The Economic Times Wealth January 162023

THE ECONOMIC TIMES INCREASE
THE VALUE
OF YOUR
HOUSE
P10
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | January 16-22, 2023 | 24 pages | `8
IS IT TIME TO
GO PASSIVE?
Persistent lag in several actively managed funds cannot be ignored any
longer. Focus on investing principles no matter which path you take. P2
Don’t get Find out

carried how
away by to gift
all the money
investing Why turnover to your Here’s what
sermons ratios matter grandkids Himachal has in
P7 for stocks P8 P13 store P14
cover story
02 The Economic Times Wealth January 16-22, 2023
IS IT
TIME TO GO
PASSIVE?
Persistent lag in several actively managed
funds cannot be ignored. Focus on investing
principles before pursuing either path.
PHOTOS: GETTY IMAGES
By Sanket Dhanorkar passive patrons bow only to the index. They that are often overlooked. that of its benchmark index (See: Fair
I
scoff at the futile pursuit of alpha and be- comparison?). Sebi’s new rules on clearly
n recent years, the active versus pas- lieve the humble index holds the aces. What the numbers say defined fund mandates and investible
sive debate has intensified. On social Amidst this tussle, the truth gets lost Let us dive into the essence of the argu- universe of securities have made such a
media platforms, it’s a slugfest re- somewhere. The numbers thrown around ment—the inability of active funds to beat comparison more credible.
plete with mudslinging, half-truths favouring either argument tell a story, but the index. These funds charge a hefty fee For the purpose of this comparison, we
and outright lies. The active backers often mask perspective. One can get lost in for giving better returns than the index. considered the regular plan variant of the
swear by the wisdom and capabilities of the the statistics and risk losing sight of basic Their failure to do so consistently would respective equity funds. While direct plans
haloed fund managers. They frown upon investing principles. In this week’s cover make simple indexing the superior alterna- yield higher return, these command a tiny
indexing as lazy, and insist that better story, we distil the numbers and reveal the tive. The typical approach to gauge this is share of the retail assets. Bulk of the money
rewards await discerning investors. The true picture. We also discuss finer aspects to compare the funds’ performance with continues to be routed through regular
Large cap, mid cap and large & mid cap Large cap, focused and ELSS funds have
funds have struggled over 3 years disappointed over 5 years
Flexi cap funds are finding the large cap bias in their portfolio a drag. Only one large cap scheme has beaten its index over the past five years.
3 YEARS (POINT TO POINT) 5 YEARS (POINT TO POINT)
AVG FUND INDEX % OF FUNDS % OF AUM AVG FUND INDEX % OF FUNDS % OF AUM
FUND CATEGORY RETURN RETURN OUTPERFORMING OUTPERFORMING FUND CATEGORY RETURN RETURN OUTPERFORMING OUTPERFORMING
(CAGR %) (CAGR %) INDEX INDEX (CAGR %) (CAGR %) INDEX INDEX
Value 19.0 17.2 67% 78% Value 9.3 11.5 22% 51%
Flexi Cap 16.2 17.2 32% 41% Flexi Cap 10.3 11.5 42% 46%
Focused 15.0 17.2 38% 31% Focused 9.6 11.5 25% 10%
Large & Mid Cap 17.4 19.9 11% 7% Large & Mid Cap 10.4 11.7 33% 44%
Mid Cap 22.1 24.6 20% 12% Mid Cap 10.7 11.2 45% 66%
Small cap 29.2 26.4 64% 79% Small cap 11.7 6.6 86% 95%
ELSS 16.0 17.2 37% 32% ELSS 9.7 11.5 19% 18%
Large Cap 13.3 15.2 17% 25% Large Cap 9.9 12.0 4% 4%
Compiled by ETIG Database. indices selected for comparison are Nifty100TRI (large cap), Nifty500 TRI (flexi cap, focused, value and ELSS), Nifty Midcap150 TRI (mid cap), Nifty Smallcap250 TRI (small cap) | Data as on 31 Dec 2022
cover story
The Economic Times Wealth January 16-22, 2023 03
plans, making these more relevant for this

study. For the sake of uniformity, we have In 3-year frames, value funds Mid cap and value funds have
also opted for a common benchmark index
within each fund category. Further, only
have seen weakest outcomes disappointed over 5-yr frames
schemes with a minimum five year track Value funds have, however, made a strong comeback of late. Only few mid cap funds have delivered excess return.
record count for this analysis. Rolling 3 years Rolling 5 years
With that out of the way, let us delve into
AVG FUND AVG INDEX % TIMES AVG FUND AVG INDEX % TIMES
the findings. Clearly, the numbers speak FUND CATEGORY RETURN RETURN OUTPERFORMED FUND CATEGORY RETURN RETURN OUTPERFORMED
for themselves (see performance tables). (CAGR %) (CAGR %) INDEX (AVG) (CAGR %) (CAGR %) INDEX (AVG)
Among the most popular fund categories,
large cap equity funds continue their tor-
Value 10.9 12.2 41.5 Value 11.2 12.1 36.4
rid run. Only one scheme beat its index Flexi Cap 12.9 12.2 55.0 Flexi Cap 12.3 12.1 54.6
over the past five years. The average ac-
tive large cap fund has lagged its index by Focused 12.6 12.2 56.4 Focused 12.4 12.1 53.8
a steep 2.14% annualised over past five
years. Large cap funds have fared better Large & Mid Cap 12.7 13.1 43.4 Large & Mid Cap 12.5 13.0 40.5
over three year time horizons, but only
marginally. The persistent lag relative Mid Cap 14.5 13.8 56.4 Mid Cap 12.9 13.5 38.0
to index (visible in rolling return) can no
longer be ignored. Experts maintain that
Small cap 15.5 6.5 95.4 Small cap 13.5 6.5 97.5
large cap funds have been handicapped ELSS 12.3 12.2 50.6 ELSS 12.4 12.1 46.5
ever since the 2018 circular restricting in-
vestible universe to the top 100 stocks. The Large Cap 11.8 12.2 42.9 Large Cap 11.5 12.2 32.3
story is well and truly over for active large
cap funds, insists Abhijit Bhave, CEO, Compiled by Primeinvestor.in | Rolling 3 year return based on six years data, Rolling 5 year return based on last eight years data.
Fisdom Private Wealth. “There is simply

no flexibility for large cap funds to beat the alpha from security selection, says Roopali fund categories too. Flexi cap funds are funds have stayed ahead of the index only
index. Index strategies make more sense Prabhu, CIO and Co-head, Products and finding the large cap bias in their portfolio 55% of the times over three and five year
in this segment.” With deeper institution- Solutions, Sanctum Wealth. a drag. In terms of assets, just 41% and 46% time frames. ELSS funds have also been hit
alisation of the market, information asym- But this pain is no longer just limited to of AUM under flexi cap funds have aced by the same plague. Hardly any funds are
metry in larger companies is thinning rap- pure large cap funds. The phenomenon is the benchmark over three and five years, consistently able to deliver excess return—
idly. There is limited scope for extracting catching up with other large cap oriented respectively. In rolling returns, flexi cap the larger sized funds are particularly
cover story
vulnerable. Prabhu observes, “At larger run ahead of the index. But it is hard to say
sizes, the ability of flexi cap funds to move if your fund will continue to be the winning
Is it a fair comparison? between market capitalisations without

facing liquidity risk gets impeded. They
horse in coming years. Vidya Bala, Head –
Research, Primeinvestor.in, argues, “The
cannot exit stocks without taking hit of im- outperformance comes from just a few
pact cost, which becomes a hindrance for funds pushing the averages. An investor
Some people argue that an active alpha creation.” has to be plain lucky to identify such funds.
fund’s performance cannot be Many active funds in these segments And even there, sustained outperformance
compared to the index itself. They are in fact guilty of closet indexing. They appears difficult.” Further, the extent of
insist this ignores a basic reality align portfolios close to the benchmark in outperformance is slowly getting narrower
of index investing—that a passive a bid to ensure low deviation in outcomes. (see chart). A note by Kotak Institutional
investor does not actually get to “The fear of underperformance often leads Equities observes, “Although market
buy the index in all its purity. To
to fund managers taking underweight or cycles weigh on performance in several
get index exposure, he must buy
neutral positions in heavyweight bench- ways—better performance in weaker or
a passive fund that mimics the
mark stocks despite low conviction. In a high-dispersion markets—aggregate al-
index. There are costs in running
a passive fund, just like for an way, these fund managers are falling prey pha delivered by the industry has declined
active fund. Meanwhile the index to the tyranny of their benchmarks,” re- in the past 15+ years.”
is just a mathematical construct—it marks Harshad Patwardhan, CIO, Girik Now for most investors, large cap and
does not incur real-time costs of Capital. But these continue to charge a flexi cap funds occupy prime space in the
buying and selling the underlying large fee. To be sure, at any given time, portfolio. This means that the core of your
stocks. So the fairer comparison there may be a few active funds that will portfolio is not consistently delivering the
is to benchmark the active fund’s
performance to an actual index
fund, rather than the bare-bones
index itself. Outperforming active funds dwindle
For this perspective, we need Number of funds outperforming index has declined drastically.
to pit every active equity fund
against a comparable index fund
formance has improved, but still 100
or ETF, instead of the benchmark Percentage of funds outperforming benchmark
points to a poor strike rate of 25%
index. But apart from the large based on 5-year returns
of the universe. Over five years,
cap space, index funds and ETFs
there is no change in the outcome.
catering to the broader segments 80
Only one active large cap fund
haven’t been around for long. This
beat its index counterpart. For
makes such comparison difficult,
the mid cap basket, Motilal Oswal
for now. Still, we ran the numbers
Nifty Midcap 100 ETF provides 60
again, wherever comparison is
a comparable benchmark with a
possible—namely, in the large cap
five year track record. Here, the
and mid cap segments. So does
outcomes swing in favour of the
this revised comparison paint any 40
active strategies. Over five years,
different picture?
70% of mid cap funds beat the
Let us start with the large cap index-based offering. These are
funds. The findings reveal that healthy odds. Over three years, 20
over three years, six large cap the outperformance was lower at
funds have beaten the HDFC 40%, but is a 2x improvement over
Nifty50 Index Fund. So the outper- comparison with the index itself.
0
Jul Oct Jan Apr Jul Oct Jan Apr
2006 2008 2011 2013 2015 2017 2020 2022
Source: Kotak Institutional Equities
Performance of active funds can vary inversely with market returns

Several studies have revealed greater share of funds/AUM outperform during periods of lower market returns
% funds outperforming % AUM outperforming
3 years 5 years 3 years 5 years 68

62
59
54 55 55
36
33 32 32
29 28 30
24
21
14
First quarter (High) Second quarter Third quarter Fourth quarter (Low) First quarter (High) Second quarter Third quarter Fourth quarter (Low)
For period between May 2004 - May 2022. The four quartiles stand for market return quartiles | Source: Kotak Institutional Equities
cover story
outcomes you are paying for. With odds of select few schemes are driving this. Value
beating the market no better than a simple funds have faced a tough ride for several
Give exotic ETFs a miss for now toss of the coin, surely simple indexing
offers a better alternative? Yes, the time
years but have made a strong comeback of
late, with a big swing to 78% of AUM out-
has now come to make that shift in the performing the index compared with just
very heart of your portfolio. “Within ac- 15% as of December 2021. Value offerings
Nowadays, a lot of innovation is But this is the least of ETFs’ tive funds, outperformers keep changing clearly respond favourably only under spe-
happening within the realm of problems. Barring a few, trading very often. If you want to simplify matters, cific market conditions.
passive funds. AMCs are par- volumes of most ETFs are very just go with passive funds,” asserts Rohit
ticularly offering newer and more poor. This lack of liquidity often Shah, CEO, GYR Financial Planners. Most Beyond the numbers
exotic flavours in ETFs. Apart creates wide divergences between experts recommend a simple combination Now, let us take a step back. The numbers
from the flux of sector ETFs, there the fund NAV and the price at of Nifty50 index and Nifty Next50 index for have had their say. Beyond the mathemati-
are unique thematic and factor which it can be bought or sold.
60-70% of an investor’s portfolio. Venturing cal supremacy of either investing strategy,
driven ETFs on offer. In terms of What you save in expense ratio is
beyond this universe is still tricky. more critical matters deserve your atten-
expense ratio, ETFs come at even more than nullified by this impact
Meanwhile, the jury remains out on tion. Whether you buy the market (passive)
lower cost than index funds. ETFs cost. This gap is over and above
charge as low as 0.05% even as the tracking difference common to mid cap strategies. This despite a dismal or beat the market (active) is irrelevant
the average index fund charges both index funds and ETFs. There showing in recent years. There are only a if you can’t invest a sizeable amount and
much higher. Surely this must give are no such issues with index handful of funds that continue to deliver maintain investing discipline in the first
ETFs an added edge? The reality is funds. Even as indexing has its excess return with a degree of consistency. place. That 2% higher CAGR that you are
different. ETF investors must bear merits, it works better when done Prabhu argues, “There is still a lot of infor- banking on from your active fund will
additional costs apart from the via index funds and not ETFs. It mation asymmetry in the mid cap space count for little if it is not backed by a big
expense ratio. Unlike index funds, is better to identify and invest in as it is not well covered by institutional enough outlay. If you invest erratically,
ETFs are bought and sold on the ETFs with high trading volumes. research. This can be exploited to deliver constantly moving in and out of the mar-
exchange from other unit hold- Where same strategies are on of- alpha.” You still have to be picky while ket, you will experience a return gap, be it
ers. This attracts brokerage costs, fer via both index funds and ETFs, choosing funds to pursue index-beating re- an active fund or an index fund. Make your
apart from taxes and depository experts recommend sticking with turn in this space. Only five mid cap funds foundations strong before you consider
charges. index funds. boast a strike rate exceeding 70% over finer aspects like active or passive. “More
five year time frames. Small cap funds are than security selection, it is the softer
perhaps best positioned to deliver superior aspects like asset allocation, rebalancing,
outcomes to the index. Yet, size is crucial sizing of bets, holding period and discipline
in this category, Prabhu observes. Small that contribute most to investing out-
cap funds that grow too big end up with a fat comes,” insists Shah.
tail of stocks that may not have quality or Finally, what path you take is up to
liquidity hygiene. Even so, it is pertinent to your comfort and preferences. If you can
note that tapping the broader market with stick with active strategies through their
an index fund or ETF can come at a steeper natural ups and downs over market cycles,
cost than normal. Beyond frontline index perhaps you don’t need to make any shift.
based funds, the tracking difference gets If you are bewildered by the choice of ac-
bigger. The main reason is the sometimes tive funds, their differing strategies and
poor liquidity in broader markets. inconsistent outcomes, make life easier
Among other categories, focused funds by opting for index based funds. The sole
have lagged miserably in recent years. purpose of an index fund or ETF is to
Longer term data points suggest these have mimic the performance of the target index.
delivered decent outcomes, but again only It simply buys the same stocks in the same
proportion as held by the index. It carries
no lofty ambitions of beating the market.
Much of underperforming AUM Low dispersion hurts It shows no style drift. It is not waylaid by
star fund manager exits. It doesn’t need
can be blamed on index hugging active managers regular monitoring nor does it warrant
fund-hopping. Shifting your core portfolio
Industry has nearly 20-25% of AUM that is More active funds tend to underperform towards passive funds will remove many
underperforming, along with lowest active share when market breadth is narrow. of these headaches. Fetching only market-
Underperforming AUM (%) Dispersion quartile like return may not sound exciting, but
pursuing active strategies is not getting
Active share quartile 3 years 5 years % of funds outperforming % AUM outperforming you that anyway.
Do not go for index strategies thinking
these are a panacea for all evils. These are
20 45 no safer than active funds. If the markets
Quarter 1 (Low) Quarter 1 (HIgh)
fall, these will fall in line with the index.
27 75 Active funds may see a lesser or bigger fall.
While not safer, index funds or ETFs are
simpler products offering a ‘fill it, shut it,
7 37 forget it’ experience. By design, these will
Quarter 2 Quarter 2 also exhibit lower return than the index.
14 76 The fund’s expense ratio, cash position,
rebalancing hurdles, etc prevent it from
capturing index moves in entirety. But
16 37 this is to be expected, up to a reasonable
Quarter 3 gap. Finally, do not assume the lowest cost
Quarter 3
20 58 index tracker is superior to others. Many
other factors can go into creating divergent
outcomes. Just pick a fund with a reason-
24 ably low cost and stick with it for your in-
10 Quarter 4 (Low) vesting time horizon.
Quarter 4 (High)
44
9
For period between May 2004 - May 2022 | Note: Dispersion measures the spread Please send your feedback to
Note: Active share is a measure of deviation in fund portfolio from of returns within the constituents of the broader market | Source: ACE MF, Kotak etwealth@timesgroup.com
benchmark index | Source: ACE MF, Kotak Institutional Equities Institutional Equities
family finance
High savings to AJAY & SUPRIYA BAJAJ, 38 & 36 YEARS, SERVICE, MUMBAI
ease journey How to invest for goals

