NG 3.7 PubDate: 25-12-2023 Zone: ETWealthDelhi Edition: 1 Page: DETWDFP User: manish.

kumar10 Time: 12-22-2023 20:03 Color:

THE ECONOMIC TIMES RELIANCE, ADANI

AMONG TOP
WEALTH
CREATORS
P12
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 13 No. 52 | December 25-31, 2023 | 24 pages | `8

GET RID OF BAD

INSURANCE NOW
If your insurance
policy is not suited to
your needs, surrender
it to avoid further
pain. P2

CONSIDER
DIFFERENT STOCKS WITH CAREER
TYPES OF STRONG TRENDS
SAVERS MARGIN FOR 2024
P7 PROFILES P14
P10
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP2 User: manish.kumar10 Time: 12-22-2023 19:49 Color:

cover story
02 The Economic Times Wealth December 25-31, 2023
PHOTOS: GETTY IMAGES

GET RID OF BAD

INSURANCE NOW
If your insurance policy is not suited to your needs, surrender it to avoid further pain.

by Babar Zaidi
Mitesh Sinha

T
52 years, New Delhi
here is just one good reason to
buy life insurance: safeguard-
ing the family’s financial
His broker friend advised him to buy a guaran-
future if the breadwinner dies.
teed return insurance policy two years ago. He
However, there are plenty of will pay `85,000 a month for 10 years. From the
wrong reasons to do the same. Topping the 13th year onwards, he will get `1.7 lakh a month
list is the need to save tax. The assured re- for the next 10 years. The policy also offers him
turns and enormous maturity amount also a life cover of `1 crore.
look tempting. Your parents may be push- Why he should surrender...
ing you to buy one. Or maybe the seller is a
The IRR of the policy is less than 6%. He has paid
friend or relative who can’t be refused. premiums for two years, so the policy now has
Whatever be the reason, millions of a surrender value. He can get back around `6.12
Indians are holding life insurance policies lakh out of the `20.4 lakh he has paid in the past
two years. If the surrender value and future pre-
that don’t suit their needs. Meet Mitesh
miums are invested in an option that earns 7.5%,
Sinha (see picture), who bought an insur- he will be able to build a bigger corpus.
ance policy on the advice of a friend two
years ago. “I was looking for a plan that Why he won’t...
would give me guaranteed income in re- The very thought of losing `14.28 lakh in sur-
tirement,” he says. He is pouring `85,000 a render charges is unacceptable to this risk-averse
investor. Besides, he doesn’t want to sour rela-
month into the plan, and will get `1.7 lakh
tions with his broker friend. Also, though he is fit
a month after 12 years. The catch: the guar- and in normal health, given his age, he may not
anteed income will only be for 10 years. The get a high-value life insurance easily.
return on the investment is less than 6%.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP3 User: manish.kumar10 Time: 12-22-2023 19:51 Color:

cover story
The Economic Times Wealth December 25-31, 2023 03

WHO
GAINS AGE OF POLICY ANNUAL LIFE MATURITY

FROM
BUYER TERM PREMIUM COVER VALUE

30 years 35 years `28,801 `10 lakh `24.9 lakh

It makes more sense to surrender a policy
early than to continue it and lose more.
12 lakh

Surrender value is very

low in initial years, but
10,08,350 it makes sense to close
the plan early.
10 lakh
Year 10
Surrender value: 53.3% 8,64,300
of premiums paid Calculation has factored
in cost of `10 lakh life
Year 5 Buyer loses `1.34 lakh, cover bought after the
8 lakh
but makes up the loss 7,20,250 policy is surrendered.
Surrender value: 50% If surrender value and future
of premiums paid premiums are invested in 6,52,806
an option that earns 7.5%,
Buyer loses `72,025, the buyer will have a corpus
5,76,200 90,75,15
Cost of life cover rises
sharply after 40, mak-
but gains `4 lakh equal to the maturity value
ing surrendering less
If surrender value and promised by the policy.
6 lakh
future premiums are
5,04,031 lucrative at that stage.
invested in an option that
earns 7.5%, the buyer 4,32,150
will have `4 lakh more We assumed risk-free
than the maturity value 3,71,246 option for reinvestment
promised by the policy. of surrender value and
4 lakh
future premiums.
2,54,450
Year 15
1,44,050 2,88,100 A market-linked option
Surrender value: 58.88% of premiums paid can give higher returns,
2 lakh but with no assurance.
Premium Buyer loses `1.78 lakh and more by
28,810
Surrender 1,53,644 surrendering
value If surrender value and future premiums are invested One big advantage that
0 in an option that earns 7.5%, the corpus will be `2 lakh insurance has over
0
72,025 less than the maturity value promised by the policy. other options is the tax
exemption on maturity.
Policy year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

In Noida, 28-year-old Jahnvi Sharma

(see picture) is ruing the day she signed up
junk your life insurance policy. Before you
buy insurance, ask yourself if you need
“A lot of policies “Closing a bad
for an insurance plan on the advice of her it at all. Sharma has no dependants and, are bought from insurance policy
father. “I had to invest in a tax-saving op- therefore, does not need life insurance at
tion and my father made me buy the insur- this stage of her life. She bought the plan friends or relatives is like getting
ance plan. The investment value has in-
creased in the past three years, but I could
only to save tax, even though there are bet-
ter and more flexible investment avenues
without adequate a painful tooth
have made more money in other avenues,” under Section 80C. ELSS funds are more research. It’s only a extracted. The
she says. Sharma has a 15-year Ulip for flexible and suit her more than a Ulip.
which she pays `32,000 every year. Insurance needs vary for individuals, few years later that earlier you get it
“Do not buy a policy that is not aligned
with your financial goals just because
but one should have a cover of at least 6-8
times one’s annual income. If your insur-
the buyers realise done, the sooner
someone is pushing a product,” advises
Mahavir Chopra, Founder of Beshak.org,
ance plans are not covering you for that
amount, you have the wrong insurance
those policies the pain ends
a portal that helps buyers zero in on the that needs to be closed. don’t match their and the recovery
right insurance policy. “If it is a tradi- Don’t be fooled by the returns projected
tional insurance policy that gives fixed re- by the insurance agent. Endowment poli- financial goals.” begins.”
turns, calculate the internal rate of return cies appear very attractive because of the
(see box on page 4) that you will get from enormous maturity corpus, but one must
the policy,” he says. factor inflation into the calculation. In 25 RAJ KHOSLA
MAHAVIR CHOPRA
years, even a low 5% inflation will reduce MANAGING
What is bad insurance? the purchasing power of `40 lakh to a mere
FOUNDER, BESHAK.
ORG
DIRECTOR,
MYMONEYMANTR A
The poor returns are not the only reason to `11 lakh.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP4 User: manish.kumar10 Time: 12-22-2023 19:52 Color:

cover story
04 The Economic Times Wealth December 25-31, 2023

For Sinha, the NPS is a much better his employer under Section 80CCD(2). ly to 35% after the third year (see graphic). traditional plans. In a discussion paper,
alternative. He should surrender the in- Surrender rules are different for Ulips. Irdai proposed that surrender charges
surance plan because it is obviously not Painful decision If a Ulip is surrendered before five years, should be imposed only up to a threshold
suited to his needs. If he reinvests the sur- Surrendering a policy is painful because the money goes into a discontinuance limit of the premium. For instance, if the
render value and future premiums in the of the very high surrender charges. If a fund, where it will earn a 4% return. It is policy has an annual premium of `1 lakh,
NPS, he will not only be able to build a big- policy is closed after the first year, the given to the policyholder after the end of and the threshold limit is 25%, then sur-
ger corpus, but the annuity plan will give buyer gets nothing back. In the second the five-year lock-in period. render charges will apply only to `25,000
him pension for life. What’s more, he can year, the surrender value is 30% of the Last week, the insurance regulator pro- (25%) of the premium.
save tax by investing in the NPS through premiums paid. This increases marginal- posed a cap on the surrender charges of This is only a proposal and insurance
companies are likely to oppose it tooth
and nail. With nearly 40% of the policies
closed down within the first five years,
Jahnvi Sharma the high surrender charges are a major
contributor to their bottom lines. The
28 years, Noida high charges also help in keeping their
flock together. Sinha, for instance, is in
When she landed her first job three years ago,
no mood to surrender the policy and lose
her father nudged her to buy a life insurance
policy. She now pays `32,000 annual premium `14 lakh.
for the 15-year Ulip. The policy also gives her a
life cover of `3.5 lakh. Sunken cost fallacy
It’s a text-book case of the sunk cost fal-
lacy, where the investor doesn’t want to
Why she should surrender...
end a losing investment even though he
Unlike Ulips of the past, her plan doesn’t have stands to lose more by continuing it. If the
very high charges. Though she can switch from
one fund to another, the Ulip doesn’t provide too insurance policy is giving suboptimal
much flexibility and she is stuck with the same returns, it is better to switch to a more lu-
fund manager for the rest of the tenure. She has crative option. “Closing a bad insurance
paid premiums for three years, so the policy can policy is like getting a painful tooth ex-
be surrendered if she wants.
tracted. The earlier you do it, the sooner
the pain ends and recovery begins,”
Why she should not... says Raj Khosla, Managing Director of
The surrender value will not be paid to her right MyMoneyMantra.
away. It will go into a discontinuance fund to If you have decided to surrender your
earn a nominal return of 4% and will be paid insurance policy, brace for the aftermath.
to her after a lock-in period of five years. She First, the agent will call you to dissuade
should, therefore, continue with the policy.
you from closing the policy. He will try
all sorts of tricks, including the fact that
any tax deduction claimed for the pre-
mium paid will be reversed if the policy is

Calculate returns from closed before three years.

Even if you are able to get past him,
the process is far from simple. Insurance

your insurance policy companies are very proactive when they

are selling you an insurance plan. The
entire process can be done online and
The IRR function in MS Excel is an easy tool to use. they will happily send a person to your
house to collect physical documents.
However, no insurance company offers
by Sameer Bhardwaj an online surrender option. You have to
go to a branch physically and complete

I
t is easy to calculate the returns the surrender formalities. You will need
from your mutual funds and stocks. to submit the insurance certificate in
Most fund houses mention annual- original, KYC documents and a cancelled
ised returns earned by investments in cheque.
your portfolio. There are also portfolio aged by using the inbuilt IRR func-
trackers that tell you how your invest- tion in MS Excel (see graphic). In the The paid-up option
ments have performed. However, calcu- example considered here, the annual If you don’t want to surrender the policy,
lating the return from your insurance premium of `25,000 is paid over 10 years you can go for the paid-up option. The
policy is not so easy. The insurance and the maturity amount is `3,50,000 insurance cover continues, but you stop
premiums are paid over several years in the 11th year. The IRR in this case is paying the premium. The insurance com-
and some policies even give out periodic 6.04%. The outflow (premiums) are in pany doesn’t return the money, but uses
payments. Therefore, a simple point-to- negative, and inflow (payments and ma- it to offer life cover. Every year, it deducts
point or CAGR calculation cannot be turity amount) are in positive. mortality charges from the corpus to
used here. Also, unlike mutual funds In case the payments are made at give life cover. This cover is proportion-
and fixed deposits, there are no calcula- different times of the year, the XIRR ate to the number of years for which the
tors for insurance policies, and the ones function can be used. This takes into policy was in force. For instance, if a
offered by insuretech portals are not account the exact date of inflows and policy offers a life cover of `10 lakh for 20
very useful. outflows, and accordingly calculates years and is turned into a paid-up plan
The only option for a buyer is to do the returns. after five years, the life cover will be
the calculation himself. The IRR (in- So, the next time somebody wants to reduced to about `5 lakh. On maturity of
ternal rate of return) calculation can sell you an insurance policy, calculate the plan, the diminished corpus and the
tell you the returns that a policy offers. the returns before signing on the dotted accumulated bonus will be given to the
The concept of IRR is very complex line. The 20-25 minutes you will spend policyholder.
and takes into account the inflow and The formula for IRR on the calculation might save you 20-25
outflow to arrive at the final figure.
However, this complexity can be man- = IRR (B2 : B12) years of getting locked into a subopti-
mal investment.
Please send your feedback to
[email protected]
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP5 User: manish.kumar10 Time: 12-22-2023 19:23 Color:

financial planning
The Economic Times Wealth December 25-31, 2023 05

The rising cost of celebrations

The desire and social pressure to spend lavishly, not just on weddings but on other occasions like birthdays as
well, is dramatically changing the personal finance goal-setting and funding, says Uma Shashikant.
incomes are low and unreliable, poor house-
holds have no wherewithal to feed the com-
munity on occasions that call for celebra-
tions. However, social pressures won’t let
them be; to not feed biryani after an elderly
parent has passed away will be seen as an
utterly desolate existence. To save face and
belong, the poor extend themselves.
The middle class story is only a shade
better. Attend a wedding with an eclectic
guest list and the contrast will hit you. The
wealthy will turn up somewhat under-
stated, with a few exceptions. The middle
class will turn up bedecked and bejewelled,
competing for attention to their clothes and
jewels, with a few exceptions too. The eager-
ness to state that we are in a higher league
than we actually are is a temptation that is
hard to resist.
There may not always be indebtedness,

GETTY IMAGES
but a large portion of wealth is earmarked
for weddings in families. Money is saved,
and invested, and spent. When it stretches
the finances of the family, there is resent-

