https://t.

me/njm_magz
THE ECONOMIC TIMES SHOULD YOU BUY
OR HIRE A CAR?
P12

www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | September 23-29, 2019 | 28 pages | `8

rs
pe
pa
_e
m
nj

HOW
e/
.m
//t

LONG IS
s:
tp

LONG TERM?
ht

Equity investments are not short-term

gambits. For equities to be rewarding,
remain invested for at least 7-10 years. P2
 cover story
02 The Economic Times Wealth September 23-29, 2019
ILLUSTRATIONS: ANIRBAN BORA
HOW LONG IS
s:
tp
ht
LONG TERM? Don’t look at equity investments as short-term gambits. For equities to
be rewarding, one needs to remain invested for at least 7-10 years.
By Narendra Nathan
T
he cut in corporate tax rate
triggered the biggest one-day
rise in the Sensex on Friday.
Investors who were thinking of
exiting must now be reviewing
their plans. However, this one-day rally
should not be the reason to stay invested in
equities. It is well known that equities gen-
erate better returns than any other asset
m
nj
e/
.m
//t
class over the long term. The question is,
how long is long-term? For tax purposes,
holding equity and equity funds for a pe-
riod of one year is long-term—too short a
time frame for a volatile asset class. Till a
few years ago, most investors considered
three years as long term and expected
good returns from their equity invest-
ments in that time. However, the recent
correction has torpedoed these dreams.
With SIPs in several large-sized equity
rs
pe
pa
_e
schemes (AUM of more than `1,000 crore)
generating negative returns even after
three years (see table), investors are won-
dering what exactly does long term mean.
Wait and watch
The choppy markets have got investors
concerned, but there is no widespread
panic yet. “Most investors are waiting for
a recovery. With 2-3 year returns turning
negative, a small number of investors are
panicking though,” says Santhosh Joseph,
Founder & Managing Partner, Germinate
Wealth Solutions. The continued faith
of retail investors becomes apparent
when one studies the collection figures of
mutual funds. SIP investments in equity
funds remain strong (see chart). But ex-
perts are worried about the incremental
flow. “Investors are continuing with their
SIPs, but the incremental money is getting
invested somewhere else,” says Gajendra
 cover story
The Economic Times Wealth September 23-29, 2019 03

3-year SIPs in some big equity funds Kothari, MD & CEO, Etica Wealth
Advisors. This means investors
on the risk profile of the investor,
only for 10-year goals. Equity al-

have given low or negative returns are not topping their equity in-
vestments even after significant
location is usually restricted to
50% for goals that fall between 7
price cuts. No one is in a hurry to and 10 years,” says Melvin Joseph,
LARGE-CAP start new SIPs either. While the Founder, Finvin Financial
SCHEME NAME AUM (` CR) 3-YEAR SIP RETURNS (%) possibility of investors stopping Planners. Please note the years
their SIPs altogether if the market mentioned above is the goal pe-
Franklin India Bluechip Fund 6,577 0.16 slides further is high, it would not riod and not actual equity holding
be the right thing to do. “You start- period, which will be slightly less
DSP Top 100 Equity Fund 2,317 2.37 CAT ed an SIP to benefit from volatile because investors should shift
AVG
Aditya Birla SL Frontline Equity Fund 20,094 2.70 RETURN markets. So don’t stop your SIPs from equity to debt as the goal ap-
because the markets are volatile,” proaches.
JM Large Cap Fund 2,482 3.58 4.05% says Suresh Sadagopan, Founder,
Reliance Large Cap Fund 11,819 3.87
Ladder7 Financial Advisories. Consider the present
While a theoretical definition of

rs
MID-CAP Redefining long term long term is fine, investors should
Let us continue with the original also consider the present situa-
Aditya Birla SL Midcap Fund 2,174 -5.57

pe
debate. Since equity is expected tion. In other words, while there
to outperform debt over a 5-year is no fixed definition for long
Sundaram Mid Cap Fund 5,420 -5.16 CAT horizon, increasing the definition term—the time fter which one can
AVG
SBI Magnum Midcap Fund 3,290 -5.16 RETURN of long term to 5 years seems a get guaranteed high returns from

pa
logical move. However, chart top- equities—investors can generate
UTI Mid Cap Fund 3,422 -4.47 -2.27% ping returns on 5-year holdings decent returns if they manage
have been delivered by long dura- their equity portfolio according to
L&T Midcap Fund 4,905 -2.79
tion gilt and debt funds (see chart). market situations. “To make mon-

Aditya Birla SL Small Cap Fund

SMALL-CAP
2,110 -10.72
_e While the 5-year returns of equity
funds is around 8% now, equity
has generated negative returns
for 5-year holding periods several
ey from stock markets, investors
need to do a bit of right timing,”
says Anil Rego, Founder & CEO,
Right Horizons. In other words,
m
DSP Small Cap Fund 4,552 -8.38 CAT times in the past. We selected we need to tweak the long-term
AVG
Franklin India Smaller Cos Fund 6,584 -6.59 RETURN Mastershare for our study as it definition according to market
nj

was the first equity mutual fund situations. For example, we can
Kotak Small Cap Fund 1,144 -3.39 -4.52% in India (see chart). Similarly, in- reduce the long term definition
vesting in SIPs continuously for 5 from 7 to 5 years now because
HDFC Small Cap Fund 8,209 -0.97
e/

years does not guarantee positive the correction phase has already
MULTI-CAP returns. Five-year SIPs in Sensex completed 21 months from the
have also generated negative re- January 2018 peak. This correc-
.m

Franklin India Equity Fund 10,317 -0.01 turns in the past (see chart). tion won’t be apparent if you have
From a pure asset allocation been tracking only benchmark
L&T Equity Fund 2,561 1.04 CAT
perspective, long-term should be indices like Sensex and Nifty. The
AVG
IDFC Multi Cap Fund 5,186 1.04 defined as 7-10 years because that correction at the broader market
//t

RETURN
matches the Indian equity market level has been steep. “Sensex
Reliance Multi Cap Fund 9,403 1.77 3.65% cycle. For example, several stock and Nifty are driven by just 5-10
s:

market peaks—1992, 2000, 2008 stocks. But with 65% of the stocks
Aditya Birla SL Equity Fund 10,653 2.21
and 2018—have happened at these falling by more than 50%, the
ELSS intervals. “I recommend aggres- broader market saw a steep cor-
tp

sive equity allocation, depending rection,” says Rego.

Reliance Tax Saver Fund 9,187 -7.94
-0.95
ht

Sundaram Diversified Equity 2,439 CAT

AVG
HDFC TaxSaver 6,783 -0.42 RETURN

SBI Magnum TaxGain’93 6,683 -0.35 1%

L&T Tax Advantage Fund 3,153 -0.23
Note: Only schemes with `1,000 crore AUM considered. Source: ACE MF. Compiled by ETIG Database. Data as on 16 Sep

SIPs have not stopped but are not rising as before

9,000
Monthly SIP collections (` crore ) 8,231
8,000

7,000

6,000

5,000

4,000 3,497

3,000
Aug 2016 Aug 2017 Aug 2018 Aug 2019
Source: AMFI
 cover story
04 The Economic Times Wealth September 23-29, 2019

On a point to point basis, debt funds have beaten equities over 5-year horizons
Category average returns (CAGR in %) 1-year 3-year 5-year 10-year
20.31
18.85

10.73 10.02 14.37

12.77
8.96 8.96 8.96 8.09 11.43 11.34 11.22
10.18 8.25 10.60 8.01 8.72 7.76
8.31 8.01 8.24 8.21 7.51 7.80 7.81 7.70
6.67 7.24 6.53
6.26 6.33 5.95
4.17 3.73

rs
GILT DEBT EQUITY DEBT EQUITY EQUITY DEBT EQUITY DEBT EQUITY
with 10 year Long Mid-cap Dynamic Large & Small-cap Medium to Multi-cap Floater ELSS

pe
duration duration bond mid-cap long duration
-4.14
-5.30 -5.08
-9.16

pa
Data as on Sep 16 | Sorted on the basis of 5 year returns | Source: Value Research
-12.35

Correction is good
Investors have several positive factors to
look forward to now and a negative return
is one of them. “Markets after a large fall
Holding for 5 years is no guarantee of positive returns
50
UTI Mastershare 5-year rolling returns (% CAGR)
_e 45.83
m
are always better than markets at a peak. 2 Nov 2007
40
When it moves up, you will get higher re-
nj

turns than average,” says Rego. Investors

have always made more money when the 30
market is going through a correction and
5.19 7.87 0.04
e/

the historical returns are very low or nega- 7.31

23 Apr 2003 3 Sep 2009 19 Nov 2012
tive (see chart). Most investors, however, 20
wait for high returns before investing, thus
.m

ending up investing at a peak.

10 -2.49
Fundamentals will improve -8.41
Bear markets usually coincide with other 21 Sep 2001
//t

0
bad news. However, long-term investors
have to consider all corrections, triggered
s:

by bad news, as investment opportunities.

-10
“Good news and good prices don’t come
together. But investors want both and that
tp

is the problem,” says Kothari. The biggest -20

concern right now is the economic slow- 18 Sep 1999 17 Sep 2005 17 Sep 2012 17 Sep 2019
down. The GDP growth rate for the April-
ht

Data as on 17 Sep | Source: Value Research

June quarter is down to 5%.
The government’s efforts to revive prob-
lem sectors like auto, real estate, NBFC, etc
should arrest the slide. “Though we can’t Even 5-year SIPs can result in losses or low returns
predict the exact bottom, we are close to it. 60
The government usually comes at the end Sensex 5-year SIP returns (% IRR)
and therefore, we can reasonably assume
that the economic pickup is not far away,” 50
says Rego. The good monsoon this year will 48.06
be another positive for the economy and Oct 2007
40
the rural consumption in coming quarters
will not be as bad as being made out to be. 3.85
Corporate profitability will also increase Feb 2016
30
in coming years due to the ongoing consoli-
dation triggered by the slowdown. “With
7.71 -1.75 0.56
Apr 2003 Feb 2009 Dec 2011
consolidation happening, there are few 20 12.28
players left in most sectors and such com- 7.19
panies should do well when the economic
rebound happens,” says Sankaran Naren,
10 -11.22
Sep 2001
ED &CIO, ICICI Prudential AMC.
The reduction in corporate tax will 0
also help India Inc. “We estimate an
overall 5-10% increase in fair value of
companies due to this measure,” says G. -10
Pradeepkumar, CEO, Union AMC.
However, the Indian equity markets also
-20
have to worry about the recent attacks on
Saudi oil facilities and the resultant jump Sep 1999 Sep 2005 Sep 2012 Sep 2019
 cover story
The Economic Times Wealth September 23-29, 2019 05

28% Future SIP returns are good Fix behavioural issues

when past returns are bad INDIANS ARE experts in getting bargain deals
and we try to buy everything at a lower price.
Historical vs Future Returns However, that does not hold true when it comes
to investment products. Investors tend to buy at
peaks and exit at the bottom because they get
Future returns
carried away by fear and greed. Excessive focus
on historical returns and the tendency to chase it
12% 11%
is the first reason. “Most investors keep chasing
historical returns, because we have a tendency
to go with recent experience,” says Gajendra
9% Kothari, MD & CEO, Etica Wealth Advisors. A
case in point are those who avoided debt and

rs
gold like the plague two years ago but are
chasing them now. “People should chase their
financial goals and not absolute returns,” says

pe
Suresh Sadagopan, Founder, Ladder7 Financial
Advisories. The overall change happening
in society is the next reason. “Just like we
do everything in an instant now, we expect

pa
Historical investment returns also to come in a short time,”
says Santhosh Joseph, Founder & Managing
< 0% 0 to 10% 10 to 20% >20% Partner, Germinate Wealth Solutions.

Calculation based on 5-year SIPs in Sensex

_e
m
Each asset class moves differently
nj

A well diversified portfolio protects the downside

ASSET CLASS RETURNS (%)

e/

EQUITY MULTI
YEAR GILT FUNDS GOLD ETFS LIQUID FUNDS
CAP FUNDS
.m

2008 -53.23 23.02 25.59 9.07

2009 84.94 -7.06 22.42 5.38
//t

2010 21.02 4.78 21.68 5.45 ried away by returns from gold and debt. changed in 2009 and equity gained 85% and
However, chasing historical returns is a debt lost 7%. Sell the asset class that has
-23.92 6.45 30.76 7.37
s:

2011 bad idea for any asset class. The rise in long generated very high returns and shift to
duration debt funds is because of falling one that has underperformed.
2012 34.14 10.94 10.93 9.60 yield. Since the chance of a big fall in yield The benefit of such a strategy is that it
tp

from current levels is remote, 20% returns will help you control greed and fear. “Since
2013 5.72 3.36 -14.11 9.21 from debt are unlikely in future. these shifts are tax incidents, rebalancing
should be done only at decent intervals
ht

2014 52.02
2015 2.03
2016 3.76
2017 36.74
2018 -6.58
2019 -1.67
2019 value is y-t-d (absolute and not annualised) |
calculating category average return | Source: ACE MF; Compiled by ETIG Database
in global crude oil prices (see page 8).
Valuations getting reasonable
The fall in valuation is another reason
why experts believe that it is a good time
to enter the market. You need to consider
stocks from the broader market and not
just a handful of stocks that are quoting at
obscene valuations. “Barring a few stocks,
the broader market is valued reasonably
now and investors could make reasonable
returns if they buy now and hold patiently
for 5 plus years,” says Naren.
While the benchmark indices are being
propped up by 5-10 stocks, the broader mar-
16.97 0.83 9.04 Time it automatically
While timing based on fundamentals and
6.17 -8.02 8.26
market sentiments are the way to go, it may
15.50 10.54 7.48 not be possible for most investors to do so.
This is because investors, who eagerly wait
2.58 2.90 6.53 for corrections, usually don’t invest when
the correction actually happens. They tend
6.73 6.65 6.82 to panic when the noise turns negative
during bear markets. Rule-based dynamic
9.00 22.31 4.82 asset allocation funds work best for them.
“Dynamic asset allocation funds will be
Note: Only MFs that completed 12 years considered for
useful for investors who are not so famil-
iar. The valuation based shifting between
ket correction is still continuing, bringing equity and debt is automatic,” says Rego.
their valuation below the large-cap peers. Having a pre-determined asset alloca-
“We shifted from mid-caps to large-caps in tion ratio and rebalancing it at regular
2018 and are slowly moving back to mid and intervals is the next option. Asset classes
small-caps now,” says Rego. don’t move together and the loss in one
Investors could wonder why the defini- category will be balanced out by another
tion of long-term is being kept at 5 and not category. Long duration gilt and debt funds
3 years when factors are becoming favour- have generated annual returns of 18.85%
able. “The cut and the recovery were sharp and 20.31% during the past one year (see
in 2009, but fall is slow this time and recov- chart). Similarly, gold has generated an
ery is also taking time,” says Kothari. absolute return of 22.31% on year to date
(see table). This kind of differential per-
Don’t overestimate debt, gold formances took place several times in the
Just as people got carried away by equity past. For instance, equities lost 53% in
returns in 2017, they are now getting car- 2008, while debt gained by 23%. The scale
like annually or during life events like job
change, addition of a new member in the
family, etc,” says Amol Joshi, Founder,
PlanRupee Investment Services. Another
way is to fix bands and rebalance it when it
crosses the bands. For instance, if equity
allocation is fixed at 50%, rebalance it only
when it crosses 60% or 40%.
Book regular profits
Finally, long-term investing doesn’t mean
that you can leave your portfolio un-
touched for decades. In addition to regular
reviews and rebalancing as part of asset al-
location mentioned above, equity investors
also have to do tax-based churning now.
Since the long-term capital gain is tax-free
only up to `1 lakh per annum, investors
need to keep booking that regularly. To
make sure your asset allocation doesn’t
change, shift from one equity or balanced
fund to another equally good equity or bal-
anced fund. This way you can keep booking
profit and maintain the desired allocation.
Please send your feedback to
etwealth@timesgroup.com
 guest column
06 The Economic Times Wealth September 23-29, 2019

Why you shouldn’t try to

second-guess big events
Did the FM catch you out of the equity markets last week? It’s your fault if she
did. Stop trying to figure what will happen next, says Dhirendra Kumar.

