Does The New Tax Regime Suit You?: HE Conomic Imes

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THE ECONOMIC TIMES DO WE

LEARN
FROM OUR
MISTAKES?
P13
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 14 No. 15 | April 8-14, 2024 | 24 pages | `8
Does the new tax

regime suit you?
Find out whether you should move to the new tax
regime or stay with the old one. P2
OLD NEW
REGIME REGIME
Sec 80C investments Compliance-free
HRA and LTA Wider tax slabs
NPS deduction Lower tax rates
Home loan `7 lakh tax-free
Medical insurance
DON’T BE CAN
MISLED ACTIVE ARE YOU AN
BY FAKE FUNDS UNEMPLOYED
INVESTING DELIVER GRADUATE?
SCAMS MORE? P14
P6 P8
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cover story
02 The Economic Times Wealth April 8-14, 2024
Does the new tax

regime suit you?
Find out whether you should move to the new
tax regime or stay with the old one.
OLD REGIME NEW REGIME
SEC 80C INVESTMENTS COMPLIANCE-FREE

HRA AND LTA WIDER TAX SLABS
NPS DEDUCTION LOWER TAX RATES
HOME LOAN `7 LAKH TAX-FREE
MEDICAL INSURANCE
GETTYIMAGES
By Babar Zaidi claim many tax deductions and

Old tax regime VS New tax regime
N
exemptions.
ot paying enough A lot of salaried taxpayers
attention to tax mat- might be in the same boat. Last The old tax regime The new regime has
ters can put you in year’s Budget had made the new
a tight spot. Having tax regime the default option for has four tax slabs. six tax slabs.
coughed up a high salaried taxpayers. The employ- INCOME SLAB TAX RATE
INCOME SLAB TAX RATE
tax for the past three months, ees who did not inform their com-
Shilpa Bose knows this too well. panies about the tax regime they Up to `3 lakh No tax
Up to `2.5 lakh No tax
The Delhi-based marketing pro- preferred were automatically put
in the new tax regime.
`3-6 lakh 5%
fessional submitted investment `2.5-5 lakh 5%
proof and other documents before The new tax regime has a high- `6-9 lakh 10%
the 15 January deadline, but er threshold for tax relief, wider `5-10 lakh 20%
still ended up paying a high tax. tax slabs and lower tax rates, but `9-12 lakh 15%
“The finance department didn’t very few deductions and exemp- Above `10 lakh 30% `12-15 lakh 20%
take into account my tax-saving tions. No exemption for house
investments, medical insurance rent allowance (HRA) and leave If net income after all deductions and Above `15 lakh
exemptions does not exceed `5 lakh, there is
30%
premium and home loan interest travel allowance (LTA) or deduc-
payments,” she says. That’s be- tion for tax-saving investments, full tax relief under Section 87A.
If net income does not exceed `7 lakh, there
cause Bose had not specified her medical insurance and interest Salaried taxpayers also get `50,000 is full tax relief under Section 87A.
choice of tax regime, which put paid on home and education loans standard deduction.
Salaried taxpayers also get `50,000
her under the new tax regime by (see graphic). standard deduction
default and made her ineligible to On the flipside, the taxpayer
cover story
The Economic Times Wealth April 8-14, 2024 03
“The choice of tax

regime depends on 11 DEDUCTION OR
EXEMPTION
MAXIMUM LIMIT
several factors, in- deductions Deduction for Section

`1.5 lakh
cluding the salary and
80C investments
Deduction for health `25,000 for self and family;
structure, invest-
exemptions insurance `50,000 for parents over 60 yrs
ments and financial
you won’t
Linked to salary structure and
HRA exemption
rent paid
needs of the
individual.” get in the Home loan interest `2 lakh
new tax
Savings bank interest `10,000
Interest income of
regime
`50,000
SUDHIR senior citizens
KAUSHIK
Tax-free if claimed twice in a
CEO, Leave travel allowance
block of four years
TAXSPANNER.COM
NPS contribution `50,000
Interest paid for eight
Education loan interest
consecutive years
does not have to give any proof of invest-
Donations to specified
ments and expenses. “The objective of 50-100% of amount donated
charities
the new tax regime is to simplify com-
pliance by doing away with the maze Disability of self or `75,000-1.25 lakh depending on
of exemptions and deductions,” says dependant disability
Chartered Accountant Karan Batra.
Time to select tax regime

With the start of the new financial year,
Sourav Ghosh, 38 years, Kolkata

companies are reaching out to their
employees to select the tax regime for
2024-25. This is an important decision
because you can do it only once in a
financial year. Once you make a choice, OLD TAX REGIME NEW TAX REGIME
your income will be taxed as per the tax
Income 11,83,288 11,83,288
structure of that regime (see graphic).
You can change the regime while filing Standard deduction 50,000 50,000
your tax return next year, but tax will
HRA exemption 2,38,721 Nil
get deducted at source as per the selected
regime. Sec 80C deduction 1,50,000 Nil
“The choice of tax regime depends Health insurance
on several factors, including the salary 25,000 Nil
deduction
structure, investments and financial
needs of the individual,” says Sudhir Total deductions 4,63,721 50,000
Kaushik, CEO of tax filing portal Tax payable 58,671 83,194
TaxSpanner.com. “One should compare
the two options carefully before making All figures in `
a choice,” he adds.
It also requires a good understanding
of the various tax rules and financial
regulations. Sourav Ghosh (see picture)
Our suggestion
opted for the new tax regime last year Stay with the old tax regime because
because the only deduction was the `1.5 you can claim higher deductions and
lakh tax-saving investments under exemptions and save `24,523 in tax.
Section 80C. That’s why he wants to
continue with the new tax regime for the
current financial year as well.
However, TaxSpanner found that
Ghosh has not been claiming HRA ex-
Ghosh’s father is the registered owner of
the house. Two, Ghosh’s employer is like-
“Fake HRA exemption linked to the same PAN. What’s more, the
PAN holder said he was not a landlord and
emption because he lives in his father’s
house. If he pays rent to his father, he
ly to insist on seeing the rent agreement
between the two parties and rent receipts
claims may not only had no knowledge of any rental income.
The tax department has also come across
can claim an exemption for HRA and his before extending the exemption. Lastly, entail penalties and some 8,000-10,000 high-value cases where
tax under the old regime would be lower Ghosh must also mention his father’s individuals have claimed HRA exemption
by more than `24,000 (see graphic). The PAN because the rent exceeds `1 lakh in a penal interest later, though not living on rent.
`2.39 lakh rent received by his father is
taxable after 30% standard deduction,
year (`8,333 per month).
Tax experts advise that the rent should
but can even lead to Financial transactions are linked to
PAN and the use of data analytics makes
but since his income is below the basic be paid through cheque or by electronic prosecution in it fairly easy for the tax authorities to spot
exemption for senior citizens, there will transfer to show that the transaction is fake claims. “Fake rent claims may not
be no additional tax liability. genuine. The tax department does not extreme cases.” only entail penalties and penal interest
take cognisance of cash payments. The later, but can even lead to prosecution in
Don’t claim fake exemptions landlord also needs to declare the rental extreme cases,” warns Kuldip Kumar, part-
While Ghosh can legally pay rent to his income in his tax return. KULDIP KUMAR ner at Mainstay Tax Advisors.
father, he needs to fulfill certain condi- This is important because the tax PARTNER,
tions for claiming the exemption. One, department has recently discovered MAINSTAY TAX Which regime suits you?
the property must be owned by the per- rampant misuse of HRA exemption. ADVISORS Under the old tax regime, if the net taxable
son who receives the rent. In this case, Rent receipts of around `1 crore were income after all deductions and exemp
cover story
tions does not exceed `5 lakh, then the NPS contributions. Health insurance for instruments. “The new tax regime particu-
taxpayer gets full tax relief under Section self and parents can reduce the taxable in- larly suits young earners who may not have
Don’t dump 87A. “There are plenty of tax-saving oppor-
tunities under the old tax regime. By utilis-
come by another `50,000. These 4-5 deduc-
tions combinedly bring down the taxable
enough investible surplus to lock in tax-
saving instruments,” says Batra.
these in new ing all the exemptions and deductions, a
taxpayer with an annual income of even
income to `5 lakh and make the income
completely tax-free.
One such taxpayer is Noida-based
finance professional Shuchi Gupta (see
tax regime up to `10 lakh can reduce his tax to zero,”

says Kaushik of TaxSpanner. To start with,
The threshold for tax rebate is higher
under the new tax regime. If the taxable
picture). Under the old tax regime, she is re-
quired to invest in the tax-saving options.
Many deductions are not there is a `50,000 standard deduction. The income does not exceed `7 lakh, there will Even after pouring `1.5 lakh in tax-saving
available under the new tax investments under Section 80C offer `1.5 be no tax. If you add the `50,000 standard instruments under Section 80C and buying
regime, so many taxpayers may lakh deduction. The home loan interest (or deduction, an individual with a taxable health insurance, she has to pay `14,000
be thinking of discontinuing the HRA exemption) takes care of another `2 income of up to `7.5 lakh will pay zero tax, tax. “I don’t want to lock up money in the
tax-saving investments started in lakh. Then there is `50,000 deduction for without being forced to invest in tax-saving NPS just to save more tax,” she says.
previous years. However, some of
these investments should not be
stopped just because these won’t
fetch any tax benefit. These could
be serving other critical purposes Ayush Gaikwad, 33 years, Pune
in your financial plan.
PPF: Continue OLD TAX REGIME NEW TAX REGIME
investing to Income 19,92,000 19,92,000

build tax-free
Standard deduction 50,000 50,000
corpus
Home loan deduction 1,50,000 Nil
In the past few
years, many Sec 80C deduction 1,50,000 Nil
investment options have moved
into the tax net, but the PPF remains Health insurance 42,000 Nil
completely tax-free. The small deduction
savings scheme is a good way to
build a retirement corpus that earns Total deductions 3,92,000 50,000
tax-free interest and is tax-exempt
on maturity. If you have investible
Tax payable 3,04,200 2,93,904
surplus, keep investing in this tax-
advantaged scheme. All figures in `
Term Our suggestion

insurance: Move to the new tax regime where the tax
Keep paying
will be marginally lower by `10,296 in
the premium
for protection tax. But if you put `50,000 in the NPS and
claim deduction under 80CCD(1b), the old
Life insurance is
not bought to save tax, but is meant regime will be more beneficial.
to provide financial support if the
policyholder dies. This is especially
true for pure protection term insurance
plans that give a large cover at a low
price. Even if there is no tax benefit on
Shuchi Gupta, 28 years, Noida

the premium, do not stop paying the
premium of your term insurance policy.
Medical
insurance: OLD TAX REGIME NEW TAX REGIME
Continue this Income 7,20,000 7,20,000
critical cover
irrespective of Standard deduction 50,000 50,000
tax benefit Sec 80C deduction 1,50,000 Nil
Continuing this cover is just as NPS contribution Nil Nil
important as the term insurance policy.
Don’t stop your medical cover because Health insurance 15,000 Nil
there is no deduction for the premium. deduction
As Covid showed us four years ago,
the absence of medical insurance can
Total deductions 2,15,000 50,000
ruin a household’s finances. Tax payable 14,040 Nil
NPS: Invest All figures in `
under Sections
that offer tax
benefits Our suggestion
Go for the new tax regime where there is
Even though there is
no deduction under no tax for an income up to `7 lakh, thus
Section 80C under the new tax regime, saving you the entire `14,040 in tax.
the contributions to the NPS under If you put `50,000 in the NPS and claim
Section 80CCD(2) will continue to enjoy
tax benefits. If you have opted for the deduction under 80CCD(1b), there will be
NPS through your employer, continue no tax under the old regime as well.
contributing to the scheme to get the
tax benefit.
cover story
“The new tax regime

does away with the
Ganesh Sahay, 74 years, Patna
maze of exemptions
and deductions. OLD TAX REGIME NEW TAX REGIME
It suits those who Interest income 10,20,000 10,20,000

don’t have surplus Sec 80TTB exemption 50,000 Nil
to lock in tax-saving Health insurance 50,000 Nil
options.” deduction
Total deductions 1,00,000 Nil
KARAN BATRA Tax payable 97,760 65,520

CHARTERED
ACCOUNTANT All figures in `
Our suggestion
If Gupta moves to the new tax regime,
Move to the new tax regime. Even without
the standard deduction of `50,000 will
reduce her taxable income to less than the deduction for medical insurance and
`7 lakh and render it completely tax-free. exemption under Sec 80TTB, your tax will
She will be eligible for full tax rebate un- be lower by `32,240.
der Section 87A.
Young earners like Gupta are not the
only ones who stand to gain from the free- tax-saving instruments at this stage of my health insurance for himself and his par- only once,” says Batra.
dom offered by the new tax regime. Even life,” he says. ents. Yet, he will pay less tax under the new If you are switching to the new regime,
retirees like Ganesh Sahay (see picture) tax regime, thanks to the lower tax rate for you may want to let go of the tax-saving
will find it beneficial. Sahay is 78 and has High income earners also gain income up to `15 lakh. investments started in previous years.
a modest income of `10.2 lakh from de- It would be incorrect to suggest that only Many taxpayers might find that the new Though you won’t get any tax benefit from
posits. Although he will forgo the `50,000 those with low income and claiming very tax regime is more beneficial. The best part these under the new regime, some of these
tax exemption for interest income under few deductions and exemptions should go is that it gives individual taxpayers a lot of instruments may be serving other critical
Section 80TTB, and the health insurance for the new tax regime. Pune-based soft- freedom. They can switch back to the old purposes in your financial plan (see box).
premium deduction under Section 80D, ware engineer Ayush Gaikwad (see picture) regime if they want at the time of filing re-
he intends to go for the new regime where earns well and claims exemptions and de- turns. “Salaried taxpayers can switch from
his tax outgo will be lower by more than ductions of up to `3.92 lakh, including home old to new tax regime, and vice versa, any Please send your feedback to
etwealth@timesgroup.com
`32,000. “I don’t want to lock up money in loan interest, Section 80C investments and number of times, but businesses can do so
What RBI
decision on Home loans
Borrowers would be disap-
Bank deposits
Bank deposit rates will
Debt funds
The market was not expect-
repo rate
pointed by the decision to hold continue to remain above 8%, ing a rate cut, so bond yields
interest rates. Home loan rates which will benefit investors witnessed a marginal rise af-
have remained high due to the who desire the safety of as- ter the RBI meeting. Experts
flurry of rate hikes in 2022 sured returns. However, inter- say short-term debt funds
means for and 2023. The only consola-