T
ment. However, celebrations are now a large
here is something about Indian like the right thing to do. There isn’t an iota of and booming industry. Everyone wants to
weddings that invariably makes regret about the decision. We had saved and in- celebrate not just marriages, but birthdays,
them grander than originally vested, and did not drill a hole in our finances anniversaries, housewarming, graduation,
planned. There is, of course, the doing what we did. and so on. People are inventing new reasons
exception of a few people with the However, big, fat weddings do hurt personal to throw a bash and call people over.
steely resolve not to do so. Everyone seems to finances. That is the reality for many families. Gone are the days when attending these
have a good time, even while privately com- Such events, that publicly display the family’s events would be expenses that a family
plaining. ability to spend, create an immense social would carefully consider. People enjoy
Personal finance goals typically include pressure. Image crafting takes over, even as dressing up to celebrate. Amidst all protests
three big-ticket items: education, wedding comparisons with peer groups shape deci- about waste and opulence, every household
and retirement. My children were still in high sions. There is the overt need to fit into the has its list of events and parties it wants to
UMA SHASHIK ANT throw, and has plans for how it would be cu-
school during those early years of teaching class one identifies with, and if possible, be one
IS CHAIRPER SON,
and writing about financial planning. As I up on what is normally done. As it starts to un- rated and showcased.
CENTRE FOR INVES TMENT
EDUC ATION AND LE ARNING heard families setting aside money for wed- ravel, it becomes a personal finance disaster. Financial planning and goal setting are
dings, my rational mind scoffed at the idea. A villager recounted his experience on wed- now serious endeavours for many house-
Why fuss about it when the quality of married dings. It was customary in the village to offer holds. Long-term goal setting is where we
life had nothing to do with the grandeur of the small amounts as gifts at weddings. This gift began years ago. These goals needed money
event, I thought. Isn’t it so ostentatious and in- was announced to everyone and noted down that would not fit in the normal annual
dulgent, I rued. And yes, we won’t do this, I told in a book, by the giver and receiver. While I incomes. Celebration of events is now a
myself. Until our daughter got married. had noticed this practice with amusement, I short- and medium-term goal. Households
Celebration of events She married a dear friend’s son eight years had not understood it fully. This was how they are willing to allocate a part of their annual
is now a short- and ago. The families knew one another well and saved for the big event in the family, giving incomes not just to holidays and entertain-
medium-term goal. we began to plan a simple wedding lasting out small amounts whenever the occasion de- ment, but also to events that involve family
Households are half-a-day. Then things slowly got out of hand, manded. Then it would all come back as gifts and friends. Even if it means borrowing
willing to allocate a not because someone pressured us to do what when it was their turn, returned to the penny. money, there is confidence about incomes
we did, but because the event became one in This was better than borrowing. to repay the debt over time. It is this confi-
part of their annual
which we wanted to thank everyone who had This villager had filled a notebook with dence that drives the decision to dine at a
incomes not just
come into our lives. We made lists, went and names and amounts that would come back to fancy place for the weekend, invite a bunch
to holidays and
met college and school friends, searched for him on the occasion of his only daughter’s wed- of friends and family for birthdays, convert
entertainment, but
earlier neighbours, and were soon set on this ding. He decorated the house, bought sweets every celebration into an event, and con-
also to events that
emotional ride that reached out and included and clothes on credit, and the guests began to sider family weddings as the big spend that
involve family and one willingly indulges in. Personal finan-
family and friends in a celebration of our lives. arrive. Unfortunately for him, the bride eloped
friends. Even if it The wedding was only an excuse, and a very with her lover overnight. He was shattered as cial goals and their funding have changed
means borrowing valid one in our minds, for everyone to come his money wouldn’t come back now, and he had dramatically.
money, there is together and have a good time. You have to to borrow to pay the vendors. He sold a piece When we were at a grand wedding hosted
confidence about go through the emotion to know what it is, I of land to repay the debt. He never forgave his by a very wealthy friend, one guest quipped:
incomes to repay the started telling myself. daughter for the wedding that broke his back, “Why are we always lecturing the wealthy
debt over time. Am I justifying something that, by all even though it did not happen. I gained a new about how they must spend their money?”
rational counts, seems like a wasteful ex- perspective on weddings in villages after I This question is for another column.
penditure? Isn’t this money better utilised for heard this story.
other, more worthy causes? I don’t know the It has been known for a long time that two
Please send your feedback to
answers. I can confess that a wedding, which events break the finances of poor house-
[email protected]
included so many who touched our lives, felt holds—illnesses and ceremonies. When
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP6 User: manish.kumar10 Time: 12-22-2023 19:57 Color:

review preview
06 The Economic Times Wealth December 25-31, 2023

Did you opt for new Old regime versus

tax regime by mistake? new regime

DEDUCTION OR
EXEMPTION
OLD TAX
REGIME
NEW
TAX

A
REGIME

round this time of the year, com- Standard

panies often ask their employees deduction
to show proof of tax-saving
investments. If your company HRA
hasn’t asked you yet, you need
to check why. This year’s budget made the Home loan
new tax regime the default option for sala- interest
ried taxpayers. So, if you have not informed
your employer about your preference, Investments
you will now be taxed under the new tax u/ Sec 80C
regime.
Medical
The new tax regime has a higher thresh-
insurance
old for tax relief, wider tax slabs and lower
tax rates. Under the new tax regime, if the Education
taxable income does not exceed `7 lakh, loan interest
there will be no tax. If you add the `50,000
standard deduction that was reinstated LTA
this year, an individual with a taxable in-
come of up to `7.5 lakh will pay zero tax. NPS 80CCD(2)
However, you will not be eligible for
many of the deductions and exemptions NPS
available under the old tax regime. 80CCD(1b)
“Taxpayers need to evaluate whether they
GETTY IMAGES
should opt for the new regime or stay with
the old one,” says Sudhir Kaushik, CEO of
tax filing portal TaxSpanner.com. the financial year. A lot of taxpayers may he files his tax return,” says Kaushik. “If However, there are certain exemptions
If you did not inform your employer, they find themselves in this boat. However, any excess tax has been deducted because that cannot be claimed while filing the tax
would have already deducted tax according there is an escape hatch for those who got deductions were not considered under the return. You can’t claim exemption for leave
to the new regime. Once the tax regime has into the new regime by mistake. “A tax- new regime, the taxpayer can claim these travel allowance, although HRA exemption
been chosen, it cannot be changed during payer can still go with the old regime when in his ITR and get a refund,” he says. can be claimed.

product launches Now, tokenise debit, credit cards via Inter-

:: MUTUAL FUNDS net, mobile banking for online transactions
T
Mirae Asset Mutual Fund will launch the Mirae Asset Multi he RBI has issued rules on how generated tokens will be available on
Asset Allocation Fund, an open-ended fund that will invest individuals can tokenise their the merchant’s payment page in the
in a mix of stocks, bonds and gold and silver ETFs. It will be debit and credit cards via their cardholder account.
benchmarked to the S&P BSE 200 TRI (65%), NIFTY Short banks. The central bank issued the There is no time limit to tokenise
Duration Index (20%), Domestic Price of Gold (10%), and new rules via a circular issued on 20 the cards. A debit and/or credit card
Domestic Price of Silver (5%). The minimum investment is
December 2023. can be tokenised at any time as per
`5,000. The NFO is open from 10 to 24 January 2024.
In October 2023, the RBI had an- the individual’s convenience. This
nounced that tokenisation of debit means that tokens for debit and/or
Baroda BNP Paribas Mutual Fund will launch Baroda BNP
and/or credit cards could be done credit cards can be generated either
Paribas Nifty 50 Index Fund, an index fund that will invest
in stocks of the benchmark index in the same proportion
via banks as well as card issuing net- when a new card is received by an
as their weight in the Nifty. Its benchmark is the Nifty 50 works. This was done to enhance cus- individual or at a later date.
TRI. The minimum investment is `5,000. The NFO is open tomer convenience. So far, a custom- issued by the central bank, an in- The bank or card issuer is re-
from 8 to 22 January 2024. er has had two options to complete dividual can tokenise his debit and quired to provide the complete list of
online transactions done via debit credit cards through mobile banking merchants for whom it can provide
DSP Mutual Fund will launch the DSP Multicap Fund, an and/or credit cards. These include and Internet banking channels. tokenisation services. An individual
open-ended equity fund that will invest in stocks across entering the card details every time To generate the tokens for cards, an can then select the merchants with
market capitalisations. Its benchmark is the Nifty 500 an online transaction is done via explicit consent from the customer whom he wishes to maintain tokens.
Multicap 50:25:25 TRI. The minimum investment is `100. debit and/or credit card, and tokenis- must be taken. The tokenisation of The RBI rules further clarify that
The NFO will be open from 8 to 22 January 2024. ing the card details on the merchant’s cards must be done with the addition- the tokens for debit and/or credit
website without saving the actual al factor authentication (AFA), also cards can be issued either by a bank
card details on the merchant’s web- known as two-factor authentication, or a card network issuer (Visa,
:: BANKING site. This saved customers the task of stated the RBI. MasterCard, etc.), or both.
Bank of Baroda has launched the Bank of Baroda BRO entering card details every time an The tokenisation can be done for With the new rules, an individual
Savings Account, a zero balance savings account for online transaction was done. the merchants selected by an individ- can tokenise his debit and credit
students aged 16 to 25 years. It is easy to operate and The new rules offer a third method ual. An individual can select multiple cards for all the selected merchants
offers a lifetime free debit card. Cardholders also get up to tokenise debit and credit cards. merchants and the two-factor authen- available on the bank’s mobile or
to 15 basis points interest rate concession on education tication can be combined for all the Internet banking.
loans and complete waiver of processing fee. How to tokenise chosen merchants. —Preeti Motiani
As per the latest tokenisation rules Once the card is tokenised, the
NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP7 User: manish.kumar10 Time: 12-22-2023 19:31 Color:

guest column
The Economic Times Wealth December 25-31, 2023 07

Different types of savers

Finding the middle ground between cautious saving and extremely risky
derivative trading is the best option for most savers, says Dhirendra Kumar.

W
hich type of saver are you? Do
you prefer to save in a safe and
systematic manner, or do you
do so erratically, preferring
a heavy dose of risk? Let’s
enumerate the main types of savers with vari-
ations in style and personality.
There are some savers who just keep their
money in the bank, along with savings in the
EPS, NPS, or EPF, in various permutations.
DHIRENDR A KUMAR Throw in some fixed deposits and insurance
CEO, VALUE RESE ARCH products, generally ill-chosen, to this product
mix, and their savings menu is complete. The

money
drawback of this mode of saving is that the
returns are poor, and a great deal of money is

mysteries left to idle. The good part is that not only is the
money being saved, but it starts early, contin-
ues throughout the saver’s earning life, and
it does not suffer any shocks. The benefits of savers will get by. The second type does better In a way, those who suffer a big disaster
starting early and long decades of compound- than the first, but neither destroys wealth. in the beginning are lucky. The ones who
ing mitigate, to an extent, the ill effects of There is, however, the third type of saver, who are the worst off are the maximisers who
investments that can underperform. I call the ‘chronic maximiser’. They are tor- win a few, then lose a few more, bleeding
Those who suffer a The next type of saver is the one who wants mented by the fear that they might not make cash over time, and eventually suffering
big disaster in the to save more and invests it to get higher money as fast as possible, and constantly a slow and deep disaster. This obsessive
beginning are lucky. The returns. Such people feel that they are finan- chase the next hot investment idea in the hope pursuit of exponential returns through
ones who are the worst cially literate and can take decisions that are, of getting supersized returns. derivatives ends in financial ruin. For
essentially, calculated risks. They go beyond While they dabble in instruments like cryp- chronic maximisers, F&O is almost al-
off are the maximisers
deposits and explore mutual funds. In theory, tos from time to time, their weapon of choice ways a path to financial destruction.
who win a few, then lose
the higher potential returns come with high- for self-destruction is the equity deriva- It has always been obvious that there is
a few more, bleeding er risk. Typically, such investors make some tives market, with a deadly mix of futures, a personality issue in case of chronic max-
cash over time, and good decisions and some bad ones. However, options, leverage, and more. Without even imisers. Even so, one wishes there was a
eventually suffering a if they stick to some basics, it is bound to work understanding the trade-offs, chronic max- clear path for the ultra-cautious savers,
slow and deep disaster. out well. They should conduct research to imisers take on extreme levels of risk with as well as the maximisers, to end up in the
This obsessive pursuit choose reasonably good funds to invest in. derivatives, far more than their finances can middle category. Ultimately, striking the
They must invest gradually through a SIP, withstand. Decisions are made hastily, based right balance is key to long-term investing
of exponential returns
and should not stop investing in the face of on rumours or fear of missing the next market success. Equities have a place in long-
through derivatives
volatility. As long as they stick to these basics, swing. Intoxicated by leverage, they act ag- term portfolios, but chronic speculators
ends in financial ruin. and let a few years pass, they will do fine. In gressively to amplify their derivative bets, often come to ruin through dangerous de-
hindsight, they may not invest in the best and end up compromising their financial sta- rivative practices. Finding, and sticking
possible funds or earn the highest possible bility. Generally, through chance alone, a few to, the middle ground is key for all of us.
returns, but their savings will be much better good trades spur them to take bigger risks,
than deposits, especially if one takes taxation only to be wiped out when their luck turns. No
into account. high can hide the realities of this kind of trad- Please send your feedback to
One way or the other, these two types of ing forever. [email protected]

How to avail of GST Amnesty scheme

The Central Board of Indirect Who can file appeal? or before 31 March 2023. Hence, needs to understand whether
Taxes and Customs (CBIC) has A notification dated 2 amnesty benefits can be availed the tax notice is fully or par-
announced a special amnesty November 2023 stated that only of even for a GST demand order tially incorrect. If the taxpayer
scheme for taxpayers facing select taxpayers can make use for financial year 2018-19. fully disagrees with the GST
issues with Goods and Services of the scheme. These include demand notice, then 12.5% of
tax (GST). Under the GST those who could not file an ap- Filing the appeal the disputed amount must be
Amnesty Scheme, specified peal against the GST demand The appeal must be filed using deposited with the GST depart-
taxpayers who disagree with a order passed by the GST proper GST Form APL-01. “The said ment. This amount cannot ex-
GST tax demand order, can file officer on or before 31 March person shall file an appeal ceed `25 crore. Out of the 12.5%
an appeal till 31 January 2024. 2023, and if the earlier appeal against the said order in FORM to be deposited, a minimum
“The Special Amnesty Scheme against the GST demand or- GST APL-01 in accordance with of 20% must be paid through
was announced for condoning der was rejected solely on the sub-Section (1) of Section 107 an ‘Electronic Cash Ledger’.
delay in filing the GST appeal. grounds that it was filed after of the said Act, on or before the The balance of 80% can be
The amnesty scheme is avail- the deadline. 31st day of January 2024,” stat- paid through the The balance
able till 31 January 2024,” stated The benefit of the amnesty ed the CBIC in the notification. 80% can be paid through the
the Ministry of Finance on so- scheme can be availed of for any Once the taxpayer receives Electronic Credit Ledger.
cial media on 17 December 2023. GST demand order issued on the GST demand notice, he —Neelanjit Das
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP8 User: manish.kumar10 Time: 12-22-2023 19:32 Color:

QA
your queries

&
08 The Economic Times Wealth December 25-31, 2023

I am a 28-year-old employee and my I am 26 years old and invest `1,000 monthly in

monthly income is `44,000. I invest the following mutual fund schemes: Quant Mid
`2,000 per month in mutual funds, Cap Fund, Quant Tax Plan ELSS, SBI Long Term
`5,000 in the PPF and `4,000 in a recur- Equity Fund ELSS, Mirae Asset Tax Saver Fund
ring deposit. About 10% of my salary ELSS, UTI Nifty 50 Index Fund, HDFC Index S&P
gets deducted for the NPS, and I also BSE Sensex Fund, HDFC Small Cap Fund and ICICI
put in `50,000 per year in life insur- Prudential Corporate Bond Fund (Debt). Should I
ance. I want to invest more in mutual alter these for maximum wealth creation?
funds. How should I proceed?