T
he ferocity with which the stock

rs
markets have risen in response
to the corporate tax cuts is un-
DHIRENDR A KUMAR

pe
CEO, VALUE RESE ARCH precedented. Whether these tax
cuts have the desired impact on
the economy remains to be seen, but those
money investors who had given up on the markets

pa
mysteries and moved out have surely been caught out
badly. This shows that equity sentiment
can turn very sharply, rapidly and trying
to keep up with it is a fool’s errand. There

It isn’t all that

were lots of investors who had decided to
‘sit out’ the stagnant phase of the markets
and decided to invest when the direction
of equity prices changed. Well, on Friday
_e
m
difficult to
morning they got perhaps two minutes’
identify a good warning—not enough to terminate their
stock or fund, but
nj

sitting out in the way they had hoped to.

predicting general Investing well and getting good returns
ups and downs is requires a combination of skills of differ-
e/

complicated. In ent kinds. Broadly, these can be broken

fact, it is arguable up into figuring out which stocks or funds
will do well on the one hand and figuring
.m

that general ups

and downs are not
predictable with
any degree of useful
out broader, market-wide or economy-wide
trends on the other. After years of observ-
ing the markets and investors, I have
formed a firm belief that while the former
//t

certainty. is well within the capability of many inves-

tors—both amateur and professional—the
s:

latter is practically impossible to do on a

sustained basis. The current episode that
commenced with Nirmala Sitharaman’s
tp

blockbuster may look like an exception, but

it’s actually not.
ht

Stay invested and keep

investing. Choose good
funds, good companies and
keep investing to get in at a
GETTYIMAGES

good average price.

What makes this important is that inves-
tors who do the first part right often lose
money and give up gains by trying to do the
second part. In theory, this boils down to
choosing the right funds and then trying to
redeem when you think the broad market is
going to go down. On the way up, this means
sitting with cash, waiting to invest till the
last moment before the markets start rising.
In practice, for most investors who try and
do this, it means selling their funds after
the markets have crashed and buying them
back after they’ve shot up. The period start-
ing last Friday’s press conference may have
seen a particularly severe version of this cy-
cle but actually this is a fairly routine event.
Interestingly, this is not limited to indi-
vidual investors. Professional investment
managers too make such mistakes regular-
ly. The reason is simple, yet hard to accept. It
isn’t all that difficult to identify a good stock
or fund, but predicting general ups and
downs is complicated. In fact, it is arguable
that general ups and downs are not predict-
able with any degree of useful certainty.
More importantly, I’ve observed that there’s
no commonality between stock or fund-
picking skills and the skill of being able
to figure out broad movements. Someone
could be a great investment analyst but that
doesn’t say anything about his or her ability
to pick out broader trends.
What this means is that as an investor,
one should accept that it’s best to stay invest-
ed and keep investing at all times. Choose
good funds, choose good companies and
keep investing to get in at a good average
price. Improving one’s returns by timing
the broad markets is an illusion and there is
no point in trying to chase it.
Not just that, it’s now doubly difficult
because of this government. The Narendra
Modi government seems like a special case
here because of its propensity of taking bold
actions and its ability to keep things secret
till a time of its own choosing. All kinds of
people, in our country as well as in neigh-
bouring ones, are finding this out the hard
way. So don’t make investments more com-
plicated by trying to second-guess what this
government will do. Stick to the knitting,
everything else will work out.
Please send your feedback to
etwealth@timesgroup.com

Are debt funds
playing their
cards right?
Existing investors have taken a hit
with debt funds failing to protect
their interests after credit events.
by Sanket Dhanorkar
A
year since the IL&FS blowout,
multiple defaults and credit rat-
ing downgrades have wiped out
a chunk of returns of multiple
debt funds. Some of these funds
have started getting back their dues, result-
ing in recovery of net asset value (NAV).
But the response of the fund houses to these
episodes has been varied. Have debt funds
played their cards right? Or have they been
toying with the interest of investors?
Two prominent credit episodes were the
defaults by DHFL and Essel (Zee) Group. In
both cases, affected debt funds took differ-
ent paths to cope. The mid-April default in
Essel left fixed maturity plans (FMP) from
Kotak and HDFC Mutual Funds exposed.
tp
Kotak gave back unit holders partial mon-
ey on maturity of these schemes, with the
promise of repaying the remaining amount
ht
upon recovery of dues from Essel group.
HDFC MF gave unit holders the option to
roll over or extend the maturity by another
year or redeem partially upon maturity.
It later turned out that the funds had
entered into a standstill agreement with
Essel, where they agreed not to sell the
pledged shares and give promoters time till
September to clear dues. HDFC MF even-
tually decided to buy the stressed bonds
Some debt funds continue to feel the pinch
Exposure to defaulting and downgraded companies have affected returns.
BOI AXA Tata PGIM PGIM Ultra BOI AXA
Credit Corporate Short Term Short Short Term
Risk Bond Maturity Term Income
-13.61
-20.28
-33.42
-39.69
-47.06
due to mature before September and pay
off its FMP investors, instead of waiting
m
to recover dues. For bonds maturing after
September, the fund house will wait it out.
nj
After DHFL defaulted on interest pay-
ments in June, fund houses marked down
the value of the bad assets, as per law. This
e/
affected existing investors in exposed
schemes. But it also opened doors for bar-
gain hunters waiting to take advantage of
.m
the lower NAVs. Fresh investors got the
opportunity to take part in any subsequent
recovery in NAV, diluting the benefit for
existing investors. “Some fund houses put
//t
existing investors’ assets at risk of dilu-
tion, and inadvertently encouraged short-
s:
termism,” says Vidya Bala, Co-founder,
Redwood Research.
To prevent any dilution, some fund hous-
es restricted fresh inflows into schemes
holding troubled assets. Others imposed
high exit loads on incoming investors, to
deter speculation. However, these meas-
ures couldn’t prevent value erosion for
existing investors. Feroze Azeez, Deputy
CEO, Anand Rathi Wealth Management,
says, “Investors who stayed back got short-
changed. As the good quality assets got sold
off, the portfolio was left saddled with more
bad assets as a proportion of the scheme’s
corpus.” In many debt funds, the rotten
apples took up more than 25-30% of the
Motilal Sundaram Edelweeiss Invesco
Oswal Ultra Short Term Corporate India Credit
Short Term Credit Risk Bond Risk
-6.16 -5.51 -5.36 -3.95 -3.52
1-year return (%)
Source: Value Research
The Economic Times Wealth September 23-29, 2019
rs
pe
GETTY IMAGES
pa
_e
basket. Clearly, there were holes in the ap-
proaches taken by fund houses.
The wide divergence in the actions of
debt funds has been jarring. “There has
been no structure to the actions, leaving
investors confused,” says Bala. Even the
extent of mark-downs in case of the same
borrower has varied. Says Azeez, “Funds
have not been on the same page in dealing
with the issue. Lack of unanimity in deci-
sion left investors with little clarity.”
Ignoring the trump card
Amidst all this, the new side-pocketing pro-
vision—designed to protect existing inves-
tors—has largely been ignored. Barring a
few, none of the fund houses activated this
mechanism. It involves splitting the debt
fund into two— a new fund containing the
rotten eggs and the existing fund compris-
ing the cleaner portfolio. Since this cleaner
fund is not plagued by the troubled asset, it
is protected from large-scale redemptions.
Investors who hold on to units of the origi-
nal scheme do not have to worry about their
quality, liquid assets being sold off or NAV
declining further. Those who redeem can
be assured of realising fair value for the
cleaner fund. In the event of any recovery
in the side-pocket, investors can later sell
their allotted units at fair value. This ben-
efit is only available for investors who held
Few funds have started recovering dues
After a period of uncertainty, debt funds have recouped some of the dues.
UTI
Credit AMOUNT
Risk RECOVERED
AMC ISSUER (` CR)
ABSL Life MF Essel 760
ICICI Pru MF Essel 435
HDFC MF Essel 580
Kotak MF Essel 599
DSP MF DHFL 150
mutual fund
07
units at the time of the write-off. It ensures
investors who come in later do not get an
unfair advantage from the recovery.
Only Tata MF created segregated port-
folios in its DHFL-exposed schemes. After
the default by Altico Capital, exposed
schemes of UTI and Reliance MF activated
the side-pocketing provision. But not many
fund houses are keen to invoke this provi-
sion. Experts say this is due to prickly
conditions imposed by the regulator. One
requires the fund house to provide a 30-day
exit window for existing investors, given
that segregation in portfolio is deemed as
a change in fundamental attributes of the
scheme. Fund companies fear mass flight
of assets when market sentiments are al-
ready weak. Another provision requires
performance incentives of associated fund
managers to be curtailed. This has put off
fund houses from opting for side-pocketing.
Light at the end of the tunnel
After a period of uncertainty, debt funds
that witnessed rating downgrades or
defaults in their holdings are seeing dues
being paid back gradually. Essel Group has
partially paid debt funds. Aditya Birla Sun
Life MF, HDFC MF, ICICI Prudential MF
and Kotak MF have received 45-60% of the
total dues. DSP Mutual Fund got back its
dues of `150 crore from DHFL, resulting in
a “complete recovery” for commercial pa-
pers held in various schemes. These funds
had earlier marked down the value of these
securities, resulting in a drop in NAV. With
dues recovered, NAVs are also inching up.
Fund houses have been caught on the
wrong foot too often. High dependence on
external credit ratings and lack of in-house
research have left debt funds scrambling.
Having burnt their fingers, fund houses
are becoming more conscious of risks. “It
has been a learning experience for fund
managers,” points out Bala. “Many fund
houses are now introducing internal alert
mechanisms for credit deterioration, en-
suring better portfolio liquidity and shun-
ning concentrated exposure.” More credit
events cannot be ruled out in future. How
debt funds respond to them will show how
much the funds have really learnt from
this experience. Fund houses are now con-
sidering giving Essel more time to repay
remaining dues, despite the regulator’s
objections to such standstill pacts.
Please send your feedback to
etwealth@timesgroup.com
TOTAL
AMOUNT
DUE (` CR) % RECOVERED
1,700 45%
725 60%
1,200 48%
1,152 52%
150 100%
 commodities
08 The Economic Times Wealth September 23-29, 2019

Brace for
fallout of the
Saudi strikes

rs
India imports more than 80% of its oil
oil.

pe
The tension in the Middle East will push
up the country’s oil bill.

pa
_e
IMAGES: GETTYIMAGES

m
nj
e/

by Sanket Dhanorkar Prices to soar US strategic oil reserves and other OPEC ally US and Iran, which is blamed for the
.m

Global crude oil prices had been benign for (Organisation of Petroleum Exporting attack. If this pans out, oil supplies will take

A
major drone attack on two Saudi
Arabian oil facilities last week
spooked markets across the
the past few weeks, weighed down by sur- Countries) economies stepping in to raise a hit. “Any further escalation in geopoliti-
plus inventory in the face of weak demand. production would alleviate the supply con- cal tensions may add to global oil supply
But the production halt in one of the world’s ditions to some extent. woes given the lack of buffer in Saudi’s
//t

globe. The attack set off huge major oil producing nations is likely to send Even if supplies resume partially, the significant spare production capacity,”
fires that disrupted over half crude prices soaring in the near term. The threat of further attacks will keep oil prices say analysts Tarun Lakhotia and Hemang
s:

of the kingdom’s oil supply. It became the attacks have impacted around 5.7 million artificially higher going ahead. “The con- Khanna of Kotak Securities. “With the
single biggest oil supply disruption in his- barrels per day of crude production—trans- cern that important Saudi oil facilities are US accusing the Iranian government of
tory, topping the production hit caused by lating into a significant 6% hit on global oil now vulnerable to attacks would increase orchestrating the attack and Iran in turn
tp

the Iranian Revolution in 1979 and Iraq’s supplies. The country’s surplus capacity of the geopolitical risk premium on oil pric- threatening war, further destabilising
invasion of Kuwait in 1990. With oil supplies around 2 million bpd has also been affected es,” argues Sabri Hazarika, research ana- the region at large and impacting future
taking a hit and tensions escalating in the significantly. It will take a few weeks to lyst at Emkay Global Financial Services. supplies, oil prices are expected to remain
ht

region, repercussions are going to be felt in get the facilities operational and restore The unprecedented attack also raises the firm,” says Pritam Kumar Patnaik, Head,
India too. production. It is hoped that activation of spectre of a full-blown war between Saudi Commodities, Reliance Commodities.

Attacks on the Saudi oil facilities have topped the biggest oil disruptions in history
The production halt in one of the world’s major oil producing nations is likely to send crude prices soaring in the near term.
EVENT AND YEAR

SAUDI DRONE IRANIAN

STRIKE REVOLUTION
ARAB-ISRAELI IRAQ
2019 1978-79 WAR OIL INVASION IRAN-IRAQ
EMBARGO OF KUWAIT WAR
1973-74 1990-91 1980-81 VENEZUELAN
WAR IN IRAQI OIL
STRIKE EXPORT SUEZ
IRAQ
SUPSPENSION CRISIS
2002-03
2003
2001 1956-57

5.7 5.6 4.3 4.3 4.1 2.6 2.3 2.1 2

GROSS PEAK SUPPLY LOSS (MILLION BARRELS PER DAY)
Source: Bloomberg
 commodities
The Economic Times Wealth September 23-29, 2019 09

High crude prices will push up oil bill... crude oil to India.
The immediate impact of the Saudi
Threat of further attacks will keep oil prices artificially higher going ahead. attack would be downward pressure on
100 Indian equities. Historically, crude oil
prices have had a negative correlation with
61.17
69.14 domestic equities. Investor sentiment is
80
already fragile over the crippling slowdown
in the economy. A spurt in oil imports will
60 create fiscal imbalances and weigh heavily
on the local currency. Increased risk aver-
40 sion and weaker rupee will make foreign
portfolio investors wary, keeping flows
into domestic equities muted in the near
20
term. The extent of impact will depend on
how long oil prices remain elevated. HDFC
0 Brent crude ($ per barrel) Securities in a note points out that it should
spillover effect of rising oil price on the ru-
pee may also push local gold prices further
north. Gold prices have been on the uptick
for a while now, as tensions over the US-
China trade war, spread of negative bond
yields and slowing growth have turned
investors risk averse.
Debt
The likely spike in oil prices has nega-
tive implications for the bond markets as
well. Bond markets have been buoyant
in anticipation of RBI cutting rates in the
near future on the back of benign inflation
and slowing growth. However, rising oil
prices are likely to upset the fiscal math

rs
17 Jun 2019 17 Sep 2019 not be taken as a trend that will persist over and possibly create inflationary pressures
several months. “Further action on crude in the economy. This may prevent the RBI

pe
prices will be a function of how quickly the
... and uncertainty will be good for gold... full capacity is restored and how coordi-
Escalation in tension in the Middle East will keep demand for gold high. nated the global effort is to release strategic
reserves,” the note says.
from cutting rates immediately or to the
extent anticipated, which will affect bond
prices and keep yields elevated. “While a
rate cut was widely expected by the RBI at

pa
41000 Spot gold price (` per 10 gram)
38,400 The spike in crude oil prices, even if tem- their next meeting in early October, crude
porary, will be negative for downstream oil now throws a bit of a monkey wrench into
39000 marketing companies (OMC) like HPCL, that calculus,” says Sunil Sharma, Chief
BPCL and IOC. “We do not rule out a possi- Investment Officer, Sanctum Wealth
37000