tion is that the EMIs will not go
up any further. If your loan is
est rates seem to have peaked,
and it is only a matter of time
before the RBI cuts rates. Ex-
will continue to deliver. Even
if yields don’t decline, the
accrual strategy of short-
you
not under the EBLR (External perts say this might be a good term debt funds will give
Benchmark-based Lending time to lock in at high rates decent returns.
Rate), shift to EBLR regime before banks start cutting their
where the interest rates are deposit rates. If you expect At the same time, this
lower and transmission of rate rates to go up, build a ladder might be a good time to get
changes is much quicker. of fixed deposits with 6-12 into long-duration funds.
With no change in month gaps. That way, some The market is expecting
Since rates may not move long-term yields to drop to
the repo rate, here’s down for another 2-3 quarters,
deposits will mature every
around 6.75% by the end
6-12 months and allow you to
borrowers should also consider of this year. This will be a
how your loans and making some prepayments.
reinvest at a higher rate later.
bonanza for those invested
If you don’t have too much li-
investments will be Prepayments are more benefi-
cial if the remaining loan ten-
quidity now, go for a recurring in long-term funds. At the
same time, these funds are
deposit. Once started, the rate
affected. ure is more than 10-15 years. of a recurring deposit stays very sensitive to interest
Loans that are going to end in fixed for the entire tenure. So, rates. If rates don’t fall as
3-4 years will not be affected go for a long-term recurring expected, these funds could
too much by the prepayment. deposit of 5-10 years. give very low, or even nega-
tive, returns.
investing
Don’t be misled by
fake investing scams
HOW WHATSAPP
INVESTING SCAMS
OPERATE
Victim gets added to random
Whatsapp investing group.
Fraudsters are using identities of established brands and reputed Multiple other groups get
created simultaneously.
professionals to offer investors bogus stock tips and trading courses.
Profile of star investor and his
GETTY IMAGES
credentials are shared with
by Sanket Dhanorkar group members.
S
ocial media messaging
Discussions start in group, with
platforms have become a
one set of members creating
fertile ground for scamsters hype about the upcoming
to tempt investors with the ‘lessons’ or ‘opportunities’.
promise of making a quick
buck. Investment groups created on Initial stock tips are shared on
Whatsapp and Telegram are now mis- group free of cost. Conflicting
appropriating identities of established tips shared on other groups.
brands and reputed professionals to
lure individuals into bogus stock tips Tips work in favour of some
and trading courses. groups. Members of these
This writer received the following groups are nudged to invest in
invite via Whatsapp, purportedly from more ideas. Other groups are
simply killed off.
a renowned fund house some time ago:
“As PGIM Global Funds celebrates its
fifth anniversary in India, we are cel- Actively participating members
are encouraged to invest in
ebrating through an online event with
special programmes with
the aim of repaying the support and promises of even bigger
love of Indian investment enthusiasts. rewards.
This group will share high-quality
investment portfolios and selected When a victim refuses to
stocks for free every day, leading eve- transfer more funds or tries to
ryone to make money. Students can withdraw funds, account gets
follow our news every day and verify disabled. Whatsapp group is
our strength!” deactivated and affiliates stop
responding, vanishing with
This modus operandi is now very
victims’ funds.
common. Fraudsters try to lure in-
vestors by masquerading as reputed
individual fund managers, financial
advisers and even finfluencers.
Investment scams are being run in the
name of expert investors like Porinju
Veliyath and Ajay Kacholia, among
others. The use of such reputed names
gives a sense of legitimacy to the entire scamsters use a variety of tactics to get Many of these scams are essentially ‘pump fer funds via a link or to an account shared
operation. Santosh Joseph, Founder, you to bite. Some position themselves as an and dump’ operations. The idea is to tempt privately. Once gullible investors pour in
Germinate Investor Services, “These investment academy or class, featuring a people into buying stocks that the scamsters large sums of money, the scamsters freeze
scamsters prey on investors’ appetite ‘professor’ or ‘teacher’, usually the person or their associates are already holding. withdrawals, sever all connections and
for stock tips, particularly coming being impersonated. The discussions on the Through circular trading they artificially vanish with the funds.
from star names.” group chats are typically scripted. Members boost the price of the share. Once enough
For instance, one such group of the group often sound hyped about the people have bought, the scamsters quietly Watch out for these red flags
‘Federated Hermès’ misappropri- upcoming opportunity or put forth queries sell their holdings at a huge profit, sending Investors must watch out for some tell-tale
ated the identity of renowned fund about the trading programme. Typically, the stock price plummeting. Other investing signs of fraud. If you get a random invite
manager Pankaj Tibrewal to con- these active participants are affiliates, role- scams simply entice people into transferring to a trading community from unknown
duct stock market classes and send playing to mislead others in the group. Rahul money in exchange for more rewarding tips contacts, be wary. Do not fall for the ‘get
messages in Whatsapp groups. The Ghose, CEO, Hedged.in, observes, “Messages or recommendations. The tips are bogus, rich quick’ or ‘guaranteed return’ pitch. If
Whatsapp message read, “Mr Pankaj planted by their own affiliates gives the en- so they create multiple groups of investors, it sounds too good to be true, it usually is.
will recommend daily limit stocks tire set-up a feel of legitimacy.” suggesting different investing ideas to each. “Stay away from stock tips, irrespective of
to all participating students in a live Some even allude to instances of trading Ghose remarks, “Conflicting ‘buy-sell’ calls anyone sharing it,” exhorts Joseph. If the
broadcast. Please participate on time.” gains made previously under the guidance of are sent to each group. Since a few ‘ideas’ investing group claims affiliation with a
In another scam, the identity of widely the ‘teacher’, offering screenshots as proof. will pay off, members of relevant groups are name or brand you trust, verify its authen-
followed finfluencer Rachana Ranade The idea is to generate a sense of FOMO (fear pitched more ideas and encouraged to invest ticity by reaching out to the person or com-
was blatantly used to lure investors. of missing out) among the unsuspecting more money. Other groups are simply killed pany via social media or e-mail, suggests
“I will personally select stocks that members. These scamsters further put pres- off, and so the cycle continues.” Ghose. Most likely, they will flag a scam.
are expected to rise in April. Join our sure by creating a sense of urgency. They Investors whose initial smaller bets yield Finally, be suspicious when requested to
Whatsapp group. Every day, we pick a urge you to avail of ‘limited time opportu- profits become easy prey for the actual rip- send money via unverified links or down-
reliable stock. First 1,000 members get nity’ or risk losing out on a profitable trade. off. They are invited to put in larger sums load third-party apps.
it for free,” the account impersonat- Another bait is to offer investors a ‘trial’ of money, to earn bigger payoffs. They get
ing her claimed. The group even used period, where they can test the waters at no tempted with offers of ‘elite’ or ‘VIP’ mem-
Please send your feedback to
Ranade’s image as its profile picture. cost. Initial stock tips may be offered free of bership, supposedly available only to a select
Apart from impersonation, these charge, as a confidence-building measure. few. Scamsters often prod investors to trans-
guest column
Kahneman for investors

His work can be best used as a personal tool by investors to understand the
psychology of their own decision-making, says Dhirendra Kumar.
I
t was more than 20 years ago that I first
heard of Daniel Kahneman, who died
recently at 90. This was shortly after he
was first awarded the Nobel Prize for
Economics (which is not a real Nobel
Prize, but let’s not be pedantic). Kahneman’s
ideas and, in fact, the entire field of behav-
ioural economics came to widespread at-
tention outside the field at around this time.
Since then, Kahneman’s work, much of it in
collaboration with Amos Tversky, has be-
DHIRENDR A KUMAR come very influential, not just in economics
CEO, VALUE RESE ARCH and finance, but across a wide range of fields,
including psychology, political science, even
GETTYIMAGES
money
medicine. Their groundbreaking research
challenged the long-held assumption that
mysteries human beings are fundamentally rational.

Instead, it demonstrated the many ways in
which our judgement and decision-making bush’ illustrates the concept of loss aversion. fectly rational agents would, people’s deci-
are subject to bias and heuristics. Kahneman and Tversky took this folk wis- sions may be guided, or ‘nudged’. This is
At that time, I had just launched Value dom and subjected it to rigorous scientific in- not something I’m enthusiastic about. It’s
Research’s first print magazine, Mutual Fund vestigation. Through clever experiments and essentially covert manipulation. Those
Insight. We did a cover story on Kahneman data analysis, they were able to demonstrate doing the nudging may not have your best
For those who and Tversky’s work titled ‘Out of Your Mind?’ the pervasiveness of these biases and show interests at heart or may not be very com-
invest, this work The sub-head of the article was ‘Behavioural how these systematically affect our decision- petent.
is particularly economics suggests that, for investors, under- making, often in ways that are detrimental to This field is best used as a personal
relevant. The financial standing their own psychology is even more our own interests. tool to understand and improve decision-
important than understanding the markets.’ For those who invest, this work is particu- making. By becoming aware of our own
markets are filled
Stated formally, with the weight of the Nobel larly relevant. The financial markets are biases and mental shortcuts, we can take
with uncertainty,
behind it, this sounds like a new concept and, filled with uncertainty, risk and emotional steps to counteract them when it matters
risk and emotional as a part of economics, it definitely is. Yet, stress—conditions that make our cognitive most. This is especially crucial in per-
stress—conditions that instinctively, every investor already knows biases stronger. Understanding these biases sonal finance and investing, where the
make our cognitive this. When you first hear about it, it immedi- is the first step towards avoiding their bad consequences of irrational decisions can
biases stronger. ately strikes a chord and feels obvious. effects. So, by being aware of our tendency to be severe and long-lasting. By cultivating
Understanding these In fact, the core ideas of behavioural eco- overreact to losses, follow the herd, or be over- self-awareness and learning to recognise
nomics are so intuitive that they have been confident of our judgements, we can make a when our emotions and biases are swaying
biases is the first step
part of popular wisdom for centuries, if not conscious effort to counter these biases and our judgement, we can become better in-
towards avoiding
millennia. Proverbs and aphorisms across make more rational investment decisions. vestors and stewards of our own financial
their bad effects. cultures are replete with admonitions against Of course, the implications of behavioural well-being. That, I believe, would be the
the very cognitive biases that Kahneman and economics go beyond individual investors. greatest tribute to the groundbreaking
Tversky identified and studied. ‘Don’t put all The insights from this field are increasingly work of Kahneman and Tversky.
your eggs in one basket’ warns against the being applied to other aspects of personal
lack of diversification. ‘Cut your losses and finance, from retirement savings plans to
ride your profits’ cautions against the sunk health insurance. By understanding how Please send your feedback to
cost fallacy. ‘A bird in hand is worth two in the people make decisions, rather than how per- etwealth@timesgroup.com
ITR forms for 2023-24 released

The Income-tax Department yet updated. Salaried taxpay-
has enabled the online ITRs for ers would not have got their
the financial year 2023-24 on Form 16s so soon. They will
the e-filing portal. Taxpayers have to wait till the end of June
can file their tax returns using to collect the required TDS
these forms. The Excel utilities certificates before they can file
of ITR-1, ITR-2 and ITR-4 were their ITR.
released earlier. The offline Divya Baweja, Partner,
JSON utilities for ITR-1, ITR- Deloitte India, says, “The time-
2, ITR-4 and ITR-6 have also ly availability of ITR forms this
been released. The last date to year is a positive step, allowing
file income tax returns for the taxpayers to plan and file their
financial year 2023-24 is 31 July. nancial year. This is another their returns using these returns early. However, the
“This is for the first time in giant step towards ease of com- forms, many may not be in a po- salaried taxpayers may still
recent times that the Income- pliance and seamless taxpayer sition to do so right away. Many need to wait till June for filing
tax Department has enabled services,” the CBDT stated in a taxpayers may find that their the returns as their employers
taxpayers to file their returns press release. Annual Information Statement are not expected to issue Form
on the first day of the new fi- Though taxpayers can file (AIS) and Form 26AS are not 16 until 15 June.” —ET Online
mutual funds
Can active funds deliver more?

The choice of active, passive, or both funds should be determined by individual preferences of investors.
by Kumar Shankar Roy
T
he active-passive investing
debate has gained momen-
tum with the release of the
2023 S&P Indices Versus
Active Funds (SPIVA) India
Scorecard. It shows that a large chunk
of actively managed Indian equity
mutual funds underperformed their
benchmarks. Many advocate for lower-
cost index funds and ETFs citing such
studies. However, investors should un-
derstand that knee-jerk reactions con-
cerning long-term investment plans
are best avoided. Ultimately, the choice
of active, passive, or both should be de-
termined by individual preferences.
GETTY IMAGES
Most active funds lagging

Active equity funds rely on manag-
ers’ decisions, while passive funds
attempt to track indices efficiently.
As per SPIVA, five out of 10 large-cap
funds underperformed the S&P BSE The battle of generating alpha
100, while over 73% of mid- and small-
Large-cap ELSS Mid- & Small-cap
cap schemes lagged the S&P BSE 400 Percentage of funds Benchmark
MidSmallCap in 2023. ELSS funds did outperformed by index
S&P BSE 100 S&P BSE 200 S&P BSE 400 MidSmallCap
better, with 30% underperforming the
S&P BSE 200. Longer-term data (see ta- 87.50 85.71
ble) reveals various nuances about the
73.58 75.41
frequency of underperformance. 70.73 67.57
Before using such insights to guide 60.00 58.14 62.1
investment decisions, one should rec- 51.61 53.66
ognise the differences between active
and passive investment avenues. Like 30.00
fluctuating weather patterns, active
and passive funds experience different
performance cycles. For instance, dur-
ing broad-based market movements,
well-diversified large-cap active funds 1 year 3 years 5 years 10 years
tend to perform well. In contrast, the Source: SPIVA India 2023. Data as on 31 Dec 2023. Index performance based on total returns in Indian rupees. Analysis based on absolute returns.
Nifty50 index is heavily influenced by
stocks like HDFC Bank and RIL, each of the best passive alternative. “However, exist. Passive funds, particularly large-cap sum corpus by 20% over 20 years, assum-
accounting for over 10%. Thus, con- there are no guarantees of outperformance. index funds, can still be valuable compo- ing 8% annual returns. The lower cost in
centrated holdings prove beneficial Market dynamics, poor manager skill, and nents of diversified portfolios. “It is impera- passive funds comes from doing away with
during narrow rallies or downturns, risk mitigation follies can negatively im- tive to have the right mix of largely active a fund manager, the factor behind alpha
helping index offerings outperform. pact an active fund’s returns,” says Suman funds with smaller amounts in passive in active funds. Instead of solely focussing
The numbers cited in such studies Banerjee, an independent analyst. funds,” says Anand K. Rathi, Co-Founder, on passive fund costs, experts urge inves-
change frequently. The 2023 SPIVA Mira Money. tors to consider other parameters. “Pay
study revealed 52% of active large-cap Comparing apples with apples attention to precise benchmark tracking,
funds lagged the index in a one-year pe- People understand that city and highway Many choices, lower costs minimal tracking deviations, and robust
riod but in 2022 it was as high as 87.5%. driving yield significantly different mile- While there are 31 active large-cap funds trading volumes (particularly for ETFs),”
The latest study also showed that 75% age for automobiles. But many of them will today, there are over 100 passive options (in- says Ramesh Gowda, founder-director of
of mid-/small-cap schemes lagged still compare active fund returns solely cluding index funds and ETFs) in the same GGG Investment Services.
their benchmarks over a 10-year pe- against indices, overlooking key differences. category. Over 20 passive options compete Some investors will prefer actively man-
riod. However, the SPIVA 2022 report “Indices are fully invested. There is no cash with nearly 60 active mid- and small-cap aged funds, believing that skilled fund man-
showed only 50% of such schemes had allocation. Also, indices bear no investment funds. One may argue the burden of choice agers can outperform the market. Others
underperformed. Nirav Karkera, Head expenses,” says Yoganand D., an investment remains irrespective of choosing active or would go for passive funds due to their lower
of Research at Fisdom, highlights that planner at Ladco Crest Wealth. passive options. But, practically the choice costs, simplicity and efficient tracking of
in the case of mid- and small-cap funds, Active fund returns against peer index in the case of passive funds doesn’t alter out- market indices. In the end, whether to opt
investors should understand that al- funds and ETFs is a better comparison. comes much. For instance, the 5-year return for active management, passive strategies,
location to cash and exposure to large- About three-fourths of active large caps beat of the best-performing active large-cap fund or a combination of both should be based on
caps may lead to a return drag. top-performing BSE 100 ETFs or Nifty 50 is 19% CAGR while the same for the worst is an individual’s investment approach, toler-
Passive fund investors should note index funds/ETFs in 2023. Similarly, all ac- 14% CAGR. However, all Nifty 50 ETFs in the ance for risk, and personal preferences.
that when active funds deliver alpha tive ELSS funds surpassed the lone tax-saver same period have given around 15% CAGR,
(excess of benchmark return), that index fund’s performance last year. with a few basis-point difference in returns.
could be substantial. For instance, Instead of choosing between active and Passive funds score big on lower costs.
the best active midcap fund’s 23.6% passive options, investors need to under- Just one percentage point difference in total
ten-year CAGR dwarfs the 19% CAGR stand that active and passive funds can co- expense ratio (TER) could boost the lump
financial planning
How to use PAPER WORK

