THE ECONOMIC TIMES SHOULD

YOU LIVE
ON RENT
OR OPT FOR
CO-LIVING?
[Link] | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | January 30-February 5, 2023 | 24 pages | `8

Ask yourself this

BEFORE YOU
BUY INSURANCE
Answer our questions accurately so that what should
ARE YOU
GETTING THE
MOST OUT OF
VALUE FUNDS?
P5
be the lynchpin of your finances doesn’t become a
millstone around your neck. P2

THE DEFENCE
SECTOR STOCKS
WORTH MORE
THAN A LOOK
P6

EMPOWER
YOUR WOMEN
DOMESTIC
HELPERS
P8
 cover story
02 The Economic Times Wealth January 30-February 5, 2023
PHOTOS: GETTY IMAGES

Ask yourself this

BEFORE
YOU BUY
INSURANCE
Answer these questions accurately so that what
should be the lynchpin of your finances doesn’t
become a millstone around your neck.

By Babar Zaidi into a discontinuation fund and comes Mis-sold or mis-bought?

L
back to the policyholder only after the
ife insurance is the most im- 5-year mandatory lock-in ends. India has very low insurance persistency. By the fifth year, almost
portant financial product be- Why do so many people bite the bullet 60% of the policies issued either lapse or are surrendered.
cause it can safeguard all goals and terminate policies bought just 1-2
of an individual. But it is also years ago with great expectations? Why
69 % of policies renewed

the most missold and the least do they pour hard earned money into an
understood investment. The insurance investment that ends in the junkyard
regulator IRDAI receives more than 1.5 within a year? Some buyers quit because
59.6
lakh complaints every year and persis- they can’t afford to pay the premium 54.8
tency data indicates that nearly three of every year. Others realise they can get 50.2
every 10 policies issued are not renewed better returns elsewhere. Some unfortu-
after the first year. Persistency is the nate souls also discover they have been
percentage of policies still in force. In conned into buying insurance.
41.2
other words, almost 80 lakh of the rough- It’s easy to blame the agents for mis-
ly 2.8 crore policies issued every year fall selling the plans or the insurance compa-
by the wayside after the first year itself. nies for not taking action against errant
The persistency declines steadily over distributors. Agents are known to over-
the next few years and by the fifth year, state the benefits or provide selective in-
almost 60% of the policies would have ei- formation with impunity. Relationship
ther lapsed or surrendered (see graphic). managers at banks are guilty too. Their
For some insurers, the 61st month persis- high sales targets and fat commissions
tency was as low as 26% in 2020-21. on insurance products have turned them
If a traditional policy is closed before into salesmen.
three years, the entire premium paid They know that buyers don’t have any
goes up in smoke. Even after three years, proof of the verbal promises doled out in
the policyholder ends up paying surren- the sales pitch. MONTH 13 25 37 49 61
der charges and gets back barely 30-35% Though mis-selling is rampant, the
*Figures are average persistency of all life insurers in 2020-21 | Source: IRDAI
of what he paid. In Ulips, the money goes buyer too must share the blame for the

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 cover story
The Economic Times Wealth January 30-February 5, 2023 03

financial mishap. As a buyer, it is your

responsibility to understand what you
are getting into before you sign on the
cheque. With the tax planning season
in full swing, many people may have
firmed up plans to buy life insurance.
If you are one of them, this week’s cover
story will be useful. We have drawn up
a list of some fundamental questions
relating to your finances that you need
to ask yourself. Make sure you answer
these questions accurately so that the
lynchpin of your financial portfolio
doesn’t become a millstone around your
neck later.

DO YOU
1 NEED LIFE
INSURANCE?
Calculate your insurance needs
Life insurance is important, but do
The life insurance policy should replace the income of the individual, settle all
you really need it? The cover offered debts and provide for future expenses. Find out how much cover you need.
by the policy is meant to replace the
future income of the policyholder, the FAMILY’S LIVING EXPENSES
breadwinner. It is an absolute must
if there are people dependent on your EXAMPLE YOUR FIGURES
income, such as your spouse, children,
parents and even dependent siblings. A Monthly household expenses `50,000
But if you are not married and nobody
depends on your income, you don’t need B Multiply A by 12 to annualise the amount `6 lakh
an insurance cover. Also, if you have
built substantial assets and your spouse
C
Multiply B by the number of years family will `90 lakh (if required
also earns enough to sustain the family need this income (this reduces as you age) for 15 years)
without you, then there is no need to buy
a life insurance policy. Lastly, retirees D Insurance required `90 lakh
who have stopped working also don’t
need life insurance. Death will not have
any financial impact on the family so
OUTSTANDING DEBTS
there is no need to insure yourself be-
yond your working years.
E Home loan `45 lakh
F Vehicle loan `5.5 lakh
IS THE COVER
2 ADEQUATE?
G Personal debts `1.5 lakh

H Insurance required `52 lakh

Next, find out if you are buying adequate
life cover. One broad approximation is ONE-TIME FUTURE EXPENSES
about 8-10 times your annual income.
But this is a broad approximation and I Son’s education `25 lakh
may not give a true picture of your in-
surance needs. The life insurance cover J Daughter’s education `25 lakh
should be big enough to generate income
that can take care of the expenses of the K Children’s marriage `50 lakh
family till your dependents are self-suf-
ficient and settle all outstanding debts, L Insurance required `1 crore
especially big-ticket home loans. If an
individual is paying a chunky EMI and
something untoward happens to him,
EXISTING ASSETS
the bank will move in and his family
will be left without a home. M EPF, PPF and fixed deposits `42 lakh
Apart from this, the insurance should
also provide for crucial financial goals, N Mutual funds `12 lakh
such as a child’s higher education and
marriage. These are one-time expenses
O Gold and property `50 lakh
and their present cost should be taken
into account to calculate the cover. P Total assets `1.04 crore
Don’t be lulled into thinking that a
cover of `1 crore is enough. It may seem NET INSURANCE REQUIRED
like a lot of money right now, but infla-
tion will reduce its purchasing power Q Add D + H + L `2.42 crore
in the long run. Even if you assume 9%
returns and 7% inflation, an inflation- R Subtract P from Q `1.38 crore
adjusted monthly withdrawal of `1 lakh
will deplete the entire corpus in less S Total insurance cover required `1.38 crore
than 10 years. Use the table on the right
to find out how much cover you need.

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 cover story
04 The Economic Times Wealth January 30-February 5, 2023

CAN YOU
3 AFFORD THE
Which term plan is best for you?
PREMIUM?
Given that life insurance exudes an aura of Insurers have crafted variations of term plans to suit different
protection and long term security, it is com- buyers and situations. Find out which suits you best.
mon for people to get carried away and com-
mit more than they can afford when they
sign up for a policy. But reality bites when
the next year’s premium is due. That’s Increasing cover plan
when many policyholders decide to cut
their losses and quit. The persistency data
The life cover increases with
is a harsh reminder of how hard earned time to hedge against inflation.
money goes down the drain. One also doesn’t need to buy
Before you buy, make sure you can afford more insurance later in life as
the premium of the policy for the full term. responsibilities grow. However,
One rudimentary calculation is that the the increase in cover may not
life insurance premium should not take always be enough to account
up more than 5% of your net income. That for the higher expenses later in
means a person with an annual income of life. In many cases, an addition-
`10 lakh should not be paying more than al cover may be required.
`50,000 premium in a year. Don’t factor in
future income when you do this calcula- Single premium plan
tion. These plans require a one-time
lump sum payment. They suit
ARE YOU people who don’t want to make mium paying term is over. The is virtually nothing. It’s better
4 BUYING ONLY a multi-year commitment, have
a lumpy cash flow or tend to
premium is higher than that of
a regular plan, these plans suit
to pay the lower premium of a
regular plan.
TO SAVE TAX? be careless about payments. people with higher investible
ET Wealth has steadfastly maintained that Though costlier than regular surplus in initial years. Staggered payouts
life insurance is the worst way to save tax. premium policies, the buyer
These plans stagger the pay-
Yet, instead of being seen as a protection doesn’t need to worry about Return of premium ment over 10-15 years. The
tool, life insurance continues to be seen as lapsation due to non-payment
For people who think that buy- family of the policyholder
a tax-saving device. In fact, the January- of premium.
ing a term plan is a waste of gets a monthly payment for
March quarter is the busiest period for in-
Limited payment term money, insurers have designed 10-15 years. Some plans even
surance distributors because close to 70%
policies that return the entire increase the payment by 10%
of the business is transacted during these These are a variation of single
three months.
premium at the end of the every year to account for
premium plans. Instead of term. But this feature inflation. This is a very useful
Insurance is a bad choice as a tax saving one lump sum payment at the
instrument because it requires a multi- pushes up the premium of the feature given the low level of
beginning of the term, the financial literacy. A family may
year commitment. Tax saving investments
premium payment is staggered policy considerably. The infla-
under Section 80C are no different from tion adjusted value of what not be able to handle the lump
over 5-10 years. The cover sum amount received on death.
regular investments so one should apply
continues even after the pre- you get at the end of the term
the same parameters to assess them. An in-
dividual’s priorities change over time. But
the insurance premium will force him to
continue putting money in the policy even
though he may have other, more pressing
financial goals.
Many other investment options under Don’t get swayed by eats into the purchasing power of money.
As mentioned earlier, in 25 years, even a
goes the claim. Every year, about 2% of the
claims end up in the trash can. In 2020-21,
Section 80C offer better returns than life
insurance and at a lower cost. The PPF and
maturity value modest 6% inflation will reduce the pur-
chasing power of `30 lakh to less than `7
nearly 12,500 death claims for roughly `954
crore were rejected.
Sukanya Samriddhi Yojana have no costs Returns of insurance policies with a lakh. So, take inflation into account and One of the most common lies is about to-
at all, while ELSS mutual funds charge premium of `50,000 per year. understand the time value of money when bacco use. Tobacco use in any form pushes
only 2-2.5% and offer far better returns TERM investing in a long-term product. up the premium by 25-50%, so it’s quite
than insurance policies that yield barely The time value of money also comes into tempting to tick on No. But this lie will not
5-6%. More importantly, options such as 15 years 20 years 25 years play in term insurance plans with return go undetected. Insurance companies go to
ELSS, Sukanya and PPF offer flexibility of of premium. These plans give back the any length to find out if a policyholder has
MATURITY VALUE
investment wherein the buyer can invest entire premium paid if the policyholder lied in the application form, hidden facts
at any time of the year and any amount that survives the full term. Though it might or submitted fake documents. A panel of
suits his pocket. appear very lucrative, the money you get medico-legal experts scans the documents
back after 20-30 years would have lost a lot submitted with a claim for any discrep-

HAVE YOU of its value by then. ancy or attempt to mislead.

Remember, you will not be around to do
5 CALCULATED `12 lakh `20 lakh `30 lakh
HAVE YOU
the explaining if they ask about nicotine

THE RETURNS? RETURNS (%)

traces in the bloodstream. It will be your

FILLED IN nominee running around to get the sum

Insurance are long-term contracts of 20-
25 years. The power of compounding can
5.68 6.22 6.21 6 CORRECT
assured promised under the policy. The
small amount saved on the premium by
work wonders over such a long investing
horizon. Buyers tend to get carried away after 25 years might appear lucrative, but INFORMATION? furnishing incorrect information is not
worth the risk of jeopardising the insur-
by the enormous maturity value projected the returns work out to only 6.22%. Use an Withholding crucial information about ance cover.
by the insurance agent without calculat- internal rate of return calculator to find your health and social habits can have
ing the returns on an annual basis. For out how much your policy will yield. serious ramifications. If the insurer finds
instance, a policy with an annual premium The low returns are just one part of the out that a policyholder concealed informa- Please send your feedback to
etwealth@[Link]
of `50,000 and a maturity value of `30 lakh story. The other part is inflation, which tion that affected the risk to his life, out

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 mutual funds
The Economic Times Wealth January 30-February 5, 2023 05

Did your value funds. Rushabh Desai, Founder, Rupee

with Rushabh Investment Services,
observes, “Many funds tagged as ‘value’
are not pursuing a true-to-label value

fund miss the bus?

approach.” In fact, after facing several
years of underperformance, a few value
funds succumbed to the market’s prefer-
ences and diluted own value bias, suggests
Kumar. “Some value funds have got pres-
sured into moderating value skew. Those
Funds with diluted value bias have failed to make most of the current uptick. who have stuck to their guns are the ones
who made the most of the current uptick.”
This is also evident in the superior perfor-
mance of some diversified equity funds
that are not classified under the ‘value’
banner but run a value-conscious style.
Several prominent schemes from the sta-
bles of HDFC AMC are examples.
There are also variations in the ways
some fund managers play value. While
some prefer the deep value zone (cheap
valuations), others like to hunt for relative
value—when a stock is cheap compared
to industry peers or own historical valu-
ations. Kaustubh Belapurkar, Director,
Manager Research, Morningstar
Investment Advisor India, points out,
“Funds taking a deep value approach have
generally done better amid this turna-
round.” Similarly, value funds with a mid
and small cap tilt have delivered better
outcomes in this phase, compared to those
leaning heavily on large caps. Further,
some value funds occasionally take cash
calls as a tool to provide downside protec-
tion. But this ploy has not worked in their
favour. Kumar says, “Imagine you have

GETTYIMAGES
underperformed for years and at the very
moment when the value upswing happens,
the fund is leaning on cash. Missing out on
this initial uptick prevents the fund from
capturing the big opportunity.”
by Sanket Dhanorkar
Only a few value funds have Investors who have persisted with any

A
of these underperforming value funds
fter several years of lying coma-
tose, the value theme has made
delivered outsized returns expecting a big payoff are bound to feel ag-
grieved. Should you throw in the towel? “If
a strong comeback over the past Funds with a deep value approach have done better in turnaround. even after two years of value turnaround,
two years. This renaissance your fund is not in the game, there may be
has given due reward to patient Return since 1 October 2020 (CAGR) AUM (` cr) no point holding on,” says Kumar. Some
practitioners of this investing style. For like Desai feel investors consider persist-
investors in value funds, the endless wait ing with value offerings for a bit longer giv-
for healthy returns finally seemed to be en that value style is expected to do well as
over. But very few value funds have made long as there is slowdown in growth, high
the most of this turnaround.
On the surface, it is apparent that value- 40.1% 37.9% 36.3% 31.2%
inflation, higher interest rates and quanti-
tative tightening. A shift may only be war-
style funds have outperformed others in ranted if the fund has been struggling for
the recent past. Since 1 October 2020 till 31 more than 7-10 years, or underperforming
December 2022, value funds have clocked `7,635 `5,178 `826 `27,515 peers by a big margin. Else, he suggests
27.5% annualised returns, even as large giving the fund another 12-18 months to
SBI Contra IDFC Sterling Value Templeton ICICI Prudential
cap and flexi cap funds have fetched 21% improve its return profile.
India Value Value Discovery
and 22.5% respectively. However, a closer Generally, stick with funds which
Source: Value Research. Data as on 31 Dec 2022.
look reveals that it is only a handful of have displayed superior outcomes across
value schemes that have contributed to
the higher returns. SBI Contra leads the
27.5% 22.5% expected to make a killing. Arun Kumar,
Head - Research, FundsIndia, remarks,
multiple value cycles. Some of the stars of
current value upcycle have not coped as
way with 40% annualised returns. IDFC “In value investing, when the tide turns, well in the past (Templeton India Value,
Sterling Value and Templeton India Value Value funds Flexi cap funds the uptick tends to be very sharp and gen- IDFC Sterling). Few of the recent strag-
have yielded 38% and 36% respectively. average average erally ends up compensating for several glers (Invesco India Contra, UTI Value)
ICICI Prudential Value Discovery has vesting is a style where returns are lumpy years of underperformance in just over 1-2 have delivered better results earlier.
managed a healthy 31%. Outsized returns in nature. It can take a lot of time for the years.” But as the recent showing suggests, Funds like Nippon India Value, Invesco
in these four funds have propped up re- underlying value to unlock and translate this has not really materialised. So why India Contra, Kotak India EQ Contra, UTI
turns for the entire category. The remain- into returns. But when the swing towards have value funds failed to live up to their Value and ICICI Pru Value Discovery have
ing 13 funds have clocked more sober value does occur, returns usually come in billing? performed well across cycles. Chronic
returns ranging from 19% to 28%. a burst. During this window, the alpha gen- Experts suggest that many value offer- laggards include ABSL Pure Value and
Amid favourable conditions, this perfor- eration in value strategy is often quicker ings do not strictly adhere to the value Quantum Long Term Equity Value.
mance by most value funds seems under- and far greater than in any growth-orient- investing code. In fact, most take a blended
whelming. It is particularly disappointing ed fund. This is inherent to the return pro- approach, marrying value with growth
Please send your feedback to
in the context of the prolonged stretch of file of value strategy. So when conditions style of investing. This is evident in the
etwealth@[Link]
muted returns in the past. Now value in- turn in their favour, value funds would be high portfolio PEs reported in some of the