35000 33,450
_e
bility of moderation in marketing margins
on auto fuels—a $10/bbl rise in global crude
and product prices may require OMCs to
increase retail price of diesel and gasoline
Management. The yield on 10-year govern-
ment bond inched up to 6.75% initially and
is now hovering around 6.7%. With rise in
bond yields, experts caution against bet-
m
by `5-6 per litre in the following fortnight,” ting heavily on longer duration strategy.
33000 say Kotak Securities analysts. Sharma indicates that a diversified portfo-
nj

Automobile manufacturers, reeling lio of highest quality AAA rated, corporate

under severe volume decline, may face bonds, banking and PSU bond funds, low to
31000
further squeeze as higher fuel prices push moderate duration remains his preferred
17 Jun 2019 16 Sep 2019
e/

up car ownership costs. The impact may positioning.

also be felt by companies using crude oil
...but rising inflation will hit bond prices as raw material. Airlines may face higher
.m

air turbine fuel price while paint and bat- Please send your feedback to
RBI may not cut rates immediately, leading to yields remaining elevated. tery makers may see input costs rise. On etwealth@timesgroup.com
10 the other hand, higher crude prices may be
6.93 positive for upstream PSUs such as ONGC,
//t

6.72
8 Oil India and GAIL. These will see higher
realisations on every litre of crude oil they
s:

produce. Every $1 increase in Brent crude

6
price results in up to 3% increase in earn-
ings for these firms.
tp

4
Gold
2 The attack on Saudi oil assets is likely to
ht

spur a shift to safe haven assets as risk

0 10-year bond yield (%)
17 Jun 2019 Data compiled by ETIG database
Equities
The disruption in oil supply and uptick in
oil prices have immediate ramifications
for India. Considering India imports more
than 80% of its oil requirements, any rise
in price will hurt our finances. India is
already trying to replace the loss of sup-
16 Sep 2019
ply from Iran, owing to US sanctions.
According to a report by CARE Ratings,
this has led to a decline in crude processing
by domestic refiners by 2.3% and increase
in import of petrol and diesel by 298% and
363.5% respectively. After Iraq, Saudi
Arabia is the second largest supplier of
appetite wanes. Any escalation in tension
in the Middle East will keep the yellow
metal in high demand. Chirag Mehta,
Fund Manager – Alternative Investments,
Quantum Mutual Fund, says, “Any flare-
up in geopolitical tensions is likely to keep
gold price buoyant as investors tend to shun
risky assets.” In the immediate aftermath
of the event, international gold price surged
above $1,500/oz. Domestic price of gold is
hovering around `38,000 per 10 gram. Any
 stocks
10 The Economic Times Wealth September 23-29, 2019
These capital goods stocks
could create wealth
Some bluechip stocks from the capital goods sector are
available at attractive valuations. Find out why their
long-term business prospects are looking good.
by Sameer Bhardwaj
T
he capital goods sector has
underperformed during
the past few years, which is
evident from the difference
in the returns of the BSE
//t
Capital Goods index and the Sensex.
The BSE Capital Goods has underper-
s:
formed the Sensex by 2.9% in the past
one year, by 12.4% in past three years
and by 20.5% in past five years.
tp
The reasons for this underper-
GETTYIMAGES
formance include lack of demand for
the large scale equipment, increase
ht
in stalled or abandoned projects that
were in implementation, very few new
projects, and weak capex cycle of both
government and the private sector. In
addition, weak consumption activity
in the economy and liquidity pressures
have also negatively affected the pros-
pects of the sector.
The capital goods sector play a signifi-
cant role in employment generation and
economic growth. Due to the reluctance
of the private sector, government capex
is necessary to kickstart the investment
activity. Such government expenditure
fell 28% in the first quarter of 2019-20.
However, recent data on the government
capex has ignited hope for the revival of
the capital goods sector.
According to a report by SBI Cap
Securities, the capital expenditure
of the government has significantly
picked up in the month of July 2019 and
stood at approximately `45,000 crore.
This translates into a year-on-year
growth rate of 83%, bolstered mainly
by a pickup in road and defence sectors.
The report also highlights the strong
order books of some players which will
rs
pe
pa
_e
m
nj
e/
cushion them from a decline in earnings
in the near term. The management guid-
ance for some of these players expects 10-
.m
15% order inflow growth in 2019-20.
Another report by Elara Capital has
expressed confidence in the electrical
equipment (EEI) sub-segment of the
capital goods sector. The volumes of the
segment are growing in double digits for
the past two years and the ongoing elec-
trification programme and T&D capex
(Central & State) along with growth in
infrastructure and metros will continue
to fuel growth for the EEI. On the other
hand, a report by ICICI Direct expects
that there will be a pick-up in order in-
flows in the capital goods sector from the
third quarter onwards. Increased order
inflows will be due to the expected strong- KEC INTERNATIONAL POTENTIAL
er tendering pipeline across infrastruc-
ture, T&D and power segments. Also, the UPSIDE
10-year Current 1-yr target
revenue and profitability growth of the
established players are expected to re-
Current PE
11.4
average PE
23.8
price (`)
250
price (`)
354
41.8%
main steady for 2019-20 due to the strong
present order backlog.
AN INFRASTRUCTURE EPC player ANALYSTS’ RECOMMENDATIONS
Even after the recent bounceback, with a presence across the power
some capital good players are available at transmission and distribution, BUY 27 HOLD 2 SELL 1
compelling valuations in terms of their railways, smart infrastructure,
PE multiples. We have selected seven cables and solar segments. Its
companies whose PE multiples, based on strong diversified order book across
KEC INTERNATIONAL BSE CAPITAL GOODS
their future 12-month blended forward segments and geographies, steady
earnings, are at a reasonable discount operating performance, better BSE SENSEX
relative to their past five-year and 10-year execution capacity and growth 97
historical averages. These seven com- recovery in T&D segment are 100
panies reported an year-on-year growth key growth catalysts. Moreover, 18 Sept 2018
of 11% in aggregate consolidated sales orders from the railways for track
and 25% growth in operating profits in laying, signalling, OHE and station
the June 2019 quarter. Comparatively, building are likely to see traction
the BSE Capital Goods index aggregate in 2019-20. Also, the government’s
sales and operating profit grew at -1.7% long term capex targets will help the 92
and -9.3% respectively during the same company to improve its sales and
margins going forward. 82
period. Let us look at the inancial of these
seven companies in detail: 17 Sept 2019 
 stocks
The Economic Times Wealth September 23-29, 2019 11

LARSEN & TOUBRO FINOLEX CABLES POTENTIAL

BHARAT ELECTRONICS
UPSIDE
10-year Current 10-year Current 1-yr target 10-year
Current PE
average PE POTENTIAL
UPSIDE
PE
12.2
average PE
17.7
price (`)
368
price (`)
488
32.5% Current PE
average PE
POTENTIAL
UPSIDE
17.5 28.3

26.4% ANALYSTS’ FINOLEX CABLES BSE CAPITAL GOODS

15.5

Current
19.8

1-yr target
16.6%
Current 1-yr target RECOMMENDATIONS 97
100 BSE SENSEX price (`) price (`)
price (`) price (`) 18 Sept 2018
BUY 8 HOLD 2 108 126
1,314 1,661

ANALYSTS’ RECOMMENDATIONS
ANALYSTS’ RECOMMENDATIONS 92
BUY 35 HOLD 2 SELL 2 BUY 22 HOLD 1 SELL 2
SELL 0
67

rs
17 Sept 2019 
A MANUFACTURER OF electrical and telecommunication cables, BHARAT ELECTRONICS BSE CAPITAL GOODS
LARSEN & TOUBRO BSE CAPITAL GOODS lighting products, electrical accessories, switchgear, fans and water
BSE SENSEX

pe
BSE SENSEX heaters, Finolex Cables is in a sweet spot. A report by Firstcall 124
Research says its electrical cables segment is likely to get a boost
from the government’s rural and infrastructure push. On the other 100
97 18 Sept 2018
100 hand, government’s focus on Digital India and its ambitious Bharat

pa
18 Sept 2018 Net initiative will improve the prospects of the communication
cables segment. 97

98 KEI INDUSTRIES
Current 10-year Current
_e
1-yr target
POTENTIAL
UPSIDE
92

18.2%
m
92 PE average PE price (`) price (`)
17 Sept 2019 
17 Sept 2019  15.8 43.3 467 552
A NAVRATNA PSU, it is engaged in the design,
nj

A CONGLOMERATE WITH a presence in over ANALYSTS’ KEI INDUSTRIES BSE CAPITAL GOODS manufacture and supply of electronics products
RECOMMENDATIONS & systems for the defense requirements.
30 countries, it addresses critical needs BSE SENSEX 119
of key sectors, including infrastructure, Operational excellence, superior R&D, improved
e/

construction, defence, hydrocarbons, heavy BUY 12 HOLD 0 100 order execution, higher cash flows, and better
18 Sept 2018
engineering, power and shipbuilding among 97 working capital management are the key
others. JP Morgan is bullish on the stock due positives for the company. In addition, the focus
.m

to the company’s strong earnings growth on technological innovation which involves

track record, efficient and profitable execution 92 upgradation of machinery and infrastructure
SELL 1 provides the much needed competitive
capabilities, improvement in working capital
management and RoE enhancement. The advantage. It reported good numbers in the June
//t

17 Sept 2019  2019 quarter, with 16.9% year-on-year growth in

research house feels that guidance for 2019-20
appears achievable in terms of revenue growth A WIRES AND cables manufacturer, Kei Industries offers a wide operating profit and 13.9% growth in net profit.
Analysts say the company will be the main
s:

and EBITDA margins. The profitability is likely
to improve due to the sale proceeds from real
estate monetisation (e.g. Hyderabad metro real
tp
range of cabling solutions. AnandRathi is bullish on the company
due to its leading position in institutional cables, strong earnings beneficiary of the government’s reforms in the
growth and improved balance sheet. Strong order book of Rs 4,530 defence sector and its healthy order book provide
strong revenue visibility going forward.

estate). Even in a tough macro environment, crore offers robust revenue assurance in 2019-20. The brokerage
L&T has won a larger share in the limited big house expects that the cables segment mix of EHV cables, retail and
order opportunities. Sebi’s nod to the share exports will aid margin expansion in the future and its ability to Current PE is based on future 12-month blended forward earnings.
ht

Stock prices as on 17 September 2019.

buyback proposal could be a near term catalyst. generate free cash flows will help in the stock’s re-rating.
Source: ACE Equity & Bloomberg.

BEML POTENTIAL
KALPATARU POWER TRANSMISSION POTENTIAL
UPSIDE UPSIDE
10-year Current 1-yr target 10-year Current 1-yr target
Current PE

22.7
average PE
54.5
price (`)
814
price (`)
1,107
35.9%
Current PE

13.6
average PE
29.2
price (`)
453
price (`)
548
21.1%
THIS MINIRATNA CATEGORY-1 PSU has ANALYSTS’ RECOMMENDATIONS A DIVERSIFIED CONGLOMERATE, ANALYSTS’ RECOMMENDATIONS
three major business verticals: mining & Kalpataru is engaged in the
BUY 4 HOLD 0 SELL 0 BUY 17 HOLD 1 SELL 1
construction, defence and rail and metro. global power transmission and
According to a report by Antique Stock infrastructure EPC space. ICICI
Broking, the metro rail projects will con- Direct believes that the strong order
tinue to provide large scale opportunities BEML BSE CAPITAL GOODS BSE SENSEX book with good traction in non- KALPATARU POWER TRANSMISSION
to the company as both the Centre and T&D business (railways, pipeline),
BSE CAPITAL GOODS BSE SENSEX
the states have stepped up their efforts improved subsidiary performance 139
towards increasing the metro network 100 and operating leverage gains
18 Sept 2018 106
not just in big cities but also in tier II and are likely to support consistent 100
tier III cities. In addition, BEML’s mining growth. Moreover, diversification 18 Sept 2018
and construction business is expected to in international T&D markets
remain steady given robust Coal India would provide good opportunities. 97
capex outlook for 2019-20. The company The returns ratios are expected to
expects to drive margin expansion 92 improve because of the company’s
through operating leverage, cost cutting strategy to monetise non-core
97 92
measures and other operational excel- assets and sales proceeds from the
lence initiatives. 17 Sept 2019  transmission assets. 17 Sept 2019 
 learn & keep
12 The Economic Times Wealth September 23-29, 2019

Should you buy or hire a car?

In the light of the debate over millennials' penchant for hiring cabs rather than buying their own
cars, Riju Mehta does a cost comparison for both options to help you make a clear choice.
Let us compare the total cost of owning a Maruti Suzuki Dzire and hiring Uber cabs, in Delhi, over a period of
three years. We have only considered office trips and excluded other personal trips, including holidays.

COST OF OWNING A CAR COST OF HIRING A CAR

ASSUMPTIONS
Price of Maruti Daily total distance covered: 40 km
Suzuki Dzire Total running cost Daily trips: 2
(3 years) Time taken in each trip: 50 minutes
`5.82 lakh Monthly distance covered: Tolls, tax and surge pricing included.
(Ex-showroom, Delhi)
1,000 km Number of days the car is used in a month: 25 days
Petrol cost: `72.7/lt Cost of petrol in Delhi on 19 September (actual): `72.7/litre
Loan cost Mileage: 22 km/lt
Interest rate: 9.5% Monthly running cost:
Loan term: 3 years `3,304 Uber Go
Down Loan Total running cost:
payment interest Uber fare is the sum of base fare and charges for time and
`1.18 lakh
`58,200 `75,495 distance covered during each trip
Cost of ownership
Total insurance in 3 years Base fare Per minute Per km
cost (3 years) `52.5 `1.05 `7.8
ht
tp
`9.8 lakh
`60,000 Without surge pricing (with toll, etc) TOTAL COST FOR 3
YEARS
Total cost of
s:
`105 + `105 + `315 + `50
Registration/taxes owning in 3 years `5.1 lakh
(with chauffeur) Base fare Time Distance Toll
(3 years) (For two (For two (For 20 km (Can vary
//t
trips in a trips of 50 one way, or and in-
day) minutes 40 km in a clude tax,
`72,000
.m
`15.2 lakh each) day) surcharge)
(@`15,000 per month)

Total servicing & Cost per day

e/
Resale value after
maintenance cost 3 years
(3 years)
`575
nj
`3.7 lakh
m TOTAL COST FOR 3
`30,000 With surge pricing (including toll, etc) YEARS
Net cost
_e
Parking cost & 575 X 1.5 `7.7 lakh
miscellaneous `6.1 lakh
charges (3 years) Cost per day x multiplier (which can vary)
pa
`50,000 `11.5 lakh Cost per day
(with chauffeur)
pe
rs `862

HIRING IS BETTER WITHOUT SURGE PRICING

Without surge and ` 1 lakh Without surge and `6.3 lakh With surge, ` 1.5 lakh With surge, ` 3.7 lakh
without chauffeur with chauffeur without chauffeur with chauffeur
in 3 years, if you in 3 years, if you in 3 years, if you in 3 years, if you
YOU SAVE HIRE YOU SAVE HIRE YOU SAVE OWN YOU SAVE HIRE
a car a car a car a car