:: Transition to
systematic e-insurance policies
Effective 1 April, the Insurance
Regulatory and Development Au-
thority of India (Irdai) has mandated
plans
all policies to be issued digitally,
in line with regulations to protect
policyholders’ interests. Policyhold-
ers must now dematerialise their
policies by opening an e-insurance
account (eIA). This allows manage-
ment of all life, health and general
insurance policies in one place.
Insurance repositories
This shift to digitisation is
supported by four insur-
ance repositories: CAMS,
Karvy, NSDL Database
GETTY IMAGES
Management (NDML), and the Central
Insurance Repository of India.
Opening an eIA
R
In order to open an eIA,
At 27, Riya wants to plan her iya’s financial journey can be lik- a systematic transfer plan (STP) one year
the policyholder needs
ened to a three-part story: wealth in advance, transferring `2.5 lakh each
finances meticulously now creation, protection, and distribu- month. This would allow her to continue
to download and fill the
that she has a stable career. She eIA form from the chosen
tion. Each part needs a different earning relatively higher equity returns
repository. The form needs to be
has been leading a financially plan and investment. At this stage, her fo- on the remaining balance while safeguard-
submitted along with KYC documents
cus should be creating wealth through sys- ing the accumulated wealth from any
independent life for the past to an approved person or insurance
tematic investment plans (SIPs). SIPs will sudden market fluctuations. Besides, she company branch office or can be cou-
four years. She declines sup- enable her to save fixed amounts at regular will earn a higher return than her sav- riered to the insurance repository.
intervals, smoothing market volatility by ings account and enjoy the benefits of an
port from her parents for all
purchasing more units at lower NAVs and SIP, smoothing out market fluctuations.
her life goals. Riya anticipates fewer at higher ones. By investing `5,000 Similarly, before approaching retirement Documents required
The following docu-
various life milestones but her monthly via SIPs in equity mutual funds at 60 years, she might want to transition
ments need to be
and increasing it annually by 10% as her from equity mutual funds to debt-oriented
biggest worry is retirement, as income rises, she could accumulate a cor- mutual funds, such as corporate bond submitted along with
she wonders whether she will the form:
pus of `43 lakh by age 35. She should aim funds and conservative hybrid funds,
 A recent passport-size photograph
be able to manage her finances to withdraw `30 lakh to make a down pay- which offer relative stability with lower
 PAN card
ment on a house, another `50 lakh to fund volatility.
without a steady monthly in- her luxury car at 50 years, another `50 lakh On retirement, Riya can use systematic
 Date of birth proof
 Identity proof
come. She wants to ensure that to fund her child’s education at 58 years and withdrawal plans (SWPs) to generate a
 Address proof
still be able to retire with `5.5 crore at 60. steady cash flow, replacing her monthly
she saves enough to cover her income. With SWPs, a fixed amount is
That’s what the power of compounding of a
future needs, plus a sizeable small monthly amount can achieve over a redeemed from her mutual funds and cred- Process
corpus to generate a reliable long period of time! ited to her bank account according to her When the complete
Before approaching every major finan- chosen frequency and duration. application is received,
monthly cash flow. She cur- cial goal, such as house, luxury car or her Hence, we can assert that while SIP is it will be verified and
rently invests solely in equity- child’s education, she should transfer units a tool for wealth creation, STP serves as a processed. The eIA is operational
worth the required amount from her port- means for wealth preservation, and SWP within seven days of application.
oriented mutual fund schemes
folio of equity mutual funds to a less vola- for wealth distribution. Effective utilisa-
because she feels she lacks the tile debt mutual fund in order to protect her tion of these three unique facilities offered Converting to e-policies
expertise for active investment corpus from any major downside event. For by mutual funds could be the secret of
Fill the policy conversion
a requirement of `30 lakh, she could set up Riya’s financial freedom.
monitoring. form with policyholder’s
name, policy number, e-
Content on this page is courtesy Centre for Investment Education and Learning (CIEL). insurance account number
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. and company name. This can be
smart things to know

submitted with eIA opening form to
Sec 80DDB benefits for specified illnesses
1
insurance branch or approved person.
2 4
After conversion, policyholder gets a
This deduction If the patient is confirmation via SMS and e-mail.
can be claimed insured, the amount
:: Points to note
3 5
Section by resident that is paid by
80DDB offers Indians for the insurer or
a beneficial Cancer, dementia, themselves, The deduction is up to reimbursed by an  Opening an eIA and converting
tax deduction motor neuron dis- spouse, depen- `40,000 or the actual employer has to be policies is free.
for medical eases, Parkinson’s dent children, amount paid (whichever reduced from the  Once converted, the physical policy
expenses for disease, AIDS, and dependent is less) for patients under actual payments certificate becomes invalid.
treatment chronic renal failure parents or 60 and `1 lakh or actual for calculating the
of specified are among the speci- dependent amount (whichever is less) amount for eligible
diseases. fied ailments. siblings. for patients 60 and above. deduction.
stocks
Favourable industry trends

to support oil & gas stocks
Upstream oil players and gas firms can cushion against rising volatility fuelled by stretched valuations.
by Sameer Bhardwaj Low supply, high demand
O
il prices have remained
are fuelling oil prices
volatile in 2023-24 amid BRENT CRUDE ($/BARREL)
geopolitical tensions and 1-YEAR AVG.
production cuts by OPEC+.
After a 22% decline from 85.57
September to December, Brent Crude 79.5
surged by 10.9% in the first quarter of
2024. Factors such as supply tightness, 84.49
lower US oil inventories, Red Sea ship-
ping attacks, Ukrainian drone strikes
on Russian refineries, and rising de-
mand propelled this increase.
31 Mar 2023 29 Mar 2024
The extension of OPEC+ production
cuts is anticipated to bolster future
prices, with a Reuters-Refinitiv poll Global gas prices dipped
forecasting an average Brent Crude
price of $82.33/barrel for 2024.
sharply in past 6 months
GETTY IMAGES
Also, oversupply in Asia and LNG ASIA $/MMBTU

Europe pressured natural gas prices, 1-YEAR AVG.
with Asian Spot LNG falling by 18.8%
in first quarter of 2024. Gas prices fell 13 9.5
from $17.9/mmbtu in October 2023 to
$8.3/mmbtu in March 2024, currently
standing at $9.5/mmbtu.
Price moderation boosting LNG imports 12.04
IEA predicts a rise in global gas de- Domestic gas consumption LNG imports Total consumption Figures in MMSCMD
mand in 2024, driven by industrial and
power sectors in Asia, Africa, and the 103.6 103.8 103.3 102.4
98.9 99.8 100.3 99.2
Middle East. Expectations of a colder 95.8
95.7
95.2
94.8
90.9
94.3
89.8 90.4 27 Mar 2023 Source: Reuters-Refinitiv. 1 Apr 2024

winter also contribute to increased de-
90.1
86
88.9
86
83.7
mand. Natural gas supply, supported erate gas prices, enhancing gas competitive-
85
81.4
80.7
mainly by US LNG exports, is expect- ness in industrial and commercial sectors.

73.9
70.1
ed to meet demand despite geopolitical Lower prices will compensate for under-al-
risks. IEA forecasts Asia LNG prices location of cheap APM gas. ICICI Securities
at $11/mmbtu for 2024. favors GAIL and Mahanagar Gas but antici-
A CareEdge report anticipates sta- pates subdued sentiments for IGL and poten-
ble international LNG prices due to in- tial impact on Gujarat Gas due to propane
creased export capacities. This, com- 161 163.7 167.4 176.4 179.5 179.6 197.9 192.7 198.1 187.4 189.9 195.5 194.9 price volatility and high valuations.
bined with domestic output growth Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
and demand from key industries, will
2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2024 2024 OMCs
Source: JM Financial report.
support medium-term demand. Indian Oil, BPCL, and Hindustan Petroleum
India saw a 11.2% year-on-year for Indian oil companies reflect robust seas projects traction, and potential IPO are bracing for volatility after recent fuel
increase in natural gas demand (60.6 sector fundamentals. Over the last three of Numaligarh refinery as Oil India’s key price cuts amid firm oil prices, which could
BCM) from April 2023 to February months, analysts compiled by Reuters strengths. dent their marketing margins. Effective from
2024, driven by city gas distribution, Refinitiv raised ONGC’s and Oil India’s March 15, the government slashed petrol and
fertilizer, power generation, and pet- 2025-26 net earnings estimates by 7.7% and Gas companies diesel prices by `2 each. Blended marketing
rochemical sectors. Despite a 6.1% rise 17.2%, respectively. GAIL’s estimate for GAIL stands to gain from rising gas de- margins are estimated to fall to `2.6/litre
in domestic production, LNG imports 2025-26 saw a 4.5% increase, while Petronet mand, bolstering transmission and trading from historical levels of `3.5/litre, said a
surged by 17.6% in 2023-24. LNG and GSPL received upgrades of 1.7% segment profits, while benign gas prices recent JM Financial report. Despite antici-
and 0.5%, respectively. support its petrochemicals segment. GSPL pated robust performance in the March 2024
How are India’s oil will see increased transmission volumes quarter due to strong refining and marketing
companies placed? Upstream oil companies due to softer LNG prices. Commissioning margins, uncertainty looms over future mar-
Firm oil prices are poised to benefit ONGC and Oil India stand to gain from high- of new LNG terminals and higher domestic keting segment earnings. Analysts expect
upstream players like ONGC and Oil er oil prices, particularly within the $75-80/ demand will drive future volume growth. petrol/diesel price revisions to resume post-
India, enhancing their net realisa- barrel range, according to the JM Financial Despite Petronet LNG’s volume growth elections, aiding OMCs in managing under-
tions, which denote selling price mi- report. This range secures a net crude re- prospects and improved Dahej terminal uti- recoveries for the full year. Amidst market
nus subsidies. Improved gas demand alisation of $75/barrel, mitigating ad hoc lization, an ICICI Securities report advises jitters over high valuations, stocks like Oil
forecasts will bolster Petronet LNG, fuel subsidy risks. JM Financial estimates against the stock due to long-term capital India, ONGC, GAIL, and Mahanagar Gas
GAIL, and Gujarat State Petronet suggest a 6-9% increase/decrease in valua- allocation concerns. could offer stability amidst rising volatility.
(GSPL). Continuously moderated tion and EPS for every $5/barrel change in
gas prices will aid CGD firms like net crude realisation. Additionally, a recent CGD companies
Indraprastha Gas, Mahanagar Gas, Motilal Oswal report highlights strong With 20-30% reliance on spot LNG, Gujarat
and Gujarat Gas. Earnings estimates exploration, development pipelines, over- Gas and IGL are poised to benefit from mod-
interview
“Our business from policies

above `5 lakh is down by 10%”
Traditional plans with premiums above `5 lakh have taken a hit, but the category still comprises the bulk
of sales. Meanwhile, ABSLI is renewing its focus on annuity products, Kamlesh Rao tells Riju Mehta.
products not taken off? adequate. I don’t have the data, but the bulk
If you look at the industry data, the penetra- of people who buy insurance for the first
tion in this has gone up over the past 2-3 time have never bought it adequately. The
years. To be fair, there are product restric- good part is that it will be across general,
tions around how you create a design. In health and life. This will give us all the base
annuity, you have to guarantee what you will and help solve the problem of whether they
get. It is the only product where the benefit are adequately insured. It’s a great entry-
period is not known because you don’t know level product for sure.
how long the person will live. In all our other
guaranteed, non-annuity products, you Will the composite licence be beneficial for
pay a premium for, say, 5, 8, 10 years and are customers in any way?
guaranteed for the next 20, 30, 40 years. The If you buy life insurance, the premium gets
period is known. An annuity is a whole-life locked for 40 years. If two people buy life
policy and you have to be careful at what age insurance and one turns out to be healthier
the customer comes in. He could come in at over a period of time, both still pay the same
45 years, pay five premiums and want annu- premium. If, however, the life insurer also
ity for the rest of his life, which could be 40-50 sells health, and is able to see that over 3-4
years. Slowly and steadily, 30- and 40-year years, the pricing will change. The benefits
papers were made available, and now 50-year that can be brought to the person, if health
papers as well. The structure of the product is also sold, can be extended to wellness. The
now is allowing annuity to become bigger companies can deal with their customers
and bigger. We were at 2% of the business two better. It’s like the payments business helps
years ago and we’ll end this year at 6% from a bank know its customers better because
annuity. You’ll find a similar uptake in all there are significantly more transactions.
other listed players. I’m pretty sure that 6% An insurer normally remembers the poli-
will go to 10-12% in the next 2-3 years. cyholder only after one year because that’s
when you pay your renewal premium, but if I
What is the percentage share of life insur- am incharge of your wellness and health, my
ance plans sold by you? ability to know you and be in touch with you
Our business was 21% Ulips, 76.6% tradition- over 30-40 years will be better and my ability
al and 2.4% term plans last year, and we are to offer you the right products at the right
almost at the same level this year, with 20.6% price becomes better.
Ulips, 76.6% traditional and 2.8% term.
Term plans (only individual life insurance What are you doing to counter misselling
business) at one point used to be 6-7% and we by agents?
In India, people mainly buy life insurance
Kamlesh Rao as an investment and the purpose of hav-
are down to around 3%, but we want to take it
to 7-10% over the next 2-3 years.
We were the first to shift to video verifica-
tion because we didn’t want to rely on a third
ing pure protection is defeated because it party to call the customer and verify wheth-
MD & CEO, Aditya is not adequate. What are your thoughts? Has the taxation of traditional plans im- er the product being sold to him is correct or
pacted the sale in any way?
Birla Sun Life The gap in value terms in life insurance
comes from adequacy. The people who have Of course. The business from policies with
not. We try to use video and technology as
much as possible. If you’ve got a product, we
Insurance insurance don’t have enough of it. The gap premiums higher than `5 lakh is down by don’t rely on what you’ve read, but on your fa-
in the number of policies comes from this. an absolute 10%. The number of policies has cial expressions to know whether you’ve un-
From the new policy count perspective, what grown by 20% and we have lost the contribu- derstood the product. If you’re in doubt, we
you say is right, but from the value perspec- tion from plans above `5 lakh by 10%. So, our do a renegotiation of the sales pitch. You need
tive, it comes from people who are broadly business for the first nine months was 10%. to solve this in certain product categories.
underinsured. If you look at the regulator’s Why does a 60-year-old need to buy a child
penetration plan, unless you get the first ex- Will Bima Vistaar lead to a dilution of dif- plan or a senior citizen buy a 15-year pre-
perience of having bought an insurance pol- ferent insurance products? mium paying plan? The bulk of control is in
icy on number count, you can’t get the value I’m not sure because the customer segment the way you construct who your products are
right the first time. What is changing is that that has been chosen is retail. It will need a meant for and who they should be sold to. The
the category we are covering will hopefully minimum requirement of health, life and complaints emanating from agency set-ups
help us bridge the value gap. For instance, property, and making sure the size of the are lower because they know how to manage
I don’t think Indians think about annuity. premium is affordable. If you want high their relationships with clients. We don’t do
All of us struggle till we are 30, worry about levels of penetration, you need to make sure business with tele-calling set-ups, where the
home and car loans, and about kids’ educa- the product is common and use the might of sales process is not right and complaints are
tion after 40. The period between 60 and 80 distribution of all general, health and life in- significantly higher. If you get a handle on
years, when we don’t have a steady stream of surers. That’s one way of getting the penetra- your sales process before converting it to a
income, our health is improving and mortal- tion up. It will get more people to get the taste policy, you get lower complaints.
ity is decreasing, insurance is helping us of insurance. They will not be adequately
plug the gap through annuity products. insured, but having bought an insurance
policy and having been insured, the question etwealth@timesgroup.com
Why have pension plans and annuity that will come to their mind is whether it is
QA
your queries
&
I am 36 years old and want to achieve financial I am 32 years old and earn `55,000 per month.
independence by 50, though I may not retire. My monthly expenses are about `20,000, and I
My current monthly expenses are around `2 have loan EMIs of `20,000. I have an LIC policy
lakh, with a home loan EMI of `60,000. I get with a sum assured of `15 lakh maturing in
around `50 lakh of RSU every year. Since this is 2050. My monthly NPS contribution is `6,000.
a large amount in a single bucket, I want to How should I invest for the future?
diversify over 10-14 years to build a retirement
corpus. What is the right way of achieving this?
Assuming you have a high risk appetite due to
your age, it is advisable to invest your monthly
To achieve financial independence by 50, it
surplus in an asset mix with 80% in equity and
is essential to build a corpus that can cater
to your living expenses without relying on Our panel of experts will answer 20% in fixed income instruments.
You must create an emergency fund to cover
regular income. In the next 14 years, your questions related to any aspect of your unavoidable expenses for at least six
current household expense of `1.4 lakh
(excluding the EMI) will rise to nearly `3.2 personal finance. If you have a months. You can park this fund in fixed depos-
its of scheduled banks offering FD yields of 8%
lakh per month, factoring in 6% inflation.
Assuming that the corpus would be needed
query, mail it to us right away. and above. This would form a part of your fixed
income portfolio. Also, increase your life insur-
for four decades, with post-tax returns of
6%, a sum of `15 crore must be amassed. At QUESTION OF THE WEEK ance to 20 times your annual expenses to en-
sure financial security for your dependants.
that time, this amount would need to be
Purchase a health cover of at least `1 crore,
split into different investment buckets. A
with a base health cover of `5 lakh and super
portion should go into fixed income, while
I am 44 years old and my current corpus is worth top-up cover of `95 lakh. For your equity port-
the remaining should be divided among
folio, invest in equity-oriented mutual funds
hybrid and equity funds, each with distinct `4.7 crore. This includes `3.75 crore of equity
through SIPs. You can consider Parag Parikh
time horizons and return profiles. While a and mutual funds, `30 lakh in the NPS, a flat and Quant for flexi category; ICICI Prudential
part of your corpus would be earning high- worth `25 lakh, and `40 lakh of bank account Bluechip and HDFC Top 100 for large caps, and
er returns, a 6% post-tax average return
savings and FDs. My monthly expense is `1.7 Quant Multi Asset or ICICI Prudential Multi As-
has been assumed because of uncertainty
lakh and I have my own house. I want to quit my set for the multi-asset category.
about interest rates, inflation and taxation
You should invest at least 75% of your NPS
in the future. To accumulate this corpus, job by 2025. I expect my portfolio to reach `6
contribution in equities and the rest should be
you can either invest `40 lakh annually, or crore by then. I intend to split my portfolio in distributed between corporate and government
opt for a monthly SIP of `3.5 lakh based on 70:30 equity-debt ratio. I expect a weighted bonds. Rebalance your portfolio to the given
a return projection of 12%. Build a portfolio
average return of 14% (16% equity, 8% debt) that equity-debt mix if a steep market correction or
of mutual funds diversified across 4-5
schemes, encompassing both active and provides about `84 lakh a year, which, after strong outperformance by any of the asset
expenses (`20 lakh), will provide a surplus of classes leads to a significant change in your al-
passive schemes. This could include a
location ratio.
large-cap index fund, mid-cap index fund, around `64 lakh. Is this a safe way of quitting?
small-cap fund, a flexi-cap fund, and a hy-
brid fund (multi-asset or balanced advan-
tage). While diversification will help re- While your total asset base is about `4.7 crore, `30 lakh in Naveen Kukreja
CO-FOUNDER AND CEO,
duce the concentration risk, the element of the NPS will not be available till you are 55-60. Also, your PAISABAZA AR.COM
volatility cannot be totally ne- flat of `25 lakh isn’t liquid, unless it is generating rent. So,
gated as that is the inherent the net current asset base available for income generation
nature of stock markets. is slightly lower at `4.15 crore, spread across mutual funds,
stocks, bank accounts and fixed deposits. I’m 56 years old and want to retire by 62. I
By 2025, you expect to have about `6 crore, including have a monthly salary of `1.5 lakh and my
Prableen Bajpai future investments. This seems to be based on the assump- expenses are `60,000. I have `8 lakh in FDs and
Founder, FinFix Research tion that the market will go up over the next year and, `44 lakh in equities and mutual funds. My
and Analytics hence, your existing `3.75 crore in equity instruments will monthly SIP is `60,000. I also put in `40,000 in
ride the wave. While this is possible, it’s not guaranteed. the PPF and NPS every month. I have a health
Markets can fall as well in the short term. Your return ex- cover of `10 lakh. I have a house worth `1
I am 34 years old, with a monthly in-hand pectation of 14% is also overly optimistic. I don’t know the crore, as well as shops and land worth `1 crore.
salary of `80,000. My only saving is an LIC
kind of portfolio rolling returns you have achieved over
cover of `5 lakh. I am keen to invest so that
extended periods and across market cycles. More impor- Assuming 12% return from equities, SIPs and
I can retire with a big corpus. I don’t have a
house. I have a car loan of `8 lakh. How tantly, it is not clear how much of this can be attributed to mutual funds, 8% from NPS/PPF, 7% from FDs
should I start to create personal wealth? market run-ups and to individual skill. and 6% inflation rate, the future value of your
There is a need to readjust your average return expecta- investments will be `2.02 crore. The savings
tions to a lower value. While you may earn returns that are would be higher if we add the NPS and PPF
To begin with, purchase term insurance higher than 16% in some years, one should not rely on high holdings. Your expenses inflate to `86,000 by
with adequate life coverage that replaces market returns while making financial planning assump- 62. If we consider 300 times this number as
your annual income for the family for at tions. Try to keep only 1-2% real rate of return (portfolio retirement corpus thumb rule, you need
least 8-10 years in the event of any unto- returns versus effective inflation) while planning for in- `2.57 crore at retirement. Considering the
ward incident. The `5 lakh LIC policy is come generation from a given corpus. above numbers along with your real estate
most likely a hybrid product. Once you buy I strongly recommend that you engage with an invest- portfolio, you should be able to retire com-
a term plan, verify if there is merit in con- ment adviser for detailed financial calculations. This is not fortably. However, if your investments un-
tnuing with the LIC policy. Start investing to say that your `4-5-crore portfolio isn’t enough for your derperform, you’ll need income support in re-
in more liquid and transparent products `20 lakh starting annual expenses, but this will help stress tirement, and rent from commercial proper-
like equity index mutual funds. Consider test your financial situation so that you can make the deci- ties may help. You’ll need to rebalance your
SIPs in funds with underlying index as Nif- sion to quit with a greater peace of mind. holdings for liquidity and growth, and remain
ty 50, Nifty 500 and Nifty Midcap 150 and Importantly, if you have any depend- at a sustainable annual withdrawal
use fixed income products such as PPF/EPF ants, buy pure protection life insurance rate (5-6%) while allowing the
and some short duration mutual funds for (term plan) and have adequate health remainder to grow at 8-10%.
debt. Make sure you have an asset insurance. This is because without a
allocated portfolio instead of job, you will not have any corporate
going overboard on equities. health insurance to cover your medi-
Adhil Shetty
cal risks. CEO, BankBazaar
Dev Ashish
Vidya Bala Founder, StableInvestor, and Sebi- Have a question for the experts?
Co-Founder, PrimeInvestor.in registered investment adviser etwealth@timesgroup.com
financial planning
Do we learn from our mistakes?