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 stocks
06 The Economic Times Wealth January 30-February 5, 2023

Improving sector
dynamics to support
defence stocks
Government support, higher defence expenditure,
robust exports and huge order books to drive
performance of defence companies in future.

by Sameer Bhardwaj

T
he government’s aim to
achieve self-reliance in the
defence sector has boosted
the share prices of defence
companies. Twelve listed
companies across private and pub-
lic domains delivered an average
return of over 58% in the past year.
Comparatively, the NSE 500 index de-
livered 1.5% returns during the same
period.
“The outlook of the defence sector
is positive given strong government
support that includes the creation
of a vendor ecosystem, increasing
domestic procurement for compo- aircraft, helicopters, missile systems,
nents, import list ban and increasing submarines, armoured vehicles, radars
GETTYIMAGES
defence expenditure as a percentage and communication systems.
of GDP,” says Amit Anwani, Research The gradual shift towards increasing
Analyst, Prabhudas Lilladher. indigenisation is visible across the three
Also, the country’s traditional and forces. According to a PIB release, the ex-
BHARAT DYNAMICS
UPSIDE
outdated fleet across the Army, Navy penditure on defence procurement from 12-month 1-year target POTENTIAL
and Air Force provides tremendous foreign sources has reduced from 46% to Current price (`)
forward PE price (`)
growth opportunities in terms of
modernisation and upgradation.
36% in the last four years between 2018-
19 and 2021-22. 22.9 930 1,075
15.5%
In October 2022, the Army chief The Aatmanirbhar Bharat Abhiyan
highlighted that domestic defence programme is expected to support India THE COMPANY MANUFACTURES and de- ANALYSTS’ RECOMMENDATIONS
contracts worth `8 lakh crore were in achieving self-reliance in defence signs underwater defence guided weapon BUY HOLD SELL
expected over the next 7-8 years. manufacturing. “With Atmanirbhar systems and its products include anti-tank
guided missiles, advanced lightweight
5 0 1
Several policy initiatives have been Bharat, the procurement of defence prod-
taken by the government in the past ucts by both public and private Indian torpedos, counter-measure dispensing
systems and infrared inference indicators. company due to its strong positioning
few years to encourage indigenous de- companies will increase. This will help in the missile sector. An Antique Stock
sign, development and manufacture of defence companies expand their top and The company has a robust order book,
which provides strong revenue visibility. Broking report that was released af-
defence equipment. The initiatives in- bottom lines,” says Sunil Damania, CIO, ter the second quarter results expects
clude Defence Acquisition Procedure MarketsMojo. The ordering pipeline is impressive as
large-size orders like Akash missile, Astra two-year earnings CAGR of 26% sup-
(priority to the procurement of capital The sector also presents robust export ported by strong demand for missiles
items from domestic sources), liberal- opportunities to domestic players. With MK II, QRSAM, MRSAM are expected to be
finalised over the next two or three years. in India and a huge export market.
isation of FDI policy allowing 74% FDI most foreign players depending on China
under the automatic route, simplifica- and Russia for defence equipment, the The negative missile import list re-
tion of industrial licensing process ongoing Russia-Ukraine war and China leased by the government will benefit the
and earmarking of 25% of R&D budget plus one provides strong growth oppor-
for industry-led R&D. tunities to Indian companies. In 2021-22,
The initiatives helped in in- India’s arms exports stood at `11,607 Bharat Dynamics
creasing the share of domestic crore that was six times higher than 2014, 202.61
according to an IBEF report. The govern- 100
procurement in total procurement.
According to data compiled from a ment aims to achieve an export target of
Nifty 500
PIB release, domestic procurement `36,500 crore ($4.8 billion) by 2025.
was at 54% of the total procurement 101.47
in 2018-19, which jumped to 68% How are stocks placed?
in the current financial year. The The order book of defence companies
initiatives aimed at major domestic is robust, and the earnings quality is
defence production ecosystems such expected to improve in future. “Defence
as weapons, ammunition, fighter stocks are a must-have for any investor 21 Jan 2022 23 Jan 2023

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 stocks
The Economic Times Wealth January 30-February 5, 2023 07

BHARAT ELECTRONICS HINDUSTAN AERONAUTICS

UPSIDE UPSIDE
12-month Current 1-year target POTENTIAL 12-month 1-year target POTENTIAL ANALYSTS’ RECOMMENDATIONS
Current price (`)
forward PE
22.3
price (`)
102
price (`)
116
14.1% forward PE
17.9 2,524
price (`)
2,972
17.7% BUY
7
HOLD
0
SELL
1
ANALYSTS’ RECOMMENDATIONS THE AEROSPACE and defence company is primarily
BUY HOLD SELL engaged in designing and developing fighter, train-
100
19 2 3 ing and transport aircraft, civil and military helicop-
ters. It is well placed to leverage opportunities as it
is backed by a strong order book and a promising Hindustan Aeronautics
IT DESIGNS, DEVELOPS and A Prabhudas Lilladher
supplies electronic equip- report that was released in order pipeline of more than `1.2 lakh crore. It is also 178.01
ment and systems for the October last year after the focusing on exports to diversify its revenue base.
defence sector and some second quarter analyst call To expand its footprint in engine technology for Nifty 500
rockets under the ISRO program, it has commenced
of its products include expects revenue and PAT 101.47
land-based radars, naval CAGR of 16.6% and 19.1% Cryogenic Engine Manufacturing Facility in Banga-
systems, digital warfare sys- respectively from 2021-22 lore. The company’s diversified revenue mix, debt-
tems, weapon systems and and 2024-25. free status, strong working capital cycle and robust
batteries and simulators. The brokerage house re- cash reserves are key positives. A Sharekhan report
The company has a healthy mains positive on the com- expects revenue and PAT to grow at a CAGR of 9.5%
order pipeline comprising pany’s long-term growth and 20% respectively over 2021-22 and 2023-24. 21 Jan 2022 23 Jan 2023

several orders from defence story given its strong order

and non-defence segments. backlog and order pipeline,
Some of the defence MoU in hydrogen fuel cells, MTAR TECHNOLOGIES
orders include Akash Prime, diversification in newer UPSIDE
12-month 1-year target POTENTIAL ANALYSTS’ RECOMMENDATIONS
Himshakti EW, Rudra radar, business verticals like Current price (`)
forward PE price (`)
AMC order for Akash and
Automated Air Defence
medical equipment, EV bat-
teries and focus on export 34.3 1,681 2,228
32.6% BUY
4
HOLD
0
SELL
0
Control & Reporting System. markets.
THE PRECISION ENGINEERING company caters to 100 Nifty 500
Bharat Electronics
segments like clean energy, space and defence,
147.22 101.47
nuclear and oil & gas. It supplies components
and assemblies such as liquid propulsion rocket
engines, cryogenic engines, base shroud and fin
assembly and various missile parts. It manu- MTAR Technologies
100 factures sheet metal used in nuclear plants and 76.80
defence products. Most of its business segments
Nifty 500
require high precision, technical know-how and
101.47 investments which creates high entry barriers
and provides a strong competitive advantage.
MTAR has long-standing relationships with the
Department of Atomic Energy and NPCIL. Its other
customers include DRDO, Hindustan Aeronautics,
Bharat Dynamics and Rafael. An Edelweiss report
estimates MTAR’s space & defence business to 21 Jan 2022 23 Jan 2023

expand at 18% CAGR over 2021-22 and 2024-25 Current price as on 23 January 2023. MSCI India
21 Jan 2022 23 Jan 2023 compared to 15% between 2018-19 and 2021-22. Index 12M forward PE: 21.2 times. Source: Refinitiv.

looking to protect their portfolio against Solutions, Sanctum Wealth. sify its revenue streams, the company is pany’s growth prospects as the defence
geopolitical and domestic threats. Not The featured four defence stocks have planning to move into the field of underwa- electronics segment is expected to provide
only do they offer the potential for steady decent analyst coverage and are currently ter equipment and platform, marine equip- an opportunity of `1.5 lakh crore in the
dividend growth, they also provide oppor- offering double-digit share price potential. ment, heavy engineering equipment and next four to five years led by the armed
tunities to invest in environment friendly There are some other companies in the offshore platforms. An ICICI Direct report forces’ requirement for advanced systems.
practices and cutting-edge technology,” defence sector that are expected to per- expects the company to deliver earnings
says Suman Bannerjee, CIO, Hedonova, an form well. However, due to a lack of good CAGR of 24% in 2021-22 and 2023-24 led by Mishra Dhatu Nigam
US based hedge fund. analyst coverage, there are no indicative 18% revenue CAGR (on better execution) The company manufactures special steel,
Anwani from Prabhudas Lilladher feels numbers available for the future share and sustainable margins. super alloys and titanium alloys and ca-
defence stocks with operations in the man- price return potential. The following are ters to niche end-user segments in space
ufacturing of equipment for the Navy and three such companies: Data Patterns and defence. It had a strong order book of
Air Force are likely to offer decent returns The company is a vertically integrated `1,501 crore at the end of September 2022.
over the medium to long run. Mazagon Dock Shipbuilders defence and aerospace electronics solu- The management is targeting revenue of
However, the valuations of most of the The company builds and repairs warships tions provider. It is building products in `1,000 crore in 2022-23 aided by a healthy
defence companies are high despite some and submarines for the Indian Navy and technology-intensive domains like radars, demand environment from both defence
correction post a sharp run up. Analysts has a strong order backlog of `42,000 crore. electronic warfare, satellites, navigation and space segments.
have flagged issues such as regulatory The company is well placed to benefit and control systems and communication. The company has a strong financial
delays that can impact stock performance from the Navy’s major procurement plans The company’s order book stood at `840 profile with healthy liquidity, negligible
in the future. over the next 3-4 years. Some of the major crore at the end of September 2022. The debt and attractive return ratios. An ICICI
“The valuations have already gone up Navy projects include next-generation management expects large order inflows Direct report expects the consolidated top-
and one needs to be careful about tim- destroyers, next-generation frigates, con- worth `2,000- 3,000 crore over the next 3-4 line to grow at 18.8% CAGR while EBITDA
ing entry into such stocks. Also, given ventional submarines and next-generation years and remains confident of delivering and PAT are expected to grow at a CAGR of
that changes in requirements or delay in corvettes. The cost of these projects is `1.8 25- 35% sales growth. 16.8% and 17.3 respectively between 2021-
procurement and approvals often result lakh crore. According to a report from Way2Wealth, 22 and 2023-24.
in prolonged development periods and de- The execution is expected to pick up, with the continuation of indigenisation ef-
liveries, this can weigh down on the stock led by indigenous manufacturing of large forts, future procurement will see a large
Please send your feedback to
performance of companies in the sector,” platforms (submarines, surface warships) portion of defence electronics sourced lo-
etwealth@[Link]
says Manish Jeloka, Co-head of Products & and the associated sub-systems. To diver- cally. This will provide a boost to the com-

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 financial planning
08 The Economic Times Wealth January 30-February 5, 2023

WEALTH
WHINES
Empower your women
domestic helpers
Money &
Relationships

Lend them a helping hand by making them more financially literate and
providing financial assistance when they need it, says Riju Mehta.

D
omestic helpers in our country es, credit, insurance as well as pensions. through their banks and monitoring these
form a large, unorganised seg- You can also help with getting their photos funds till the time it is continued. Also in-
ment with high indigence and and processing paperwork at the bank. form them about the functioning of other
poor financial literacy. In an An important step is explaining the instruments, such as fixed deposits, recur-
earlier article, we had talked functioning of various financial instru- ring deposits and PPF, where they can lock
about the various government schemes ments and services, be it the usage of debit their money for the long term. Locking in
that can empower and enable them, but card and ATM, health and life insurance, the money is particularly important if the
there is a lot more that you can do to in- pension schemes, or other investment av- husband provides no financial support or
crease their financial literacy, improve enues. Explain to them how these can ben- forcibly takes the wife’s salary to fund his
their future security and assist them in efit them, check their eligibility for each, addictions.
their money dilemmas. Women helpers and help them buy these online if they are If they have a girl child, suggest the
are especially vulnerable, more so if they interested. Sukanya Samriddhi Yojana to fund her
are the only income earners, single moth- The three things you need to stress marriage or education once she turns 18
ers or fail to get much financial support upon, especially to women workers, is the or 21, respectively. The minimum annual
from their husbands. Here are some of the need for investment, health insurance and deposit for this scheme is only `250, and
measures that can help them. pension. Explain why investment needs earns a high interest rate of 7.6%.
The first step is to get their Aadhaar, to be done in a disciplined manner for the You can also try to get them to avail of
PAN or voter ID cards made in order to fa- long term for their children’s education the Atal Pension Yojana if they are 18-40
cilitate the opening of bank accounts and and weddings, and to secure their own years of age, as it can guarantee a mini-
to benefit from any government schemes finances in old age. By calculating how mum pension of `1,000-5,000 a month after
for which they may need identity proofs. much money they will accumulate over a they turn 60 years of age.
The next step is to ensure they have a bank given term through a bank account and Another important measure is to con-
account, and if they don’t, you can open a other investment avenues, explain how vince them to get health insurance, which
ANIRBAN BORA

zero balance account for them. A savings money can grow faster with mutual funds. can eat up most of their savings if they
account under the Pradhan Mantri Jan They can use the option of micro-SIPs so are hospitalised. The Ayushman Bharat
Dhan Yojana can help them avail of vari- that they can invest small amounts. You Yojana offers a family cover of `5 lakh,
ous financial services, such as remittanc- can take charge of starting the e-mandate and is free as the premium is borne by the
central and state governments. It is for
families with monthly income of less than
IF YOU HAVE A WEALTH WHINE, WRITE TO US... Disclaimer: The advice in this column is not from
a licensed healthcare professional and should `10,000, and you can buy it for them online,
All of us have been in a financial dilemma when it comes to relationships. How do you say no to a friend not be construed as psychological counselling, helping them with the documentation,
who wants you to invest in his new business venture? Should you take a loan from your married brother? therapy or medical advice. ET Wealth and the
Are you concerned about your wife’s impulse buying? If you have any such concerns that are hard to writer will not be responsible for the outcome of
etc. You can also download and print the
resolve, write in to us at etwealth@[Link] with ‘Wealth Whines’ as the subject. the suggestions made in the column. Ayushman card that they will need to be
able to use it.

