if their
equity and hybrid
funds for 7-8 years.
fund portfolio is on
AMOUNT EXISTING RECOMMENDED ACTION NEW
INVESTMENTS track. The Portfolio
Despite early start INVESTED (`) SIP (`) SIP (`)
and high investment, Shift to a short-term debt fund to ensure greater liquidity Doctor assesses the
corpus size is modest. 1 Fixed deposits 6,00,000 0 and avoid yearly tax. 0
health of the fund
Tends to stop SIPs Aditya Birla SL Frontline Restart SIPs of `8,000 in this stable large-cap fund.
3,15,261 0 Increase amount by 10% every year. 8,000 portfolio, examines the
after 2-3 years. Must Equity
continue for longer Axis Mid Cap 2,51,782
This mid-cap fund has slipped. Shift corpus and SIPs to
7,000 Parag Parikh Flexicap to streamline portfolio. 0 schemes and their
periods.
Continue SIPs in this outperforming small-cap fund.
suitability with regard to
Exposure to equities Axis Small Cap 1,95,764 5,000 Increase by 10% every year. 5,000
less than 30%. Needs
the goals and, if
Restart SIPs of `10,000 in this outstanding aggressive
to increase this for HDFC Balanced Advantage 2,48,923 0 hybrid fund. Increase amount by 10% every year.
10,000 required, recommends
long-term goal. Fund is good but you need to streamline portfolio. Move corrective measures. The
HSBC Value 16,586 0 corpus to Parag Parikh Flexicap.
0
Portfolio has small-
Restart SIPs of `5,000 in this outstanding small-cap fund.
advice given is based on
and mid-cap skew. Be Nippon India Small Cap 40,151 0 Increase amount by 10% every year. 5,000
ready for volatility. the performance of the
Increase SIP amount to `8,000 in this outstanding flexi-cap
2 Parag Parikh Flexi Cap 1,63,625 5,000 fund. Increase amount by 10% every year. 8,000 funds, the risk profile of
Note from the investor as well as
the doctor SBI Flexicap 2,13,250
Continue SIPs in this outstanding flexi-cap fund with over-
0 seas exposure. 0
Increase SIPs by 10% his financial goals.
This ELSS fund has outperformed. Continue holding it for
every year to reach goal. SBI Long Term Equity 2,07,242 0 the long term. 0
Opt for maximum 75%
allocation to equity in
SBI Small Cap 2,03,501 0 Continue holding this stable small-cap fund. 0 Assumptions used
the NPS. NPS 7,91,995 20,000
Keep contributing to this low-cost scheme. Take maximum
20,000 in the calculations
exposure to equity funds.
Review investments and Reduce contribution to VPF because it exceeds the tax-free INFLATION
rebalance at least once Provident Fund 25,43,941 54,810 threshold of `2.5 lakh per year. 44,810 Education For all
in a year. expenses other goals
PPF 7,00,000 12,500 Keep contributing to this scheme to build a tax-free corpus. 12,500
Reduce risk when goal is
near so that you don’t TOTAL `64,92,021
,
`1,04,310 The goals can be reached using the mutual
funds marked in the same colour. `1,13,310 10% 7%
miss the target.
RETURNS
Equity funds Debt options
Not possible to reach `5 cr in 10 years 1

12% 8%
Aravind Kumar wants to amass `5 crore UNSPECIFIED PURPOSE PORTFOLIO
GOAL
in 10 years. Here’s what the doctor has 10 years CHECK-UP PORTFOLIOS