ET WEALTH Personal satisfaction Ease of taking trips Instant access Safer for women
If you own The sheer pleasure of Dealing with an emergency or taking You have a car at your disposal at all Given the cases of misconduct
ANALYSIS a car... buying and driving one's driving vacations are much easier to times, without the hassle of booking, by cab drivers, it’s safer for
Hiring an Uber is cheaper own car is incomparable. deal with if you have your own car. waiting or cancellation. women to drive on their own.
than buying a car, with
or without a chauffeur.
However, owning a car is
a better option if you are Dealing with traffic snarls Better use of time No need for navigation
If you hire The biggest benefit of a cab is that Hiring a car, if you don't have a chauffeur, If your sense of direction is non-existent,
impacted by surge pricing. you don't have to drive yourself out of means plenty of time at hand to catch up it is easier to leave the complicated routes
Here are some other pros & a cab...
frequent traffic jams and bottlenecks. with office mails and make calls. to the driver, particularly in metros.
cons of both the options.
 financial planning
14 The Economic Times Wealth September 23-29, 2019
Why we all must save a little
The only way to deal with uncertanities of the future is to save persistently, says Uma Shashikant.
tp
ht
UMA SHASHIK ANT
IS CHAIRPER SON, CENTRE
FOR INVES TMENT
EDUC ATION AND LE ARNING
The distaste for
savings is to my
mind the core
problem. There
isn’t any other
easy solution to an
uncertain future. Not
the stringent saving
that kills, or the
erratic saving that is
indisciplined, but a
small and persistent
saving as a habit.
m
nj
e/
.m
L
ast week, the hashtag
//t
#MillennialRetirementPlans was
trending on Twitter. The tweets
s:
offered humour, pragmatism and a
range of emotions. It was interest-
ing to see the need to break away from norms
of the earlier generations. The young were
persistent in pointing out that what worked
earlier won’t work now. Maybe, maybe not.
Should we be in charge of our retirement
or let the government provide retirement
benefits and social security? This debate is
old, and we have lived through the cycles of
one school dominating the other. The baby
boomers (born 1946-64) broke away from
handouts and expected their governments to
only provide the framework for retirement
security. The focus moved from benefit to
contribution. People began to save early,
invest without touching the corpus, and al-
lowed it to grow and fund their retirement.
Generation X (born 1965-1980) stepped into
their work lives during the period of boom
and bust, making money or losing jobs into
their adulthood. They were the consumerist
generation. They got themselves into debt
for homes and used credit cards happily, and
lived with the confidence of finding a job to
do through their lives. They worried when
conversations turned to retirement, felt
guilty about not doing enough, but hoped to
begin to save sooner than later. They wished
the government offered some social security.
The millennials (born 1981-96) are not sure
what the long term holds. Many joke about
not living long enough, or spending half
their lives finding a job and the other half
rs
pe
pa
_e
IMAGES BAZAAR
paying off loans. They disapprove of the con-
servative approach of baby boomers, though
many of them think they may fall back on
inheritance or their parents’ incomes if all
else fails. The primary marker for the mil-
lennials are that they are not in the formal
workforce by choice; they like the gig econ-
omy instead. Working wherever their skill
is sought, or starting small businesses that
may or may not work, is how their work life
pans out. They increasingly don’t own homes
and cars, for they find loans burdensome.
They blame the older generations for putting
them through expensive but useless educa-
tion and for advocating savings and owning
assets, when their income itself isn’t stable.
What would an educated generation that
works hard, but finds the amount of uncer-
tainty they have to deal with is too high do?
Retirement would be the last thing on their
minds. The traditional answer to an uncer-
tain future was savings. The baby boomers
denied themselves the luxuries to save for
the future. They saw the savings as their in-
surance against unexpected events.
The millennials do not have that world
view. They do not divide their work lives
into compartments. The idea that you would
earn, save and retire seems not just staid, but
difficult to pull off in their times. Their view
of their finances revolves around the balance
between spending and earning. Since they
are currently struggling to get past this basic
equation of comfort, their ability to have a
long term view is limited. Many remain pes-
simistic about their future, their longevity,
their retirement and their wealth.
The inequality in income rankles many
who posted on Twitter. They find earlier
generations have not only become very
rich, but have also eliminated many tra-
ditional jobs that paid a steady income.
They do not see themselves necessarily as
entitled, but blame the earlier generation
for the excesses and the lack of jobs across
the spectrum. The gig economy, where
every paying job is a risky contract, is not
their making, they argue. They see it as a
response to the excesses of the capitalist
and consumerist economic models. The
leaning of a significant number of millen-
nials to somewhat socialistic models stems
from their view that this inequality needs
serious correction.
Health is a big concern, expressed in vari-
ous ways in which it affects the millennials’
lives. They worry about the lack of ethical
selling in the food industry; they see them-
selves as being afflicted by lifestyle dis-
eases, as they keep long hours and eat errati-
cally; they find themselves short of money
and time to address any health issues that
may arise; and they worry about falling ill
and losing their jobs. The highest level of
pessimism is about aging and being afflict-
ed with some disease that needs money and
prolonged care. They don’t see themselves
prepared, nor do they see solutions.
The distaste for savings is to my mind the
core problem. There isn’t any other easy so-
lution to an uncertain future. Not the strin-
gent saving that kills, or the erratic saving
that is indisciplined, but a small and per-
sistent saving as a habit. The modern times
are not easy, and the millennials’ stories
about uncertain jobs are real. How would
you solve a problem you do not control?
It is the nature of economic cycles to not
reveal the trends until we are well into
it. The conservative baby boomers would
not have imagined themselves on top of
a wealth pile. If they did, they would not
have been so frugal. Gen X would not have
taken loans, spends and job changes with
abandon, if they knew their jobs will get
redundant. The confused milliennials do
not know how their creative solutions to
uncertainty, their determination to set the
wrong right, will make a better world for
everyone. While we argue for what we see
as effects and consequences, we discount
what we do in action to enable change.
That one ground rules remain unchal-
lenged through this churn—the precious
merit of our little savings that have been
invested to protect us when in trouble.
The millennials need not kill themselves
to save; but holding back on one spend a
day will go a long way. Put aside the cost of
one meal a day, you will be surprised how
it grows with time. Old fashioned, but im-
mensely doable.
Please send your feedback to
etwealth@timesgroup.com

Estimating equity returns
Look at the past return records to estimate gains from your investments.
Namita is a systematic
investor in equity funds.
She earns a decent sal-
ary and lives well. She
does not have any spe-
cific financial goals, but
tp
is keen to ensure that
her money grows. For
ht
investing regularly, she
finds it easy to use the SIP
route. However, she is con-
cerned about the returns,
not sure if they are good
enough. Is there a way she
can estimate her returns?
smart things to know
1
2
Stock exchange
is a platform
for listing
securities,
discovering All stock market
their price, trades are
trading conducted through
securities the members of the
and sharing exchange, called
information. brokers for a fee or
(BSE and NSE) ‘brokerage’.
m
nj
e/
.m
N
amita should know that returns
from investments can only be
//t
estimated. There is no guarantee
in the investment world. She can
s:
protect her investments from
high risks by using a sound process, and earn
market returns on her investments.
The easiest thing to do while trying to
estimate returns is to look at the past return
records and form expectations on this basis.
When it comes to equity, the returns can be vol-
atile. But what Namita will notice is that if she
diversifies her investment, so that she holds a
basket of equity shares; invests over a period of
time; and ensures that she stays invested for the
long term across market cycles, her return is
likely to be close to the long-term average. Using
SIPs, she is already following this process.
The long-term average return from equity
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Secondary market participants
4
Issuers are compa-
nies that list their
securities on the
stock exchange
3 5
after meeting
listed criteria and
signing the listing
agreement with the
exchange. (HDFC
Bank, RIL)
financial planning
The Economic Times Wealth September 23-29, 2019 15
PAPER WORK
:: Ways to assign life
insurance policy
Interest in a life insurance policy can
be transferred from the policyholder
to a lender or a relative by assignment
of policy. Here the policyholder is
known as the assignor and the person,
in whose favour the policy has been
assigned is called assignee.
Types of assignment
rs
There are two types of
assignment:
pe
 Conditional assignment:
This is done when the insured
wishes to pass benefits of the policy
to a relative in case of early death
pa
or certain conditions. The rights of
the policyholder are restored once
the conditions are fulfilled.
 Absolute assignment: This is done
_e as a part of consideration for a loan
in favour of the lender/bank/lending
institution. In such an assignment, the
insured loses his rights in the policy
and the absolute assignee can deal
with it independently.
Notice of assignment
GETTY IMAGES
The insured needs to
either endorse the policy
document or make a deed
of assignment and register the same
with the insurer. A form prescribed by
the insurers must be filled and signed.
investments tends to beat the inflation num-
In case of conditional assignment,
bers. The ability of equity to earn a higher re-
reason also needs to be mentioned.
turn comes from businesses being able to use
borrowed funds from investors and creditors,
Documents needed
invest them in assets and earn a return that
is higher. The business risk is compensated  Proof of income.
by the risk premium on equity investments  Self attested copy of
available only to equity investors. Namita photo ID and address proof.
will find that in the Indian scenario, the  Self attested copy of PAN card.
average long-term return from investing sys-
tematically has been about 14-16%. This will
come down only if inflation comes down. Fees and stamp duty
The return from equity will also be subject If the assignment is
to short-term ups and downs. Therefore, made by endorsement
Namita should not expect to earn a steady on the policy document,
return every year but expect the ups and it is exempt from the stamp duty.
downs, which tend to average out over time. However, in case of a separate
Since her investment plan is designed to re- deed, stamp duty is payable.
duce her risks, she should do well.
Acceptance
If the insurance company
decides to register the
assignment, it will record the
assignment and inform the assignor.
On paying a fee, the assignee can
obtain an acknowledgement.
Investors open Right to reject
demat accounts The insurer has a right
with members of to reject if it believes
the depositories,
that the assignment
Clearing Corporation called depository is not bona fide or against the
enables settlement participants interest of the policyholder or
of funds or money to hold their public interest or for the purpose
and securities securities and of trading the insurance policy.
between buyer and settle their
seller (NSCCL, ICCL). trades.
 family finance
16 The Economic Times Wealth September 23-29, 2019

All goals within

easy reach
By utilising his existing resources and securing risks
adequately, Shravan can ensure a smooth journey. SHRAVAN I. & RADHIKA, 32 & 29 YEARS, SALARIED, TAMIL NADU

by Riju Mehta
How to invest for goals

rs
Portfolio

S
hravan I. is a 32-year-old soft- INVESTMENT
FUTURE COST (`) / RESOURCES

pe
ware engineer from Tamil Nadu GOAL NEEDED
CURRENT VALUE TIME TO ACHIEVE USED
and gets a monthly salary of ASSET (`/MONTH)
(`)
`89,500. He stays with his home-
maker wife in a rented house.
Emergency fund 7.1 lakh Cash, FD, P2P loan -
Real estate 60 lakh

pa
After considering his household expens-
Buying a car 8.5 lakh / 3 yrs - 30,000
es, rent and insurance premium, he is left Cash 2.8 lakh
with a surplus of `32,308. His portfolio, Vacation 3.5 lakh / 5 yrs Cash -
Debt
worth `1.8 crore, comprises real estate in
the form of three plots of land worth `60
lakh, debt worth `40.6 lakh and equity
worth `83 lakh. His goals include building
a contingency corpus, buying a car and
PPF
EPF
Fixed deposits
17.5 lakh
16.9 lakh
3 lakh
_e
Buying a house

Future child’s
education
70 lakh / 5 yrs

1.7 crore / 18 yrs

Real estate

Mutual funds
-

-
m
a house, taking a vacation, saving for his Future child’s
future child’s education and wedding, and Others (P2P loan) 3.2 lakh 2.7 crore / 25 yrs Mutual funds -
wedding
nj

his retirement. Equity Mutual funds,

Financial Planner Pankaaj Maalde sug- Retirement 8.3 crore / 23 yrs -
Direct equity 44.4 lakh PMS, EPF, PPF
gests he build an emergency corpus of `3.6
e/

lakh for the couple and a medical buffer of Investible surplus

PMS 38.6 lakh 30,000
`3.5 lakh for his parents. This can be done needed
by allocating a portion of his cash, fixed Total 1.86 crore
.m

Annual return assumed to be 12% for equity and 8% for debt funds. Inflation assumed to be 7%.
deposit and P2P loan, which should be
invested in an ultra short duration fund.
Shravan wants to buy a car worth `8.5
LIABILITIES CURRENT VALUE (`)
Insurance portfolio
lakh after three years and can amass the
Home loan -
//t

EXISTING SUGGESTED
EXISTING
amount by starting an SIP of `30,000 in an Total liability - MONTHLY MONTHLY
INSURANCE COVER SUGGESTIONS
equity savings fund. For his goal of tak- PREMIUM PREMIUM
(`)
(`) (`)
s:

ing a `3.5 lakh vacation in five years, he

can invest his cash holding of `2 lakh in a Net worth `1.86 crore
Life insurance
short duration fund. No existing resource
tp

has been allocated to both these goals. Term plan - - Buy `1 crore plan 833
Shravan also wants to buy a house worth
`70 lakh in five years, for which he can sell Traditional
- - - -
ht

plan
his plots to get the desired amount.
For the education of his future child in
Cash flow Ulips - - -
18 years, Shravan has estimated a need EXISTING SUGGESTED
of `1.7 crore. For this, he can assign a por- (`) (`) TOTAL - - `1 crore 833
tion of his mutual fund corpus, which will
help amass the required amount in the Income 89,500 89,500 Health insurance
specified time. For the child’s wedding
in 25 years, he wants `2.7 crore, and can Employer’s 7.5 lakh 2,025 - -
Outflow
allocate the remaining mutual fund cor-
pus for this goal. For retirement, he will 1,000
Household Buy `10 lakh family
need `8.3 crore in 23 years as he wants to 55,167 55,167 Own - - + 2,025
expenses floater plan
retire at 55 years. For this, he can assign (existing)
his PPF, EPF, PMS and remaining mu- Insurance 2,025 4,191 TOTAL 7.5 lakh 2,025 `17.5 lakh 3,025
tual fund corpus. No fresh investment is premium
needed for this goal. Critical illness Buy `25 lakh
Shravan has no life insurance, and a Investment - 30,000 & accident - - accident 333
`7.5 lakh family floater plan for health disability disability plan
insurance, which has been provided by Total outflow 57,192 89,500 TOTAL - - - 333
his employer. Maalde suggests he buy a
`1 crore term plan, which will cost him Insurance cost - 2,025 - 4,191
`833 a month in premium. For health in-
Surplus 32,308 142
Premiums are indicative and could vary for different insurers.
surance, he should buy a `10 lakh family
floater plan, which will cost him `1,000 a
month in premium. He should also pur-
FINANCIAL PLAN BY
Write to us Looking for a professional to analyse your investment
portfolio? Write to us at etwealth@timesgroup.com with
chase a `25 lakh accident disability plan
at a monthly premium of `333. This should
PANKAAJ MAALDE for expert ‘Family Finances’ as the subject. Our experts will study
your portfolio and offer objective advice on where and
take care of his insurance needs.
CERTIFIED FINANCIAL PLANNER
advice how much you need to invest to reach your goals.
SMART STATS
The Economic Times Wealth
September 23-29, 2019

In This Section
MUTUAL FUNDS - P18
LOANS AND DEPOSITS - P20

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 RISK R AT I N G
Current Previous Stock Net Div Downside Bear No. of Consensus
Rank Rank Price Revenue Profit PE PB Yield PEG Risk Beta Analysts Rating

