NG 3.7 PubDate: 02-12-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWDFP User: manish.

kumar10 Time: 11-29-2024 16:31 Color:

THE ECONOMIC TIMES “RECENT

MARKET
CORRECTION
HAS REDUCED
VALUATION
EXCESS”
P6
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 14 No. 49 | December 2-8, 2024 | 24 pages | `8

ARE YOU
INVESTING OR
GAMBLING? Consider these red
flags to avoid losing
your money to risky
investment decisions.
P2

DON’T
IS DOMAIN WORKSHEET
TIME
FLIPPING FOR
THE
LUCRATIVE? RETIREMENT
MARKET
P10 P13
P7

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP2 User: manish.kumar10 Time: 11-29-2024 16:35 Color:

cover story
02 The Economic Times Wealth December 2-8, 2024

ARE YOU INVESTING

OR GAMBLING?
Consider these red flags to avoid
losing your money to risky
investment decisions.
GETTYIMAGES

By Riju Mehta covery mode now, the loss irredeemable. gives people a false sense of overconfidence come easily accessible, often blurring the

W
While this may seem like a unique case and the thrill of making quick money,” lines between investing and gambling,”
hen Delhi-based doctor, of reckless investing, it’s a mounting reali- says Abhijit Bhave, Managing Director says Atul Shinghal, Founder & CEO,
Vineet Verma (name ty for many Indians wanting to make quick and CEO, Equirus Wealth. Scripbox.
changed), wanted to set money, be it for thrill, financial emergency, Considering the magnitude of such While many high-risk, high-return op-
up his own clinic in 2022, driven by greed, or incredibly enough, as losses and the manner in which these are tions, such as F&O and cryptocurrencies,
he needed a large sum of an investment option for financial goals. incurred, could it be considered investing act as a magnet for people, there are other
money. A friend introduced him to futures According to a study released by market or does it lapse into gambling? Is there a factors that contribute to the slide from
& options (F&O), and though Verma knew regulator, Sebi, in September this year, clear distinction between the two (see How investing to gambling. These can range
nothing about derivatives, he jumped in nearly 93% of over one crore individual investing differs from gambling), or does the from cognitive biases and personality
with `40 lakh because his friend claimed F&O traders incurred average losses of transition from one to another take place traits that make people predisposed to such
to have doubled his money in a short time. around `2 lakh per trader between 2021-22 imperceptibly? behaviour, to sheer ignorance about invest-
Soon enough, Verma suffered massive and 2023-24, while the top 3.5% (four lakh) “If someone doesn’t know why he is ing options. All these ultimately result in
losses. Shocked, he put in more money to loss-makers faced an average loss of `28 investing and doesn’t understand the massive losses for investors, impacting
recoup the losses. When this sum disap- lakh per person. product in which he is investing, he can’t their financial goals, families, lives and
peared as well, he sold his car and re- The upward trend in the markets for know the outcome and is playing blind. livelihoods.
entered the market, angry and vengeful. the past few years hasn’t helped. “In the Gambling is essentially about playing If you think you too are at risk of falling
Within six months, he was down by nearly 3-4 years after the pandemic, new equity blind and taking a chance,” says Dinesh prey to these temptations, but do not want
`1 crore and was ready to sell his house. investors have experienced a broad-based Rohira, CEO & Founder, 5nance.com. “In to lose your hard-earned money, this cover
This is when his wife intervened and they rally without significant volatility. When today’s fast-paced digital world, various story is for you. In the following pages, we
approached a psychologist. Verma is in re- most investments are making profits, it financial products and activities have be- shall try to explain the difference between

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP3 User: manish.kumar10 Time: 11-29-2024 16:37 Color:

cover story
The Economic Times Wealth December 2-8, 2024 03

investment and gambling, and list the red

flags that can prevent your descent into the
latter and help protect your wealth.
How investing differs
from gambling
INVESTMENT VS GAMBLING Find out if you are swerving into the
One of the main differences between danger zone when it comes to investing.
investing and gambling is whether your
investment is based on a clear, long-term
strategy or you are riding on pure chance
and focused only on winning. Another dif-
ferentiator is if you are taking calculated
risks, or are so focused on rewards that you
haven’t considered the excessive risk that
can wipe out your savings.
“If done with knowledge and risk as-
sessment, it is an investment, whereas
gambling is the act of putting in money
INVESTING GAMBLING
with the sole purpose of winning,”
Clear purpose or Making quick money;
says Nayamat Bawa, Founder, La
financial objective.
OBJECTIVE thrill of chase.
Esperanza, Psychotherapy & Counselling,
Chandigarh.
Disciplined Money invested
“To a layman, gambling and investment
strategy, with an idea of on chance. No idea
in risky products appear to be two sides of outcome. Specified goal
STRATEGY about outcome. No
the same coin, but they are different. The value and time horizon. plan or time frame.
difference lies in one’s purpose or reason
No risk assessment.
for investing, one’s thoughts at the time of Calculated risks. RISK Very high risk.
investing, and the product one is invest-
ing in,” says Dr Ruby Ahuja, Consulting Returns assessed before
Psychologist and Founder, Cognitivee. No estimate of returns.
investing. Likely to
generate positive returns
RETURNS More likely to generate
So if you have no idea about the negative returns.
reason or product you are investing over the long term.
in, do not realise the outcome of your
Proper research & working
actions, and don’t know when to stop, RESEARCH & No research. Ignorance
knowledge of investing
you are essentially gambling. “Two
instruments. KNOWLEDGE about investing options.
common behavioural traits in gambling
are recklessness, without caring for
Rational and objective, DECISION- Irrational, impulsive and
consequences, and not knowing when to without emotional swings. MAKING emotional decisions.
stop. Smart investors, on the other hand,
will invest in very high-risk products No safeguards. Spirals
Stop-loss safeguards in DAMAGE
only as much as they are willing to lose out of control, with
place; losses can be limited. CONTROL extensive losses.
completely, setting realistic loss limits on
their capital,” says Bhave.
“When the behaviour associated with
investing mirrors that of gambling, such
as chasing losses, compulsive trading or ing behaviour that are akin to gambling is bound to veer into gambling. Here are the can lead to poor decisions like taking loans,
experiencing emotional highs and lows, crucial to stopping oneself from falling into warning signs you should pay heed to. spending all your money, and secretive
it can be considered gambling,” says these patterns. Quick gains and greed: If your only con- behaviour around financial activities,”
Shinghal. cern is making a large amount of money, says Bawa. Pune’s Saksham Singh knows it
INVESTING FOR WRONG REASONS: If you as fast as possible, with no regard to risk well. He entered the market in 2020 to earn
don’t have a rational, well thought-out plan and no knowledge of the investing product, more to buy a bigger house, but did not take
RED FLAGS to reach a certain financial milestone with you are most certainly headed for colossal his wife into confidence. He not only lost
Recognising the red flags of risky invest- a good estimate of the risk involved, you are losses. “Constant preoccupation with gains `40 lakh, but his sleep and self-esteem as

Vineet Verma, 42, Doctor, Delhi Saksham Singh,

34, Chartered accountant, Pune
Total money lost
`1 crore Total money lost
Invested in `40 lakh
Futures & options Invested in
Started investing in Stock market
2022 Started investing in
Time taken for combined loss 2020
6 months Time taken for combined loss

WHY INVESTING TURNED TO GAMBLING

3 years
Wanted quick money. WHY INVESTING TURNED TO GAMBLING
No knowledge of F&O investing. Wanted more money for a bigger house.
Limited knowledge of equity investing.
Biases at work
Survivorship bias & Revenge investing Biases at work
Note: All names have been changed to protect identities. Loss aversion & Gambler’s fallacy

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP4 User: manish.kumar10 Time: 11-29-2024 16:47 Color:

cover story
04 The Economic Times Wealth December 2-8, 2024

At high risk are…

…investors with the following traits who are drawn to these investment options.

Stay away from high-risk investments if These complex options provide an adrenaline
you have these traits. rush, but can lead to heavy losses.
Day trading
The fast pace and
Highly emotional Instant high frequency
You feel the highs and gratification of trading, where
lows very acutely. You cannot wait too securities are
INVESTOR long for rewards bought and sold the
and returns. same day, draws in
investors looking
Low boredom for the high of
INVESTMEN
threshold Escapism TS instant gains.
You are an In trying to escape an
adrenaline junky unpleasant situation or
craving excitement emotion, you turn to
and stimulation. excitement.

Impulsivity Overconfidence
You act and Futures & options Unlisted stocks, Cryptocurrencies Penny stocks/
You are extremely
react without These leveraged products startups Again, lack of small caps
positive about
thinking about can offer very high The thrill of chasing knowledge about The high volatility
results and feel that
consequences. profits, but also heavy the unknown how these operate associated with these
the odds are always
in your favour. losses. The gains pull in attracts investors and the lure of products is often
investors who rush in who ignore high risk instant gains draw overlooked by investors
without understanding and enter with poor investors who want who are banking on
their complexity and research or any idea to make a quick the possibility of
suffer big losses. about outcomes. buck. outstanding returns.

well. It was only when his spouse noted his vestment idea, it’s a hard-sell,” she adds.
rising anxiety and inability to sleep that
they approached a counsellor. NO KNOWLEDGE OF HIGH-RISK Akshay Saxena,
Thrill & dopamine rush: This is one INVESTMENT OPTIONS: If you have no 41, Stock broker, Mumbai
of the biggest traps. “The excitement of idea how an investment product works,
high returns on a small investment can be don’t invest. This is especially true of high-
very enticing. This risk-reward dynamic risk options such as F&O, cryptos, day
Total money lost
triggers the release of dopamine, a neuro- trading, penny stocks, small caps, sectoral `75 lakh
transmitter associated with pleasure and funds, non-fungible tokens, or online bet-
Invested via
reward, making the experience highly en- ting, where the high returns appear attrac-
joyable,” says Shinghal. tive, but can also lead to massive losses. Day trading
Ahuja agrees. “Risky behaviours are “Any investment made without knowing Started investing in
usually emotionally charged and stem the downside risks or keeping in place a
from our need to seek thrill. The unpredict- stop-loss can lead to gambling. This is also 2018
ability and uncertainty associated with true of derivatives, where the gains and Time taken for combined loss
these activate the brain’s fight-or-flight
response, making the experience inher-
losses can be disproportionately high but,
in most cases, the entire capital is wiped
5-6 years
ently exhilarating,” she says. Winning also out,” says Bhave. Even unlisted stocks and WHY INVESTING TURNED TO GAMBLING
gives a temporary sense of euphoria which startups have begun to catch the fancy of
can be a distraction from a deep trauma or investors who put in money without due Alcohol abuse during Covid clouded
some emotional distress. diligence and end up with big losses. his judgement
Following the masses: Much like “Speculative excesses happen when the
Verma, many investors are sold on their decision to buy is not backed by rational
Biases at work
friends’ or colleagues’ claims of large value considerations. Just three years ago, Illusion of control & Overconfidence
profits made via trading, F&O, crypto, global investors were willing to pay $22 bil-
startups, etc. However, what is usually not lion for Byju’s. Today, it may be worth noth- the conviction of the investment or trade,” PERSONALITY TRAITS: “Some people are
shared is the heavy losses suffered by them ing. The only consistent part of the story is says Rohira. more predisposed to risky behaviours due
on investments that they didn’t under- that it was always a loss-making company,” So, just to prove you made the right to a combination of psychological, biologi-
stand. Do not run after social media influ- says Mota. choice, you may refuse to let go of a falling cal and environmental factors,” says Dr.
encers bragging about their crypto wins or stock or an underperforming fund. Or, con- Ahuja. Individuals high on impulsivity,
penny stock profits, or chase stocks that the EMOTIONAL RESPONSES & COGNITIVE tinue to put good money after the bad chas- sensation-seeking, or novelty-seeking are
masses are enamoured by. BIASES: These are one of the biggest red ing losses as you’re more deeply affected naturally drawn to high-risk scenarios,
“Peter Lynch said that one should be flags one needs to take note of because they by a loss than a win (loss aversion bias). while overconfidence or a limited under-
cautious when the liftman and office boy often strike subconsciously and without Or, you believe that you can influence the standing of risk can amplify risky deci-
start giving you stock tips. It’s a bad sign warning, making them difficult to control. outcome through your skills even when sion-making, she adds. If you are aware
when everyone only wants to be a buyer,” These include behavioural biases and deep the odds are stacked against you (illusion of these traits, it may be best to stay away
says Nehal Mota, Co-founder and CEO, emotional reactions (see How biases lead of control bias). Similarly, emotional re- from risky investment options (see At high
Finnovate. “If promoters, institutional to gambling). “You may be able to control sponses triggered by anxiety, fear, anger or risk are...).
investors and family offices are selling the why and how of investing if you are desperation can lead to irrational and poor
out and small investors are buying, it’s not disciplined, but one of the practical prob- investing choices that inevitably result in
a good sign. If every media channel and lems of gambling is when the conviction to losses. If you are aware of your reactions,
HOW TO AVOID IT
newspaper is singing paeans to a new in- prove yourself right becomes bigger than avoid high-risk investments. One should first accept that there is no

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP5 User: manish.kumar10 Time: 11-29-2024 16:48 Color:

cover story
The Economic Times Wealth December 2-8, 2024 05

Red flags: How biases lead to gambling shortcut to building a safe corpus. One
must not only take time and effort to
educate oneself about investing options,
These cognitive biases and traits at different stages of investing can turn the process into a gamble. but also adopt safe practices, especially
Sensation-seeking Greed, or desire Social proofing while dealing with riskier products.
This personality trait for quick, big This is a psychological Focus on goals, invest for the long
makes people look for gains phenomenon where term: Your best bet to protect your in-
exciting, intense, new This need for unsure investors mimic vestments is to align these with your
STAGE 1 experiences, typical of ‘making a killing’ those who have had good financial goals and time horizon. “Ask
gamblers. This usually drives most experiences in a particular yourself if the investment fits into your
translates to different, gamblers, as well type of investment. So
long-term financial plan and meets your
REASON high-risk investments like as investors with when they see people
futures & options, day making huge gains in risk parameters. If it doesn’t, then it is
FOR no knowledge of
trading or cryptos. products, or those crypto or penny stocks, best avoided. This is a good suraksha
INVESTING they will follow suit.
in financial distress. kavach against getting caught up in ex-
cesses,” says Mota.
Limit exposure: “You should not have
more than 20% of your investible surplus
in riskier options such as F&O, penny
Herd mentality Survivorship bias STAGE 2 stocks or cryptos. It should be the capital
Investor segments with no This bias makes people invest by focusing only
knowledge of investing and low on selective information put out in the public. So you are willing to forego,” says Rohira.
socio-economic profiles typically when friends or influencers declare the fortune PRODUCT Agrees Bhave, “One should have a small
follow what the masses are doing. made via day trading or derivatives without part of the capital earmarked for specula-
If you don’t know why or how mentioning their losses, people rush to make SELECTION
tive activities and the balance should be
you are investing, it’s a gamble. poor investing choices.
invested for the long term and diversified
across asset classes. By maintaining this
balance, one can pursue the appetite for
risk while safeguarding the overall port-
STAGE 3 Illusion of control bias Optimism bias folio from substantial losses.”
A bias common to gamblers, this makes This makes a person overestimate
investors believe they can control the the likelihood of positive outcomes Set safeguards: “You must define stop-
EARLY loss limits in all high-risk assets and it
outcome of an investment when, in fact, and underestimate the possibility
RETURNS they can’t. This leads them to invest more of negative results. So early profits should be logically defined. You can’t buy
(in case of in an instrument that they may know give the illusion of ability and penny stocks and say your stop-loss is
profits) nothing about, and result in losses. belief that they will always win. 10%. It is bound to hit the stop-loss limit.
You should be ready to take a 20-25% cut
in a penny stock,” says Rohira. Similarly,
know when to stop chasing losses in any
STAGE 4 risky investment.
Revenge trading Emotional instability
This is a trait that makes people dig a deeper This trait is typical of gamblers who Diversify: Diversify across asset class-
investing grave for themselves in an effort to are impacted very strongly by even MID-STAGE es to ensure that even if you incur losses
redeem their losses. Angered by a loss, they small wins or losses. In investment, it RETURNS in high-risk options, your portfolio will
invest more as a way to avenge it, almost translates to irrational decisions and (massive
continue to be safe and on track. “It not
always ending in a bigger loss. imminent large losses. losses)
only reduces the impact of market vola-
tility, but also ensures that investments
are aligned with financial goals, time ho-
rizon and risk tolerance,” says Bhave.
STAGE 5 Loss aversion bias Gambler’s fallacy Seek counselling: If the losses become
This bias makes people averse to losses This bias, very visible in gamblers, makes an untenable and start to affect your fam-
because losing a small amount affects them investor believe that a random outcome is
ily and financial life, seek professional
END STAGE more deeply than earning a bigger amount. more likely because a series of opposite events
(compounding To redeem the financial loss and fallen pride, has happened. So if they have been incurring help. Hire a financial adviser to get your
losses) they keep investing in a losing stock, putting losses in a stock for a long time, they are finances back on track and seek cogni-
good money after the bad. convinced that it will make a comeback soon. tive behavioural therapy to address the
underlying issues and develop healthier
coping mechanisms.