READERS’ QUERIES

Q My parents’ registered will lists me as a successor and joint owner of their ancestral
property. Can my brother still stake a claim to this property? — Vinod D.

Assuming that your parents are Hindu and on the basis of the facts shared, if an ancestral property is divided, transferred and registered in the name of the
parents or successors, then the property transforms in character and becomes the absolute property of the successor. The absolute owners can dispose of the
same property in whatever manner they wish. However, since your brother is a class I legal heir, he can stake a claim or challenge your parents’ will.

Recently, my father’s elder demat accounts? What will be the as on the date of death of the testator 3) Yes, the executrix should file the
Q
brother passed away. His wife
is also no more and he had no
reckoning date for the valuation, his
date of death or the date on which the
shall be considered for distributing
it equally among the three of you.
income tax return as a representative
assessee for the income earned by the
children. He has left behind a will, shares are credited to our respective However, for the purpose of accounting deceased till the date of his death. All
making me the executrix for the same. accounts? or taxation, the original cost to the testa- taxes are to be paid out of the estate of
According to the will, everything that 2. In the event of our selling the shares tor shall be considered. the deceased.
belonged to him has to be divided at a later date, how will the capital 2) If you sell any of these shares at a
equally among myself, my brother gains be calculated? later date, the capital gain shall be cal-
and my cousin, who is the only son of 3. Who has to file the income tax re- culated as given below:
my father’s younger brother. Among turn for the income earned by him a) Sale consideration, less the cost of Raj Lakhotia
Founder, Dilsewill
the movable properties left behind during the financial year up to the date acquisition to the original holder, that
are shares, mutual funds and cash in of his death? As the executrix, is it my is, the testator; less any cost associated
bank accounts. Please help us with the duty to file the IT return? with the transfer.
following: — K. Vidya The original cost to the testator shall Disclaimer: The responses are based on limited
1. What is the value that we should Here’s how you can make calculations be divided into three parts, to be taken facts provided by the queries. It is advisable to
consult a legal practitioner after presenting full
consider when we get the shares about the property left by your uncle: as the cost for each one of you for your facts and documents. Responses should not be con-
and mutual funds transferred to our 1. The value of shares and mutual funds computation. sidered as legal advice in any manner whatsoever.

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 guest column
The Economic Times Wealth January 30-February 5, 2023 09

IPOs: When investors

outgreed each other
Some IPOs should never have happened in the first place. Those who
invested in these only have themselves to blame, says Dhirendra Kumar.

S
ince late 2021, when the parade of
IPOs of the ‘New Age Technology
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH Companies’ started, there has been
a constant stream of investors com-

money plaining about these companies on

social media. The theme of complaints is al-

mysteries ways the same, that investors who invested in

these IPOs lost money. I find myself without
much sympathy for these investors. Before
the social media mob sets after me, let me
clarify. I have been extremely critical of these
companies’ IPOs. However, I am just as criti-
cal of those who invested in these IPOs and
The moment you are now complaining.
start reading about These are two groups of people who were
these IPOs, the trying to ‘outgreed’ each other and one side
rotting smell of their won. It’s hard to have sympathy for either.
GETTYIMAGES

Here’s what I mean by ‘outgreed’. The IPOs

zombie financials
were unjustifiably priced. In fact, for the for-
fills the room. But mer digital stars like Paytm, Nykaa, Zomato
there are many et al, the IPOs themselves were unjustified.
other investors These companies relied on IPO investors’ will make any difference. When you fish out disclosure etc can be ignored. Far from
whose noses are greed being stronger than their good sense. some month-old food from the back of the it. IPO companies and IPO managers are
blocked by the Somewhere, the music stopped. That’s the fridge, do you have to run an elaborate lab always trying to stretch the boundaries of
greed of finding the way it is. test to decide whether you should eat it? No! what can be done and they must be kept on a
There were any number of people, both in One sniff and into the garbage bin it goes. tight leash. However, the problem of people
greater fool.
the legacy media and on social media, who Similarly, for those who don’t invest, none of investing in obviously overpriced IPOs and
pointed out that these IPOs were not worthy of these IPOs pass even a cursory ‘smell test’. then crying buckets about it is something
investments. I myself wrote in this newspaper The moment you start reading about these else entirely, and is probably not amenable
and on Value Research Online. It was crystal IPOs, the rotting smell of their zombie fi- to any technical or regulatory solution.
clear that these were classic ‘greater fool’ in- nancials fills the room. But there are many
vestments. Punters went looking for a greater other investors whose noses are blocked by Please send your feedback to
fool but all they found was a mirror. Hard luck. the greed of finding the greater fool. etwealth@[Link]
It has happened earlier, it’ll happen again. So here’s the thing. The former
So why do companies come up with outra- group does not need any more
geous IPOs? Don’t tell anyone else this ‘secret’, facts and figures and the latter
but the real reason is that they want money. group will not be swayed no mat-
Lots of money, as much of it as possible. Just ter what the numbers say. That
like everyone else who’s in the markets. In does not mean that regulations,
the words of some Danny Devito
character in some movie, “That’s
why it’s called money.” As long as
the rules and laws are followed, in
letter if not in spirit, this is the way
the game is played.
Which brings us to the only real
open question here—does there
need to be some significant change
in IPO-related rules so that such
things do not happen? If one starts
discussing rules and regulations,
then no doubt one can come up
with a large list of new and tight
regulations that can attempt to
‘improve disclosures’, ‘tighten
pricing’ or some such thing. These
will all sound reasonable when
discussed in isolation.
However, when I observe the
actual behaviour of investors who
refuse to invest in such IPOs and
those who do, I doubt whether it

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 investing
10 The Economic Times Wealth January 30-February 5, 2023

“There is room for valuations

to revert to mean levels”
Margins have deteriorated for a big part of corporate India on account of a rise in commodity
prices. The good news is that it is coming off, Ajay Tyagi tells Sanket Dhanorkar
to revert to mean levels. Budget is. It is difficult to make a judg-
Secondly, the situation around com- ment at this point.
modity prices led to severe margin pres-
sures on companies. Third, high interest Is corporate earnings growth showing
rates and inflation are bad news for equi- enough strength to merit valuations?
ties. They imply lower intrinsic value for In a few sectors, we do see evidence of
stocks. Slowly but surely, all three factors healthy earnings growth. In a few con-
are getting addressed. We do see inflation sumption related sectors, we have seen
coming down, so we expect anchoring of some softness in demand. This was vis-
interest rates at some stage. That would ible in the July-September and October-
lead to worries abating. As long as the war December quarters. This comes after the
does not take an ugly turn, there will be pent up demand in the system showing up
stability in commodity prices. If market strongly in the previous financial year.
consolidates for a few more months, valu- Further, margins have deteriorated for a
ations will start to look more reasonable. big part of corporate India on account of a
rise in commodity prices. The good news
How do you perceive talks of imminent is that it is coming off. For the next finan-
global recession? cial year, we expect a revival in margins.
This is the most talked about and antici- But we need to watch out for sustainabil-
pated recession. In the US, recession is ex- ity in earnings growth. On average, the
pected to happen in the second half of this EPS estimates for current financial year
year. It is difficult to say whether it will have brought down compared to at the be-
be a soft landing. It does appear that while ginning of the year. So there is room for
inflation is coming down, the labour mar- valuations to come off further.
ket continues to be strong. So even if we
see a recession, it may be mild one. There What themes are you pursuing now?
will be an impact on the Indian economy. We think that IT and healthcare sectors
10-15% of our GDP comes through ex- are attractively valued. Some are too wor-
ports. Even if there is a 10% slowdown in ried about the US recession. There will
exports, it will have consequences. I don’t be life beyond the recession. IT stocks
think India can remain insulated. We are have already come off significantly. The
getting more integrated with the world. good news is that none of these are lev-
Our exports have been climbing across eraged businesses, have clean balance
industries. But as of now, it doesn’t appear sheets and strong cash flow generation.
to be a painful recession. So we don’t expect profitability to suffer.
While we could see slower growth for a
Are we near end of the rate hike cycle? few quarters, it will pick up later. Tech
It appears so. Globally, CPI is cooling off. spends are expected to remain strong.
We have three strong readings in both In healthcare, there were high mar-
US and Europe of inflation peaking and gins pressures for many companies,
coming off. That would first lead to abat- which ate into profitability. There is a
ing pressure on central banks to hike reversion happening now. Valuations in
interest rates further. In next couple of this space are attractive. After years, pri-
months, the rate hike cycle will get over. vate banks are trading at lower than long
Then, depending on how the economy be- term averages and look very attractive.

Ajay Tyagi Is the market unable to read the un-

folding economic environment?
haves, you may see interest rate reversals.
Domestically, inflation never went very UTI Flexi Cap is running a higher tilt in
mid caps compared to peers. Do you
Head of Equities, UTI There are multiple factors at play which
I believe would lead the market to trade
high in the first place. For Indian econo-
my, a CPI print of 5.5-6% is the average. It see good opportunities in this space?
Asset Management in a narrow range for a few more quar-
ters. First is valuations. Our long term
went to 7.5%, which is not as terrible as the
US inflation rising from 2% to 8%. So the
It is not because we find mid cap basket
more favourable now. We own businesses
Company valuations are around 16 times 1-year central bank was never under pressure that we like regardless of whether they
forward earnings. Markets reached a to hike rates very high. But it was forced are in the benchmark. We select mid caps
high of 23 times earnings in October to react to how global central banks were we think are the best candidates for value
2021, which was also the peak of the hiking rates. When global banks do take a creation in future. Therefore, our mid
market. Post this, the market has been pause, that pressure on RBI will abate. and small cap exposure is higher than the
in a narrow band. These valuations had index as well as many peers. Our holding
to get corrected as they were almost 50% Do you expect this year’s Budget to period is very long, which gives comfort
higher than normal. We are now trading make big moves? to have higher allocation to mid caps.
at around 19 times, which is still 15-20% Being an election year, the government
higher than average. That is why I feel may want to be slightly populist. But it is
Please send your feedback to
the market will consolidate for some the arithmetic around the fiscal deficit
etwealth@[Link]
more time. There is room for valuation which will determine how populist the

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 real estate
The Economic Times Wealth January 30-February 5, 2023 11

Is co-living better than renting?

Young professionals are opting for co-living as it offers more amenities at rents similar to a 1-BHK flat.

Co-living vs Renting
A quick comparison of sharing a living space
versus renting a studio or 1-BHK apartment.

CO-LIVING SPACE RENTING A FLAT

Available for short-term Minimum lease is usually 11

lease of 2-3 months too months
Security deposit or Advance rental in some metro
advance rental of about cities can be as high as 6-11
2 months months
May be unfurnished or
Fully furnished
partially furnished
Has a maintenance and
Need to hire your own
housekeeping staff
Less privacy More privacy
Sharing the kitchen
and other utilities like No issues of sharing utilities or
washing machine can be a schedule to do so
GETTYIMAGES

a hassle

by Namrata Dadwal more reasonable.

Cost of co-living

F
“On the face of it, co-living
inding a good place to might seem as costly as rent-
A look at the rental cost of co-living spaces versus a flat in some areas in Bengaluru. All co-living
stay as a young, single ing but the lifecycle cost can be accommodations are fully furnished, have wi-fi, housekeeping and laundry facilities.
professional can be cheaper when you add up all the
quite challenging as amenities that are built-in in the COMPARATIVE RENT
CO-LIVING
most landlords prefer rent such as paying for cleaning AREA ROOM RENT FOR 1-BHK FLAT IN FACILITIES AT CO-LIVING
SPACE
SAME AREA
to rent out to families. Hostels services and maintenance of
and PGs aren’t attractive options the area. If you’re living alone, Hyphen Double sharing: `18,000
HSR Layout `14,000 - `26,000 Kitchenette, pet-friendly
either due to the long list of terms you’ll have to pay extra for all Ombre Private room: `33,000
and conditions that are attached that including the hassle of doing
with them. This is why the trend it on your own,” says Saurabh HelloWorld BTM 2nd Double sharing: `14,000 Parking, game area,
`11,500 - `18,000
of co-living is emerging as a fa- Mehrotra, Executive Director, Lakeview stage Private room: `26,000 rooftop garden
vourite with millennials and Gen Valuation and Advisory, at
LOCL Co- Bellandur Double sharing: `13,500 Bike parking, gym, cafe,
Z as it’s a reasonable option that Knight Frank. `16,000 - `24,000
Live Main Road Private room: `24,000 power back-up
comes with attractive amenities Some of these places also offer
like a gym, recreational areas, meals and may have an addition- The Hub Double sharing: `17,000 `20,000 in Wilson Gym, co-working and
Infantry
rooftop gardens, etc. al cafe for beverages and snacks Safina Garden (nearest lounge spaces, power
Road Private room: `34,000
Co-living spaces are fully too. You can control all your liv- Plaza locality with 1-BHK) back-up, pet friendly
furnished houses or buildings ing arrangements via an app for Double sharing: `12,000
Old Airport Bike parking, power
where some functionalities are the co-live house, such as paying Olive `15,000 - `25,000
Road Private room: `24,000 back-up
common, such as kitchen, living the rent, raising a complaint or
room, TV lounge, laundry facili- shifting to a new location man- Double sharing: `12,000
ties, game room and workspace, aged by the same operator. CCTVs, App service,
FF21 ITP Whitefield Private room: `24,000 `15,000 - `21,000
while offering a private bedroom Another benefit is that such power back-up
and bathroom. The bedrooms spaces can be rented for short- Studio apartment: `30,000
can be single or studio rooms term stays of a minimum three
(with a kitchenette) as well as be months as compared to rental
shared on double and triple occu- agreements for apartments that problem that is rare in case of co- Co-living spaces also have al- have a large population of young
pancy basis. are signed for at least 11 months. living. This flexibility to freely most no tenancy restrictions and techies, such as Bengaluru,
A big advantage of co-living Also, the security deposit in case move in and out of an accommo- are open to people of all genders, Gurgaon, Pune, Chennai and
is that such spaces are fully of co-living is usually equal to dation is a boon for most young age and religion, with no dietary Hyderabad, the concept is
furnished and provide full-time rent of 1-2 months which is much professionals who need to shift limitations. spreading to other urban centres
houskeeping and security staff cheaper than the 6-11 months cities often if their job demands. Some companies that offer like Ahmedabad and Indore.
along with other amenities like that one has to often pay in cities “Co-living is as tax-efficient as co-living choices in India are However, these stays can be
wi-fi and repair and maintenance like Bengaluru and Mumbai. renting since you get an invoice Zolo, Stanza Living, CoLive, challenging for those who prefer
of all appliances, which is taken The problem in the case of the lat- for your rent, which you can Housr, Settl, Your-Space, Coho, privacy or find it difficult to
care of by an operating company. ter is that landlords can deduct submit to your employer to claim NestAway, HelloWorld, FF21, share resources as you have to
While single occupancy can be as as much as they want from the HRA exemption,” says Arjun TribeStays and Flock. While make sure your schedule of using
expensive as renting a 1-BHK in security deposit when you va- Sumaya, India Head, Retail and these facilities are mostly con- the common amenities doesn’t
the same area, sharing a room is cate, depending on their whim, a Alternatives, JLL. centrated in metro cities that clash with other residents.