Apar Industries 1 1 537.95 19.71 48.41 15.10 1.71 1.75 0.31 1.11 0.92 10 4.90
1 Fast growing stocks
KEC International 2 2 250.45 23.48 28.24 13.28 2.65 1.07 0.48 1.48 0.93 30 4.70
Top 5 stocks with the highest
JK Cement 3 3 1019.95 20.58 63.78 27.75 2.92 0.98 0.32 1.06 0.87 22 4.64
expected revenue % growth
HG Infra Engineering 4 4 189.35 32.76 38.70 9.62 1.85 0.26 0.24 2.09 0.70 13 5.00 over the previous year
Gujarat Gas 5 7 169.00 33.90 78.52 27.54 5.23 0.59 0.40 1.35 1.02 28 4.61 Sterlite

rs
Technologies 40
Aurobindo Pharma 6 5 606.20 30.44 25.04 15.00 2.55 0.40 0.56 1.39 1.04 36 4.64
Engineers India 7 6 109.35 26.61 25.94 18.69 2.94 3.66 0.79 1.61 0.75 18 4.39 Gujarat Gas 34

pe
Zensar Technologies 8 8 214.85 20.23 24.03 3.10 2.50 1.30 0.14 1.70 1.18 16 4.63 PI Industries 33
DB Corp 9 9 135.80 5.76 27.01 8.82 1.29 7.35 0.27 1.27 1.31 16 4.19 HG Infra
Engineering 33
Ipca Laboratories 10 10 947.90 21.69 42.11 26.94 3.84 0.32 0.64 1.16 0.53 26 4.42

pa
Aurobindo
Bharat Heavy Electricals 11 11 47.40 9.66 37.99 17.07 0.54 4.11 0.49 1.79 1.37 34 3.06 30
Pharma
Ahluwalia Contracts India 12 22 310.05 21.65 32.36 17.75 2.83 0.09 0.55 1.47 0.82 16 4.81
Century Plyboards India 13 14 135.30 15.25 42.23 20.34 3.10 0.72 0.48 1.75 1.11 19 4.53
2 Least expensive stocks
UltraTech Cement
Parag Milk Foods
14
15
13
12
3866.30
155.65
25.75
22.56
76.08
24.13
43.59
10.91
3.74
1.59
0.29
0.47
_e
0.61
0.47
1.27
1.74
1.35
0.83
40
15
4.13
4.40
Top 5 stocks with the lowest
price-earnings ratio
m
Rallis India 16 21 161.15 17.86 27.75 20.22 2.44 1.52 0.73 1.12 0.43 19 3.89 Zensar
Technologies 3.10
Allcargo Logistics 17 15 98.65 14.96 15.36 10.08 1.22 3.49 0.48 1.37 0.91 10 4.70
Jagran
Sun Pharmaceutical 18 24 411.15 20.19 44.60 36.88 2.37 0.66 0.84 1.70 0.94 43 3.54 7.61
nj

Prakashan
Oberoi Realty 19 23 526.90 21.16 41.25 23.14 2.39 0.38 0.51 1.76 1.38 25 4.04 NTPC 7.96
Alkem Laboratories 20 16 1866.75 17.77 37.64 29.71 4.15 0.84 0.80 0.82 -0.15 18 4.61
e/

Redington
India 8.18
Power Grid Corp of India 21 20 201.15 10.33 11.57 8.37 1.78 4.12 0.64 0.94 0.53 28 4.32
Ashok
Redington India 22 17 104.45 15.25 15.76 8.18 1.04 3.15 0.53 1.82 0.58 10 4.70 Leyland 8.29
.m

NBCC India 23 38 34.00 24.28 31.91 16.32 4.05 3.39 0.52 2.31 2.41 14 4.07
HeidelbergCement India 24 26 184.80 12.91 39.00 18.98 3.58 2.13 0.49 1.61 1.70 15 4.47
3 Best PEGs
//t

NTPC 25 27 121.70 13.52 4.83 7.96 1.10 4.48 1.03 1.10 0.89 26 4.85
Top 5 stocks with the least
Larsen & Toubro 26 30 1300.70 19.61 17.37 20.50 2.93 1.37 1.19 0.99 0.98 39 4.64 price-earnings to growth ratio
Jagran Prakashan 27 28 65.90 5.76 17.32 7.61 1.04 4.26 0.41 1.60 0.79 14 4.36 HG Infra
s:

Apar Industries
Engineering
Emami 28 19 310.70 13.92 83.60 46.53 6.80 1.27 0.55 1.46 0.97 34 4.26
Grasim Industries 29 18 699.90 16.52 49.87 25.95 0.82 1.00 0.87 1.51 1.41 12 4.58
tp

0.14 0.24 0.27 0.31 0.32

CCL Products India 30 25 246.90 24.43 25.45 21.22 3.92 0.71 0.84 0.95 0.38 10 4.70
Narayana Hrudayalaya 31 31 232.90 20.70 129.81 79.81 4.37 0.42 0.62 1.35 0.47 11 5.00
ht

Zensar DB Corp JK Cement

JSW Energy 32 33 63.90 5.18 37.08 15.09 0.89 1.55 0.40 1.36 0.96 16 3.19 Technologies
Sobha 33 32 505.30 16.37 19.27 16.13 2.15 1.34 0.79 1.60 1.03 23 4.57
4 Income generators
Reliance Industries 34 34 1179.05 10.19 27.63 17.70 1.81 0.54 0.71 1.25 1.05 36 4.28
Lupin 35 37 741.25 14.74 71.10 55.23 2.44 0.66 0.77 1.19 0.89 46 2.83 Top 5 stocks with the highest
dividend yield (%)
Info Edge India 36 36 1928.50 29.45 63.33 39.15 9.30 0.26 0.32 1.72 0.15 29 3.52
Sterlite Technologies 37 29 153.15 40.03 19.36 10.80 3.59 2.21 0.62 2.45 1.47 12 4.42 DB Corp 7.35

Ashok Leyland 38 39 58.40 17.81 11.19 8.29 1.97 5.20 0.74 1.73 1.19 49 3.24 Ashok Leyland 5.20
NTPC 4.48
Hexaware Technologies 39 35 376.25 24.17 21.37 19.10 4.41 2.37 1.09 1.33 0.38 28 3.79 Jagran
Prakashan 4.26
Jubilant Life Sciences 40 46 522.60 7.87 22.69 13.95 1.70 0.86 0.60 1.65 1.35 13 4.77 Power Grid
Corp of India 4.12
Adani Ports & SEZ 41 40 361.90 19.76 25.37 18.83 3.08 0.05 0.73 1.61 1.62 24 4.75
Mahanagar Gas 42 42 828.80 7.27 16.06 14.97 3.41 2.39 0.93 1.08 0.67 27 4.48
5 Least risky
Cipla/India 43 44 452.05 13.50 25.50 24.05 2.45 0.65 0.94 1.07 0.62 42 3.60
Top 5 stocks with the lowest
PI Industries 44 -- 1250.80 33.26 39.53 42.18 7.58 0.31 1.06 1.17 0.65 24 4.21 downside risk
Mphasis 45 41 967.55 18.32 11.91 17.23 3.43 2.74 1.19 1.24 0.99 33 4.30 Power Grid
Corp of India Larsen & Toubro
HCL Technologies 46 43 1049.55 21.52 7.96 14.27 3.39 0.76 1.53 1.21 0.45 49 4.12
Thermax 47 45 998.40 11.50 56.42 34.58 3.95 0.70 0.67 1.19 0.59 32 2.78
0.82 0.94 0.95 0.99 1.04
SRF 48 -- 2702.45 20.01 39.94 24.28 3.77 0.47 0.62 1.41 1.38 17 3.82
Ramco Cements 49 48 707.45 20.22 39.94 30.76 3.68 0.42 0.77 1.07 1.33 27 3.52
Alkem CCL Products Torrent
Torrent Pharmaceuticals 50 49 1702.10 12.79 47.64 66.33 6.12 1.02 1.40 1.04 0.59 33 4.27 Laboratories India Pharmaceuticals

SEE DOWNSIDE RISK AND BEAR BETA COLUMNS

IN THE ADJACENT TABLE.
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 19 SEPT 2019. SOURCE: BLOOMBERG
 smart stats
18 The Economic Times Wealth September 23-29, 2019

ETW FUNDS 100

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

LAGGARDS LEADERS

ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are
3.22 10.43
ranked on 3-year returns while debt-oriented hybrid and income funds are Principal Nifty 100 Equal Weight Mirae Asset Large Cap Fund
ranked on 1-year returns. 4.02 9.93
Baroda Large Cap Quant Focused Fund

Value Research Net Assets

RETURNS (%)
Expense 4.18 9.6
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) Taurus Largecap Equity Axis Bluechip Fund
4.88 9.3
EQUITY: LARGE-CAP JM Large Cap JM Core 11 Fund
Axis Bluechip Fund  7005.1 -2.5 3.33 4.57 11.82 9.6 2
5.1 8.99

rs
Mirae Asset Large Cap Fund  13946.19 -5.28 -4.04 -1.4 9.58 10.43 1.75 11.8% DSP Top 100 Equity Reliance ETF Junior BeES
Sundaram Select Focus Fund  972.51 -4.85 -1.93 -1.29 9.55 7.13 2.38 THE 3-YEAR
HDFC Index Fund  467.63 -5.94 -3.41 -1.18 9.38 7.17 0.3 RETURN

pe
Canara Robeco Bluechip Equity Fund  220.65 -4.98 -2.09 -0.62 7.83 7.69 2.65 OF AXIS
HDFC Top 100 Fund  16842.38 -9.28 -6.53 -2.14 7.57 6.59 1.88
BLUECHIP IS
THE HIGHEST
Equity: Multi-cap 5-year returns
Edelweiss Large Cap Fund  155.04 -5.31 -2.18 -4.7 7.33 7.95 1.99 IN ITS
CATEGORY. 3.28 13.02

pa
ICICI Prudential Bluechip Fund  21672.64 -6 -4.11 -4.39 7.33 7.86 1.78
Reliance Large Cap Fund  11819.31 -9.65 -9.33 -6.76 7.05 7.83 1.86 Taurus Starshare (Multi Cap) Motilal Oswal Multicap 35
Motilal Oswal Focused 25 Fund  1059.55 -4.28 -0.7 -2.28 6.54 8.72 2.25 3.37 11.46
JM Core 11 Fund  49.56 -4.03 -6.35 -2.52 6.47 9.3 — LIC MF Multicap Axis Focused 25
SBI Bluechip Fund

EQUITY: LARGE- & MID-CAP

Mirae Asset Emerging Bluechip Fund



21483.76

7759.44
-6.11

-3.71
-2.62

-2.77
-2.18

0.78
5.1

11.25
_e
8.54

15.27
1.89

1.88
11.3%
3.94
Union Multi Cap

HDFC Focused 30
4.2
10.83
SBI Magnum Multicap
10.82
Kotak Standard Multicap
m
Sundaram Large and Mid Cap Fund  720.99 -5.45 -4.41 -4.51 9.21 9.75 2.6
Invesco India Growth Opportunities Fund  1658.8 -3.85 -4.27 -4.1 8.64 9.64 2.07 THE 3-YEAR 4.84 10.55
LIC MF Large & Mid Cap Fund  509.41 -2.36 -1.15 -2.77 8.5 — 2.77
RETURN OF
MIRAE ASSET ICICI Prudential Focused Tata Retirement Savings
nj

Canara Robeco Emerging Equities Fund  4668.59 -7.8 -7.32 -8.73 7.39 11.64 2.07
EMERGING
Kotak Equity Opportunities Fund  2487.55 -5.25 -3.91 -1.41 6.61 9.38 2.17 BLUECHIP IS
THE HIGHEST
Principal Emerging Bluechip Fund  2057.33 -6.54 -6.91 -11.42 5.68 10.57 2.09
Equity: Mid-cap 3-year returns
e/

IN ITS
EQUITY: MULTI-CAP CATEGORY.
Axis Focused 25 Fund  7841.41 -3.84 0.45 -4.05 10.65 11.46 2.03 -1.97 10.25

.m

Parag Parikh Long Term Equity Fund 2066.68 -1.13 0.2 -0.18 10.55 10.5 2.08 SBI Magnum Midcap Axis Midcap Fund
Tata Retirement Savings Fund  632.32 -4.48 -3.89 -4.85 8.7 10.55 2.45
-1.02 6.14
SBI Focused Equity Fund  5127.07 -4.35 -1.16 0.03 8.59 10.47 2.09
PGIM India Midcap Opportunities Invesco India Mid Cap Fund
Edelweiss Multi Cap Fund  417.73 -7.07 -4.9 -5.04 8.31 — 2.48
Kotak Standard Multicap Fund  25381.36 -6.1 -3.35 -0.96 8.17 10.82 1.75 0.2 5.89
//t

SBI Magnum Multicap Fund  7549.36 -4.47 -1.61 -0.5 7.66 10.83 2.07 UTI Mid Cap Fund L&T Midcap Fund
Motilal Oswal Multicap 35 Fund  12693.11 -5.49 -4.63 -5.63 7.05 13.02 1.76 0.46 5.7
Quant Active Fund*  6.27 -7.4 -7 -8.72 6.27 8.64 2.48
s:

Aditya Birla Sun Life Mid Cap Tata Midcap Growth Fund
Aditya Birla Sun Life Equity Fund  10652.87 -4.95 -5.42 -6.16 5.81 9.37 1.96
Franklin India Focused Equity Fund  7981.32 -9.29 -6.21 -1.54 5.72 8.76 1.85
0.64 5.22
Motilal Oswal Midcap 100 DSP Midcap Fund
tp

ICICI Prudential Multicap Fund  3990.54 -6.61 -5.65 -7.61 5.08 8.41 2.08
Exchange Traded
EQUITY: MID-CAP
Axis Midcap Fund  2819.12 -1.63 -0.64 -1.72 10.25 9.73 2.17 Equity: Small-cap 3-year returns
ht

L&T Midcap Fund  4905.48 -6.31 -8.38 -12.8 5.89 10.39 2 10.3%
DSP Midcap Fund  5920.68 -3.52 -3.68 -4.56 5.22 10.37 1.95 THE 3-YEAR
RETURN OF
-6.48 10.98
Kotak Emerging Equity Scheme  4469.53 -5.23 -4.48 -5.75 5.12 11.18 2.04
AXIS MID- Quant Small Cap Fund SBI Small Cap Fund
Franklin India Prima Fund  6694.33 -5.35 -6.86 -6.79 4.31 9.73 1.88
CAP FUND IS -2.99 9.48
HDFC Mid-Cap Opportunities Fund  20943.79 -7.47 -9.23 -11.68 3.08 8.86 1.85
THE HIGH-
EST IN ITS Sundaram Small Cap Fund Axis Small Cap Fund
EQUITY: SMALL-CAP CATEGORY. -1.45 7.86
SBI Small Cap Fund  2413.24 -2.55 -3.68 -9.47 10.98 15.21 2.31

Aditya Birla Sun Life Small Cap HDFC Small Cap Fund
Axis Small Cap Fund 885.44 0.38 6.7 7.01 9.48 11.28 2.48
HDFC Small Cap Fund  8208.77 -9.17 -12.75 -15.16 7.86 9.95 2.1 -1.35 6.93
Reliance Small Cap Fund  7491.46 -7.25 -8.74 -15.89 6.93 10.35 2.19 Union Small Cap Fund Reliance Small Cap Fund
L&T Emerging Businesses Fund  5638.54 -6.78 -11.1 -17.16 6.92 11.06 2.02 -1.14 6.92
EQUITY: VALUE-ORIENTED DSP Small Cap Fund L&T Emerging Businesses Fund
Kotak India EQ Contra Fund  818.74 -5.72 -4.71 -4.66 9.19 8.48 2.58
Invesco India Contra Fund  3991.92 -6.52 -7.59 -7.07 8.57 10.17 1.9
Tata Equity PE Fund  5208.24 -5.68 -6.88 -9.78 7.12 9.32 1.9 Hybrid: Aggressive 5-year returns
L&T India Value Fund  7633.41 -7.89 -6.98 -10.11 5.25 9.57 1.88

EQUITY: TAX-SAVING
0.98 10.2
JM Equity Hybrid Fund Tata Retirement Savings Fund
Mirae Asset Tax Saver Fund  2305.59 -4.44 -2.92 -0.54 12.18 — 2.02
4.33 9.64
Axis Long Term Equity Fund
JM Tax Gain Fund