Limit allocation to high-risk products Set stop-loss safeguards If you don’t understand, don’t invest
Assign a fixed percentage of your investible Whether you are investing Do not invest in a product you know
surplus, say 10-20%, to risky options like in penny stocks or options, nothing about and have not researched.
derivatives or penny stocks. This should be don’t ever breach the stop- Don’t invest just because others are earn-
the amount you are willing to lose without loss limit you have set for ing high returns. For instance, not many
impacting your financial goals. Don’t use per- yourself. This discipline is people understand how cryptocurrency
sonal assets for high-risk, high-return options. crucial for not slipping into works, but invest as they have heard
the gambling mode. others making a quick fortune.

Protect your Don’t chase losses

The quickest way to slip from
Know your personality, automate
If you realise you are impulsive, emotional
Have an emergency fund
A big reason for people resort-
investments investing to gambling is try-
ing to redeem compounding
losses. The minute you breach
and love risks, automate your investments
so that personal intervention is minimised.
Go for mutual funds via SIPs, instead of day
ing to get-rich-quick investing
options is a sudden financial
emergency or distress. A
These pointers should help your stop-loss limit, cut your trading. Set boundaries, be it in amount contingency fund can usually
you strategise and save your losses and quit. The longer invested or losses you’re willing to incur. take care of such dire situations
you stay, the bigger your Diversify investments, instead of only without the need for high-risk
money from risky speculation. losses. investing in crypto or penny stocks. investments.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP6 User: manish.kumar10 Time: 11-29-2024 16:11 Color:

interview
06 The Economic Times Wealth December 2-8, 2024

“Recent market correction has

reduced valuation excess”
While revenue may continue to grow at a reasonable pace, earnings growth may be harder to deliver
with the tailwinds from lower raw material costs behind us, Chirag Setalvad tells Sanket Dhanorkar.
profitability across large-, mid- and small- in our funds. Having said that, some cash
cap companies. This was due to a combina- build-up from time to time does happen due
tion of cost-cutting, benign raw material to stock-specific decisions and in order to
costs and operating leverage. It has played a create flexibility in a rising volatility envi-
big role in the robust equity market perfor- ronment. Keep in mind that the cash drag
mance over the past few years. One needs in a fast-rising market can be significant,
to temper down expectations of earnings but in more normal or volatile times, this
growth. While revenue may continue to impact tends to come down and enables us
grow at a reasonable pace, earnings growth to take advantage of market downturns.
may be harder to deliver with the tailwinds
from lower raw material costs behind us. Apart from the Defence Fund, HDFC
AMC has refrained from stopping fresh
By when do you expect the RBI to start subscriptions in other equity strategies,
cutting interest rates? unlike many others. Were you comfort-
Globally, growth and inflation have come able absorbing money in the small- and
down and most major central banks, includ- mid-cap funds?
ing the US Fed, have started an easing cycle While there is money coming in, it is not a
that is expected to continue into 2025. The gush, but a steady inflow, and this allows
RBI has also changed its stance to neutral us to continue to manage these funds as we
considering the eas- have done historically.
ing domestic growth Despite running rela-
and inflation remain- “Mid- and small-cap tively large AUMs, our
ing relatively well- small- and mid-cap prod-
behaved (barring valuations, which ucts have maintained
occasional spikes due
to vegetable prices).
had become inflated, their overall style and
approach. As long as we
This change in have also tempered don’t see a change in our
stance by the RBI pro- portfolio management
vides flexibility to re- but remain above (style, diversification,
act in case there are
any signs of further
long-term averages.” average market cap,
etc.), we will continue to
growth deterioration accept money. But if we
or inflation falling sharply. While the con- see the product getting compromised in any
sensus expectation for a rate cut is sometime way at all, we will not hesitate to constrain
in the first half of the next calendar year, the flows at an appropriate time.
exact timing will be a function of how quick-
How are you assessing the market correc- HDFC Mid Cap Opportunities has so far
Chirag Setalvad tion? Will it be short-lived or prolonged?
ly inflation eases after the arrival of new
kharif crops, domestic growth trajectory, proven that size is no constraint for per-
formance. How are you adapting as the
Head, Equities, After a sharp outperformance of equities,
especially that of small and mid caps, the
potential impact of the US policies under the
new regime, among other factors. fund crosses `75,000 crore AUM?
HDFC AMC market was ripe for a correction. It was
precipitated by a combination of large FPI Are valuations comfortable now? Which
The fund size has grown over time, not
only due to periodic fresh inflows, but
outflows, weak second quarter earnings/ pockets provide a good opportunity? significantly due to capital appreciation.
earnings downgrades, rising US bond yields The broad market correction over the past Our investment philosophy and stock se-
and the global economic uncertainty. While few months has provided some valuation lection process has not changed despite an
a correction can be unsettling for inves- comfort. While overall indices have cor- increase in fund size. We continue to focus
tors, one needs to appreciate that it has rected 7-8%, many stocks have corrected far on companies of reasonable quality that are
reduced the valuation excess to an extent. more than that. Large-cap valuations con- available at sensible valuations and build
It was something that was needed after the tinue to be sensible. Mid- and small-cap val- the portfolio on a bottom-up basis. We have
sharp rerating that had taken place over the uations, which had become inflated, have held a similar number of stocks since incep-
past few years. As far as the turnaround is also tempered, but notably remain above tion and maintained steady diversification
concerned, while predicting the bottom is long-term averages. Other than financial over time. We have also had a consistently
an exercise in futility, one would do well to services, there is no large sector that ap- low portfolio turnover. The fund’s weighted
stick to the time-tested principles of having pears undervalued. After the correction, average market cap remains in line/below
a long-term approach, focussing on asset several companies across sectors are now that of the benchmark. We have maintained
allocation, investing regularly and supple- better priced and with the market likely to the sanctity of the product and stayed true
menting with periodic lump sums in more be more volatile, it makes sense to be more to our investment mandate. Hence, we
challenging times. stock-specific in one’s approach. continue to believe that the current size is
manageable.
Are earnings likely to remain tepid in the Some fund managers have taken cash
coming months? calls in recent months. What is your posi-
Please send your feedback to
It is noteworthy that after Covid-19 there tion in this matter? [email protected]
was a marked improvement in corporate We typically don’t take very large cash calls

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP7 User: manish.kumar10 Time: 11-29-2024 16:13 Color:

guest column
The Economic Times Wealth December 2-8, 2024 07

Don’t time the market

Instead, focus on spending more time in the market, says Dhirendra Kumar.

T
ime is the friend of the wonderful busi-
ness, the enemy of the mediocre,” said
Warren Buffett. If we replace the word
‘business’ with ‘investor’, it would be of
greater relevance to all of us today.
As the stock market swings between dramatic
highs and lows, many investors are feeling the fa-

GETTYIMAGES
miliar itch—timing the market. It’s not every day
that we experience the thrill of market movement
of thousands of points within weeks, sometimes
days. At such a time, it’s tempting to think we can
outsmart the market by buying at the bottom and
DHIRENDR A KUMAR selling at the peak. This age-old temptation be-
CEO, VALUE RESE ARCH comes particularly acute when we see the market
making sharp moves, such as the recent surge

money
after the Maharashtra election results.
However, here’s the sobering reality. Market high and selling low, which is the exact op- more productive aspects of financial plan-

mysteries timing is just as dangerous today as it has always

been, perhaps even more so now, given the com-
posite of their intention.
Instead of trying to time these volatile
ning, such as tax efficiency, estate planning,
or identifying long-term investment oppor-
plex factors driving the current market move- markets, investors would be better off focus- tunities in emerging sectors.
ments. While the Sensex’s sharp recoveries might ing on time-tested principles: Remember, successful investing isn’t
make timing appealing, they highlight why it’s First, maintain a disciplined, long-term about predicting the market’s next move.
such a risky strategy. investment approach. The market’s journey It’s about staying invested through market
The psychological Consider the recent market behaviour. The in- over the years shows that the long-term cycles, maintaining discipline when others
benefits of a systematic vestors who panicked during the dips in October trend has been upward despite short-term are panicking, and letting the power of com-
approach cannot be and November might have missed the subsequent volatility. Second, use SIPs in mutual funds pounding work in your favour. The current
sharp recovery. This pattern has played out to average your purchase prices over time. market volatility might make timing seem
overstated. With
repeatedly over the past six months, with the This approach automatically takes advan- attractive, but it’s precisely during such
a well-structured
index showing multiple sharp drops, followed by tage of market dips without requiring you periods that sticking to long-term strategy
investment plan, market equally dramatic recoveries. Each of these swings to predict them. Finally, focus on asset al- becomes crucial. As Buffett observed, the
volatility becomes less represented a potential trap for market timers. location rather than market timing; ensure stock market transfers money from the
emotionally taxing. The challenge lies not just in predicting market your portfolio’s risk level matches your impatient to the patient. In today’s volatile
You’re no longer caught movements, but understanding the increasingly investment horizon and goals. environment, this wisdom rings truer
in the exhausting cycle complex web of factors influencing them. Today’s The psychological benefits of such a than ever. The real question isn’t when you
markets respond to domestic economic indica- systematic approach cannot be overstated. should buy or sell, but whether you are in-
of trying to predict
tors, global geopolitical events, policy changes With a well-structured investment plan, vested in line with your long-term goals.
market movements.
and institutional money flow. Even seasoned mar- market volatility becomes less emotion- For most investors, the answer to market
This emotional stability ket experts struggle to predict how these factors ally taxing. You’re no longer caught in the volatility isn’t timing; it’s time itself. Let in-
is particularly valuable will interact to move the market accurately. exhausting cycle of trying to predict market vestment horizon, not market movements,
in today’s markets, The speed of market movements makes timing movements or lying awake at night wonder- dictate your strategy. In the end, time in the
where volatility can test particularly dangerous in the current environ- ing if tomorrow is the day to buy or sell. This market beats timing the market, regardless
even the most seasoned ment. The digital age has accelerated the pace of emotional stability is particularly valuable of how tempting the market swings appear.
information flow and market reactions. When in today’s markets, where news-driven
investor’s resolve.
you think you’ve spotted a trend, the market has volatility can test even the most seasoned
often already priced it in. Those who attempt to investor’s resolve. Moreover, a systematic Please send your feedback to
[email protected]
time these movements frequently end up buying approach frees you up mentally to focus on

‘Indians
PAN 2.0most satisfied
to upgrade withwith
cards hybrid work’
QR code
The government has an- current PAN and TAN 1.0 eco- PAN card will not become in-
nounced the PAN 2.0 project, system, consolidating core and valid if there is no QR code and
which is an upgrade of the non-core PAN and TAN activi- taxpayers have an option to get
existing permanent account ties, as well as PAN validation an upgraded PAN card with
number and includes adding services. It aims to enable the QR code. This initiative will
a QR code. This will be rolled use of PAN as a common identi- strengthen the tax department
out free of cost to all taxpayers. fier for all digital systems of net to catch tax evaders.”
Does this mean that the exist- specified government agencies. Abhishek Soni, CEO,
ing PAN will become inopera- aimed at enhancing the digi- The benefits include: ease of Tax2win.in, says, “A new PAN
tive without the QR code? tal experience of taxpayers. access and speedy service de- card with an embedded QR
According to a press release “This will be a game changer livery with improved quality; code in soft copy will be issued
issued by the government, PAN for businesses to maintain single source of truth and data and a ‘PAN Vault System’ will
2.0 Project is an e-governance a single identity instead of consistency; eco-friendly pro- be introduced to enhance the
project undertaken for re- multiple ones in compliance cesses and cost optimisation; safety of information. This
engineering the business pro- with the Income-tax Act, and security and optimisation may imply that an OTP authen-
cesses of taxpayer registration 1961,” says Naveen Wadhwa, of infrastructure for greater tication process could become
services through technology- Vice-President of Research & agility. mandatory before accessing or
driven transformation of PAN Advisory at Taxmann.com. Adds Sudhir Kaushik, CEO, using an individual’s PAN.”
and TAN services. It is also PAN 2.0 will upgrade the Taxspanner.com: “The existing —Preeti Motiani

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP8 User: manish.kumar10 Time: 11-29-2024 16:49 Color:

stocks
08 The Economic Times Wealth December 2-8, 2024

Weak consumption eroded

India Inc’s profitability
Moderation in demand, a slowdown in government expenditure and the poor performance of the energy
sector pushed corporate India’s earnings growth to negative territory in the September quarter.
minimum of two analysts), 70.2% saw down-
grades since 30 September. Out of these, 153
companies (or 37%) saw downgrades of more
than 5%.
Sectors like construction materials,
energy, consumer staples, autos, and
chemicals faced earnings downgrades for
2024-25, while real estate and financials
saw upgrades. The significant downgrades
have reduced the Nifty 50 EPS estimates to
a multi-year low. “Overall, Nifty EPS has
seen around 7% downward revision in the
last six months, which has reduced the ex-
pected 2024-25 earnings growth to just 5%,
the weakest since 2019-20,” says an earnings
review report by Motilal Oswal. The report
has expressed concerns about the expensive
valuations of the broader markets despite
recent correction.
Experts are optimistic about a recovery in
the second half of 2024-25, driven by govern-
ment spending, rising rural demand, stable
commodity prices, strong festive demand,
and India’s robust macroeconomics.
GETTYIMAGES “The weak earnings growth and worsen-
ing cash flows warrant a cut in our target
P/E. We are not unduly alarmed though, as
we see some of the factors—weak consump-
24.4% tion, slow government capex—as tempo-
by Sameer Bhardwaj
Except oil and gas, commodity rary, and expect a bounce-back in 2025-26”,