Our panel of experts will answer Your mutual fund portfolio is spread across eight
It’s a good idea to increase your invest- schemes, with a total allocation of `8,000. Too
ments. You have not provided any de- questions related to any aspect of many schemes, especially from the same category,
tails of the mutual funds or schemes for personal finance. If you have a will result in duplication and make portfolio man-
your `2,000 monthly SIP. You have also agement difficult over time. Restrict the equity
not mentioned how much more you want query, mail it to us right away. portion of the portfolio to one tax-saver fund (if
to invest in mutual funds. Since your needed), one mid-cap fund, one large-cap index
debt allocation primarily comprises the
PPF, NPS and a recurring deposit in your
QUESTION OF THE WEEK fund, and one small-cap fund in the initial phase.
Both, Nifty 50 and S&P BSE Sensex, offer expo-
portfolio, and age is on your side, mutual sure to the top companies. Hence, one is enough as
funds should be used to increase the eq- a large-cap scheme. Likewise, among tax-saver
uity exposure, with a long investment I am 23 years old. What should be the ideal schemes, `3,000 can be directed to one scheme.
horizon. percentage of equity, debt and gold in my You can alternatively use the EPF/PPF for creating
Till the time your monthly investment the fixed income part of your portfolio, while using
in mutual funds is below `10,000, you
portfolio? How should I increase or
it for tax deduction. While the EPF/PPF will com-
can invest in just one fund, and can opt decrease this share as I grow older? plement your long-term equity portfolio, a debt
for a good flexi-cap fund. If you wish to fund will help build a corpus for near-term goals,
diversify more and have at least two such as travel, big purchases, etc. In addition, cre-
funds, then you can have one scheme The ‘rule of 100’ is one of the most recommended age- ate a contingency fund equivalent to 12 times your
from the large-cap/flexi-cap category based asset allocation strategies. An investor’s age is monthly expenses and commitments (EMI, SIPs,
and one from mid-cap funds. As your in- subtracted from 100 to determine the equity expo- premiums). This can be parked in a liquid fund or
come increases, try to raise your month- sure in his portfolio, with the rest invested in fixed in- sweep-in fixed deposit for emergencies.
ly investments every year. If you get any come and other asset classes. However, asset alloca- Build a mutual fund portfolio with a mix of ac-
annual bonus or incentives, you can tion should also factor in your risk appetite, time hori- tive and passive schemes. Don’t chase the best
channel a part of these as well towards zon of goals, liquidity needs, and investible surplus. performing schemes. Hold the schemes during
your savings, provided you don’t need it For financial security, create an emergency fund to downturns and exit only if there is consistent un-
for other expenses or family require- cover your unavoidable expenses for at least 6-12 derperformance for 6-8 quarters, compared to
ments. The sum of `50,000 you pay an- months. You can park this money in liquid funds, short peers and benchmarks. Also en-
nually for life insurance seems to be for a duration debt funds, or a sweep-in fixed deposit. Pur- sure adequate life and health
traditional endowment plan. If this is the chase adequate health insurance of at least `30 lakh, insurance for yourself.
case, purchase a pure protection term in- and if you have dependants, buy term insurance that
surance as well, which will is 10-15 times your annual income.
not cost a lot given your While you have not shared any details about your Prableen Bajpai
age. investible surplus, financial goals or risk appetite, I Founder, FinFix
Research and Analytics
am assuming you have a high risk appetite, given your
age. However, equity can be very volatile in the short
Dev Ashish term. Hence, any contribution towards financial goals
Founder, StableInvestor, and maturing within three years should be parked in debt
Sebi-registered investment adviser
I had inherited a residential property at Anand,
funds or fixed deposits offering 8% and above. The Gujarat, from my uncle in 2015, through a will. I
rest of your monthly investible surplus can be spread got a probate of the will in 2017 to get the prop-
between equity mutual funds, fixed income instru- erty transferred in my name. The property was
ments and gold instruments in the ratio of 80:15:5. built in 1992, with a land sale deed of `65,000.
For your fixed income portfolio, you can consider In November 2023, I sold it for `73 lakh. What
My present CTC is `9.15 lakh and I draw a investing up to `1.5 lakh a year in the PPF and the rest will be my tax implication? How can I save tax?
yearly bonus of about `1.85 lakh. I have in high-yield bank fixed deposits. For your equity I do not plan to buy a new property.
opted for the new tax regime. Please let portfolio, distribute the monthy equity contribution
me know if investment in the NPS can help equally among flexi-cap, large-cap index and aggres- The cost inflation index has been moved to the
cut taxes. If yes, then how much should be sive hybrid fund categories, through SIPs. Invest in year 2001 by the Income-tax department. To
the amount and how can I go for it? the sovereign gold bonds (SGB) through secondary calculate the capital gains on this property,
markets for exposure to gold. Apart from capital you need to get its fair market value as on 1
appreciation, SGBs offer an interest income of 2.5% April 2001 with the help of a registered valuer.
As per the provisions of Section 115BAC annually on the nominal value of investment. SGBs After getting this value, you need to apply the
of the Income-tax Act, 1961 (new re- held in a demat account can be redeemed in the sec- cost inflation index and subtract it from the
gime), a taxpayer is allowed to avail of ondary market before their maturity and without any sale proceeds of `73 lakh. The resultant value,
the deduction for employer’s contribu- lock-in period. if positive, will be your capital gain, which will
tion in the NPS. As per Section 80CCD of Make sure that you review your portfolio at least be liable to tax at 20%, exclusive of cess and
the Income-tax Act, 1961, the deduction once a year, especially during steep market correc- surcharge. If you do not wish to invest in a new
should not exceed the threshold limit of tions, and rebalance your portfolio to restore the set property, you can invest up to `50 lakh in gov-
10% of contribution made by the employ- asset allocation ratio. Continue with this ernment bonds within six months of the sale,
er from the salary of taxpayer. Since you asset allocation till your retirement to be able to get the capital gain tax
have opted for the new tax regime, 10% and then increase the fixed income exemption on this sale.
deduction from your employer’s portion of your portfolio, if re-
contribution to the NPS can quired, after factoring in your
be availed of by you. post-retirement income, accruals Shubham Agrawal
and monthly expenses. Senior Taxation Adviser, TaxFile.in

Naveen Kukreja
Amit Maheshwari Co-founder and CEO, Paisabazaar.com Have a question for the experts?
Partner, AKM Global [email protected]
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP9 User: manish.kumar10 Time: 12-22-2023 19:34 Color:

financial planning
The Economic Times Wealth December 25-31, 2023 09

PAPER WORK
:: Health insurance of seniors
As individuals age, the need for compre-
hensive health coverage becomes criti-
cal. It serves as a financial safeguard,
providing access to quality healthcare
without imposing a financial burden
on the family. Here are some points to
consider before buying a plan.

Check available
product options
One should research all the
available health insurance policies for
senior citizens and evaluate them after
considering factors such as coverage
limits, waiting periods, and exclusions,

GETTY IMAGES
to make an informed decision.

Pre-existing conditions
Given that many senior citi-

How to streamline your

zens may have pre-existing
medical conditions, it’s crucial
to select a health insurance policy that
either covers these conditions or has a

credit card usage

shorter waiting period for them.

Network hospitals
It makes sense to opt for

A
policies with an extensive
Ashmit has been a regular saver and shmit has crossed the first monthly installments, at a lower in- network of hospitals. This ensures
hurdle in dealing with a debt terest. Second, he can take a personal that the senior citizen can access qual-
holds some bank deposits and mu- trap by recognising that he loan from his bank at a low cost and ity healthcare services without hassle.
tual funds. After he and his wife had needs to do something about repay the credit card outstanding
a baby, they have been dealing with his credit card dues. Several spenders dues in full. He can choose a tenure
are unaware of the interest burden of his choice. This option is feasible if
Co-payment and sub-
a flood of unexpected expenditures. and end up repaying a large sum over his card is with one ban and accounts limits
They have had no choice but to use a long period of time. In some cases, are with another. It serves the same The policies for senior citi-
it also reflects reckless spending or purpose of reducing the interest bur- zens may have co-payment clauses,
their credit cards to meet these ex- requiring the insured individual to
over-spending. Credit card dues that den. Third, he can take a loan against
penses. They hope to pay off the dues bear a percentage of the medical ex-
remain unpaid are the costliest loans his deposits or investments from his
penses. Additionally, the policies may
in small instalments over the next an individual can take from the bank. bank and repay the credit card dues.
have sub-limits on specific treatments.
Ashmit has three choices. First, A loan against an asset comes at a
6-8 months, but are worried about he can request his credit card issu- much lower cost, and can also be re-
Understanding and evaluating these
aspects is crucial.
their ongoing spending and are not ing bank to convert the dues into a paid in installments without selling
sure if they will be able to use the personal loan. He will have to speak the asset.
to the bank, find out about the terms Ashmit should always consider his
Renewability features
credit cards sparingly till the dues for such a conversion, and complete loan options in their entirety. It will The policies with lifelong re-
are cleared. Ashmit does not want the procedures, if the bank is will- not make sense to have a deposit that newability features are ideal
ing to enable such a conversion. The gives a 9% return and keep a loan for senior citizens. This ensures that
to liquidate his investments to meet they continue to be covered without
EMIs will help divide his outgo into that costs 36%. Ashmit should seek to
the credit card dues. What should smaller, affordable portions, and avoid high-cost loans, or in this case, facing age-related restrictions on policy
renewal.
he do to about the mounting interest also reduce the risk of default. He can use lower-cost loans to pay off the
then repay the personal loan in easy high-cost credit card debt.
costs on his card spends?
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.

smart things to know

Purchasing Managers’ Index (PMI)

1
PMI is
a lead
economic
2 3 4 5
It is computed
on the basis
This index helps
in determining
The PMI
above 50
indicates an
The PMI gives
an idea about
indicator of survey of whether the expansion the direction
computed employment, market condi- compared to of economy. It
on the new orders, tions, as seen by the previ- helps decide
basis of production, purchasing man- ous month; on production
data from inventory agers, is expand- below 50 PMI needs based
different levels and ing, contracting indicates con- on new orders
compa- supplier or staying the traction; and in the coming
nies. deliveries. same. stable at 50. months.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP10 User: manish.kumar10 Time: 12-22-2023 19:35 Color:

stocks
10 The Economic Times Wealth December 25-31, 2023

Consider stocks with

strong margin profiles
The companies that maintain firm margins have the potential to generate above-average returns.
by Sameer Bhardwaj

T
he strong performance
of corporate India in the
September 2023 quarter
was supported by margin
tailwinds. The aggregate
EBITDA and PAT of Nifty 500 stocks
grew 29% and 40%, respectively, on a
year-on-year (y-o-y) basis. However,
the aggregate sales grew margin-
ally by 0.5% y-o-y. The moderation in
input costs helped EBITDA margins,
which recovered from 11.9% in the
September 2022 quarter to 16.8% in
the September 2023 quarter, implying
a 480 basis point y-o-y improvement
(data compiled from a Motilal Oswal
report).
However, analysts believe that such
margin tailwinds could moderate in
the future as prices of certain com-
modities have started rising. The
GETTY IMAGES

data compiled from Reuters-Refinitiv

shows that the prices of aluminium,
tin, naphtha and copper have risen be-
tween 1.5% and 6.4% since the second
week of November 2023. The data is Lilladher report in November. The current high margins are unsustain- in margins in the December quarter on a
based on international prices of com- Though the long-term prospects of the able as sales growth is weak and the diver- y-o-y basis. The EBITDA margin estimates
modities as on 15 December 2023. domestic market remain buoyant, higher gence will eventually reconcile. One-third of for Nifty 500 stocks for the December quar-
The impact of El Nino is also visible agri prices (impact FMCG sector margins), 21 sectors of the Nifty 500 reported revenue ter are derived from estimated revenue and
in some agricultural commodities. elevated inflation and interest rates could growth of less than 5% on a y-o-y basis in the EBITDA provided by Reuters-Refinitiv and
“Global commodities remain volatile dent margins in the near term. A Nuvama September quarter, with insurance, chemi- by a minimum of two analysts.
across both agri- and crude-linked report in November stated that earnings mo- cals, oil & gas retail sectors reporting a con- There are 60 such companies. In the past
segments. Sugar prices have been up mentum is expected to slow down sharply in traction in y-o-y revenue growth. year, the average return of this group has
17.4% since April and wheat prices the second half of 2023-24, with SMID (small- As margin benefits are peaking, we been 42.3%, compared with 21.7% by the
have been up 23% since harvest sea- and mid-cap) earnings more prone to a slow- have identified stocks that are expected to Nifty 500 index. Also, 63% of these firms
son despite the open market auctioned down. “The current profit momentum is report EBITDA margin improvement in have outperformed the Nifty 500 returns in
sale by the government. The skimmed propped up by a weak base, low input prices the December 2023 quarter. The aim is to the past year (data based on 19 December
milk prices are firming up, while and benign BFSI credit costs. These tail- identify stocks that have improved y-o-y 2023 values). The following five companies
spices have seen a sharp jump in the winds are fading, while demand headwinds EBITDA margins in the September quarter are currently offering a double-digit share
past few months,” stated a Prabhudas still loom,” added the Nuvama report. and are expected to report an improvement price potential.

EMAMI
12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS
forward PE price (`) price (`) POTENTIAL BUY HOLD SELL

25.0 498 572 15.0% 19 5 2

Nifty 500
THE FMCG COMPANY’S revenue and near future. basis point operating margin expan- 122.59
EBITDA were 1.3% and 6.6% higher, The domestic business grew 4% sion in 2023-24. 100
respectively, than the consensus y-o-y and was supported by urban It has taken several initiatives
estimates of analysts compiled channels like e-commerce that like distribution expansion, new
by Reuters-Refinitiv in the Sep- witnessed strong growth during the product launches, continued brand
tember 2023 quarter. Though the quarter. On the other hand, inter- investments and improved perfor-
rural demand continued to remain national business grew 16% y-o-y mance in new channels to drive
subdued, the winter portfolio is in constant currency terms, led by growth. It is also strengthening Emami
seeing good traction. Besides, hopes Nepal, Sri Lanka and the GCC region. its healthcare portfolio with the 114.46
of increased government spending The EBITDA margins jumped acquisition of Axiom Ayurveda,
during the election season, rising by 300 basis points y-o-y to 27%, which operates in the fruit-based
rural income and likelihood of bet- helped by the easing of input costs nectar category. The recent buyback
ter agricultural yields are expected and moderation in inflation rate. is also a key positive as it indicates
to boost the rural demand in the The management has guided a 200 improving capital allocation. 16 Dec 2022 19 Dec 2023
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP11 User: manish.kumar10 Time: 12-22-2023 19:36 Color:

stocks
The Economic Times Wealth December 25-31, 2023 11

RESTAURANT BRANDS ASIA

12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS Nifty 500
forward EV/ EBITDA price (`) price (`) POTENTIAL BUY HOLD SELL 122.59
21.9 113 128 14.0% 6 2 2

THE QSR PLAYER reported a 19% jump in revenue ond half of 2023-24. The contribution of new stores 100
and 2.2 times jump in EBITDA on a y-o-y basis in in the future will support margin growth. The man-
the September 2023 quarter. The revenue surpassed agement has guided 67% gross margin expansion in
Reuters-Refinitiv estimates by 26.5%, led by strong 2023-24. The Indonesia business is also expected to
performance of the India business. However, the do better with Popeyes seeing a good response. The
Indonesia business growth was modest due to the store count is expected to reach 25 by the end of the Restaurant Brands Asia
closure of underperforming stores. The EBITDA December quarter. A Motilal Oswal report, which was 96.90
margins expanded by 400 basis points, supported by released after the September quarter results, states
cost control and higher operating leverage. that the company is well placed to report strong
The India business is growing due to rising dine-in growth in the domestic segment due to an aggres-
traffic, benefits from the value meal strategy, and sive store addition outlook, gross margin improve-
store expansion. The company added eight stores in ment, dine-in recovery, scale benefits and improved
the quarter and plans further expansion in the sec- store economics. 12 Dec 2022 19 Dec 2023

MARUTI SUZUKI DABUR INDIA

12-month Current 1-year target UPSIDE 12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS
POTENTIAL POTENTIAL
forward PE price (`) price (`) forward PE price (`) price (`) BUY HOLD SELL
23.4 10,239 11,527 12.6% 44.6 548 605 10.4% 25 12 2