MONTHLY
High income and an early start to investments will GOAL
FUTURE COST (`) /
TIME TO ACHIEVE
RESOURCES
USED
INVESTMENT
NEEDED (`)
help Mumbai-based Bajajs to meet all their goals. Emergency fund 7.1 lakh Cash -
by Riju Mehta Portfolio Buying a house 2.65 crore / 1 yr

Cash, FD, Ulip,
-
A
real estate
jay & Supriya Bajaj are both em- ASSET CURRENT
VALUE (`) Buying a car 8.48 lakh / 1 yr Cash, FD -
ployed and bring in a combined
salary of `4.4 lakh a month. Real estate 55.92 lakh
1st child’s education 52.4 lakh / 15 yrs Stocks -
They have a two-year-old child
and live in a rented house in Cash 90.01 lakh
PPF, debt funds,
Mumbai. They also own a house worth 2nd child’s education 62.4 lakh / 18 yrs -
Debt insurance
`55.9 lakh, which fetches them a rent of
`11,000 a month, and for which they have EPF 1.35 crore 1st child’s wedding 2.2 crore / 26 yrs Stocks, mutual funds -
taken a loan of `18.5 lakh, paying an EMI
PPF 21.1 lakh
of `28,710. Their goals include building 2nd child’s wedding 2.7 crore / 29 yrs PPF 31,864
an emergency corpus, buying a car and a Fixed deposits 13.1 lakh
house, saving for two children’s education Retirement 1.5 crore / 22 yrs Bonds, NPS, EPF, PPF -
and weddings, and their own retirement. Insurance 11.25 lakh
Financial planner Anup Bansal from Investible surplus
Bonds 7.52 lakh 31,864
Scripbox suggests the couple repay their needed
home loan with their cash holding. Next, NPS 3.42 lakh Annual return on corpus assumed to be 8%. Inflation assumed to be 6%.
they should build an emergency corpus
of `7.1 lakh by allocating their cash and Debt funds 2.95 lakh
investing it in a liquid fund. They want
Insurance portfolio
Equity
to buy a car worth `8.48 lakh in a year,
for which they can use a portion of their Mutual funds 42 lakh
EXISTING SUGGESTED
cash and fixed deposit. In a year’s time, EXISTING
Stocks 31.45 lakh INSURANCE COVER
MONTHLY
SUGGESTIONS
MONTHLY
they also want to buy a house worth `2.65 PREMIUM PREMIUM
crore. For this they can assign their exist- (`)
Total 4.14 crore (`) (`)
ing house, a part of their cash and fixed
deposit, and the proceeds from their Ulip. Life insurance
LIABILITIES CURRENT VALUE (`)
In addition, they will have to take a loan of
`1.06 crore for 20 years, which will result Term plan (1) 1.5 crore 1,083 Continue 1,083
Home loan 18.5 lakh
in an EMI of `94,199. Traditional
For their existing and future child’s Total liabilities 18.5 lakh 8 lakh 1,750 Continue 1,750
plans (2)
higher education in 15 and 18 years, they
will need `52.4 lakh and `62.4 lakh, respec- Ulip (1) 10.1 lakh - Continue -
tively. For the former, they can allocate
Net worth `3.9 crore
stocks, and for the latter, they can use the TOTAL 1.6 crore 2,833 - 2,833
Cash flow
PPF, debt funds and insurance proceeds.
No additional investment is needed for Health insurance
these goals. For the children’s weddings in EXISTING SUGGESTED
26 and 29 years, they will need `2.2 crore (`) (`) Employer’s - - - -
and `2.7 crore, respectively. For the for-
Income 4.51 lakh 4.4 lakh
mer, they can assign their stocks and mu- Include child and raise
tual funds, and for the latter, the remain- Own 5 lakh 737 1,250
Outflow cover to `10 lakh
ing PPF corpus. Besides, they will have to
assign an SIP of `31,864 to meet the latter Household 60,833 60,833
expenses TOTAL 5 lakh 737 1,250
goal. For retirement, they will need `1.5
crore in 22 years, and can allocate their Critical illness &
Rent 27,000 -
EPF, PPF, NPS and bonds. No additional accidental - - - -
investment is needed for the goal. After us- Loan EMI 28,710 94,199 disability
ing all the existing resources and fresh in-
vestment, the couple will still be left with a Insurance 3,570 4,083 TOTAL - - - -
large investible surplus of nearly `2.1 lakh premium
a month, which can be invested in mutual Investment 65,000 2.75 lakh Insurance cost - 3,570 - 4,083
funds for wealth creation.
Premiums are indicative and could vary for different insurers.
For life insurance, Ajay has a term plan Total outflow 1.85 lakh 4.34 lakh
of `1.5 crore, two traditional plans and a
Ulip, all worth `18 lakh. Bansal suggests Surplus 2.65 lakh 5,885
they continue with these and don’t take
any more life cover. For health insurance, Write to us Looking for a professional to analyse your investment
portfolio? Write to us at etw57ealth@timesgroup.com
they have a `5 lakh cover. They should in-
clude their child and raise the cover to `10
Financial plan by Anup Bansal,
Chief Business Officer, Scripbox
for expert with ‘Family Finances’ as the subject. Our experts will
study your portfolio and offer objective advice on where
lakh, at a cost of `1,250 a month. advice and how much you need to invest to reach your goals.
guest column
Just get the basics

right. Rest will follow
All the macro gyan in the world doesn’t help us investors make money.
Only finding good stocks and funds does, says Dhirendra Kumar.
T
here’s this funny T-shirt slogan in economic factors do not matter—of course
Hindi, which supposedly started they do. What I am saying is that you and
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH as a notice in some college canteen, I gain no advantage from trying to take
“Yaha par gyan na baante, yaha those factors as inputs into our own deci-
money sab gyani hai.” Perhaps nowhere

is this more true than in investing. Over
sion making. There’s no point in doing
that. Let’s just get the basics right, the
mysteries decades of thinking, talking and listening

about investing, I still continue to be amazed
larger issues will take care of themselves.
Or not, it doesn’t matter much.
by the sheer amount of conversation that
revolves around esoteric economic factors Please send your feedback to
that the investor should actually not pay any etwealth@timesgroup.com
attention to. Every day, analysts, economists,
investment managers and other sundry talk-
The job of the ing heads appear on TV channels and news-
investor is to not papers and now social media, talk endlessly
making economic about interest rates, the fiscal situation, in-
predictions but flation rates, demographic shifts, oil prices,
trade flows, quantitative easing or tightening
identifying suitable
and a lot more in the same vein.
investments. Somehow, all this is supposed to serve as money you are going to invest.
Investing is a inputs to yours and my decision-making pro- A geat reason why focusing on companies
bottom-up activity, cess about our own investments. The reality is better than on the gyan factors is that the
not a top down one. is that all this is almost completely useless former tend to be fact-based while the latter
for you and me as far as making actual in- are opinion-based. “It’s much easier to BS at
vestment decisions about what stocks to buy the macro level than it is to BS at the micro
and what stocks to not buy. Actually, all this level.” That’s Nassim Nicholas Taleb (obvi-
gyan that is distributed is not just useless, but ously!) explaining why bottom-up is way
worse than useless—it actually harms you as better than top-down. Bottom-up is reality
an investor. It harms you by distracting you, while top-down could just be empty talk, and
by taking attention away from the ‘X Factor’, usually is. You make money by doing the
which is what really matters in your quest to right things at a micro level, by choosing the
generate wealth from your stock investment. right stocks or funds.
So what is this ‘X Factor’? It’s the simplest Do note that I’m not claiming that larger
and most straightforward idea in the world:
understand your own financial needs and
constraints, and depending on what you pre-
fer, work on identifying good stocks and good
funds that will fit your needs. Investing is
about investments. A discussion about actual
investing must not be about these macro gyan
factors, none of which are in your control. It
should be about revenues, margins, profits,
market shares, product pipelines, manage-
ment quality and all those things that actu-
ally decide the money-making potential of a
company and therefore, the wealth generated
by investors. The job of the investor is to not
making economic predictions but identifying
suitable investments. Investing is a bottom-
up activity, not a top down one.
For good reason. None of these gyan factors
are in your control. What the RBI or the Fed
does to interest rates or what calamity befalls
in some geopolitical arena is outside your
ambit. Common sense dictates that it’s better
to focus on what one can control. You have
control over when you invest, what you invest
in, what price you invest at and whether you
invest at all. You can control whether you in-
vest it in a great excitement in some bubble, or
whether you invest systematically and gradu-
ally. You also have complete control over the
stocks
GETTYIMAGES
Consider stocks that

display asset efficiency
Improved turnover ratios can potentially generate above average returns in the medium to long run.
The fixed asset turnover ratio measures first quarter of 2022-23, according to RBI that have improved asset efficiency over a
by Sameer Bhardwaj the efficiency of fixed assets like plant and data. Though there was a seasonal decline period of time. The last 10 financial years’
T
machinery and is calculated by dividing in the first quarter of 2022-23 compared to data for fixed asset turnover, asset turno-
he Indian economy is expected the net sales by the average fixed assets. 75.3% in the fourth quarter of 2021-22, it ver and inventory turnover ratios were
to grow faster than the world On the other hand, the asset turnover ra- remained close to the long-term average of extracted for the defined universe of 2,000
economy in 2023, shows IMF tio measures the efficiency of total assets 73.7%. companies. The latest financial year taken
projections. Factors like buoy- (fixed and current). The other ratio, inven- Capacity utilisation is an important into consideration was 2021-22. Companies
ancy in capital-intensive indus- tory turnover, measures the management indicator of the demand and investment where all three turnover ratios in 2021-22
tries, rising credit growth and PLI benefits of the inventory (stock of raw materials or prospects of an economy. Data compiled were the highest in the last 10 years were
are expected to provide support. However, finished goods) and states how many times from Thomson Reuters-Refinitiv for 2,000 extracted. By including the fixed asset
volatility will remain due to global macro a company has sold its inventory over a de- companies with a market cap greater than turnover ratio in the analysis, the study
headwinds. fined time period. `100 crore (excluding banks, financial aimed at identifying companies that have
As the markets are at a crossroads of Among these ratios, the fixed asset turn- services and insurance) shows a majority improved their capacity utilisation levels
headwinds and tailwinds, careful assess- over can also indicate the level of capacity of the sectors still need to catch up to attain over the period of time.
ment of strengths and weaknesses of a utilisation of a company or an industry, their pre-covid performance. There are 70 such companies. In the last
company is required before investing. One says the Bank of Baroda August 2022 While 22 out of 63 industries have shown one (70 companies), three (67 companies)
way of assessing a company’s fundamen- report. Capacity utilisation helps to deter- improvement in median fixed asset turno- and five years (66 companies) the group
tals is by looking at its asset efficiency. The mine the degree to which an organisation ver ratios relative to the pre-covid full year of such companies have delivered aver-
activity or turnover ratios provide strong is achieving its full production potential. 2018-19, 41 industries (out of 63) show deteri- age returns of 9.4%, 297.4% and 111.7%.
insights into the same. Generally, higher the capacity utilisation, oration in the median fixed asset turnover Comparatively, the BSE500 index delivered
Fixed asset turnover, asset turnover and the lower the costs per unit, which helps a ratio in the defined time period. 0.15%, 57.2% and 60.4% returns during
inventory turnover are some of the activity company gain an edge over competitors. Transportation infrastructure, electric the same period. All returns are absolute
ratios that are frequently used for assess- “Capacity utilisation is an indicator utilities and construction materials are point-to-point (not annualised) and based
ing the productivity of operating assets. of the optimal level of functioning of any among the three industries where median on 6 January 2023 closing prices. The num-
These ratios indicate asset efficiency by company or industry. It is hence more in- fixed asset turnover improved the most bers show that companies that display as-
determining the effectiveness of a firm in dicative of progress than growth in produc- in 2021-22 relative to 2018-19. On the other set efficiencies are adequately rewarded by
utilising its assets for generating sales rev- tion or net sales which are subject to base hand, airlines, trading and electronic com- the markets.
enue. In other words, such ratios determine effects,” adds the report. ponents are among the industries that saw The following are six asset-efficient
the speed at which the assets are converted Looking at the macro level, the capacity the most deterioration in fixed asset turno- companies that have decent analyst cover-
into sales. The higher the turnover ratios, utilisation of the manufacturing sector of ver ratios in the defined time period. age and are currently offering double-digit
the better the asset efficiency. the Indian economy stood at 72.4% in the ET Wealth tried to identify companies share price potential:
stocks
DEEPAK NITRITE NARAYANA HRUDAYALAYA

12-month Current 1-yr target UPSIDE ANALYSTS’ RECOMMENDATIONS 12-month Current 1-yr target UPSIDE ANALYSTS’ RECOMMENDATIONS
forward PE price (`) price (`) POTENTIAL forward PE price (`) price (`) POTENTIAL
BUY HOLD SELL BUY HOLD SELL
28.0 1,935 2,415 24.9% 6 2 2 29.7 720 823 14.4% 7 1 0
THE PERFORMANCE OF the chemical DEEPAK NITRITE BSE 500 THE MEDICAL AND healthcare services NARAYANA HRUDAYALAYA BSE 500
manufacturing company is expected to company is expected to witness growth
100.93 111.25
improve due to moderation in prices 100 supported by its aggressive capex plan 100
of benzene, which is a key raw mate- for next 2-3 years, which aims at its
rial, and a jump in phenol demand amid core and high-performing regions such
its usage in everyday products such as as Bangalore, Kolkata and Cayman. It is
mouthwash, disinfectants and liquid setting up oncology capabilities across
detergents and rising production of hospitals, which is expected to improve 100.93
plywood, laminated beams and flooring APROB (average revenue per occupied
panels. The management aims to double bed) and occupancy. The company’s
its revenues in 3-4 years and expects 76.36 Cayman business is expected to remain
earnings growth to be faster, driven by robust amid higher volumes post-open- 7 Jan 2022 9 Jan 2023
backward integration projects. 7 Jan 2022 9 Jan 2023 ing of tourism and it continues to explore
According to a recent CD Equisearch opportunities in neighbouring Bahamas of machines, emphasis on digital, strong
report, the company’s focus on import phenol in the pharmaceutical industry, and Bermuda. FCF generation across businesses, improv-
substitution, the launch of derivatives new chemistries and upstream and A Prabhudas Lilladher report lists ca- ing trend in realisations and good perfor-
of phenol and acetone, the adoption of downstream projects are key positives. pacity expansion in Bangalore, upgrading mance of new hospitals as key positives.
APOLLO HOSPITALS GUJARAT STATE PETRONET CIPLA