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 financial planning
12 The Economic Times Wealth January 30-February 5, 2023

Financial
planning for PAPER WORK
:: Set off and carry

self-employed
forward of losses
Profit and loss are part and parcel
of a business. Income tax provi-
sions provide rules for setting off
losses against income or profits,
It is important to keep personal or carrying forward the losses to
the next few years. Carry forward
and business finances separate. or set-off of losses allows the tax
payer to reduce taxable income in
the current year and year in which
the losses are carried forward.
These provisions are:

Intra-head set off

Loss from one source of in-
come can be set off against
profit from another source

GETTY IMAGES
of income that falls under the same
head of income. This means that loss
from one business can be set off
against profit from another business.
However, loss from a speculative

A
business cannot be set off against
Akshat is a social media expert and s a self-employed person, ance plan that covers his family against
profit from a non-speculative busi-
Akshat does not have medical emergencies is imperative as
runs his own consultancy firm. the comfort of employer- he doesn’t have the medical benefits and
ness. Also, long-term capital loss can
be set off only against long-term
He is 32 and has spent the past five sponsored programmes that cover usually provided by an employer. capital gains. However, short-term
years establishing his business. could take care of his retirement years. Akshat must take care of this even be- capital loss can be set off against
Hence, his priority must be to replicate fore he starts an investment plan. long- and short-term capital gains.
He now earns a stable income and a similar saving programme on his There are some precautions that
wants to expand. While Akshat is own. He should open a Public Provident Akshat should take. His professional
satisfied with the way his business Fund (PPF) account and a National and personal finances must be kept Inter-head set off
Pension Scheme (NPS) account and apart as far as possible. He should avoid
activities are progressing, he knows The loss of one head
start making regular contributions. dipping into his personal savings to tide
of income may be set
that his personal finances have These will form safe investments over business necessities. He should
off against income/profit from an-
through which he can build a corpus make sure that all his money is not tied
not got the attention they should steadily over time. After funds are allo- up in his business alone. In the unfor-
other head, in line with the IT laws.
Loss from house property can be
have. He has been unable to start cated for these schemes, he should also tunate instance of his business failing, set off against income under any
consider mutual funds, which will give this might wipe out his personal wealth
a savings and investment plan for other head. Similarly for loss from
him higher returns on investments. too. Akshat should also take care of his business (non-speculative), except
his financial goals as all surplus Akshat should do an honest assess- credit habits and build a good credit income from salary. Speculative
money has been invested in build- ment of what he can set aside for invest- score. This will help him to some extent business loss, specified business
ment, given his income and expenses, to get a home loan and other loans on loss, loss from horse racing or
ing the business. He wants to start and as far as possible put his invest- good terms, which is usually difficult capital losses cannot be set off
investing to buy a house, fund his ments on auto mode. Since his invest- for a self-employed person. against any other head of income.
child’s education and build a retire- ments will be voluntary, the temptation Akshat has to realise that in his situ-
to skip or stop will be high, especially if ation he has to go that extra mile to get
ment corpus. He wants to make sure there is a shortage of money. Auto debit, to a comfortable personal finance situa- Carry forward
that he can take care of his family’s SIP, and sweep facility will make it diffi- tion. But if he does that he will have the of losses
cult to break the investment schedule. satisfaction of running a good business
needs as and when they arise. What After the above set
Akshat should also make sure that he as well having a secure financial future offs are made, there could still
should Akshat do to meet his goals? is adequately insured. A health insur- for his family. be unadjusted losses which may
be carried forward to future fi-
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. nancial years. Carry forward and
set-off of losses is possible for

smart things to know New safe deposit locker agreement rules

eight subsequent financial years.

1
An SMS and
email alerts 2 4
The bank will not be
At the time of
allotment, banks
can ask for a term
:: Points to note
z Losses cannot be set off
against casual income

3 5
received, such as lottery.
will be sent Banks will compensate The bank liable for any damage or deposit which z Carry forward of losses is
by the bank the locker hirer in case will pay up loss of locker contents would cover three permitted only when return
about locker of any loss of locker to a hundred caused by natural years’ rent and is filed with the Income Tax
access and content due to the times the calamities like earth- the charges for Department in time.
operation at bank’s negligence, such annual rent of quakes, floods, lightning, breaking open the
the end of as fire, theft, dacoity, the safe de- or thunderstorms, or due locker to ensure
the day. and building collapse. posit locker. to customer’s negligence. regular payment.

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 financial planning
The Economic Times Wealth January 30-February 5, 2023 13

The power of asset allocation

Every time an asset is liquidated, growth is sacrificed for income, says Uma Shashikant.
only in two primary forms: as assets and as
income. Income is the cash flow that is read-
ily available to use; asset is the accumulated
income that will be available whenever we
want to use it. Our financial well being is
not determined just by how much income we
have today, available to spend as we wish.
It depends critically on sustaining that in-
come over our lifetime.
At some level of intuitive understand-
ing, we should be able to strike a balance
between the two. Mindlessly accumulating
assets and not utilising it ever or bequeath-
ing it to heirs who don’t even need it, are also
forms of extreme imbalance. The tendency
to convert assets into income frequently,
not allowing assets to accumulate and grow
with time, is also an extreme imbalance.
Asset allocation is a very powerful idea
in personal finance. We balance between
income and growth, depending on which as-
set generates income, and which asset must
grow to generate future income. Retirement
is just a case of the income generating hu-
man asset making way for income generat-

GETTY IMAGES
ing investment assets. While earning, we
set income aside to fund that future.
Every time the asset is liquidated in the

T
examples we discussed earlier, growth is
he question simply confounded me. to a meal at an expensive place, the week be- sacrificed for income. Each one of those
What should I do with the maturity fore pay date. There is still some balance in the innocuous decisions are asset rebalancing
amount, he asked. You asked me to account and my next income is just round the decisions that impact our personal finances
start this last year, he said, trying corner, she would say. Another relative would and long term wealth. When profit is booked
to jog my memory. But, wasn’t that make holiday plans as soon as a few months’ on a growing asset like equity, and we con-
an SIP that we started, I asked. Yes, I have in- savings accumulated. We earned this holiday, sume the cash, we have reduced our equity
vested for 12 months and have now withdrawn she would say. Another routinely used her allocation for cash. When incomes are used
it all, he said. I spare you the dialogue that fol- annual bonus to buy herself some jewellery, to replace gold jewels, allocation to gold has
lowed. But there lies a story I must tell. telling us that it was her chance to gift herself. not gone up if all incremental cash went to-
Some of us just cannot see money lying un- Other gifts during the year were also jewels wards charges.
UMA SHASHIK ANT used. We must make plans for it. My mother bought by the husband, brothers and parents. There is truly no escaping the asset al-
IS CHAIRPER SON, would eagerly wait for the recurring deposit We are not talking about those who spend location framework while explaining the
CENTRE FOR INVES TMENT to mature. She would have already chosen a their incomes generously on whatever they everyday decisions we make to spend or
EDUC ATION AND LE ARNING save. Worse still, spending is habit forming.
kitchen appliance, or a minor upgrade of some- fancy. Those are avid consumers. This is an-
thing else around the house. She would be very other class that just cannot bear to see money Therefore, the provisions for future in-
pleased with herself for having set the money accumulating somewhere. They have to access comes to be generated must also include this
aside and for now being able to have a lump what they see as surplus that they have gener- lifestyle that the spending has fostered.
sum on hand. But those were different times. ated. Their saving plans are all short-term. The default answer is not no. All spend-
The small savings of those days was during They cannot bear to wait for more than a year ing is not wasteful and unnecessary. Just
periods of inadequate incomes. Money would at the most to enjoy the benefits. Anything that the mindfulness about where income is
routinely run out before the next salary came has been set aside must be used. Sooner the getting allocated, and why an asset is be-
All spending is in. The family had to make sacrifices to fund better. ing liquidated, is enough. The percentage
not wasteful and what was important. The woman of the house Some of them do wisen up with time. They allocation method is still my personal fa-
unnecessary. Just the innovated many ways to put some money don’t want to use it all up, but devise some vourite. I recast every saving and expense,
mindfulness about aside. If my grandmother hid her savings in strategies. A cousin routinely replaces her big or small, as a percentage of my annual
where income is the rice tin, my mom chose the bank. We chil- jewels, trading old for new. All my arguments income. For example, 10% of the income on a
getting allocated, and dren put coins into the piggy bank and waited about losing money on making charges and holiday seems reasonable in my mind. Then
why an asset is being for the day to break it open and count the loot. damages fall on deaf ears. She is confident that funding it is merely a matter of cash flow
liquidated, is enough. Not touching the saving was a much needed she is buying new jewels at a fraction of the full management.
discipline. cost. Another books profits on his investments The story of my 90-year old reader who
We now live in relative prosperity. So many from time to time, and uses that money to up- saved all his life, and now has a fortune piled
of those struggling families are today well grade his phone, car or some gadget. He feels up with no way to spend it, is also a case of
off. But money attitudes sometimes don’t really smart about it. imbalance. Assets must be used, he now
keep pace. In today’s prosperous world of the Why do I pick on these habits? Should one tells his grandchildren. Then asks me if his
small investor, I do see with some, a certain not be enjoying the money they make? Is long generous bequest will spoil them. That is
impatience with accumulated funds. I notice term investing the only route to wealth? Is another story for another day.
an eagerness to use those funds for a need that there a virtue in trading the present for the fu-
has been specifically discovered, with an eye ture? My concern is about wealth and sustain-
Please send your feedback to
on the money. ability of income. Let me explain.
etwealth@[Link]
A colleague would routinely treat her family Whatever we do with our money, we hold it

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 travel
14 The Economic Times Wealth January 30-February 5, 2023

State Secrets: Jharkhand

If, instead of foreign holidays, you prefer to travel within India, here’s a new series to help you plan the best
vacations in each of the 28 states and 8 Union Territories. We highlight tourist attractions, culinary choices,
modes of travel and the costs involved. In the tenth part of the series, Riju Mehta takes you to Jharkhand.

CAPITAL
RANCHI
BEST TIME TO VISIT
NOVEMBER TO WHERE TO STAY…
MARCH
You can find all star hotels in most of the
cities, besides budget hotels, resorts,
homestays and guest houses, with good,
feasible options ranging from `2,000-
7,000. The Jharkhand Tourism resorts
will be even cheaper, but the options
here are not too many.

COST: `31,500 for 7 nights

WHAT TO EAT…
The state’s traditional food is similar
to that of Bihar, with staples including
rice, vegetables and lentils. Some of
the popular dishes include litti chokha,
which is baked dough balls and an
accompaniment of brinjal, potatoes and
tomatoes, aloo chokha (mashed potato
dish), chilka roti (made from rice flour
and chana dal), rugra (mushroom dish),
bamboo shoots, dhuska (deep fried
savoury snack), desserts like til barfi
(sweet garnished with sesame), pittha
The landlocked eastern state that was
carved from Bihar in 2000, is replete with
HOW TO The fastest way to reach Ranchi is by air, which will take just (type of stuffed rice cake), mitha khaja
scenic beauty, including hills, forests, wa- REACH FROM under an hour and cost upwards of `3,000. The cheaper option (deep fried batter in sugar syrup) thekua
is train, which will cost you upwards of `2,000 for class 2A,
terfalls, and lakes. Situated on the Chhota DELHI… while sleeper class starts at `575. It will take anywhere from 17
(prasad served during Chhat puja), and
Nagpur plateau, nearly a third of the state the local beer, handia.
to 27 hours to reach, so take the travel time into consideration.
is covered in forests and is known primar-
ily for its rich mineral resources. The best Cost by air Cost by train
COST: `700-1,000 per person, per day
time to visit is in the winters and you can
allot 7-8 days to take in the flora and fauna,
`3,194 (Delhi-Ranchi, Upwards of `2,225 (Class 2A)
1 hour 45 minutes) (Delhi-Ranchi, 16-27 hours)
the large number of Hindu and Jain tem-
ples, and sample its food and culture. *One way, per person. Flight cost on Skyscanner on 25 Feb. Train cost on Ixigo. WHAT TO DO…

TEMPLES
z Baidyanath temple (Deogarh),
SUGGESTED ITINERARY
visit the Pine forest, Parasnath (Giridih), Rajrappa
DAY 1-2 DAY 6
We have planned a week’s trip, but if you want to visit (Hazaribagh), Jagannath (Ranchi),
RANCHI Magnolia point for GIRIDIH
Jamshedpur, or the Betla National Park and any of the 11 Deori (Ranchi), Shikharji (Giridih).
You can visit the sunsets and sunrises, Arrive in 2.5
wildlife sanctuaries, stretch your itinerary by a couple of days.
Jagannath temple, and the Ghaghri wa- hours and visit the
Pahari mandir, Deori terfalls. Parasnath temple, PARKS & SANCTUARIES
JHARKHAND Start mandir, and the Sun Shikharji temple, Jain z Betla National Park (Palamu), and
temple here. Also DAY 4 museum, Usri falls the sanctuaries include Dalma sac-
RANCHI check out the Hundru HAZARIBAGH and Khandoli dam. tuary (Singhbhum East & Saraikela
falls, Jonha falls and Arrive in 5.5 hours at
Kharsawan), Palamu (Palamu),
Dassam falls. Take out this scenic city and DAY 7
visit the Hazaribagh Hazaribagh (Hazaribagh), Mahuadanr
DAY 6 DAY 7 time for Rock Garden, DEOGARH
DAY 4 lake, Rajrappa tem- It will take about (Palamu), Koderma (Koderma),
Ranchi lake, Ranchi
ple, Canary Hills and 1.5 hours to reach. Lawalong (Chatra), Parasnath (Giridih),
hill, and Dhurwa dam.
Patratu valley, 40 km Narsimhasthan. Visit the Baidyanath Topchanchi (Dhanbad), Palkot (Gumla),
DAY 5
away, is also worth temple, one of the 12 Gautam Buddha (Hazaribagh),
DAY 5 Jyotirlinga temples, and Udhwa lake bird sanctuary
DAY 3 a visit.
BOKARO Naulakha mandir, (Sahebganj).
DAY 3 About 2.5 hours away Basukinath, Nandan
NETARHAT is the ‘steel city’, Pahar and the WATERFALLS & LAKES
DAY 1-2 About four hours where you can check Tapovan caves and z Dassam (Ranchi), Hundru (Ranchi),
away is the Queen out the Bokaro Steel hills, 10 km away.
Plant, Garga Dam, Usri (Giridih), Hirni ( West Singhbhum),
of Chhota Nagpur,
Jagannath Mandir Jonha (Ranchi), Dharagiri (Basadera),
the highest point of DAY 8
the plateau. You can and the City Park. BACK TO DELHI Panchgagh (Khunti), Lodh (Latehar),
Perwaghagh (Khunti), among others.