ANALYSED BY
TARGET AMOUNT: `5 crore
advised: Started investing in RAJ KHOSLA,
equity funds to save Managing Director
AMOUNT EXISTING tax 3-4 years ago.
FUND RECOMMENDED ACTION and Founder,
INVESTED (`) SIP (`) MyMoneyMantra
Goal is very ambitious
Increase SIPs to `5,000 in this stable small-cap fund. Hike by 10% and needs a big hike
SBI Small Cap 1,52,400 3,000 every year. in investments.
Franklin India Tax Shield 1,30,000 0 Hold this outstanding ELSS fund for the long term. Current investments
WRITE
Axis Focused 25 52,600 1,000 and SIPs will grow to TO US
Both funds have slipped. Stop SIPs and shift corpus to HDFC Midcap
Opportunities.
`60 lakh in 10 years. FOR HELP
Axis Long Term Equity 71,600 1,000
Reduce goal to `2.5 If you want your portfolio examined,
Continue SIPs in this outperforming ELSS fund. Hike by 10% every crore and defer by write to etwealth@timesgroup.com
Canara Robeco Equity Tax Saver 73,600 2,500 year. with “Portfolio Doctor” as the subject.
1 five years.
Increase SIPs to `5,000 in this outperforming flexi-cap fund and Mention the following information:
Parag Parikh Tax Saver 32,200 2,000 hike by 10% every year. SIPs will have to be  Names of the funds you hold.
This mid-cap fund is down. Shift SIPs and corpus to DSP Nifty Index increased to `25,000  Current value of the investment.
DSP Midcap 38,600 1,000 fund. Increase amount to `3,000 and hike by 10% every year. per month and hiked  If you have SIPs running in any
by 10% every year. of them.
Increase SIPs to `5,000 in this outperforming mid-cap fund and hike
HDFC Midcap Opportunities 12,700 3,000 by 10% every year.
 The financial goals for which you
Review investments invested.
Increase SIPs to `5,000 in this outperforming small-cap fund and and rebalance at least  How much you need for each
Nippon India Small Cap 28,900 3,000 hike by 10% every year. financial goal.
once in a year.  How far away is each goal.
TOTAL `5,92,600 `16,500
NG 3.7 PubDate: 16-10-2023Zone: ETWealthDelhi Edition: 1 Page: DETWDPBP User: satyam.shukla Time: 10-13-2023 16:57 Color:
your feedback & more...

Readers’ response, online and in print, to ET Wealth stories has been enlightening.
We pick some that add information and perspective to our articles from previous issues. lthDelhi Edition:
1 Page: DETWD
THE ECONOMIC
FP User: saurab
h.gupta3 Time: 10-06-2
023 17:59 Color:
TIMES
‘Smart ways to borrow’ was an incisive gotten the most important point of main-
and thought-provoking read. Anyone
who wants to go for a loan should follow
Borrowing to invest www.e twealt
h.co | Ahmed
abad, Benga luru,
Chenn ai, Hyder
abad, Kolkat a, Mumb
ai, New Delhi,
Pune | Volum
THE ART OF
REVIEWING
PORTFOLIOS
P8
e 13 No. 41
taining a record of one’s investments. I am
not tech savvy, but feel that listing one’s
not a good idea

| Octob er
9-15, 2023
| 24 pages
| `8
a few cardinal principles. They should investments in an Excel sheet is a good

do so only if it is necessary and prepare way of tracking them. One should record
a realistic cash-flow statement. They
should not opt for top-ups or extend the
The cover story ‘Smart ways to
borrow’ made for a useful read.
SMART the type of investment, amount, date,
nominee, broker’s mobile number, tenure,
repayment period. They should not go Saving is a function of income, and WAYS TO interest date, commission, financial year,
for additional borrowing, which could so is individual investment. I fully BORROW etc. I have been investing since 1984 and
force them into a debt trap, and should endorse ET Wealth’s consistent ob- Looking for a
loan? Here put down the amount I receive from each
are some things
to keep in
clear long-term loans at the earliest. servation that ‘borrowing to invest mind while doi
ng so. instrument. I hope she can encapsulate
P2
Tharcius S. Fernando is not a prudent strategy’. While what I have written to help those who are
borrowing for personal purposes, taken for a ride by financial institutions.
I agree with Dhirendra Kumar’s column it is imperative that we have trust- Jaya PoSaw
‘Are you a missing billionaire?’ that diver- worthy family and friends to guide
sification is necessary to manage risk. us so that we don’t pay more inter- ARE MULTI-
‘Are multi-cap funds for you?’ provides
CAP FUNDS
However, too much diversification can est than we are supposed to. THE RIGHT
CHOICE
ARE YOU
AMONG THE BET ON an in-depth analysis of the category and
FOR YOU? MISSING STOCKS
lead to average returns similar to those S. Ramakrishnasayee P6 BILLIONAIRES? WITH HIGH
OPERATING
its evolution over the past few years. It
P7
LEVERAGE
from fixed deposits. If one has core com- P10 sheds light on the critical differences
petence and knowledge about risk and between multi-cap and flexi-cap funds,
return of a certain asset class, he should In the article ‘High earners must focus on ing such good content. while explaining the importance of ‘true
invest in it, instead of diversifying for the wealth creation’, two points stand out very Darshan Godbole to label’ positioning. The expert insights
sake of doing so. Traders and promoters clearly. Rich people are those who create will help investors in making informed
who don’t diversify are an extreme ex- money by taking loans, and wealthy peo- I loved Uma Shashikant’s column on ‘The decisions while navigating the complex
ample not applicable to the salaried class. ple are those who create money through art of reviewing portfolios’. She has talked landscape of mutual fund investments.
Prashant D. Shivdas savings. Thank you ET Wealth for publish- about many facets of investing, but has for- Pradeep
HOUSING SALES SHOOT UP