19236.11
30.64
-3.01
-3.66
0.77
-0.97
-1.41
0.1
9.41
8.29
10.76
9.19
1.76
—
12.2% PGIM India Hybrid Equity Fund SBI Equity Hybrid Fund
Motilal Oswal Long Term Equity Fund  1389.39 -3.99 -4.22 -6.5 8.08 — 2.15 THE 3-YEAR
RETURN OF 4.64 8.77
Tata India Tax Savings Fund  1814.81 -6.47 -3.31 -0.52 7.59 10.67 2.12
MIRAE ASSET LIC MF Equity Hybrid Fund ICICI Prudential Equity & Debt Fund
DSP Tax Saver Fund  5482.26 -3.42 -1.84 0.58 6.96 9.69 1.88 TAX SAVER
Aditya Birla Sun Life Tax Relief 96  8561.62 -4.57 -6.87 -10.38 6.77 10.05 2.07 FUND IS THE 5.06 8.7
Invesco India Tax Plan  859.03 -5.98 -5.75 -6.91 6.65 8.94 2.35 HIGHEST IN Baroda Hybrid Equity Fund Canara Robeco Equity Hybrid Fund
IDFC Tax Advantage (ELSS) Fund  1876.67 -8.87 -8.41 -10.64 6.56 8.29 2.15
ITS CATEGORY. 5.54 8.66
Kotak Tax Saver  895.56 -7.3 -3.53 -1.55 6.52 9.37 2.4 Shriram Hybrid Equity Fund HDFC Hybrid Equity Fund
Quant Tax Plan*  9.36 -7.71 -6.93 -9.76 5.03 11.07 2.48
ANNUALISED RETURNS IN % AS ON 18 SEPTEMBER 2019.
 smart stats
The Economic Times Wealth September 23-29, 2019 19

ETW FUNDS 100 Top 5 SIPs

Value Research
Fund Rating
Net Assets
(` Cr) 3-Month 6-Month
RETURNS (%)
1-Year 3-Year 5-Year
Expense
Ratio
1 Top 5 equity schemes based
HYBRID: EQUITY SAVINGS on 10-year SIP returns
Kotak Equity Savings Fund  1949.79 -0.8 0.63 2.64 6.68 — 2.16 6.7% SBI Small Cap Fund
HDFC Equity Savings Fund  4909.64 -2.19 -0.5 1.78 6.56 7.34 1.93 THE 3-YEAR
ICICI Prudential Equity Savings Fund  1530.42 0.14 2.27 6.08 6.42 — 1.34 RETURN OF 19.04

KOTAK EQ-
Edelweiss Equity Savings Fund 118.82 -0.68 1.26 2.81 6.38 — 1.74 Canara Robeco Emerging Equities Fund
UITY SAVINGS
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) FUND IS THE 17.04
HIGHEST IN
Mirae Asset Hybrid Equity Fund  2429.15 -3.97 -2.37 1.39 8.58 — 2.01 Principal Emerging Bluechip Fund
ITS CATEGORY.
SBI Equity Hybrid Fund  29353.7 -2.27 0.85 4.23 8.08 9.64 1.65
HDFC Retirement Savings Fund  312.73 -4.55 -2.99 -0.25 7.97 — 2.64
14.73
Tata Retirement Savings Fund  1048.75 -3.88 -4.89 -4.71 7.49 10.2 2.26 SBI Focused Equity Fund
Principal Hybrid Equity Fund  1558.56 -4.61 -6.39 -6.54 7.33 8.54 2.11
14.57
HDFC Children's Gift Fund  2780.12 -4 -3.23 -0.85 7.27 8.49 2.13
Kotak Emerging Equity Scheme
Canara Robeco Equity Hybrid Fund  2341.39 -4.14 -2.28 1.08 7.08 8.7 2.15
ICICI Prudential Equity & Debt Fund  23288.42 -4.77 -2.98 -1.66 6.74 8.77 1.73 14.45
HDFC Hybrid Equity Fund  20695.95 -4.99 -3.43 -0.06 6.72 8.66 1.77

rs
SIP: SYSTEMATIC % ANNUALISED RETURNS
HYBRID: CONSERVATIVE (DEBT-ORIENTED) INVESTMENT PLAN AS ON 18 SEPTEMBER 2019

ICICI Prudential Regular Savings Fund  1639.51 0.17 2.12 7.19 7.67 9.27 1.94 7.2%

pe
Tata Retirement Savings Fund  130.42 -0.45 1.2 4.41 6.05 7.95 2.23 THE 1-YEAR
Top 5 MIPs
Indiabulls Savings Income Fund
Aditya Birla Sun Life Regular Savings Fund


18.86
2003.6
-1.21
-0.72
1.2
1.15
4.3
1.64
8
4.57
—
8.36
2.22
1.86
RETURN OF
ICICI PRU REG-
2 Top 5 MIP schemes based on
UTI Regular Savings Fund  2379.01 -0.08 -1.85 -0.1 5.12 7.25 1.79
ULAR SAVINGS
FUND IS THE 3-year SWP returns

pa
SBI Magnum Children's Benefit Fund  62.31 -1.29 -2.21 -0.48 8.32 10.21 2.26
HIGHEST IN ITS
CATEGORY. Indiabulls Savings Income
DEBT: MEDIUM- TO LONG-TERM
IDFC Bond Fund Income Plan  673.28 3.35 7.98 15.5 7.71 9.09 1.89 7.88
ICICI Prudential Bond Fund  3318.48 3.09 6.17 11.84 6.92 8.82 1.08
SBI Magnum Income Fund

DEBT: MEDIUM-TERM
SBI Magnum Medium Duration Fund



1204.3

1841.93
2.81

2.99
6.54

6.03
11.84

11.56
7.62

8.68
_e8.85

9.27
1.47

1.09
ICICI Prudential Regular Savings

Baroda Conservative Hybrid

7.44
m
Indiabulls Income Fund  21.87 2.02 4.63 10.15 7.62 8.66 0.76 6.81
Franklin India Income Opportunities Fund  3587.02 1.27 2.64 7.96 7.99 8.55 1.71 BNP Paribas Conservative Hybrid
Axis Strategic Bond Fund  1185.13 2.71 2.68 7.76 7.17 8.73 1.05
5.62
nj

DEBT: SHORT-TERM
Axis Short Term Fund  2153.68 3.83 5.21 10.29 7.46 8.15 0.9
10.3% Canara Robeco Conservative Hybrid
THE 1-YEAR 5.56
e/

HDFC Short Term Debt Fund  8487.64 2.75 5.09 10.13 7.72 8.39 0.4
RETURN OF
Baroda Short Term Bond Fund*  297.92 2.24 4.89 9.34 7.91 8.43 1.29 AXIS SHORT SWP: SYSTEMATIC % ANNUALISED RETURNS
Franklin India Short Term Income Plan  13155.95 1.32 2.36 8.35 8.18 8.61 1.49 TERM FUND WITHDRAWAL PLAN AS ON 18 SEPTEMBER 2019
IS THE HIGH-
.m

Indiabulls Short Term Fund  67.78 1.23 3.61 8.13 7.03 7.95 1.48
EST IN ITS
BNP Paribas Short Term Fund  120.69 4.04 2.77 7.55 6.63 7.61 1.19
CATEGORY.
DEBT: DYNAMIC BOND
SBI Dynamic Bond Fund  1126.07 3.56 9.1 14.94 8.21 9.51 1.66 3 Multi Cap Cash holdings
//t

PGIM India Dynamic Bond Fund  41.37 2.95 7.81 14.13 8.58 9.69 1.28
Kotak Dynamic Bond Fund  790.76 2.48 6.43 13.47 8.36 9.26 1.08
21.48
ICICI Prudential All Seasons Bond Fund  2779.93 2.52 6.02 10.62 7.83 9.82 1.32
s:

Franklin India Dynamic Accrual Fund  3981.43 1.46 3.07 9.11 8.29 9.43 1.68 17.76 17.34
16.17
DEBT: CORPORATE BOND 14.71
tp

HDFC Corporate Bond Fund  12910.11 2.89 5.9 11.75 8.01 8.82 0.45
Aditya Birla Sun Life Corporate Bond Fund  16274.98 2.52 5.34 10.88 7.89 8.74 0.39
Franklin India Corporate Debt Fund  1033.42 1.21 4.29 10.37 8.21 8.75 0.87
ht

Kotak Corporate Bond Fund  2447.6 2.67 5.11 10.18 8.1 9.23 0.59 Expense as on 31 August 2019
* : Expense as on before 31 August 2019
ICICI Prudential Corporate Bond Fund  9002.07 2.64 5.25 10.14 7.56 8.34 0.56
Returns as on 18 September 2019
Reliance Prime Debt Fund  1139.9 2.75 3.98 8.64 7.31 8.03 0.71
Assets as on 31 August 2019 Kotak HDFC ICICI Pru- Shriram ITI Multi
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Rating as on 31 August 2019 Focused Retirement dential Multi- Cap Fund
Equity Savings Retire- cap
Did not find your fund here? Fund Fund ment
Log on to www.wealth.economictimes.com for an exhaustive list. % AS ON 31 AUGUST 2019

Methodology EQUITIES (figures over the past one year)

The Top 100 includes only those funds that have a 5- or
4-star rating from Value Research. The rating is determined
Large-cap: Mostly invested in large-cap companies.
4 Debt Liquid: Expense ratio
by subtracting a fund’s risk score from its return score.
The result is assigned stars according to the following
Multi-cap: Mostly invested in large- and mid-cap
companies. FUND
distribution:

  Top 10%

Mid-cap: Mostly invested in mid-cap companies.
Small-cap: Mostly invested in small-cap companies.
RAISER 0.15 0.15
0.16
0.17

  Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered 0.11

15.84%
  Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
  Next 22.5% 100 listing) Income: Average maturity varies according to objective.
  Bottom 10% Gilt: Medium- and long-term; invest in gilt securities.
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more of the total AUM of
less than three years old have been excluded. This ensures than 60%. the equity funds was
that all the funds have existed long enough to be tracked for
consistency of performance. Given the focus on long-term
Debt-oriented aggressive: Average equity exposure invested in small-cap
between 25-60%. Canara IDFC Cash L&T Axis Mirae As-
investing, liquid funds, short-term funds and FMPs are not stocks in the month of Robeco Fund Liquid Liquid set Cash
Debt-oriented conservative: Average equity exposure
part of the list. For the same reason, we have considered only
less than 25%.
August 2019, compared Liquid Fund Fund Manage-
the growth option of funds that reinvest returns instead of
to 18.1% in August 2018. ment
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity
Despite these rigorous filters, the list includes 2/3 funds of and derivatives. % AS ON 31 AUG 2019
% EXPENSE RATIO IS CHARGED ANNUALLY.
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per
METHODOLOGY OF TOP 100 FUNDS ON
The fund categories are: market conditions. WWW.WEALTH.ECONOMICTIMES.COM
 loans and deposits
20 The Economic Times Wealth September 23-29, 2019

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

TENURE: 1 YEAR
IDFC First Bank
Interest rate (%)
compounded qtrly
8.00
What `10,000
will grow to
10,824
BANK Top banks for 2 years
BANK NAME MCLR (%) WITH EFFECT FROM
RBL Bank
Indusind Bank
Lakshmi Vilas Bank
7.70
7.50
7.50
10,793
10,771
10,771
MCLR State Bank Of India
Union Bank Of India
8.25
8.50
10 September 2019
1 September 2019
Yes Bank 7.25 10,745 Axis Bank 8.55 18 September 2019

rs
TENURE: 2 YEARS Marginal Cost of funds-based Lending
Rate (MCLR) is a benchmark lending HDFC Bank 8.60 7 September 2019
IDFC First Bank 8.00 11,717
AU Small Finance Bank 7.87 11,687 rate designated by RBI and replaces IOB 8.60 10 August 2019

pe
RBL Bank 7.75 11,659 the base rate.
DCB Bank 7.50 11,602
Lakshmi Vilas Bank 7.50 11,602
Top banks for 6 months Top banks for 3 years

pa
TENURE: 3 YEARS
DCB Bank 8.00 12,682 BANK NAME MCLR (%) WITH EFFECT FROM BANK NAME MCLR (%) WITH EFFECT FROM
AU Small Finance Bank 8.00 12,682
State Bank Of India 8.00 10 September 2019 State Bank Of India 8.35 10 September 2019
Lakshmi Vilas Bank
IDFC First Bank
RBL Bank

TENURE: 5 YEARS
7.50
7.50
7.50
12,497
12,497
12,497
Central Bank Of India

Punjab National Bank

8.15
8.20
_e 15 September 2019

1 September 2019
Punjab National Bank

Union Bank Of India

8.50
8.55
1 September 2019

1 September 2019
m
AU Small Finance Bank 7.77 14,693 Union Bank Of India 8.20 1 September 2019 Axis Bank 8.60 18 September 2019
DCB Bank 7.75 14,678
Allahabad Bank 8.25 14 August 2019 HDFC Bank 8.70 7 September 2019
nj

IDFC First Bank 7.50 14,499

RBL Bank 7.50 14,499
Indusind Bank 7.35 14,393
e/

Top banks for 1 year Top banks for 5 years

MCLR BANK NAME MCLR (%) WITH EFFECT FROM
.m

BANK NAME WITH EFFECT FROM

Top five senior citizen bank FDs (%)
Karur Vysya Bank 9.45 7 September 2019
Interest rate (%) What `10,000
TENURE: 1 YEAR
State Bank Of India 8.15 10 September 2019
compounded qtrly will grow to City Union Bank 9.75 5 September 2019
IDFC First Bank 8.50 10,877 Central Bank Of India 8.25 15 September 2019
//t

RBL Bank 8.20 10,846

Punjab National Bank 8.30 1 September 2019
Lakshmi Vilas Bank 8.10 10,835
Bank Of India 8.35 10 September 2019 FOR ANY CHANGES IN MCLR RATES,
s:

Indusind Bank 8.00 10,824

PLEASE E-MAIL US AT ETIGDB@TIMESGROUP.COM
Bandhan Bank 8.00 10,824 Syndicate Bank 8.35 13 September 2019
TENURE: 2 YEARS
tp

IDFC First Bank 8.50 11,832

AU Small Finance Bank 8.37 11,802
Your EMI for a loan of `1 lakh
ht

RBL Bank 8.25 11,774

Bandhan Bank 8.15 11,751 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
Lakshmi Vilas Bank 8.10 11,740
@ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
@ 10% 2,125 1,322 1,075 965 909
DCB Bank 8.50 12,870
AU Small Finance Bank 8.50 12,870 @ 12% 2,224 1,435 1,200 1,101 1,053
Lakshmi Vilas Bank 8.10 12,720 @ 15% 2,379 1,613 1,400 1,317 1,281
Bandhan Bank 8.10 12,720
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
IDFC First Bank 8.00 12,682 FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175

TENURE: 5 YEARS
AU Small Finance Bank 8.27 15,057 Post office deposits Interest (%)
Minimum
invt. (`)
Maximum investment (`) Features
Tax
benefits
DCB Bank 8.25 15,043
IDFC First Bank 8.00 14,859 Senior Citizens' Savings Scheme 8.60 1,000 15 Lakh 5-year tenure, minimum age 60 80C
RBL Bank 8.00 14,859 Sukanya Samriddhi Yojana 8.40 250 1.50 Lakhs One account per girl child 80C
Bandhan Bank 8.00 14,859
Public Provident Fund 7.90 500 1.50 Lakhs p.a. 15-year tenure, tax-free returns 80C

Top five tax-saving bank FDs 5-year NSC VIII Issue 7.90 100 No Limit No TDS 80C
Interest What `10,000 Time deposit 6.90-7.70 200 No Limit Available in 1, 2, 3, 5 years 80C#
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
AU Small Finance Bank 7.77 14,693 Post Office Monthly Income Single 4.5 Lakhs 5-year tenure, monthly returns Nil
7.60 1,500
DCB Bank 7.75 14,678 Scheme Joint 9 Lakhs 5-year tenure, monthly returns Nil
IDFC First Bank 7.75 14,678
Kisan Vikas Patra 7.60 1,000 No Limit Can be encashed after 2.5 years Nil
Indusind Bank 7.50 14,499
Recurring deposits 7.20 10 No Limit 5-year tenure Nil
RBL Bank 7.50 14,499
Savings account 4.00 20 No Limit `10,000 interest tax free Nil
ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDATABASE@TIMESGROUP.COM) Data as on 19 Sept 2019 # Benefit available only for 5-year deposit
 non-traditional investments
The Economic Times Wealth September 23-29, 2019 21