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 SMART STATS
The Economic Times Wealth
January 30-February 5, 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

UPL 1 2 737.95 24.35 51.96 15.56 2.29 1.34 0.27 1.37 1.16 29 4.76
Prestige Estates 2 4 432.40 27.27 62.92 15.11 1.91 0.34 0.24 1.46 0.97 20 4.80
Embassy Office Parks 3 3 340.06 21.01 58.23 40.42 1.28 6.21 0.66 0.85 0.08 15 4.87 Top 5 stocks with the highest
revenue growth (%) over the
KEC International 4 5 465.80 32.28 108.74 36.24 3.33 0.86 0.34 1.48 0.73 26 4.19
previous year
State Bank of India 5 -- 568.70 2.80 38.17 12.40 1.53 1.19 0.35 1.15 1.08 53 4.89
SBI Cards & 46
Bank of Baroda 6 6 169.75 6.72 40.82 8.93 0.90 1.60 0.22 1.69 1.58 39 4.56 Payment
Dr Reddy's Laboratories 7 9 4,200.95 18.36 71.24 29.71 3.67 0.71 0.42 1.05 0.71 42 4.43 PI Industries 46
Oil India 8 10 235.80 25.97 29.25 4.56 0.84 5.64 0.19 2.05 -0.13 20 4.15 Adani Ports & 45
Apollo Tyres 9 11 322.30 24.85 97.67 32.08 1.74 1.01 0.33 1.60 1.56 33 3.97 SEZ
Greenply 45
NTPC 10 7 165.90 25.38 13.60 9.65 1.19 4.22 0.70 1.08 0.61 26 4.81 Industries
City Union Bank 11 14 152.50 26.45 45.94 14.83 1.71 0.64 0.34 1.47 1.35 27 4.37 Blue Star 41

Adani Ports & SEZ 12 15 713.15 44.87 60.39 32.03 3.98 0.66 0.54 1.54 1.46 22 4.68
M&M Financial 13 13 229.65 20.25 80.26 25.01 1.69 1.54 0.32 1.82 1.95 34 3.59
2 Least expensive stocks
Coal India 14 12 226.15 18.28 37.02 8.02 3.23 19.77 0.20 1.47 0.77 24 3.92
Top 5 stocks with the lowest
CESC 15 18 73.80 21.89 15.24 7.19 0.94 6.09 0.49 1.06 0.28 16 4.88 price-earnings ratio
Manappuram Finance 16 17 115.25 24.44 31.95 7.37 1.17 2.54 0.27 1.74 1.68 18 4.67 Oil & Natural 4.20
Gas Corp
Somany Ceramics 17 16 547.10 30.94 48.22 26.10 3.19 0.55 0.54 1.52 0.91 18 4.72
Oil India 4.56
Indus Towers 18 -- 157.90 0.74 86.60 17.45 2.18 6.45 0.21 1.65 1.62 24 3.17
Bharat Electronics 19 19 99.15 32.51 37.76 30.30 5.92 1.49 0.84 1.28 0.94 32 4.63 CESC 7.19

Torrent Pharmaceuticals 20 20 1,556.75 26.02 106.06 67.89 8.86 1.51 0.64 1.30 0.70 35 4.06 Manappuram 7.37
Finance
VRL Logistics 21 21 545.85 32.43 48.35 29.90 7.35 1.45 0.52 1.84 1.02 13 4.77
Coal India 8.02
Tata Power Co 22 23 201.45 25.74 69.01 29.34 2.89 0.85 0.17 1.60 1.59 23 3.17
Blue Star 23 24 1,249.10 41.11 103.95 70.77 11.68 0.80 0.70 1.24 0.56 23 4.22
ICICI Lombard General Ins 24 33 1,136.95 29.21 55.36 43.73 6.11 0.83 0.75 1.18 0.76 27 4.37 3 Best PEGs
Top 5 stocks with the least
Reliance Industries 25 22 2,382.55 34.50 27.77 25.97 2.07 0.33 0.83 1.15 0.91 36 4.42
price earnings to growth ratio
Greenpanel Industries 26 27 322.80 28.44 38.99 16.91 4.00 0.47 0.43 1.63 0.80 14 4.64
Tata Power Co Coal India
Greenply Industries 27 32 141.00 44.59 33.56 18.32 3.22 0.35 0.60 1.50 1.11 12 4.83
Endurance Technologies 28 26 1,450.45 36.53 56.27 44.18 5.19 0.43 0.79 1.36 0.65 23 4.35
0 0.17 0.19 0.20 0.21
ITC 29 25 339.25 25.33 28.72 27.30 6.66 3.39 0.96 0.93 0.62 35 4.57
Coromandel International 30 31 855.50 30.77 26.99 16.34 3.93 1.39 0.58 1.34 0.89 12 4.58
Cipla 31 29 1,035.25 19.64 49.37 33.64 4.06 0.47 0.67 0.94 0.37 42 4.17 Britannia Oil India Indus Towers
Industries
Bharti Airtel 32 28 776.50 19.84 126.21 65.71 5.93 0.39 0.55 1.08 0.64 34 4.35
EPL 33 30 156.00 19.73 37.32 23.11 2.72 2.71 0.62 1.50 1.03 12 4.67
4 Income generators
Kalpataru Power 34 37 524.35 29.60 27.22 14.35 1.81 1.26 0.76 1.38 1.01 15 4.40
Top 5 stocks with the highest
DLF 35 38 352.05 24.98 61.66 58.03 2.39 0.82 0.87 1.59 1.59 23 4.65 dividend yield (%)
Britannia Industries 36 36 4,388.15 25.39 35.32 69.22 41.26 1.29 0.00 1.01 0.61 40 3.97 Coal India 19.77
Oil & Natural Gas Corp 37 39 152.45 27.06 2.61 4.20 0.74 7.72 1.23 1.67 -0.01 28 4.11 Oil & Natural
7.72
Gas Corp
Bharat Heavy Electricals 38 41 76.70 40.67 101.12 60.35 1.01 0.51 0.59 1.80 1.45 20 1.80
Indus Towers 6.45
SBI Cards & Payment 39 35 715.10 46.48 64.38 42.28 8.83 0.34 0.66 1.33 1.14 27 4.18 Embassy Office
6.21
Parks
Amara Raja Batteries 40 -- 564.80 26.67 55.41 18.93 2.13 0.59 0.42 1.40 1.42 19 3.58
CESC 6.09
Container Corp Of India 41 40 649.60 28.70 43.24 37.80 3.71 1.47 0.90 1.40 1.14 32 3.91
Gujarat State Petronet 42 47 266.70 17.89 3.33 9.13 1.89 0.74 0.30 1.45 1.33 25 4.72
5 Least risky
Glenmark Pharmaceutical 43 43 398.85 11.19 43.34 12.05 1.25 0.61 0.26 1.37 1.16 19 3.84 Top 5 stocks with the lowest
PI Industries 44 49 2,974.15 46.30 63.50 53.68 7.41 0.20 0.85 1.21 0.79 29 4.17 downside risk
Birla Corp 45 -- 930.20 28.79 13.68 17.94 1.18 1.07 1.32 1.55 0.60 22 4.64 Britannia
ITC Industries
Jyothy Labs 46 42 203.85 22.33 69.39 46.32 5.20 1.23 0.67 1.18 0.83 17 4.18
Cummins India 47 -- 1,384.00 33.08 45.44 40.98 7.44 1.31 0.91 1.15 0.85 31 3.84
0.85 0.93 0.94 1.01 1.05
Dhanuka Agritech 48 48 692.70 25.79 21.11 15.45 3.36 0.85 0.83 1.08 0.19 13 4.69
Kansai Nerolac Paints 49 44 412.00 33.19 103.27 61.66 5.36 0.24 0.62 1.14 0.56 20 3.55
Embassy Cipla Dr Reddy's
Century Plyboards 50 45 489.95 34.47 46.21 34.94 7.07 0.30 0.76 1.43 0.82 21 4.52 Office Parks Laboratories
SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 25 JANUARY 2023. SOURCE: BLOOMBERG IN THE ADJACENT TABLE.

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 smart stats
16 The Economic Times Wealth January 30-February 5, 2023

ETW FUNDS 100

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

LAGGARDS LEADERS

ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are 5.40 12.18
ranked on 3-year returns while debt-oriented hybrid and income funds are IDBI Nifty Junior Index Fund Canara Robeco Bluechip Equity Fund

ranked on 1-year returns. 5.58 12.04

ICICI Prudential Nifty Next 50 ICICI Prudential S&P BSE Sensex ETF
6.00 12.02
RETURNS (%) JM Focused Fund LIC MF S&P BSE Sensex ETF - Sensex
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) 6.21 12.01
Taurus Largecap Equity HDFC S&P BSE Sensex ETF
EQUITY: LARGE CAP
6.41 12.01
Quant Focused Fund
ICICI Prudential Bluechip Fund


196.59
35,049.23
0.49
1.20
8.76
8.68
9.34
5.32
20.07
15.30
11.44
10.44
2.62
1.66
20.07% SBI Nifty Next 50 ETF SBI S&P BSE Sensex ETF
IDFC Nifty 50 Index Fund  582.43 1.30 7.63 4.52 14.32 11.04 0.60 THE 3-YEAR
RETURN OF
UTI Nifty 50 Index Fund*  9,337.37 1.38 7.81 4.53 14.32 11.07 0.30
Canara Robeco Bluechip Equity Fund*  8,666.25 -0.58 5.64 0.41 14.15 12.18 1.87
QUANT
FOCUSED Equity: Flexi-cap 5-year returns
HDFC Index Fund Nifty 50 Plan  7,411.17 1.36 7.74 4.40 14.08 10.89 0.40 FUND IS
ICICI Prudential S&P BSE Sensex Index Fund  646.58 1.21 8.17 4.96 14.03 11.53 0.27 THE HIGHEST 3.39 17.10
HDFC Index Fund - S&P BSE Sensex Plan  4,141.51 1.18 8.13 4.94 13.74 11.51 0.40
IN ITS
CATEGORY. Motilal Oswal Flexi Cap Quant Flexi Cap Fund
Nippon India Index Fund - S&P BSE Sensex Plan  360.98 1.07 7.86 4.60 13.69 11.20 0.88
4.28 14.85
Kotak Bluechip Fund  5,256.16 0.26 6.06 2.09 13.67 10.13 1.94
Nippon India Retirement Parag Parikh Flexi Cap Fund
UTI Mastershare Fund*  10,659.36 -1.72 3.75 -2.24 13.22 9.63 1.94
Tata S&P BSE Sensex Index Fund  172.00 1.17 7.98 4.75 13.13 11.11 0.58 4.29 14.56
Baroda BNP Paribas Large Cap Fund  1,381.49 0.66 7.00 3.43 12.98 10.05 2.14 IDFC Focused Equity Fund IIFL Focused Equity Fund
Axis Bluechip Fund  35,197.66 -3.65 1.76 -5.84 9.27 10.48 1.65 4.54 12.28
EQUITY: LARGE & MIDCAP Taurus Flexi Cap Fund PGIM India Flexi Cap Fund
Quant Large and Mid Cap Fund  548.66 1.67 9.60 12.55 22.75 13.13 2.31
22.75% 5.35 11.87
SBI Large & Midcap Fund  9,077.27 -2.47 8.19 5.37 17.25 11.18 1.80 LIC MF Flexi Cap Fund HDFC Retirement Savings Fund Equity
THE 3-YEAR
Mirae Asset Emerging Bluechip Fund  24,054.79 -0.56 2.96 -2.50 16.79 12.24 1.75 RETURN
Canara Robeco Emerging Equities Fund  15,499.66 -3.49 2.25 -1.80 15.84 10.06 1.76 OF QUANT
LARGE AND
Edelweiss Large & Mid Cap Fund*
Axis Growth Opportunities Fund


1,671.64
8,257.39
-2.72
-5.14
3.55
-1.77
0.81
-7.47
15.51
15.46
10.52
—
2.16
1.87
MID CAP IS Equity: Mid-cap 3-year returns
THE HIGH-
Kotak Equity Opportunities Fund  11,555.33 -0.94 6.13 5.11 14.76 11.03 1.79 EST IN ITS 11.56 31.37
CATEGORY. DSP Midcap Fund Quant Mid Cap Fund
EQUITY: FLEXI CAP
HDFC Retirement Savings Fund Equity Plan  2,641.50 2.31 8.39 8.90 20.83 11.87 2.06 12.82 29.46
Parag Parikh Flexi Cap Fund  28,248.50 -0.77 5.42 -1.73 20.81 14.85 1.65 HSBC Midcap Fund PGIM India Midcap Opportunities
PGIM India Flexi Cap Fund  5,283.60 -0.72 3.44 -5.38 19.78 12.28 —
13.76 22.56
IIFL Focused Equity Fund  3,417.31 -0.40 8.05 0.29 17.16 14.56 1.92
IDBI Midcap Fund - Regular Plan SBI Magnum Midcap Fund
ICICI Prudential Retirement Fund  209.82 -0.58 5.37 0.64 16.80 — 2.59
Union Flexi Cap Fund  1,360.97 -1.66 4.98 -0.30 15.79 11.07 2.28 13.77 21.59
JM Flexicap Fund  250.35 1.06 7.06 5.27 15.46 11.34 2.59 Sundaram Mid Cap Fund HDFC Mid-Cap Opportunities
Sundaram Focused Fund  793.31 -2.61 4.99 -1.77 15.13 10.79 2.47 13.92 21.38
Canara Robeco Flexi Cap Fund*  8,729.58 -1.02 4.23 -2.06 14.86 11.68 1.80
Franklin India Prima Mirae Asset Midcap Fund
UTI Flexi Cap Fund*  24,929.40 -5.44 -1.46 -10.40 12.60 10.81 1.75
SBI Focused Equity Fund  27,818.57 -4.89 1.67 -5.81 11.90 9.99 1.60

EQUITY: MID CAP

Quant Mid Cap Fund  1,329.97 1.50 10.32 14.84 31.37 18.32 2.68 31.37%
Equity: Small-cap 3-year returns
PGIM India Midcap Opportunities Fund  7,557.96 -4.31 0.73 -1.37 29.46 15.46 — THE 15.87 49.59
Edelweiss Mid Cap Fund*  2,480.75 -3.80 2.61 2.41 20.74 10.23 2.11 3-YEAR
Aditya Birla Sun Life Quant Small Cap Fund
RETURN
Nippon India Growth Fund  13,596.51 -1.36 5.92 4.98 20.04 12.10 1.90
OF QUANT 19.83 32.20
Kotak Emerging Equity Fund  23,334.64 -1.83 3.74 4.32 19.21 12.18 1.69 MIDCAP
Motilal Oswal Nifty Canara Robeco Small Cap Fund
Axis Midcap Fund  19,144.39 -4.97 -0.28 -4.16 16.07 13.69 1.78 FUND IS
THE HIGH- 21.36 31.96
EQUITY: SMALL CAP EST IN ITS Franklin India Smaller Bank of India Small Cap Fund
Canara Robeco Small Cap Fund*  4,567.76 -2.35 2.42 4.33 32.20 — 2.06 CATEGORY.
Bank of India Small Cap Fund  411.81 -3.40 5.45 -1.25 31.96 — 2.67
22.42 29.79
Nippon India Small Cap Fund  23,701.28 -1.00 8.19 6.70 29.79 13.66 1.83 IDBI Small Cap Fund Nippon India Small Cap Fund
Edelweiss Small Cap Fund*  1,437.69 -2.06 5.08 3.00 27.65 — 2.20 22.67 27.65
Kotak Small Cap Fund  8,498.04 -2.78 1.44 -1.46 26.04 13.88 1.90 Axis Small Cap Fund Edelweiss Small Cap Fund
SBI Small Cap Fund  15,348.09 -3.69 7.67 6.54 24.61 12.11 1.84
Axis Small Cap Fund  11,390.24 -1.15 6.36 2.91 22.67 16.95 1.92

EQUITY: VALUE ORIENTED

Hybrid: Aggressive 5-year returns
SBI Contra Fund  7,635.09 1.53 9.91 13.27 28.22 12.67 1.92 28.22%
ICICI Prudential Value Discovery Fund  27,515.18 4.54 12.41 12.24 23.86 13.11 1.73 4.16 17.40
THE 3-YEAR
Invesco India Contra Fund  9,633.95 -1.01 5.94 2.84 15.65 9.98 1.75 Nippon India Equity Hybrid Quant Absolute Fund
RETURN OF
UTI Value Opportunities Fund*  7,017.89 0.1 6.48 2.98 15.57 10.89 1.97 SBI CONTRA 5.22 12.66
Kotak India EQ Contra Fund  1,451.97 2.4 9.15 6.05 15.35 12.05 2.24 FUND IS IDBI Hybrid Equity Fund ICICI Prudential Equity & Debt Fund
THE HIGH-
EQUITY: ELSS EST IN ITS 5.56 10.88
Quant Tax Plan  2,506.48 -2.40 8.67 8.40 34.78 20.05 2.62 CATEGORY. IDFC Asset Allocation Fund Baroda BNP Paribas Aggressive Hybrid
IDFC Tax Advantage (ELSS) Fund  4,025.95 -0.36 6.53 3.53 20.50 10.37 2.01
5.61 10.35
Bank of India Tax Advantage Fund  692.94 -1.92 7.53 0.74 19.89 10.97 2.47
LIC MF Equity Hybrid Fund Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Tax Saver Fund*  4,562.79 -2.15 3.81 -0.96 18.04 13.42 1.98
PGIM India ELSS Tax Saver Fund  448.34 0.78 7.29 2.85 17.79 10.92 —
5.71 10.34
Union Long Term Equity Fund  577.52 -1.75 5.56 2.58 16.86 10.91 2.49 LIC MF Children's Gift Fund HDFC Children's Gift Fund
ANNUALISED RETURNS IN % AS ON 25 JAN 2023.