C
says the Emkay report. An Antique Stock
orporate India reported
poor performance in the
prices have remained stable Broking earnings review report expects
minimal earnings downgrade in the second
September 2024 quarter half of 2024-25 due to multiple growth levers
amid weak consumption, such as successful wedding and festive
Price change (%)*
muted government spend-
4.6% 5.6% season as compared to the last year, robust
ing, excess rainfall and worsening Bloomberg Kharif and Rabi season and likely resump-
Commodity
cash flows. Experts have highlighted tion of a rate cut cycle.
Brent Nickel Lead Index
asset quality stress in some segments Here’s how different sectors of the BSE
of BFSI and weakness in urban de- Natural gas Aluminium Zinc 500 index have fared in the second quarter
mand in sectors such as FMCG and (UK) -1.2% -1.0% of 2024-25:
automobiles as the reasons for the
-5.3% Banking & Financial Services
moderation in earnings growth.
Data compiled from an Emkay
report shows that the aggregate ad-
“*between 3O June 2024 and
30 September 2024. Percentage
Banks
change based on international
justed PAT growth of BSE 500 compa- The banking sector faced higher provision-
USD prices. Source: Refinitiv.
nies declined by 0.5% year-on-year. ing, lower NIMs, and rising slippages. Stress
Comparatively, the earnings growth
-17.1% in microfinance and credit cards hit retail
was 3.2% in the June 2024 quarter and nies (excluding financials), the lowest in the loans, while corporate growth remained
41.6% year-on-year in the correspond- last three quarters. The slowdown in sales muted. Private banks saw margin pressures
ing period of the previous year. dragged the aggregate EBITDA margins of data. The index tracks global prices of oil, from slower unsecured loan growth, while
The performance deteriorates fur- the index companies (excluding financials) natural gas, copper, and other commodities. public banks reported steady earnings driv-
ther if the financial sector companies to a six-quarter low of 15.6%, according to The tepid performance is further evident en by strong recoveries and upgrades.
are excluded as the adjusted net profit data analysed by the Emkay report. in the unfavorable beat-to-miss ratio: of Among the banking sector stocks of
growth contracts to 9.8% year-on- Despite stable commodity prices as ev 218 BSE 500 companies with earnings esti- the BSE 500 index, YES Bank and Punjab
year. The energy sector significantly Despite stable commodity prices, re- mates, 125 or 57.3% missed projections for National Bank reported the most year-on-
dragged the overall earnings growth flected in a 1% decline in the Bloomberg the September quarter. The quarter’s per- year growth in the consolidated net profits.
whereas healthcare and industrial Commodity Index between June 30 and formance also led to earnings downgrades An increase in core lending income and a
sectors provided support. September 30, 2024, most BSE 500 companies for most companies for 2024-25, which con- drop in provisions helped the former to re-
The impact of moderation in de- reported weaker EBITDA margins. Among tributed to the recent market volatility and port consolidated net profit growth of 147.8%
mand is also visible in the aggregate 406 non-financial sector firms, 212 or 52.2% correction. Out of 410 stocks for which full- whereas lower NPAs and steady NII growth
sales growth, which grew by 4.8% saw a year-on-year contraction in operating year 2024-25 earnings estimates are avail- helped the latter to report 138.1% year-on-
year-on-year for BSE 500 index compa- profit margins, based on Reuters-Refinitiv able with Reuters-Refinitiv (compiled for a year growth in net income.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP9 User: manish.kumar10 Time: 11-29-2024 16:50 Color:

stocks
The Economic Times Wealth December 2-8, 2024 09

The Motilal Oswal earnings review re-

port remains vigilant about margins and
Energy sector was a drag on the ported revenue growth of 1.1%, 3.1%,
1.6%, 0.6% and 0.7% respectively in CC
the delinquency cycle in unsecured loans for
private sector banks. However, it remains performance of companies terms on a quarter-on-quarter basis.
An uptick in the BFSI segment and
positive on the sector due to robust balance
17.9% 19.7% traction in manufacturing, energy &
sheets, strong contingency buffers and rea- 16.1% utilities verticals supported the rev-
sonable sector valuations. 10.9% 11.7% enue growth.
Consumer 7.0%
Discre- The sector faces margin pressures
NBFCs and Insurance Energy tionary from wage hikes and furloughs in the
NBFC companies saw a healthy AUM December quarter, with cautious de-
Consumer Materials IT Financials Healthcare Industrials
growth, but the disbursements were af- -1.4% staples
mand outlooks amid geopolitical un-
fected due to the impact of heat waves and a certainties. However, companies an-
slowdown in the auto industry. Moreover, Sector wise earings growth for BSE 500 Source: Emkay report. ticipate 2024-25 to outperform 2023-24.
the asset quality saw marginal deteriora- On the positive side, client sentiments
tion across sectors amid seasonality and have improved following the Fed rate
unexpected rainfall in some regions. cut, leading to some recovery in the
Among the NBFC stocks in the BSE 500 BFSI sector and discretionary spend-
universe, Housing and Urban Development -49.2% ing. The Antique Stock Broking report
Corporation and Capri Global Capital expects the trend to further improve
reported the most year-on-year jump in
consolidated net profits. A substantial jump
Five of top 10 Nifty 500 companies as inflation starts to ease.

Metals
in disbursals on a year-on-year basis and
sequential improvement in asset quality missed earnings estimates The performance of ferrous compa-
helped the former to report a 52.5% jump in nies was impacted due to a decline in
PAT whereas strong momentum in home Reliance Industries 0.01 Earnings Beat/
sales volumes amid muted construc-
miss (%)
loan and gold loan categories helped the lat- tion activities due to monsoons, weak
Tata Consultancy
ter to report a 48.7% jump in the net income. -4.75 Services realisations and higher imports
An NBFC sector earnings review report by from China. Despite the softening of
Systematix expects the collection trend to HDFC Bank 2.34 input costs (lower coking coal prices),
normalise gradually in the coming quarters the weak ASP (average sales prices)
resulting in an improvement in the sector’s dented the operational performance.
asset quality.
-5.87 Bharti Airtel
On the other hand, the availability
The life insurance industry saw strong of higher linkage thermal coal and
premium growth, while low auto sales hit ICICI Bank 6.90 firm prices amid the tightening of the
general insurers. Health insurance demand supply-demand balance supported the
remained steady. Among BSE 500 private -4.41 Infosys performance of non-ferrous players.
insurers, SBI Life posted a 39.2% profit rise Among the steel companies of the
driven by higher investment income, while BSE 500 index, Jindal Saw and Lloyds
ICICI Lombard’s 20.2% profit growth came
State Bank of India 13.23 Metals and Energy reported the
from solid Gross Direct Premium Income. most year-on-year jump in net profit.
-0.46 ITC Steady demand in the MENA region
Automobiles and Ancillaries the weak refining segment will continue and contained expenses helped the
The sector saw a moderation in domestic de- -3.55 Hindustan Unilever to impact performance in the near term. former to report 33.7% growth in PAT
mand, especially in CVs and PVs. Moreover, However, expansion projects will support whereas strong iron ore and sponge
the exports are affected for both automobile the performance of OMCs in the medium iron volumes helped the latter to
HCL Technologies 4.09
and ancillary players due to challenging term. Moreover, increased production levels register 33.7% growth in the bottom
demand conditions in Europe. Source: Reuters-Refinitiv. from the KG Basin are expected to benefit line. Among non-ferrous companies,
Among the automobile (and ancillar- upstream players. National Aluminium Company re-
ies) companies in the BSE 500 universe, mance in the export formulation business ported a 458.3% jump in the net profit
Samvardhana Motherson International and and stable domestic pharma business helped Consumer staples driven by strong aluminium prices
TVS Motor reported the most year-on-year the latter to report 83.3% growth in the The sector faced demand challenges from and cost efficiencies. On the other
jump in consolidated net profits. A strong bottom line. Going forward, India-focused adverse weather and inflation. Rural de- hand, Hindalco Industries reported
momentum in the automotive segment pharma companies are expected to perform mand improved slightly, but urban demand a 78% jump in consolidated net profit
drives 222.6% PAT growth for Samvardhana better in the second half of the current fi- weakened due to high prices, while rising supported by strong operational per-
whereas strong 2W and 3W sales and healthy nancial year whereas hospitals will benefit raw material costs squeezed gross margins. formance. Analysts expect steel
exports helped TVS Motor report 41.4% from the demand-supply mismatch. Among the consumer staples companies demand to improve in the second half
growth in the net income. There are visible in the BSE 500 universe, Zydus Wellness of 2024-25 with the resumption of con-
signs of revival in the rural demand (sup- Oil and Gas and Gillette India reported the most year- struction activities (post-monsoon).
ported by a healthy monsoon), which will The sector weighed on corporate perfor- on-year jump in net profit growth. Strong For non-ferrous, captive coal mining,
bode well for the domestic demand for 2Ws mance as OMCs reported a sharp PAT performance across brands helped Zydus and lower input costs will support
and tractors. Also, the CV demand is expect- decline due to weak refining (low GRMs, in- Wellness to report a 254% jump in net margins in the future.
ed to revive in the second half of 2024-25 with ventory losses) and LPG under-recoveries. profit growth whereas strong demand for
the likely jump in government expenditure. Combined net profit for three OMCs fell to its grooming products helped Gillette India Cement
`1,991.1 crore in the September 2024 from report 43.5% growth in the bottom line. The sector witnessed muted volume
Healthcare `27,783.6 crore a year earlier.. Analysts expect the demand environment growth and weak realisation due to
The pharma sector saw growth in domestic Reliance Industries reported a 4.8% year- to remain weak in the near term, which heavy monsoon and a slowdown in
formulations driven by chronic therapies on-year decline in consolidated PAT due to will impact profitability. Moreover, a price infrastructure spending by the gov-
and price hikes, while US generics faced the weak performance of its O2C, telecom hike is expected in the second half of 2024-25 ernment. Cement prices continue to
price erosion. Hospitals reported strong and retail segments. While softer refining to offset the rising raw material prices. A remain under pressure, and this cou-
occupancy and ARPOB growth, and diag- and petrochemical cracks impacted O2C, a gradual recovery in the volume growth is pled with negative operating leverage
nostics saw healthy revenue gains from higher subscriber churn (after the recent expected in the future. and higher depreciation impacted the
improved realisations and volumes. Among tariff hike) impacted the performance of overall operational performance of
the healthcare companies in the BSE 500 Jio. On the other hand, weak demand in the IT the sector. Out of 15 cement companies
universe, Piramal Pharma and Natco fashion & lifestyle category hit the retail seg- The sector reported a good performance in the BSE 500 universe, five reported
Pharma reported the most year-on-year ment. The upstream player ONGC reported with all top IT companies reporting net losses whereas 10 companies re-
jump in net profits. The former reported a a 17% year-on-year jump in standalone PAT sequential revenue growth in constant ported a year-on-year decline in the
350% jump in PAT driven by traction in the supported by stable production levels and currency (CC) terms. TCS, Infosys, HCL PAT. Pick-up in construction activities
CDMO segment whereas a strong perfor- operational efficiencies. Going forward, Technologies, Wipro and Tech Mahindra re- will boost demand in the future.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP10 User: manish.kumar10 Time: 11-29-2024 16:14 Color:

investing
10 The Economic Times Wealth December 2-8, 2024

Is domain flipping lucrative?

Internet enthusiasts are buying domains to profit, but big gains require skill and patience.

by Sanket Dhanorkar surrounding the merger of Reliance Jio and

H
Disney Hotstar last year, got his offer for
ave you ever purchased resale turned down by Reliance. He later sold
a promising piece of land to it to Dubai-based siblings, who have since
or property with the hope offered to transfer the domain to Reliance
of flipping it later for a at no cost. “Registrants should exercise due
tidy profit? It is a fairly diligence to ensure that the domains they
common practice among real estate acquire do not violate existing trademarks
enthusiasts. A similar trend prevalent and are not registered in bad faith. Failure to
among eagle-eyed Internet enthusiasts do so can result in legal actions that not only
is domain flipping. It refers to the prac- negate any potential profit but also impose
tice of buying or registering an online additional penalties,” exhorts Somasi.
domain name with the aim of reselling
it to a business or entity at a much high- Cracking the domain code
er price later. But can you make money Experts say domain flipping can be profita-
from this activity reliably? ble if done right, but success requires skilled
research and early trend-spotting, not
Early bird gets the worm blindly chasing popular domains. “Domain

GETTY IMAGES
Domains are like valuable online real investing or domain flipping can be a viable
estate. On the surface, it is a unique trade if approached strategically and with
address that directs users to a particu- an understanding of market dynamics and
lar website. However, if the domain legal obligations,” Sahay remarks.
is associated with a popular term or Short or single keyword domains are more
catchy word, it can command high Generic Domain Price (US $) Date Venue valuable as they are easy to type, remember,
value. Buying a potential high-demand
domain early could allow you to flip it domains chat.com 15,500,000 28 Mar 2023 Private
and market, but are also pricier. A good
domain should be SEO-friendly, as traffic
later for profit. “Like any investment
or trade, it involves buying domain
have sold nfts.com 15,000,000 31 Jul 2022 Domainer.com is key to its worth. Suresh Raghavan, CEO,
nichejobs.com, asserts, “Ascertain the search
names at a low price with the aim of for big rocket.com 14,000,000 4 Sep 2024 Hilco Digital Assets volume for your chosen keyword on Google.
selling these at a higher price. This
could involve generic names, brand-
sums connect.com 10,000,000 15 Apr 2022 Private The more actively searched the word or
phrase is, the more valuable it will be.”
able names and emerging trends gold.com 85,15,000 11 Mar 2024 Hilco Digital Assets Some domain marketplaces offer keyword
or keywords,” says Gaurav Sahay, search tools for ideas, while online appraisal
Practice Head, Technology & General
Corporate, Fox Mandal & Associates
` Domain Price (US $) Date Venue
tools like domainindex.com estimate a do-
main’s value based on length, wording, and
LLP.
The most expensive domain ever,
.ai you.ai 7,00,000 6 Oct 2023 Sedo SEO. Domain flippers also target expired
domains, or ‘drop catching’, snagging them
cars.com, sold for $872 million. Domain domains stack.ai 2,58,888 24 Apr 2023 Afternic cheaply for their established traffic history.
hunters capitalise on tech revolutions
to secure valuable online real estate are getting sound.ai 2,50,000 18 Feb 2024 Pvt sale
Domain extensions significantly impact
value. Popular ones like .com and .net are
early. For instance, .ai domain regis-
trations have surged recently, though
popular npc.ai 2,50,000 4 Aug 2023 Sedo pricier but easier to sell due to their trust-
worthiness. Emerging extensions, like .ai,
.com domains still dominate. NameBio girlfriend.ai 1,70,000 1 Mar 2024 Private .shop, or .digital, may offer untapped poten-
data shows chat.com topped sales in the Source: NameBio.com
tial. Active domain flippers insist this is a
past five years, fetching $15.5 million. numbers game. The chances of you hitting
Among .ai domain sales, you.ai, stack. but its legality depends on how it is conduct- in bad faith without legitimate interests, it the jackpot with only one or two domains
ai, sound.ai have sold for $2,50,000 to ed,” points out Sahay. “Issues arise when the can file a dispute under the Domain Name are very low. It is advisable to buy a portfolio
$7,00,000. domain flipping is with respect to a prior reg- Dispute Resolution Policy (UDRP) or the of multiple domains. “Domain flipping is
Domains can be purchased from istered trademark or name. Issues may also India Domain Name Dispute Resolution more viable if you spread the portfolio across
ICANN-recognised registrars like arise if the act of domain flipping is in bad Policy (INDRP) in case of .in domains. If the several short, brandable domains, instead of
GoDaddy, Namecheap, Squarespace, faith and can be categorised as cybersquat- complainant prevails, the registrar may be putting the entire money on a single valuable
and Hostinger. Prices range from a ting,” observes Abhay J.V., Partner, Shardul ordered to transfer or deregister the name. domain,” explains Haris Mirza, Founder of
few thousand rupees to several crores, Amarchand Mangaldas & Co. In cases involving legitimate use claims, Upclub, a digital marketing agency.
depending on the domain’s value. For Cybersquatting involves purchasing disputes may escalate to court litigation. The Individuals who are into this trade
instance, on GoDaddy, the registered domain names that are similar or identical “Depending on the proof of actual damages warn that domain flipping is not a get-rich-
domain bazaar.ai is on sale for a mam- to established trademarks and names with by the proprietor or the nature of violation, quick scheme either. You may end up owning
moth `3.37 crore. However, the non- the intent to sell them at a higher price to the the court may grant actual and/or compen- a domain for years before you get an offer
registered domain bzaar.ai is avail- trademark owner or other interested par- satory damages,” points out Abhay J.V. for it. “It is not as easy to flip quickly, unless
able for a starting price of `4,660 for the ties. Aasish Somasi, Associate Partner at According to India Law Journal, the first you get lucky amid rising interest specific to
first year, and `12,287 for every year SNG Partners, Advocates & Solicitors, says, case in India related to cybersquatting was your domain extension,” says Raghavan.
after that. Some domains are on sale “Legally, domain names are protected under Yahoo Inc versus Aakash Arora, where the “If you can predict the market right and
for much lesser. the aegis of trademark legislation in many defendant launched a website (yahooindia. get the domain for a good price, big gains are
jurisdictions. Courts worldwide have recog- com), nearly identical to the plaintiff’s re- possible. However, the value may not get un-
Cybersquatting a bad word nised that a domain name is more than just nowned website, and also provided similar locked right away,” Mirza contends.
Before you get hyped about domain an Internet address; it identifies the website services. The court ruled in favour of Yahoo
flipping, there are some caveats. If not to users, much like a trademark identifies a Inc, citing it as an effort to trade on the fame
done in good faith, it can potentially company’s goods or services.” of Yahoo’s trademark. Recently, a Delhi-
Please send your feedback to
land you in hot soup. “Domain flipping If an entity claims a domain is identical or based app developer, who had picked up the [email protected]
is generally a legally tenable activity, similar to its trademark and was registered domain jiohotstar.com, riding on speculation