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

Diamond Index Precious Metals Index Wine Index Coin Index

119.65 115.76 1,560.84 1,967.3 359.05 348.61 17,900 23,000
18 SEP 2018 17 SEP 2019 18 SEP 2018 18 SEP 2019 18 SEP 2018 18 SEP 2019 18 SEP 2019
18 SEP 2018

rs
pe
pa
CHANGE
X I WEEK -0.58% I WEEK 0.62% I WEEK -0.01% I WEEK 0%
X I YEAR -3.25%
Overall Diamond Index is based on
I YEAR 26.04%
The S&P GSCI Precious Metals Index
_e I YEAR -2.91%
The Liv-ex Fine Wine 50 Index tracks
I YEAR 28.49%
The Krugerrand Coin index represents
m
actual transactions from 20 different comprises gold (91.33%) & silver (8.67%) daily price movement of the most the denomination of a 22 carat gold
market players and reflects price & provides a benchmark for investment heavily traded commodities in the wine bullion coin weighing one troy ounce
movements in the global diamond performance in the precious metals market. It includes only the 10 most that is listed for trading on the
nj

market. The index is updated daily. commodity markets. It is updated daily. recent vintages and is updated daily. Johannesburg Stock Exchange.
e/

PENNY STOCKS UPDATE

.m

Penny stocks as a recommended non-traditional investment? Not exactly. ET WEALTH

neither has the expertise nor does it recommend investing in such stocks. But since the
relatively ‘low’ cost of investment attracts some investors to penny stocks, we provide
a weekly snapshot of this most volatile and uncertain type of stock investing.
//t

Top price gainers Top volume gainers

s:

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
tp

STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR)

Andhra Cement 3.73 0.54 101.62 0.56 47.72 109.48 BT Syndicate 8.74 -8.00 -1.80 0.28 47,709.14 89.76
ht

Nitin Fire Protection Ind. 0.61 19.61 69.44 0.17 47.79 17.83 Econo Trade (India) 6.02 -11.86 -43.74 0.13 17,253.35 11.24
Noida Toll Bridge Co. 5.73 -1.21 68.53 0.26 79.89 106.69 Swagruha Infrastructure 6.29 4.66 15.41 0.03 3,058.04 43.09
Mercantile Ventures 7.23 -5.24 68.53 0.02 17.80 80.92 Satkar Finlease 1.87 14.72 8.72 0.04 2,661.11 41.21
Soma Textiles & Ind. 4.28 7.81 65.25 0.04 -41.78 14.14 Safal Herbs 1.85 17.09 37.04 0.28 1,977.72 18.50
Balurghat Technologies 8.00 -4.76 60.64 0.07 246.84 14.56 Frontier Informatics 2.90 9.85 11.54 0.04 1,854.00 14.79
Energy Development Co. 7.49 21.20 54.43 0.04 -24.80 35.58 Ravi Kumar Distilleries 6.94 -1.98 -7.34 0.04 1,171.05 16.66
Sintex Plastics Tech. 5.33 15.12 48.47 2.77 -3.39 336.32 Amrapali Industries 4.11 0.00 19.83 0.06 1,044.28 21.13
Ansal Housing 6.10 10.11 46.63 0.14 203.97 36.23 Gold Line Int Finvest 1.80 -9.09 -25.00 0.03 1,027.75 93.78
RattanIndia Power 1.69 -6.63 43.22 4.38 83.19 499.05 Global Offshore Services 8.51 34.65 37.48 0.26 1,019.97 21.05

Top price losers Top volume losers

Housing Dev & Infra 5.78 -9.12 -48.94 4.81 187.62 273.97 Reliance Communications 0.93 17.72 -21.19 37.33 -63.02 257.20
BAG Films & Media 1.80 -10.00 -39.19 1.74 676.73 35.62 Vodafone Idea 4.86 -15.18 -18.86 142.10 -62.52 13,965.4
Cox & Kings 4.33 26.61 -34.49 13.79 125.44 76.45 Toyam Industries 2.84 3.65 2.53 6.75 -49.72 60.35
Reliance Naval & Eng 0.94 23.68 -33.33 15.75 328.01 69.33 FCS Software Solutions 0.27 8.00 -12.90 1.60 -44.01 46.16
Vikas Proppant & Granite 3.06 -8.93 -31.24 1.71 40.01 154.90 Jaypee Infratech 1.38 -6.12 11.29 4.70 -37.16 191.67
Sanwaria Consumer 2.37 -18.84 -30.70 10.05 51.27 174.46 Urja Global 1.92 -11.11 -20.99 1.81 -36.45 97.38
Kwality 1.59 -13.59 -30.57 2.82 250.80 38.38 MTNL 6.01 -1.96 -4.45 1.63 -35.06 378.63
Alok Industries 2.07 -29.59 -30.07 20.64 44.73 285.11 Punj Lloyd 1.15 -3.36 2.68 1.13 -29.77 38.59
Suzlon Energy 3.07 1.66 -29.43 29.31 32.14 1,633.16 Syncom Formulations 0.83 2.47 3.75 3.87 -25.43 64.80
Ballarpur Industries 0.58 -3.33 -23.68 7.99 34.94 75.02 Gennex Laboratories 3.25 -2.69 -3.27 1.01 -21.47 41.11

THE STOCKS HAVE BEEN SELECTED USING THE FOLLOWING FILTERS: PRICE LESS THAN `10, ONE-MONTH AVERAGE VOLUME GREATER THAN OR EQUAL TO 1 LAKH AND MARKET
CAPITALISATION GREATER THAN OR EQUAL TO `10 CRORE. DATA AS ON 14 AUGUST 2019. SOURCE: ETIG DATABASE AND BLOOMBERG.
 pick of the week
22 The Economic Times Wealth September 23-29, 2019

BHEL: Stagger your purchases to gain

Though still plagued by bad news, long-term outlook for heavy electric equipments sector has become very attractive.

B
harat Heavy Electricals Limited (BHEL), the start in thermal plant additions will only help companies
second largest company from the heavy electric like BHEL to bag big orders.
Fundamentals
equipments sector, is a clear victim of the ongo- Despite its bleak medium-term outlook, analysts are get- CONSENSUS
ACTUAL
ESTIMATE
ing trouble in the power sector and the resultant ting bullish on this counter mostly because of its very valu-
2017-18 2018-19 2019-20 2020-21
postponement of new power generation projects. ation, triggered by its continuous price fall. For example,
Revenue (` cr) 27,864.84 29,367.85 32,167.50 32,250.00
No wonder it has reported revenue fall during the last five BHEL has underperformed the Sensex and ET Capital Goods
years, and the first quarter of 2018-19 was no exception. Its Index by 33% each during the last one year (See Chart ). While Ebitda (` cr) 1,968.88 2,137.93 2,378.60 2,237.00
net sales for the quarter fell by 24% y-o-y and 56% q-o-q. Since its price to book value is placed at just 0.54 times, the dividend Net profit (` cr) 434.57 1,010.27 1,401.40 1,390.40
some of the factors for this fall (ie yield is placed at 4.22%. Other valu- EPS (`) 1.18 2.78 3.85 3.99
tight liquidity, land availability ation parameters are also at com-
issues, local agitations against big Analysts’ views fortable levels (eg – EV/Sales is only Valuations DIVIDEND

rs
PBV PE YIELD (%)
projects, etc) are medium term in at just 0.5 times). Though BHEL Bharat Heavy Electricals 0.54 19.61 4.22
nature, these may weigh on future 9 9 is a good long-term bet, investors
ABB India 6.99 50.68 0.36

pe
execution and sales also. Hold need to stagger their purchase in
Buy Siemens 5.31 42.55 0.57
Incremental order inf low to this counter, because the technical
Cummins India 3.67 23.11 2.99
BHEL is also low owing to weak factors are also negative now and
Bharat Electronics 2.76 13.02 3.26
capacity additions happening in therefore, the ongoing downward

pa
the power sector. Though around spiral may continue for some more
16GW of orders is in the pipeline, time. Latest brokerage calls TARGET
the final award is getting delayed- RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
This delay in order inflow has also Select ion Methodolog y: We 19 Sep ’19 Macquarie Neutral 60
pulled down the order book/sales
ratio to 3.6 times as on 30 June,
compared to 4.1 times a year ago.
Though the situation will remain
16
Sell

Domestic power demand is increasing faster than the

_e
pick up the stock that has shown
maximum increase in “consen-
sus analyst rating” in the past
month. Consensus rating is ar-
6 Sep ’19
5 Sep ’19
3 Sep ’19
SBICAP Securities
Emkay
Axis Capital Limited
Buy
Buy
Buy
100
62
70
m
bleak in the medium term, the long- capacity additions, now any kickstart in thermal plant rived at by averaging all analyst 27 Aug ’19 HSBC Buy 60
additions will only help heavy electric equipments
term outlook for the heavy electric recommendations after attribut-
sector to bag big orders. This has made BHEL a
Relative performance 97.32
nj

equipments sector looks bright be- favourite of analysts. ing weights to each of them (5 for SENSEX
cause the domestic power demand strong buy, 4 for buy, 3 for hold, 97.23
1
100 MARKET PRICE: `47.45
is increasing faster than the capacity additions, which even- 2 for sell and 1 for strong sell) and any improvement in
e/

tually will take the country to a power deficit situation in the consensus analyst rating indicates that the analysts are
next five to seven years. The Centre ’s pet projects like 100% getting more bullish on the stock. To make sure that we
rural electrification, introduction of electric vehicles, etc pick only companies with decent analyst coverage, this
.m

are the factors boosting domestic electricity consumption. search will be restricted to stocks with at least 10 ana-
Since this increased demand cannot be met by renewable lysts covering it. You can see similar consensus analyst 63.61
(hydro, solar or wind) energy sources, coal-based power gen- rating changes during the last one week in ETW 50 table. 19 SEP 2018 BHEL ET CAPITAL GOODS 19 SEP 2019
eration capacity has to increase in coming years. Any kick- —Narendra Nathan
//t

Bharat Heavy Electricals compared with ET Capital Goods. Stock price and index values
normalised to a base of 100. Source: ETIG and Bloomberg.
s:
tp
ht

WHAT EXPERTS ADVISE

BUY *STOCK PRICES AS ON 19 SEPTEMBER

RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Remain constructive on Dishman owing to strong visibility on order book, 15 plus late phase 3
Dishman Carbogen HDFC Sec Buy 172 350 104 molecules, expanded development capacity, its work on new molecules and favorable currency.

Second quarter is likely be robust and match or better than fourth quarter of 2018-19 (the best
Inox Leisure Nirmal Bang Buy 298 432 45 ever). This is in sharp contrast to second quarter of 2018-19 which was weakest that year.

Kajaria Ceramics’ revenue muted in Jul-Aug 2019, due to weak consumer sentiment and floods
Kajaria Ceramics Jefferies India Buy 535 720 35 across regions; expect its revenue and margin traction to revive from second half of 2019-20.

Company aims to improve its efficiency which may help it clock higher margin in nomination-based
Bharat Electronics Motilal Oswal Buy 104 127 22 orders. Another plan is to increase proportion of services in revenue.

Demerger of consumer business provides base business of Tata Chem at `301 / share. Increasing
Tata Chem ICICI Direct Buy 568 690 22 contribution from nutrition is also expected to drive group return ratios and thereby valuations.

Be positive on Blue Star due to improving margin profile, healthy balance sheet, improving return
Blue Star Reliance Sec Buy 720 829 15 ratios and improving market share.

SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

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

Downgraded to 'reduce' because divestment of Ankleswar assets will impact 2020 earnings (ie
Sanofi India IDBI Cap Reduce 5,666 5,470 -3 cross transfer of certain products from Ankleshwar and Goa may affect operations).
 QA
your queries
The Economic Times Wealth September 23-29, 2019 23

I bought a single premium Ulip in
November 2013 for `10 lakh. The
sum assured was `12.50 lakh. I
surrendered the policy in July
2019 and received `15.40 lakh as
surrender value (Less TDS @ 1 %).
Do I have to pay tax on the entire
maturity proceeds? I have not
claimed Sec 80 (C) benefits in the
year of investment. I am in the
30% tax slab.
&
I am 50 and have taken early
retirement. I have `60 lakh invested
in the stock market and I will be
getting `1.5 crore in retirement
benefits. I want to know how I should Since the
invest this corpus to generate a `2.1 crore
For policies monthly post-tax income of `1.1 lakh. corpus will
purchased Our panel of experts will I live in my own house. Both my be catering
after 1
April 2012,
answer questions related to spouse and I have medical and term
cover. I have property worth `65 lakh
to your
if the any aspect of personal to take care of my teenage daughter’s
monthly
expenses,
premium
paid on the
finance. If you have a query, education and marriage expenses. I
pay insurance premium of capital

rs
policy is less than 10% of the sum assured, the mail it to us right away. approximately `1 lakh per annum. preservation
is primary.
amount received on maturity is exempt from
You require a
tax. This exemption is allowed under Section 10

pe
post-tax monthly income of around `1.1 lakh per
(10D) of the Income Tax Act. In your case, since
the premium is more than 10% of the sum
QUESTION OF THE WEEK month, which means a yearly sum of `13.2 lakh.
This translates to pre-tax returns of around 9%,
assured, the maturity proceeds will be taxable.
which is hard to find in the low-risk product basket.

pa
You will have to declare the net maturity
My father will retire from his Given that you are 50, you are ineligible for
proceeds (total maturity proceeds less sum of
all premiums paid) in your tax return. This
government job next December. government schemes for pensioners. One of the
He will get around `60 lakh in best ways for you to manage your monthly income
should be added to your income under the head
would be to invest your corpus in liquid funds or
‘Income from other sources’
and charged to tax at your
applicable slab rate.
_e
retiral benefits. How should he
invest this money to generate a
monthly income of `30,000,
while keeping the principal
ultra-short duration funds from two different fund
houses and opt for a systematic withdrawal plan
(SWP). Such funds can earn around 7% pre-tax
m
returns and the monthly amount can be fixed as per
intact? He also wants to build an your need. Taking the SWP route will offer you three
Shubham Agrawal emergency fund and invest in benefits: a) it will reduce your tax liability since the
nj

Senior Taxation Advisor, mutual funds. Please advise. principal portion of withdrawal does not attract any
TaxFile.in tax; b) initially the capital gains will be taxed as per
your tax slab and after three years, the same will be
e/