Despite the increased new
supply, existing housing inventory
saw a 3% yearly decline across
the top seven cities, from 6.3 lakh
36% IN ONE YEAR units by the end of third quarter in

2022 to 6.1 lakh units by the end
of third quarter in 2023.
Due to the rising input costs
and significant sales growth, the
Over 1.2 lakh units have been sold in the average residential property
prices across the top seven cities
top seven cities in the third quarter of registered an 11% yearly growth
in the third quarter compared to
2023, as per a recent study by ANAROCK. the same period in 2022. At 18%,
Hyderabad witnessed the highest
The Indian residential property the corresponding period of
yearly average price growth,
segment created a new peak in 2022, a 24% annual increase. On
followed by Bengaluru with a
the third quarter of 2023, with the a quarterly basis, there was a MMR (Mumbai Metropolitan rise in housing sales, while Pune
14% annual rise. The prices rose
sale of 1,20,280 units in the top 13% jump, with 1,02,610 units Region) recorded the highest saw a massive 63% yearly jump,”
from `6,105 per sq ft in the third
seven cities, compared to 88,230 launched in the second quarter housing sales of 38,500 units, he said.
quarter of 2022 to around `6,800
units sold in the third quarter in these cities. The key cities followed by Pune with 22,880 The mid-range segment (`40-
per sq ft in the same period in
of 2022, an annual rise of 36%, contributing to new supply in the units,” said Anuj Puri, Chairman, 80 lakh) continued to dominate,
2023. On a quarterly basis, the
according to a recent study by third quarter of 2023 were MMR, ANAROCK Group. “Cumulatively, with a 28% share of the total new
average prices in the top seven
ANAROCK Research. Hyderabad, Pune and Bengaluru, the two western cities accounted supply, while the luxury segment
cities jumped by 5%.
The new supply during this which together accounted for 87% for 51% of total sales across the (Over `1.5 crore) and premium
The continued sales momentum
period was over 1,16,220 units, of the total additions. top seven cities and, in terms of segment (`80 lakh-1.5 crore) had a
is partially attributable to the
compared to 93,490 units in “Among the top seven cities, growth, MMR saw a 46% annual 27% share each.
repo rate pause, which has kept
home loan interest rates stable,
Supply of housing units (% change y-o-y) Sale of housing units (% change y-o-y)
leading to high housing purchase
40,000 70% 40,000 70%
sentiment.
32,000 32,000 56% “Considering the overall
24% 36%
45% economic scenario, the momentum
24,000 24,000 42% in housing sales and new launches
Overall Overall
20% across the top seven cities is
16,000 16,000 28% expected to continue in the
-5% October-December quarter,” said
8,000 8,000 14% Puri. “Many large and branded
developers have a healthy
0 -30% 0 0%
NCR MMR Bengaluru Pune Hyderabad Chennai Kolkata NCR MMR Bengaluru Pune Hyderabad Chennai Kolkata pipeline of new project launches
in the upcoming festive quarter
Q3 2023 Q3 2022 % change Q3 2023 Q3 2022 % change across the top cities,” he added.
Source: ANAROCK Research
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this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held 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.
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NG 3.7 PubDate: 16-10-2023 Zone: ETWealthDelhi Edition: 1 Page: DETWDFP User: satyam.

shukla Time: 10-13-2023 19:14 Color:

THE ECONOMIC TIMES STATE SECRETS:

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