ENTERPRISE 12-month Current 1-yr target UPSIDE ANALYSTS’ RECOMMENDATIONS 12-month Current 1-yr
UPSIDE UPSIDE
12-month Current 1-yr target POTENTIAL forward PE price (`) price (`) POTENTIAL BUY HOLD SELL forward price target POTENTIAL
forward PE
67.1
price (`)
4,408
price (`)
5,205 18.1% 10.1 279 341 22% 20 0 1

PE
27.4
(`)
1,087
price (`)
1,225 12.7%
THE NATURAL GAS infrastructure GUJARAT STATE PETRONET BSE 500
ANALYSTS’ RECOMMENDATIONS ANALYSTS’ RECOMMENDATIONS
and transmission company is set
BUY HOLD SELL to benefit from the increase in 100 100.93 BUY HOLD SELL
23 0 0 domestic gas production, which is 27 8 3
expected to improve its transmis-
sion volumes. Also, a ceiling price 88.82 CIPLA BSE 500
APOLLO HOSPITALS BSE 500 118.87
on domestic gas will bode well
100.93
for the company as it will lead to 100
100
higher demand from city gas dis-
tribution companies. Further, the
PNGRB’s new pipeline tariff will 100.93
lead to a lower tariff cut compared 7 Jan 2022 9 Jan 2023
to expectations.
A Systematix report remains and 2023-24 respectively, compared to
87.77 bullish on the company’s growth 33.9 mmscmd in 2021-22. It is connecting
prospects and estimates trans- with all major LNG terminals like Dahej,
mission volumes of 27.5 and 35 Hazira, Mundra, Jafrabad and Chhara,
mmscmd (million standard cubic which bode well for its long-term growth,
7 Jan 2022 9 Jan 2023
meters of gas per day) in 2022-23 once spot LNG becomes affordable.
7 Jan 2022 9 Jan 2023
THE INTEGRATED HEALTHCARE service
provider is expected to benefit from THE PHARMACEUTICAL COMPANY’S
its focus on creating a digital network POWER GRID CORPORATION OF INDIA profitability will be supported by the
for pharmacies, doctor consultations, ANALYSTS’ RECOMMENDATIONS expansion of product categories in
12-month Current 1-yr target
clinics and diagnostics. The management forward PE price (`) price (`)
UPSIDE prescription, trade generics and consumer
POTENTIAL BUY HOLD SELL
has guided improved occupancy and healthcare in India. Also, differentiated
increased margins for matured and
new hospitals over the next 12 months.
10.5 209 244
16.5% 15 4 1 launches in peptide, injectables and
inhalation will help improve growth
The share of international patients is THE POWER TRANSMISSION momentum in the US business. The focus
company thrives on the power sec- POWER GRID CORPORATION BSE 500
expected to reach 10% by end of the on direct-to-market and newer geographies
second half of 2022-23 and 15% by tor regulatory tariff model which like China, Brazil and Australia is expected
100
2023-24, which currently contributes 6% provides strong earnings visibility. 101.90 to drive sales in the international market.
to the total revenues. It intends to engage in multiple A Motilal Oswal report expects 18%
An ICICI Securities report that was large-scale opportunities in smart earning CAGR over 2021-22 and 2023-
released after the second quarter results metering, distribution infrastruc- 24 led by 5% and 22% sales CAGR in the
was positive on the company’s long-term ture, data centres and battery stor- India and US segment and 240 basis points
outlook considering its strong brand age. Analysts expect strong growth 100.93 margin expansion. However, the report
and pan India presence in the hospital momentum, given over `50,000 believes that the current valuations offer
segment, margin expansion potential crore worth of projects pending limited upside from the current levels.
and upside from the online platform. It capitalisation. The management
has provided capex guidance of 7 Jan 2022 9 Jan 2023 Current price as on 9 January 2023. Nifty-50
expects performance to improve in the
12M Forward PE: 19 times. Source: Refinitiv.
coming quarters and estimates 12.6% `8,800 crore for 2022-23 and ex- was bullish on the company considering
revenue and 11.2% EBITDA CAGRs over pects capex to pick up in 2024-25 its decent growth outlook, healthy RoE
2021-22 and 2024-25. to `12,000-12,500 crore. and strong dividend yield. Also, moneti-
A Sharekhan report released sation of transmission assets is expected Please send your feedback to
etwealth@timesgroup.com
after the second quarter results to improve dividend payout in the future.
real estate
Tips to increase
the rental value
of your house
Simple and economical ways to
spruce up your house and
negotiate for a higher rent.
GETTYIMAGES
by Namrata Dadwal
Quick ways to upgrade walls and flooring
T
hink of wooing a prospective
tenant as a marketing strategy.
You have to convince them that
WALLS
your house is worth the rent you Here are some options if you just need to spruce up a few walls, part of a wall or cover damage due to seepage.
are asking, and to do this you ITEM COST BENEFIT CHALLENGE
need to showcase your property in the best
light possible. A big no-no is clutter, un- Wall tile of size They are easier to clean and You will have to pay additional
30x20 cm `25 - 40 per sq ft maintain than paint or wallpaper labour and adhesive charges
clean kitchen and toilets, broken doors or
windowpanes, and non-functioning lights Self-adhesive These are DIY, will hardly take You need to be careful while
and appliances. So, ensure that the house is wallpaper (1.5 x `350 - 1,500 any time to install, and you have a applying to avoid folds, bumps
16 ft) wide range of choices or air pockets
clean and everything is in working order.
However, some cost-effective steps can help Foam wall paper You can stick them yourself to They aren’t good to cover
sticker (2x2 ft) `220 - 500 cover small areas easily seepage and are prone to stains
you to also enhance your house, making it
more appealing to would-be renters. These are water, heat and termite
You will have to pay additional
PVC wall panels `50 - 150 per sq ft resistant, and come in a variety of
labour charges
Furnishings colours and patterns
“On an average, semi-furnished homes
command 10-12% higher rents than unfur-
nished houses across the major cities in FLOORING
India, while furnished homes command You can instantly change the look of a room by using these quick-fix methods.
about 18-20% higher rents than semi-fur-
nished ones,” says Siddhart Goel, Head of ITEM COST BENEFIT CHALLENGE
Research, Magicbricks.
This makes sense as it’s difficult for Professional It uses a single disc machine to get rid of
floor scrubbing `5-10 per sq ft accumulated grime, especially in grouts
None
tenants to lug a lot of furniture or heavy
appliances every time they move, so they
Peel & stick floor These are DIY and look similar to These may get slippery
prefer houses that come with ACs, geysers tiles (27 sq ft) `2,800 - 4,000 wooden floors when wet
and water purifiers. You can add to these
by installing curtains and a few pieces of
This can be installed quickly and give a You will have to pay
furniture like small tables or a double bed. Wood floor panel `60 - 240 per sq ft premium look additional labour charges
Curtains and blinds are always a plus,
especially if you have large or too many
windows. Go for neutral colours as those
appeal to mostly everyone. change the shutters of your cabinets or put founder of Studio Midas, an interior
It will also help if you have service pack- a self-adhesive laminate. These laminates Hard water filter: `850 - `2,900 designing company. If power cuts are
ages in place for all your appliances and let or PVC vinyl are easy to apply and can also PVC roll (45x300 cm): `300 - `1,500 common in your area, install a couple of in-
the tenants know about that. These aren’t be removed and re-applied. verter lights rather than an entire inverter
expensive but will relieve tenants that they In case some wall tiles in the kitchen or Stick-on tile (12x12 ft): `350 - `2,000 itself. If your balcony floor is damaged, you
won’t have to pay extra. It will also ensure bathroom are cracked, you can cover these Toilet seat cover: `700 - `2,200 could cover it with a water fountain, pots or
the longevity of the appliances, which will with stick-on single tiles. These are heat artificial grass, which is easy to maintain.
benefit you too in the long run. and water resistant, so suitable for both
rooms. Another way to improve the look of Lighting and balcony Inverter LED bulb: `350 - `900
Kitchen and bathrooms your bathroom is to change the seat cover Ventilation and lighting are of paramount Mesh screen (3x4 ft): `360 - `580
Most tenants are fussy about these rooms of the WC as replacing the entire equip- importance. “Opt for ceiling lights rather
the most. One way to impress them is to ment can be expensive. Just this small than wall lights as they brighten up a room Artificial grass (2x10 ft): `1,200 -
show that the chimney, exhaust fans, taps change will make the flush look newer. If more. Put screens for windows so that they `2,000 (depends on thickness)
and drains are all in good working condi- possible, install a shower rod and curtain, can be opened to let in fresh air. Adding
tion. If you have hard water in your area, or if you have the resources, a single trans- a few hardy and air-purifying plants like
install filters for showers, taps and bidets. parent panel to give your bathroom a more snake plant and ZZ plant adds to the appeal Please send your feedback to
To upgrade the kitchen, you can just luxe look. of the house,” says Shruti Maheshwari,
QA
your queries
&
I am 35 and have a 3-year-old son and I want to sell my 20-year-old dwell-

1-year-old daughter. My wife and I earn `1.6 ing and buy a new house. I want to
lakh per month and we live in Bangalore in complete the transaction before 31
our own flat. The housing loan has already March 2023 or before filing my IT
been paid. We don’t have any liability, and return in June/July 2023 and use the
our current monthly expenses are `50,000. I entire proceeds to buy the new flat.
have `16 lakh in investments, spread over `3 Am I entitled to claim exemption for
lakh in FDs, `2 lakh in stocks, `10 lakh in MFs
and `1 lakh in cash. I do invest in MFs but not
Our panel of experts will answer long-term capital gain? Can I put the
entire proceeds in my savings
via SIPs. How should I plan my investments? questions related to any aspect of account after selling my old property
till I buy a new house? Is it necessary
personal finance. If you have a query, to open a capital gain account in a
Start with listing your financial goals and nationalised bank? Is long-term capi-
then add the amount you’ll require for each mail it to us right away. tal gain equal to actual sale price
one of them in the present day and when the minus circle rate of my property pre-
goal is due. For example, your daughter’s
college education is 17 years away. You can
QUESTION OF THE WEEK vailing at sub-registrar’s office?
get a rough idea about the fee structure for a

Yes, you are entitled to claim ex-
few basic courses. Let’s assume that the fee
emption for long term capital gains.
for a course is around `40 lakh today. This I am 48 and self-employed while my working wife is As per the provisions of Section 54
amount then needs to be adjusted for infla- 47. Our sons are aged 16 and 12. I have `7.4 crore in of the Income-tax Act, an individual
tion to estimate the future cost. Education
inflation in India hovers at 8-10%, which
mutual funds, `1.4 crore in shares and `26 lakh in can claim the exemption for long
PPF. I have shares of an unlisted company worth `1 term capital gains arising from a
means that this fee will be around `1.5 crore
crore, from which I earn `50,000-90,000 in dividend residential house if the amount of
in the next 17 years assuming 8% inflation.
capital gain is utilised for purchase
You need to then calculate the amount of in- each year. My current house is valued at `1.4 crore
of new residential house within 2
vestment needed based on the product cho- and I can sell this house or rent it after three years. I years after the sale of old house.
sen. If it’s a fixed income then keep returns have booked a new house which will be ready in Hence, you can claim exemption if
at 7%, and for mutual funds consider 11-12% three years and I need to pay `2.6 crore more till you buy a new flat. Further, the
returns. To meet this goal using mutual
funds, you’ll need to invest `25,000 per
then. I have an office property worth `1.25 crore and amount of capital gain should be uti-
I can sell this after two years. We have a vacant flat lised in purchase of a new asset be-
month. For goals such as retirement, longev-
in Mumbai valued at `3.5 crore today and we don’t fore the due date of furnishing re-
ity and returns during retirement become
turn of income. In case, the amount
important inputs in addition to inflation and intend to rent or sell it for at least 15 years. Our cur-
of capital gain is not appropriated
current expenses. To invest in mutual funds, rent monthly expenses are `2.5 lakh. My wife earns by the due date of return filing, it
instead of waiting for market corrections, `3 lakh per month and will work for at least 10 more shall be deposited before furnishing
take exposure via SIP as it will years. She invests `1.5 lakh per month through SIPs of return of income with the nation-
bring in convenience and
discipline with investing.
in MFs. I wish to retire immediately and buy a car alised bank and shall be utilized in
worth `1.5 crore. We need `1 crore for each of our accordance with Capital Gains Ac-
Check your insurance
son’s education. I have a term plan of `1.5 crore, count Scheme (CGAS). Hence, if you
cover for adequacy.
buy the new flat by the due date of
while my wife is covered for `50 lakh. Can I retire
filing of tax return-31 July 2023,
today? Should I go for a home loan for the `2.6 crore then you are not required to deposit
Prableen Bajpai to be paid for the new house? Is it wise to spend `1.5
Founder FinFix® Research & Analytics the amount in CGAS and you can
crore on a car? How much can we allot towards trav- keep the amount in your savings ac-
el every year for the next 15 years? count till then. Only if the amount is
not utilised till that date, then you
I invested in the regular plan of a mutual need to deposit the amount in CGAS.
fund through the Netbanking portal of my The thumb rule is that one should ideally have 300 times one’s Long term capital gains shall be
bank. Later, I switched to the direct option current monthly income needs to retire comfortably. Assuming calculated by deducting the ‘indexed
of the same fund on another platform. I
your monthly expense of `2.5 lakh includes payment towards cost’ of acquisition and any expens-
have over `11.5 lakh worth of unrealised es on transfer from the sales price.
your house, at 6% inflation and 10% growth of your retirement
profits in the regular plan. Does it make The indexed cost is calculated by
sense to hold the investments in the regu- fund, your existing mutual fund portfolio should be enough to
sustain your retirement. If you haven’t included payments to- multiplying the cost with the index
lar plan or should I redeem and invest the
wards your house in your expenses, then your current corpus of the year of sale divided by the in-
money in the direct plan?
would not be sufficient for you to retire. dex of the year of purchase. For ex-
Your existing property investments would be more than ample, if the flat was purchased in
It depends on whether you plan to hold 2002-03, the index for that year
enough to support your children’s education. Alternatively, you
the money for the long term. In such a was 105 and the index for 2022-23
could use your retirement corpus to fund their education. Howev-
case, it makes sense to go for the direct is 331. Hence the cost shall be multi-
er, if you intend to do the latter, then you’d need to increase your
plan and save on costs. If your holding pe- plied with 331 and divided by 105
corpus to `8.5 crore to be on the safer side before you retire.
riod is 2-3 years, then the cost of tax out- to arrive at indexed cost. Please also
Calculate all your existing and planned liabilities and deduct
flows may be higher than the benefit of note that the sales price ordinarily
them from your corpus to understand the exact
going direct. When you go direct for fresh shall not be less than
size of your portfolio. Recalculate your ex-
investments, try to keep your portfolio the circle rate of
penses after allocating an amount for ad-
simple with bias towards index funds property as on
ditional expenses such as travel and
where possible, unless you are consulting the date of sale.
education in future. Take a call on ad-
a fee-based adviser. The risk of making
ditional asset building and retire-
wrong investment decisions
ment depending on how much you
may outweigh the cost
need to add to your portfolio to re-
Amit Maheshwari
saved from going direct Partner, AKM Global
tire securely. Above all, remain ade-
unless you do your
quately protected with health insur-
ground work well.
ance.
Ask our experts
Vidya Bala Adhil Shetty Have a question for the experts?
CEO, BankBazaar etwealth@timesgroup.com
Co-Founder, PrimeInvestor.in
financial planning
Why you must

not depend on PAPER WORK
:: Pradhan Mantri Vaya
an inheritance
Vandana Yojana (PMVVY)
The Pradhan Mantri Vaya Vandana
Yojana was introduced in 2019 to
provide a regular stream of income
to senior citizens. Applications
for this are being accepted till 31
Have your own saving plan because March 2023. This scheme is offered
there is no guarantee how much or by by LIC and has a tenure of 10 years