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 smart stats
The Economic Times Wealth January 30-February 5, 2023 17

ETW FUNDS 100 Value Research

Fund Rating
Net Assets
(` Cr) 3-Month 6-Month
RETURNS (%)
1-Year 3-Year 5-Year
Expense
Ratio 1 Top 5 SIPs
Top 5 equity schemes based
Mirae Asset Tax Saver Fund  14,020.27 0.12 4.58 -0.40 16.47 11.98 1.68
DSP Tax Saver Fund*  10,444.91 0.57 6.32 2.83 16.04 10.93 1.75 on 10-year SIP returns
Kotak Tax Saver  3,161.09 -0.10 7.34 4.88 15.06 11.47 2.06
Nippon India Small Cap Fund
HYBRID: EQUITY SAVINGS
22.84
Mirae Asset Equity Savings Fund  589.03 1.14 4.33 3.47 10.38 — 1.41
UTI Equity Savings Fund*  260.51 1.81 5.32 5.81 9.81 — 1.51 Quant Tax Plan
Kotak Equity Savings Fund  2,082.76 1.79 5.34 6.41 9.22 7.87 2.08 22.73
Edelweiss Equity Savings Fund*  269.82 0.59 3.94 3.31 8.68 7.37 2.06 SBI Small Cap Fund
SBI Equity Savings Fund  2,305.19 -0.63 2.87 1.78 8.32 6.66 1.18
22.32
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) Quant Flexi Cap Fund
Quant Absolute Fund  949.60 -0.64 8.34 11.19 28.10 17.40 2.31 28.10% 20.86
Bank of India Mid & Small Cap Equity & Debt Fund  392.05 0.97 6.34 -1.81 21.37 8.90 2.55 THE 3-YEAR
ICICI Prudential Equity & Debt Fund  21,281.63 1.53 9.04 8.86 19.32 12.66 1.77 RETURN Quant Small Cap Fund
OF QUANT
HDFC Children's Gift Fund  6,099.84 1.22 6.83 6.49 15.42 10.34 1.94 20.14
ABSOLUTE
Kotak Equity Hybrid Fund  3,209.48 0.28 4.81 3.62 14.45 10.20 2.03 FUND IS THE
SIP: SYSTEMATIC % ANNUALISED RETURNS
HDFC Retirement Savings Fund  928.63 2.34 6.53 5.35 14.16 9.67 2.28 HIGHEST IN ITS
INVESTMENT PLAN AS ON 26 JAN 2023
Canara Robeco Equity Hybrid Fund*  8,405.74 -0.74 4.35 0.53 12.77 10.35 1.80 CATEGORY.
Mirae Asset Hybrid Equity Fund  7,193.99 0.72 5.16 1.80 12.14 9.46 1.74

2 Top 5 MIPs
Baroda BNP Paribas Aggressive Hybrid Fund  787.69 0.80 6.06 2.81 11.98 10.88 2.26
SBI Equity Hybrid Fund  56,709.94 -1.47 2.97 1.09 10.89 9.24 1.46

HYBRID: CONSERVATIVE (DEBT-ORIENTED) Top 5 MIP schemes based on

SBI Conservative Hybrid Fund  6,998.39 0.93 4.40 5.00 10.21 7.90 1.11 3-year SWP returns
ICICI Prudential Regular Savings Fund  3,291.28 1.14 4.08 4.63 8.38 8.01 1.73
Kotak Debt Hybrid Fund  1,637.43 1.16 4.67 4.26 10.07 8.33 1.81 Bank of India Conservative Hybrid Fund
Canara Robeco Conservative Hybrid Fund  1,101.16 0.91 3.10 2.72 8.24 7.82 1.82 12.77
SBI Magnum Children's Benefit Fund  90.08 1.05 3.60 2.42 10.88 7.37 1.18
SBI Magnum Children's Benefit Fund
DEBT: MEDIUM TO LONG TERM 11.69
SBI Magnum Income Fund
Aditya Birla Sun Life Income Fund*


1,500.51
1,514.63
2.18
2.03
3.60
3.07
3.77
2.97
5.94
6.27
6.94
6.81
1.46
0.89
3.77% SBI Conservative Hybrid Fund
THE 1-YEAR 10.25
DEBT: MEDIUM TERM RETURN OF
SBI MAGNUM Kotak Debt Hybrid Fund
ICICI Prudential Medium Term Bond Fund  6,255.30 1.82 3.21 4.74 6.52 6.86 1.42
INCOME IS
Axis Strategic Bond Fund  1,598.41 1.86 3.07 4.16 6.38 6.64 1.08 THE HIGH-
10.17
SBI Magnum Medium Duration Fund  7,145.68 2.09 3.27 3.77 6.32 7.32 1.21 EST IN ITS UTI Regular Savings Fund
HDFC Medium Term Debt Fund  3,690.97 1.90 3.03 3.29 5.77 6.52 1.29 CATEGORY.
10.13
DEBT: SHORT TERM
SWP: SYSTEMATIC % ANNUALISED RETURNS
ICICI Prudential Short Term Fund  15,527.68 1.66 3.48 5.13 6.25 6.92 1.07 5.13% WITHDRAWAL PLAN AS ON 26 JAN 2023
Aditya Birla Sun Life Short Term Fund*  5,007.15 1.62 2.80 4.36 6.35 6.82 1.10
THE 1-YEAR
UTI Short Term Income Fund*  2,245.56 1.70 2.99 4.03 7.41 4.85 0.96 RETURN OF
Large & MidCap:
3
Axis Short Term Fund  6,941.12 1.78 2.81 3.97 5.67 6.68 0.99 ICICI PRU
SHORT TERM
HDFC Short Term Debt Fund 11,258.04 1.78 2.90 3.90 5.96 6.98 0.76
Cash holdings

FUND IS
IDBI Short Term Bond Fund  30.28 1.85 3.03 3.50 8.11 6.22 0.75
THE HIGH-
EST IN ITS
DEBT: DYNAMIC BOND 7.46
CATEGORY.
ICICI Prudential All Seasons Bond Fund  6,264.50 1.68 3.78 5.26 6.73 7.36 1.33
5.98 5.66
Quantum Dynamic Bond Fund  84.30 2.44 3.66 5.15 5.60 6.55 0.73
4.93 4.54
IIFL Dynamic Bond Fund  452.72 1.73 2.82 3.89 5.73 6.06 0.52
Kotak Dynamic Bond Fund  1,998.92 1.76 2.92 2.81 5.54 7.02 1.32
HDFC Dynamic Debt Fund  525.59 1.53 2.88 2.33 5.92 5.11 1.75

DEBT: CORPORATE BOND Expense as on 31 Dec 2022

* : Expense as on before 31
ICICI Prudential Corporate Bond Fund  16,440.10 1.51 3.46 4.96 6.20 7.04 0.53
Dec 2022 Tata Union Sundar- LIC MF SBI Large
Nippon India Corporate Bond Fund  1,581.83 1.99 3.29 4.58 6.07 6.65 0.68
Returns as on 25 Jan 2023 Large & Large & am Large Large & & Midcap
Assets as on 31 Dec 2022 Mid Cap Midcap and Mid Mid Cap Fund
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Rating as on 31 Dec 2022 Fund Fund Cap Fund Fund
Did not find your fund here? % OF ASSETS AS ON 31 DECEMBER 2022
Log on to [Link] for an exhaustive list.

Debt: Medium duration

Methodology
The Top 100 includes only those funds that have a 5- or
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
4 fund lowest expense ratio
4-star rating from Value Research. The rating is determined
by subtracting a fund’s risk score from its return score. Multi-cap: Mostly invested in large- and mid-cap
companies.
FUND
RAISER
The result is assigned stars according to the following 1.21
distribution: Mid-cap: Mostly invested in mid-cap companies. 1.08
0.97
0.91
Top 10% Small-cap: Mostly invested in small-cap companies. 0.80

10.75

 Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
 Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
 Next 22.5% 100 listing) Income: Average maturity varies according to objective.
  Bottom 10%
Fixed-income funds less than 18 months old and equity funds
Gilt: Medium- and long-term; invest in gilt securities.
Equity-oriented: Average equity exposure more
years
than 60%.
was the Macaulay Duration DSP Union Baroda Axis SBI
less than three years old have been excluded. This ensures
that all the funds have existed long enough to be tracked for of Nippon India Nivesh Bond Medium BNP Strategic Magnum
Debt-oriented aggressive: Average equity exposure
consistency of performance. Given the focus on long-term Lakshya Fund in December Fund Duration Paribas Bond Fund
between 25-60%.
investing, liquid funds, short-term funds and FMPs are not Fund
Debt-oriented conservative: Average equity exposure 2022, the highest among
part of the list. For the same reason, we have considered only
the growth option of funds that reinvest returns instead of less than 25%. all debt funds. The average % AS ON 31 DEC 2022

offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity duration of 376 debt funds % EXPENSE RATIO IS CHARGED ANNUALLY.
Despite these rigorous filters, the list includes 2/3 funds of and derivatives. was 2.16 years. 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 [Link]
The fund categories are: market conditions.

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 loans and deposits
18 The Economic Times Wealth January 30-February 5, 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
Bandhan Bank 7.25 10,745 external benchmarks for pricing new home loans. Most banks have
DCB Bank 7.25 10,745 picked the RBI repo rate as the external benchmark.
Indusind Bank 7.00 10,719
RBL Bank 7.00 10,719 REPO RATE: 6.25%
South Indian Bank 7.00 10,719 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
DCB Bank 7.85 11,682 Bank of Maharashtra 8.70 8.35 10.05 8.55 10.55 7 Dec 2022
IDFC First Bank 7.50 11,602 Punjab National Bank 9.00 8.40 8.75 8.20 8.85 8 Dec 2022
Indusind Bank 7.50 11,602 Central Bank of India 9.10 8.55 9.35 8.55 9.35 8 Dec 2022
Axis Bank 7.26 11,548
Canara Bank 8.80 8.55 10.80 8.55 10.80 7 Dec 2022
Bandhan Bank 7.25 11,545
Axis Bank -- 8.60 8.95 8.70 9.05 Not Given
TENURE: 3 YEARS
HDFC Bank -- 8.60 9.50 8.60 9.50 Not Given
DCB Bank 7.85 12,627
Indian Bank 8.95 8.60 9.65 8.60 9.65 8 Dec 2022
AU Small Finance Bank 7.75 12,589
IDFC First Bank 7.50 12,497 Punjab & Sind Bank 8.29 8.60 9.70 8.60 9.60 8 Dec 2022
Indusind Bank 7.50 12,497 Bank of Baroda 8.85 8.60 10.20 8.65 10.30 8 Dec 2022
Union Bank of India 7.30 12,424 Union Bank of India 9.05 8.60 10.45 8.60 10.45 11 Dec 2022
TENURE: 5 YEARS Kotak Mahindra Bank 8.65 8.65 9.00 8.75 9.45 Not Given
DCB Bank 7.60 14,571 Bank of India 9.10 8.65 10.45 8.65 10.60 7 Dec 2022
Indusind Bank 7.25 14,323 Bandhan Bank -- 8.65 14.00 8.65 14.00 9 Dec 2022
AU Small Finance Bank 7.20 14,287 Karnataka Bank -- 8.67 9.99 8.67 9.99 1 Dec 2022
Axis Bank 7.00 14,148
UCO Bank 9.15 8.75 9.75 8.75 9.75 8 Dec 2022
HDFC Bank 7.00 14,148
IDBI Bank 8.85 8.75 10.50 8.85 12.00 12 Dec 2022
J & K Bank 8.85 8.85 12.35 8.85 12.35 10 Dec 2022
Top five senior citizen bank FDs SBI Term Loan 8.90 8.90 9.40 9.10 9.60 15 Dec 2022
Interest rate (%) What `10,000 RBL Bank -- 8.95 9.25 9.05 9.40 7 Dec 2022
TENURE: 1 YEAR compounded qtrly will grow to
Bandhan Bank 7.75 10,798 ICICI Bank -- 8.95 9.70 9.05 9.85 Not Given
DCB Bank 7.75 10,798 Karur Vysya Bank 9.35 8.95 11.85 8.95 11.85 9 Dec 2022
Axis Bank 7.50 10,771 Dhanlaxmi Bank 8.30 9.00 9.65 9.50 10.15 1 Dec 2022
Indusind Bank 7.50 10,771 Indian Overseas Bank 9.10 9.30 9.50 9.30 9.40 10 Dec 2022
RBL Bank 7.50 10,771

TENURE: 2 YEARS
DCB Bank 8.35 11,797
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
Axis Bank 8.01 11,719
@ 7% 1,980 1,161 899 775 707
IDFC First Bank 8.00 11,717
Bandhan Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.35 12,814
@ 9% 2,076 1,267 1,014 900 839
AU Small Finance Bank 8.25 12,776
@ 10% 2,125 1,322 1,075 965 909
Indusind Bank 8.25 12,776
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
IDFC First Bank 8.00 12,682
FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
Axis Bank 7.75 12,589

TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 8.10 14,932
Indusind Bank 8.00 14,859 Sukanya Samriddhi Yojana 7.60 250 1.5 lakh p.a. One account per girl child 80C
Axis Bank 7.75 14,678
AU Small Finance Bank 7.70 14,642 Senior Citizens' Savings Scheme 8.00 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
HDFC Bank 7.50 14,499
Public Provident Fund 7.10 500 1.5 lakh p.a. 15-year tenure, tax-free returns 80C

Kisan Vikas Patra 7.20 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.00 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit 6.60-7.00 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.60 14,571
Indusind Bank 7.25 14,323 Single 4.5 lakh 5-year tenure, monthly returns Nil
Post Office Monthly Income
AU Small Finance Bank 7.20 14,287 7.10 1,000
Scheme
Joint 9 lakh 5-year tenure, monthly returns Nil
Axis Bank 7.00 14,148
City Union Bank 7.00 14,148 Recurring deposits 5.80 100 No limit 5-year tenure Nil

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

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@[Link]) Data as on 25 January 2023 # Benefit available only for 5-year deposit