ANALYSTS’ RECOMMENDATIONS Nifty 500

THE FMCG COMPANY reported a 7.3% y-o-y growth in
BUY HOLD SELL consolidated revenues in the September 2023 quarter. 122.59
100
29 6 3 The EBITDA margins expanded 50 basis points y-o-y,
helped by lower raw material inflation, better mix, and
THE AUTOMOBILE MANU- launches. The export vol- rebalancing of promotion spends. The company’s India Dabur India
FACTURER’S EBITDA grew umes grew 9.7% on a y-o-y and international business segments grew 3% and 10%, 94.53
73% y-o-y and surpassed basis and the management respectively.
Reuters-Refinitiv estimates aims to triple its exports by While the domestic revenue growth was led by
by 20.6% in the September 2030-31. healthcare and home and personal care segments, the
2023 quarter. The gross A recent report from international business was driven by strong growth in
margins and EBITDA margins Centrum Broking is bull- Turkey, Egypt, the MENA (Middle East & North Africa)
expanded by 250 and 360 ish on the company. It lists region and Nepal. The management expects double-digit
basis points, respectively, factors such as aggressive growth to continue in international business, led by
supported by raw mate- launches of SUVs, growth distribution changes and moderation in inflation rate.
rial cost savings, healthy potential from hybrid/CNG, The volumes are expected to improve over the next
12 Dec 2022 19 Dec 2023
mix and operating leverage waning supply chain issues, few quarters, led by a likely revival in rural demand
benefits. moderating key commodity amid higher government spending, increased promo- An Emkay report released after the second quarter
The central India is seeing prices, SMG consolidation tional activities and a favourable base. Further, the Bad- results remains constructive on Dabur due to its fo-
a demand traction, whereas with its own manufacturing, shah acquisition is expected to contribute to revenues cused strategy to drive share and penetration, portfo-
demand stability is visible and upcoming hybrid EV in the near future. The margins are expected to remain lio transformation for aligning with evolving trends,
in the southern region. How- launch in 2024-25, as the firm in the future supported by cost efficiencies and category extensions, strengthening of the distribution
ever, the eastern region is key growth drivers. continued premiumisation across categories. moat, and its ability to fund inorganic opportunities.
witnessing a muted demand. The report also sees multi-
On the other hand, weakness
in the lower-end segment
ple margin tailwinds—strong
operating leverage led by
ERIS LIFESCIENCES
continues due to afford- fixed cost absorption, richer 12-month Current 1-year target UPSIDE ANALYSTS’ RECOMMENDATIONS
POTENTIAL
ability issues, whereas the product mix, rising average forward PE price (`) price (`) BUY HOLD SELL
SUV segment is performing
well. The company reported
selling price and favourable
forex movement—that will 25.9 890 979 10.0% 9 1 0
a 23% market share in the drive the company’s profit- THE PHARMACEUTICAL COMPANY reported revenue Eris Lifesciences
SUV segment, led by new ability in the future.
Nifty 500
and EBITDA growth of 10% and 21%, respectively, on 133.21
a y-o-y basis in the September 2023 quarter, whereas
122.59 the operating profit margin jumped 300 basis points
100
y-o-y to 35.8%.
The management continues to focus on portfolio di-
100
versification, and brand acquisitions from Dr Reddy’s,
Glenmark and Biocon have strengthened its posi- Nifty 500
tion. These acquisitions have reduced dependence on 122.59
Maruti slower growth products.
Suzuki India The revenue is expected to scale up in the future, led
120.65 by opportunities in the cardiometabolic market, with
patent expirations and benefits of operating leverage.
The company also kickstarted injectable anti-diabetic
business in Eris MJ, which is expected to break even 12 Dec 2022 19 Dec 2023
in the fourth quarter. It has also curated its R&D to de-
generation and exclusive focus on the India market
velop and commercialise first-in-market combinations.
would ensure that the company can add value without
A recent Ambit Capital report is bullish and states
putting undue pressure on its balance sheet and return
that the diversification initiatives will increase
on capital metrics,” adds the report.
medium-term organic growth in branded formulations
12 Dec 2022 19 Dec 2023 to 15-17%, against 8-10% in recent years. “High cash Price as on 19 Dec 2023. Nifty 50 12-M forward PE: 19.7. Source: Refinitiv
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP12 User: manish.kumar10 Time: 12-22-2023 19:38 Color:

learn & keep

12 The Economic Times Wealth December 25-31, 2023

Reliance, Adani among top wealth creators

Several businesses have created big value for investors amid fluctuating economic environment. ET Wealth explores the finer details of Motilal Oswal's 28th Annual Wealth Creation study.
Wealth creation at a slower pace in the past 5 years RIL rules the wealth creation charts again Reliance carries forward past dominance 13.02
The growth of 21% CAGR is lower than for the previous two blocks of five years, but well above the BSE Sensex CAGR of 12%. TCS and Infosys continuously remain among the top five wealth creators. This takes RIL’s overall No. 1 tally to 10 in the last 17 five-year study periods. 9.66 9.6
Wealth created (` lakh crore) Wealth created CAGR (%)
33 92.2 Company Price CAGR Wealth created (` lakh crore) Wealth created (` lakh crore)
Reliance Industries 22% 9.6
26 28 5.64
25 24 70.5 TCS 18% 6.8 4.4
22 23 3.08 3.64 3.46 3.25
22 2.56 2.64 2.5
19 18 21 ICICI Bank 26% 4.2 1.86 1.51 1.74 1.19 2.28
17 17 49
44.9 Infosys 20% 3.6
38.9 12 70.8 Biggest wealth creator
34.2
29.4 28.4 Bharti Airtel 16% 2.8 RIL RIL RIL RIL RIL ITC TCS TCS TCS TCS TCS HDFC RIL RIL RIL RIL RIL
26.5 Bank
22.1 5-year period ending
16.2 18.4 26.1 Hindustan Unilever 14% 2.7 2011 2013 2014 2015 2016 2017 2018 2019 2020
2007 2008 2009 2010 2012 2021 2022 2023
SBI 16% 2.4
2005-10 2006-11 2007-12 2008-13 2009-14 2010-15 2011-16 2012-17 2013-18 2014-19 2015-20 2016-21 2017-22 2018-23 Bajaj Finance 26% 2.3 Adani Enterprises best all-round wealth creator
Note: Wealth creation only by top 100 wealth creators. Companies are ranked in descending order of absolute wealth created, subject to the Adani Enterprises 78% 1.7 Two other Adani group companies, Adani Power & Adani Energy, are also in the top 10 all-round wealth creators.
company’s stock price outperforming the benchmark index (BSE Sensex).
Source: Motilal Oswal 28th Annual Wealth Creation study
HCL Tech 18% 1.6 COMPANY BIGGEST FASTEST CONSISTENT TOTAL OF ALL RANKS

Note: HDFC Bank does not feature in the top 10 list of wealth creators for the first time in several years. Adani Enterprises 9 2 5 16
Low-profile Lloyds Metals the fastest wealth creator Varun Beverages 21 7 2 30
`10 lakh invested in 2018 in these companies would be worth `1 crore in 2023. Adani Power 23 5 8 36
Price CAGR (%)
Tube Investments 30 3 6 39 7 out of top
79 78 63 56 52 50 50 49 46 45 10 all-round
ICICI Bank 3 37 4 44 wealth
19 creators are
18 Price appreciation (times) SRF 25 11 10 46 also among
the top 10
Linde India 49 4 7 60 consistent
wealth

11
Adani Energy 19 15 32 66 creators. Thus,
consistency is
9
8 8 8 LTIMindtree 24 30 18 72 the clincher
7 7 for all-round
6 Reliance Inds 1 50 21 72 wealth
creation.

Tube
Tech biggest wealth creator second time in a row
Lloyds Adani Investments Varun Deepak Persistent JB Chemicals Technology has also increased its share of wealth creation to 20%, compared with 9% five years ago.
Metals Enterprises of India Linde India Adani Power Capri Global Beverages Nitrite Systems and Pharma
Six of the top 10 fastest wealth creators had market caps of less than `5,000 crore in 2018. 5-year pe- Wealth created
Sector
This confirms that for high wealth creation, picking small-to-medium companies with robust earnings boosts growth prospects. riod ending (` lakh crore)

2014 Technology 7.1

Capri Global is the most consistent wealth creator HDFC Bank, ITC among
It has outperformed the BSE Sensex in all of the past five years.
2015 Consumer/Retail 7.59 big names to lag
Price CAGR (%) 2016 Consumer/Retail 6.36 behind the market
Capri Global 50 2017 Financials 9.35 35 companies failed to make the
Varun Beverages 50 cut as their stock appreciation was
lower than the Sensex.
2018 Financials 11.9
Grindwell Norton 30
WEALTH PRICE
ICICI Bank 26 2019 Financials 15.9 COMPANY CREATED CAGR
Only 4 out of 100 (` lakh crore) (%)
Adani Enterprises 78 have outperformed
2020 Consumer/Retail 8.18
in each of the five HDFC Bank 3.7 11
Tube Investments 63 years. Clearly,
consistency, not just
the pace of wealth
2021 Financials 17.36 ITC 1.6 8
Linde India 56 creation, matters.
HDFC 1.5 8
Investors’ nirvana 2022 Technology 25.15
Adani Power 52 is in identifying the
stocks that not only Kotak Mahindra Bank 1.4 11
JB Chemicals 45 outperform from 2023 Technology 14.16
point to point, but in L&T 1.2 11
SRF 44 the interim as well. The biggest losers are rate sensitive Financials and Auto.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP14 User: manish.kumar10 Time: 12-22-2023 19:20 Color:

career
14 The Economic Times Wealth December 25-31, 2023

SKILLS
YOU NEED
KNOW YOUR TECH
1 Being tech-savvy is no
longer a good-to-have ability. It is
an essential skill at the workplace
and a hygiene factor for selection.
Master the technology platforms
being used in your office. Be
comfortable with spreadsheets
and presentations. While learning
a new technology, follow a
three-step process of mastery—
accuracy, speed, power.

Career trends
ART OF NARRATIVE
2 In a world of data and
excessive information, your
team and manager do not have

for 2024
the time to decode your work.
Can you make sense of it all and

GETTYIMAGES
explain it to everyone? What is
the story behind the numbers?
What does it mean for us? Learn
the art of narrative from master
story tellers at work and improve
New skills will matter more than your certificates, says Devashish Chakravarty. relentlessly.

2
RE-LEARNING
024 is almost here, minus the
cheer. The past year hasn’t been
2027. Half of these jobs will be lost due to re-
placement by new and frontier technology.
sustainability in existing manufactur-
ing and service delivery processes. New 3 Skill beats experience
great for professionals, with lay- The other half will be new jobs created due regulatory requirements and application beats education. In a rapidly
offs dominating the news across to the impact of technology on businesses, of ESG standards means companies will shifting job market, experience
sectors, companies and countries. need for technology domain specialists, continue to invest in these areas to create matters more than certificates.
These challenges will continue in the new and the rise of tech-induced service layer. new teams, roles and processes. Though For new roles or tech, where
year. With sustained talk of an impending The report highlights that 44% of core some jobs will be made redundant, the new experience is not available, new
recession, bigger companies are chasing skills will be disrupted and 60% of all pro- roles will drive job growth in many manu- skills will rule the roost. You will
efficiency over growth and, hence, cutting fessionals will require re-training in the facturing and non-service sectors, and a soon be left behind by the new
costs. Startups are concerned about sur- same time frame. What this means is that few services too. What it means for you is hires if you are not constantly
viving a ‘funding winter’. These economic both generative AI and new technologies that while the impact of new technology learning and re-learning on the
cycles are temporary and the direction are changing expectations from your cur- and digitisation is more obvious, the sus- job and outside it.
will reverse in due course. However, the rent role. You will need to upgrade or add tainability trend is equally powerful and
THE TEAM DREAM
changes in technology and society are ir-
reversible, and their impact on businesses
new skills to stay relevant. Whether you
are in a job or not, seek training opportuni-
will change the way your company does
business. Look out for evolving opportuni- 4 The modern soldier is
and jobs will be long-lasting. Let’s look at ties and exposure to projects using new ties within and decide whether you want to more valuable than the gladiator
the key career trends for 2024. technologies in your domain and industry. lead the change. of Roman times. The person
who can work well in a team is
Layoffs and loyalty Growing digitisation Changes at the workplace needed more than a lone wolf.
The current economic trend has led to a While new technology is pushing bounda- Gen Z, alternative work arrangements, The most successful people in
focus on costs across small and big compa- ries, digitisation is the growth, access and inclusiveness, mentoring and mental your team usually have superior
nies. Job insecurity is higher now than at penetration of technology in all sectors and health will change your workplace and its people skills. Learn from them to
any other time, except during the pandem- across all geographies. This accelerating practices faster than ever before in 2024. grow into a team player first, and
ic. Your company would have seen some trend has become the single largest and As Gen Z enters the workforce in increased then an effective team leader, to
workforce reduction, or at least a hiring constant disruptor of existing businesses, numbers, the environment will change to survive and succeed.
freeze, with no replacements. The profes- where companies are responding to the include their needs and impact. The exist-
sionals who have lost jobs are taking much need for digitisation among customers, ing trend of inclusiveness will be acceler- MASTER YOUR
longer to find new roles. In 2024, there will competitors and market stakeholders. This ated by Gen Z’s beliefs, and you can expect 5 MIND
be more unemployed graduates competing affects everything, from discovery and greater diversity in your team. Skills will
Your ability to control and focus
for open vacancies since campus place- purchase to delivery of goods and services. matter more than education in hiring
your mind is a life skill in the
ment is facing one of the most challenging What it means in 2024 is that the number of because of changing technologies and dilu-
new age of burnout and mental
seasons. This also means that company people in manual processes will be reduced tion in examinations during the pandemic.
stress. Reduced job security and
loyalty will continue to rise. Managers will and replaced by people with different skill The professionals who want to progress
rapid irrelevance of work skills
prefer to retain their best team members sets, who are either technical specialists or and avoid redundancy will increasingly
has made it easier to feel helpless
than risk a hiring freeze or an expensive are comfortable with the new digitised pro- seek out mentors and training opportuni-
and anxious in life and at work.
replacement. Professionals will prefer to cesses and data. More jobs may be created ties. With cost-cutting, companies have re-
Experiment with exercise,
stay longer than face rejection and employ- than disrupted, but not for the same skills duced their real estate footprints and hir-
mindfulness and meditation to
ment gaps. This means reduced churn, or people. Watch out for what is changing ing of permanent staff. This means greater
build mental muscle for stability,
fewer promotions and good increments in your company and where you need to be. diversity in work arrangements in the
peace and effectiveness.
only for the best performers. same office—permanent, temporary, con-
Colour me green tract, consultant, gig, hybrid, work from
Rise of gen AI, new tech Green is the color of both sustainability home and return to office. The only thing
Old roles will disappear and currently and environmental, social and governance you can rely on is change. As mental health
‘unknown’ new roles will be created. The (ESG). The focus on going green will be a is being recognised, expect 2024 to permit THE WRITER IS FOUNDER & CEO,
SALARYNEXT.COM, A JOB LOSS
World Economic Forum Future of Jobs major contributor to new job creation in more mental health breaks and sabbaticals
ASSUR ANCE COMPANY.
report for 2023 forecasts 23% job churn by 2024 because of investments in increasing without harming individual careers.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP15 User: manish.kumar10 Time: 12-22-2023 19:39 Color:

SMART STATS
The Economic Times Wealth
December 25-31, 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