with a guaranteed monthly income.
when you will get an inheritance.
Who can apply?
Anyone above the age
of 60 years can par-
ticipate in the scheme. There is no
maximum entry age. The policy
has a tenure of 10 years from the
date of issue. The total amount
for all the policies held under
the PMVVY scheme by a senior
citizen cannot exceed `15 lakh.
GETTY IMAGES
Purchase price
This depends upon the
pension payout options
chosen: annual, half-yearly, quar-
S
terly or monthly. The policy can
Sujoy is a management graduate in ujoy is compromising his only at a later stage in his life. He will
be purchased at a minimum price
financial security by placing need to build assets for the short and
his late 20s and has been working with of `1,56,658 (for `12,000 annual
his dependence on a source of medium-term goals of his family.
a telecom company for the past seven funds that he neither knows Depending upon his parents for every
pension) to a maximum amount of
`14,49,086 (for `1,11,000 annual
years. Sujoy enjoys spending money on when he will receive or how much large requirement of funds will be a
pension) under the annual pension
he will receive. The assets that his difficult choice for both sides. His oth-
the good things in life and has barely er option would be to look for loans.
option. In case of the monthly one,
parents have built will first be used the price ranges from `1,62,162
any savings. He has no dependents but by them for their own needs. With But without assets against which he (`12,000 annual pension) to `15
wants to get married in the next couple longer and fuller lives, a great part can borrow, his borrowing will be lakh (`1,11,000 annual pension).
of the wealth will be used by them in at a very high cost and will further
of years. His parents live indepen- their lifetime. They may even choose weaken his financial situation.
dently in their own home in Bangalore. to not to leave their entire wealth for Sujoy must not allow his expected Online/Offline
They live an upper-middle class life him. Sujoy can neither control nor inheritance to undermine his finan-
The scheme can be
estimate what will come to him as cial independence and must have a
and have a married daughter too. inheritance and when it will come. If saving and investment plan. Since he
purchased from an LIC
registered agent or online through
Sujoy’s argument, when he is advised he waits till he knows that and then is young and yet to start on his famil- the website www.licindia.in.
to start saving some money, is that he start his own saving plan, he may be ial responsibilities, it is not too late
losing the benefit of compounding for that. The inheritance that he is
will inherit his parents’ assets and that that an early start would have given expecting should give him the secu- Benefits
is more than sufficient to fund his re- his investments. He will then have to rity to take more aggressive decisions The first instalment of
save much more to catch up or even with his investments but not stop him pension is paid after
tirement and other goals. The money he
cut back on his long-term goals. from building his wealth. When he 1 year, 6 months, 3 months or 1
earns is for him to spend as he wants. Even if Sujoy was sure of getting gets his inheritance, it can help him month from the date of purchase,
What is Sujoy missing in the way he a good inheritance, it is something accelerate his goals and leave him depending on the mode chosen.
that he will probably be able to use with surpluses that he can enjoy. Apart from guaranteed pension at
has planned his financial future? the rate of 7.4% payable monthly,
Content on this page is courtesy Centre for Investment Education and Learning (CIEL). the policy provides death benefit
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. of refund of purchase price to the
smart things to know

beneficiary on the death of the
Small savings schemes
1
pensioner during the policy term.
:: Points to note
Small savings
2 They
4 z Loan can be availed on the
policy after completion of three
3 5
years, up to to a maximum of
schemes are typically Interest rates 75% of the value of the policy.
instruments used The small sav- provide for these z The policy is subject to free-
by the Central ings instruments returns that They also schemes are look period and a customer can
Government include PPF, SSY, are usually come with reviewed return it within 15 days.
to encourage SCSS, NSC, post higher than a sovereign every quar-
citizens to save office deposits bank fixed guarantee and ter by the
regularly. and KVP. deposits. tax benefits. government.
financial planning
Gifts for the grandchildren

Grandparents wanting to gift investments must be aware of processes involved, says Uma Shashikant.
grandchild. But the interest income aris-
ing from the deposit is taxable. Since the
child is a minor, this income will be clubbed
with the income of the guardian and taxed.
Clubbing provisions also stipulate that the
minor’s income must be clubbed with that of
the parent whose income is higher.
Sixth, all investment accounts of a minor
will only be on a sole holding basis. Minors
cannot be joint holders.
Seventh, when the child attains the age
of 18, the money invested can be accessed.
However, the minor now turned major must
have a PAN and complete KYC process and
have their signature attested by the banker,
to be able to access the money. Guardians
cannot operate the account once the minor
turns major.
The summary of these provisions in
terms of actual gifting will pan out as fol-
GETTY IMAGES
lows: The parents open a bank account for
the minor child: grandparent invests; the
interest income is taxed in the hands of the
parent. The grandparent buys a bond, sav-
G
ing certificate for the minor child. Maturity
ifting to grandchildren is a mixed while investing for the grandchild. proceeds go to the child after turning major
feeling of indulgence, love, respon- First, the child is a minor incapable of mak- and completing the paperwork. The grand-
sibility and righteousness. The ing a financial decision. The law considers any parent invests in a child specific mutual
question of legacy comes in: let us contractual decisions made before the age of fund product as a third party. Can also do a
do something we will be remem- 18 as null and void. Therefore, the investment SIP with the upper limit of `50,000. The fund
bered by. Then law and procedure takes over. has to be made, managed and operated by folio is held in the name of the child with
There was a time when family wealth was someone else on behalf of the child. parents as guardians.
primarily held in land, jewellery and such Second, parents of the child are the natural The process is somewhat different if the
physical assets. Agriculture and business guardians under law. Therefore they are free parents and the child are living abroad. Tax
were the primary sources of income. The laws to open a bank account or make investments laws of the host country will apply for gifts,
UMA SHASHIK ANT then unfortunately did not allow the girl child on behalf of their minor child. Grandparents income, and clubbing. There may also be
IS CHAIRPER SON, limits on how much can be received as tax-
to get a share of the family wealth. Many tradi- are third parties. They are not natural guard-
CENTRE FOR INVES TMENT
tions in Indian society have arisen from the ians unless the unfortunate circumstances of exempt gift in a year.
EDUC ATION AND LE ARNING
use of rituals and ceremonies to pass on some passing away of the parents leads to the courts Grandparents who want to give gifts in
of the wealth to the girls on the occasion of appointing them as such. the form of money or investment have to
their wedding, the birth of the child and many Third, investments in the name of a minor operate necessarily through the parents
other such events. child can be made only in products that allow who are the natural guardians of the minor
We have long moved on from that pattern of such a facility. Not all do. The minor child’s child. There is no bypassing this. It might be
wealth accumulation. Salary, investment and birth certificate is mandatory to establish a procedurally easy to give the money to the
business incomes dominate the scene today. minority. It also shows the name of the par- parent and ask them to make the investment
Grandparents who
Daughters are now entitled to their share of in- ents, who must be registered as guardians for for the child. Many insist on their name be-
want to give gifts in ing associated with the gift, alas. It might
herited wealth. But the distribution of wealth the investment.
the form of money or still leans on rituals and ceremonies. Birth of Fourth, contributions can be made by the make sense to acknowledge that the parents
investment have to a grandchild triggers these very sentiments grandparent into specified mutual funds, post know what’s best for their child and that the
operate necessarily when wealth must be shared and distribution office saving products, bank deposits, equity grandparent comes only next in line.
through the parents must signal family wealth and status. shares and bonds. In all these cases, the prod- Grandparents can make the invest-
who are the natural Modern grandparents realise the futility of ucts must allow a third party (grandparent) ment in their own account and name the
guardians of the gifting gold ornaments and clothes. The occa- to make an investment for the child (minor) grandchild as the nominee. Even in this
minor child. There is sion demands it, they yet say, and oblige with- with the guardians (parents) that operate the case, a minor nominee registration needs
no bypassing this. out much protest. But there are many that want account. KYC and Aadhaar, PAN card linking the guardian’s details. Grandparents can
to give money and investments as gifts that al- will be required for parents as well as grand- write a Will that bequeaths a portion to
low the grandchild to use it as required, or use parents contributing the funds. their grandchild. These choices might make
it for funding life goals such as education. The product features may include a lock in sense when the grandchild lives abroad.
But the investment options for grandpar- period or a limit on the amount that can be There are no tax implications for the child
ents are fraught with many procedural is- contributed every year. or parents until the date of bequest.
sues and paperwork, apart from requiring Fifth, the Indian tax laws allow gifts to be Grandparents are adamant that their
an understanding of product features. Many received from a specific list of relatives. These gifts are acts of love. Why needlessly com-
years ago when my child was turning one, her gifts are not taxed in the hands of the recipi- plicate this with procedures? Aren’t acts of
grandparents bought a bond that was market- ent. A grandchild receiving an annual mon- love in themselves a priceless gift? Do they
ed to make her a lakhpathi. Investing a small etary gift from the grandparent does not pay have to be monetised?
amount today would do. Many grandparents taxes on the gift itself. However, any income
bought them, only to find a few years later that arising from the gift is taxable.
these bonds had a call option and ended short For example, a grandparent can make a Please send your feedback to
of target. Let’s list the points to keep in mind deposit into the minor bank account of the
travel
State Secrets: Himachal Pradesh

If, instead of taking foreign holidays, you prefer to travel in India, here’s a series to help plan a vacation in
each of the 28 states and 8 Union Territories. We highlight tourist attractions, culinary choices, modes of
travel, and the costs involved. In the ninth part of the series, Riju Mehta takes you to Himachal Pradesh.
CAPITAL
SHIMLA WHERE TO STAY…
BEST TIME TO VISIT As in most hill states, the 4/5-star
APRIL-JUNE, options here are limited to bigger cities
SEPTEMBER- like Shimla and Manali. There are plenty
NOVEMBER of budget hotels, resorts, rental villas,
homestays, and Himachal tourism resorts.
Check the government website https://
himachaltourism.gov.in/accommodation-
result/ for various options. The costs can be
as low as `600-700 a night for homestays,
while 5-stars can cost upwards of `10,000.
COST: `36,000 for 12 nights.
WHAT TO EAT…
The Himachali or pahari cuisine has Punjabi
and Tibetan influences and involves a lot
of spices and slow cooking. Some delicacies
include dham, or thali, with vegetables, curd,
dessert and staples; siddu or steamed wheat
bun; Kullu trout fish; madra (chickpea dish);
chha gosht (lamb in gram flour and yogurt);
babru (type of kachori); aktori (buckwheat
pancake); tudkiya bhaath (pahari pulao),
Tibetan thukpa (noodle soup), and mittha
(sweet rice with dry fruits).
COST: `500-1,000 per person, per day
This beautiful state in western Himalayas HOW TO You can reach Shimla by road, train, flight, or a combination of the- WHAT TO DO…
se. The state’s three airports are at Jabarhatti, 22 km from Shimla;
is a nature lover’s paradise, not merely due REACH FROM Bhuntar, 50 km from Manali; and Gaggal, 13 km from Dharamsala. ADVENTURE SPORTS
to its topographic diversity and wildlife, but DELHI… There is no direct train to Shimla, so go from Delhi to Kalka and from z Check the government website https://
also becaue of adventure sports. From skiing
there to Shimla. You can also go to Chandigarh via train or flight and himachaltourism.gov.in/destination/adven-
and para-gliding to river rafting, camping from there by road to Shimla. A direct bus from Delhi is also an option. ture-trekking/ for various activities.
and angling, you can experience it all even as
Cost by road bus: River rafting: Enjoy river rafting in the
you enjoy the snow-capped mountain ranges, Cost by air+bus: `1,924 Cost by train: `710-840 Sutlej river near Shimla, Beas river near
pristine valleys, rivers, deodar forests, and (Delhi-Chandigarh, 1 hour) (Class 2A/CC) (Delhi-Kalka/ `505-661(HRTC) Kullu, Ravi river near Chamba, and Chandra,
the cold desert of Spiti. You can easily spend Chandigarh, 4-6 hours) Spiti rivers in Lahaul & Spiti.
10 days in the state, and increase it to 12-15 `240-1,289 `950 onwards
days if you want to visit Lahaul and Spiti. (Chandigarh-Shimla, 3.5 `265-800 (Class 2A/CC) (Volvo/private bus Para-gliding: Bir-Billing in Kangra is the
(Kalka-Shimla, 4-5.5 hours) (9-11 hours) best site, while others include Bandla Dhar
hours, HRTC/Volvo)
near Bilaspur, Solang Valley near Manali, and
*One way, per person. Flight cost on Skyscanner; train cost on Ixigo; bus cost on RedBus. Junga near Shimla.
SUGGESTED ITINERARY Skiing: Ski at Kufri and even learn skiing on
You can easily spend 10 days, but if you want the slopes of Solang Nala, Rohtang Pass, and
DAY 1-3: Shimla 6 hours away. Visit the of Masrur. Also visit the
to do a leisurely trip, taking in smaller towns, Hanuman Tibba.
Visit the Mall Road, the Manikaran gurdwara and Triund Hill and waterfalls.
or visit Lahaul-Spiti extensively, increase the Angling: Fish in the streams of Pabbar in
number of days. Ridge, and Scandal Point, hot springs, and some of
DAY 9-10: Dalhousie Rohru valley, Baspa in Sangla valley, Uhl in
shop at Lakkar bazaar the waterfalls. Next day,
Drive in about 4 hours. Barot valley, and in Tirthan and Beas rivers
Himachal Pradesh and go to the Jakhu and visit the Hidimba Devi
Visit Chamera lake, Panch in Kullu, as also in Bilaspur and Kangra. NA
Sankat Mochan temples. and other temples, take
Pulla and Satdhara wa-
SHIMLA Next day, indulge in ac- in apple orchards and TEMPLES & MONASTERIES
terfalls, Dainkund peak,
DAY 9-10 tivities like ice skating, indulge in sporting ac- Temples: Hidimba Devi (Manali); Jwalamukhi
trek to Ganji Pahari,
para-gliding, rafting, etc. tivites. Visit the Rohtang (Kangra); Jakhu and Sankat Mochan (Shimla);
Start Chamunda Devi tem-
Visit the Indian Institute Pass and Solang valley Baba Balaknath (Hamirpur); Naina Devi
DAY 11-12 ple and Khajjiar. Visit
of Advanced Studies, the next day. (Bilaspur); Tara Devi (Shimla); Chintpurni
Chamba if you have time.
Army Heritage Museum (Una); Bhimkali (Sarahan), among others.
and Christ Church, or go DAY 7-8: Dharamsala DAY 11-12: Spiti Valley Monasteries: Key (Spiti); Tabo (Spiti);
DAY 7-8 up to Kufri and Naldhera. It will take 7 hours to It will take 7-9 hours but Kungri (Spiti); Dhankar (Spiti); Namgyal
DAY 4-6 You could also arrive in drive to the home of is worth a visit. Take in (Mcleodganj); Tashi Jong Khampagar
Shimla via the toy train the Dalai Lama. Visit the lovely monasteries, (Palampur); Guru Ghantal (Lahaul), Palpung
from Kalka. If you are the monasteries, taste visit Kibber village and Sherabling (Palampur), among many others.
driving, stop at Solan or Tibetan food, go trek- Hikkim, Baralacha and
Kasauli on the way. king, hiking or rock PARKS & SANCTUARIES
DAY 1-3 Kunzum passes, and
climbing, shop for handi- Chandra and Suraj taal. z There are five national parks and 26
DAY 4-6: Manali crafts, and check out the sanctuaries, including the Great Himalayan
Drive to Manali, about famous rock-cut temples DAY 13: Back to Delhi National Park (Kullu), Pin Valley (Lahaul-
Spiti), Simbalbara (Sirmaur), among others.
SMART STATS
The Economic Times Wealth
January 16-22, 2023
In This Section
MUTUAL FUNDS - P16
LOANS AND DEPOSITS - P18
ET WEALTH TOP 50 STOCKS