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP11 User: manish.kumar10 Time: 11-29-2024 16:18 Color:

entrepreneurship
The Economic Times Wealth December 2-8, 2024 11

ONLINE BAKERY

Recipe for success

GETTYIMAGES
If you are planning to start a small business, this
new series will help identify the problems you’re
likely to face. In the first part, Yasmin Hussain finds
out what it entails to start a cloud bakery by talking
to Bakingo Co-founder, Shrey Sehgal.

I
s it possible to start a bakery with to handle cakes with care. pamphlets in newspapers, which later gave
`20-25 lakh and scale it up to a When they started teaming up with food way to Google Ads as they scaled. As they
`75 crore business in barely five delivery aggregators, they were sceptical if expanded, Bakingo allocated 5-10% of its
years? It might seem incredible, they would be able to handle the transpor- revenue to marketing. Their first big break
but this is exactly what Bakingo tation. “We were afraid they would sully came just before the pandemic, when they
managed to do. Started in 2016 with four our brand name if they delivered damaged partnered with food delivery giants like
employees and a surplus of initiative, the cakes,” says Sehgal. “That’s why we started Zomato and Swiggy, that charge 20-30% of
online bakery today services 37 cities focusing a lot on packaging. We used cake gross sales as commission.
with 103 cloud kitchens. So what does savers (plastic support in cakes) so that the For Sehgal, timing is the key while run-
it take to make a success of an online boxes could survive even a 45 degree tilt. ning and managing such platforms. “You
bakery? We worked with a chef to make sure we had have to figure out your fixed cost. The math
If you were to go by Shrey Sehgal, Co- an edible adhesive to stick it to the base. is simple: calculate the contribution mar-
founder of Bakingo, the secret recipe Triangle cake savers at the bottom prevent gin from each order and multiply it with
lists multiple ingredients: identifying a damage during packaging,” he adds. the number of orders required to take out
niche, product development, consistency Getting customers was another fixed costs. This is the number of orders you
of flavour, packaging and delivery, the challenge. Social media, particularly should have before starting out,” he says.
right staff, and marketing savvy. Instagram, was their primary channel for With a bigger budget, Bakingo is experi-
The journey began with Sehgal realis- showcasing modern designs that stood out menting with out-of-home (OOH) ads, OTT
ing that, despite the growing food market among old-school cakes and invited signifi- platforms, and influencer marketing to
in India, there was no brand exclusively cant attention. “In our first year, we didn’t widen its reach. The company aims to go to Baking up a storm: (From right) Founders
dedicated to cakes. “There were brands have a budget for paid ads,” Sehgal admits. tier 2/3 cities, open more retail stores and Shrey Sehgal, Himanshu Chawla and
for all fast-food options like burgers and So they relied on organic reach and even invest in R&D and product innovation. Suman Kumar Patra
pizzas, but no go-to place for bakeries,”
says Sehgal.
Back then, bakeries only had cakes
with traditional designs and limited
How to start an online bakery
variety. Sehgal, along with friends
Himanshu Chawla and Suman Kumar
Patra, saw the gap and focused on quality
and unique designs to carve out a niche
for Bakingo. “I got the initial capital
from my first business, Flower Aura,
STEP 1 STEP 2 STEP 3 STEP 5 STEP 6 STEP 7
launched in 2010-11, which was a success. Identify Get the Set a budget Perfect your Plan delivery Use social
market licences Sehgal
STEP 4 recipes operations media for
Most of the profits from Flower Aura
trends For an online recommends Hire the Food quality Cakes are delicate marketing
were used for expenses like renting, starting with right team
Find the right bakery, you and flavour and delivery can Social media
hiring and equipment deliveries,” says gap in the only need a budget of consistency are make or break platforms like
If you are not
Sehgal. Today, the combined turnover of baking market GST and FSSAI `5-10 lakh, developing non-negotiable. your brand. Instagram and
Flower Aura and Bakingo is `200 crore. and identify certificates. which provides recipes Collaborate Initially, consider Facebook are
a niche that If you have a cushion for yourself, start with your handling in-house your best friends
Sehgal was still studying for his
sets you apart. more than 10 a professional with a chef, chef to create deliveries to when starting out.
Master’s at MDI Gurugram at the time. Bakingo, for employees, you set-up. If you’re unique, high- ensure quality. Showcase your
2-3 delivery
So he set up Bakingo’s initial office in instance, will also need PF planning to begin partners, and quality recipes. Partnering with products, engage
a basement near the MDI campus for capitalised registration and locally, even `3 someone to Differentiation is aggregators like with your audience,
convenience. Operations and product on the lack of ESI certificate. lakh can work manage the key; customers Zomato or Swiggy and create buzz.
branded, quality If you’re hiring as a starting technical side, should choose can wait until Start small with
development took place here before scal- cakes. This will a professional, point. Keep you for your operations a daily ad budget
such as the
ing to other locations. The focus was help you build a these should cost your finances website and something and volumes are of `500 to target
on perfecting recipes over two to three loyal customer you `16,000- tight and scale orders. they can’t get stable. local customers
months through rigorous daily tastings base. 17,000. gradually. elsewhere. effectively.
to set benchmarks for quality and fla-
vour. “Once you create a standout prod-
uct, consistency is the key,” says Sehgal.
“When customers come back, they want
Bakingo’s journey
the same taste that they loved last time,”
he adds.
Delivery, however, was more chal-
`20-25 lakh `30 lakh 5-10% 4 37
lenging than baking because cakes are
difficult to transport. At first, they only was the initial was the sales of the annual members cities are
took orders from their website, Bakingo. investment revenue in revenue is the were in the now being
com. They had an in-house team to man-
sourced from the first year company’s launch serviced by
the profits of an (2016-17). marketing team. 103 cloud
age deliveries and staffers were trained
earlier business. budget. kitchens.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP12 User: manish.kumar10 Time: 11-29-2024 16:19 Color:

financial planning
12 The Economic Times Wealth December 2-8, 2024

PAPER WORK
How to write a will

GETTY IMAGES
A will is a legally binding document
outlining how an individual’s assets
will be distributed after their de-
mise. Drafting a valid will ensures
a smooth transfer of wealth, mini-
mising potential family disputes.

List assets, beneficiaries

Prepare a comprehensive
list of all assets, including
immovable property, in-
vestments and personal
belongings. Specify beneficiaries and
their share in the inheritance.

Appoint an executor
Select an executor who
will implement the

Should you pick funds

instructions of the will.
The person should be
trustworthy and capable of han-
dling legal and financial matters.

with 5-star ratings? Draft the will

A will can be handwrit-
ten or typed. It must

R
clearly mention:
Rashmi Chandra, a 45-year- ashmi Chandra should begin five-star rating guarantee its future  The testator’s full
by checking whether a five- outperformance? No, it may not. Ratings name and declaration of intent.
old surgeon, wants to invest star-rated fund guarantees are revised on a regular basis. Hence,  Details of all assets and benefi-
in an equity mutual fund for consistent top performance. Chandra should choose a fund with a de- ciaries.
The answer is no. If a certain cent vintage so that she is able to evaluate  Names of guardians (if appli-
retirement. Overwhelmed five-star fund were to be the best, all the the fund’s consistency in performance. cable) and the executor.
by hundreds of options with rating agencies would have had the same She must probe the rating methodology to Legal assistance is recommended
recommendations, which is typically not check the weightage given to consistency to ensure clarity and compliance
minimal differentiation, the case. There are large variations in the in performance and returns generated with the Indian Succession Act.
she lacks the expertise to rankings of mutual funds. Not all rating vis-à-vis the risk assumed.
evaluate the funds on the ba- agencies and financial advisers recom- Star ratings can be a useful start-
mend the same funds as the ‘best’ or give ing point for shortlisting mutual fund
Signature, witnesses
sis of risk, asset allocation, The will should be signed
them ‘five star’ ratings. schemes, but these should not be consid-
by the testator. It must be
or strategy. Attracted by Every rating agency uses a different ered the sole deciding factor. Chandra
attested by at least two
methodology to evaluate funds. A fund must examine the rationale behind the
the five-star ratings, she is witnesses, who are not
might achieve a five-star rating based on ratings, consult a financial adviser, and beneficiaries. Witnesses should attest
wondering if selecting a top- its performance over the past six months seek clarity. This approach will ensure that the testator signed the will in
or high-risk stock bets that delivered sig- that her decision aligns with her risk- their presence and is of sound mind.
rated fund will be the right nificant returns. Mutual funds’ perfor- return preference, rather than relying
approach. mance can be quite volatile. Will a fund’s solely on star ratings.
Content courtesy Centre for Investment Education and Learning (CIEL). Optional registration
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. While registration of a will is
not mandatory, doing so at

smart things to know NRE vs NRO accounts

the sub-registrar’s office adds
legal weight and reduces the

4
1
likelihood of disputes.

2
Storage and updates
The purpose of a Store the will in a

3 5
non-resident exter- The interest In an NRE account, The funds safe place, such as a
nal (NRE) account is and principal the deposit is made in in an NRE bank locker or with
to deposit foreign The funds from are tax-free foreign currency and account are a lawyer. Update
earnings in India, NRE accounts are in an NRE withdrawals are in INR, subject to the will after major life events,
whereas a non-resi- fully repatriat- account. The whereas in an NRO exchange rate such as marriage, childbirth, or
dent ordinary (NRO) able, whereas interest is account, the deposit is fluctuations. significant asset changes.
account is used NRO accounts subject to either in INR or foreign This is not
to deposit income have a limit of $1 TDS in an currency and with- the case in an
earned in India. million a year. NRO account. drawals in INR. NRO account.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP13 User: manish.kumar10 Time: 11-29-2024 16:20 Color:

financial planning
The Economic Times Wealth December 2-8, 2024 13

Worksheet for retirement

Instead of hiring a financial planner, you can list out all your household finances in a single worksheet to be
able to answer all the questions on retirement and estate planning, says Uma Shashikant.

5 should list the heads of expenses—rent,

taxes, expenses for profession or business,
acquisition of assets and durables, house-
hold expenditure, credit card spends, bills
and utilities, premium and charges, and
every instance of outgo. Column 6 should
hold the amount under each head.
The sum total of these three heads is the
financial status of the household. The first
two columns hold the assets. The second
and third indicate how much accretion to
assets is possible given the income flow.
The fifth and sixth show how much was
drawn down from the incomes. How the
assets will grow annually will only be the
surplus of income over expenses.
Every personal financial strategy can
ride on this worksheet alone. Year after
year, you can see how your assets have
grown, which grew and which did not. You
can see how your income has grown and
if expenses have moved faster or slower.
More importantly, you will have every-
thing you need to plan for the future—
which asset needs to be liquidated for

H
which large expense; which income can be
ow little we know about our fi- money in the bank before the next salary, allocated to which head; which saving is
nances can be quite startling. We we believe we are spending within means. too low or too high, and so on.
file our taxes, make sure bills are However, retirement planning cannot replace Retirement planning is just a ques-
paid on time, have no major loans income, unless there is a very substantial cor- tion of comparing assets with expenses
to repay, and invest regularly. We pus. “It targets covering the current expenses, and seeing how many years are covered.
should, therefore, be doing fine, right? Who at the very least, and 25 times this annual ex- Estate planning is about which asset is
has the time to sit down and write accounts for pense will be the minimum amount you need,” needed and which can be left behind. This
all the little aspects of household finances? I told him. That is also a thumb rule, at best. financial snapshot can be a satisfying ex-
It might be required if one is serious about Next, we looked at investments. He had an ercise and good fun when put in place. The
retirement and estate planning. Last week, NSDL CAS that provided a list of his invest- first year will seem daunting. The second
when a friend was discussing his finances and ments and their current market values, but will seem interesting. From the third year
UMA SHASHIK ANT
IS CHAIRPER SON, plans to engage someone to write his will, we that is not all he held. There were bonds, depos- onwards, you are hooked. Putting in the
CENTRE FOR INVES TMENT both were shocked to realise how little we actu- its, post office schemes, Provident Fund, PPF, numbers as monthly statements come
EDUC ATION AND LE ARNING ally knew. He began with the most asked ques- insurance policies and a plot of land, another in can make it a monthly exercise, if you
tion for retirement planning: How do I know if smaller plot, and gold. No, there is no listing or wish, or quarterly, or half-yearly, depend-
I have enough? He would have expected me to valuation of this pile of assets. No one spends ing on your interest and involvement.
give him a number. I wish it were that simple. everything that is held as assets in retirement, There is a single statement for the fam-
“I have earned, saved and invested over the but knowing what one will use and what one ily to refer to. You can explain each line
past 35 years. Shouldn’t that be enough?” he will bequeath is important for estate planning. item in another sheet. It is easy for your
A household’s
asked. In any case, it was his best case scenario We did not begin discussing what the asset spouse and grown-up children to see
finances can easily for how much money he would retire with. He allocation, investment pattern, tax planning the summary and understand how the
fit in one worksheet had done the best he could. Let’s begin with an and corpus withdrawal strategies should dynamics work. Financial decisions are
of six coulmns, and estimate of the expenses I offered. be. My friend already felt my approach was then based on information, rather than
it should be updated He began with a small amount, an estimate. too time-consuming and, perhaps, complex. wish, preference or desire.
and maintained once a “Does it include utility bills, housing society Taking control of your finances is not complex My friend felt I was not answering his
year, to begin with. The maintenance charges, and general insurance if you make a template and spend some time pointed question about what he must do in
first column should list premium?” I asked. Since these payments go getting started. retirement. He wondered if he could find
every single asset that from the bank, he realised he had left them out. A household’s finances can easily fit in a paid expert to do the math. A fee-based
is owned, and every “What about large amounts on gifts, travel, one worksheet of six coulmns, and it should financial planner will need the same
holidays?” I asked. “It’s small now, but we’ll do be updated and maintained once a year, to information to answer those questions. If
liability (outstanding
better after retirement,” he explained. “Do you begin with. The first column should list every he were to do it himself, he could engage
loans) that is owed,
check and tabulate your credit card spends, single asset that is owned, and every liability with anyone he wished from a position of
entered as a negative and online shopping spends,” I asked. He of- (outstanding loans) that is owed, entered as strength and understanding of his own
number. The second fered an estimate. I asked for the actual due a negative number. The second column, plus finances. Many of us do not see that what
column, plus numbers amount for the current billing period. It was numbers against each item of column 1, would we have on hand is more powerful than
against each item of twice that amount. be the current market value. what is out there in the market as plans,
column 1, would be the This is not the first time I have found some- Column 3 should indicate heads of income— products, portfolios and performance.
current market value. one underestimating or not fully aware of salary, business or professional income, rent,
the actual monthly spending. We do not keep dividends, interest, realised capital gains.
Please send your feedback to
household accounts as we did in the good old Column 4 should fill up these heads for re- [email protected]
days of income scarcity. As long as there is ceipts in the household for each head. Column

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP14 User: manish.kumar10 Time: 11-29-2024 16:22 Color:

career
14 The Economic Times Wealth December 2-8, 2024

RETAIL TO
DIGITAL
Switch MARKETING

without 1 TRANSFERABLE
SKILLS
Raj Chauhan, a mid-career retail
professional with 10 years expe-

starting over
rience, realised that traditional
retail was shrinking. He decided
to switch careers and pursue his
fascination for digital marketing.
He identified his expertise in cus-

Build new skills, network, and start small for tomer behaviour, sales analytics,
and campaign management as
big changes, says Devashish Chakravarty. being relevant to his new career.