No, we don’t because we suffer from confirmation bias. We harm our financial well-being because we continue
to make choices that confirm our beliefs till these become a habit, says Uma Shashikant.
invest, but they don’t give up easily. When

they do invest ultimately, they are very
likely to make the same choices they made
historically. If the same decision was to
be made, the delay was a costly mistake. A
mistake they repeat mindlessly.
When mistakes are repeated again and
again, they tend to become habits. We com-
pletely yield to our brain’s need to process
very little, ignore most new information,
overlook past mistakes, and simply go back
to the quick decisions of familiarity, con-
trol and comfort. How does learning hap-
pen? Or does it?
Expertise and competence stand at the
top of the list. Taking the time to know how
something works and understanding what
might go wrong is the way costly mistakes
are prevented in business situations. In
personal finance, too, financial literacy
and investor education are important to
foster an environment of informed deci-
sion-making and building competence over
time. These initiatives can fail if investors
continue to show confirmatory bias.
Investors tend to ask for knowledge
W
based on their need and context. One can
e must learn from our mis- target in mind. That makes him feel in control conduct a lecture on fixed and floating rate
takes, it’s said. Or even better, and successful. The books can ask him to allow home loans, but someone is interested only
from others’ mistakes. But we profits to run and cut losses, but he is tuned to if he is making the decision. Investors cut
don’t. We are somewhat cogni- do exactly the opposite. He knows his mistake short the learning process to try and fit it
tively limited from being that well enough to laugh about it with me, but can- for their specific purpose. Investor work-
rational person who can look back at failures not, or does not, want to fix it. shops, thus, try and broad-base the content
and learn from them. We mostly ignore, deny Some personal financial habits can simi- and address issues of saving, investing
or dismiss past mistakes. Or worse, we repeat larly be harmful to wealth creation, but these and common decision points that recur.
them because our brain has made a conveni- are tough to change because they have been Knowledge is power when it comes to finan-
ent, quick template of that mistake, and we reinforced by habit and made into an easily ac- cial mistakes, when failures do not seem
UMA SHASHIK ANT find it easy to access and use it again. Our cessible quick reflex in the brain. There is also threatening.
IS CHAIRPER SON, personal financial well-being suffers from this a threat response that can get triggered by a The other technique that works is to
CENTRE FOR INVES TMENT limitation. particularly ruinous mistake, and we shorten modify the frame from one of loss and re-
EDUC ATION AND LE ARNING
Researchers have long argued that we are the lesson to one of complete avoidance. In my gret to one of gain and success. Instead of
incapable of learning from our failures. We conversations with investors, many of whom focusing on how to avoid losses from invest-
are either resistant to learning from those are successful professionals in their chosen ing in equity, or how to choose the right
mistakes or we learn the wrong things. areas of work, I find this avoidance response IPO, or which stock market tip comes from
We are tuned to feel good about ourselves. when it comes to equity investing. Their pain- the most trusted source, the focus can shift
Contemplating our mistakes hurts our self- ful memory of loss when they attempted some- to what works. Evidence that long-term
Confirmation bias esteem. To deny or ignore is this natural thing based on poor advice keeps them away. investing in a diversified portfolio of equity
leads many to seek triumph of our need for validation over the les- Confirmation bias leads many to seek real shares is beneficial to wealth is a more pow-
real estate and gold sons from examining what we did wrong. estate and gold as preferred modes of invest- erful and appealing frame that tries to get
as preferred modes We may decide to think about our mistakes ing. They do not want to look at any new investors to think about it positively.
of investing. They do sometimes, but that process taxes our brain information that will disturb their existing We tend to place high weightage to
not want to look at and cognitive system. We suffer from what framework. Any argument about the limita- advice, teaching and handholding. We
any new information behavioural scientists call confirmation bias. tions of these choices is likely to be ignored by believe that we can correct our mistakes
that disturbs their We process selectively. We look for what we them. Without an experience that is severely after we know it was harmful, if someone
existing framework. already know, quickly draw conclusions from harmful for themselves and, in some cases, for else who observes us or knows better, can
Any argument about a few data points, arrive at a conclusion that someone close to them, they tune out any infor- guide us. Not true. We mostly shun some-
confirms our beliefs, and move on. mation that goes against their preferences. one who points out our errors. We dislike
the limitations of these
A long-time reader of this column is an avid Some, otherwise well-informed investors, the focus on our mistakes. What works is
choices is likely to
day trader. He has lost money, significant tend to postpone their financial decisions reading it like someone else’s story and re-
be ignored by them.
amounts, several times. He has also made without much of a rational reason to do so. flecting on what we agree and connect with
Without an experience
money when his calls go right. Whenever we They may wait for the right time to invest positively as our story. This column is also
that is harmful for
talk about it, he discusses how he got it right, and, in many cases, they may be unwilling a glorious experience of confirmatory bias.
themselves, they tune and I point out how he got it wrong. The single to let someone else help with their decision
out any information most important reason he loses is because he about where to invest. Their need for control
that goes against their fails to sell a losing position fast enough. He supersedes the harm that idle funds are doing
preferences. is biased by his sense of control over events. to their financial wealth. They have no time Please send your feedback to
He prefers to book profits periodically, with a to process new information about where to
career
POWER OF
RELATIONSHIPS
NETWORKING
1 MATTERS
Networking means having a
professional family or meaning-
ful relationships in the profes-
sional domain that can affect
your journey. These ties help
you throughout your career
when you seek advice, mentor-
ship, encouragement or access
GETTYIMAGES
to the vast pool of job openings
that are not advertised.
RIGHT PLACE
2 TO BEGIN
It’s never too early to start
building relationships. Intern-
Unemployed graduate?
ships during college and pro-
fessor-sponsored projects get
you meeting and working with
professionals. Thereafter, apart
from job fairs, attend industry
events and conferences, where
Create opportunities for yourself in a challenging market, says Devashish Chakravarty. you get to engage in discussions
A
with speakers and attendees.
s a recent graduate facing un- Government and public sector ship. Showcase your proactiveness, willing-
ALUMNI BONDS
employment, you’re not alone.
The International Labour
Consider the strength and security of gov-
ernment or public sector as your first job,
ness to work and commitment to learn to
get an entry. During internship, develop a
3 A rich source of con-
Organisation report 2024 high- which usually provides a higher salary reputation for reliability, enthusiasm and nections is students who have
lights how youths comprise 83% and benefits at junior levels. These jobs work ethic. Learn from mentors, build re- graduated from your college
of all jobless Indians, while the proportion of include the civil services, public sector lationships, showcase your output and be before you. Reach out to imme-
graduates in this category is rising. It’s not undertakings (PSUs), banking and finance, considered for a permanent role. Even if the diate seniors who already know
surprising given the spate of layoffs and re- railways, defence, education, and ministries internship is not aligned to your dream job, you, and then to others. Seek to
duced campus hiring in the previous year. If and departments. Access and apply from the experience on your resume multiplies meet them if they are available
you have recently graduated and are strug- government portals of the National Career your chances of landing your first job or an- or connect at common events.
gling to find your first income, here’s how Service (NCS) and Employment News, apart other internship. Ask for advice and referrals to
you can navigate this challenge. from state job portals. Check the respective people and opportunities.
websites and newspaper advertisements Alternative income, gig work
Mentoring & job search ONLINE ACTIONS
Use every resource at your disposal to reach
for openings. Follow guidelines in detail,
including documentation, exams and selec-
Consider alternative income streams and
gig work when you need financial stability 4 Online activities are
your goal. Seek support from family, friends tion tests, and receiving notifications and even as you are searching for your first job. another source for generating
and support groups for both emotional updates. A significant portion of these jobs The three factors are: skills, creativity and opportunities to connect. Join
and practical needs during this challeng- is contractual, so you can pursue an alterna- geography. You can monetise your skills by webinars and virtual events
ing time. Reach out to career counsellors, tive career thereafter with rich experience completing projects as a freelancer on plat- in the domains of your inter-
coaches, or mentors for personalised guid- and a stable bank account to back you up. forms like Fiverr, Upwork or Freelancer. If est. Follow relevant industry
ance and advice. Utilise their inputs to you have a creative bent, look at selling your leaders on LinkedIn, Twitter and
improve your job search efforts. Start with Apprenticeship creations right from cakes on Instagram Instagram and participate in
job platforms like LinkedIn and Naukri, and Apprenticeship is a lesser known, but ef- to crafts, artwork or digital products on chats and live sessions. Focus
offline job fairs organised by portals and fective, upskilling journey, achieved by Etsy, Amazon, Flipkart and others. Finally, your activities to build relation-
colleges. Update your profile and resume, on-job experiential training supported by a leverage your location by plugging in local ships.
and customise your preferences on these stipend. Look at formal apprenticeship pro- services within your community, including
FOUNDATION OF
5
portals to seek suitable jobs. Log in at least grams offered by industry as a solid bridge tuition, event management, home-based ser-
thrice a week to check and apply to fresh
jobs. Respond promptly to take the process
between your education and full-time em-
ployment. You can learn more about these
vices or photography. Apart from income,
your initiatives keep you occupied and train
RELATIONSHIPS
Relationships thrive on trust.
forward when recruiters reach out to you. and access opportunities through staffing you in valuable life and professional skills.
Hence, being genuine and
agencies as well as government portals of
Skills and certificates National Apprenticeship Promotion Scheme Enterprise and business sincere is critical. Also, relation-
ships are a two-way street of
If you are considering a Master’s program (NAPS), National Apprenticeship Training A step ahead of gig work is setting up your
give and take. You can contrib-
or full-time academic pursuit, enroll in Scheme (NATS) and ApprenticeshipIndia. own business. Entrepreneurship is an al-
ute by offering assistance, shar-
one now and postpone your job search. If While choosing, consider personal inter- ternate career identity. If your first attempt
ing resources and celebrating
full-time education is not on the cards, in- ests, eligibility criteria and possibility of a doesn’t yield results, try again or use your
others’ successes. Choose to be
vest in part-time learning, whether online confirmed job at the end of apprenticeship. experience and connections to find a job.
generous and stay in touch to
or distance, along with your job search. You do not need a new business idea or capi-
Continuous learning helps enhance your Internships tal to start. You can learn from and rebuild
foster connections.
employability by acquiring the required Think of internships not as a compulsory proven small business models, improving
skills. It also increases your chances of be- requirement of a college degree, but as a tool as you go. If requried, raise capital from
ing shortlisted through relevant certifica- to gain work experience, build professional family and friends or from government pro-
tion. Remember that the value of certifica- relationships, learn marketable skills and grams like Prime Minister’s Employment
tion is commensurate with its relevance to understand your interests. Sign on to in- Generation Programme. If you have entre- THE WRITER IS FOUNDER & CEO,
SALARYNEXT.COM, A JOB LOSS
the industry and how challenging it is to ternship platforms and reach out to people preneurs in your family, work with them
ASSUR ANCE COMPANY.
acquire. you know to generate a post graduate intern- and learn the ropes before you set off.
SMART STATS
The Economic Times Wealth
April 8-14, 2024
In This Section
MUTUAL FUNDS - P16
LOANS AND DEPOSITS - P18
ET WEALTH TOP 50 STOCKS