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

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

LIC Housing Finance 1 1 400.15 30.00 71.00 9.22 0.88 2.11 0.14 1.63 1.66 34 3.97
UPL 2 3 717.80 23.00 51.00 15.11 2.22 1.39 0.26 1.39 1.13 29 4.76
Shriram Finance 3 2 1,312.65 19.00 57.00 12.83 1.36 3.37 0.24 1.67 1.79 34 4.32 Top 5 stocks with the highest
revenue growth (%) over the
Prestige Estates Projects 4 6 452.15 27.00 63.00 15.70 1.99 0.34 0.25 1.51 1.03 20 4.80
previous year
KEC International 5 5 490.05 32.00 105.00 37.38 3.43 0.80 0.36 1.50 0.72 26 4.19
Cyient 49
Embassy Office Parks 6 4 344.89 21.00 59.00 40.91 1.29 6.19 0.68 0.84 0.08 15 4.87
Larsen & Toubro 7 7 2,159.75 28.00 50.00 34.82 3.66 1.04 0.69 1.10 1.04 44 4.75 SBI Cards & 47
Payment
Bank of Baroda 8 8 181.70 6.00 40.00 9.45 0.96 1.57 0.24 1.71 1.44 39 4.56
Eris Lifesciences 45
Oil India 9 10 225.10 26.00 30.00 4.35 0.80 6.06 0.18 2.05 -0.13 20 4.15
Adani Ports & 44
Dr Reddy's Laboratories 10 9 4,310.60 18.00 70.00 30.19 3.72 0.70 0.43 1.07 0.73 42 4.43 SEZ
Apollo Tyres 11 11 317.00 24.00 95.00 31.56 1.72 1.02 0.33 1.64 1.61 33 3.97 Greenply 43
Industries
Somany Ceramics 12 15 493.50 30.00 46.00 23.75 2.90 0.61 0.51 1.54 0.97 18 4.72
Cyient 13 17 883.30 49.00 23.00 17.43 2.92 2.83 0.83 1.19 0.47 20 4.55
2 Least expensive stocks
Coal India 14 13 213.90 18.00 38.00 7.58 3.05 21.09 0.18 1.48 0.72 25 3.96
Top 5 stocks with the lowest
Adani Ports & SEZ 15 12 792.95 44.00 62.00 35.18 4.37 0.63 0.58 1.56 1.47 23 4.65 price-earnings ratio
M&M Financial 16 14 232.85 20.00 77.00 25.61 1.73 1.52 0.34 1.84 1.93 34 3.59 Oil & Natural 4.03
Gas Corp
City Union Bank 17 20 165.65 25.00 46.00 16.03 1.85 0.60 0.36 1.48 1.28 27 4.37
Oil India 4.35
Manappuram Finance 18 16 120.15 23.00 32.00 7.65 1.21 2.46 0.28 1.75 1.67 19 4.68
CESC 19 18 75.10 22.00 13.00 7.32 0.96 6.00 0.60 1.06 0.42 17 4.76 CESC 7.32
L&T Finance Holdings 20 -- 90.95 21.00 149.00 25.65 1.12 0.54 0.16 1.77 1.86 13 4.39 Coal India 7.58
VRL Logistics 21 21 548.90 32.00 47.00 30.22 7.42 1.46 0.54 1.88 1.11 13 4.77 Manappuram
Finance 7.65
Torrent Pharmaceuticals 22 19 1,546.50 26.00 105.00 67.35 8.79 1.55 0.64 1.29 0.69 35 4.00
NTPC 23 23 165.95 24.00 11.00 9.65 1.19 4.22 0.97 1.08 0.61 26 4.81
Bharat Electronics 24 26 99.40 32.00 37.00 30.26 5.91 1.50 0.84 1.34 1.04 32 4.62 3 Best PEGs
Top 5 stocks with the least
Tata Power Co 25 22 205.70 26.00 66.00 29.57 2.91 0.85 0.17 1.65 1.59 24 3.00
price earnings to growth ratio
Reliance Industries 26 29 2,471.60 35.00 32.00 26.80 2.14 0.32 0.77 1.18 0.97 36 4.31 LIC Housing Tata Power Co
ITC 27 42 329.85 25.00 29.00 26.62 6.50 3.47 0.95 0.94 0.64 36 4.56 Finance
ICICI Lombard Gen. Ins. 28 25 1,238.45 29.00 58.00 47.67 6.66 0.76 0.77 1.18 0.84 27 4.48
0 0.14 0.16 0.17 0.18
Endurance Technologies 29 30 1,401.15 36.00 54.00 42.69 5.02 0.45 0.79 1.35 0.60 23 4.35
Greenpanel Industries 30 31 322.85 28.00 38.00 16.96 4.01 0.46 0.44 1.67 0.81 14 4.64
Blue Star 31 27 1,258.00 40.00 102.00 70.92 11.71 0.80 0.75 1.31 0.73 23 4.22 Britannia L&T Finance Oil India
Inds Holdings
Bharti Airtel 32 28 756.90 19.00 132.00 63.83 5.76 0.39 0.53 1.10 0.60 34 4.35
Mphasis 33 36 2,014.40 30.00 33.00 26.56 5.49 2.27 0.83 1.60 1.26 35 4.06
4 Income generators
DLF 34 43 374.90 25.00 62.00 61.34 2.53 0.81 0.91 1.65 1.64 23 4.65
Top 5 stocks with the highest
Coromandel International 35 34 881.85 30.00 27.00 17.09 4.11 1.35 0.61 1.37 0.90 12 4.58 dividend yield (%)
Cipla India 36 32 1,061.15 19.00 48.00 33.75 4.08 0.48 0.71 0.95 0.28 42 4.17 Coal India 21.09
Britannia Inds 37 38 4,299.25 25.00 35.00 67.75 40.38 1.31 0.00 1.02 0.65 42 3.98 Oil & Natural
8.00
Gas Corp
SBI Cards & Payment 38 33 780.25 47.00 73.00 45.52 9.50 0.32 0.62 1.33 1.18 27 4.18
Embassy Office
6.19
Oil & Natural Gas Corp 39 40 146.15 27.00 2.00 4.03 0.71 8.00 1.23 1.69 -0.10 28 4.07 Parks
Kalpataru Power 40 -- 519.40 29.00 26.00 14.10 1.78 1.24 0.80 1.33 0.97 15 4.40 Oil India 6.06
CESC 6.00
Greenply Industries 41 39 142.65 43.00 32.00 18.80 3.31 0.34 0.65 1.51 1.15 12 4.83
EPL 42 37 168.75 19.00 36.00 24.46 2.88 2.55 0.68 1.51 1.07 12 4.67
5 Least risky
BHEL 43 41 80.00 40.00 96.00 61.95 1.04 0.49 0.64 1.84 1.47 21 1.81 Top 5 stocks with the lowest
Jyothy Labs 44 44 206.30 22.00 68.00 46.00 5.16 1.22 0.68 1.16 0.87 17 4.18 downside risk
Glenmark Pharma 45 46 421.90 11.00 43.00 12.63 1.31 0.59 0.28 1.39 1.13 19 3.84 Britannia Inds
ITC
Container Corp Of India 46 45 722.10 30.00 44.00 41.44 4.06 1.39 0.96 1.44 1.11 32 3.84
Kansai Nerolac Paints 47 47 413.00 32.00 105.00 61.71 5.36 0.24 0.62 1.15 0.50 21 3.48
0.84 0.94 0.95 1.02 1.06
JB Chemicals & Pharma 48 -- 1,937.90 40.00 38.00 38.51 6.95 0.86 1.00 1.15 0.59 15 4.40
Gujarat State Petronet 49 35 278.25 18.00 3.00 9.49 1.96 0.73 0.38 1.47 1.34 25 4.72
Embassy Cipla India CESC
Eris Lifesciences 50 48 640.00 45.00 20.00 21.46 4.57 1.15 1.11 1.07 0.51 10 5.00 Office Parks
SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 11 JANUARY 2023. SOURCE: BLOOMBERG IN THE ADJACENT TABLE.
smart stats
ETW FUNDS 100

BEST FUNDS TO BUILD YOUR PORTFOLIO
LAGGARDS & LEADERS
Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).
LAGGARDS LEADERS
ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are 5.51 12.96
ranked on 3-year returns while debt-oriented hybrid and income funds are IDBI Nifty Junior Index Fund LIC MF S&P BSE Sensex ETF - Sensex
ranked on 1-year returns. 5.70 12.96

ICICI Prudential Nifty Next 50 ICICI Prudential S&P BSE Sensex ETF
6.06 12.96
RETURNS (%) JM Focused Fund HDFC S&P BSE Sensex ETF
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) 6.52 12.96
SBI Nifty Next 50 ETF SBI S&P BSE Sensex ETF
EQUITY: LARGE CAP
6.54 12.93
Quant Focused Fund
ICICI Prudential Bluechip Fund

182.75
35,929.40
5.25
5.96
13.64
11.55
5.53
2.44
21.50
15.69
11.36
11.02
2.62
1.66
21.50% Nippon India ETF Nifty Nippon India ETF S&P BSE Sensex
Canara Robeco Bluechip Equity Fund* 8,832.26 3.62 8.97 -3.42 14.76 12.73 1.87 THE 3-YEAR
RETURN OF
Kotak Bluechip Fund 5,427.09 4.64 9.55 -1.68 14.40 10.85 1.94
IDFC Nifty 50 Index Fund 574.62 5.33 10.51 0.12 14.31 11.90 0.60
QUANT
FOCUSED Equity: Flexi-cap 5-year returns
UTI Nifty 50 Index Fund* 9,502.80 5.43 10.69 0.06 14.31 11.93 0.30 FUND IS
HDFC Index Fund Nifty 50 Plan 7,551.40 5.41 10.62 -0.06 14.06 11.75 0.40 THE HIGHEST 3.45 17.22
ICICI Prudential S&P BSE Sensex Index Fund 656.42 5.27 10.81 0.06 13.97 12.44 0.27
IN ITS
CATEGORY. Motilal Oswal Flexi Cap Quant Flexi Cap Fund
UTI Mastershare Fund* 11,038.90 1.83 6.94 -6.22 13.80 10.27 1.94
4.42 14.83
HDFC Index Fund - S&P BSE Sensex Plan 4,214.10 5.25 10.76 -0.01 13.69 12.44 0.40
IDFC Focused Equity Fund Parag Parikh Flexi Cap Fund
Nippon India Index Fund - S&P BSE Sensex Plan 357.57 5.13 10.51 -0.29 13.64 12.13 0.88
Baroda BNP Paribas Large Cap Fund 1,439.97 4.62 9.72 -0.33 13.35 10.30 2.14 4.81 13.91
Tata S&P BSE Sensex Index Fund 176.82 5.21 10.61 -0.13 13.06 12.04 0.58 Nippon India Retirement IIFL Focused Equity Fund
Axis Bluechip Fund 36,890.65 -0.75 5.06 -11.11 9.80 10.86 1.65 5.06 12.65
EQUITY: LARGE & MIDCAP Taurus Flexi Cap Fund PGIM India Flexi Cap Fund
Quant Large and Mid Cap Fund 438.63 8.12 16.01 10.26 25.88 13.32 2.31
25.88% 5.64 12.14
SBI Large & Midcap Fund 8,993.03 2.20 13.79 3.81 19.38 11.57 1.80 LIC MF Flexi Cap Fund Canara Robeco Flexi Cap Fund
THE 3-YEAR
Mirae Asset Emerging Bluechip Fund 24,643.10 3.97 7.71 -4.47 18.27 12.38 1.75 RETURN
Canara Robeco Emerging Equities Fund 15,854.15 0.08 6.89 -5.39 17.64 9.97 1.76 OF QUANT
LARGE AND
Edelweiss Large & Mid Cap Fund*
Axis Growth Opportunities Fund

1,695.78
8,473.66
0.96
-3.05
8.65
2.91
-2.19
-11.46
16.75
16.72
11.09
—
2.16
1.87
MID CAP IS Equity: Mid-cap 3-year returns
THE HIGH-
Kotak Equity Opportunities Fund 11,662.47 3.62 11.66 2.77 16.65 11.45 1.79 EST IN ITS 13.70 35.53
CATEGORY. DSP Midcap Fund Quant Mid Cap Fund
EQUITY: FLEXI CAP
HDFC Retirement Savings Fund Equity Plan 2,633.76 5.41 11.98 5.45 21.62 12.09 2.06 15.37 33.01
PGIM India Flexi Cap Fund 5,379.73 2.32 7.17 -9.48 21.10 12.65 — HSBC Midcap Fund PGIM India Midcap Opportunities
Parag Parikh Flexi Cap Fund 28,546.26 1.25 3.83 -7.08 20.76 14.83 1.65
15.92 25.46
ICICI Prudential Retirement Fund 211.07 3.59 7.98 -0.45 18.21 — 2.59
Franklin India Prima Fund SBI Magnum Midcap Fund
IIFL Focused Equity Fund 3,500.96 3.74 11.79 -4.40 18.01 13.91 1.92
Union Flexi Cap Fund 1,396.13 2.48 8.81 -4.67 16.89 11.48 2.28 16.46 23.84
JM Flexicap Fund 249.33 5.76 13.02 2.66 16.42 11.65 2.59 IDBI Midcap Fund Mirae Asset Midcap Fund
Canara Robeco Flexi Cap Fund* 8,935.91 2.71 8.51 -5.52 15.94 12.14 1.80 16.49 23.74
Sundaram Focused Fund 808.83 1.81 9.58 -5.17 15.85 11.37 2.47
Sundaram Mid Cap Fund HDFC Mid-Cap Opportunities
UTI Flexi Cap Fund* 26,102.37 -3.84 2.31 -17.41 13.76 11.18 1.75
SBI Focused Equity Fund 28,452.99 -1.59 4.40 -10.25 13.35 10.08 1.60
EQUITY: MID CAP

Quant Mid Cap Fund 1,272.71 7.67 17.95 14.64 35.53 18.91 2.68 35.53%
Equity: Small-cap 3-year returns
PGIM India Midcap Opportunities Fund 7,576.62 -2.07 7.25 -4.39 33.01 15.42 —
THE 17.88 51.78
Edelweiss Mid Cap Fund* 2,477.71 -0.68 9.53 -0.73 23.70 10.47 2.11 3-YEAR
Aditya Birla Sun Life Quant Small Cap Fund
Nippon India Growth Fund 13,860.86 1.45 10.69 2.00 22.91 11.90 1.90
RETURN
OF QUANT 22.21 35.12
Kotak Emerging Equity Fund 23,223.54 1.40 10.85 2.07 22.35 12.21 1.69 MIDCAP
Motilal Oswal Nifty Bank of India Small Cap Fund
Axis Midcap Fund 19,741.37 -3.09 4.46 -8.11 18.06 13.71 1.78 FUND IS
THE HIGH- 22.95 34.95
EQUITY: SMALL CAP EST IN ITS Franklin India Smaller Canara Robeco Small Cap Fund
Bank of India Small Cap Fund 406.96 -2.10 10.45 -5.25 35.12 — 2.67 CATEGORY.
Canara Robeco Small Cap Fund* 4,367.47 0.20 9.22 1.62 34.95 — 2.06 24.68 32.29
Nippon India Small Cap Fund 23,765.05 1.84 14.16 2.64 32.29 13.33 1.83 Axis Small Cap Fund Nippon India Small Cap Fund
Edelweiss Small Cap Fund* 1,428.41 0.38 11.07 -0.18 30.30 — 2.20 24.74 30.30
Kotak Small Cap Fund 8,498.23 -1.81 5.87 -5.65 28.78 13.63 1.90
Invesco India Smallcap Edelweiss Small Cap Fund
SBI Small Cap Fund 15,335.11 -1.56 12.45 4.50 27.37 11.57 1.84
Axis Small Cap Fund 11,358.11 0.49 10.37 -0.02 24.68 16.42 1.92
EQUITY: VALUE ORIENTED Hybrid: Aggressive 5-year returns