Bandhan Bank 1 1 238.25 23.43 75.55 17.29 1.94 0.63 0.20 1.32 0.71 29 4.24
LIC Housing Finance 2 4 518.60 24.29 63.62 9.77 1.04 1.66 0.17 1.14 1.38 33 4.03
Kalpataru Projects 3 2 631.15 37.95 86.07 22.01 2.20 1.09 0.30 1.30 1.35 16 4.63 Top 5 stocks with the highest
revenue growth (%) over the
Samvardhana Motherson 4 3 93.95 37.41 124.44 41.72 2.78 0.70 0.32 1.30 1.02 22 4.64
previous year
Natco Pharma 5 5 778.15 44.26 75.93 19.58 2.87 1.24 0.26 1.18 0.41 15 3.47
Bajaj Finance 50
Manappuram Finance 6 6 170.00 37.82 46.23 9.29 1.44 1.92 0.21 1.81 1.97 20 4.40
Ujjivan Small
Axis Bank 7 7 1,095.40 11.38 94.71 25.44 2.35 0.09 0.25 0.85 0.80 50 4.80 44
Finance Bank
Balrampur Chini Mills 8 9 385.90 31.38 86.87 27.55 2.68 1.43 0.26 1.40 1.31 11 4.18 Natco Pharma 44
Aurobindo Pharma 9 8 1,092.15 21.98 78.51 32.23 2.31 0.58 0.41 1.09 0.40 30 3.97 Nippon Life
40
Maruti Suzuki India 10 10 10,012.85 36.52 60.87 37.09 4.93 0.89 0.65 0.69 0.96 50 4.16 India Asset
Can Fin Homes 39
Apollo Tyres 11 11 430.25 10.74 75.92 24.79 2.13 1.04 0.32 1.18 0.95 29 3.69
Larsen & Toubro 12 13 3,424.15 28.50 48.55 45.88 5.38 0.88 0.88 0.84 0.47 37 4.62
Zydus Lifesciences
Somany Ceramics
13
14
12
14
671.45
708.90
18.28
19.54
70.57
105.73
34.30
42.35
3.84
3.85
0.90
0.43
0.50
0.40
0.90
1.42
0.64
0.80
37
22
3.68
4.68
2 Least expensive stocks
Top 5 stocks with the lowest
Blue Star 15 16 928.85 33.92 104.05 46.34 13.66 0.65 0.16 1.06 0.06 23 3.96 price-earnings ratio
Mindspace Business 16 15 317.25 6.00 134.88 66.17 1.27 6.07 0.49 0.80 -0.03 12 4.17 Manappuram
Finance 9.29
Jindal Stainless 17 17 539.00 28.48 74.27 20.76 3.68 0.67 0.28 1.63 2.23 11 4.64 Ujjivan Small
Finance Bank 9.48
Ujjivan Small Finance 18 20 57.25 44.32 25.51 9.48 2.75 2.24 0.46 1.56 2.10 15 4.73
LIC Housing 9.77
Cipla/India 19 18 1,221.85 20.75 51.40 35.60 4.26 0.69 0.68 0.99 0.28 40 3.92 Finance
IndusInd Bank 20 22 1,570.00 18.68 25.26 14.41 2.06 0.90 0.59 1.16 2.18 48 4.81 Federal Bank 10.06
Biocon 21 19 245.70 22.34 130.62 58.63 1.55 0.62 0.50 1.24 0.95 20 3.85
CESC 11.40
Can Fin Homes 22 21 759.80 39.20 33.53 16.18 2.76 0.46 0.48 1.48 1.20 23 4.26

3 Best PEGs
Adani Ports & SEZ 23 28 1,018.95 33.52 77.37 41.47 4.83 0.49 0.50 2.19 2.80 20 4.80
Bajaj Auto 24 27 6,246.35 30.16 30.13 29.44 6.02 2.20 0.94 0.83 0.46 47 3.64
Top 5 stocks with the least
Alembic Pharmaceuticals 25 25 754.75 22.05 88.00 43.31 3.39 1.05 0.49 1.12 1.02 19 3.21 price earnings to growth ratio
SAIL 26 37 109.00 3.88 78.95 20.01 0.80 0.96 0.27 1.32 1.99 26 2.81 LIC Housing Manappuram
Finance Finance
Federal Bank 27 31 153.95 24.09 28.94 10.06 1.45 0.65 0.96 1.13 1.90 40 4.68
Hero MotoCorp 28 26 3,850.15 13.72 43.98 27.33 4.61 2.62 0.63 0.96 1.32 46 3.70
0.16 0.17 0.20 0.21 0.25
UltraTech Cement 29 32 9,954.45 20.98 76.43 56.50 5.27 0.38 0.76 0.79 0.85 43 4.21
Bajaj Finance 30 30 7,367.15 49.51 49.01 38.64 8.18 0.40 0.78 1.01 0.99 35 4.26
Blue Star Bandhan Bank Axis Bank
M&M Financial Services 31 35 269.90 30.49 19.61 15.99 1.79 2.23 0.92 1.41 1.27 40 3.60
NTPC 32 29 301.95 7.15 26.94 17.18 1.98 3.19 0.67 0.90 1.24 24 4.63
Endurance Technologies
Ajanta Pharma
33
34
24
39
1,803.65
1,898.85
28.97
21.54
73.47
52.10
52.63
41.04
5.72
7.04
0.40
1.32
0.72
0.77
1.06
1.05
0.17
0.52
20
16
4.25
4.44
4 Income generators
Top 5 stocks with the highest
EPL 35 34 197.40 20.15 43.11 27.44 3.14 2.23 0.64 1.27 1.07 10 4.50 dividend yield (%)
Mindspace
Exide Industries 36 40 293.60 12.63 55.41 29.98 2.22 0.70 0.54 1.02 1.62 24 4.00 6.07
Business Parks
Mahindra & Mahindra 37 36 1,633.85 18.96 14.24 17.82 3.77 0.99 0.66 1.02 1.43 43 4.47 CESC 3.90
CESC 38 42 118.40 18.63 15.14 11.40 1.40 3.90 0.69 1.12 0.86 14 4.79 HeidelbergCement
3.22
India
UTI Asset Management Co 39 33 838.60 14.82 40.76 24.33 2.75 2.61 0.59 1.09 0.91 15 4.07 NTPC 3.19
Kajaria Ceramics 40 41 1,367.20 21.29 62.07 63.07 9.34 1.11 1.02 1.04 0.69 34 4.38 Nippon Life India
2.83
Asset

5 Least risky
Nippon Life India Asset 41 46 457.25 39.64 35.47 39.44 8.12 2.83 1.13 1.12 0.71 18 4.33
HeidelbergCement India 42 44 225.40 14.39 147.68 50.67 3.44 3.22 0.35 1.00 1.74 16 2.56
Top 5 stocks with the lowest
Eicher Motors 43 47 3,957.95 24.68 40.97 37.46 7.28 0.95 0.89 1.00 1.02 44 3.73
downside risk
Finolex Industries 44 45 210.80 13.16 138.31 51.56 2.63 0.72 0.39 1.50 1.65 16 3.81 UltraTech
Cement Bajaj Auto
Torrent Pharmaceuticals 45 43 2,195.20 22.73 55.78 59.59 11.97 1.02 1.06 0.87 0.32 34 4.24
Cyient 46 38 2,323.30 31.83 50.16 48.37 7.26 1.27 1.00 1.63 0.69 20 4.20
0.69 0.79 0.80 0.83 0.84
JK Lakshmi Cement 47 -- 858.30 18.38 55.34 27.96 3.58 0.45 0.53 1.39 1.15 20 4.10
Orient Cement 48 48 242.35 21.07 96.90 39.22 3.00 0.64 0.40 1.56 1.54 13 3.46
Maruti Suzuki Mindspace Larsen &
Ramco Cements 49 50 990.10 24.63 131.63 71.92 3.41 0.20 0.57 0.88 1.24 35 3.06 India Business Parks Toubro
Ipca Laboratories 50 -- 1,065.00 34.69 92.69 56.99 4.60 0.19 0.62 1.13 0.29 21 3.05 SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
IN THE ADJACENT TABLE.

*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 21 DECEMBER 2023. SOURCE: BLOOMBERG
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP16 User: manish.kumar10 Time: 12-22-2023 19:41 Color:

smart stats
16 The Economic Times Wealth December 25-31, 2023

LAGGARDS & LEADERS

ETW FUNDS 100

Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).

LAGGARDS LEADERS

BEST FUNDS TO BUILD YOUR PORTFOLIO

Equity: Large cap 5-year returns
11.79 19.30
ET Wealth collaborates with Value Research to identify the top-performing Groww Large Cap Fund BHARAT 22 ETF

funds across categories. Equity funds and equity-oriented hybrid funds are 11.86 19.16
Taurus Largecap Equity Fund ICICI Prudential BHARAT 22 FOF
ranked on 3-year returns while debt-oriented hybrid and income funds are 12.06 18.10
ranked on 1-year returns. LIC MF Nifty Next 50 Index Fund Quant Focused Fund
12.21 16.25
RETURNS (%) ICICI Prudential Nifty Next Nippon India Large Cap Fund
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) 12.41 16.23
UTI Nifty Next 50 Index Fund DSP Nifty 50 Equal Weight Index
EQUITY: LARGE CAP
Quant Focused Fund  480.67 9.70 20.13 21.11 23.05 18.10 2.38 23.05%
DSP Nifty 50 Equal Weight Index Fund - Regular Plan
ICICI Prudential Bluechip Fund


862.84
44,425.37
8.07
7.80
16.48
17.44
22.91
22.05
21.63
20.10
16.23
16.09
0.92
1.56
THE 3-YEAR
RETURN OF
Equity: Flexi cap 5-year returns
Kotak Bluechip Fund - Regular Plan  6,870.39 6.04 13.49 17.52 16.59 15.5 1.78 QUANT
UTI Nifty 50 Index Fund - Regular Plan  13,626.63 6.34 12.78 15.86 16.36 15.02 0.41 FOCUSED 10.62 24.84
DSP Nifty 50 Index Fund - Regular Plan  417.99 6.35 12.77 15.77 16.19 — 0.40
FUND IS Axis Focused 25 Fund Quant Flexi Cap Fund
THE
Bandhan Nifty 50 Index Fund - Regular Plan  1,001.98 6.31 12.65 15.53 16.00 14.89 0.60 HIGHEST 11.13 22.28
HDFC Index Fund - S&P BSE Sensex Plan  5,852.71 5.64 11.75 15.30 15.34 14.86 0.40 IN ITS Motilal Oswal Flexi Cap Parag Parikh Flexi Cap Fund
CATEGORY.
ICICI Prudential S&P BSE Sensex Index Fund  1,199.39 5.65 11.76 15.27 15.30 14.94 0.35
11.62 21.79
Canara Robeco Bluechip Equity Fund - Regular Plan  10,816.61 6.17 12.31 17.27 15.03 16.14 1.70
Taurus Flexi Cap Fund 360 ONE Focused Equity Fund
EQUITY: LARGE & MIDCAP 12.40 19.94
HDFC Large and Mid Cap Fund - Regular Plan  13,427.73 8.36 21.27 30.78 27.36 19.48 1.76 Shriram Flexi Cap Fund JM Flexicap Fund
ICICI Prudential Large & Mid Cap Fund  9,636.74 7.52 19.06 24.36 25.80 18.54 1.79
12.46 19.87
SBI Large & Midcap Fund  17,175.44 4.67 12.83 19.93 22.37 17.52 1.73
Kotak Equity Opportunities Fund - Regular Plan  16,502.69 5.14 14.42 22.68 20.53 17.90 1.65
Nippon India Retirement HDFC Retirement Savings
Mirae Asset Large & Midcap Fund - Regular Plan  30,284.45 5.90 17.64 22.68 20.12 18.93 1.58
Tata Large & Mid Cap Fund - Regular Plan  5,712.32 4.92 11.67 17.03 19.51 17.41 1.85

EQUITY: FLEXI CAP

Equity: Mid cap 3-year returns
HDFC Focused 30 Fund  7,762.21 8.56 18.09 25.10 28.30 17.66 1.76 28.3% 17.85 34.07
HDFC Flexi Cap Fund  42,270.54 8.33 18.54 25.65 27.24 18.44 1.57 THE 3-YEAR DSP Midcap Fund Motilal Oswal Midcap Fund
HDFC Retirement Savings Fund Equity Plan  4,036.24 6.64 16.01 27.61 26.41 19.87 1.86 RETURN
OF HDFC 19.32 31.9
ICICI Prudential Retirement Fund - Pure Equity Plan  422.60 9.54 20.95 28.78 26.10 — 2.39
FOCUSED Axis Midcap Fund Quant Mid Cap Fund
JM Flexicap Fund  862.36 10.27 21.69 32.92 24.87 19.94 2.27 30 FUND IS
Franklin India Flexi Cap Fund  12,801.72 8.49 20.50 24.31 23.63 17.37 1.78 THE HIGH- 20.17 30.18
Franklin India Focused Equity Fund  9,856.10 5.49 14.45 18.35 22.57 17.36 1.8 EST IN ITS LIC MF Midcap Fund Nippon India Growth Fund
CATEGORY.
Parag Parikh Flexi Cap Fund - Regular Plan  48,293.88 8.59 16.35 31.91 22.53 22.28 1.37 21.19 29.95
ICICI Prudential Focused Equity Fund  6,116.61 7.28 16.70 23.43 22.01 17.63 1.81 Franklin India Prima HDFC Mid-Cap Opportunities Fund

360 ONE Focused Equity Fund - Regular Plan 5,659.25 6.66 14.99 23.60 20.01 21.79 1.85
21.39 29.05
Union Flexi Cap Fund  1,746.93 7.77 16.53 22.10 19.73 17.67 2.08
HSBC Midcap Fund Motilal Oswal Nifty Midcap 100 ETF
PGIM India Flexi Cap Fund - Regular Plan  5,891.74 5.17 9.63 14.67 17.22 18.52 1.78

EQUITY: MID CAP

Motilal Oswal Midcap Fund - Regular Plan  6,804.62 10.46 20.38 33.78 34.07 23.40 1.78 34.07% Equity: Small cap 3-year returns
Quant Mid Cap Fund  3,781.48 8.47 25.45 26.26 31.90 25.31 1.89 THE 3-YEAR
Nippon India Growth Fund  21,380.48 11.34 26.94 39.58 30.18 23.43 1.67 RETURN OF 22.86
MOTILAL
42.71
HDFC Mid-Cap Opportunities Fund  52,137.70 8.80 21.59 37.37 29.95 21.82 1.50
OSWAL ITI Small Cap Fund Quant Small Cap Fund
SBI Magnum Midcap Fund  14,454.73 5.37 12.98 28.25 27.71 21.60 1.76
MIDCAP 24.96 39.43
Edelweiss Mid Cap Fund - Regular Plan  4,267.00 10.74 19.53 30.72 27.53 22.02 1.84 FUND IS THE
Mirae Asset Midcap Fund - Regular Plan  12,823.47 5.65 21.21 28.07 26.53 — 1.71 HIGHEST Aditya Birla Sun Life Fund Nippon India Small Cap Fund
Kotak Emerging Equity Fund - Regular Plan  36,527.95 6.64 16.44 25.96 25.68 21.14 1.50
IN ITS 25.66 36.88
CATEGORY.
PGIM India Midcap Opportunities Fund - Regular Plan  9,800.28 4.73 11.32 15.19 24.69 23.57 1.71 SBI Small Cap Fund HSBC Small Cap Fund

EQUITY: SMALL CAP 29.21 35.63

Nippon India Small Cap Fund  41,018.84 9.09 23.82 40.86 39.43 27.15 1.53 Axis Small Cap Fund HDFC Small Cap Fund
Tata Small Cap Fund - Regular Plan  6,345.75 7.45 16.23 27.61 34.76 24.81 1.75 29.26 34.76
Kotak Small Cap Fund - Regular Plan  13,376.62 6.79 16.31 28.39 30.08 25.07 1.67 Bandhan Small Cap Fund Tata Small Cap Fund
Axis Small Cap Fund - Regular Plan  17,915.66 6.88 15.51 28.3 29.21 25.33 1.64