ALTERNATIVE INVESTMENTS- P19
Every week we put about 3,000 stocks through four key filters and rate them on a mix of factors. The end result
of this is the listing of the top 50 stocks based on the composite rating to help ease your fortune hunt.
RANK PRICE ` GROWTH%* VA LUAT I O N R AT I O S RISK R AT I N G

Value
Current Previous Stock Div Downside Bear No. of Consensus Research
Rank Rank Price Revenue EPS PE PB Yield PEG Risk Beta Analysts Rating Stock Rating
Bandhan Bank 1 1 197.95 13.2 4.4 10.7 1.5 0.8 0.7 1.35 0.93 28 4.21 
1 Fast growing stocks
LIC Housing Finance 2 2 643.85 -23.8 17.4 7.3 1.2 1.3 1.6 1.19 1.49 32 3.94 
Top 5 stocks with the highest
Aurobindo Pharma 3 3 1,123.60 3.8 -20.0 23.8 2.3 0.3 9.0 1.23 0.58 31 4.13 
revenue growth (%)
Axis Bank 4 4 1,062.95 17.6 68.3 24.5 2.2 0.1 1.6 0.89 1.00 49 4.80 
Aptus Value
Samvardhana Motherson 5 5 119.60 19.7 40.0 40.6 3.5 0.5 10.7 1.18 1.57 22 4.64 
Housing Finance 50
Kalpataru Projects Intern. 6 6 1,125.60 28.0 -5.1 36.7 3.7 0.6 8.0 1.38 1.34 15 4.33  Samvardhana
Motherson 47
Apollo Tyres 7 7 459.85 16.6 155.7 16.3 2.2 1.0 1.9 1.27 0.75 28 3.64 
Kalpataru
46
Balrampur Chini Mills 8 8 383.30 0.7 4.0 13.2 2.4 0.7 1.8 1.34 1.21 10 4.10  Projects Intnl.
Maruti Suzuki India 9 9 12,567.25 27.8 39.5 32.6 4.8 0.7 4.9 0.74 1.22 50 4.38  Adani Ports 45
& SEZ
Somany Ceramics 10 10 615.20 20.7 73.9 27.7 3.5 0.5 2.5 1.54 0.91 22 4.68 
Can Fin Homes 42
Larsen & Toubro 11 11 3,797.85 20.3 61.0 41.4 6.4 0.6 7.3 0.93 0.47 35 4.43 
Hero MotoCorp 12 12 4,522.95 8.5 11.9 25.0 4.8 2.2 19.6 1.06 0.98 44 3.61 
IndusInd Bank 13 13 1,544.45 14.6 53.4 13.9 2.0 0.9 0.9 1.11 2.07 49 4.71 
2 Least expensive stocks
Can Fin Homes 14 14 808.70 17.1 16.8 15.2 2.6 0.4 1.0 1.53 1.45 22 4.36  Top 5 stocks with the lowest
Adani Ports and Special 15 15 1,366.85 29.2 18.9 41.1 5.8 0.4 2.2 1.30 1.12 22 4.73  price-earnings ratio
The Federal Bank 16 16 152.45 14.9 32.5 9.6 1.3 0.7 0.7 1.18 1.84 41 4.49  Federal Bank 10.02
NMDC 17 17 216.80 20.9 21.4 9.9 2.4 3.0 2.4 1.39 2.51 20 3.10  NMDC
10.61
EPL 18 18 188.75 9.1 5.7 21.8 2.9 2.3 3.2 1.19 0.88 10 4.50  LIC Housing
Finance 11.25
Blue Star 19 19 1,348.30 31.5 124.8 57.8 11.3 0.9 2.4 1.13 0.08 25 3.96 
Cyient 20 20 2,164.25 19.6 28.7 36.5 5.7 1.2 3.5 1.69 1.05 23 4.35  Bandhan Bank 13.28
Ultratech Cement 21 21 10,005.10 18.9 -2.5 45.1 5.0 0.4 2.2 0.81 0.94 43 4.39  IndusInd Bank 13.96
UTI Asset Management 22 22 895.75 16.9 27.1 16.6 2.7 2.5 0.9 1.07 1.62 15 3.67 NA
Best PEGs
Zydus Lifesciences 23 23 983.20 9.3 17.7 33.2 5.2 0.6 3.7 0.92 0.55 34 3.68
3

Aptus Value Housing Fin. 24 24 328.40 -39.8 31.3 28.1 4.4 1.2 1.5 1.36 0.90 17 4.00 NA Top 5 stocks with the least
Cipla 25 25 1,459.55 10.2 18.3 31.8 4.6 0.6 1.7 0.98 0.15 39 3.77  price earnings to growth ratio
Mahindra & Mahindra Fin 26 26 294.10 -25.1 27.3 18.8 1.9 2.0 -0.1 1.41 1.40 39 3.62  LIC Housing
Finance NMDC
Jindal Stainless 27 27 707.25 52.6 125.0 19.6 4.2 0.4 0.3 1.75 3.03 10 4.30 
The Ramco Cements 28 28 839.85 22.4 -18.8 52.0 2.8 0.2 -6.9 1.05 1.33 36 3.31 
0.16 0.19 0.19 0.21 0.24
PCBL 29 29 279.25 30.6 20.8 21.9 3.2 2.0 4.7 1.73 2.02 12 4.67 
Orient Cement 30 30 220.15 13.9 3.2 25.8 2.7 0.7 0.2 1.74 1.82 13 3.31 
Bandhan Blue Star Axis Bank
Torrent Pharmaceuticals 31 31 2,537.55 9.3 6.4 57.5 12.0 0.9 4.6 0.94 0.13 36 4.25  Bank
Income generators
Shree Cement 32 32 25,910.25 17.3 3.3 41.7 4.6 0.4 -4.3 1.05 0.56 42 2.93 
Ajanta Pharma 33 33 2,169.60 12.8 7.0 37.1 7.4 0.3 3.7 1.09 0.92 16 4.19  4
Eicher Motors 34 34 4,014.30 26.3 62.0 28.7 6.5 0.9 3.5 1.05 0.99 41 3.39  Top 5 stocks with the highest
dividend yield (%)
Alembic Pharmaceuticals 35 35 1,004.45 4.8 -20.5 33.4 4.2 0.8 45.4 1.32 1.21 19 3.11 
NMDC 5.78
NTPC 36 36 354.65 17.2 36.8 19.1 2.2 2.0 1.4 1.09 1.52 23 4.39 
Embassy Office
Alkem Laboratories 37 37 4,866.10 13.1 0.8 36.9 5.6 1.0 2.6 1.11 0.97 28 3.14  5.78
Parks REIT
Sun Pharmaceutical Indust. 38 38 1,619.35 12.7 54.6 43.6 6.2 0.7 0.5 0.71 0.36 42 4.43  Hero MotoCorp 2.95
UTI Asset
Grasim Industries 39 39 2,277.85 21.1 11.1 27.6 1.7 0.4 -8.3 0.85 0.94 10 4.40  2.70
Management Co
Orient Electric 40 40 212.50 14.3 -2.3 52.0 7.1 0.7 -42.9 1.19 1.59 19 3.95  EPL 2.39
Bajaj Auto 41 41 9,146.15 17.6 17.5 34.6 8.2 1.5 4.6 0.90 1.05 45 3.38 
Least risky
Mahindra & Mahindra 42 42 2,002.70 34.2 98.7 22.4 4.0 0.8 1.9 1.12 1.73 41 4.61  5 Top 5 stocks with the lowest
Greenply Industries 43 43 265.25 22.0 164.0 62.4 4.8 0.2 14.7 1.43 1.51 15 4.60  downside risk
Maruti UltraTech
Bharti Airtel 44 44 1,206.85 14.9 33.7 87.3 9.0 0.3 0.9 0.77 -0.01 31 4.16 
Suzuki India Cement
Embassy Office Parks REIT 45 45 #N/A - - - - - - 0.89 0.29 16 4.88 NA
Gateway Distriparks 46 46 111.30 17.8 2.0 20.7 2.9 1.8 5.0 1.38 1.61 13 4.61 NA
0.71 0.74 0.77 0.81 0.85
Kajaria Ceramics 47 47 1,240.10 22.3 22.8 46.7 7.6 0.7 4.2 1.09 1.16 37 4.22 
Birlasoft 48 48 779.30 13.0 24.3 38.8 7.5 0.4 3.3 1.34 0.20 14 3.64 
Sun Bharti Grasim
JK Lakshmi Cement 49 49 869.90 15.8 5.0 24.1 3.3 0.4 0.7 1.45 1.36 19 3.95  Pharmaceutical Airtel Industries
SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
Endurance Technologies 50 50 1,888.15 17.7 11.4 43.8 5.6 0.4 11.0 1.29 0.23 18 3.61 
IN THE ADJACENT TABLE.
*REVENUE AND EPS GROWTH ARE FOR PAST THREE YEARS. NR: NOT IN THE RANKING. DATA AS ON 5 APRIL 2024. SOURCE: BLOOMBERG
smart stats
LAGGARDS & LEADERS
ETW FUNDS 100

Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).
LAGGARDS LEADERS
BEST FUNDS TO BUILD YOUR PORTFOLIO Equity: Large cap 5-year returns
12.93 22.39
ET Wealth collaborates with Value Research to identify the top-performing PGIM India Large Cap Fund BHARAT 22 ETF
funds across categories. Equity funds and equity-oriented hybrid funds are 13.13 22.29
Groww Large Cap Fund ICICI Prudential BHARAT 22 FOF
ranked on 3-year returns while debt-oriented hybrid and income funds are 13.46 22.20
ranked on 1-year returns. Franklin India Bluechip Fund Quant Focused Fund
Value Research Net Assets
RETURNS (%)
Expense 13.68 18.28
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%)
LIC MF Focused 30 Equity UTI Nifty Next 50 Exchange Traded
EQUITY: LARGE CAP 13.72 18.16
Nippon India Large Cap Fund
Quant Focused Fund


22,766.78
732.85
8.78
12.55
20.54
31.67
46.36
56.43
24.34
23.53
17.46
22.20
1.63
2.27
24.34% Mirae Asset Large Cap Fund Aditya Birla Sun Life Nifty Next 50
THE 3-YEAR
HDFC Top 100 Fund  31,653.32 6.10 19.51 39.95 21.11 15.60 1.63 RETURN
ICICI Prudential Bluechip Fund  51,554.28 9.42 22.19 42.08 21.00 17.94 1.45 OF NIPPON Equity: Flexi cap 5-year returns
DSP Nifty 50 Equal Weight Index Fund - Regular Plan  1,118.15 6.59 20.94 44.02 20.75 17.30 0.98 INDIA
LARGE CAP
Baroda BNP Paribas Large Cap Fund  1,806.39 10.90 23.34 41.13 18.62 17.79 2.08
FUND IS 10.54 29.92
Kotak Bluechip Fund - Regular Plan  7,679.25 5.99 16.63 33.03 15.92 16.20 1.76 THE ABSL Bal Bhavishya Yojna Quant Flexi Cap Fund
HIGHEST
SBI Bluechip Fund  43,355.25 3.89 12.52 29.80 15.33 15.52 1.54
IN ITS
10.58 22.88
Canara Robeco Bluechip Equity Fund - Regular Plan  12,185.22 6.83 17.29 33.59 15.21 17.14 1.69
CATEGORY. ABSL Retirement Fund Parag Parikh Flexi Cap Fund
EQUITY: LARGE & MIDCAP 12.53 22.82
ICICI Prudential Large & Mid Cap Fund  11,333.37 9.86 23.64 47.31 26.42 21.03 1.74 Axis Focused 25 Fund JM Flexicap Fund
HDFC Large and Mid Cap Fund - Regular Plan  16,756.88 6.58 20.56 52.64 25.55 20.73 1.69 12.99 21.49
Motilal Oswal Large and Midcap Fund - Regular Plan  3,476.97 9.03 23.14 54.33 24.62 — 1.87
Taurus Flexi Cap Fund 360 ONE Focused Equity Fund
SBI Large & Midcap Fund  20,632.89 5.19 15.85 35.96 21.72 18.81 1.67
13.33 21.16
Kotak Equity Opportunities Fund - Regular Plan  19,092.30 9.66 19.48 44.07 21.00 19.57 1.62
Nippon India Retirement Fund ICICI Prudential Retirement Fund
Mirae Asset Large & Midcap Fund - Regular Plan  33,711.38 5.24 16.55 41.55 18.31 19.88 1.57
EQUITY: FLEXI CAP

ICICI Prudential Retirement Fund - Pure Equity Plan  607.89 11.69 29.93 61.97 28.73 21.16 2.29 28.73% Equity: Mid cap 3-year returns
Bank of India Flexi Cap Fund - Regular Plan  683.42 13.48 30.95 64.62 27.80 — 2.33 THE 3-YEAR
HDFC Focused 30 Fund  9,918.47 7.91 22.05 41.96 27.55 19.02 1.72 RETURN OF 15.57 36.29
JM Flexicap Fund  1,656.84 12.01 26.92 60.69 26.61 22.82 1.98 ICICI PRU DSP Midcap Fund Quant Mid Cap Fund
RETIRE-
HDFC Flexi Cap Fund  49,659.20 8.01 21.98 44.32 26.00 19.05 1.48
MENT FUND 18.90 34.82
HDFC Retirement Savings Fund Equity Plan  4,705.30 6.62 18.17 41.60 25.08 20.81 1.82 IS THE LIC MF Midcap Fund Motilal Oswal Midcap Fund
HIGHEST
ICICI Prudential Focused Equity Fund  7,231.99 12.59 25.70 47.83 23.22 19.81 1.78
IN ITS
18.95 29.36
Parag Parikh Flexi Cap Fund - Regular Plan  58,900.52 7.66 20.76 40.76 22.12 22.88 1.32
CATEGORY. Axis Midcap Fund HDFC Mid-Cap Opportunities Fund
Franklin India Flexi Cap Fund  14,470.61 7.23 20.21 45.88 22.01 18.65 1.75
19.88 28.48
Franklin India Focused Equity Fund  10,946.30 8.63 18.28 40.81 21.27 18.22 1.78
PGIM India Midcap Nippon India Growth Fund
360 ONE Focused Equity Fund - Regular Plan  6,636.20 7.14 16.79 39.63 20.12 21.49 1.79
Union Flexi Cap Fund  1,982.61 5.90 17.09 40.98 18.93 18.49 2.10 20.29 28.04
UTI Mid Cap Fund Motilal Oswal Nifty Midcap 100 ETF
EQUITY: MID CAP
Quant Mid Cap Fund
Motilal Oswal Midcap Fund - Regular Plan


5,421.74
8,481.46
17.07
13.19
32.69
28.31
71.57
64.79
36.29
34.82
30.66
26.20
1.81
1.73
36.29%
HDFC Mid-Cap Opportunities Fund  60,186.52 8.77 21.49 61.18 29.36 23.60 1.42
THE 3-YEAR
RETURN
Equity: Small cap 3-year returns
Nippon India Growth Fund  24,480.78 4.43 21.56 61.07 28.48 24.63 1.65 OF QUANT
Edelweiss Mid Cap Fund - Regular Plan  5,066.57 9.43 24.01 55.38 25.73 24.44 1.81 MID CAP 20.22 41.14
FUND IS THE ABSL Small Cap Fund Quant Small Cap Fund
SBI Magnum Midcap Fund  16,458.73 6.53 14.52 44.69 24.11 22.68 1.70
HIGHEST
Kotak Emerging Equity Fund - Regular Plan  39,738.35 5.80 15.51 42.52 22.24 22.32 1.47 IN ITS 22.90 34.35
CATEGORY. Kotak Small Cap Fund Nippon India Small Cap Fund
EQUITY: SMALL CAP
Nippon India Small Cap Fund  46,044.13 5.24 18.62 60.01 34.35 29.35 1.52 23.50 32.88
Tata Small Cap Fund - Regular Plan  6,289.22 4.80 14.76 43.11 29.68 26.10 1.74 ITI Small Cap Fund HSBC Small Cap Fund
ICICI Prudential Smallcap Fund  7,415.35 3.69 14.24 46.72 28.24 25.56 1.75 23.78 31.25
Axis Small Cap Fund - Regular Plan  19,606.42 4.77 14.20 43.36 26.07 26.18 1.63 UTI Small Cap Fund HDFC Small Cap Fund
EQUITY: VALUE ORIENTED 23.84 30.91
SBI Contra Fund  25,324.93 8.46 22.83 50.91 30.20 25.55 1.60 SBI Small Cap Fund Franklin India Smaller Companies
JM Value Fund  554.60 8.04 24.01 62.08 27.28 22.05 2.36
Bandhan Sterling Value Fund - Regular Plan
Templeton India Value Fund