SBI Contra Fund 7,204.54 5.37 13.51 9.06 29.43 12.70 1.92
29.43% 4.46 17.62
ICICI Prudential Value Discovery Fund 27,794.80 8.06 14.76 11.13 24.74 13.28 1.73
THE 3-YEAR Nippon India Equity Hybrid Quant Absolute Fund
Invesco India Contra Fund 9,901.64 2.75 9.97 -0.39 16.68 10.42 1.75
RETURN OF
UTI Value Opportunities Fund* 7,194.42 3.92 10.39 -0.11 16.53 11.29 1.97 SBI CONTRA 5.21 12.82
Kotak India EQ Contra Fund 1,473.54 6.92 13.55 3.19 16.50 12.41 2.24 FUND IS IDBI Hybrid Equity Fund ICICI Prudential Equity & Debt Fund
THE HIGH-
EQUITY: ELSS EST IN ITS 5.5 11.07
Quant Tax Plan 2,327.41 3.28 15.71 6.95 37.24 20.42 2.62 CATEGORY. LIC MF Children's Gift Fund Baroda BNP Paribas Aggressive Hybrid
IDFC Tax Advantage (ELSS) Fund 4,090.79 4.12 11.07 0.71 21.89 10.60 2.01
5.53 10.74
Bank of India Tax Advantage Fund 696.31 3.08 12.26 -4.22 21.50 10.90 2.47
LIC MF Equity Hybrid Fund Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Tax Saver Fund* 4,582.95 1.54 8.79 -4.13 19.01 13.90 1.98
PGIM India ELSS Tax Saver Fund 453.51 5.10 10.76 -0.08 18.62 11.11 — 5.82 10.57
Union Long Term Equity Fund 594.15 2.11 9.50 -2.07 17.85 11.15 2.49 IDFC Asset Allocation Fund Kotak Equity Hybrid Fund
Mirae Asset Tax Saver Fund 14,255.39 4.43 8.33 -3.40 17.40 12.55 1.68
ANNUALISED RETURNS IN % AS ON 11 JAN 2023.
smart stats
ETW FUNDS 100 Value Research

Fund Rating
Net Assets
(` Cr) 3-Month 6-Month
RETURNS (%)
1-Year 3-Year 5-Year
Expense
Ratio 1 Top 5 SIPs
Top 5 equity schemes based
DSP Tax Saver Fund* 10,715.09 5.50 10.18 0.48 17.16 11.20 1.75
Kotak Tax Saver 3,163.28 4.90 13.00 2.53 16.88 11.83 2.06 on 10-year SIP returns
HYBRID: EQUITY SAVINGS Quant Tax Plan
Mirae Asset Equity Savings Fund 592.44 2.83 6.19 2.31 10.70 — 1.41
23.37
UTI Equity Savings Fund* 260.96 3.35 6.15 4.47 9.89 — 1.51
Nippon India Small Cap Fund
Kotak Equity Savings Fund 2,058.40 3.37 6.12 5.43 9.32 7.94 2.08
Edelweiss Equity Savings Fund* 272.10 1.94 5.01 1.97 9.01 7.57 2.06 23.30
SBI Equity Savings Fund 2,368.51 0.40 4.70 0.66 8.69 6.89 1.18 SBI Small Cap Fund
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) 22.79
Quant Absolute Fund 867.83 3.90 12.75 9.47 29.61 17.62 2.31 29.61% Quant Active Fund
Bank of India Mid & Small Cap Equity & Debt Fund 392.35 2.67 11.10 -6.50 23.68 8.59 2.55 THE 3-YEAR
RETURN 22.06
ICICI Prudential Equity & Debt Fund 21,655.35 4.47 10.72 7.34 19.48 12.82 1.77
OF QUANT Quant Infrastructure Fund
HDFC Children's Gift Fund 6,179.13 3.51 9.04 3.25 15.95 10.54 1.94
ABSOLUTE
Kotak Equity Hybrid Fund 3,195.99 3.61 8.43 1.68 15.37 10.57 2.03 FUND IS THE 21.76
HDFC Retirement Savings Fund - Hybrid Equity Plan 933.17 4.64 8.97 2.67 14.80 9.97 2.28 HIGHEST IN ITS
CATEGORY. SIP: SYSTEMATIC % ANNUALISED RETURNS
Canara Robeco Equity Hybrid Fund* 8,593.14 2.83 7.91 -1.64 13.58 10.74 1.80
INVESTMENT PLAN AS ON 11 JAN 2023
Baroda BNP Paribas Aggressive Hybrid Fund 821.51 3.75 8.51 0.11 12.81 11.07 2.26
Mirae Asset Hybrid Equity Fund 7,323.43 4.03 8.32 -0.36 12.57 10.07 1.74
2 Top 5 MIPs
SBI Equity Hybrid Fund 57,409.31 1.27 6.33 -0.47 11.84 9.67 1.46
HYBRID: CONSERVATIVE (DEBT-ORIENTED)

ICICI Prudential Regular Savings Fund 3,319.77 2.25 4.74 4.26 8.61 8.09 1.73 Top 5 MIP schemes based on
SBI Conservative Hybrid Fund 6,842.80 2.06 5.37 4.14 10.54 7.86 1.11 3-year SWP returns
Kotak Debt Hybrid Fund 1,632.44 2.59 5.98 3.55 10.37 8.32 1.81
Canara Robeco Conservative Hybrid Fund 1,142.46 2.07 4.18 1.90 8.52 7.91 1.82 Bank of India Conservative Hybrid Fund
SBI Magnum Children's Benefit Fund 89.94 1.03 4.36 1.82 11.20 7.29 1.18 13.43
DEBT: MEDIUM TO LONG TERM SBI Magnum Children's Benefit Fund
SBI Magnum Income Fund 1,511.17 2.29 3.81 3.68 6.08 6.94 1.46 3.68% 11.30
Aditya Birla Sun Life Income Fund* 1,529.76 2.30 3.32 3.00 6.35 6.81 0.89 THE 1-YEAR
SBI Conservative Hybrid Fund
RETURN OF
DEBT: MEDIUM TERM SBI MAGNUM 10.24
ICICI Prudential Medium Term Bond Fund 6,255.53 1.97 3.42 4.54 6.59 6.85 1.42 INCOME IS
THE HIGH- Kotak Debt Hybrid Fund
Axis Strategic Bond Fund 1,569.40 2.01 3.29 4.12 6.48 6.65 1.08
EST IN ITS
SBI Magnum Medium Duration Fund 8,811.26 2.22 3.36 3.80 6.43 7.32 1.21 10.17
CATEGORY.
HDFC Medium Term Debt Fund 3,668.88 2.14 3.26 3.26 5.91 6.53 1.29 HDFC Hybrid Debt Fund
DEBT: SHORT TERM 9.47
ICICI Prudential Short Term Fund 14,357.74 1.88 3.76 4.98 6.33 6.92 1.07 4.98% SWP: SYSTEMATIC % ANNUALISED RETURNS
Aditya Birla Sun Life Short Term Fund* 5,664.66 1.71 3.13 4.38 6.25 6.81 1.10 THE 1-YEAR WITHDRAWAL PLAN AS ON 11 JAN 2023
UTI Short Term Income Fund* 2,087.84 1.72 2.92 3.94 7.46 4.84 0.96 RETURN OF
Axis Short Term Fund 7,478.34 1.84 2.79 3.88 5.71 6.66 0.99 ICICI PRU
SHORT TERM
3 Mid Cap: Cash holdings

HDFC Short Term Debt Fund 12,247.94 1.91 3.01 3.84 6.04 6.98 0.76
FUND IS
IDBI Short Term Bond Fund 31.69 2.02 3.01 3.46 8.24 6.20 0.75 THE HIGH-
EST IN ITS
DEBT: DYNAMIC BOND CATEGORY.
Quantum Dynamic Bond Fund 85.18 2.64 3.71 5.06 5.75 6.54 0.73
19.40
ICICI Prudential All Seasons Bond Fund 6,074.24 1.93 4.30 5.04 6.88 7.37 1.33 15.84
IIFL Dynamic Bond Fund 462.62 1.89 2.91 3.81 5.79 6.07 0.52
11.54
Kotak Dynamic Bond Fund 1,991.05 2.27 3.48 2.98 5.75 7.13 1.32
HDFC Dynamic Debt Fund 497.26 1.78 3.14 2.22 6.00 5.11 1.75 7.26 6.68
DEBT: CORPORATE BOND
ICICI Prudential Corporate Bond Fund 15,772.66 1.69 3.60 4.88 6.28 7.05 0.53 Expense as on 31 Dec 2022
* : Expense as on before 31
Nippon India Corporate Bond Fund 1,564.40 2.11 3.26 4.53 6.13 6.63 0.68
December 2022 IDFC Motilal Axis Kotak HSBC
Aditya Birla Sun Life Corporate Bond Fund* 12,547.07 1.99 3.26 4.39 6.58 7.30 0.47
Returns as on 11 Jan 2023 Midcap Oswal Midcap Emerging Midcap
Kotak Corporate Bond Fund 8,774.80 1.79 2.89 3.82 5.60 6.79 0.66 Assets as on 30 Nov 2022 Fund Midcap Fund Equity Fund
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Rating as on 31 Dec 2022 Fund
Did not find your fund here? % OF ASSETS AS ON 30 NOVEMBER 2022
Log on to www.wealth.economictimes.com for an exhaustive list.
Debt: Banking and PSU fund

Methodology
The Top 100 includes only those funds that have a 5- or
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
4 lowest expense ratio
4-star rating from Value Research. The rating is determined
by subtracting a fund’s risk score from its return score. Multi-cap: Mostly invested in large- and mid-cap
companies.
FUND 0.57 0.57
The result is assigned stars according to the following
distribution: Mid-cap: Mostly invested in mid-cap companies. RAISER 0.40 0.42
0.53
Top 10% Small-cap: Mostly invested in small-cap companies.
219
Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
Next 22.5% 100 listing) Income: Average maturity varies according to objective.
was the total number
Bottom 10% Gilt: Medium- and long-term; invest in gilt securities.
of stocks sold by equity
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more
less than three years old have been excluded. This ensures than 60%. diversified funds in Sunda- PGIM In- Franklin UTI Bank- DSP Bank-
that all the funds have existed long enough to be tracked for Debt-oriented aggressive: Average equity exposure November 2022, compared ram dia Bank- India ing & PSU ing & PSU
consistency of performance. Given the focus on long-term Banking ing & PSU Banking Debt Fund Debt Fund
between 25-60%. to an average of 192 stocks & PSU Debt & PSU
investing, liquid funds, short-term funds and FMPs are not
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure sold in the previous three Debt
the growth option of funds that reinvest returns instead of less than 25%. months (Aug-Oct 2022). % AS ON 30 NOV 2022
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity % EXPENSE RATIO IS CHARGED ANNUALLY.
Despite these rigorous filters, the list includes 2/3 funds of and derivatives.
METHODOLOGY OF TOP 100 FUNDS ON
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per WWW.WEALTH.ECONOMICTIMES.COM
The fund categories are: market conditions.
loans and deposits
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
Bandhan Bank 7.25 10,745 external benchmarks for pricing new home loans. Most banks have
DCB Bank 7.25 10,745 picked the RBI repo rate as the external benchmark.
RBL Bank 7.00 10,719
Yes Bank 7.00 10,719 REPO RATE: 6.25%
Karnataka Bank 6.80 10,698 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
DCB Bank 7.85 11,682 Bank of Maharashtra 8.70 8.35 10.05 8.55 10.55 7 Dec 2022
IDFC First Bank 7.50 11,602 Punjab National Bank 9.00 8.40 8.75 8.20 8.85 8 Dec 2022
Axis Bank 7.26 11,548 Central Bank of India 9.10 8.55 9.35 8.55 9.35 8 Dec 2022
Bandhan Bank 7.25 11,545
Canara Bank 8.80 8.55 10.80 8.55 10.80 7 Dec 2022
Federal Bank 7.25 11,545
Axis Bank -- 8.60 8.95 8.70 9.05 Not Given
TENURE: 3 YEARS
HDFC Bank -- 8.60 9.50 8.60 9.50 Not Given
DCB Bank 7.85 12,627
Indian Bank 8.95 8.60 9.65 8.60 9.65 8 Dec 2022
AU Small Finance Bank 7.75 12,589
IDFC First Bank 7.50 12,497 Punjab & Sind Bank 8.29 8.60 9.70 8.60 9.60 8 Dec 2022
Union Bank of India 7.30 12,424 Bank of Baroda 8.85 8.60 10.20 8.65 10.30 8 Dec 2022
Bandhan Bank 7.25 12,405 Union Bank of India 9.05 8.60 10.45 8.60 10.45 11 Dec 2022
TENURE: 5 YEARS Kotak Mahindra Bank 8.65 8.65 9.00 8.75 9.45 Not Given
DCB Bank 7.60 14,571 Bank of India 9.10 8.65 10.45 8.65 10.60 7 Dec 2022
AU Small Finance Bank 7.20 14,287 Bandhan Bank -- 8.65 14.00 8.65 14.00 9 Dec 2022
Axis Bank 7.00 14,148 Karnataka Bank -- 8.67 9.99 8.67 9.99 1 Dec 2022
HDFC Bank 7.00 14,148
UCO Bank 9.15 8.75 9.75 8.75 9.75 8 Dec 2022
ICICI Bank 7.00 14,148
IDBI Bank 8.85 8.75 10.50 8.85 12.00 12 Dec 2022
J & K Bank 8.85 8.85 12.35 8.85 12.35 10 Dec 2022
Top five senior citizen bank FDs SBI Term Loan 8.90 8.90 9.40 9.10 9.60 15 Dec 2022
Interest rate (%) What `10,000 ICICI Bank -- 8.95 9.70 9.05 9.85 Not Given
TENURE: 1 YEAR compounded qtrly will grow to
Bandhan Bank 7.75 10,798 Karur Vysya Bank 9.35 8.95 11.85 8.95 11.85 9 Dec 2022
DCB Bank 7.75 10,798 Dhanlaxmi Bank 8.30 9.00 9.65 9.50 10.15 1 Dec 2022
Axis Bank 7.50 10,771 Indian Overseas Bank 9.10 9.30 9.50 9.30 9.40 10 Dec 2022
RBL Bank 7.50 10,771
Bank of Baroda 7.25 10,745
TENURE: 2 YEARS
DCB Bank 8.35 11,797
Your EMI for a loan of `1 lakh
Axis Bank 8.01 11,719 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
IDFC First Bank 8.00 11,717
@ 7% 1,980 1,161 899 775 707
Indusind Bank 7.85 11,682
Bandhan Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.35 12,814
@ 9% 2,076 1,267 1,014 900 839
@ 10% 2,125 1,322 1,075 965 909
IDFC First Bank 8.00 12,682
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
Axis Bank 7.75 12,589
FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
Bandhan Bank 7.75 12,589
TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 8.10 14,932
Axis Bank 7.75 14,678 Sukanya Samriddhi Yojana 7.60 250 1.5 lakh p.a. One account per girl child 80C
HDFC Bank 7.50 14,499 Senior Citizens' Savings Scheme 8.00 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
ICICI Bank 7.50 14,499
Public Provident Fund 7.10 500 1.5 lakh p.a. 15-year tenure, tax-free returns 80C
Kisan Vikas Patra 7.20 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.00 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 6.60-7.00 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.60 14,571
AU Small Finance Bank 7.20 14,287 Single 4.5 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
Axis Bank 7.00 14,148 7.10 1,000
Scheme
Joint 9 lakh 5-year tenure, monthly returns Nil
City Union Bank 7.00 14,148
HDFC Bank 7.00 14,148 Recurring deposits 5.80 100 No limit 5-year tenure Nil
Savings account 4.00 500 No limit `10,000 interest tax-free Nil