UPSKILLING
2

GETTYIMAGES
Chauhan then enrolled in
courses on Google Ads, SEO, and
data-driven marketing through
platforms like Coursera. He

A
completed certifications within
re you struggling with massive ments from past roles and what you used. about the target industry should be evident. six months, adding credibility to
changes in your domain? The Next, ask colleagues or mentors to highlight Demonstrate value by explaining how your his resume.
professionals who once thrived strengths you may overlook. Match your background will add a fresh perspective. For
are finding the need to adapt to skills to the job description in your desired instance, you could say, “As a teacher mov-
NETWORKING
stay relevant. You may be expe- field. These are your transferable abilities ing into corporate training, my experience 3 He joined digital market-
riencing rapid change at work either due to that can be highlighted in your pitch to po- in simplifying complex ideas for different
ing LinkedIn groups and actively
technological advances or market shifts and tential employers. audiences prepares me to create effective em-
participated in webinars on
disruptions. Does the solution to your strug- ployee learning programs.” Practise deliver-
gle lie in changing careers? Here’s a step-by- Close the gap ing your pitch confidently in interviews and
related topics. Through mean-
ingful conversations, he started
step guide for a career pivot without starting While transferable skills can be carried over, networking conversations.
connecting with professionals in
from scratch. career change will require learning new
skills. Commit to upskilling and closing the Resume & LinkedIn this space. Later, these people
Recognise the signs gap between your abilities and market needs. Tailor your resume and LinkedIn profile
introduced him to opportunities.
Look for early signs that things are not going Start with certifications. Can you enroll in a for the target role. Both these must fit your
FREELANCING
well. The best career pivots happen before
circumstances force a change. Are you stag-
formal degree program or earn credentials
via platforms like Coursera or Udemy? For
narrative and link your skills and potential
with the new sector. Highlight transferable
4 Chauhan started working
nating at work and feeling uninspired or instance, if you’re moving from operations to skills in summary and work experience. for startups during weekends, of-
unchallenged? Is your industry in a decline data analytics, courses in Python or Tableau Use keywords from job descriptions to clear fering digital marketing services
with fewer jobs? Maybe our own values and will build your profile. Can you increase the software filters of the employer’s appli- on a freelance basis. He gained
interests have evolved, and your career no your value with micro-credentials, which cant tracking system (ATS). Quantify your hands-on experience in run-
longer aligns with them. Reflect and assess are short, focused learning modules on spe- impact, for instance, by saying, “Improved ning campaigns and managing
whether your career path will support your cific topics? Can you get hands-on experience efficiency by 30%.” Show certifications and budgets.
five-year and 10-year goals. If it won’t, ac- in the new field by freelancing or volunteer- projects relevant to the new field. Make sure
NEW NARRATIVE
knowledge that it is time to take action and
plan your next move.
ing? Can you join professional groups and
communities in your target industry to stay
your LinkedIn profile and resume are con-
sistent to make them credible to recruiters.
5 He crafted a new narrative
abreast of industry trends and discussions? for recruiters: “With 10 years
Define your future Start small, build momentum in retail, I understand consumer
Know your destination before you start. Ask Network with purpose You may not get a full-time role immediately behaviour deeply. My move to
yourself which industries or roles excite The next step is to build a network, which is in the new field. So get started with small digital marketing allows me to
you. Which type of work gives you purpose the fastest way to break into a new industry. steps to build momentum into your pivot. combine this knowledge with
or meaning? What kind of success matters Not only will it speed up your learning, but Find internships or volunteer work in the latest digital tools to drive
to you? Research the industries or roles you also open doors to hidden opportunities, community projects, where possible. Offer measurable outcomes.”
have shortlisted. Use LinkedIn job postings, insider advice and referrals. Start by recon- services to clients in the target industry as a
FINAL OUTCOME
industry reports and career guides to under-
stand the qualifications, skills and growth
necting with former colleagues, mentors, or
friends in your target domain. Seek infor-
freelancer. Build a portfolio of work relevant
to your pivot. Pick a pilot project like a short- 6 Within 12 months, he had
prospects. Use this knowledge to finalise mational interviews with professionals to term contract in the target field. This tempo- landed a full-time digital market-
your new career choice. understand their career paths and gather in- rary assignment builds credibility and con- ing role at a leading e-commerce
dustry insights. Attend webinars, LinkedIn fidence before you leap into a full-time role. firm, with a 30% hike over his
Your skill audit groups, or industry events to plug into the previous salary. He acted early,
Your existing skillset is the engine for your ecosystem. Build credibility and trust by Lifelong learning embraced change and used free-
pivot. Reflect on your career to make a offering assistance, insights or connections A pivot is successful not when you find a new lancing as a low-risk start.
detailed list of your transferable, hard and before you seek help. Remember, networking job, but when you achieve mastery and stabil- Your journey too can start to-
soft skills. Transferable skills can be used is about building authentic relationships. ity. To thrive, you need to learn continuously. day. Audit your skills, build con-
across industries and include leadership, Seek a mentor or coach to guide your growth. nections, and embrace learning.
communication and problem-solving. Hard Craft your narrative Stay updated on industry trends. Reflect
skills are the technical competencies in your Your story is critical to the career shift. regularly on your progress and adjust direc-
target domain, like coding, data analysis Since employers will question your pivot, tion as needed. Remember that your career is
THE WRITER IS FOUNDER
or financial modelling. Finally, soft skills you need to craft a narrative that reframes not a single line, but a series of evolving, con-
SALARYNEXT.COM, A JOB LOSS
are interpersonal abilities like adaptability, your transition as an asset. The key elements nected chapters. If your current chapter feels ASSURANCE FIRM, AND AUTHOR
teamwork and emotional intelligence. To include showing how your skills align with uninspiring, you have the power to write the OF GET HIRED IN 30 DAYS .
uncover these skills, consider your achieve- the new role. Your passion and excitement next one.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP15 User: manish.kumar10 Time: 11-29-2024 16:51 Color:

SMART STATS
The Economic Times Wealth
December 2-8, 2024

In This Section
MUTUAL FUNDS - P16
LOANS AND DEPOSITS - P18

ET WEALTH TOP 50 STOCKS

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 R AT I N G

Value
Current Previous Stock Net PEG Div No. of
Research
Rank Rank Price Revenue Profit PE PB (5-year) Yield (%) funds
Stock Rating

Kotak Mahindra Bank 1 1 1,759 25 29 15.8 2.4 1.1 0.1 141 
1 Fast growing stocks
Can Fin Homes 2 2 822 17 25 13.4 2.3 0.8 0.7 37 
Top 5 stocks with the highest
Manappuram Finance 3 4 157 27 21 5.9 1.1 0.4 2.1 11 
revenue (1-year) growth (%)
Bajaj Finance 4 3 6,509 30 15 26.3 4.7 1.2 0.6 130 

Aavas Financiers 5 5 1,670 19 14 24.8 3.3 1.3 0.0 34  Cholamandalam 42.2
Investment
Indus Towers 6 6 348 5 128 12.2 3.2 0.6 0.0 74 
AU Small Finance 41.2
REC 7 7 528 21 17 9.3 1.9 0.6 3.0 107  Bank

PI Industries 8 10 4,043 9 29 34.6 6.4 1.0 0.4 77  Nippon Life India 35.4
Asset Manage.
AU Small Finance Bank 9 11 586 41 6 24.0 2.7 0.7 0.2 48 
31.7
UTI Asset
NIIT Learning Systems 10 9 466 5 12 27.7 5.8 3.7 1.1 12  Management Co.
Muthoot Finance 30.1
Cholamandalam Investment 11 8 1,268 42 25 27.8 5.0 1.1 0.2 125 

Petronet LNG 12 12 328 2 15 12.4 2.6 1.7 3.0 34 

Karur Vysya Bank 13 14 238 22 32 10.7 1.8 0.9 1.0 47 

2 Least expensive stocks
Nirlon 14 17 430 6 2 18.5 10.2 0.9 6.0 5  Top 5 stocks with the lowest
Sharda Motor Industries 15 15 2,014 0 34 18.1 6.4 0.6 0.5 12  price to earnings ratio
Manappuram
ICICI Bank 16 19 1,286 23 17 19.2 3.3 1.0 0.8 280 
Finance 5.88
Hero MotoCorp 17 18 4,784 15 28 23.1 5.0 3.5 2.9 113 
DCB Bank 6.69
Shriram Finance 18 16 3,044 20 22 14.2 2.2 0.6 1.5 112 
Ashoka
Buildcon 6.97
National Aluminium Company 19 23 249 4 134 14.7 2.9 0.5 1.2 54 
Repco Home 7.09
Natco Pharma 20 24 1,337 28 74 12.4 3.4 0.4 0.7 7 
Finance
Chambal Fertilisers and Chem. 21 21 498 -29 26 13.0 2.4 1.4 1.5 7  LIC Housing 7.14
Finance
Gulf Oil Lubricants India 22 22 1,102 7 27 16.2 4.0 1.6 3.3 16 

Best PEGs
Bandhan Bank
Ashoka Buildcon
23
24
13
25
171
239
22
26
10
284
9.9
7.0
1.2
2.4
0.6
0.1
0.9
0.0
25
11



3 Top 5 stocks with the least
Zydus Lifesciences 25 27 949 14 54 22.2 4.4 1.1 0.3 61  price earnings to growth ratio
Manappuram National
NMDC 26 26 228 16 6 11.0 2.4 1.9 3.2 47 
Finance Aluminium Com.
Nesco 27 28 1,053 15 18 19.8 3.1 1.5 0.6 6 

Just Dial 28 29 1,120 14 59 18.9 2.2 1.3 0.0 5 

0.10 0.38 0.43 0.48 0.54
CMS Info Systems 29 33 487 19 7 22.2 3.8 2.0 1.2 26 

State Bank Of India 30 31 839 18 5 10.5 1.7 0.8 1.6 217  Ashoka
Buildcon Natco Pharma
LG Balakrishnan
KFin Technologies 31 30 1,155 27 37 66.4 16.3 1.7 0.5 23 
& Bros
Indiamart Intermesh 32 32 2,341 18 36 32.8 7.5 1.0 0.9 23 

UTI Asset Management Comp. 33 34 1,287 32 49 19.6 3.8 0.6 3.6 35  4 Income generators
City Union Bank 34 35 180 10 12 12.7 1.5 2.2 0.8 26  Top 5 stocks with the highest
KPIT Technologies 35 20 1,411 28 49 53.2 15.5 1.4 0.5 59  dividend yield (%)
Nirlon 6.05
Abbott India 36 55 27,378 8 19 45.2 16.5 2.3 1.5 46 
UTI Asset
3.64
Sun Pharmaceutical Industries 37 42 1,734 9 29 37.7 6.0 1.8 0.8 197  Management Com.
Gulf Oil Lubricants
LG Balakrishnan & Bros 38 38 1,278 9 10 14.4 2.3 0.5 1.4 8  3.26
India
Repco Home Finance 39 37 505 14 23 7.1 1.0 0.9 0.6 11  NMDC 3.18
Infosys 40 36 1,857 3 8 28.6 8.5 2.5 2.5 229  Petronet LNG 3.05

HCL Technologies 41 40 1,841 7 9 29.7 7.3 2.8 2.8 127 

DCB Bank 42 39 121 23 11 6.7 0.8 0.7 1.0 15  5 Most widely held
Gland Pharma 43 80 1,718 21 47 41.0 3.2 7.1 1.2 54  Top 5 stocks held by most
number of mutual funds
LTIMindtree 44 41 6,160 4 5 39.2 8.7 1.5 1.1 72 
Infosys Sun Pharmaceutical
Emami 45 47 669 5 12 37.6 11.1 2.0 1.2 55  Industries

Nippon Life India Asset Mgmt. 46 45 691 35 48 33.1 10.7 1.6 2.4 52 
280 229 217 197 141
Muthoot Finance 47 46 1,912 30 17 16.4 2.9 1.1 1.3 59 

LIC Housing Finance 48 68 635 6 17 7.1 1.0 0.6 1.4 48 

Voltamp Transformers 49 43 10,037 16 39 29.8 7.2 1.1 0.9 20  ICICI Bank State Bank Of Kotak Mahindra
India Bank
Tata Elxsi 50 53 6,757 9 4 51.6 17.0 1.8 1.0 17 
SEE NUMBER OF MUTUAL FUNDS HOLDING THE
STOCKS IN THE ADJACENT TABLE.
*REVENUE AND EPS FIGURES BASED ON ONE-YEAR GROWTH. DATA AS ON 29 NOV 2024. SOURCE: VALUE RESEARCH