EQUITY: VALUE ORIENTED

SBI Contra Fund  18,930.58 8.20 20.05 30.58 31.31 23.72 1.70 31.31%
Hybrid: Aggressive 5-year returns
Bandhan Sterling Value Fund - Regular Plan  7,213.54 5.83 16.13 26.65 29.90 18.45 1.79
THE 3-YEAR
ICICI Prudential Value Discovery Fund  35,089.33 7.33 20.04 26.71 26.97 20.15 1.62 RETURN OF 9.73 21.14
SBI CONTRA LIC MF Aggressive Hybrid Quant Absolute Fund
EQUITY: ELSS FUND IS
 9.89 19.03
Quant ELSS Tax Saver Fund 5,614.57 10.75 22.87 20.64 31.51 27.23 1.83 THE HIGH-
Bandhan ELSS Tax Saver Fund - Regular Plan  5,402.95 4.88 14.36 22.95 25.07 18.39 1.79 EST IN ITS Nippon India Equity Hybrid Bank of India Mid & Small Cap Equity
SBI Long Term Equity Fund - Regular Plan  17,279.15 7.91 20.46 31.18 23.83 18.21 1.72 CATEGORY. 10.58 18.68
Bank of India Tax Advantage Fund - Regular Plan  951.28 10.68 22.86 28.34 22.84 22.20 2.23 PGIM India Hybrid Equity ICICI Prudential Equity & Debt Fund
Parag Parikh ELSS Tax Saver Fund - Regular Plan  2,334.28 6.34 16.56 23.04 22.33 — 1.85
10.74 16.13
DSP ELSS Tax Saver Fund  12,615.07 8.09 19.69 24.23 21.53 18.46 1.67
Bandhan Asset Allocation HDFC Children’s Gift Fund
Union ELSS Tax Saver Fund  747.79 6.87 15.29 21.13 20.09 17.74 2.35
Kotak ELSS Tax Saver - Regular Plan  4,393.15 4.56 12.85 18.09 19.95 17.1 1.79 10.85 15.87
Mirae Asset ELSS Tax Saver Fund - Regular Plan  18,842.81 5.78 15.54 20.61 19.12 17.96 1.61 Shriram Aggressive Hybrid Kotak Equity Hybrid Fund
Canara Robeco ELSS Tax Saver Fund - Regular Plan  6,533.06 7.32 13.74 18.61 18.35 17.85 1.73
ANNUALISED RETURNS IN % AS ON 20 DEC 2023.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP17 User: manish.kumar10 Time: 12-22-2023 19:42 Color:

smart stats
The Economic Times Wealth December 25-31, 2023 17

ETW FUNDS 100 Value Research Net Assets

RETURNS (%)
Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio

HYBRID: EQUITY SAVINGS

HDFC Equity Savings Fund  3,334.46 3.77 8.34 11.88 11.89 9.86 1.99
1 Top 5 SIPs
Top 5 equity schemes based
UTI Equity Savings Fund - Regular Plan  309.77 3.88 8.67 13.89 11.64 9.68 1.50
on 10-year SIP returns
Kotak Equity Savings Fund - Regular Plan  3,658.01 5.12 9.06 13.86 10.85 10.00 1.92
SBI Equity Savings Fund - Regular Plan  3,245.63 3.20 9.70 15.9 10.78 10.45 1.18 Nippon India Small Cap Fund
ICICI Prudential Equity Savings Fund  7,916.63 2.12 5.83 9.70 8.92 8.24 0.97
24.93
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) Quant Small Cap Fund
ICICI Prudential Equity & Debt Fund  28,005.82 6.94 17.76 24.28 25.45 18.68 1.67 25.45% 24.45
Bank of India Mid & Small Cap Equity & Debt Fund  558.33 8.97 21.98 28.96 25.15 19.03 2.49 THE 3-YEAR
Quant ELSS Tax Saver Fund
Quant Absolute Fund  1,435.36 5.48 11.65 9.10 23.06 21.14 2.09 RETURN OF
JM Aggressive Hybrid Fund  110.45 8.62 21.37 28.41 20.46 15.65 2.4 ICICI PRUDEN- 23.81
TIAL EQUITY &
HDFC Children's Gift Fund  7,741.55 6.61 12.40 22.96 19.21 16.13 1.78 SBI Small Cap Fund
DEBT FUND IS
Edelweiss Aggressive Hybrid Fund - Regular Plan  1,051.57 6.65 14.70 21.35 18.52 15.31 2.13 THE HIGHEST 21.86
Mahindra Manulife Aggressive Hybrid Fund  880.93 4.98 12.77 18.76 18.38 — 2.22 IN ITS CAT-
HDFC Retirement Savings Fund - Hybrid Equity Plan  1,206.92 4.98 12.12 21.36 17.34 15.00 2.15 EGORY. Quant Flexi Cap Fund
Kotak Equity Hybrid Fund - Regular Plan  4,517.82 4.89 11.73 16.75 17.21 15.87 1.83 21.69
HDFC Hybrid Equity Fund  21,192.41 3.71 8.92 14.51 17.01 13.98 1.71
SIP: SYSTEMATIC % ANNUALISED RETURNS
Baroda BNP Paribas Aggressive Hybrid Fund  874.56 5.94 12.50 16.75 15.29 14.99 2.23
INVESTMENT PLAN AS ON 20 DEC 2023
Canara Robeco Equity Hybrid Fund - Regular Plan  9,277.88 5.85 11.48 16.15 13.95 14.2 1.74

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

SBI Magnum Children's Benefit Fund - Savings Plan
HDFC Hybrid Debt Fund


102.51
2,938.72
4.27
3.48
9.34
7.32
15.95
12.64
12.65
10.9
10.55
9.82
1.22
1.79
15.95%
THE 1-YEAR
2 Top 5 MIPs
Top 5 MIP schemes based on
Kotak Debt Hybrid Fund - Regular Plan  2,106.25 4.06 7.42 12.15 10.18 10.91 1.75
RETURN OF
SBI Conservative Hybrid Fund  9,053.76 1.79 5.65 10.84 10.1 10.2 1.12 SBI MAGNUM 3-year SWP returns
ICICI Prudential Regular Savings Fund  3,316.75 2.65 6.39 10.13 8.62 9.19 1.72 CHILDREN’S
Canara Robeco Conservative Hybrid Fund - Regular Plan  1,023.50 2.48 4.94 8.46 7.28 9.05 1.81 BENEFIT IS Bank of India Conservative Hybrid Fund
THE HIGH-
13.26
DEBT: MEDIUM TO LONG TERM EST IN ITS
SBI Magnum Income Fund  1,697.31 1.47 2.72 7.17 4.64 7.34 1.46 CATEGORY. SBI Magnum Children’s Benefit Fund
UTI Medium to Long Duration Fund - Regular Plan  302.91 1.07 1.98 6.35 8.62 3.96 1.62 12.16
DEBT: MEDIUM TERM HDFC Hybrid Debt Fund
Axis Strategic Bond Fund  1,936.64 1.62 2.94 7.18 5.46 6.74 1.09 10.44
SBI Magnum Medium Duration Fund  6,895.37 1.52 2.98 7.18 4.86 7.49 1.22
ICICI Prudential Income Optimizer
ICICI Prudential Medium Term Bond Fund  6,496.18 1.62 3.08 6.96 5.58 7.23 1.40
Aditya Birla Sun Life Medium Term Plan - Regular Plan  1,890.52 1.39 2.87 6.87 12.63 8.13 1.58 10.20
SBI Conservative Hybrid Fund
DEBT: SHORT TERM
9.72
ICICI Prudential Short Term Fund  18,806.99 1.60 3.41 7.28 5.30 7.22 1.07 7.28%
HDFC Short Term Debt Fund  12,285.42 1.55 3.20 7.08 4.86 7.02 0.74
THE 1-YEAR SWP: SYSTEMATIC % ANNUALISED RETURNS
UTI Short Duration Fund - Regular Plan  2,372.11 1.64 3.03 6.87 6.33 4.99 0.95 RETURN OF WITHDRAWAL PLAN AS ON 20 DEC 2023
Aditya Birla Sun Life Short Term Fund - Regular Plan  6,020.58 1.52 3.04 6.79 4.97 6.87 1.04 ICICI PRU
Sundaram Short Duration Fund  196.87 1.51 2.86 6.74 6.80 5.22 0.84 SHORT TERM
FUND IS
Value Oriented:
3
Axis Short Term Fund  7,702.11 1.54 2.87 6.69 4.64 6.74 0.90
THE HIGH-
DEBT: DYNAMIC BOND
EST IN ITS
CATEGORY.
Cash holdings
ICICI Prudential All Seasons Bond Fund  11,511.25 1.76 3.39 7.48 5.48 7.60 1.31
Quantum Dynamic Bond Fund - Regular Plan  92.82 1.54 3.15 7.21 5.07 7.09 0.96 13.56 13.07
SBI Dynamic Bond Fund  2,945.18 1.46 2.57 7.13 4.46 7.17 1.43 10.86
Aditya Birla Sun Life Dynamic Bond Fund - Regular Plan  1,687.60 1.47 2.81 6.79 5.93 5.20 1.23 9.91 9.35
360 ONE Dynamic Bond Fund - Regular Plan  744.01 1.64 2.98 6.66 5.36 6.38 0.52
JM Dynamic Bond Fund  42.95 1.57 2.36 6.20 4.26 5.34 0.98

DEBT: CORPORATE BOND

ICICI Prudential Corporate Bond Fund  24,467.61 1.47 3.49 7.46 5.37 7.27 0.55
Aditya Birla Sun Life Corporate Bond Fund  17,698.28 1.5 3.30 7.21 5.14 7.35 0.50
Expense as on 30 Nov 2023 DSP ICICI SBI Temple- Groww
Nippon India Corporate Bond Fund  2,388.03 1.57 3.03 7.10 5.40 6.70 0.67
Returns as on 20 Dec 2023 Value Prudential Contra ton India Value
Kotak Corporate Bond Fund - Standard Plan  10,653.42 1.50 3.08 6.76 4.74 6.69 0.67
Assets as on 30 Nov 2023 Fund Value Fund Value Fund
Axis Corporate Debt Fund - Regular Plan  4,827.53 1.46 2.94 6.66 4.70 6.32 0.94 Rating as on 30 Nov 2023 Discovery Fund
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Fund % OF ASSETS AS ON 30 NOV 2023
Did not find your fund here?
Log on to www.wealth.economictimes.com for an exhaustive list.

Methodology
The Top 100 includes only those funds that have a 5- or
4-star rating from Value Research. The rating is determined
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
FUND
4 Debt: Money market
Multi-cap: Mostly invested in large- and mid-cap

RAISER
by subtracting a fund’s risk score from its return score.
The result is assigned stars according to the following companies. 0.34
0.31 0.31
distribution: Mid-cap: Mostly invested in mid-cap companies.
0.27
Small-cap: Mostly invested in small-cap companies. 0.25

54.1%
 Top 10%
 Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
 Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
 Next 22.5% 100 listing) Income: Average maturity varies according to objective.
 Bottom 10% Gilt: Medium- and long-term; invest in gilt securities.
of equity diversified funds
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more
have underperformed their
less than three years old have been excluded. This ensures than 60%. respective benchmark indices in Franklin UTI ICICI Pru- TRUSTMF Aditya
that all the funds have existed long enough to be tracked for Debt-oriented aggressive: Average equity exposure the past year. India Money dential Money Birla Sun
consistency of performance. Given the focus on long-term between 25-60%. Money Market Money Market Life Money
investing, liquid funds, short-term funds and FMPs are not Market Fund Market Fund Manager
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure SOURCE: ACE MF. Fund Fund Fund
the growth option of funds that reinvest returns instead of less than 25%. DATA AS OF 20 DECEMBER 2023. % AS ON 30 NOV 2023
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.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP18 User: manish.kumar10 Time: 12-22-2023 19:45 Color:

loans and deposits

18 The Economic Times Wealth December 25-31, 2023

LOANS & DEPOSITS

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

Top five bank FDs

Interest rate (%) What `10,000
HOME LOAN RATES
TENURE: 1 YEAR compounded qtrly will grow to With effect from October 2019, all banks have made the transition to
IndusInd Bank 7.50 10,771 external benchmarks for pricing new home loans. Most banks have
RBL Bank 7.50 10,771
picked the RBI repo rate as the external benchmark.
Bandhan Bank 7.25 10,745
DCB Bank 7.25 10,745 REPO RATE: 6.50%
YES Bank 7.25 10,745 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
RBL Bank 8.00 11,717 Indian Bank 9.20 8.40 9.90 8.50 9.90 31 Oct 2023
IDFC First Bank 7.75 11,659 Punjab National Bank 9.25 8.40 10.10 8.40 10.10 9 Feb 2023
DCB Bank 7.55 11,614
Bank of Baroda 9.15 8.40 10.60 8.40 10.60 14 Feb 2023
IndusInd Bank 7.50 11,602
Union Bank of India 9.30 8.40 10.80 8.55 10.80 11 Oct 2023
Bank of India 7.25 11,545
UCO Bank 9.30 8.45 10.30 8.45 10.30 15 Mar 2023
TENURE: 3 YEARS
IDBI Bank 9.10 8.45 10.75 8.55 12.25 12 Feb 2023
DCB Bank 7.60 12,534
RBL Bank 7.50 12,497
HDFC Bank -- 8.50 9.40 8.50 9.40 Not Given
Bank of Baroda 7.25 12,405 IndusInd Bank -- 8.50 10.55 8.50 10.55 Not Given
IDFC First Bank 7.25 12,405 Punjab & Sind Bank 8.45 8.55 10.00 8.55 10.00 25 Aug 2023
IndusInd Bank 7.25 12,405 Canara Bank 9.25 8.55 11.25 8.90 11.25 12 Nov 2023
TENURE: 5 YEARS Bank of Maharashtra 9.30 8.60 10.30 8.80 10.80 11 Oct 2023
DCB Bank 7.40 14,428 Kotak Mahindra Bank -- 8.70 9.35 8.75 9.60 Not Given
IndusInd Bank 7.25 14,323 Karnataka Bank -- 8.75 10.43 8.75 10.43 1 Nov 2023
YES Bank 7.25 14,323
Federal Bank -- 8.80 10.25 10.20 10.30 Not Given
RBL Bank 7.10 14,217
Indian Overseas Bank 9.35 8.85 10.80 8.85 10.80 8 Feb 2023
Axis Bank 7.00 14,148
South Indian Bank 9.85 8.97 12.42 8.97 12.42 Not Given
SBI Term Loan 8.75+CRP 9.15 10.15 9.15 10.15 1 May 2023
Top five senior citizen bank FDs Bandhan Bank -- 9.15 13.32 9.15 13.32 Not Given
Interest rate (%) What `10,000 Karur Vysya Bank 9.60 9.23 10.73 9.23 10.73 7 Nov 2023
TENURE: 1 YEAR compounded qtrly will grow to
IndusInd Bank 8.25 10,851 ICICI Bank -- 9.25 9.90 9.40 10.05 Not Given
RBL Bank 8.00 10,824 Bank of India 9.25 9.35 9.80 9.35 10.40 1 Nov 2023
Bandhan Bank 7.75 10,798 Dhanlaxmi Bank 8.50 9.35 10.00 9.85 10.50 25 Feb 2023
YES Bank 7.75 10,798 J & K Bank 9.45 9.45 9.85 9.45 9.85 10 Oct 2023
DCB Bank 7.65 10,787