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 11 January 2023 # Benefit available only for 5-year deposit
market watch
ALTERNATIVE INVESTMENT
RETURNS MONITOR
The scope and attractiveness of alternative investments is increasing. Here’s a weekly tracker of returns from such investments. But don’t
compare these with returns from traditional investments since the proportion and purpose of alternative investments is vastly different.
Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
47,751 55,872 60,831 67,963 981.38 1,074.26 82.64 77.41
12 JAN 2022 12 JAN 2023 12 JAN 2022 12 JAN 2023 12 JAN 2022 12 JAN 2023 12 JAN 2022 11 JAN 2023
PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER
CHANGE
X 1 WEEK 0.54% 1 WEEK 0.42% 1 WEEK 1.12% 1 WEEK 5.08%
X 1 YEAR 17.01% 1 YEAR 11.72% 1 YEAR 9.46% 1 YEAR -6.33%
PENNY STOCKS UPDATE

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

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR)
Jai Mata Glass 1.65 25.00 189.47 3.41 1,613.07 16.50 Nouveau Global Vent. 1.18 -7.81 -9.23 10.93 11,839.20 21.89
Virgo Global 9.64 27.01 186.05 0.37 -30.77 10.12 Reliance Comm. 2.27 1.34 16.41 36.26 2,603.54 627.78
Vintron Informatics 4.15 26.91 178.52 0.61 667.66 32.54 Alstone Textiles (India) 2.10 -13.93 23.53 44.26 2,458.91 267.75
Adcon Capital Services 4.15 26.91 154.60 9.42 159.47 137.53 Jai Mata Glass 1.65 25.00 189.47 3.41 1,613.07 16.50
KCL Infra Projects 4.56 26.67 75.38 1.95 235.46 120.06 Premier Capital Services 5.30 -6.53 -18.08 5.24 1,030.41 19.66
Shree Global Tradefin 8.50 0.95 71.37 37.88 48.96 1,081.29 Vintron Informatics 4.15 26.91 178.52 0.61 667.66 32.54
Radaan Mediaworks (I) 2.20 18.92 60.58 0.12 -56.24 11.91 VXL Instruments 8.15 0.87 -8.43 0.03 551.99 10.86
Future Lifestyle Fash. 8.56 -22.46 58.81 2.03 -45.68 172.70 Consolidated Const. 1.38 -3.50 -19.77 1.40 455.93 54.99
Croissance 9.12 -1.94 54.84 3.08 135.50 62.47 Prime Urban Dev. 6.32 -4.53 -4.68 0.02 355.58 16.84
Mauria Udyog 4.98 17.45 53.70 1.36 129.66 66.33 Rollatainers 1.32 -2.94 3.94 5.17 330.96 33.01
Top price losers Top volume losers

Sintex Industries 3.01 -9.06 -57.37 8.22 -100.00 180.36 Sintex Industries 3.01 -9.06 -57.37 8.22 -100.00 180.36
Jyoti Structures 8.14 -22.40 -49.19 2.27 108.38 89.17 Paras Petrofils 1.16 4.50 -32.16 2.29 -100.00 38.77
Sadhna Broadcast 8.86 -18.72 -42.47 3.30 -56.92 88.87 Greencrest Fin. Serv. 1.59 -8.62 -31.17 2.36 -92.90 58.11
Sumeet Industries 3.91 -4.87 -37.04 1.28 19.64 40.52 Ontic Finserve 1.96 -8.84 -35.53 4.05 -90.65 17.64
Ontic Finserve 1.96 -8.84 -35.53 4.05 -90.65 17.64 GG Engineering 1.27 -3.05 -23.95 14.70 -82.16 48.35
Paras Petrofils 1.16 4.50 -32.16 2.29 -100.00 38.77 Bhandari Hosiery Exp. 5.72 -3.05 -4.83 1.10 -72.30 83.80
Greencrest Financial Ser. 1.59 -8.62 -31.17 2.36 -92.90 58.11 Excel Realty N Infra 0.50 -3.85 19.05 20.70 -71.46 70.54
Maharashtra Corp. 1.82 -14.15 -27.20 15.44 -30.75 114.95 Madhav Infra Projects 5.51 -0.90 -12.40 4.51 -63.21 141.17
Goenka Diamond & Jew. 1.26 -2.33 -25.44 1.54 82.98 39.94 Ansal Housing 4.14 -3.72 -3.72 2.02 -63.07 24.59
GG Engineering 1.27 -3.05 -23.95 14.70 -82.16 48.35 Vikas WSP 1.77 -1.67 -8.29 1.03 -58.87 36.18
STOCKS HAVE BEEN SELECTED USING THE FOLLOWING FILTERS: PRICE LESS THAN `10, ONE-MONTH AVERAGE VOLUME GREATER THAN OR EQUAL TO 1 LAKH, AND MARKET
CAPITALISATION GREATER THAN OR EQUAL TO `10 CRORE. DATA AS ON 12 JANUARY 2023. SOURCE: ETIG DATABASE AND BLOOMBERG.
mutual funds
HDFC TAXSAVER
Good show in past two years

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

BASIC Financial 33.25
FUND BENCHMARK CATEGORY AVERAGE FACTS Energy 11.27
Technology 11.04
DATE OF LAUNCH
17.00 31 MARCH 1996
16.01 15.31 Automobile 9.86
11.27 CATEGORY
9.27 EQUITY Healthcare 8.53
7.66 7.69
TYPE
0.51 -1.79 ELSS The fund portfolio boasts large
presence in financials.
1-YEAR 3-YEAR 5-YEAR AUM*
AS ON 10 JANUARY 2023
`9,993 Crore
BENCHMARK
Top 5 stocks in portfolio (%)
The fund has beaten both index and peers by
a comfrtable margin over last one year. NIFTY 500 TOTAL HDFC Bank 9.78
RETURN INDEX
ICICI Bank 9.54
Rolling returns (%)

WHAT IT State Bank of
India 6.14
COSTS
FUND BENCHMARK
Bharti Airtel 6.05
15.34
Hindustan
1-YEAR Aeronautics 5.07
16.22 NAV**
GROWTH OPTION The fund now runs a very compact portfolio
`815.32 featuring large positions in top bets.
10.92
3-YEAR IDCW
12.51 `58.84
MINIMUM INVESTMENT
`500 Recent portfolio changes
12.09
5-YEAR
MINIMUM SIP AMOUNT New Entrants
12.50
`500 Oil & Natural Gas Corporation.
EXPENSE RATIO*** (%)
The fund’s long term track record indicates AS ON 10 JANUARY 2023 1.80
underperformance across time frames. Complete Exits
EXIT LOAD
Note: Different benchmark is used due to non availability of stated benchmark data. Sadbhav Infrastructure Project, Zomato.
The above figures denote daily average rolling return over past decade for relevant time frames. 0
*AS ON 31 DECEMBER 2022
**AS ON 10 JANUARY 2023 Increasing allocation
WHERE THE FUND INVESTS

***AS ON 30 NOVEMBER 2022
Bank Of Baroda, Delhivery, Prestige Estates
Projects (Oct), Prestige Estates Projects,
TeamLease Services (Nov), Infosys (Dec).
Portfolio asset Fund
allocation style box
Growth Blend Value
How risky is it?
Large
Equity 95.99%
CAPITALISATION
Fund Category Index

Large cap 91.22%
Standard Deviation 22.19 21.89 22.80
Medium
Mid cap 6.85%

Small cap 1.93% Sharpe Ratio 0.64 0.62 0.68
Small
Debt & Cash 4.01% Mean Return 17.91 17.38 19.13
INVESTMENT STYLE FUND BASED ON 3-YEAR PERFORMANCE.
The fund is heavily tilted

MANAGER The fund’s risk-return profile is
similar to its category average.
towards large caps. ROSHI JAIN
TENURE: 11 MONTHS
Source: Value Research
Should
The tax-saving fund runs a much down sharply. It continues to in select high conviction bets towards outperformance in past
sharper large cap tilt compared retain a top-heavy skew with relative to the index. Its past two years, aided by the market
You to category peers. The portfolio

construct has changed under
large positions in select bets
and modest positions in the bulk
heavy bias towards energy
stocks has been shed while
tilt towards value stocks. It
remains to be seen if the fund
Buy the new fund manager, with the
number of holdings being cut
of its portfolio. The fund also
retains large active positions
tilting more towards financials.
The fund has seen a sharp shift
can sustain improvement in
return profile over the long run.
pick of the week
Emami: Decent growth prospects

Buoyant industry outlook, focus on e-commerce and rural distribution expansion to drive growth.
F Fundamentals
MCG company Emami reported weak numbers in the product availability across major online marketplaces as a
second quarter of 2022-23 despite decent growth of its part of its strategy to go direct to consumers. To improve ur-
ban offtake, Emami is focusing on e-commerce. It launched CONSENSUS
international business. It reported a marginal 3.2% ACTUAL
ESTIMATE
y-o-y growth in consolidated revenue while the oper- websites for Zandu, Kesh King and BoroPlus, and made its
2021 2022 2023 2024
ating profit fell 29.5% y-o-y. The performance was impacted by products available on eB2B platforms like Udaan and Jio Mart.
Revenue (` cr) 2,854.25 3,157.53 3,492.73 3,832.60
inflation-led demand pressure and a high covid base in pain Third, to support its international business, the company
EBITDA(` cr) 954.71 1,043.28 944.82 1,083.68
management and the healthcare range of products. has localised supply chain with its proprietary manufactur-
The performance is set to improve in the third quarter, ing facility in Bangladesh, and third-party engagements in Net Income (` cr) 428.22 797.56 700.20 823.07
which will lead to a decent recovery Germany, Sri Lanka, UAE and Basic EPS (`) 9.63 17.95 16.70 19.37
in sales volumes in the coming quar- Thailand. It has launched new
ters. Also, the reduction in key input
Analysts’ views products internationally and wit- Valuations PBV PE
DIVIDEND
YIELD (%)
prices bodes well for the company as nessed strong growth in MENA
2 Emami 9.15 22.79 1.86
it will help expand gross margins. and CIS regions in second quarter.
According to the consensus of
Hold 25 Fourth, Emami enjoys a success-
Tata Consumer Products 4.64 65.81 0.80
Buy Dabur India 11.52 55.90 0.95
analysts compiled by the Thomson ful track record in the acquisition
Godrej Consumers Products 8.10 58.69 0.00
Reuters-Refinitiv database, the com- 1 of brands. It acquired Dermicool
Hindustan Unilever 12.40 63.05 1.31
pany is expected to report a 12.5% y- Sell from Reckitt Benckiser in 2021-22.
o-y jump in EPS growth in the Dec
quarter. Emami is set to release its
According to a Sharekhan report,
this provides synergistic benefits Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
third-quarter results on 3 February. and scope for margin improvement
Analysts are confident about the in the long run. 10 Jan 2023 Goldman Sachs Buy 520
long-term prospects of Emami due to Emami has maintained a sales 10 Jan 2023 Batlivala & Karani Securities Hold 550
several reasons. First, it will benefit Rising per capita income, increasing health CAGR of 9.7% over 2019-20 and 2021- 9 Jan 2023 Investec Buy 539
from the growth of the FMCG sector. awareness and growth of e-commerce will boost 22. A Motilal Oswal report believes 9 Jan 2023 Motilal Oswal Buy 520
Rising per capita income, increas- the FMCG sector, which will, in turn, improve there could be a stock re-rating if 9 Jan 2023 Axis Capital Buy 550
ing health awareness, changing Emami’s growth prospects. this trajectory leads to sustainable
lifestyle of consumers and growth of
e-commerce are the chief drivers. According to Emami’s 2022
double-digit sales growth.
Selection methodology: We pick the stock that has shown
Relative performance 108.7
100 MARKET PRICE: `429.60
annual report, the FMCG market in India is expected to reach the maximum increase in ‘consensus analyst rating’ during
`15.62 lakh crore by 2025 from `7.81 lakh crore in 2020. the past month. The consensus rating is arrived at by averag- SENSEX
Also, the sector will be supported by government initiatives ing all analyst recommendations after attributing weights to 98.9
like MSP direct payments to wheat and paddy farmers, crop as- each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and
sessment, digitisation of land records and Gati Shakti scheme. 1 for strong sell). An improvement in consensus analyst rating 85.2
Second, the strategy of moving the distribution model from indicates that the analysts are getting bullish on the stock.
wholesale to direct reach has improved profitability and mar- Only stocks with at least 10 analysts covering them are consid-
ket access. Emami is also continuing investments in Project ered. You can see similar consensus analyst rating changes 11 JAN 2022 ET FMCG EMAMI 12 JAN 2023
Khoj, which aims at expanding rural distribution. It enabled during the past week in ETW 50 table. —Sameer Bhardwaj Emami is compared with ET FMCG. Stock price and index values normalised
to a base of 100. Source: ETIG and Bloomberg.
WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
*STOCK PRICES AS ON 12 JANUARY
STOCK ADVICE COMMENT

HOUSE PRICE* (`) PRICE (`) UPSIDE (%)
Initiate with ‘Buy’ due to its potential to unlock value through the suite of interconnected products.
RateGain Travel Technologies AnandRathi Buy 307 415 35.2 Also, its presence across the value chain in tourism and hospitality sector helps customers acceler-
ate revenue generation.
Strong demand prospects of stainless steel and likely strengthening of market position through
Jindal Stainless PhillipCapital Buy 240 300 25.0 capacity augmentation. Also, economies of scale and synergy benefits likely to drive cash flows.
Recommend ‘Buy’ due to its strong liability franchise, robust credit growth, improving asset qual-
Equitas Small Finance Bank Monarch Buy 59 73 23.7 ity, increasing disbursements, operating leverage and likely reduction in cost to income ratio that
will assist RoE expansion in the future.
Consistent gains through acquisitions, turnaround of PTL business, value creation through demerg-
Allcargo Logistics Jefferies Buy 406 500 23.2 er, focus on growing cash flow from operations and likely improvement in dividend payout.
Optimum mix of superior financial and operational metrics. Also, store expansion, scaling of inter-
Metro Brands Haitong Outperform 860 1,040 20.9 national brands and expansion of product offerings are key positives.
Retain ‘Buy’ due to its strong execution capabilities, healthy balance sheet, robust order book, and
PNC Infratech Sharekhan Buy 305 360 18.0 prudent capital management. It is likely to be among the key beneficiaries from high capital alloca-
tion expected during 2023-24 in the upcoming budget.
SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) DOWNSIDE (%)
Kotak Higher wage bill, additional prior period provisioning and declining prices of imported coal are
Coal India Reduce 217 230 6.0
Securities expected to impact earnings. Higher capex cost will contain cash generation in the future.
tax optimiser
NPS, rent to dad save `1 lakh tax

Sudhir Kaushik of Taxspanner.com tells readers how they can
optimise their tax by rejigging their income and investments.
D
elhi-based finance pro-
fessional Ranjan Kumar
pays a moderate tax but he
can reduce it significantly
with a few adjustments. INCOME
Taxspanner estimates that Kumar
can save nearly `1 lakh in tax if he
FROM EMPLOYER
claims exemption for HRA, his salary
structure is rejigged to include some
tax free perks and his company offers INCOME HEAD CURRENT SUGGESTED
him the NPS benefit. He also needs to
buy health cover for his parents.
Basic salary 6,45,000 6,45,000
Kumar doesn’t claim HRA exemp-
tion because he lives in this parents’ House rent allowance 3,22,500 3,22,500 Reduce this taxable
house. If he pays a rent of `25,000 per portion of the pay
month to his father, his HRA will be package.
Special allowance 2,65,000 1,10,000
exempt up to `2.35 lakh, resulting in
in a tax saving of `50,000. However, Conveyance reimbursements 1,20,000 1,20,000 Ask for higher
his retiree father will be taxed for the telecom and
`3 lakh he receives as rent after a 30% internet allowance.
Telephone 6,000 12,000
standard deduction.
Kumar should also ask his com- These perks are
Meal coupons 0 22,500
pany for the NPS benefit. Under Sec tax free subject to
actual usage and
80CCD(2), up to 10% of the basic Newspaper allowance 0 12,000 reasonable limits.
salary put in NPS is tax-free. If his
company puts `5,375 (10% of his basic LTA 0 50,000 This is tax free if
pay) in NPS every month, his tax will claimed twice in
block of four years.
reduce by around `14,000. Another Employer's contribution to Provident Fund 77,400 77,400
`10,400 can be saved if he invests
Up to 10% of basic
`50,000 in NPS on his own. Contribution to NPS under Sec 80CCD(2) 0 64,500 salary put in NPS is
Given that he also works from tax free.
home, Kumar should ask his company TOTAL 14,35,900 14,35,900
for a higher telephone allowance. He
should also ask for some common tax-
free perks such as meal coupons and
LTA. If he gets `22,500 worth of meal INCOME FROM OTHER SOURCES
coupons, a newspaper allowance of Switch to debt
`1,000 per month and LTA of `50,000, Interest income 1,050 0 funds to avoid tax
his annual tax will reduce by roughly on interest.
Capital gains 0 0
`18,000.
Kumar should also buy a health Rental income 0 0
cover for his parents. A health insur-
ance premium of `25,000 per year will TOTAL 1,050 0
save him around `5,200 in tax. All figures are in `
Tax-saving investments Denotes suggestion to increase Denotes suggestion to reduce
INVESTMENT CURRENT SUGGESTED