A senior citizen’s portfolio should carry

low to medium risk and yield assured in- taxed at 20% with indexation; and c) if you set your
come, along with capital protection. The monthly withdrawal lesser than interest earned,
your capital will appreciate alongside. I would
.m

target to generate `30,000 a month is

I am 82. I want to sell a flat achievable by investing in a mix of finan- recommend that you identify some expenses which
for `20 lakh, which I bought cial instruments. He should invest up to can be curtailed to trim down your monthly
more than three decades ago `15 lakh in the Senior Citizen’s Saving expenditure at this stage so that your
//t

for less than `2 lakh. What
will be the tax implications?
Scheme (SCSS). It is the safest investment capital invested can grow to cater to
Since the house inflation going forward.
option for retirees and offers 8.6% per an-
was purchased
num, payable quarterly. He can contribute
s:

three decades
`4.5 lakh in the Post Office Monthly In-
ago, the gain will be considered as long term Prableen Bajpai
come Scheme at 7.6 % per annum. As you
capital gains (LTCG). You can consider the Founder, Managing Partner,
tp

want to keep the principal intact, it is ad- FinFix Research & Analytics
market value of the property as on 1 April
visable to save `15.5 lakh in Senior Citizen
2001 as its cost, which would be further
Fixed Deposit and earn 7.3% to 7.5%. Also,
indexed by applying the index for 2019-20.
ht

invest `10 lakh in tax-free bonds. The bal-

The cost inflation index notified recently for
ance `15 lakh can be invested in debt and
2019-20 is 289. So for example, if the market I am 70 and my total income
liquid mutual funds with a horizon of three
value of the property as on 1 April 2001 was from all sources in a financial
years or more. You can invest `5 lakh each
`5 lakh, the indexed cost would be year is less than `5 lakh. I earn
in Franklin India Short Term Income Plan, an interest of `15,000 a year
`14.45 lakh and the resultant
Aditya Birla Sun Life Liquid Fund, and SBI from a NBFC FD. Do I need to pay
LTCG would be taxed @ 20%.
Magnum Ultra Short Duration Fund. The income tax on this interest?
returns will be tax efficient and would of- As a resident
fer liquidity for emergency. senior citizen, you
Amit Maheshwari Retirees should stay away are eligible for a basic exemption of `3 lakh plus a tax
Partner, Ashok Maheshwary rebate under Section 87A on taxable income up to `5
and Associates
from equity funds
which are highly vola- lakh for the financial year 2019-20. Considering you
tile in nature. qualify to be a resident for tax purposes, you will not
be liable to pay income tax as your
I invest `43,000 in MFs through SIPs. I Raj Khosla taxable income from all sources
put `8,000 each in Aditya BSL Frontline Founder and Managing including interest on FDs is below
Equity and Franklin India Bluechip, Director, Mymoneymantra.com `5 lakh.
`5,000 each in Mirae Large Cap and L&T
Equity, `6,000 each in Franklin India
Prima and L&T India Value and `5,000 Homi Mistry
in Franklin India Smaller Companies. Partner, Deloitte
Am I on the right track? I want to invest A 49% allocation in the large-cap category is excessive. It can lead to Haskins & Sells
another `30,000 a month. concentration risk to the overall portfolio. Consider shifting from
Franklin India Bluechip Fund to SBI Magnum Multi Cap Fund. For
the additional `30,000, consider investing `10,000 each in Axis
Small Cap & Kotak Emerging Equity Scheme. The remaining `10,000 can be divided equally among Ask our experts
SBI Magnum Multi Cap and the existing L&T Equity Fund. Have a question for the experts?
etwealth@timesgroup.com
Rahul Parikh, CEO, Bajaj Capital
 technology check
24 The Economic Times Wealth September 23-29, 2019
ZEBRONICS
PEACE
Even though these are the
cheapest, the Zebronics true
wireless earbuds impress with
their overall performance. They
offer secure comfortable fit and are
water-resistant. Its charging case is
capable of recharging the earbuds
three times, giving you a total of
10 hours+ usage. You get a multi-
function button on both earbuds
for control. It can work in paired
or individual mode and also has
voice assistant support. The glossy
finish on the charging case is a bit
of an issue but for the price we can
ignore this.
`3,799
.m
//t
NOISE SHOTS
X3 BASS
s:
The Shots X3 Bass is aimed at users who
tp
demand deep thumping bass from their
headphones. The earbuds are compact in size
so they don’t stick out too much during use
ht
plus they come in a variety of colours. The
charging case is compact, but the glossy finish
does pick up scratches after a few weeks of
use. Keep in mind that it has a 1,500mAh
battery, so the case feels heavy but you get
the benefit of 24-hour battery life.
`4,999
FLYBOT
BEAT
Flybot is a new entrant and
a relatively unknown brand
in this space but their budget
`2,599 earbuds are great. Both the
earbuds and the charging case
`2,219 are compact making it easier
to carry along. Also, these
are amongst the cheapest
to offer Bluetooth 5.0
connectivity. Audio quality is
great—bass heavy output with
good clarity. You get voice
rs
assistant support, IP X5 sweat
resistance, secure fit and a
battery life of more than 24
pe
hours.
pa
Best true _e
wireless
m
earbuds on
nj
e/
`4,490
a budget
Apple’s Airpods are credited with JABEES
FIREFLY
ushering in the era of true wireless
earbuds. Initially such headphones Another new brand in the market but it brings
tonnes of features on a budget. You get USB
were only available for a premium, Type-C port, Bluetooth 5.0 connectivity,
wireless charging support as well as voice
but now there are multiple choices in assistant support. The earbuds feature in-ear
hooks for a secure fit and IP X5 certified for
less than `6,000. Karan Bajaj lists water resistance. Audio quality is great, thanks
to the 6mm graphene composite membrane in
some of the best options. the earbuds. You get a battery life of 14 hours
and it also has fast charge support—10 minutes
of charge gives you two hours' playback.
BLAUPUNKT NOISE SHOTS
BTW01 X5 CHARGE `4,999
Blaupunkt is a known name when it Noise is the only brand to offer multiple
comes to car audio system but now options in the sub-`5,000 segment for
the brand has also started offering true wireless earbuds. The X5 charge is
headphones. The BTW01 is the true an improved version of the X3 Bass and
wireless earbud from the German brand comes with a high capacity charging
and the earbuds have an angled design case. The case also has a full size USB
for a comfortable yet secure fit. There port using which you can charge your
are touch controls on the earbuds which phone in an emergency. The earbuds
give you easy control for volume, call are IPX5 sweat-proof, come with
accept and voice assistant. The earbuds Bluetooth 5.0 connectivity. You get
have 75mAh battery giving six hours five hours playback on a single charge
of playback on each charge. You can and the case is capable of charging the
get over 24 hours of playback using the earbuds up to 10 times, which means
provided charging case. almost 50 hours of playback.
The prices mentioned are taken from e-commerce websites and are subject to change
 tax optimiser
The Economic Times Wealth September 23-29, 2019 25

Opt for NPS to save `50k tax

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

D
elhi-based doctor
Ashish Ranjan pays a
high tax even though
his salary is quite tax
friendly. Taxspanner
INCOME
estimates that Ranjan can reduce FROM EMPLOYER

rs
his tax by almost `50,000 if he opts
for the NPS benefit given by his

pe
company and buys medical insur- ACTIONS
ance for himself and his family. INCOME HEAD CURRENT SUGGESTED TO TAKE
Saving for retirement is critical
for Ranjan because his contribu- Basic salary 13,01,520 13,01,520

pa
tion to the Provident Fund is not Reduce this
House rent allowance 11,10,720 9,80,568 taxable portion of
too big. Ranjan invests in the NPS
the pay package.
under Sec 80CCD(1b) but should
increase this by opting for the NPS Telephone and internet 8,000 8,000
benefit under Section 80CCD(2d).
Up to 10% of the basic salary put in
NPS is tax deductible. If his compa-
ny puts `10,846 (10% of his basic sal-
Newspapers and periodicals

Entertainment allowance
_e 12,000

60,000
12,000

60,000
m
ary) in NPS every month, his tax Driver salary 9,600 9,600
will reduce by about `40,600. But
nj

this will also reduce his monthly Food coupons 26,400 26,400
take-home pay by about `7,500.
Ranjan should opt for an aggres- Training 60,000 60,000
e/

sive allocation that allocates the

Employer's contribution to Provident
maximum corpus to equity funds. 21,600 21,600
Fund
Ranjan’s wife is a government
.m

employee and the family is fully Contribution to NPS under Sec Up to 10% of basic
0 1,30,152
covered for medical expenses. 80CCD(2d) salary put in NPS is
tax deductible.
Even so, Ranjan should consider TOTAL 26,09,840 26,09,840
taking a critical illness cover for
//t

himself and the family. A premium

of `25,000 will reduce his tax by
INCOME FROM OTHER SOURCES
s:

roughly `7,800.
He should also take sufficient
life insurance cover. A term insur- Interest income 2,600 0 Shift to debt funds
tp

ance cover of `2 crore will cost to avoid tax on FD

Capital gains 0 0 income.
him about `20,000 a year. Another
minor tax break is possible if he
ht

avoids bank deposits and switches

Rental income 0 0
to debt mutual funds. Gains from TOTAL 2,600 0
debt funds are taxed at a lower rate
if the investment tenure exceeds All figures are in `
three years.

Denotes suggestion to increase Denotes suggestion to reduce

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

Provident Fund 21,600 21,600

Home loan principal 1,20,000 1,20,000
Life insurance 0 12,000
Buy term cover
of `2 crore for
Ashish Ranjan’s tax TOTAL TAX SAVED WRITE
yourself. TO US
`49,219
TAX ON TAX ON
Tuition fees 72,000 72,000 TAX ON
SALARY
OTHER
INCOME
CAPITAL
GAINS
FOR HELP
NPS under Sec 80CCD(1b) 50,000 50,000
PER YEAR Paying too much
TOTAL ADMISSIBLE 2,00,000 2,00,000 CURRENT tax? Write to us
at etwealth@
`4,35,939 `811 0
Other deductions TAX RATIO
(Total tax as % of annual income)
timesgroup.com with
‘Optimise my tax’
EXEMPTION OR CURRENT SUGGESTED `4,36,750 as the subject. Our
DEDUCTION (`) (`) EXISTING SUGGESTED experts will tell you
(`) (`) how to reduce your
Home loan interest 2,00,000 2,00,000 SUGGESTED tax by rejigging your

Medical insurance 0 25,000

Buy critical
`3,87,531 `0 0 16.7% 14.8% pay and investments.
illness cover for
self and family.
TOTAL 2,00,000 2,25,000 `3,87,531
 your feedback & more...
26 The Economic Times Wealth September 23-29, 2019

Readers’ response, online and in print, to ET Wealth stories has been enlightening.
We pick some that add information and perspective to our articles from previous issues.
This is in reference to the cover The common tendency is to ignore the
story, ‘Active or passive: Which efforts the individual concerned put in
fund strategy works better?’ The to earn that windfall. You notice a
point about underperformers
causing damage to the index was
Stay away from similar attitude in those who have
inherited family wealth. This wealth
well illustrated through the chart.
Investors should heed the data which funds now created by the previous generation by
straightforward means and maintained
shows very clearly how stocks give This refers to the cover story, or increased through the efforts of the
muted returns after inclusion in the ‘Active or passive: Which fund inheritors needs to be preserved and
index. strategy works better?’ If the invested so that it can grow.
Balaji S. Vijay P. Srinivasan
economy as a whole does not
perform, there is no point in
The article, ‘How to work the new loan investing in equity mutual funds, I look forward to the Wealth Whines
rate landscape’, was well written. section. About the article, ‘Should you take
whether passive or active.

rs
Banks earn from net interest margins a home loan jointly with your spouse?’ I
Vilas Save
and fees. World over, banks and strongly feel it is not a good idea. Should
insurance companies are run by the the couple split, the money and asset

pe
rules and rarely fail. They do go sharing can become messy, especially if
through phases when they encounter one spouse bore the EMI burden.
headwinds, but even then they are one Gauri Gupta
of the last institutions to collapse when insurance programme. This will linked to staying fit and driving safely was

pa
an economy runs into trouble. ensure people pay their taxes. If quality very informative and useful. The initiatives This refers to the article, ‘An area close
Manohar Lal healthcare is made available at a nominal by the insurance companies are akin to to work and play’. This was a very well-
cost by the government, people will at least indirect compensation for positive summarised piece on the Mumbai
This refers to the article, ‘Stay know their money is being used for a good behaviour. suburb. Metro has improved
fit, drive safe to keep insurance
premiums low’. The government
should make efforts to bring every
citizen under one common health
welfare programme.
K.K.

The article on lower insurance premium

_e
Sanjeev Dawar

The article by Uma Shashikant, ‘Spend

that windfall wisely’, was well written.
connectivity but there are very few
options available for accommodation in
the area.
Rajeev Mahajan
m
nj

REALTY A well-connected micro market

e/

Good social infrastructure is the key draw of this south Kolkata suburb.
HOT SPOT
.m

HIGHLIGHTS
Sangali Rabindrapally Consumer preference by
Garia-
Keya Bagan
Colony
New Raipur budget segment (`)
Phase-1

Patuli
Aurobindo
Residential micro-market, well-connected with prominent
//t

Ashram Baishnabghata 20-30 lakh

Naktala Patuli TWP areas and commercial centres in Kolkata 15%
30-40 lakh
32%
KOLKATA Patuli Sound social infrastructure comprising schools, colleges, 11% 40-50 lakh
s:

South End
Upanagari hospitals, restaurants and shopping complexes 20%
10-20 lakh
Bansdroni Block H
13%
Garden
PRICE RANGE Block F Key hospitals are Rabindranath Tagore International 29% Others
Bidhanpally Kanungo Park
tp

`2,900-5,800 Institute of Cardiac Sciences, IRIS and Peerless Hospital

Northern Park Sreerampur Garia
per sq ft Sonali Park
Popular shopping malls well-connected with the area Consumer preference
NG Park
Demand: MID Barhans Kayalpara include Metropolis Mall and South City Mall by BHK
ht

Supply: MID South Roy Nathpara 1%

Baidyapara
Nagar
Purbapara Garia Place
Good overall connectivity through EM Bypass Road, Kolkata
Ga

D Block Ganguly Local Rail and Metro Rail Network 2 BHK

Bijan Kanan Prantika Para 11%
r
ia

Saradamani
M

Baliya 3 BHK
Park
ain

Jainal Pally Sarada Park

Purbasa LOCALITY SNAPSHOT 1 BHK
Rd

33% 55%
4 BHK
Distance from: Schools 15+
20+ Hospitals
Hospitals12+
16+ Restaurants
Restaurants10+
20+

Airport: 25
38 km Railway
Railway
station:
station:
15 km
45 km NH-34: 0 km Banks 14+
20+ Grocery
GroceryStores
Stores12+
20+ Petrol
PetrolPumps
Pumps10+
9+
Consumer preference by
VALUES covered area (sq ft)
PROPERTIES AVAILABLE SECTORS Price Rental 2%
(`/sq ft) (`/month) 9% 750-1,000
1 BHK: 490 (sq ft) 1,000-1,250
3 BHK: 1,220 Garia 2,900-4,900 10,000-16,500 17%
17 lakh (avg) 45% 500-750
` (sq ft) 1,250-1,500
Bansdroni 3,000-4,800 9,800-17,000 27%
53
Others

2 BHK: 860 (sq ft) ` lakh

Naktala 3,200-5,400 10,700-18,900
(avg)
` 33 lakh (avg) Patuli 3,600-5,800 12,000-19,100
In dia’s No. 1 P ropert y Sit e

The Economic Times Wealth is available at an invitation price of `8/issue. To book your copy, contact your newspaper vendor or call 022-39898090; Email: crm.mumbai@timesgroup.com; SMS ETWS to 58888

The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data
before publication. In spite of 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 R.Krishnamurthy at The Times of India Building, Dr. D.N. Road, Mumbai 400001. Tel. No.: (022) 6635 3535,
2273 3535. Fax: (022) 2273 2544 and printed by him at (1) The Times of India Suburban Press, Akurli Road, Western Express Highway, Kandivli (E), Mumbai-400101 . Tel. No.:
(022) 28872324, 28872931, Fax: (022) 28874231. (2) The Times of India Print City, Plot No.4, T.T.C. Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai-400708. Tel No.:
(022) 2760 9999, Fax: (022) 2760 5275.
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.: MAHENG/2014/57046. VOLUME 06 NO. 38
THE ECONOMIC TIMES How long
is long
term?
P2
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | September 23-29, 2019 | 28 pages | `8

rs
pe
pa
_e
m
nj
e/
.m
//t
s:
tp
ht
ht
tp
s:
//t
.m
e/
nj
m
_e
pa
pe
rs