8,448.81
1,800.03
9.05
7.79
19.87
21.96
46.85
46.99
26.78
26.65
21.03
20.19
1.76
2.09
Hybrid: Aggressive 5-year returns
ICICI Prudential Value Discovery Fund  40,653.33 8.91 22.07 44.60 26.60 22.17 1.59
9.64 24.16
EQUITY: ELSS Aditya Birla Sun Life Retirement Quant Absolute Fund
Quant ELSS Tax Saver Fund  7,769.92 13.85 33.39 62.76 31.71 31.52 1.76 31.71% 10.79 20.94
SBI Long Term Equity Fund - Regular Plan  21,202.78 12.93 29.17 61.80 27.27 21.27 1.64 THE 3-YEAR Nippon India Equity Hybrid Fund Bank of India Mid & Small Cap Equity
Bank of India ELSS Tax Saver Fund - Regular Plan  1,149.51 12.37 28.43 58.44 24.86 25.14 2.17 RETURN OF
QUANT ELSS 10.79 20.28
Bandhan ELSS Tax Saver Fund - Regular Plan  6,139.72 7.61 16.72 40.98 22.25 19.76 1.75
TAX SAVER PGIM India Hybrid Equity Fund ICICI Prudential Equity & Debt Fund
Parag Parikh ELSS Tax Saver Fund - Regular Plan  2,997.16 5.11 15.76 34.50 21.80 — 1.79
FUND IS
Kotak ELSS Tax Saver - Regular Plan  5,050.36 10.16 18.85 39.83 20.11 18.88 1.78 THE HIGH- 11.04 18.19
DSP ELSS Tax Saver Fund  14,147.00 5.56 19.14 42.61 20.00 18.99 1.62 EST IN ITS LIC MF Aggressive Hybrid Fund JM Aggressive Hybrid Fund
CATEGORY. 16.64
Union ELSS Tax Saver Fund  823.70 6.06 16.18 39.08 19.52 18.72 2.35 11.30
Navi Aggressive Hybrid Fund Edelweiss Aggressive Hybrid Fund
HYBRID: EQUITY SAVINGS
Kotak Equity Savings Fund - Regular Plan  4,614.97 4.14 10.78 20.18 11.88 10.62 1.85 ANNUALISED RETURNS IN % AS ON 3 APRIL 2024.
smart stats
ETW FUNDS 100 RETURNS (%)

Value Research Net Assets Expense
1 Top 5 SIPs
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio
HDFC Equity Savings Fund  3,900.46 4.15 10.12 19.23 11.75 10.31 1.93
HSBC Equity Savings Fund  225.18 5.56 9.92 22.17 11.71 10.16 1.51 Top 5 equity schemes based
UTI Equity Savings Fund - Regular Plan  331.12 3.36 8.81 18.82 11.33 10.26 1.54
on 10-year SIP returns
SBI Equity Savings Fund - Regular Plan  4,182.93 2.85 6.80 21.35 10.58 10.49 1.18
Mirae Asset Equity Savings Fund - Regular Plan  899.05 3.08 8.37 18.76 10.45 11.51 1.26 Quant Small Cap Fund
ICICI Prudential Equity Savings Fund  9,428.67 2.06 4.75 11.48 8.26 8.08 0.97 27.17
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) Quant ELSS Tax Saver Fund
ICICI Prudential Equity & Debt Fund  32,429.17 9.78 20.65 41.06 25.18 20.28 1.62
25.18% 25.96
Quant Absolute Fund  1,787.77 12.13 25.01 40.08 24.25 24.16 2.05
THE 3-YEAR Nippon India Small Cap Fund
JM Aggressive Hybrid Fund  202.40 9.86 23.19 51.84 22.22 18.19 2.31 RETURN OF
Edelweiss Aggressive Hybrid Fund - Regular Plan  1,353.32 7.18 17.11 35.52 19.05 16.64 2.04 ICICI PRU 25.07
EQUITY & DEBT Quant Flexi Cap Fund
UTI Aggressive Hybrid Fund - Regular Plan  5,243.15 5.54 15.19 34.27 18.51 15.32 1.95
FUND IS THE
HDFC Children's Gift Fund  8,452.01 3.76 13.05 29.08 18.49 16.19 1.77 HIGHEST IN ITS 24.38
Mahindra Manulife Aggressive Hybrid Fund  1,033.50 7.06 16.52 35.21 17.78 — 2.16 CATEGORY.
Quant Mid Cap Fund
HDFC Retirement Savings Fund - Hybrid Equity Plan  1,338.49 4.71 13.25 30.57 16.84 15.28 2.12
Baroda BNP Paribas Aggressive Hybrid Fund  968.54 9.11 18.85 34.56 16.33 16.52 2.17 24.37
Kotak Equity Hybrid Fund - Regular Plan  5,045.35 5.50 13.38 28.53 15.54 16.50 1.82
SIP: SYSTEMATIC % ANNUALISED RETURNS
HDFC Hybrid Equity Fund  22,642.92 4.23 10.30 23.69 15.44 14.02 1.70 INVESTMENT PLAN AS ON 3 APRIL 2024
HYBRID: CONSERVATIVE (DEBT-ORIENTED)
19.81%
2 Top 5 MIPs
SBI Magnum Children's Benefit Fund - Savings Plan  108.44 2.94 7.25 19.81 12.60 10.44 1.17
HDFC Hybrid Debt Fund  3,092.53 3.85 8.57 17.43 11.30 10.15 1.77
THE 1-YEAR
Kotak Debt Hybrid Fund - Regular Plan  2,301.97 3.29 8.93 17.40 10.79 11.14 1.72 RETURN OF Top 5 MIP schemes based on
SBI Conservative Hybrid Fund  9,538.16 3.20 6.02 15.13 10.45 10.23 1.12 SBI MAGNUM
ICICI Prudential Regular Savings Fund  3,396.68 3.57 7.55 15.01 9.50 9.46 1.71 CHILDREN’S 3-year SWP returns
BENEFIT
Aditya Birla Sun Life Regular Savings Fund - Regular Plan  1,410.40 2.28 5.38 11.91 8.49 8.61 1.91
FUND IS THE Bank of India Conservative Hybrid Fund
HIGHEST
DEBT: MEDIUM TO LONG TERM 14.91
IN ITS
ICICI Prudential Bond Fund  2,973.52 2.25 4.19 8.17 5.39 6.94 1.03 CATEGORY. SBI Magnum Children’s Benefit Fund
SBI Magnum Income Fund  1,728.85 2.15 3.69 7.55 5.33 7.25 1.46
12.71
UTI Medium to Long Duration Fund - Regular Plan  303.49 2.43 3.78 7.03 9.55 4.57 1.63
SBI Retirement Benefit Fund
DEBT: MEDIUM TERM
11.37
Axis Strategic Bond Fund  1,976.60 2.34 4.15 7.82 5.98 6.66 1.09
SBI Magnum Medium Duration Fund  6,560.11 2.05 3.66 7.56 5.57 7.32 1.22 HDFC Hybrid Debt Fund
ICICI Prudential Medium Term Bond Fund  6,408.06 1.95 3.73 7.37 5.91 7.18 1.40 11.31
Aditya Birla Sun Life Medium Term Plan - Regular Plan  1,887.26 2.07 3.66 7.26 12.42 8.49 1.58
Kotak Debt Hybrid Fund
Nippon India Strategic Debt Fund  119.81 2.04 3.51 6.83 9.24 -1.10 1.98
10.56
DEBT: SHORT TERM
ICICI Prudential Short Term Fund  18,987.37 1.96 3.78 7.72 5.86 7.04 1.07 7.72% SWP: SYSTEMATIC
WITHDRAWAL PLAN
% ANNUALISED RETURNS
AS ON 3 APRIL 2024
HDFC Short Term Debt Fund  14,612.39 2.15 3.89 7.70 5.54 6.90 0.62 THE 1-YEAR
UTI Short Duration Fund - Regular Plan  2,503.35 2.19 4.02 7.63 7.05 5.01 0.84 RETURN OF
 ICICI PRU
3
Aditya Birla Sun Life Short Term Fund - Regular Plan 7,274.50 1.99 3.73 7.28 5.56 6.78 0.97
Axis Short Term Fund  8,277.91 2.05 3.79 7.24 5.28 6.58 0.90
SHORT TERM
DEBT FUND
Multi Cap : Cash holdings
Sundaram Short Duration Fund  191.48 1.91 3.63 7.07 7.44 5.10 0.85 IS THE HIGH-
EST IN ITS 5.99
DEBT: DYNAMIC BOND CATEGORY. 5.39 5.30
5.02
360 ONE Dynamic Bond Fund - Regular Plan  734.99 3.01 4.84 8.61 6.25 6.39 0.52 4.76
Quantum Dynamic Bond Fund - Regular Plan  97.09 2.90 4.79 8.43 5.88 6.99 0.96
SBI Dynamic Bond Fund  3,023.25 2.59 4.15 7.87 5.39 7.06 1.45
ICICI Prudential All Seasons Bond Fund  11,810.07 1.89 3.85 7.73 5.96 7.50 1.31
Aditya Birla Sun Life Dynamic Bond Fund - Regular Plan  1,717.47 2.27 3.95 7.37 6.38 5.58 1.23
DEBT: CORPORATE BOND

HDFC Corporate Bond Fund  28,269.34 2.29 3.81 8.05 5.59 7.06 0.55
ICICI Prudential Corporate Bond Fund  26,050.61 1.99 3.68 7.92 5.90 7.07 0.55
Nippon India Corporate Bond Fund  2,613.23 2.23 3.94 7.86 5.95 6.62 0.77 ICICI Pru- Bandhan Tata LIC MF Kotak
Expense as on 31 March 2024 dential Multi Cap Multicap Multi Cap Multicap
Aditya Birla Sun Life Corporate Bond Fund  21,535.48 2.21 3.91 7.74 5.78 7.20 0.51
Returns as on 03 April 2024 Multicap Fund Fund Fund Fund
Kotak Corporate Bond Fund - Standard Plan  11,422.68 2.10 3.80 7.54 5.42 6.54 0.66 Assets as on 29 February 2024 Fund
Axis Corporate Debt Fund - Regular Plan  5,241.71 2.09 3.73 7.33 5.32 6.15 0.95 Rating as on 31 March 2024
% OF ASSETS AS ON 29 FEB 2024
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns.
Did not find your fund here?
4 Debt: Banking and PSU

Log on to www.wealth.economictimes.com for an exhaustive list.
Methodology EQUITIES (figures over the past one year)

FUND
RAISER
funds less than three years
old have been excluded. This Large-cap: Mostly invested long-term; invest in gilt 0.58 0.61
The Top 100 includes only
ensures that all the funds 0.55 0.57
those funds that have a 5- or in large-cap companies. securities.
have existed long enough to
4-star rating from Value Multi-cap: Mostly invested Equity-oriented: Average 0.41
39.7%
be tracked for consistency of
Research. The rating is in large- and mid-cap equity exposure more
performance. Given the focus
determined by subtracting a companies. than 60%.
on long-term investing, liquid
fund’s risk score from its return
funds, short-term funds and Mid-cap: Mostly invested Debt-oriented aggressive:
score.
FMPs are not part of the list. in mid-cap companies. Average equity exposure
The result is assigned stars of the mutual fund industry
For the same reason, we have between 25-60%.
according to the following Small-cap: Mostly invested
distribution:
considered only the growth in small-cap companies. Debt-oriented conserva- assets were held by institutional
(Not covered option of funds that reinvest
in ETW Tax planning: Offer tax
tive: Average equity expo- investors* in February 2024, Sunda- Franklin DSP UTI HSBC
Top 10% returns instead of offering sure less than 25%. ram India Banking Banking Banking
Funds 100
dividends that increase the rebate under Section 80C. down from 42.4% in
Next 22.5% listing) Banking Banking & PSU & PSU and PSU
Arbitrage: Seek arbitrage February 2023.
NAV of funds. International: More than & PSU & PSU Debt Fund Debt
Middle 35% opportunities between
Despite these rigorous filters, 65% of assets invested Fund Debt Fund Fund
Next 22.5% equity
the list includes 2/3 funds of abroad. Fund
Bottom 10% and derivatives. *INCLUDE CORPORATES, % AS ON 31MAR 2024
each category to maximise Income: Average maturity INDIAN AND FOREIGN
Asset allocation: Invest % EXPENSE RATIO IS CHARGED ANNUALLY.
Fixed-income funds less than choice from the best funds. varies according to objec- INSTITUTIONS AND BANKS.
fully in equity or debt
18 months old and equity The fund categories are: tive. SOURCE: ACE MF METHODOLOGY OF TOP 100 FUNDS ON
as per WWW.WEALTH.ECONOMICTIMES.COM
Gilt: Medium- and 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 7.75 10,798 external benchmarks for pricing new home loans. Most banks have
RBL Bank 7.50 10,771 picked the RBI repo rate as the external benchmark.
Bandhan Bank 7.25 10,745
DCB Bank 7.25 10,745 REPO RATE: 6.50%
YES Bank 7.25 10,745 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
RBL Bank 8.10 11,740 Bank of India 9.25 8.30 10.60 8.30 10.75 1 Jan 2024
IDFC First Bank 7.75 11,659 Union Bank of India 9.30 8.35 10.75 8.35 10.75 11 Dec 2023
IndusInd Bank 7.75 11,659 Indian Bank 9.20 8.40 9.80 8.50 9.80 11 Jan 2024
DCB Bank 7.55 11,614
Punjab National Bank 9.25 8.40 10.10 8.40 10.10 9 Feb 2023
Bandhan Bank 7.25 11,545
IndusInd Bank -- 8.40 10.50 8.40 10.50 Not Given
TENURE: 3 YEARS
Bank of Baroda 9.15 8.40 10.60 8.40 10.60 14 Feb 2023
DCB Bank 7.60 12,534
UCO Bank 9.30 8.45 10.30 8.45 10.30 15 Mar 2023
RBL Bank 7.50 12,497
IDBI Bank 9.10 8.45 10.75 8.55 12.25 12 Feb 2023
Bank of Baroda 7.25 12,405
IDFC First Bank 7.25 12,405 HDFC Bank -- 8.50 9.40 8.50 9.40 Not Given
IndusInd Bank 7.25 12,405 Canara Bank 9.40 8.50 11.20 8.55 11.25 12 Jan 2024
TENURE: 5 YEARS
Punjab & Sind Bank 8.45 8.55 10.00 8.55 10.00 25 Aug 2023
DCB Bank 7.40 14,428 Bank of Maharashtra 9.30 8.60 10.30 8.80 10.80 11 Oct 2023
IndusInd Bank 7.25 14,323 Kotak Mahindra Bank -- 8.70 9.35 8.75 9.60 Not Given
YES Bank 7.25 14,323 Karnataka Bank -- 8.75 10.58 8.75 10.58 1 Nov 2023
RBL Bank 7.10 14,217 Federal Bank -- 8.80 10.25 10.20 10.30 Not Given
ICICI Bank 7.00 14,148 Indian Overseas Bank 9.35 8.85 9.55 8.85 9.55 8 Feb 2023
Karur Vysya Bank 9.60 8.95 11.00 8.95 11.00 31 Dec 2023
Top five senior citizen bank FDs SBI Term Loan 9.15 9.15 9.45 9.15 9.45 1 Sept 2023
Interest rate (%) What `10,000 Bandhan Bank -- 9.16 13.33 9.16 13.33 Not Given
TENURE: 1 YEAR compounded qtrly will grow to
ICICI Bank -- 9.25 9.90 9.40 10.05 Not Given
IndusInd Bank 8.25 10,851
RBL Bank 8.00 10,824 Dhanlaxmi Bank 8.50 9.35 10.00 9.85 10.50 10 Jan 2024
Bandhan Bank 7.75 10,798 J & K Bank 9.45 9.55 9.85 9.55 9.85 10 Dec 2023
YES Bank 7.75 10,798 DCB Bank 9.75 9.75 9.95 9.75 9.95 31 Jan 2024
DCB Bank 7.65 10,787
TENURE: 2 YEARS
RBL Bank 8.60 11,855
Your EMI for a loan of `1 lakh
IDFC First Bank 8.25 11,774 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
IndusInd Bank 8.25 11,774
@ 7% 1,980 1,161 899 775 707
DCB Bank 8.05 11,728
ICICI 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
RBL Bank 8.00 12,682
@ 10% 2,125 1,322 1,075 965 909
YES Bank 8.00 12,682
Bandhan Bank 7.75 12,589 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
Bank of Baroda 7.75 12,589
TENURE: 5 YEARS
Yes Bank 8.00 14,859
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 7.90 14,787 Sukanya Samriddhi Yojana 8.20 250 `1.5 lakh p.a. One account per girl child 80C
Axis Bank 7.75 14,678
IndusInd 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 7.60 14,571
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
City Union Bank 7.10 14,217
RBL Bank 7.10 14,217 Recurring deposits 6.70 100 No limit 5-year tenure Nil
Savings account 4.00 500 No limit `10,000 interest tax-free Nil