OPTION ( `) ( `)
Provident Fund 77,400 1,03,235 Surrender

low-yield
PPF 50,000 40,000 traditional
insurance
Ranjan Kumar’s tax
Life insurance 28,000 0 policy.
TOTAL TAX SAVED WRITE
NPS under Sec 80CCD(1b) 0 50,000 Invest the TAX ON TAX ON
TO US
`99,804
TAX ON OTHER CAPITAL
money in NPS
TOTAL ADMISSIBLE 1,50,000 2,00,000 and save more
SALARY INCOME GAINS
FOR HELP
tax. CURRENT PER YEAR Paying too much
tax? Write to us
`1,24,956 328 0 at etwealth@
Other deductions Pay rent to `1,25,284 TAX RATIO timesgroup.com with
‘Optimise my tax’
(Total tax as % of annual income)
EXEMPTION OR CURRENT SUGGESTED father and as the subject. Our
DEDUCTION ( `) ( `) claim HRA EXISTING SUGGESTED experts will tell you
exemption. SUGGESTED ( `) ( `) how to reduce your
HRA exemption 0 2,35,500 tax by rejigging your
Medical insurance 7,000 32,000
Buy health
insurance for
`25,480 0 0 8.7% 1.8% pay and investments.
parents as `25,480
TOTAL 7,000 2,67,500 well.
mutual funds
Early start brings ambitious PORTFOLIO

DOCTOR
goals within easy reach Not many
ARINDAM
investors
Anup Ramteke is saving for multiple goals. Here’s what the doctor has advised: know
1 2 3 4 whether
PORTFOLIO
CHECK-UP DOWNPAYMENT FOR CHILD’S EDUCATION: CHILD’S MARRIAGE: RETIREMENT INCOME: they have
GOALS
HOUSE: 2 years 20 years 26 years 22 years

invested in
Investing in equity PRESENT COST: `25 lakh PRESENT COST: `40 lakh PRESENT COST: `15 lakh CURRENT NEED: `1.2
funds for past 10 FUTURE COST: crore (`50,000 a month) the right
FUTURE COST: FUTURE COST:
years.
`28.6 lakh `2.69 crore `87 lakh FUTURE COST: `5.3 crore funds and if their
Has been investing fund portfolio is on
irregularly and AMOUNT EXISTING RECOMMENDED ACTION NEW SIP
FUND NAME track. The Portfolio
without any pattern. INVESTED (`) SIP (`) (`)
Also invests in direct HDFC Short Term 2,64,000

Increase SIP to `30,000 to save for the
2,000 downpayment of house 30,000 Doctor assesses the
stocks via monthly health of the fund
contributions. Hold these fixed deposits and use for house
Fixed deposits 2,20,000 0 downpayment. 0
portfolio, examines the
Direct stocks can be
volatile. Switch to Stocks 3,88,000
Reduce exposure to direct stocks and gradually shift
money to short-term debt fund.
0 schemes and their
1
funds instead. suitability with regard to
House goal is very SBI Magnum Medium Duration 2,30,000 5,000 Continue SIPs in this medium term debt fund. 5,000
the goals and, if
near. Switch from Shift corpus and SIPs to HDFC Short Term debt Fund
equity to debt. SBI Bluechip 1,63,000 1,000 to consolidate portfolio. 0 required, recommends
ICICI Prudential Equity & Debt 2,73,000
Continue SIPs in this outstanding hybrid fund.
5,000 Increase amount by 10% every year. 5,000
corrective measures. The
Note from
the doctor advice given is based on
Continue SIPs in this outperforming large and mid
2 Mirae Asset Emerging Bluechip 4,78,000 15,000 cap fund. Hike amount by 5% every year. 15,000 the performance of the
Needs to restart
some terminated 3 SBI Small Cap 2,10,000 5,000 Continue SIPs in this outstanding small cap fund. 5,000 funds, the risk profile of
SIPs.
Continue SIPs in this outstanding flexi cap fund. Hike
the investor as well as
Opt for balanced Parag Parikh Flexi Cap 48,000 2,500 amount to `3,000 and increase by 5% every year. 3,000
allocation to debt
his financial goals.
in NPS. UTI Nifty 50 Index 10,000 4,000 Continue SIPs in this index fund for stable returns. 4,000
Review invest-
Motilal Oswal Nasdaq 100 FOF 2,500 0 3,000 Assumptions used
ments and rebal- Restart SIPs of `3,000 in these global funds. In-
ance at least once
4 crease SIP amounts by 5% every year.
in the calculations
Motilal Oswal S&P 500 Index 32,000 0 3,000
in a year. INFLATION
Reduce risk NPS 2,77,684 13,500
Continue contributing to this low-cost retirement
13,500 Education For all
saving scheme. Hike by 10% every year. expenses
when goal is near other goals
so that you don’t Continue contributing to these schemes and do not
EPF and PPF 21,20,000 20,618 withdraw before retirement 10,618
miss the target.
, The goals can be reached using the mutual
10% 7%
TOTAL `47,16,184 `73,618 funds marked in the same colour. `1,07,118
RETURNS
Equity funds Debt options
Take loan to fund kids’ education goals 12% 8%

Shravan Kumar is saving for his children’s studies and retirement. Here’s what the doctor advised:
1 2 3 PORTFOLIOS
PORTFOLIO ANALYSED BY
DAUGHTER’S EDUCATION: SON’S EDUCATION: RETIREMENT INCOME: 18 years
CHECK-UP
GOALS
RAJ KHOSLA,
8 years 18 years CURRENT NEED: `1.8 crore Managing Director
PRESENT COST: `25 lakh PRESENT COST: `25 lakh (`75,000 a month) Investing in equity and Founder,
funds for past 4-5 MyMoneyMantra
FUTURE COST: `53.6 lakh FUTURE COST: `1.15 crore FUTURE COST: `6.08 crore
years.
Education goals are
FUND NAME AMOUNT
INVESTED (`)
EXISTING
SIP (`) RECOMMENDED ACTION ambitious and take WRITE
Continue SIPs in this outstanding large cap fund and hike by 10%
up all resources. TO US
Axis Bluechip 71,855 5,000 every year. Nothing left to fund FOR HELP
Increase SIPs to `2,000 in this outperforming small cap fund and retirement.
Axis Small Cap Fund 7,978 500 If you want your portfolio examined,
hike by 10% every year. Take loan for educa- write to etwealth@timesgroup.com
1
tion instead. with “Portfolio Doctor” as the subject.
All Weather Investing Small Case 69,824 5,000 Continue investing in this basket of stocks. Mention the following information:
Review investments
z Names of the funds you hold.
Sukanya Samridhi Yojana 2,39,739 12,500 Continue contibuting in the scheme to build a tax free corpus. and rebalance at z Current value of the investment.
least once in a year. z If you have SIPs running in any
Switch corpus and SIPs to diversified fund for more stable returns. of them.
ICICI Pru Technology 20,754 1,500 Hike by 10% every year. Reduce risk when z The financial goals for which you
2 goal is near so that invested.
PPF (son and self) 2,48,000 12,500 Continue contibuting in the scheme to build a tax free corpus. you don’t miss the z How much you need for each
target. financial goal.
z How far away is each goal.
TOTAL `4,18,411 `37,000
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.
I am thankful to ET Wealth for the
detailed, useful information in your
latest cover story ‘Best ways to save tax’. Tax saving for The information about travelling in
Haryana in your feature ‘State Secrets’ was
senior citizens
It’s a timely article for readers on the quite interesting. However, it would be
various options that they can invest in to helpful if you could add photos of all the
save income tax. Great job done by you. places you have described in the story for
B.L. Hedaoo The cover story on taxation was readers to understand better.
an exhaustive guide for taxpayers. Harihar Joshi
Dhirendra Kumar always gives While the NPS and the PPF are the
constructive information in his column most prevalent due to a large inves- I read Uma Shashikant’s ‘ Simple
‘Money Mysteries’. But there are many tor base, tax-saving insurance and resolutions for 2023’ with profound
conservative investors who believe in Ulips are preferred options, con- interest. Of her 10 resolutions, the one
investing only in FDs of nationalised sidering investors’ requirements. that was very close to my heart and has
banks.They do not understand the However, the temptation of annuities become a habit is ‘making donations’. I
language of mutual funds, irrespective or pension funds are a mirage as we donate regularly to feeding cows as well
of explaining to them the growth of their don’t know how long we will get them as pay the school fee of my industrious
money, probably due to fear of risks and as the timeline of our life is uncer- car driver’s daughter every year. It’s a
losing money. The best suggestion given tain. This lowers the preference for blissful experience.
by Kumar is to follow the strategy of pension funds. Investments should S. Ramakrishnasayee
investing in FDs and diversified equity be such that they suit our long-term
funds and balanced funds through SIPs. needs and provide reasonable liquid- I wait every Monday morning for ET Wealth
N.K. Thukral ity at any point of time. to catch up on money matters. The columns
Vinod Johri by Dhirendra Kumar and Uma Shashikant
Your article, ‘Direct plans not for all’, are wonderfully scripted, educative and
was very useful. As informed therein, thought-provoking. Their selection of
only 19% of retail assets are in direct expense ratio. Also, this information story should be an eye-opener for retail topics and penning them in simple language
plans. It is because majority of the retail is not disclosed by the distributors to investors. Sebi should encourage small is a treat. The investments return monitor
investors are not aware of the higher the investors. The difference of corpus investors to invest in direct plans. and statistics pages are also good to track.
returns they get at the end due to low the investors get as per the table in your H.V.M. Rao Mukunda Rao
REALTY Prominent area in Bengaluru

HOT SPOT Whitefield is highly in demand because of its proximity to employment hubs.
Supply by BHK
LOCALITY SNAPSHOT 50%
WHITEFIELD, BENGALURU 43%
Whitefield, in east Bengaluru, is one of the fast-growing micro markets owing to its proximity to key employment hubs.
Locality hosts many prominent gated communities/integrated townships, IT/business parks, malls and other social infrastructure.
Enjoys good connectivity to the city via Outer Ring Road (ORR), Old Madras Road (OMR), Old Airport Road and Whitefield Main Road. 7%
Key employment hubs in Whitefield-KIADB Export Promotion Industrial Area, ITPL and Brigade Tech Park.
2 BHK 3 BHK >3 BHK
Hospitals: Sri Satya Sai Baba, Manipal | Schools: Deens Academy, Narayana E-Techno School | Malls: Nexus Whitefield, Phoenix.
Consumer preference
by budget (`)
PRICE RANGE: `3,100-12,000 psf DISTANCES: KIAL Airport : 39 km SMVT Bengaluru Railway Station: 16 km NH-44: 8 km
18% 16% Below 50 lakh
2 BHK
850 (sqft)
Top Capital Value 2 BHK Rent 50-75 lakh
Locality (`/sqft) (`/month) 75 lakh-1 crore
`70
lakh (avg)
ITPL
Kadugodi
20% 28% 1-1.25 crore
Hoodi Kadugodi 3,600-10,400 9,500-25,000 Above 1.25 crore
18%
KIADB Brigade
Whitefield Tech Park
3 BHK Varthur 3,100-11,500 10,000-50,000
Bengaluru Kundalahalli
1,200 (sqft) Consumer preference
1.10
`crore by carpet area (sqft)
NH-44
Whitefield
Hoodi 4,100-12,000 18,000-48,000
Rd
(avg) 5%
ain
Varthur
Below 700
M
Gunjur 5,000-10,100 20,000-40,000

ield
19% 700-900
>3 BHK
25%
itef
2,400 (sqft) Gunjur 900-1,100

Wh
1,100-1,300
2.70
`crore Kundalahalli 4,700-9,100 20,000-45,000 27%
24% Above 1,300
(avg)
Note: Map not to scale *Capital Value on Carpet Area
Schools 15+ Hospitals 10+ Restaurants 20+ Banks 10+ Grocery Stores 20+ Petrol Pumps 5+ In dia’s No. 1 P ropert y Sit e
The Economic Times Wealth is available at an invitation price of `8/issue. To book your copy, contact your newspaper vendor or call 011 - 39898090; Email: crm.delhi@timesgroup.com; SMS ETWS to 58888
The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of PUBLISHED FOR THE PROPRIETORS, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110 002,
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 Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP. Regd. Office:
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times Dr Dadabhai Naoroji Road, Mumbai 400 001. EDITOR: Babar Zaidi (Responsible for selection of news under PRB Act). © Reproduction in whole or in
Wealth will not be liable for any direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers part without written permission of the publisher is prohibited. All rights reserved.
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions. RNI NO. DELENG/2011/37994. MADE IN NEW DELHI VOLUME 13 NO. 03

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THE ECONOMIC TIMES INCREASE

Don’t get Find out

plans, making these more relevant for this

Fisdom Private Wealth. “There is simply

Is it a fair comparison? between market capitalisations without

Performance of active funds can vary inversely with market returns

% funds outperforming % AUM outperforming

3 years 5 years 3 years 5 years 68

ease journey How to invest for goals

by Riju Mehta Portfolio Buying a house 2.65 crore / 1 yr

Just get the basics

money sab gyani hai.” Perhaps nowhere

mysteries decades of thinking, talking and listening

Consider stocks that

DEEPAK NITRITE NARAYANA HRUDAYALAYA

APOLLO HOSPITALS GUJARAT STATE PETRONET CIPLA

5,205 18.1% 10.1 279 341 22% 20 0 1

I am 35 and have a 3-year-old son and I want to sell my 20-year-old dwell-

get a rough idea about the fee structure for a

Why you must

there is no guarantee how much or by by LIC and has a tenure of 10 years

smart things to know

Gifts for the grandchildren

State Secrets: Himachal Pradesh

ET WEALTH TOP 50 STOCKS

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

1 Fast growing stocks

ETW FUNDS 100

ranked on 1-year returns. 5.70 12.96

EQUITY: MID CAP

EQUITY: VALUE ORIENTED Hybrid: Aggressive 5-year returns

ETW FUNDS 100 Value Research

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

3 Mid Cap: Cash holdings

Debt: Banking and PSU fund

 Top 10% Small-cap: Mostly invested in small-cap companies.

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

Good show in past two years

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

Point-to-point returns (%)

FUND BENCHMARK CATEGORY AVERAGE FACTS Energy 11.27

Rolling returns (%)

WHERE THE FUND INVESTS

Fund Category Index

Mid cap 6.85%

Debt & Cash 4.01% Mean Return 17.91 17.38 19.13

INVESTMENT STYLE FUND BASED ON 3-YEAR PERFORMANCE.

The fund is heavily tilted

You to category peers. The portfolio

Emami: Decent growth prospects

WHAT EXPERTS ADVISE

STOCK ADVICE COMMENT

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

Top 10% Small-cap: Mostly invested in small-cap companies.