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP16 User: manish.kumar10 Time: 11-29-2024 16:53 Color:

smart stats
16 The Economic Times Wealth December 2-8, 2024

LAGGARDS & LEADERS

ETW FUNDS 100

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

LAGGARDS LEADERS

BEST FUNDS TO BUILD YOUR PORTFOLIO Equity: Large cap 5-year returns
ET Wealth collaborates with Value Research to identify the top-performing 13.07 26.36
PGIM India Large Cap Fund BHARAT 22 ETF
funds across categories. Equity funds and equity-oriented hybrid funds are 13.18 26.22
ranked on 3-year returns while debt-oriented hybrid and income funds are Axis Bluechip Fund ICICI Prudential BHARAT 22 FOF

ranked on 1-year returns. 13.50 22.27

Groww Large Cap Fund SBI BSE Sensex Next 50 ETF
RETURNS (%)
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%)
14.55 22.22
LIC MF BSE Sensex Index Plan UTI BSE Sensex Next 50 ETF
EQUITY: LARGE CAP 14.63 21.97
Nippon India Large Cap Fund  34,105.04 -1.90 6.60 32.19 21.35 19.80 1.57 Tata BSE Sensex Index Fund Nippon India ETF BSE Sensex Next 50
HDFC Top 100 Fund  36,467.34 -3.96 4.93 25.99 18.59 17.46 1.61
ICICI Prudential Bluechip Fund  63,669.82 -2.74 6.64 30.43 18.29 19.21 1.45 21.35%
JM Large Cap Fund  456.66
2,348.71
-5.36 2.65 33.10 17.55 18.29 2.36 THE 3-YEAR
RETURN
Equity: Flexi cap 5-year returns
Baroda BNP Paribas Large Cap Fund  -3.79 5.93 33.44 17.15 17.79 2.00
1,120.71 OF NIPPON
Quant Focused Fund  -6.87 -0.70 27.89 17.04 21.47 2.15
INDIA 11.84 31.22
DSP Nifty 50 Equal Weight Index Fund - Regular Plan  1,886.93 -6.30 3.83 24.17 16.86 19.31 0.87 LARGE CAP Axis Focused Fund Quant Flexi Cap Fund
Edelweiss Large Cap Fund - Regular Plan  1,081.39 -4.13 5.64 26.39 15.57 16.97 2.18 FUND IS
1,255.06 THE 12.61 24.70
Invesco India Largecap Fund  -1.98 9.13 35.05 15.31 18.14 2.09
HIGHEST ABSL Bal Bhavishya Yojna Parag Parikh Flexi Cap Fund
Canara Robeco Bluechip Equity Fund - Regular Plan  14,580.92 -1.32 8.74 30.32 14.59 17.90 1.66 IN ITS
CATEGORY. 12.98 24.24
EQUITY: LARGE & MIDCAP LIC MF Children’s Fund JM Flexicap Fund
Motilal Oswal Large and Midcap Fund - Regular Plan  6,840.21 3.17 18.24 49.72 25.54 25.57 1.77
13.31 24.01
UTI Large & Mid Cap Fund - Regular Plan  3,976.41 -2.76 12.84 38.78 21.81 23.59 1.96
ABSL Retirement Fund - 30s Plan ICICI Prudential Focused Equity Fund
ICICI Prudential Large & Mid Cap Fund  17,120.29 -4.45 6.23 32.83 21.42 23.23 1.70
HDFC Large and Mid Cap Fund - Regular Plan  23,484.62 -3.98 6.35 30.89 21.38 23.31 1.66
14.06 23.69
Kotak Equity Opportunities Fund - Regular Plan  25,034.05 -1.86 5.12 35.05 21.16 21.70 1.59 Motilal Oswal Focused Fund HDFC Retirement Savings Fund
Quant Large and Mid Cap Fund  3,708.99 -10.46 -4.36 31.47 20.50 24.85 1.88
SBI Large & Midcap Fund  28,660.38 -1.82 9.08 29.45 18.52 21.38 1.60

EQUITY: FLEXI CAP

Equity: Mid cap 3-year returns
JM Flexicap Fund  4,721.61 -5.06 7.47 43.75 26.79 24.24 1.81 14.16 34.93
PGIM India Midcap Opp Motilal Oswal Midcap Fund
HDFC Focused 30 Fund  14,968.50 1.27 10.38 36.80 25.39 22.93 1.68
26.79%
HDFC Flexi Cap Fund  64,928.56 0.54 9.99 37.34 25.15 22.90 1.43
THE 3-YEAR 17.02 28.11
Bank of India Flexi Cap Fund - Regular Plan  1,929.59 -3.24 5.23 41.42 23.14 — 2.02 Axis Midcap Fund HDFC Mid-Cap Opportunities Fund
RETURN OF
Mahindra Manulife Focused Fund - Regular Plan  1,790.90 -5.22 4.96 36.47 21.15 — 2.02 JM FLEXI-
CAPFUND
17.85 26.09
ICICI Prudential Focused Equity Fund  9,867.12 -3.05 8.78 37.52 20.98 24.01 1.74
IS THE DSP Midcap Fund Nippon India Growth Fund
ICICI Prudential Retirement Fund - Pure Equity Plan  1,017.25 -1.04 4.44 38.85 20.70 23.57 2.15
HIGHEST
HDFC Retirement Savings Fund Equity Plan  5,970.04 -2.95 7.14 28.45 20.31 23.69 1.78 IN ITS
17.93 25.75
Franklin India Flexi Cap Fund  17,449.65 -1.76 9.12 33.98 19.51 22.29 1.71 CATEGORY. UTI Mid Cap Fund Edelweiss Mid Cap Fund
Franklin India Focused Equity Fund  12,068.03 -3.04 6.75 30.52 18.02 20.26 1.76 18.24 25.31
Parag Parikh Flexi Cap Fund - Regular Plan  81,918.72 1.23 9.73 29.68 16.65 24.70 1.33 ABSL Mid Cap Fund Mahindra Manulife Mid Cap Fund
SBI Retirement Benefit Fund - Aggressive Plan  2,714.93 -3.13 5.40 23.79 16.37 — 1.94
360 ONE Focused Equity Fund - Regular Plan  7,616.66 -5.11 4.69 27.65 16.23 21.39 1.78
Union Flexi Cap Fund  2,233.82 -2.24 6.10 24.20 14.47 19.43 2.02
Equity: Small cap 3-year returns
EQUITY: MID CAP
Motilal Oswal Midcap Fund - Regular Plan  20,055.68 5.25 24.57 60.57 34.93 32.25 1.62 14.07 28.76
HDFC Mid-Cap Opportunities Fund  75,037.43 -1.17 9.15 35.92 28.11 28.61 1.39 PGIM India Small Cap Fund Bandhan Small Cap Fund
Nippon India Growth Fund  33,922.40 -1.58 10.57 38.17 26.09 29.03 1.59 34.93% 18.03 28.49
Edelweiss Mid Cap Fund - Regular Plan  7,677.01 0.56 15.99 47.01 25.75 29.94 1.74 THE 3-YEAR
RETURN OF
ABSL Small Cap Fund Nippon India Small Cap Fund
Quant Mid Cap Fund  8,940.54 -10.43 -6.22 29.10 23.50 31.52 1.73
MOTILAL 18.57 27.33
Kotak Emerging Equity Fund - Regular Plan  50,627.29 -0.71 11.68 39.26 23.18 27.01 1.43 OSWAL
Kotak Small Cap Fund Quant Small Cap Fund
SBI Magnum Midcap Fund  21,406.76 -3.58 7.26 25.67 19.11 26.77 1.67 MIDCAP
FUND IS THE 19.24 25.80
EQUITY: SMALL CAP HIGHEST
ABSL Nifty Smallcap 50 Index Invesco India Smallcap Fund
Nippon India Small Cap Fund  61,027.03 -3.11 10.17 34.93 28.49 35.50 1.43
IN ITS
CATEGORY. 19.63 25.78
Tata Small Cap Fund - Regular Plan  9,463.78 -0.36 17.35 38.95 25.30 31.99 1.70
ICICI Prudential Smallcap Fund HSBC Small Cap Fund
EQUITY: VALUE ORIENTED

Hybrid: Aggressive 5-year returns

JM Value Fund  1,066.84 -7.73 5.99 36.69 26.22 24.67 2.19
SBI Contra Fund  40,486.05 -4.01 6.43 32.02 24.40 29.62 1.52
ICICI Prudential Value Discovery Fund  49,104.38 -3.30 9.41 32.24 23.05 25.67 1.54 26.22%
Templeton India Value Fund  2,198.89 -5.72 4.31 30.63 21.89 24.14 2.05 THE 3-YEAR 11.76 26.21
RETURN OF ABSL Retirement Fund - 40s Plan BoI Mid & Small Cap Equity & Debt
Bandhan Sterling Value Fund - Regular Plan  10,035.78 -4.07 5.96 30.12 20.72 25.62 1.75
JM VALUE
EQUITY: ELSS FUND IS 11.92 24.35
THE HIGH- PGIM India Hybrid Equity Fund JM Aggressive Hybrid Fund
Motilal Oswal ELSS Tax Saver Fund - Regular Plan  4,073.72 2.74 17.36 54.44 26.14 23.40 1.83 EST IN ITS
SBI Long Term Equity Fund - Regular Plan  27,559.31 -3.55 7.68 42.20 24.86 24.46 1.60 CATEGORY. 12.14 23.36
HDFC ELSS Tax Saver Fund  15,934.95 -1.51 7.78 35.66 22.80 21.04 1.71 Shriram Aggressive Hybrid Fund Quant Absolute Fund
DSP ELSS Tax Saver Fund  16,841.49 -2.54 10.65 38.66 20.14 21.65 1.64 12.37 21.59
Bank of India ELSS Tax Saver Fund - Regular Plan  1,435.90 -3.98 2.68 35.26 19.44 25.23 2.08 Axis Children’s ICICI Prudential Equity & Debt Fund
Parag Parikh ELSS Tax Saver Fund - Regular Plan  4,273.94 -0.10 10.84 27.65 18.81 23.15 1.72 12.42 19.16
Quant ELSS Tax Saver Fund  10,979.71 -9.53 -5.02 26.82 18.40 30.54 1.72 Axis Aggressive Hybrid Fund Mahindra Manulife Aggressive Hybrid
Kotak ELSS Tax Saver - Regular Plan  6,148.14 -1.76 4.58 32.19 18.06 20.23 1.76
ANNUALISED RETURNS IN % AS ON 27 NOV 2024.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP17 User: manish.kumar10 Time: 11-29-2024 16:54 Color:

smart stats
The Economic Times Wealth December 2-8, 2024 17

ETW FUNDS 100 RETURNS (%)

Value Research Net Assets Expense

1 Top 5 SIPs
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio

HYBRID: EQUITY SAVINGS

HSBC Equity Savings Fund  548.49 1.76 9.08 23.15 13.17 13.18 1.51 Top 5 equity schemes based
Kotak Equity Savings Fund - Regular Plan  7,804.46 -0.19 5.37 16.83 11.67 11.23 1.77 on 10-year SIP returns
UTI Equity Savings Fund - Regular Plan  613.13 -0.19 4.12 13.44 10.43 11.07 1.65
13.17%
Quant Small Cap Fund
SBI Equity Savings Fund - Regular Plan  5,616.38 1.53 6.24 14.05 10.41 11.24 1.19 THE 3-YEAR
RETURN OF 27.30
ICICI Prudential Equity Savings Fund  12,406.21 1.03 5.34 9.80 8.57 8.14 0.97
HSBC EQUITY
SAVINGS FUND Nippon India Small Cap Fund
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) IS THE 25.95
JM Aggressive Hybrid Fund  678.92 -3.99 5.94 35.24 22.98 24.35 2.27 HIGHEST IN
ITS CATEGORY. Motilal Oswal Midcap Fund
SBI Magnum Children's Benefit Fund - Investment Plan  2,824.86 -1.07 17.36 37.99 21.00 — 1.93
ICICI Prudential Equity & Debt Fund  40,203.38 -2.76 5.51 27.08 19.61 21.59 1.58 24.63
Bank of India Mid & Small Cap Equity & Debt Fund  1,009.82 -3.21 9.35 29.11 18.96 26.21 2.25 Quant ELSS Tax Saver Fund
ICICI Prudential Retirement Fund - Hybrid Aggressive Plan  690.95 -2.20 3.91 33.46 17.79 18.17 2.27 23.48
UTI Aggressive Hybrid Fund - Regular Plan  6,110.59 -1.28 10.13 28.35 17.08 18.80 1.87
HSBC Small Cap Fund
Edelweiss Aggressive Hybrid Fund - Regular Plan  2,195.03 -2.50 7.56 26.94 16.72 17.86 1.97
HDFC Children's Fund Regular Plan  9,858.39 -0.07 7.26 24.62 16.64 18.58 1.73 23.33
Kotak Equity Hybrid Fund - Regular Plan  6,606.22 -0.94 9.86 29.04 15.93 18.29 1.77 SIP: SYSTEMATIC % ANNUALISED RETURNS
Baroda BNP Paribas Aggressive Hybrid Fund - Regular Plan  1,169.40 -0.92 7.71 27.84 15.19 16.47 2.11 INVESTMENT PLAN AS ON 27 NOV 2024
HDFC Retirement Savings Fund - Hybrid Equity Plan  1,576.72 -1.27 6.87 22.18 14.81 17.35 2.08
Quant Absolute Fund  2,250.71 -6.91 -2.81 23.87 14.22 23.36 2.00

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

SBI Magnum Children's Benefit Fund - Savings Plan  121.44 1.61 11.09 19.73 12.00 13.25 1.21
2 Top 5 SWPs
Top 5 conservative hybrid schemes
Kotak Debt Hybrid Fund - Regular Plan  2,999.05 0.17 5.08 15.39 9.76 11.35 1.66
19.73% based on 3-year SWP returns
HDFC Hybrid Debt Fund  3,319.58 0.27 4.16 13.99 10.21 10.77 1.76
ICICI Prudential Regular Savings Fund  3,220.38 0.49 5.42 13.38 9.24 9.72 1.66 THE 1-YEAR Bank of India Conservative Hybrid Fund
RETURN OF
SBI Conservative Hybrid Fund  10,076.16 0.55 5.01 13.28 9.40 10.95 1.12 14.25
SBI MAGNUM
Bank of India Conservative Hybrid Fund - Regular Plan  66.46 0.06 2.59 10.29 13.30 11.93 2.23 CHILDREN’S
SBI Magnum Children’s Benefit Fund
BENEFIT
HYBRID: DYNAMIC ASSET ALLOCATION FUND IS THE 11.71
HDFC Balanced Advantage Fund  94,865.65 -1.96 4.02 26.33 22.24 20.02 1.35 HIGHEST
IN ITS Parag Parikh Conservative Hybrid Fund
Baroda BNP Paribas Balanced Advantage Fund  4,114.54 0.59 6.75 23.50 13.57 16.17 1.89
CATEGORY. 11.30
Edelweiss Balanced Advantage Fund - Regular Plan  12,306.19 -2.68 3.74 20.69 11.64 14.86 1.69
ICICI Prudential Balanced Advantage Fund  60,544.87 -1.05 5.54 17.79 12.58 12.91 1.46 ICICI Prudential Income Optimizer Fund (FOF)
Tata Balanced Advantage Fund - Regular Plan  10,288.08 -1.20 3.68 17.44 11.48 13.05 1.70 11.22
DEBT: FLOATER SBI Retirement Benefit Fund
SBI Floating Rate Debt Fund - Regular Plan  1,169.78 1.76 4.05 8.25 6.52 — 0.46 10.51
Aditya Birla Sun Life Floating Rate Fund - Regular Plan  13,141.87 1.95 3.92 7.99 6.57 6.42 0.44
SWP: SYSTEMATIC % ANNUALISED RETURNS
WITHDRAWAL PLAN AS ON 27 NOV 2024
DEBT: BANKING AND PSU
Aditya Birla Sun Life Banking & PSU Debt Fund  9,506.51 1.82 3.96 8.00 5.95 6.43 0.73
HDFC Banking and PSU Debt Fund - Regular Plan  5,809.44 1.75 3.86 7.96 5.80 6.32 0.79
ICICI Prudential Banking & PSU Debt Fund
ITI Banking and PSU Fund - Regular Plan


9,046.67
31.24
1.78
1.71
3.80
3.53
7.85
7.72
6.20
5.87
6.56
—
0.74
0.70
8.00%
THE 1-YEAR
RETURN OF
3 Small Cap : Cash Holdings
Bandhan Banking & PSU Debt Fund - Regular Plan  13,429.06 1.74 3.80 7.70 5.80 6.29 0.63
ABSL BANK-
ING & PSU
DEBT: SHORT TERM 16.32 16.25
FUND IS THE
HDFC Short Term Debt Fund  14,972.01 1.87 4.09 8.42 6.12 6.66 0.71 HIGHEST IN 12.47
Axis Short Duration Fund  9,303.57 1.85 3.95 8.11 5.95 6.31 0.89 ITS CATEGORY. 10.96
9.81
Sundaram Short Duration Fund  222.93 2.05 4.07 8.11 5.92 7.49 0.83
Aditya Birla Sun Life Short Term Fund - Regular Plan  8,923.74 1.86 3.93 8.04 6.13 6.55 1.01
UTI Short Duration Fund - Regular Plan  2,675.97 1.89 3.83 8.04 6.00 7.35 0.83
ICICI Prudential Short Term Fund  19,922.45 1.85 3.92 7.98 6.43 6.81 1.02

DEBT: CORPORATE BOND Quantum ICICI Axis Quant Bank

Small Cap Prudential Small Cap Small Cap of India
Aditya Birla Sun Life Corporate Bond Fund  23,336.78 1.97 4.25 8.67 6.42 7.04 0.52 Fund Smallcap Fund Fund Small Cap
HDFC Corporate Bond Fund  32,072.16 1.96 4.25 8.62 6.13 6.82 0.61 Fund Fund
Nippon India Corporate Bond Fund  5,945.77 1.99 4.22 8.58 6.50 6.80 0.70
Kotak Corporate Bond Fund - Standard Plan  14,162.63 1.89 4.12 8.41 6.07 6.34 0.67 Expense as on 31 October 2024
Returns as on 27 November 2024 % OF ASSETS AS ON 31 OCT 2024
Axis Corporate Bond Fund - Regular Plan  6,104.31 1.79 3.99 8.12 5.99 6.61 0.91
Assets as on 31 October 2024

Debt: Medium to
ICICI Prudential Corporate Bond Fund  27,164.45 1.90 3.98 8.11 6.46 6.86 0.58

4
Rating as on 31 October 2024
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns.
Did not find your fund here? Long Duration
Log on to www.wealth.economictimes.com for an exhaustive list.