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 3 April 2024 #Benefit available only for 5-year deposit
market watch
ALTERNATIVE INVESTMENT
RETURNS MONITOR
The scope and attractiveness of alternative investments is increasing. Here’s a weekly tracker of returns from such investments. But don’t
compare these with returns from traditional investments since the proportion and purpose of alternative investments is vastly different.
Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
60,538 69,622 73,834 79,337 1,021.58 937.83 80.71 85.44
5 APR 2023 4 APR 2024 5 APR 2023 4 APR 2024 4 APR 2023 4 APR 2024 4 APR 2023 4 APR 2024
PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER
CHANGE
X 1 WEEK 3.94% 1 WEEK 7.03% 1 WEEK 2.91% 1 WEEK 2.73%
X 1 YEAR 15.01% 1 YEAR 7.45% 1 YEAR -8.2% 1 YEAR 5.86%
PENNY STOCKS UPDATE

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

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHANGE (%) (`CR)
Gemstone Investments 1.85 71.3 76.19 2.76 30.09 13.82 Sunshine Capital 3.54 -0.28 -2.21 3.37 5,860.51 368.76
Vandana Knitwear 4.81 -7.32 63.61 1.27 -22.03 51.47 IEL Limited 7.29 -11.21 -18.46 10.4 1,371.41 24.35
Tahmar Enterprises 4.32 20.67 60.59 0 -94.97 13.48 Prime Urban Development 9.01 14.05 -3.01 0.21 913.66 24.01
Chartered Logistics 9.75 16.63 48.63 4.07 -4.5 96.82 Integrated Capital 3.78 0.27 -4.3 0.41 739.20 13.42
Meyer Apparel 2.54 20.95 44.32 0.2 161.7 20.45 Velan Hotels 5.93 9.21 -1.33 0.9 509.49 18.95
Nila Spaces 7.53 39.44 42.08 2.04 -55.46 296.61 KCD Industries India 9.87 6.59 -20.15 0.93 465.94 24.87
Amin Tannery 2.82 5.62 39.60 1.42 355.91 30.46 Gen Pharmasec 2.69 20.63 -24.23 35.38 406.90 148.95
Scanpoint Geomatics 7.77 21.41 39.00 4.12 46.33 107.69 Bombay Talkies 4.45 -2.41 34.85 0.05 387.37 24.03
CNI Research 4.26 7.85 35.67 1.59 192.6 48.9 Amin Tannery 2.82 5.62 39.6 1.42 355.91 30.46
Bombay Talkies 4.45 -2.41 34.85 0.05 387.37 24.03 Tarapur Transformers 8.3 7.93 22.42 0.39 313.83 16.19
Top price losers Top volume losers

Growington Ventures 6.26 -0.16 -58.73 14.2 -21.34 100.54 KCL Infra Projects 2 15.61 0.5 5.95 -90.17 33.78
Tatia Global Venture 4.05 20.90 -30.77 2.77 -47.46 61.40 Tilak Ventures 6.19 21.14 -5.5 5.62 -80.58 137.79
Empower India 2.53 -17.86 -30.68 69.45 85.75 294.44 Franklin Industries 5.13 -4.65 -28.75 1.17 -79.35 18.57
Standard Capital Markets 1.84 14.29 -30.57 37.47 -50.15 270.48 Panafic Industrials 1.4 -5.41 -15.66 1.66 -78.08 11.49
Toyam Sports 4.05 20.90 -30.29 39.21 6.13 172.53 Arshiya 7.36 17.76 -15.6 2.86 -76.79 193.94
Monotype India 0.60 7.14 -30.23 2.89 -41.54 42.19 Sarveshwar Foods 9.93 5.3 -25.23 18.74 -76.30 971.95
Franklin Industries 5.13 -4.65 -28.75 1.17 -79.35 18.57 Quadrant Televentures 1.83 -6.15 -8.04 6.22 -73.57 112.05
Compuage Infocom 5.11 21.38 -27.62 1.11 116.82 43.82 Greencrest Financial 0.95 3.26 -12.04 4.58 -72.86 34.72
Sarveshwar Foods 9.93 5.30 -25.23 18.74 -76.30 971.95 Reliance Communications 1.93 11.56 -3.98 34.25 -71.46 533.75
Gen Pharmasec 2.69 20.63 -24.23 35.38 406.9 148.95 ACI Infocom 1.84 0 -23.01 1.19 -71.20 20.33
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 4 APR 2024. SOURCE: ETIG DATABASE AND BLOOMBERG.
mutual funds
BANDHAN FLEXI CAP
Seeking a change of fortune

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 23.56
FUND BENCHMARK CATEGORY AVERAGE

FACTS Energy 8.89
Technology 8.76
DATE OF LAUNCH
41.81 40.68
37.71 28 SEPT 2005 Automobile 8.68
CATEGORY
EQUITY Services 7.12
19.31 18.12 17.58
16.73 16.10 TYPE
13.95 The fund portfolio runs a skew
FLEXI CAP
towards financial stocks.
AUM*
`6,754 crore AS ON 29 FEB 2024
1-YEAR 3-YEAR 5-YEAR
AS ON 2 APR 2024 BENCHMARK
The fund has lagged the index S&P BSE 500 TOTAL
Top 5 stocks in portfolio (%)
and peers in recent years. RETURN INDEX
ICICI Bank 6.77
Rolling returns (%) FUND BENCHMARK WHAT IT Infosys 5.05
1-YEAR
16.77
COSTS HDFC Bank 4.74
17.20 NAV** Reliance 3.99
Industries
GROWTH OPTION
`180.074 Larsen & Toubro 3.31
14.98
3-YEAR IDCW**
The fund portfolio is heavily
14.97 `46.243 diversified with a long tail of stocks.
MINIMUM INVESTMENT
AS ON 29 FEB 2024
`1,000
14.22
MINIMUM SIP AMOUNT
5-YEAR
`100 Recent portfolio changes
12.99
EXPENSE RATIO # (%) New entrants
AS ON 2 APR 2024
1.87
The fund’s long-term track record indicates Indusind Bank, Kotak Mahindra Bank, Motilal
EXIT LOAD Oswal Financial Services, Amber Enterprises
healthy outperformance over 5-year time frames.
For units in excess of 10% India, Aurobindo Pharma, Bank Of Baroda,
of the investment, 1% will Bharat Heavy Electricals, and 39 others.
be charged for redemption
within 365 days Complete exits
*AS ON 29 FEB 2024
WHERE THE FUND INVESTS **AS ON 2 APR 2024 Aditya Birla Fashion and Retail, Aether Industries,
#AS ON 31 MAR 2024 Axis Bank, Bharat Electronics, Carborundum
Universal, Hindustan Unilever, IDFC First Bank,
JK Lakshmi Cement, and 8 others.
Portfolio asset
Fund
allocation
style box How risky is it?
Growth Blend Value Fund Category Index
95.08% Standard Deviation 12.40 12.71 13.18

Large
Equity
CAPITALISATION
Large cap 76.92

Sharpe Ratio 0.90 0.98 1.02
13.55
Medium
Mid cap
Small cap 9.53
Mean Return 16.33 17.59 18.61
FUND
BASED ON 3-YEAR PERFORMANCE.
4.89
Small
Cash
Debt 0.03
INVESTMENT STYLE
MANAGER The fund’s risk-return profile is not
among the best in its category.
MANISH GUNWANI (PIC)/
The fund currently runs a large-cap tilt with
AS ON 29 FEB 2024 VIRAJ KULKARNI AS ON 31 MAR 2024
modest allocation in mid and small caps.
2 MONTHS / 2 MONTHS Source: Value Research
Should Earlier known as IDFC Premier Equity,

this fund now runs a flexi-cap mandate.
decide exposure towards large caps vis-a-
vis mid/small caps. It shuns bias towards
outperformance across entire cycles. Its
current return profile remains poor, with
You Under recent change in stewardship, it has

gone through a makeover. Contrary to its
any particular style, picking ideas across
momentum, quality and value. Rather
chronic underperformance vis-a-vis index
even in its direct plan. It remains to be
Buy static allocation earlier, it now follows a
model-based countercyclical allocation to
than aim for outsized performance in
particular cycle, it strives for reasonable
seen if the recent makeover will improve
its fortunes.
pick of the week

Brigade Ent: Sustaining momentum

Strong launch pipeline, buoyant hospitality segment prospects, industry tailwinds to drive performance.
Fundamentals
A
fter a healthy performance in the December 2023 in the annuity portfolio. It plans to add 5.2 msf across office
quarter, the South India real estate player is ex- and retail projects, with a cumulative rental potential of `500 CONSENSUS
ACTUAL
pected to maintain momentum in the March 2024 crore. Furthermore, it aims to add 1,000 keys to its hotel port- ESTIMATE
quarter. It is expected to report revenue and PAT folio, and construction is expected to start in 2024-25. 2021-22 2022-23 2023-24 2024-25
growth of 33% and 42.9% respectively, say the consensus esti- The hospitality segment continues to gain momentum sup- Revenue (` cr) 2,998.80 3,444.60 4,332.10 5,022.00
mates of analysts compiled by Reuters-Refinitiv. The strong ported by an increase in domestic passenger travel growth. EBITDA (` cr) 493.50 859.00 1,114.90 1,385.50
launch pipeline is expected to support performance in the The management expects a further improvement in ARRs Net profit (` cr) 82.77 246.40 364.50 537.30
March quarter. The company enjoys a reputation for develop- and occupancy due to an increase in international travel from
EPS (`) 3.66 10.66 15.67 23.36
ing Grade A properties and its business portfolio comprises corporate clients and partners.
residential, commercial, retail and The company enjoys a debt-free resi-
Valuations PBV PE
DIVIDEND
YIELD (%)
Analysts’ views
hospitality projects. It has com- dential segment, while 90% of its debt in
pleted the development of over 83 the leasing and hospitality segment is Brigade Enterprises 6.82 70.17 0.21
million square feet (msf) of space securitised. The net debt-to-equity ratio DLF 5.83 92.54 0.45
(as of December 2023 quarter). 1 11
at the end of the December quarter was Macrotech Developers 9.25 69.48 0.09
Brigade stands to gain from Hold 0.7 times. “The strong balance sheet Godrej Properties 7.23 100.50 0.00
Buy
the real estate market’s upturn, ensures faster scalability with lower Oberoi Realty 4.57 34.50 0.26
propelled by growing consumer risk of leverage in future,” says a recent
confidence, stable interest rates,
improved affordability, rising in-
ICICI Direct report.
The stock has significantly outper-
Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
comes, luxury housing preference, formed the market benchmark in the
15 Mar 2024 ICICI Direct Buy 1,100
and India’s economic resilience. last year with 97.9% returns against
8 Feb 2024 HDFC Research Buy 1,179
Additionally, the commercial sec- 25% returns by BSE Sensex. However,
tor shows momentum with office it failed to outperform the sector bench- 8 Feb 2024 Antique Stock Broking Buy 1,344
Brigade’s 2024 launch pipeline includes 14
returns, new SEZ rules, and MNC mark. The BSE Realty index delivered 7 Feb 2024 Elara Capital Accumulate 1,153
residential projects in Bengaluru, Chennai and
expansions. “The industry is wit- Hyderabad with `10,000-cr development value. 133% returns in the last one year. 7 Feb 2024 Motilal Oswal Buy 1,250
nessing demand consolidation to- Selection methodology: We pick the
wards grade A developers, a trend that is projected to persist,” stock that has shown the maximum increase in ‘consensus Relative performance 225.3
forecasts Elara Securities. analyst rating’ during the past month. The consensus rating
100 MARKET PRICE: `955.65
The revenue visibility is robust aided by a healthy launch is arrived at by averaging all analyst recommendations after
pipeline for 2024 that comprises 14 residential projects across attributing weights to each of them (5 for strong buy, 4 for buy, 203.8
Bengaluru, Chennai and Hyderabad. Such projects cover 10.8 3 for hold, 2 for sell and 1 for strong sell). An improvement in
msf and have an estimated gross development value of `10,000 consensus analyst rating indicates that the analysts are get-
crore. The residential segment has witnessed a price increase ting bullish on the stock. Only stocks with at least 10 analysts SENSEX
124.4
over the last few months and a further jump in prices is an- covering them are considered. You can see similar consensus
ticipated in the future amid a better mix and preference for analyst rating changes during the past week in ETW 50 table.
5 APR 2023 ET REALTY BRIGADE ENTERPRISES 4 APR 2024
branded players.
Brigade Enterprises is compared with ET Realty and Sensex. Stock price and index
The management is also planning a significant expansion —Sameer Bhardwaj values normalised to a base of 100. Source: ETIG and Bloomberg
WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
STOCK ADVICE COMMENT
HOUSE PRICE (`) PRICE (`) UPSIDE (%)
Antique Stock Initiate with a buy rating due to steady steel pipe demand amidst infrastructure growth. Enriched product
Hi-Tech Pipes Buy 128 200 56.3
Broking mix, operational leverage, import substitution, and solar energy opportunities are key advantages.
Initiate with a buy rating due to likely improvement in profitability led by rising domestic scrap availabil-
Gravita India Kotak Securities Buy 925 1,200 29.7 ity and capacity expansion across existing/new divisions. Also, regulatory tailwinds and foray into new
recycling segments are key positives.
Assign buy rating due to its healthy execution, stable margin trajectory, decent order book and healthy
PNC Infratech ICICI Direct Buy 430 550 27.9 revenue visibility. Also, consummation of asset monetisation will drive scalability and future growth.
Reiterate buy rating for projected double-digit growth in March quarter from robust demand and market
Dalmia Bharat Motilal Oswal Buy 1,992 2,500 25.5 share gains. Ongoing capacity expansion, cost efficiency, innovation, and sustainability are key strengths.
Initiate with buy rating due to its healthy order book, growing opportunities in metro, railway and defence
BEML Prabhudas Lilladher Buy 2,785 3,345 20.1 segments, substantial planned capex and possibilities of strong margin expansion in the future.
Upgrade to buy due to healthy cement demand led by government's focus on infra. Also, focus on cost
Sagar Cements Geojit Buy 205 246 20.0 efficiencies and ramp up in new capacities will support growth and margins in the future.
SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) DOWNSIDE (%)
Clean Science and Maintain sell rating due to expensive valuations. Also, upcoming capacity augmentation in HALS, falling
HDFC Securities Sell 1,299 1,037 -20.2
Technology realisations and muted demand growth will impact revenue and margins in the future.
tax optimiser
NPS, perks can reduce tax to zero