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 market watch
The Economic Times Wealth January 30-February 5, 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)
48,665 56,909 63,712 67,894 1,028.67 1,042.86 86.55 79.78
25 JAN 2022 25 JAN 2023 25 JAN 2022 25 JAN 2023 25 JAN 2022 25 JAN 2023 25 JAN 2022 24 JAN 2023

PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER

CHANGE
X 1 WEEK 0.67% 1 WEEK -1.59% 1 WEEK 0.10% 1 WEEK 0.38%
X 1 YEAR 16.94% 1 YEAR 6.56% 1 YEAR 1.38% 1 YEAR -7.82%

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)

Softrak Biotech 3.37 26.69 178.51 0.02 -17.60 15.19 Vintron Informatics 5.77 15.17 156.44 2.99 1,812.22 45.24
Jai Mata Glass 2.50 25.63 171.74 5.27 884.58 25.00 Jai Mata Glass 2.50 25.63 171.74 5.27 884.58 25.00
Vintron Informatics 5.77 15.17 156.44 2.99 1,812.22 45.24 Reliance Comm. 2.07 -3.72 11.29 29.03 877.85 572.47
Adcon Capital Services 5.24 4.59 132.89 9.93 110.51 173.65 Leading Leasing Finance 9.55 -9.39 19.97 9.75 845.51 51.00
GCM Capital Advisors 8.61 91.33 96.58 0.42 357.35 14.59 Fone4 Communications 6.71 -16.65 42.77 2.24 810.85 11.44
Mauria Udyog 5.68 3.84 88.08 3.14 352.57 75.66 Consolidated Const. 1.40 0.00 -14.63 1.32 713.72 55.79
Shiva Granito Export 8.27 27.23 67.07 0.50 114.29 10.93 Pressure Sensitive Sys. 8.49 -6.70 20.08 4.26 584.46 125.99
Luharuka Media & Infra 4.66 -22.20 67.03 9.12 310.22 43.66 Advik Capital 3.90 2.90 35.89 22.05 484.49 85.88
Shree Global Tradefin 9.33 14.76 58.40 34.99 70.96 1,186.87 GCM Capital Advisors 8.61 91.33 96.58 0.42 357.35 14.59
Symbiox Investment 6.86 13.01 51.77 5.82 -19.11 21.46 Mauria Udyog 5.68 3.84 88.08 3.14 352.57 75.66

Top price losers Top volume losers

Sadhna Broadcast 6.73 -20.26 -48.43 6.13 99.98 67.50 Ontic Finserve 1.69 -8.15 -29.88 1.92 -89.78 15.21
Sintex Industries 2.63 -8.68 -41.43 10.96 154.81 157.59 GG Engineering 1.32 8.20 -7.69 11.70 -87.18 50.25
Paras Petrofils 1.00 -8.26 -38.65 2.16 -9.97 33.42 Ansal Housing 4.05 0.25 -3.11 1.16 -79.03 24.05
Alstone Textiles (India) 1.49 -13.37 -35.22 113.36 284.98 189.98 Madhav Infra Projects 5.10 -6.42 -0.58 2.56 -77.42 130.66
Sumeet Industries 3.86 -2.28 -32.28 1.11 -23.72 40.01 Future Lifestyle Fashions 8.07 15.29 -2.65 1.23 -72.79 162.81
Greencrest Financial Ser. 1.37 -6.80 -30.10 2.66 153.05 50.07 Integra Essentia 8.31 5.19 3.36 1.51 -71.90 379.77
Ontic Finserve 1.69 -8.15 -29.88 1.92 -89.78 15.21 Saianand Commercial 0.52 -1.89 -8.77 10.17 -70.43 11.81
Nouveau Global Vent. 1.00 -9.09 -26.47 3.46 -67.04 18.55 Shree Ganesh Biotech 1.40 -1.41 -4.76 21.99 -67.81 55.80
Maharashtra Corporation 1.76 -16.98 -25.11 13.59 -55.21 111.16 Sawaca Business Mach. 1.02 -8.93 -12.07 3.24 -67.62 11.67
Earum Pharmaceuticals 2.62 -2.60 -22.94 8.07 38.11 16.17 Nouveau Global Vent. 1.00 -9.09 -26.47 3.46 -67.04 18.55

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 25 JANUARY 2023. SOURCE: ETIG DATABASE AND BLOOMBERG.

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 mutual funds
20 The Economic Times Wealth January 30-February 5, 2023

FRANKLIN INDIA BLUECHIP

Not a strong long-term profile

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

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

Point-to-point returns (%)

BASIC Financial 31.35

FUND BENCHMARK CATEGORY AVERAGE FACTS Technology 14.35

Consumer 8.84
DATE OF LAUNCH Staples
13.07 15.62 14.11 12 JANUARY 1993 Energy 7.70
11.21
10.07 CATEGORY
7.22 7.74 EQUITY Healthcare 6.88
5.41
TYPE
1.08 LARGE CAP The fund runs a heavy tilt towards
financials, apart from overweight
1-YEAR 3-YEAR 5-YEAR
AUM* position in tech stocks.
AS ON 24 JANUARY 2023
`6,495 Crore
BENCHMARK
The fund has lagged its index
and peers over the past year. NIFTY 100 TOTAL
RETURN INDEX Top 5 stocks in portfolio (%)

HDFC Bank 8.77

Rolling returns (%)

WHAT IT ICICI Bank 8.71
COSTS
FUND BENCHMARK
Reliance
13.67 Industries 5.73
1-YEAR
15.32 NAV** Infosys 4.99
GROWTH OPTION
HDFC 4.97
`699.10
10.91
3-YEAR IDCW The fund runs a fairly diversified portfolio
12.19 `43.09 with large positions in a few bets.
MINIMUM INVESTMENT
11.60 `5,000
5-YEAR
12.21 MINIMUM SIP AMOUNT Recent portfolio changes
`500
New Entrants
The fund’s long term track record indicates EXPENSE RATIO*** (%)
AS ON 24 JANUARY 2023 Hindalco Industries, PB Fintech, Tata Steel, ICICI
sharp underperformance relative to index. 1.90
Prudential Life Insurance Company
Note: Different benchmark (S&P BSE 100 TRI) is used due to non availability of stated benchmark data. EXIT LOAD
The above figures denote daily average rolling return over past decade for relevant time frames. 1% for redemption
within 365 days Increasing allocation
Cholamandalam Investment & Finance
WHERE THE FUND INVESTS
*AS ON 31 DECEMBER 2022
**AS ON 24 JANUARY 2023 Company, Delhivery, Larsen & Toubro,
***AS ON 31 DECEMBER 2022 Motherson Sumi Wiring India, Mphasis,
Reliance Industries, Maruti Suzuki India, Tata
Portfolio asset Fund Steel
allocation style box
Growth Blend Value
How risky is it?
Large

Equity 96.45%
CAPITALISATION

Fund Category Index

Large cap 89.52%
Standard Deviation 22.64 22.42 22.45
Medium

Mid cap 10.48%

Small cap NA Sharpe Ratio 0.53 0.56 0.62
FUND
Small

Mean Return 15.65 15.96 17.65

MANAGER
Debt & Cash 3.55%
BASED ON 3-YEAR PERFORMANCE.
INVESTMENT STYLE
VENKATESH SANJEEVI /
ANAND RADHAKRISHNAN The fund’s risk-return profile is
The fund takes modest presence in mid 1 YEAR, 5 MONTHS / inferior to many of its peers.
caps apart from its large caps bias. 15 YEARS, 8 MONTHS
Source: Value Research

Should
This fund has seen some changes aggressive, benchmark agnostic continues. However, the portfolio strong comeback in 2021, it
in investing approach over the style, the new fund manager size, which had been pruned slipped again in 2022, lagging

You past few years, sparked by

changes in lead fund manager.
takes a moderate, benchmark-
aware stance. The value-
earlier, has now expanded again.
This has toned down the outsized
the index sharply. This leaves its
long term return profile weak,

Buy While the previous fund manager

had shifted the fund to a more
conscious approach underpinning
the AMC’s equity philosophy
positions in the portfolio’s top
bets. While the fund made a
needing a lot of catch-up with
index and peers.

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 pick of the week
The Economic Times Wealth January 30-February 5, 2023 21

Aditya Birla Fashion: Growth path

Industry tailwinds, scaling up of brands, prospects of D2C segment and strong fundamentals to drive growth.

A Fundamentals
ditya Birla Fashion and Retail (ABFRL) offers a bou- 12 brands over the next 12 months, and create a portfolio of
quet of leading brands with a strong network of stores around 30 digital-first brands in the next three years.
There is increased focus on improving supply chain by dig- CONSENSUS
and multi-brand outlets across India. It reported a ro- ACTUAL
ESTIMATE
bust 50% y-o-y jump in revenue in the second quarter itising the pre-production process. ABFRL is also focusing on
2021 2022 2023 2024
of 2022-23, supported by demand recovery, aggressive store small towns by encouraging local entrepreneurship, which en-
Revenue (` cr) 5,212.80 8,093.06 12,260.98 14,332.14
expansion, accelerated e-commerce, omnichannel presence, ables quick onboarding of partners, leading to rapid scale-up.
EBITDA(` cr) -408.00 102.89 970.88 1,269.74
increase in footfalls and operating leverage benefits. Fourth, the company’s plan to foray into the D2C segment
According to the consensus of analysts compiled by will help drive long-term growth. In February 2022, the com- Net Income (` cr) -672.51 -108.72 325.36 516.10

Thomson Reuters-Refinitiv, the com- pany’s board approved to set up a Basic EPS (`) -8.23 -1.18 3.35 5.21
pany is expected to report a 12.8% new subsidiary, TMRW, for enter-
y-o-y jump in revenue in the third
Analysts’ views ing the D2C segment. It has an- Valuations PBV PE
DIVIDEND
YIELD (%)
quarter. The management is confi- nounced recently the acquisition Aditya Birla Fashion and Ret. 8.76 66.01 0.00
dent of achieving its 2025-26 revenue 1 of majority stakes in eight digital-
and EBITDA targets, which will help Sell 23 first lifestyle brands. “The idea is Avenue Supermarts 16.75 97.68 0.00
Buy Trent 18.22 118.58 0.14
it turn profitable. The analysts are to take part in the growth stories of
Metro Brands 17.15 332.50 0.28
confident about the prospects of the small brands by providing support
Shoppers Stop 94.84 83.83 0.00
company due to several reasons. (capital, supply chain, technology
First, it will benefit from the
strong prospects of the Indian appar-
and backend support) to improve
their market offerings,” says a Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
el industry. Fast-growing middle- Motilal Oswal report.
class segment, untapped manufac- Fifth, ABFRL has been able to 19 Jan 23 HDFC Research Add 300
turing potential and growing digital control its leverage through fun- 16 Jan 23 Systematix Group Buy 390
consumption are key growth driv- Aditya Birla Fashion is launching new brands draising. It reduced its net debt to 9 Jan 23 Motilal Oswal Securities Buy 380
ers. According to the ABFRL’s 2022 and re-energising existing ones to strengthen its `240 crore in September 2022 quar- 9 Jan 23 Axis Capital Add 350
annual report, the apparel market is position. It plans to create a portfolio of about 30 ter from its peak net debt of `2,400 9 Jan 23 Emkay Buy 365
expected to grow at a CAGR of more brands in the next three years. crore as of March 2020, despite the
than 10% during 2021-22 and 2025-26.
Second, the company’s business segments are expected to
recent series of acquisitions.
Selection methodology: We pick the stock that has shown
Relative performance SENSEX
100 MARKET PRICE: `256.10 104.1
perform better in the future. The growth of ABFRL’s Madura the maximum increase in ‘consensus analyst rating’ during 88.4
Fashion and Lifestyle segment will be driven by aggressive the past month. The consensus rating is arrived at by averag-
e-commerce, omnichannel presence, extension into newer ing all analyst recommendations after attributing weights to
Indian cities and improved market share. The other segment, each of them (5 for strong buy, 4 for buy, 3 for hold, 2 for sell and
Pantaloons, is set to grow aggressively through accelerated 1 for strong sell). An improvement in consensus analyst rating 86.6
network expansion and revamped loyalty program. indicates that the analysts are getting bullish on the stock.
Third, the company is following a comprehensive strategy Only stocks with at least 10 analysts covering them are consid-
to strengthen its position. It is launching new brands and ered. You can see similar consensus analyst rating changes 25 JAN 2022 ADITYA BIRLA FASHION ET RETAIL 25 JAN 2023
re-energising existing ones. It plans to scale up by adding 10- during the past week in ETW 50 table. —Sameer Bhardwaj Aditya Birla Fashion is compared with ET Retail. Stock price and index values
normalised to a base of 100. Source: ETIG and Bloomberg.

WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
*STOCK PRICES AS ON 26 JANUARY

STOCK ADVICE COMMENT

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

Initate with ‘Buy’ due to strong opportunities in urban connectivity and infrastructure, higher book
J Kumar Infraprojects GEPL Capital Buy 266 339 27.4 to bill ratio, healthy balance sheet, robust cash flows and strong execution record in metro and
roads space.
Sequential improvement in revenue in the third quarter, good content pipeline, likely jump in occu-
PVR ICICI Securities Buy 1,678 2,100 25.1 pancies and ad revenues in future, and incremental screen additions post the PVR-INOX merger.
Maintain ‘Buy’ due to robust operating performance in the third quarter, led by strong growth in
IndusInd Bank JM Financial Buy 1,221 1,470 20.4 deposits, loan book, NII, PPOP and core fee income. Decent return ratios, steady asset quality and
undemanding valuations are other key positives.
Recovery in primary issuances, diversification of revenue stream through launch of products for
ICICI Securities Motilal Oswal Buy 513 610 18.9 derivatives segment, and increasing penetration of margin trading funding among its customers.
Strong demand in PV segment, healthy order book, capacity expansion programme, turnaround of
Mahindra & Mahindra Sharekhan Buy 1,321 1,550 17.3 loss-making subsidiaries, likely improvement in FCF, and optimistic outlook of the EV segment.
Maintain ‘Buy’ due to sustained value addition across the powertrain and aluminium business,
Craftsman
AnandRathi Buy 3,351 3,891 16.1 robust demand for M&HCVs and PVs, operational synergies, diversified customer mix, and likely
Automation improvement in margins in the next two years.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Kotak Dissapointing revenue growth in the third quarter, growth slowdown in most verticals, modera-
L&T Technology Services Sell 3,397 3,200 -5.8
Securities tion in discretionary spending, cut in 2022-23 revenue guidance and expensive valuations.