Methodology Debt funds with less than Categories 1.10

1.06 1.07
18-months performance Equity: Large-cap: Funds investing at Hybrid: Conservative: Funds investing
The Top 100 includes only least 80% in large cap stocks. 10-25% in equity, and the rest in debt. 0.89
history and equity
those funds that have a 0.77
5- or 4-star rating from
Value Research. The rating
and hybrid funds with
less than three-years
Equity: Large & MidCap: Funds invest-
ing at least 35% each in large and
Hybrid: Equity Savings: Funds investing
at least 65% in equity and equity related FUND
RAISER
performance track record mid caps. instruments, and at least 10% in debt.
of a fund vis-à-vis other
are not rated. This ensures Equity: Flexi Cap: Funds investing at Hybrid: Dynamic Asset Allocation:
funds in its category is least 65% in equity with no particular Funds which dynamically manage
that all the funds have
determined by subtracting cap on large, mid or small. the asset allocation between equity
existed long enough to be
a fund’s risk score from its Equity: Mid Cap: Funds investing at
and debt.
tracked for consistency

54.1%
return score. The resulting least 65% in mid caps. Debt: Short Duration: Funds with
of performance. Given DSP Union Axis Nippon HSBC
number is assigned stars Macaulay duration between 1 and 3
the focus on long-term Equity: Small Cap: Funds investing at Bond Medium Strategic India Medium
according to the following least 65% in small caps.
years at the portfolio level.
investing, we have Fund - Duration Bond Strategic Duration
distribution: Debt: Corporate Bond: Funds investing
(Not considered only the Equity: Value Oriented: Funds fol- Retail Fund Fund Debt Fund
at least 72% in AA+ and above-rated
covered ‘growth’ plan of funds as lowing value/contrarian investment
corporate bonds. of the 146 hybrid funds Plan Fund
in ETW it reinvests interim gains strategy and grouped under ‘Value’ or
Top 10% underperformed their
Funds 100 unlike ‘IDCW’ plan which ‘Contra’ categories as per SEBI. Debt: Banking and PSU: Funds invest-
Next 22.5% listing) ing at least 72% in the debt instruments respective benchmarks in % AS ON 31 OCT 2024
offers periodic payouts to ELSS: Equity: With a lock-in of three
Middle 35% of banks, PSUs, public financial institu-
investors, thereby reducing years and tax benefit under Section 80C.
tions and municipal bonds.
the last one year. % EXPENSE RATIO IS CHARGED ANNUALLY.
Next 22.5% NAV. The fund categories Hybrid: Aggressive: Funds investing METHODOLOGY OF TOP 100 FUNDS ON
Debt: Floater: Funds investing at least
Bottom 10% are: 65-80% in equity, and the rest in debt.
58.5% in floating-rate instruments. Source: ACE MF. WWW.WEALTH.ECONOMICTIMES.COM

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP18 User: manish.kumar10 Time: 11-29-2024 16:55 Color:

loans and deposits

18 The Economic Times Wealth December 2-8, 2024

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 8.05 10,830 external benchmarks for pricing new home loans. Most banks have
IndusInd Bank 7.75 10,798 picked the RBI repo rate as the external benchmark.
RBL Bank 7.50 10,771
Karnataka Bank 7.35 10,756 REPO RATE: 6.5%
YES Bank 7.25 10,745 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
RBL Bank 8.00 11,717 City Union Bank 9.70 8.25 10.50 8.25 10.50 23 May 2024
IndusInd Bank 7.75 11,659 Indusind Bank -- 8.35 9.90 8.35 9.90 Not Given
DCB Bank 7.50 11,602 Bank of Maharashtra 9.30 8.35 10.40 8.45 10.90 19 Oct 2024
Karnataka Bank 7.35 11,568
Union Bank of India 9.25 8.35 10.75 8.35 10.75 7 Oct 2024
Bandhan Bank 7.25 11,545
Indian Overseas Bank 9.35 8.40 10.50 8.50 10.60 13 Oct 2023
TENURE: 3 YEARS
Bank of Baroda 9.15 8.40 10.60 8.40 10.60 14 Feb 2023
DCB Bank 7.55 12,516
Bank of India 9.35 8.40 10.70 8.40 10.85 1 Jun 2024
RBL Bank 7.50 12,497
UCO Bank 9.30 8.45 10.30 8.45 10.30 15 Mar 2023
Bandhan Bank 7.25 12,405
IndusInd Bank 7.25 12,405 IDBI Bank 9.20 8.45 10.85 8.60 12.35 12 Aug 2024
YES Bank 7.25 12,405 SBI Term Loan 9.15 8.50 9.65 8.50 9.65 5 Apr 2024

TENURE: 5 YEARS
Canara Bank 9.25 8.50 11.20 8.55 11.25 12 Nov 2024
DCB Bank 7.40 14,428 Punjab & Sind Bank 8.45 8.55 10.00 8.55 10.00 3 Oct 2024
Dhanlaxmi Bank 7.25 14,323 Indian Bank 9.20 8.60 8.85 8.85 10.35 5 Oct 2024
IndusInd Bank 7.25 14,323 Karnataka Bank -- 8.60 10.62 8.60 10.62 1 Nov 2024
YES Bank 7.25 14,323 South Indian Bank 9.85 8.70 11.20 8.75 11.70 Not Given
RBL Bank 7.10 14,217 Kotak Mahindra Bank -- 8.75 9.00 8.75 9.00 Not Given
HDFC Bank -- 8.75 9.95 8.75 9.95 Not Given
Top five senior citizen bank FDs Federal Bank -- 8.80 10.25 10.20 10.30 16 Nov 2024
Interest rate (%) What `10,000 Karur Vysya Bank 9.90 9.00 11.05 9.00 11.05 19 Aug 2024
TENURE: 1 YEAR compounded qtrly will grow to
J & K Bank 9.35 9.10 10.20 9.10 10.20 10 Nov 2024
Bandhan Bank 8.55 10,883
IndusInd Bank 8.25 10,851
Bandhan Bank -- 9.16 13.33 9.16 13.33 Not Given
RBL Bank 8.00 10,824 ICICI Bank -- 9.25 9.90 9.40 10.05 Not Given
Karnataka Bank 7.85 10,808 Dhanlaxmi Bank 8.50 9.35 10.00 9.85 10.50 1 Aug 2024
YES Bank 7.75 10,798

TENURE: 2 YEARS
RBL Bank 8.50 11,832
Your EMI for a loan of `1 lakh
IndusInd Bank 8.25 11,774 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
DCB Bank 8.00 11,717
@ 7% 1,980 1,161 899 775 707
Karnataka Bank 7.85 11,682
ICICI Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.05 12,701
@ 9% 2,076 1,267 1,014 900 839
RBL Bank 8.00 12,682
@ 10% 2,125 1,322 1,075 965 909
YES Bank 8.00 12,682
Bandhan Bank 7.75 12,589 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
IndusInd Bank 7.75 12,589

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

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

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

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

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
([email protected]) Data as on 28 Nov 2024 #Benefit available only for 5-year deposit

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP19 User: manish.kumar10 Time: 11-29-2024 17:04 Color:

mutual funds
The Economic Times Wealth December 2-8, 2024 19

DSP SMALL CAP

Chasing small-cap success

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 Chemicals 13.71

FUND BENCHMARK CATEGORY AVERAGE FACTS Capital Goods 11.02

Materials 9.48
32.70 32.17 30.88 DATE OF LAUNCH
Consumer
30.30 29.83
26.94 14 JUN 2007 Discretionary 9.31
23.28 22.30 CATEGORY
21.87 Consumer
EQUITY staples 8.97
TYPE
The fund’s sector positioning
SMALL CAP
is well diversified.
AUM*
AS ON 31 OCT 2024
`16,147 crore
1-YEAR 3-YEAR 5-YEAR
BENCHMARK
The fund has lagged index and AS ON 26 NOV 2024 BSE 250 SMALLCAP
peers in recent years. TOTAL RETURN INDEX Top 5 stocks in portfolio (%)

Jubilant Ingrevia 3.52

Rolling returns (%) FUND BENCHMARK

WHAT IT eClerx Services 3.15

26.10
COSTS Suprajit
Engineering 2.95
1-YEAR
NAV** Welspun Corp 2.93
22.04
GROWTH OPTION Dodla Dairy 2.67
`194.69
23.46
IDCW The portfolio is well diversified in individual
3-YEAR
`63.31 bets with modest positions in top picks.
16.24
MINIMUM INVESTMENT
`100 AS ON 31 OCT 2024
20.21
5-YEAR MINIMUM SIP AMOUNT
12.08 `100 Recent portfolio changes
EXPENSE RATIO # (%)
New entrants
AS ON 26 NOV 2024
1.72
The fund’s long-term track record indicates Navin Fluorine International, West
sharp outperformance across time frames. EXIT LOAD
Coast Paper Mills (Sep).
Note: Returns are rolled daily over past decade for relevant time frames. 1% for redemption
within 364 days R Systems International (Oct).
*AS ON 31 OCT 2024

WHERE THE FUND INVESTS

**AS ON 26 NOV 2024
#AS ON 31 OCT 2024
Complete exits
Firstsource Solutions, IIFL Finance
Portfolio asset (Sep)
Fund
allocation
style box
Growth Blend Value How risky is it?
Fund Category Index
Equity 94.37%
Large

Standard Deviation 16.25 15.26 17.83

CAPITALISATION

Mid caps 3.41

Medium

Small caps 96.59 Sharpe Ratio 1.00 1.07 0.99

Cash 5.63 Mean Return 22.09 22.00 23.38

FUND
Small

BASED ON 3-YEAR PERFORMANCE.

INVESTMENT STYLE MANAGER The fund’s risk-return profile has

The fund runs a heavier tilt towards VINIT SAMBRE slipped in recent years.
AS ON 31 OCT 2024 14 YEARS, 4 MONTHS AS ON 31 OCT 2024
small-caps than many of its peers.
Source: Value Research

Should This fund was previously run with

the ‘micro-cap’ moniker, but was
quality, growth-oriented business
with healthy cash flows, scalability
keep pace with the index and peers
in the past two years, even as it
You repositioned as a small-cap offering
a few years ago. It runs a heavier
and strong management. The
portfolio is well diversified,
boasts an impressive longer term
track record. The fund needs to get
Buy tilt towards small-caps than many
of its peers. The preference is for
running modest positions in its
top bets. The fund has struggled to
back on its feet quickly to avoid
playing catch-up for longer time.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP20 User: manish.kumar10 Time: 11-29-2024 17:05 Color:

pick of the week

20 The Economic Times Wealth December 2-8, 2024

Astral: Resilient growth

Strong distribution network, product innovation and industry tailwinds to drive performance.

T
he building materials company missed analysts’ The paints segment is driven by rising incomes, prefer- Fundamentals
estimates (compiled by Reuters-Refinitiv) in the ence for durable, aesthetic paints, and real estate growth. CONSENSUS
ACTUAL
September quarter. The revenue, EBITDA and PAT Sanitaryware demand stems from modern bathroom trends, ESTIMATE
fell short of estimates by 7.7%. 10.5% and 19.2% re- hospitality growth, and replacement needs. The company en- 2022-23 2023-24 2024-25 2025-26
spectively. The performance was impacted by a decline in joys multiple strongholds, which help in sustaining growth. Revenue (` cr) 5,158.50 5,641.40 6,332.30 7,511.01
volumes amid channel destocking due to volatility in PVC Robust manufacturing capabilities, product innovation, EBIT (` cr) 809.90 918.20 1,039.50 1,285.20
prices. A slowdown in construction activities amid extended extensive distribution network, strong brand equity, diversi- Net profit/loss (` cr) 456.60 546.10 608.70 791.35
monsoons also contributed to the muted volume growth. fied product portfolio and foray into value-added segments
EPS (`) 17.00 20.33 22.60 29.45
The plumbing segment reported a decline in revenue are some of the factors that help it maintain its competitive
strength.
Valuations
growth, whereas the adhesives and DIVIDEND
PBV PE YIELD (%)
Analysts’ views
paints segments reported decent The ongoing capacity expansion is
revenue growth. The management expected to contribute to top-line growth Astral 15.24 92.45 0.21
expects volumes to improve in the in the future. While the Hyderabad Supreme Industries 11.25 52.68 0.66
second half of 2024-25 as stabilisa- 2 plant began operations in September,
tion in PVC prices will lead to chan- Sell 13 commercial production of O-PVC at the
Finolex Industries 2.96 20.77 0.93
Buy Shaily Engineering Plastics 12.94 81.18 0.08
nel restocking by the dealers. It has Dholka plant and PTMT plastic taps will
Prince Pipes and Fittings 3.07 35.97 0.23
guided for 10-15% volume growth begin by the end of the third quarter of
in the pipe business and 15% rev-
enue growth in the India adhesive
7 the current financial year. It is also set-
ting up capacities in Kanpur for water
Brokerage calls TARGET
Hold RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
segment in 2024-25. Anticipated tanks to cater to the growing demand.
anti-dumping duties on PVC resin, Analysts list superior product mix, 26 Nov 24 AnandRathi Buy 2,666
likely BIS norms on PVC and higher cost rationalisation, healthy balance 8 Nov 24 Antique Stock Broking Buy 2,450
freight costs are expected to support sheet, expected improvement in the UK 8 Nov 24 IDBI Capital Hold 1,943
Astral is a beneficiary of the buoyant prospects of
PVC prices. Apart from volume plastic pipes and sanitaryware segments. business and paint business and aggres- 8 Nov 24 ICICI Securities Hold 1,822
growth, the rising prices will also sive capex plans as the key positives. 7 Nov 24 Yes Securities Buy 2,135
lead to inventory gains and support profitability. Selection methodology: We pick the stock that has shown
The company exports to more than 31 countries the manu- the maximum increase in ‘consensus analyst rating’ during Relative performance
facturing units are spread across India, the US and UK. It is a the past three months. The consensus rating is arrived at by 121.2
100 MARKET PRICE: `1808.35
beneficiary of the buoyant growth prospects of plastic pipes, averaging all analyst recommendations after attributing
water tanks, adhesives, paints and sanitaryware segments. weights to each of them (1 for strong buy, 2 for buy, 3 for hold, 4
Factors like the government’s focus on improving water for sell, 5 for strong sell). An improvement in consensus ana- SENSEX
119.4
infrastructure, increasing urbanisation, rising demand for lyst rating indicates that the analysts are getting bullish on
housing and irrigation demand for agriculture are the key the stock. Only stocks with more than five analysts covering
growth drivers of the plastic pipes and water tanks segment. them are considered. You can see similar consensus analyst
93.6
On the other hand, the expanding construction industry, ris- rating changes during the past week in ETW 50 table.
28 NOV 2023 Astral ET 500 28 NOV 2024
ing automotive production and increasing demand from the —Sameer Bhardwaj
Astral is compared with ET 500 and BSE Sensex. Stock and index values normalised
packaging industry are driving the adhesives segment. to a base of 100. Source: ETIG and Reuters-Refinitiv

WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
STOCK ADVICE COMMENT
HOUSE PRICE (`) PRICE (`) UPSIDE (%)

Initiate with ‘buy’ as it is well-positioned to capitalise on India’s growing geospatial sector supported by gov-
Genesys International Elara Capital Buy 758 1,370 80.7 ernment initiatives. Also, its superior technological positioning, leadership in 3D mapping and attractive valua-
tions are the other positives.
Rate ‘buy’ despite the weak September quarter due to the strong growth in Retailer Shakti sales, strong bal-
Sastasundar Ventures Systematix Buy 291 457 57.0 ance sheet, favourable risk-reward profile and plans to reinitiate B2C business.
Initiate with ‘buy’ due to expectations of robust EBITDA growth over the next three years supported by likely
Awfis Space Solutions IIFL Securities Buy 677 980 44.8 doubling of revenues and operating leverage benefits. Also, focus on smaller cohorts, product differentiation
and superior RoCE are the other positives.
Maintain ‘buy’ as it is better placed within the industry in terms of lower levels of guaranteed products, cost
SBI Life Insurance
ICICI Securities Buy 1,485 1,978 33.2 structure and deeper population access. Also, distribution and margin levers and attractive valuations are the
Company key positives.

Transport Corporation of Reiterate ‘buy’ as its well-diversified logistics portfolio and established infrastructure make it well positioned to
Motilal Oswal Buy 1,061 1,290 21.6
India capitalise on India's expanding logistics sector.

Maintain ‘buy’ due to investments in GenAI capabilities, strong earnings growth potential, portfolio mix
LTIMindtree Nuvama Buy 6,223 7,550 21.3 geared towards growth, a strong deal pipeline and the likely improvement in margins in future through cost
synergies.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Retain ‘reduce’ despite impressive EV launch as the E-PV category is likely to see slow offtake amid customer
Mahindra & Mahindra Emkay Reduce 2,985 2,700 -9.6 worries around charging infra and resale value. Increase in competitive pricing is another concern.

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDP21 User: manish.kumar10 Time: 11-29-2024 16:23 Color:

QA
your queries

&
The Economic Times Wealth December 2-8, 2024 21

I’m 53 and work in the private sector. I have I am a 70-year-old retired government
`35 lakh in the Provident Fund and `15 employee and pensioner. I had invest-
lakh in the NPS. Since my PF pension is like- ed `10 lakh in the SBI corporate bonds,
ly to be minimal, which pension plan can but am not satisfied with the returns.
help me get `80,000 to `1 lakh per month if Can I switch to the SBI Senior Citizens’
I have a five-year investment horizon? Savings Scheme (SCSS) or the Post
Office SCSS for better returns? What

Annuity plans usually generate a return of

Our panel of experts will will be the tax implications for me?

5-7% depending on the company and inter- answer questions related to You can switch your funds from SBI corpo-
est rates at the time of starting the invest-
ment. To get a monthly pension of any aspect of personal rate bonds to the SBI SCSS or Post Office
`80,000-1 lakh, your corpus should be SCSS, both of which offer attractive interest
`1.4 crore to `2.4 crore, depending on the
finance. If you have a query, rates for senior citizens. Here’s a brief over-
prevailing interest rate. Assuming 6% re- mail it to us right away. view of both options and their taxation de-
turn, you need to select deferred annuity tails:
plans for a premium of `2 lakh to `3.44
lakh per month for five years. It is not ad-
QUESTION OF THE WEEK SBI SCSS
Interest rate: Typically higher than many
visable to rely on a fixed monthly pension fixed deposits, subject to change. As of
for your post-retirement expenses because now, it’s around 8% per annum.
of the eroding impact of inflation. There- Tenure: Five years, with an option to ex-
fore, you must invest in a portfolio that can tend for another three years.
I am 51 years old and earn `52 lakh annually. Taxation: Interest earned is taxable as per
provide a payout adjusted for inflation.
The best way to achieve this is by start- I invest `1 lakh monthly in mutual funds and your tax slab. The scheme qualifies for de-
ing systematic investment plans (SIPs) in retirement plans, and am expecting `2 crore duction under Section 80C for up to `1.5
direct plans of dynamic asset allocation at the time of retirement, along with a `1 lakh a year, but only for the principal
hybrid mutual funds, which can generate amount deposited, under the old tax re-
crore inheritance. I own a flat worth `1 crore
8-10% return over the long term. You can gime.
in Pune, which yields `28,000 rent, after POST OFFICE SCSS
start a monthly systematic withdrawal
plan (SWP) after five years from these `5,000 maintenance. I have one year worth Interest rate: Similar to the SBI SCSS, it’s
funds, which will ensure that a fixed of home loan EMIs left to pay. My wife owns around 8% per annum, subject to change.
amount gets redeemed from these funds a flat in Navi Mumbai, which too is rented. Tenure: Five years, with an option to ex-
and gets credited to your bank account. tend for another three years.
Should I sell my flat and invest in balanced
You can modify the SWP Taxation: Interest earned is taxable as per
funds via an SWP, or hold it for eight more your tax slab. Like the SBI SCSS,
amount based on your
needs later on.
years? I aim to generate `1 lakh a month it qualifies for deduction
from next year onwards. Is this plan viable? under Section 80C un-
Also, which funds should I consider? der the old tax regime.
Sumit Duseja,
Co-founder & CEO,
Truemind Capital (Sebi-
registered Investment Adviser)
Sudhir Kaushik
Co-founder & CEO,
You are aiming for a stable income of `1 lakh per TaxSpanner
month, starting next year, contingent on the sale of
your Pune apartment. This means that the
My father passed away in November 2020.
additional monthly income of `1 lakh per month is
not an immediate necessity. Considering your I inherited `20 lakh and want to
He had mentioned owning some banking invest it conservatively for 5-7 years,
stocks that he wanted to gift to my son, but current assets, it is wise to focus on their growth prioritising capital safety and stable
we couldn’t complete the transfer. I have no until retirement. returns. I’m cautious about risks and
details about his demat or trading account. Since you already own an apartment in your prefer not to use fixed deposits. Could
How can I find and transfer these stocks?
We have his death and legal heir certifi-
wife’s name, selling the Pune apartment, which has you suggest mutual funds that offer
steady growth with limited volatility?
cates. My mother and sibling are alive. a relatively low rental yield, could be a practical
option. If you decide to sell the apartment, you
should look at adding the funds to your mutual For capital preservation with moderate
Since you don’t have the documents con-
fund portfolio for retirement. Avoid starting an growth, consider equity savings funds.
firming your father’s stock holdings, start
SWP next year. Allow the funds to grow and initiate These hybrid funds mix equity, arbitrage
by checking his last residence for dividend
withdrawals on retiring. and debt, offering better yields than fixed
warrants or KYC update requests from
The choice of schemes will depend on your income with lower volatility. Some op-
banks. Review his last two years’ bank
tions include ICICI Pru Equity Savings
statements for dividend credits. If he had current mutual fund holdings. Broadly, large-cap
Fund (maximum 20% equity) and Edel-
a demat account, look for holding state- funds, balanced advantage funds or multi-asset
weiss Equity Savings Fund (maximum 25%
ments from NSDL/CDSL via e-mail or post. funds can be a decent choice. Additionally, since equity). Both have strong records in man-
If no leads emerge, visit the IEPF web- you are less than a decade away from retirement, aging volatility and delivering returns.
site to search for unclaimed shares and any major financial decision should be taken Hold for at least three years, and consider
dividends. Once you find details, contact after proper retirement planning. splitting your investment
the RTA/banks and follow Sebi’s proce- This will ensure that you have between both funds for
dures for share transmission. The required
sufficient funds during the diversification.
documents may include affidavits,
indemnitie, and a succession
retirement phase, which is
certificate or probate, de- likely to run into decades. This
will take care of inflation- Rushabh Desai
pending on the case. Founder, Rupee With Rushabh
adjusted household expenses, Investment Services
along with other expenses.
Rajat Dutta Prableen Bajpai
Founder & Initiator, Have a question for the experts?
Founder, FinFix Research and Analytics
Inheritance Needs Services [email protected]

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWDP22 User: manish.kumar10 Time: 11-29-2024 16:27 Color:

your feedback & more...

22 The Economic Times Wealth December 2-8, 2024

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.
Thank you ET Wealth for identifying possible, engage in open family discussions on
the best funds across short, medium and
long terms, as well as dynamic catego-
ries. Whether one seeks stable returns
Understanding the subject.
Pradeep Rastogi

or big gains, the cover story guides

investors in choosing the funds aligned
debt funds Uma Shashikant rightly emphasises the
importance of a will for leaving an equitable
with their needs. The cover story ‘Which debt fund is for legacy. In the example cited in the story, the
Harshvardhan Pathak
you?’ provides a good explanation of debt son feels that the parents’ decision to leave
funds and their potential benefits. It aligns their flat to the widowed daughter is unfair.
Dhirendra Kumar’s article ‘Balancing eq- with the ongoing discussions on rate cuts, However, parents prioritised the daughter’s
uity and debt’ offers a fresh perspective indicating that debt funds are set to per- need as greater than the son’s. Ultimately, the
on investing. He introduces a straightfor- form well in the coming months. Experts parents have absolute discretion in deciding
ward approach that can assist the average anticipate a 50 basis point rate cut in 2025 as how and to whom they bequeath their assets.
investor in generating returns, regardless inflation cools down. As mentioned in the Mani Bhushan
of market conditions. While many young story, when rates fall, bond yields will drop,
investors allocate 100% to equity mutual boosting NAVs of debt funds, with long- Uma Shashikant explores three family sce-
funds, a high-risk approach, Kumar high- duration funds poised to gain the most. narios in her article on parents leaving a will.
Atul Sharma
lights the importance of diversification She highlights how wealth division can lead
and proper asset allocation. As he aptly to sibling discontent but emphasises that a
points out, success lies in mastering as- the focus should be assured returns. A In her article ‘Leaving an equitable legacy’, legally executed will is the proper recourse for
set allocation and regular rebalancing to well-structured portfolio should be simple, Uma Shashikant explores the complex and parents. Overall, it’s a well-written piece.
achieve stability and growth. understandable, and free of legal complica- thought-provoking topic of wealth distribu- Darshan Godbole
Sandesh Pawar tions. This pragmatic approach ensures tion among children. She examines situa-
effective and hassle-free wealth manage- tions where parents may choose to divide
I read Dhirendra Kumar’s article with ment, devoid of jargon that is difficult to their assets equitably rather than equally, CORRIGENDUM
In the issue dated 25 November, the exit load of
interest. It highlights that lending understand, and offering a clear path to potentially favouring one child over another.
DSP Business Cycle fund was incorrectly mentioned.
money is one of the primary ways to gen- financial stability and sustained growth. In such cases, it is essential to clearly articu- The exit load is 0.5% for redemption within one
erate returns. For investors, however, S. Ramakrishnasayee late these decisions in the will and, where month and not 10 months. The error is regretted.

Futures & Options

If you are confused by personal finance terms, jargon and calculations, here’s a
series to simplify and deconstruct these for you. In the 27th part of this series,
Riju Mehta demystifies these two types of derivative instruments.

‘Futures’ and ‘options’ are known as ‘derivative’

products, which means that they don’t have any value of
What are futures? What are options?
their own and ‘derive’ value from the price movements It is a contract between a buyer and It is also a contract between a buyer A call option is one that gives the
of the underlying assets or financial instruments. These seller to trade an asset at a fixed, and seller, but while the buyer has trader the choice, not an obligation,
can include financial instruments like stocks, indices and predetermined price and on a specific a choice to execute the contract, to buy an asset at a predetermined
currencies, or commodities like crops, oil, petroleum, date. It’s compulsory for both the the seller must mandatorily honour price and date. This price is called
gold, among several others. buyer and seller to honour the contract it if the buyer decides to opt for it. strike price and the date is called
Since the prices of all such assets keep fluctuating on the expiry date. Since futures are In return for granting the option, expiry date.
constantly, those who trade in these on a large scale leveraged products, it means that the the seller charges a small amount,
A put option, on the other hand,
in the markets can suffer huge losses. To protect trader must pay margin money, which called premium, from the buyer.
gives the trader the choice to sell
themselves from unfavourable price changes and is usually a percentage of the contract
Options are of two types—call and an asset at a specified price and
fluctuations, derivative products are used as hedging value, to the broker. Futures can be
put. date.
instruments to reduce risk. These are also used by traded on the stock exchange and are
speculators who simply want to make money from the transacted in lots.
rise and fall of prices. For instance, a farmer can enter into a
Both futures and options are essentially financial contract with a buyer in November to
contracts between buyers and sellers to trade assets sell 1,000 kg of onions on 30 January
at a pre-decided price on a fixed date, which is called at `50 per kg (prevailing price in
the expiry date. In India, expiry date is usually the last November) if he believes the price is
Thursday of the month. likely to go down in the future. This
means that if the price were to fall
However, both are extremely risky because these are to `40 per kg in December, he would
leveraged products. This means that you can trade very have had to sell it for `40,000, a
large quantities by paying only a small amount upfront, loss of `10,000, but because of this
GETTY IMAGES

called ‘margin’ in futures, and ‘premium’ in options. This contract, he will be now able to sell it
can result in huge losses to buyers and sellers, which is at `50,000, a profit of `10,000.
why it is not advisable for retail investors at all.

The Economic Times Wealth is available at an invitation price of ` 8/issue. To book your copy, contact your newspaper vendor or call 1800 1200 004.
The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of 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
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times 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
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions.

Published for the proprietors, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110 002, Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP. Regd. Office: Dr Dadabhai Naoroji
Road, Mumbai 400 001. Editor: Babar Zaidi (Responsible for selection of news under PRB Act). © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved.RNI No. DELENG/2011/37994. MADE IN NEW DELHI

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWDP47 User: manish.kumar10 Time: 11-29-2024 17:08 Color:

THE ECONOMIC TIMES ARE YOU

INVESTING OR
GAMBLING? P2

www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 14 No. 49 | December 2-8, 2024 | 24 pages | `8

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.
 NG 3.7 PubDate: 02-12-2024 Zone: ETWealth Edition: 1 Page: ETWDPBP User: manish.kumar10 Time: 11-29-2024 16:10 Color:

***This PDF download is allowed by Economic Times only for the personal use of ePaper/ET Prime/TOI+ subscribers.
Sharing PDF on any Social Media or uploading on Websites will violate copyrights and would result in criminal offence and civil penalties.