Sudhir Kaushik of TaxSpanner.com tells readers how they can
optimise their tax by rejigging their incomes and investments.
P
une-based software profes-
sional Vinay Makhija pays a
low tax even though his salary
structure is not tax-friendly
and he doesn’t claim all the de-
ductions available to him. TaxSpanner INCOME
estimates that Makhija can reduce his
tax to zero if he opts for the NPS benefit
FROM EMPLOYER
offered by his company and also invests
in the scheme on his own.
Makhija’s taxable income before de-
INCOME HEAD CURRENT SUGGESTED
ductions is `11.39 lakh. If the net income
(after all deductions and exemptions)
Basic salary 6,02,000 6,02,000
is reduced to less than `5 lakh, he can
claim full tax relief under Section 87A.
Makhija pays rent and claims HRA ex- House rent allowance 3,01,000 3,01,000 Reduce this taxable
emption for `2.84 lakh. He also invests portion of the pay
the maximum `1.5 lakh under Section Special allowance 2,36,400 1,21,200 package.
80C. With the standard deduction of
`50,000, this brings down his net taxable Telephone and Internet 6,000 6,000
income to a little over `7 lakh.
He can bring it down further by opt-
ing for the NPS benefit offered by his Conveyance reimbursement 0 24,000 These perks are tax-
free on submission
company. Under Section 80CCD(2), up to of bills and subject
10% of the basic put in NPS is tax-free. If Newspaper allowance 0 9,000 to actual usage
his company puts `5,016 (10% of his basic within reasonable
pay) in the NPS every month, his taxable limits.
Food coupons 0 22,000
income will reduce by `60,200. It can
reduce by another `50,000 if he invests
Employer's contribution to Provident Fund 72,240 72,240 Up to 10% of basic
in the scheme on his own under Section
80CCD(1b). At 27, Makhija should put the salary put in NPS is
Contribution to NPS under Sec 80CCD(2) 0 60,200 tax-deductible.
maximum 75% in equity funds.
Next, he should ask his company
for some basic tax-free perks, such as TOTAL 12,17,640 12,17,640
reimbursement of fuel or conveyance
expenses, newspaper allowance and
food coupons. If he gets `24,000 (`2,000
a month) for conveyance, newspaper al- INCOME FROM OTHER SOURCES
lowance of `9,000 (`750 a month) and food
coupons worth `22,000 per year, his tax- Interest income 2,300 0
able income will reduce by `55,000. Capital gains 0 0 Defer tax by opting
If Makhija buys medical insurance for for debt funds.
himself and his parents, his net taxable Rental income 0 0
income will fall below `5 lakh, thus mak- TOTAL 2,300 0
ing it fully tax-free.
All figures are in `
Tax-saving investments
Denotes suggestion to increase Denotes suggestion to reduce
INVESTMENT CURRENT SUGGESTED

OPTION (`) (`)
Provident Fund 72,240 72,240
Life insurance 28,000 28,000

Vinay Makhija’s tax
PPF 10,000 10,000
TAX ON TAX ON TOTAL TAX SAVED WRITE
TAX ON OTHER CAPITAL TO US
`45,801
ELSS funds 40,000 40,000
Consider this SALARY INCOME GAINS
NPS under Sec 80CCD(1b) 0 50,000 new option to FOR HELP
save tax. CURRENT
PER YEAR Paying too much
TOTAL ADMISSIBLE 1,50,000 2,00,000
`45,323 478 0 tax? Write to us
at etwealth@
Other deductions `45,801 TAX RATIO
(Total tax as % of annual income)
timesgroup.com with
‘Optimise my tax’
EXEMPTION OR CURRENT SUGGESTED Total tax relief under Sec 87A as the subject. Our
DEDUCTION (`) (`) as income is below `5 lakh. EXISTING SUGGESTED experts will tell you
Save tax how to reduce your
HRA exemption 2,84,000 2,84,000 with health SUGGESTED tax by rejigging your
insurance 3.8% 0.0% pay and investments.
Medical insurance 0 45,000 for self and 0 0 0
parents.
TOTAL ADMISSIBLE 2,84,000 3,29,000 0
mutual funds
PORTFOLIO
DOCTOR
Aggressive savings make Not many
investors
early retirement possible
BCCL
know
whether
they have
invested in
Ramesh Jain is investing for his child’s education and retirement. Here’s what the doctor advised him:
the right
funds and if their
1 2
PORTFOLIO fund portfolio is on
CHECK-UP CHILD’S EDUCATION RETIREMENT INCOME: 15 years
track. The Portfolio
GOALS
7 years CURRENT NEED: `3 crore

Has been investing in PRESENT COST: `50 lakh (`1 lakh a month)
Doctor assesses the
a mix of small-, mid- health of the fund
FUTURE COST: `97.43 lakh CORPUS NEEDED: `8.27 crore
and large-cap equity
funds for past portfolio, examines the
5-6 years. schemes and their
AMOUNT EXISTING RECOMMENDED ACTION NEW
Aggressive INVESTMENT suitability with regard to
INVESTED (`) SIP (`) SIP (`)
investments have
built a sizeable
the goals and, if
portfolio. Axis Nifty Midcap 50 Index 12,494 3,000 3,000 required, recommends
Continue SIPs in these index funds.
Invests largely in corrective measures. The
index funds. Should Axis Nifty Smallcap 50 Index 15,809 4,000 4,000
advice given is based on
consider ETFs instead.
Fund has done well but small caps are looking
Funds are mostly Axis Small Cap 11,33,956 0 overvalued. Consider shifting to large-cap HDFC 0
the performance of the
good but some 1
Sensex index fund for stable returns. funds, the risk profile of
laggards need to be the investor as well as
removed. HDFC Sensex Index 4,05,403 10,000 Continue SIPs in this stable index fund. 10,000
Portfolio tilted
his financial goals.
towards small and ICICI Pru Multi Asset 1,65,875 0 Hold this hybrid fund for portfolio stability. 0
mid caps. Be ready for
volatility. Mirae Asset Large & Midcap 7,66,121 15,000 Continue SIPs in this stable large- and mid-cap fund. 15,000
Assumptions used
Invest more in gold to
in the calculations
hedge against Continue SIPs in this stable large- and mid-cap fund.
HDFC Large and Midcap 1,68,058 12,500 Hike amount by 5% every year. 12,500 INFLATION
inflation. Education For all
Set up an emergency Continue SIPs in this outperforming flexi-cap fund. expenses other goals
HDFC Retirement Savings Equity 6,94,651 20,000 Hike amount by 5% every year. 20,000
fund to take care of
5-6 months’
household expenses.
Motilal Oswal Nifty Midcap 150 6,174
Continue investing in this index fund. Increase SIPs to
2,000 `8,000 and hike by 5% every year. 8,000 10% 7%
Take life insurance This fund has underperformed. Shift corpus and SIPs RETURNS
cover of at least Motilal Oswal Nifty Smallcap 250 18,052 6,000 to Motilal Oswal Nifty Midcap 150. 0
Equity funds Debt options
`2 crore to safeguard
Continue investing in this stable mid-cap fund.
goals. Nippon India Growth 7,482 7,500 7,500
Hike SIP amount by 5% every year.
12% 8%
This small-cap fund has done well. Continue SIPs and
Nippon India Small Cap 5,000 5,000 hike amount by 5% every year. 5,000
Note from
the doctor Continue SIPs in this outstanding flexi-cap fund.
Portfolio has too Parag Parikh Flexi Cap 4,71,177 20,000 Increase amount by 5% every year. 20,000 PORTFOLIOS
ANALYSED BY
much equity
This value fund can spring positive surprises. RAJ KHOSLA,
exposure. Add 2 SBI Contra 4,87,969 20,000 Continue SIPs and hike by 5% every year. 20,000
Managing Director
some more debt
and Founder,
investments. Continue investing in this stable mid-cap fund.
SBI Magnum Midcap 7,11,698 10,000 Hike SIP amount by 5% every year. 10,000 MyMoneyMantra
Contribute more
to Provident Fund Continue SIPs in this index fund. Hike amount by
through Voluntary
SBI Nifty Index 21,160 5,000 5% every year. 5,000
WRITE
Provident Fund.
Tata Digital India 12,378
This tech fund has no role in portfolio. Shift corpus
0 to SBI Nifty Index fund. 0
TO US
Opt for balanced FOR HELP
allocation to Start SIPs of `5,000 in this gold fund as a hedge If you want your portfolio examined,
equity and debt SBI Gold 8,394 0 against inflation. 5,000
write to etwealth@timesgroup.com
funds in NPS. with ‘Portfolio Doctor’ as the subject.
Keep contributing and don't withdraw before Mention the following information:
Review Provident Fund 4,00,000 20,000 retirement. 20,000
 Names of the funds you hold.
investments and
 Current value of the investment.
rebalance at least Keep contributing to this low-cost scheme.
NPS 6,00,000 17,000 Hike amount by 5% every year.
17,000  If you have SIPs running in any
once in a year. of them.
 The financial goals for which you
Reduce risk when Keep contributing to the scheme to build
PPF 9,00,000 12,500 tax-free corpus.
12,500 invested.
goal is near so  How much you need for each
that you don’t , financial goal.
miss the target. TOTAL `70,11,851 `1,89,500 The goals can be reached using the mutual
funds marked in the same colour. `1,94,500  How far away is each goal.
NG 3.7 PubDate: 08-04-2024Zone: ETWealthDelhi Edition: 1 Page: DETWDPBP User: satyam.shukla Time: 04-05-2024 21:19 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.
In Uma Shashikant’s column, ‘Help family
of derivative trading. Some may label me
Valuable insight
without a trade-off,’ she urges the benefac-
tors to not have excessive expectations of less adventurous or more conservative, but
returns from their beneficiaries. Such ex- I have deliberately avoided following the
pectations, she warns, can strain familial
relationships. Shashikant’s suggestion de-
into stock selection advice of my so-called investment advisers
from brokerage firms, who often push for
risky ventures. The rampant speculation,
serves wholehearted acceptance without This week’s cover story ‘9 growth
hesitation. However, it seems somewhat akin to an institutionalised casino environ-
stocks to bet on’ made for a com-
one-sided. Many readers, in fact, find ment in derivative trading, calls for strin-
pelling read. The article was en-
themselves in the position of being ben- gent regulations.
lightening and offered invaluable
eficiaries. They, too, could benefit from Amit Brahmo
insights into selecting growth
guidance on expressing gratitude towards stocks, as well as the rationale As a subscriber of ET Wealth for the past 15
their benefactors and restructuring their for investing in these particular years, I’ve found immense value in the articles
attitudes towards those who have gener- companies. My heartfelt thanks it offers. One recurring topic is ‘asset class
ously assisted them, perhaps without any to ET Wealth for brightening my balancing’, which stresses on the importance
obligation to do so. day and helping me make relevant,
of periodically adjusting investments across
K.R. Unnithan informed choices when it comes to
different asset classes. It’s crucial to recognise
stock investing.
The article ‘6 Daniel Kahneman principles that rebalancing involves selling from one
Darshan Godbole
to avoid losing money’ made for an insight- asset class, such as debt, and reinvesting in
ful read. Kahneman’s assertion regarding another, such as equity. However, what of-
the irrational behaviour of humans has undoubtedly provides a new dimension to trading couldn’t have been published on ten goes unaddressed in these articles is the
indeed brought a fresh perspective to mi- microeconomic analysis. However, consum- a more fitting day (April Fool’s Day). The impact of capital gains tax incurred while re-
croeconomics. Nevertheless, more real-life ers often strive solely for maximum satisfac- temptation of quick and remarkable prof- deeming the investments. I urge ET Wealth to
examples may be needed to substantiate tion, which may not always align with their its has lured many investors into risky publish an article delving into the implications
his propositions. While exceptional inci- rational decision-making. ventures, often resulting in significant of capital gains tax on asset class rebalancing.
dents may take place, these cannot serve S. Ramakrishnasayee losses. Despite my 15 years of experience Such insights would greatly benefit the read-
as adequate examples. A theory must en- in the stock market, I’ve strictly adhered ers in their investment strategies.
dure the test of time. Kahneman’s analysis Dhirendra Kumar’s article on derivative to delivery trading and have steered clear Dipankar Mukherji
5 ways for home loan borrowers to reduce EMIs

by Naveen Kumar banks and housing finance companies,
there is a big difference in the interest
T
he RBI has kept the repo rate un- rates they charge. If you have not com-
changed for the seventh consecutive pared the interest rates, it is high time
time, at its bimonthly monetary that you do so. Also check if your lender is
policy committee meeting on 5 April. charging a higher rate even under EBR.
The previous repo rate hike happened in “If you have loans with higher interest
February 2023 when it was raised from rates or want to benefit from potential rate
6.25% to 6.5%. An overall hike of 2.5% in reductions in the future, refinance your
the repo rate before the pause has pushed loans. This involves transferring your
the interest rate on home loans to a new existing loan to another lender offering
high level in the last 4-5 years. The cur- lower interest rates or better terms,” says
rent pause in the repo rate means that Adhil Shetty, CEO, Bankbazaar.
home loan borrowers have to continue As most home loans are on a floating
paying higher EMIs on the prevailing rate basis and there is no penalty for shift-
high interest rate for some more time. It ing your loan, the only cost involved will
may take 3-6 months for the interest rate be the fee charged by the new lender. If you
reduction cycle to start. However, you can get a competitive rate, a balance transfer
still reduce your home loan EMI. a home loan with a higher rate if they do home loan outstanding of `40 lakh at 9%, may help you bring down your EMI.
not have a good credit score. If you repay extending the tenure to 20 years can help
1. Ask lender to shift your loan your loan in a disciplined way, your credit you reduce your EMI by `14,681. 5. Make partial prepayment
to a lower interest rate score can improve significantly. Ask your However, this option may not work for Floating rate home loan borrowers have
If your home loan is old and not under lender to reduce your home loan rate as all borrowers, especially those closer to great flexibility of making partial prepay-
EBLR (External Benchmark-based your credit score has improved and you retirement. Most lenders offer a tenure ments without any penalty. They can use
Lending Rate), act now. You are probably may get better rates in the market. only till 60 years. So a borrower at 45 may this to reduce their loan EMIs. Any par-
paying a higher interest rate than the not be able to extend the tenure beyond 15 tial prepayment has a significant impact
lender may be charging its new home loan 3. Go for tenure extension years. Remember that the longer the ten- on your loan tenure as this amount is com-
borrowers under EBLR regime. You can If you are facing financial stress and want ure of loan, the higher the interest outgo. pletely utilised towards bringing down
request your lender to shift the loan under to get relief by reducing your loan EMI, While you can use tenure extension as a the outstanding principal amount. As a
EBLR regime. This may save you a sizable consider extending the tenure of loan. short-term measure, restore the old ten- result, the tenure of the loan comes down
interest and when the interest rate starts This option works well only for those bor- ure or make partial prepayment to accel- and the loan gets repaid faster. However, if
falling, you will get its benefit quicker. rowers who have paid a significant part of erate repayment as finances improve. you do not wish to reduce the loan tenure,
their principal and have scope for tenure you can ask your lender to reduce your
2. Use credit score to lower rate extension up to their retirement. For 4. Transfer loan to new lender EMI after making a substantial prepay-
Many borrowers are compelled to go for instance, if you have 10 years left on your Though a home loan is offered by many ment.
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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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Does The New Tax Regime Suit You?: HE Conomic Imes

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NG 3.7 PubDate: 08-04-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWDFP User: satyam.

shukla Time: 04-05-2024 20:22 Color:

THE ECONOMIC TIMES DO WE

Does the new tax

Sec 80C investments Compliance-free

HRA and LTA Wider tax slabs

NPS deduction Lower tax rates

Home loan `7 lakh tax-free

Does the new tax

SEC 80C INVESTMENTS COMPLIANCE-FREE

By Babar Zaidi claim many tax deductions and

“The choice of tax

several factors, in- deductions Deduction for Section

Time to select tax regime

Sourav Ghosh, 38 years, Kolkata

tax regime up to `10 lakh can reduce his tax to zero,”

PPF: Continue OLD TAX REGIME NEW TAX REGIME

investing to Income 19,92,000 19,92,000

Term Our suggestion

Shuchi Gupta, 28 years, Noida

“The new tax regime

It suits those who Interest income 10,20,000 10,20,000

Total deductions 1,00,000 Nil

KARAN BATRA Tax payable 97,760 65,520

means for and 2023. The only consola-

Kahneman for investors

mysteries human beings are fundamentally rational.

ITR forms for 2023-24 released

Can active funds deliver more?

Most active funds lagging

How to use PAPER WORK

smart things to know

Favourable industry trends

by Sameer Bhardwaj Low supply, high demand

Also, oversupply in Asia and LNG ASIA $/MMBTU

89.8 90.4 27 Mar 2023 Source: Reuters-Refinitiv. 1 Apr 2024

mainly by US LNG exports, is expect- ness in industrial and commercial sectors.

“Our business from policies

Do we learn from our mistakes?

invest, but they don’t give up easily. When

ET WEALTH TOP 50 STOCKS

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

LAGGARDS & LEADERS

ETW FUNDS 100

EQUITY: FLEXI CAP

ETW FUNDS 100 RETURNS (%)

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

DEBT: CORPORATE BOND

4 Debt: Banking and PSU

Methodology EQUITIES (figures over the past one year)

loans and deposits

LOANS & DEPOSITS

Top five bank FDs

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

PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER

PENNY STOCKS UPDATE

Top price gainers Top volume gainers

Top price losers Top volume losers

BANDHAN FLEXI CAP

Seeking a change of fortune

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

Point-to-point returns (%) BASIC Financials 23.56

FUND BENCHMARK CATEGORY AVERAGE