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 QA
your queries

&
22 The Economic Times Wealth January 30-February 5, 2023

I am an NRI. At the time of emigrating in I am a professional, working in a

2000, I invested my entire rupee savings CA firm. Our firm’s gross receipts
into individual equities (self-managed) exceed `50 lakh per annum. How-
which over the years has grown to `10 ever, my salary and share in the
crore with a steady annual `9 lakh of divi- profit are less than `50 lakh per
dend income. I am approaching retirement annum. Presently, the partners of a
and seek a steady monthly income from firm can consider claiming depreci-
these savings. How can I reduce my cur-
rent 100% equity position while remain-
Our panel of experts will answer ation on assets against the remu-
neration from their firms. Any
ing invested in equities for modest / con- questions related to any aspect of other expenditure to be claimed,
servative growth, and simultaneously namely travelling, conveyance,
derive a steady 7-9% (or higher) income? personal finance. If you have a query, books, printing, stationery and so
on, will need to be proportionately
mail it to us right away. apportioned between the exempt
If you are looking at guaranteed returns, profit share and taxable remunera-
you would have to move at least a part of QUESTION OF THE WEEK tion. Should I claim the benefit of
Sec 44 ADA against my remunera-
your investments into debt holdings –
government bonds, debt funds, FDs, tion (salary) from the firm even
though my firm’s gross receipts
small savings, etc. However, you will still I will retire in 2024. My household expense is `60,000 a exceed `50 lakh per annum?
need to hold some part of your corpus as
month. I have homes in Bangalore and Kolkata. I plan to
equity, as annual returns at 7-9% may not
be possible with debt investments alone. live in both places. The retirement corpus will be worth As per the provisions of Section
As a first step, work out the best debt-eq- `2 crore, including `23 lakh in equity; `3 lakh in bank 44ADA, any resident individual who is
uity combination that suits your require- FDs; `38 lakh in NPS; `70 lakh in EPF; `43 lakh in super- engaged in certain specified profes-
ment. Alongside this, it is essential that annuation fund; `13 lakh as gratuity; `9,500 as pension sions u/s Section 44AA and whose to-
you consult a tax specialist about the im- tal gross receipts from such profession
from LIC; wife’s NPS corpus of `10 lakh; wife’s FD sav- does not exceed `50 lakh shall be eli-
pact of LTCG and other applicable taxes ings of `4 lakh. We have family floater plan of `5 lakh
on your existing and future income, so gible to opt for presumptive taxation.
and `45 lakh of super top-up. I have outstanding home Consequently, such an individual has
that you have a realistic picture. Once
this is clear, you’ll have several options to loan of `7 lakh and son’s marriage expense of `15 lakh. I to declare his/her taxable income at
choose from. For instance, you can book put `50,000 per month in NPS Tier 2 and `50,000 in the rate of 50% of the gross receipts,
profits periodically and quit small por- equity and `50,000 a year in NPS Tier 1. I will start a and further such an individual is not
tions of your equity, which you can move bank FD of `50,000 per month with maturity to align entitled to claim deduction of any
to interest-generating things like FDs or kind of business expenses (deprecia-
with post-retirement period. Is it possible to generate tion, travelling, audit fees, etc.). How-
T-bills. The rest remains invested and `1.5 lakh post tax per month from August 2024?
grows. Or you can take a one-time hit and ever, it is pertinent to note that as per
sell 20-30% of your equity and use that the judgment pronounced by the Ma-
money to buy fixed income generating dras High Court, it was held that such
You have already decided to use monthly `50,000 FDs for the next remuneration and interest received
instruments like bonds or debt funds or
1.5 years, which combined with LIC pension, will take care of the first from a firm would be considered as
debt-oriented hybrid funds, or anything
years of your retirement. Your son’s marriage is assumed to be in the ‘profits and gains from business or
that satisfies your requirement on re-
short term. The money coming from gratuity and leave encashment profession’ of the recipient-partner,
turns. Do factor in tax and
(`13+ lakh) can be earmarked for this goal. It is assumed your home however, that by itself would not
inflation while calculat-
loan would be over with your superannuation and hence, the `7 lakh translate such remuneration and in-
ing your returns.
outstanding today will be over by 2024. terest to gross receipts or turnover of
It is not clear why your monthly expenses will shoot up from business independently carried on by
Adhil Shetty `60,000 to `1.5 lakh. The current asset base earmarked for retire- a partner. It also mentioned that the
CEO, BankBazaar ment ( `1.9 crore), even when funded via an extra `50,000 monthly in assessee who is an individual in the
NPS and `50,000 in equities and EPF contributions, may not be instant case is not carrying on any
enough to generate `1.5 lakh monthly from 2024 till you are 90. Re- business. Therefore, the remuneration
assess the need for `1.5 lakh vs the current requirement of `60,000. and interest received by the assessee
I am a pensioner with employer pension, Assuming you can settle for a lower monthly income, here is what
SCSS, PMVVY, etc, amounting to around `5 from the partnership firm cannot be
can be done. Let your monthly `50,000 each in NPS, equity and EPF termed to be a turnover of the asses-
lakh per annum as income. A month ago,
my 5-year RD in the Post Office fetched continue. On retirement, delay EPF withdrawal. This will generate 8% see [individual]. Similarly, it will also
me about `15 lakh. How should I account plus in tax-free returns for a few more years. Your ongoing FD strate- not qualify for gross receipts.
this amount while filing tax returns? gy will take care of expenses up to 2026. The superannuation payout Hence, by applying the aforemen-
of `43 lakh in 2024 can be parked in SCSS, PMVVY and debt funds. tioned ruling, since you are working
You need to ascertain what portion of Once your FDs are exhausted, you can use the interest payouts from as a professional in a CA firm, remu-
these maturity proceeds are principal SCSS/PMVVY and SWP from debt funds to manage expenses. Later, neration received by you from the
repayment and what portion is interest. you may have to transfer funds from NPS Tier 2 account to these debt firm cannot be treated as gross re-
It is ideal to offer the interest received instruments to replenish. The annuitization of NPS Tier 1 corpus may ceipts for the purpose of opting for
on recurring deposits to tax every year not lead to any significant pension in your case as the bulk of the presumptive taxation. However, if you
rather than on maturity. Doing this on money is going towards the Tier 2 account. are receiving fees from any other par-
maturity concentrates the tax outgo to When your EPF is withdrawn (in 2029-30), park more funds in a ty for providing professional services
one year and may even push you into a combination of debt instruments and a small portion towards increas- that are beyond the partner’s capacity
higher tax slab. Now you need to get the ing equity exposure a bit. There wouldn’t have been any would be included in
interest certificates from bank for every need to withdraw funds from your equity corpus the gross receipt.
financial year since inception of the de- which would have been growing by itself. A few
posit and calculate the interest amount. year’s down the line, once you have decided
You need to offer it to tax as oth- which will be your primary residence, consider
Amit Maheshwari
er income at your slab rate. selling off the other property to prop up retire- Partner, AKM Global
There is deduction of ment corpus. Your current health insurance
`50,000 under 80TTB coverage seems sufficient. Your wife’s FD of `4
on interest received. lakh can be kept as a buffer for unexpected or
unplanned expenses.
Ask our experts
Shubham Agrawal Dev Ashish Have a question for the experts?
Senior Taxation Advisor, [Link] Founder, StableInvestor and Sebi-registered investment advisor etwealth@[Link]

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 tax optimiser
The Economic Times Wealth January 30-February 5, 2023 23

Use LTA, NPS to cut tax by `1 lakh

Sudhir Kaushik of [Link] tells readers how they can
optimise their tax by rejigging their income and investments.

P
une-based IT professional
Arjun Kulshreshta earns
well but pays a very high
tax because his pay struc-
ture is not tax friendly and INCOME
he doesn’t avail of all the deductions
available to him. Taxspanner esti-
FROM EMPLOYER
mates that Kulshreshta can save more
than `1 lakh in tax if he claims exemp-
tion for LTA, his salary structure is INCOME HEAD CURRENT SUGGESTED
rejigged to include some tax free perks
and he invests in the NPS on his own. Basic salary 11,67,702 11,67,702
Kulshreshta has not claimed LTA Reduce this taxable
House rent allowance 7,00,620 7,00,620 portion of the pay
exemption in the past 2-3 years due to
the pandemic. If he travels with the package.
Special allowance 11,92,302 10,02,302
family, he can claim exemption which Ask for telephone
will reduce his tax by about `30,000. Car allowance 1,24,998 1,24,998 and internet
Next, he should ask his company for allowance.
Telephone 0 36,000
some basic perks such as telephone These perks are
allowance, newspaper bill reimburse- Meal coupons 0 22,000 tax free subject to
ments and meal coupons. If he gets actual usage and
`22,000 worth of meal coupons, a Newspaper allowance 0 12,000 reasonable limits.
newspaper allowance of `1,000 and tel- Gadgets for
ephone allowance of `3,000 a month, Gadget allowance 0 1,20,000
personal use are
his annual tax will reduce by `22,000. LTA 97,308 97,308 taxed at 10% of
Kulshreshta gets the NPS benefit value.
from his company which saves him a Other incentives and bonus 6,82,389 6,82,389 This is tax free if
lot of tax. He can save `15,600 more in claimed twice in
tax by investing `50,000 in the NPS on Employer's contribution to Provident Fund 1,40,124 1,40,124 block of four years.
his own.
Contribution to NPS under Sec 80CCD(2) 1,16,770 1,16,770
Given the work from home ar-
rangment, Kulshreshta should ask TOTAL 42,22,213 42,22,213
his company for a gadget allowance.
Under Section 17(2), gadgets bought in
the name of the company and given to
the employee for personal use are taxed INCOME FROM OTHER SOURCES
at only 10% of the value. If Kulshreshta Switch to debt
gets `1.2 lakh a year (`10,000 per Interest income 2,300 0 funds to avoid tax
month), his annual tax will reduce by on interest.
Capital gains 0 0
around `37,000.
He should also consider buying a Rental income 0 0
health cover for his senior citizen par-
ents. A premium of `40,000 per year
TOTAL 2,300 0
will save him around `12,000 in tax. All figures are in `

Denotes suggestion to increase Denotes suggestion to reduce

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

Provident Fund 1,40,124 1,40,124

Life insurance 30,000 30,000 Invest more in Arjun

NPS and save
Kulshreshta’s tax TOTAL TAX SAVED WRITE
NPS under Sec 80CCD(1b) 0 50,000 tax.
TO US
TOTAL ADMISSIBLE 1,50,000 2,00,000 TAX ON
SALARY
TAX ON
OTHER
INCOME
TAX ON
CAPITAL
GAINS `1,05,958 FOR HELP
CURRENT PER YEAR Paying too much
tax? Write to us
Other deductions `9,11,857 718 0 TAX RATIO
at etwealth@
[Link] with
(Total tax as % of annual income)
‘Optimise my tax’
EXEMPTION OR CURRENT SUGGESTED
DEDUCTION ( `) ( `) `9,12,575 as the subject. Our
EXISTING SUGGESTED experts will tell you
( `) ( `) how to reduce your
Home loan interest 2,00,000 2,00,000 SUGGESTED tax by rejigging your
Medical insurance 17,700 17,700 `8,06,617 0 0
21.6% 19.1% pay and investments.

TOTAL 2,17,700 2,17,700 `8,06,617

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 your feedback & more...
24 The Economic Times Wealth January 30-February 5, 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.
This is with reference to your article, premium, and enhancing the 80TTB
‘The curious case of Quant AMC funds’.
The successful performance of the Benefits of passivee relief up to `1 lakh are urgently required.
B.P. Sarkar
funds is due to application of different
strategies and formulae instead of
sticking on to the benchmark index, and
investments The article, ‘5 financial challenges faced
by senior citizens’, was insightful. Senior
selling at the right time. The majority of The cover story on franchise busi- citizens are vulnerable to many frauds in
the investors are not aware as to when to ness marvellously decoded various different manners. I experienced it first
exit from a fund. dimensions of franchise spectrum hand a few years ago when a bank official
H.V.M. Rao and minutely worked on nuances. tried selling a Ulip to my retired father on
People with entrepreneurial skill, the pretext of a guaranteed plan. It was
I agree with Dhirendra Kumar’s advice employed in various sectors but will- only when I raised questions, thanks to my
in ‘Goals, portfolios and risk tolerance’ ing to quit and venture into business, financial awareness due to ET Wealth, that
that merely starting SIPs in mutual funds have been guided commendably. The the bank personnel budged.
is not the end. Gradual risk reduction wide range of franchise as suggested Arup Choudhury
is overlooked and it is a must when a in the story has nicely scaled scope of
financial goal approaches. To lower the business for every segment of en- A thought-provoking article by Uma
risk in porfolio, one must lessen equity trepreneurs. Though it is advisable Shashikant on ‘Why women shun
component and allocate higher to debt. to start early if business is a career workplaces.’ Motherhood cannot be
Santu Mondal option, yet delayed decision after cor- delegated or outsourced. So, it becomes
porate jobs comes with an advantage a mother’s responsibility to bring up a
Riju Mehta’s article, ‘Financial of experience and skill. good citizen of India. Family support
challenges faced by senior citizens’, was Vinod Johri system turns into obligation and trust
a helpful guide for seniors on investing on daycare and babysitter is highly
their retirement corpus at various questionable. Also, other than a dream
phases of their golden years, as well as apreciation of the corpus. However, for government in the form of enhancing career, one also dreams of travel, hobbies
in acheiving the elusive golden trifecta the average retired, pensionless person basic exmption relief in income tax , and some ‘me’ time. These are sacrified
of capital protection, regular income living off of bank FDs and post office making SCSS and PMVVY earning for a growth in career.
generation and inflation-beating savings, active handholding by the tax-free, giving GST relief in mediclaim Mangala Krishnamurthy

REALTY Choice living area in Mumbai

HOT SPOT Andheri East has residential projects by reputed builders as well as key employment centres.

Supply by BHK
LOCALITY SNAPSHOT
ANDHERI EAST, MUMBAI 1 BHK 25%
Andheri East is an established micro-market boasting excellent connectivity and developed social infrastructure.
2 BHK 48%
Well-connected via Western and Harbour Railways, Western Express Highway (WEH), Jogeshwari-Vikhroli Link Road (JVLR)
and Metro Line-1
3 BHK 21%
Hosts mid and high-rise projects by reputed developers such as Lodha, Godrej Properties, etc.
Key employment centres: Technopolis Knowledge Park, Marol MIDC, SEEPZ and Chakala MIDC. 4 BHK 6%
Hospitals: Seven Hills, Holy Spirit | Schools: St. Dominic Savio, CP Goenka | Retail: Phoenix Marketcity, Infinity.
Consumer preference
PRICE RANGE: `13,500-23,500 psf DISTANCES: CSMI Airport: 3 km Andheri Railway Station: 0 km WEH: 0 km by budget (`)

8%
1 BHK Top Capital Value 2 BHK Rent Below 1 crore
420 (sqft) 23%
Locality (`/sqft) (`/month) 20% 1-2 crore

`75
lakh (avg)
Jo
ge
sh
2-3 crore
Above 3 crore
wa
ri- Andheri East 14,000-21,500 47,000-60,000 49%
Jogeshwari(E) Vi
kh
Andheri (W) ro
li L
ink Chandivali 15,500-22,500 48,500-65,000
2 BHK Chakala Andheri(E) SEEPZ Ro
700 (sqft) MIDC Marol ad
WEH

Consumer preference
1.30
`crore Mumbai
Technopolis Marol Chandivali
Knowledge MIDC
Jogeshwari Vikhroli by carpet area (sqft)
(avg) Park Link Road 16,000-23,500 49,000-70,000
9%
Below 550
3 BHK CSMI Marol 13,500-21,000 46,500-55,000 25%
Airport 20% 550-850
1,050 (sqft)
850-1,150
2.05
`crore Jogeshwari East 14,500-22,000 48,000-60,500 46% Above 1,150
(avg)
Note: Map not to scale *Capital Value on Carpet Area

Schools 20+ Hospitals 20+ Restaurants 20+ Banks 20+ Grocery Stores 20+ Petrol Pumps 20+ In dia’s No. 1 P ropert y Sit e

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

The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of PUBLISHED FOR THE PROPRIETORS, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110 002,
this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP. Regd. Office:
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times Dr Dadabhai Naoroji Road, Mumbai 400 001. EDITOR: Babar Zaidi (Responsible for selection of news under PRB Act). © Reproduction in whole or in
Wealth will not be liable for any direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers part without written permission of the publisher is prohibited. All rights reserved.
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions. RNI NO. DELENG/2011/37994. MADE IN NEW DELHI VOLUME 13 NO. 05

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