TENURE: 2 YEARS
IDFC First Bank 8.25 11,774
Your EMI for a loan of `1 lakh
IndusInd Bank 8.25 11,774 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
DCB Bank 8.05 11,728
@ 7% 1,980 1,161 899 775 707
RBL Bank 8.00 11,717
YES Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.10 12,720
@ 9% 2,076 1,267 1,014 900 839
IndusInd Bank 8.00 12,682
@ 10% 2,125 1,322 1,075 965 909
RBL Bank 8.00 12,682
YES Bank 8.00 12,682 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
Bandhan Bank 7.75 12,589

TENURE: 5 YEARS
IndusInd Bank 8.00 14,859
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits

YES Bank 8.00 14,859 Sukanya Samriddhi Yojana 8.00 250 `1.5 lakh p.a. One account per girl child 80C
DCB Bank 7.90 14,787
Axis Bank 7.75 14,678 Senior Citizens' Savings Scheme 8.20 1,000 `30 lakh 5-year tenure, minimum age 60 yrs 80C
RBL Bank 7.60 14,571
Public Provident Fund 7.10 500 `1.5 lakh p.a. 15-year tenure, tax-free returns 80C

Kisan Vikas Patra 7.50 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.70 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 6.9-7.50 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.40 14,428
IndusInd Bank 7.25 14,323 Post Office Monthly Income
Single `9 lakh 5-year tenure, monthly returns Nil
YES Bank 7.25 14,323 7.40 1,000
Scheme
Joint `15 lakh 5-year tenure, monthly returns Nil
RBL Bank 7.10 14,217
IDFC First Bank 7.00 14,148 Recurring deposits 6.70 100 No limit 5-year tenure Nil

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

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
([email protected]) Data as on 21 December 2023 #Benefit available only for 5-year deposit
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP19 User: manish.kumar10 Time: 12-22-2023 19:45 Color:

market watch
The Economic Times Wealth December 25-31, 2023 19

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

Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
54,481 62,086 68,177 74,550 1,001.97 968.97 78.14 73.97
21 DEC 2022 21 DEC 2023 21 DEC 2022 21 DEC 2023 21 DEC 2022 21 DEC 2023 21 DEC 2022 20 DEC 2023

PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER

CHANGE
X 1 WEEK -0.1% 1 WEEK 0.75% 1 WEEK 0.79% 1 WEEK 3.34%
X 1 YEAR 13.96% 1 YEAR 9.35% 1 YEAR -3.29% 1 YEAR -5.34%

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)

Biogen Pharmachem Ind 1.61 9.52 106.41 76.79 368.53 105.07 Econo Trade (India) 6.06 10.18 -29.29 1.15 3,090.75 11.31
Arshiya 7.98 13.84 98.51 30.25 1,109.53 210.27 Bombay Talkies 3.93 14.91 3.42 0.04 3,008.94 21.22
India Steel Works 4.17 16.16 91.28 9.46 807.79 166.01 Akshar Spintex 5.45 -18.41 -22.25 20.65 2,071.76 136.25
Reliance Home Finance 3.50 20.27 79.49 45.07 1,080.12 169.77 Teamo Prodyction HQ 1.05 -12.50 -4.55 11.36 1,643.87 90.43
Risa International 1.03 -8.04 63.49 5.20 150.19 16.43 Sambhaav Media 3.89 -3.47 -1.52 0.91 1,572.62 74.34
Alstone Textiles (India) 0.92 35.29 61.40 356.01 270.69 117.30 Lypsa Gems & Jewellery 7.21 19.77 33.52 1.08 1,377.91 21.26
GG Engineering 2.39 -8.78 60.40 341.62 560.00 210.20 Chartered Logistics 7.65 -13.46 50.59 12.17 1,340.74 75.96
East West holdings 9.01 -6.24 55.08 8.18 332.17 98.70 BAG Films & Media 8.88 3.62 42.08 3.66 1,300.63 175.74
FCS Software Solutions 4.35 -8.42 53.71 120.16 77.84 743.68 DSJ Keep Learning 6.36 -7.42 26.69 0.89 1,112.78 52.92
Gayatri Projects 9.39 19.16 53.68 1.37 74.09 175.78 Arshiya 7.98 13.84 98.51 30.25 1,109.53 210.27

Top price losers Top volume losers

IFL Enterprises 2.19 -14.12 -56.29 53.44 38.37 54.77 Burnpur Cement 6.74 -9.29 -13.03 1.35 -76.83 58.04
Veerkrupa Jewellers 1.24 -12.68 -34.74 19.81 536.83 16.26 Danube Industries 8.28 -6.44 -1.08 4.16 -59.74 49.68
Econo Trade (India) 6.06 10.18 -29.29 1.15 3,090.75 11.31 Zee Learn 5.88 -7.40 -20.43 3.91 -50.31 191.75
Advik Capital 2.16 -4.42 -25.00 129.83 639.12 92.49 Veeram Securities 8.65 -3.67 -2.59 2.47 -46.59 65.44
Navkar Urbanstructure 3.99 0.50 -24.72 1.71 -16.95 89.54 Zenith Steel Pipes 6.25 10.62 -7.68 1.26 -43.61 88.93
Gala Global Products 3.47 -8.92 -23.57 9.50 147.29 18.94 Luharuka Media & Infra 5.11 9.89 -9.07 1.33 -36.22 47.88
Future Lifestyle Fashions 2.66 -8.59 -23.12 1.13 219.17 53.67 Comfort Intech 9.15 13.24 12.68 9.74 -28.02 292.71
Akshar Spintex 5.45 -18.41 -22.25 20.65 2,071.76 136.25 Sarveshwar Foods 5.35 9.63 12.39 4.37 -23.90 523.66
Zee Learn 5.88 -7.40 -20.43 3.91 -50.31 191.75 RattanIndia Power 9.32 -3.52 -3.02 222.33 -19.05 5,004.94
SVC Industries 3.80 -5.71 -17.93 1.21 19.36 61.98 ACI Infocom 1.34 -2.19 -8.84 2.67 -18.95 14.81

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 21 DEC 2023. SOURCE: ETIG DATABASE AND BLOOMBERG.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP20 User: manish.kumar10 Time: 12-22-2023 19:18 Color:

mutual funds
20 The Economic Times Wealth December 25-31, 2023

EDELWEISS LARGE CAP

Outperformed during 2023

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

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

Point-to-point returns (%) BASIC Financials 30.08

FUND BENCHMARK CATEGORY AVERAGE

FACTS Technology 9.92

21.77 21.31 Automobiles 9.77

19.39 DATE OF LAUNCH
18.31 17.63 Consumer
17.21 15.94 20 MAY 2009 9.25
15.53 15.00 staples
CATEGORY
EQUITY Energy 8.67
TYPE
LARGE CAP The portfolio is heavily tilted
towards financials.
AUM*
1-YEAR 3-YEAR 5-YEAR `621 crore
Top 5 stocks in portfolio (%)
AS ON 19 DECEMBER 2023 BENCHMARK
The fund has comfortably beaten the index over the NIFTY 100 TOTAL
past year, but lags behind over three and five years. RETURN INDEX
HDFC Bank 7.28

ICICI Bank 6.87

Rolling returns (%) WHAT IT Reliance

Industries
5.41

COSTS
FUND BENCHMARK

15.15 ITC 4.93

1-YEAR NAV** Larsen & Toubro 4.77
15.32
GROWTH OPTION
`69.81
The fund is heavily diversified, but
14.09 IDCW**
retains large positions in top bets.
3-YEAR `25.58
13.90 MINIMUM INVESTMENT
`100 Recent portfolio changes
MINIMUM SIP AMOUNT
12.90 New entrants
5-YEAR
`100
EXPENSE RATIO # (%) Blue Jet Healthcare, JSW Infrastructure (Oct).
12.63
2.38 Aditya Birla Capital, DLF, Flair Writing Industries,
AS ON 19 DECEMBER 2023
LTIMindtree, NMDC, Power Grid Corporation of
Its long-term track record indicates modest EXIT LOAD
India, Shree Cement, Tata Consumer Products,
outperformance across three- and five-year time frames. 1% for redemption United Breweries (Nov).
within 90 days
Note: Different benchmark (S&P BSE 100 TRI) is used due to non-availability of stated benchmark data.
Returns have been rolled daily over the past decade for relevant time frames. *AS ON 30 NOV 2023 Complete exits
**AS ON 19 DEC 2023
#AS ON 30 NOV 2023 Sai Silks (Kalamandir) (Oct). Blue Jet Healthcare,
Crisil, GAIL (India), Gujarat Fluorochemicals,
WHERE THE FUND INVESTS Hindustan Aeronautics, Hindustan Zinc, Jio
Financial Services, PI Industries, SAMHI Hotels,
Solar Industries India, Syngene International,
Portfolio asset Tata Elxsi, Thermax, Torrent Pharmaceuticals,
Fund
allocation Zydus Lifesciences (Nov).
style box
Growth Blend Value
How risky is it?
94.21%
Large

Equity Fund Category Index

CAPITALISATION

Large cap 89.55

Standard Deviation 12.76 14.32 13.45
10.45
Medium

Mid cap
FUND Sharpe Ratio 0.96 0.88 0.97

Debt & cash 5.79 MANAGER Mean Return 16.90 16.73 17.73
Small

BHAVESH JAIN (LEFT)/ BASED ON 3-YEAR PERFORMANCE.

INVESTMENT STYLE BHARAT LAHOTI

2 YEARS, 1 MONTH / The fund’s risk-return profile counts in
The fund retains a modest presence in 6 YEARS, 6 MONTHS the top quartile in its category.
AS ON 30 NOV 2023
mid caps apart from its large-cap tilt.
Source: Value Research

Should The fund prefers growing businesses The fund remains conscious of the sharp outperformance over the past

You
that are available at reasonable val- benchmark while taking top-down year. Its direct plan, which shines
uations. It is more inclined towards sectoral calls and shuns cash calls. over longer time frames, is a worthy

Buy stable and quality businesses and

stays away from cyclical businesses.
It usually runs positive active bets
of 30-50%. The fund has exhibited a
pick even as the regular plan variant
is weighed down by costs.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP21 User: manish.kumar10 Time: 12-22-2023 19:21 Color:

pick of the week

The Economic Times Wealth December 25-31, 2023 21

Prince Pipes: Competitive advantage

Strong demand for PVC pipes, value-added products and capacity expansion to drive performance.

T
he PVC pipe manufacturer and multi-polymer proces- value-added products and emphasis on improving the return Fundamentals
sor reported a sub-par volume growth of 8% y-o-y in ratios are some such steps. The company has also diversified CONSENSUS
ACTUAL
the September 2023 quarter. This was due to improper into the bathware segment recently, which is showing strong ESTIMATE
pricing relative to peers in some market segments revenue potential due to aggressive expansion in north and 2021-22 2022-23 2023-24 2024-25
and the company’s limited presence in certain pipe categories west India. The company is planning to enter south and east Revenue (` cr) 2,656.83 2,710.87 2,820.65 3,331.72
that are in high demand. However, the performance was much markets by the end of 2023-24. EBITDA (` cr) 415.61 250.32 363.54 467.15
better compared to the June quarter. On a sequential basis, It has a strong and growing network of channel partners, Net profit (` cr) 249.40 121.42 210.87 284.31
EBITDA and PAT grew by 108% and 191%, respectively. The which is helping build a loyal customer base by ensuring
EPS (`) 22.62 10.98 18.98 25.75
EBITDA margin of 12.4% jumped 616 basis points quarter over product availability and delivery across India. The company
quarter (q-o-q). The margins were sup- is planning to add 35,000 MT of pipes
Valuations PBV PE
DIVIDEND
YIELD (%)

Analysts’ views
ported by lower raw material costs and greenfield capacity in Bihar to in-
stabilisation of the share of high-value crease its presence in east India. The Prince Pipes and Fittings 5.88 36.49 0.00
fittings in the sales mix. 11 facility is expected to be operational Supreme Industries 12.85 55.00 0.58
The management is optimistic about 1 Buy in the fourth quarter of 2024-25. Astral 18.67 92.02 0.19
strong end-user demand for PVC pipes Hold The company enjoys a competitive Jain Irrigation Systems 0.74 3.95 0.00
in the future and expects to deliver advantage due to its strategically lo- Mold-Tek Packaging 5.14 45.15 0.69
volume growth on a par with peers. It cated manufacturing plants, strong
expects PVC prices to remain stable
and has guided sustainable margins of
brand image, more than 7,200 stock
keeping units (SKUs), a comprehen-
Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
12-14% over the medium term. The com- sive product portfolio across poly-
20 Dec ’23 Systematix Buy 884
pany has taken corrective steps like mers, and technical collaboration
9 Nov ’23 HDFC Research Add 745
price cuts and investments in building with reputed international players.
capacities of HDPE pipes, which are ex- The stock has outperformed the 8 Nov ’23 JM Financial Buy 900
Prince Pipes and Fittings is focusing on cost
pected to recoup the market share loss market benchmark in the past year 8 Nov ’23 ICICI Securities Add 772
reduction initiatives, value-added products and
from the December 2023 quarter. improving the return ratios for sustainable growth. by delivering a 20.4% return com- 8 Nov ’23 IDBI Capital Hold 798
The company will benefit from the pared to the 14.3% return by the BSE
buoyant growth prospects of the domestic PVC pipe market Sensex. Relative performance 124.6
that is supported by factors like low piped water penetration Selection methodology: We pick the stock that has shown
100 MARKET PRICE: `725.35 121.1
in India, strong growth of the housing and infrastructure sec- the maximum increase in ‘consensus analyst rating’ during
tors, replacement demand and growing demand for PVC pipes the past month. The consensus rating is arrived at by averag-
from the agriculture and industrial sectors. ing all analyst recommendations after attributing weights to
Government schemes like PM Awas Yojana and Jal Jeevan each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and SENSEX
Mission are also providing a boost to the PVC pipe market. 1 for strong sell). An improvement in consensus analyst rating 116.0
The pipe industry is expected to grow at 11-12% CAGR over indicates that the analysts are getting bullish on the stock.
2020-21 and 2024-25 to reach `55,000-60,000 crore. The manage- Only stocks with at least 10 analysts covering them are consid-
21 DEC 2022 PRINCE PIPES AND FITTINGS S&P BSE 500 21 DEC 2023
ment is focusing on strategic steps for sustainable growth. ered. You can see similar consensus analyst rating changes
Prince Pipes and Fittings is compared with S&P BSE 500 and Sensex. Stock price and
Product innovation, cost reduction initiatives, introduction of during the past week in ETW 50 table. —Sameer Bhardwaj 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 21 DECEMBER

STOCK ADVICE COMMENT

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

Divgi Torqtransfer Prabhudas Initiate with ‘buy’ due to its largest non-OEM supplier positioning, first-mover advantage, sharp ramp-up in
Buy 994 1,300 30.8
Systems Lilladher EV transmission business, recovery in exports business, strong order book and industry leading margins.

Maintain ‘buy’ due to market share gains in newly acquired territories and focus on go-to-market execution
Varun Beverages Axis Securities Buy 1,172 1,450 23.7 in rural market. Scaling up of distribution reach and focus on value-added dairy, sports drink and juice seg-
ment are other positives.
Retain ‘buy’ due to its strong manufacturing and R&D base, robust order book, diversifying revenue stream,
Bharat Electronics Sharekhan Buy 173 210 21.4 strong export opportunities, healthy balance sheet and improving return ratios.

Rate ‘buy’ as prospects of its recruitment business are set to improve, aided by stabilisation in attrition.
Info Edge Nuvama Buy 5,153 6,220 20.7 Billing growth is set to accelerate in the future amid expectations of bottoming out of IT service headwinds.

Well positioned to outpace industry growth led by its diversified product portfolio, new products, strong cus-
Tega Industries SMIFS Buy 1,063 1,231 15.8 tomer relationships, de-risked business model, diverse manufacturing base and capacity expansion.

Centrum Initiate with ‘buy’ due to its robust capitalisation, granular balance sheet, effective risk management, pris-
IDFC First Bank Buy 90 104 15.6
Broking tine asset quality, technological innovation and the potential for sustainable high-teen RoEs.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Rate ‘sell’ as the weak thermal business and focus on hybrid projects provide limited opportunities.
Torrent Power Geojit Sell 929 833 -10.3 Expectations of moderate growth in earnings in the future and high valuations could drag performance.
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP22 User: manish.kumar10 Time: 12-22-2023 19:46 Color:

tax optimiser
22 The Economic Times Wealth December 25-31, 2023

Old regime can help save `52k tax

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

N
oida-based IT professional
Sanjay Tomar pays a high
tax even though his pay
structure is tax-friendly.
Tomar did not inform INCOME
his company whether he wanted to
opt for the old or new tax regime, and
FROM EMPLOYER
was placed under the new regime by
default. Tomar didn’t get it changed
because of the ease it offered. “The
new tax regime doesn’t require me INCOME HEAD CURRENT SUGGESTED
to make any tax-saving investments
or provide proof of rent payments,” Salary 4,80,000 4,80,000
he says. TaxSpanner estimates that
Dearness allowance 2,40,000 2,40,000 Reduce this taxable
Tomar can save more than `52,000 in portion of the pay
tax if he stays with the old tax regime, Special allowance 6,35,328 5,87,328 package.
opts for the NPS benefit offered by his
company, and invests in the pension Fuel reimbursement 40,000 40,000
scheme on his own as well.
As a first step, Tomar should inform Meal coupons 24,000 24,000
his company that he wants to opt for
Newspapers and periodicals 6,000 6,000
the old tax regime. Several deductions
available to him will not be considered Telephone reimbursement 18,000 18,000
under the new regime. He lives in a
rented house, is repaying an education LTA 72,000 72,000
loan, has bought medical insurance
for himself and his mother, and can Employer's contribution to Provident Fund 21,600 21,600 Up to 10% of basic
invest more under Section 80C. These put in the NPS is tax-
will not be eligible for deduction in the
Contribution to NPS under Sec 80CCD(2) 0 48,000 deductible.
new tax regime. If he claims the full
TOTAL 15,36,928 15,36,928
`1.5 lakh deduction under Section 80C,
his tax will reduce by about `30,000.
Next, he should opt for the NPS ben-
efit from his employer. Under Section
80CCD(2), up to 10% of the basic salary
put in the NPS on behalf of the em- INCOME FROM OTHER SOURCES
ployee is tax-free. If his company puts
`4,000 (10% of basic) in the NPS every Interest 6,000 0 Avoid fixed
deposits and go for
month, his tax will reduce by almost Rent 0 0 debt funds instead.
`10,000. Another `10,400 can be saved
if he invests `50,000 in the NPS on his Capital gains 0 0
own under Section 80CCD(1b). At 26,
TOTAL 6,000 0
Tomar should put the maximum 75%
of the corpus in equity funds. All figures are in `

Tax-saving investments Denotes suggestion to increase Denotes suggestion to reduce

INVESTMENT CURRENT SUGGESTED

OPTION (`) (`)
Invest in ELSS
Provident Fund 21,600 21,600 funds under
Section 80C to
ELSS 0 1,20,000 save tax.
Sanjay Tomar’s tax
Life insurance 14,000 14,000 Consider
this new tax- TAX ON TAX ON TOTAL TAX SAVED WRITE
saving option. TAX ON OTHER CAPITAL TO US
`52,939
NPS under Sec 80CCD(1b) 0 50,000 SALARY INCOME GAINS
TOTAL ADMISSIBLE 35,600 2,00,000
FOR HELP
CURRENT
PER YEAR Paying too much

Other deductions
tax? Write to us
`1,37,663 1,872 0 at etwealth@
EXEMPTION OR CURRENT SUGGESTED `1,39,535 TAX RATIO timesgroup.com with
‘Optimise my tax’
DEDUCTION (`) (`) (Total tax as % of annual income)
as the subject. Our
HRA exemption 1,20,000 1,20,000 SUGGESTED EXISTING SUGGESTED experts will tell you
how to reduce your
`86,596 0 0 tax by rejigging your
Education loan interest 60,000 60,000
9.0% 5.6% pay and investments.
Medical insurance 23,500 23,500 `86,596
TOTAL ADMISSIBLE 2,03,500 2,03,500
 NG 3.7 PubDate: 25-12-2023 Zone: ETWealth Edition: 1 Page: ETWDP47 User: manish.kumar10 Time: 12-22-2023 19:48 Color:

mutual funds
The Economic Times Wealth December 25-31, 2023 23

PORTFOLIO

Early retirement possible

DOCTOR
Not many

with minor hike in SIPs investors

BCCL
know
whether
Amit Sareen is saving for his children’s education and retirement. Here’s what the doctor advises: they have
invested in
1 2 3 4
PORTFOLIO the right
BUY HOLIDAY HOME FIRST SON’S EDUCATION SECOND SON’S RETIREMENT INCOME:
CHECK-UP 2 years 3 years EDUCATION: 5 years 6 years funds and if their
GOALS

Has been investing PRESENT COST: `80 lakh PRESENT COST: `20 lakh PRESENT COST: `25 lakh CURRENT NEED: `4.4 crore fund portfolio is on
(`1.5 lakh a month)
in a mix of equity, FUTURE COST: FUTURE COST: FUTURE COST: track. The Portfolio
hybrid and debt `91.6 lakh `26.62 lakh `40.26 lakh CORPUS NEEDED: `6.6 crore
funds for the past
Doctor assesses the
8-9 years. AMOUNT EXISTING RECOMMENDED ACTION NEW
health of the fund
INVESTMENT
Regular investment INVESTED (`) SIP (`) SIP (`) portfolio, examines the
and aggressive al-
1 Fixed deposits 1,05,00,000
Use fixed deposits to buy holiday home. Keep
0 remaining balance as emergency fund. 0
schemes and their
location have
helped build a size- suitability with regard to
able corpus. This aggressive hybrid fund has performed well.
ICICI Pru Equity and Debt 6,13,630 0 Continue holding it. 0 the goals and, if
Most funds in the required, recommends
portfolio are good Fund has underperformed. Start systematic transfers
2 Aditya Birla SL Equity Advantage 5,92,358 0 to Aditya Birla SL Short-Term debt fund. 0 corrective measures. The
and should be con-
tinued. This new large- & mid-cap fund has not done too well. advice given is based on
Some underper- Bandhan Core Equity 7,44,186 0 Start systematic transfers to Bandhan Banking & PSU 0
debt fund. the performance of the
forming schemes
need to be dumped. funds, the risk profile of
Kotak Bluechip 5,75,451 15,000 Continue SIPs in this outstanding large-cap fund. 15,000
Early retirement at the investor as well as
55 requires a big his financial goals.
3 Kotak Emerging Equity 6,72,500 0 This mid-cap fund has done well. Continue holding it. 0
corpus.
Rental income from
Canara Robeco Bluechip Equity 5,51,058 0 Hold this stable large-cap fund for the long term. 0
holiday home can Assumptions used
support retirement.
This large- and mid-cap fund has slipped. Switch
in the calculations
Too little in fixed Canara Robeco Emerging Equities 6,12,517 15,000 corpus and SIPs to Franklin India Flexicap. 0
income. Start a PPF INFLATION
account to give sta- Restart SIPs of `15,000 in this outperforming flexi- Education For all
Flanklin India Flexi Cap 6,41,190 0 15,000
bility to portfolio
cap fund. Hike amount by 10% every year. expenses other goals
and build tax-free This is an outstanding value fund. Continue SIPs and
corpus. ICICI Pru Value Discovery 5,26,933 10,000 hike amount by 10% every year. 10,000
10% 7%
Buy term life insur-
ance of at least `2 ICICI Pru Equity and Debt 6,13,630 0 0 RETURNS
Balanced funds lend stability to portfolio. Hold these
crore to safeguard Equity funds Debt options
hybrid funds for the long term.
all financial goals. Kotak Balanced Advantage 8,12,460 0 0

Continue holding this stable flexi-cap fund for long

12% 8%
Kotak Flexicap 8,27,526 0 term. 0

Note from Nippon India Small Cap 4,40,676

Small-cap funds are volatile. Consider shifting corpus
20,000 and SIPs to Nippon India Large Cap for stable returns. 0 PORTFOLIOS
the doctor ANALYSED BY
Child’s education Start SIPs of `20,000 in this large-cap fund. Hike SIP
4 Nippon India Large Cap 0 0 amount by 10% every year. 20,000 RAJ KHOSLA,
goal is close. Re- Managing Director
duce risk by grad- and Founder,
This is an outperforming fund. Continue SIPs and
ually shifting to Parag Parikh Flexicap 9,31,989 15,000 increase amount by 10% every year. 15,000 MyMoneyMantra
fixed income.
Continue SIPs in this stable mid-cap fund. Increase
Don’t invest in too
many funds. A
PGIM India Midcap Opportunities 6,04,793 15,000 amount by 10% every year. 15,000
WRITE
mix of 6-7 funds
SBI Focused Equity 9,86,725
This flexi-cap fund has given stable returns. Continue
10,000 SIPs and hike by 10% every year. 10,000
TO US
is enough for di- FOR HELP
versification.
Continue holding this outstanding mid-cap fund for If you want your portfolio examined,
SBI Magnum Midcap 6,39,705 0 the long term. 0 write to [email protected]
Review invest-
with ‘Portfolio Doctor’ as the subject.
ments and rebal-
Mention the following information:
ance at least once Bharat Bond ETF - April 2030 3,89,682 0 Hold this debt ETF for stable tax-deferred returns. 0
 Names of the funds you hold.
in a year.
 Current value of the investment.
Reduce risk when Open a PPF account and start SIPs of `12,500 to build  If you have SIPs running in any
PPF 0 0 a tax-free corpus. 12,500
of them.
goal is near so  The financial goals for which you
that you don’t Continue contributing to this scheme. Don't withdraw invested.
miss the target. Provident Fund 1,16,30,000 20,000 before retirement. 20,000  How much you need for each
financial goal.
, The goals can be reached using the mutual  How far away is each goal.
TOTAL `3,39,07,009 `1,20,000 funds marked in the same colour. `1,32,500
 NG 3.7 PubDate: 25-12-2023Zone: ETWealthDelhi Edition: 1 Page: DETWDPBP User: manish.kumar10 Time: 12-22-2023 19:53 Color:

your feedback & more...

24 The Economic Times Wealth December 25-31, 2023

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.
Apropos of the story ‘Irdai proposes cap that one must stay in shape both physically

Optimistic outlook
on life insurance surrender charges’, I and financially to face a crisis. However, na-
appreciate the step proposed by the regu- ture is relentless sometimes, leaving people
lator for the betterment of the customer. in utter despair. For instance, thanks to the
Participating and non-participating life The cover story ‘Stocks to buy now’ was an recent floods, a power cut for two days in
insurance products have low surrender insightful read. The story adeptly captures many parts of Chennai threw normal life out
values and customers often suffer huge the essence of the current economic pulse, of gear. History is repeating itself, but do the
losses if they decide to discontinue. After highlighting the Nifty 50’s stellar perfor- governments learn anything from these?
spending two decades in the life insur- mance. The assessment of global factors, S. Ramakrishnasayee
ance industry, I believe the changes including the favourable cues from the US,
proposed by the regulator can be a game- declining crude oil prices and softening Apropos of the story ‘Alternative play for
changer for the sector. It is likely to attract US bond yields, underscores the market’s small caps?,’ I feel the Quality 50 Small-cap
more customers to buy insurance prod- robustness. With an optimistic outlook for index is a good alternative to the 250 Small
ucts without the fear of loss on surrender- 2024, the story advises investors to navi- Cap index and mutual funds due to lower
ing these. gate with caution. drawdowns, minimal expense ratios and
Mitesh Mehta Vivek comparative returns. However, it is not
advisable to go for lump-sum investments
Uma Shashikant’s column ‘Lessons from a during the current small-cap bull rally.
calamity’ was a soulful expression of what The SIP mode, after a significant correc-
salvage our financial losses in the toughest risk-free. Mutual funds can increase the
one feels during an ordeal like the Chennai tion in small caps, will create enormous
of times. value of your investments like no other
floods. It also had lessons on insuring our wealth for retail investors.
Vinod Johri instruments in the long run. They also
movable and immovable assets. Sadly, we free you from regular fund management Prashant Shivdas
lack sensitivity towards the underprivi- Like all securities, mutual funds are sub- so that you can focus on other essential
leged. The indiscriminate construction on ject to market or systemic risk. There is no financial tasks. Dhirendra Kumar’s column ‘Protect your chil-
water bodies and fragile lands is an open in- way to predict whether a given asset will M.R. Jayanthi dren from covert coercion,’ was an enlighten-
vitation to devastation. Let us not forget the increase or decrease in value. Since the ing read. To this day, these facts about money
recent tragedies of Joshimath and Silkyara market cannot be accurately predicted or Uma Shashikant’s column ‘Lessons from a are not included in the school curriculum.
tunnel in Uttarkashi. Insurance can help completely controlled, no investment is calamity’ made for a very good read. It is true Sanjeev Sabharwal

MOST LOANS ARE TAKEN FOR PHONES, APPLIANCES

One in two would prefer to take loans online, states a recent survey by Home Credit India.

Online
44% borrow for phones, 51%
1 in 2 prefer 29%
home appliances
online mode
POS/ Bank Over a call

Expanding an existing/
18%
starting a new business to take loan,
House renovation/ 19%
To purchase
construction but 52% went
smartphone/
home appliance 5% to bank/POS 31%
44% 19% Buying
last year 52%
car/ two-
12% wheeler
Preferred medium
to take loan
Medium for loan
taken last year

Education loan 4%
4%
Marriage
in family Nearly 50% would E-commerce plat-
like to use embed- forms top choice for
Gen Z biggest online shoppers, bankers 59% got loan offers ded finance embedded finance
No 10%
Figures in % Overall Gen Z Millennials Gen X on Whatsapp; 24% Yes 31% Movie
60%
E-commerce
63 54 54 62 54 trust these offers 50% ticket apps portals
50 49 Maybe 15%
48 Food order-
44 43 41 19% 17%
ing apps
Travel apps
36
Metro
59% 49% 8%
EMI cards EMI card
Digital lending apps
Tier 1
65% preferred companies 3%
Other payment

Tier 2
medium for 20% cards

42% taking loan Bank credit cards 22%

None of the above
Online Internet Mobile/app-
shopping banking based banking Source: Home Credit India’s How India Borrows Survey 2023 was conducted among 1,842 borrowers in the
18-55 age group, across 17 cities.

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: [email protected]; 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
this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held 002, Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP.
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times Regd. Office: Dr Dadabhai Naoroji Road, Mumbai 400 001. Editor: Babar Zaidi (Responsible for selection of news under PRB Act). © Repro-
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 duction in whole or in 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