ET Wealth 23-29, Dec 2024

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THE ECONOMIC TIMES ARE FINANCIAL

CALCULATORS
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www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 14 No. 52 | December 23-29, 2024 | 24 pages | `8
15
Budget
ideas
As the Finance Ministry starts
work on the 2025 Budget,
ET Wealth reaches out to
experts for suggestions. P2
HOW NOT “AS A NATION,

HOW TO
TO GET WE HAVE ONLY
AVOID
FOOLED JUST BEGUN TO
FINANCIAL
BY STOCK UNLOCK OUR
ABUSE
PRICES POTENTIAL”
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cover story
02 The Economic Times Wealth December 23-29, 2024
15
Budget ideas As the Finance Ministry starts work on the 2025 Budget,
ET Wealth reaches out to experts for suggestions.
PHOTOS: GETTY IMAGES
By Sanket Dhanorkar, Riju Mehta needed to push people towards a scheme

and Babar Zaidi that can help them retire in comfort. Make NPS more attractive to investors
A
One key suggestion is the reduction
s the Finance Minister and in the TCS on foreign remittances. Two India faces a looming and middle-income many investors away
her team start crafting the years ago, this was hiked from 5% to 20%, retirement crisis, earners. The deduc- from the pension
Union Budget 2025, anticipa- making it very difficult for those wanting with millions of indi- tion limit under scheme. A systematic
tion is building across sectors. to invest, spend or send money abroad. 1 viduals financially Section 80CCD(2) withdrawal plan that
Personal finance enthusiasts The TCS can be claimed as a refund by unprepared for retire- should also be hiked. replaces or comple-
and taxpayers alike are curious about filing tax returns. The rule was intro- ment. The NPS has Under the old tax re- ments the annuity
what the Budget proposals will mean duced to ensure that people sending (or the potential to ad- gime, this limit is 10% would allow retirees
for their pockets. For this week’s cover spending) money overseas were also fil- dress this gap, but ad- of the basic salary. to access their corpus
story, we reached out to industry experts, ing their tax returns. While the objective ditional tax benefits This year’s Budget in a structured man-
tax professionals and financial advis- seems fair, there is no logic for such re- are necessary to make had increased it to ner while avoiding
ers to know what they want to see in the strictions on capital flows in a globalised it more appealing. 14% of the basic salary low returns and high
Finance Bill 2025. economy. The TCS should be reduced to The Budget should for those opting for the taxation associated
Some of these expectations, such as a 5-10% of the amount being sent abroad, if hike the deduction new tax regime. This with annuities.
separate deduction for life insurance, not completely removed. limit under Section limit should be hiked Lastly, the budget
lower tax on annuities and higher tax At the same time, the government’s 80CCD(1B) from to 20% of the basic sal- should also provide
exemption for senior citizens, are long- focus on fiscal consolidation leaves little `50,000 to `1 lakh. ary. This would make some relief to tax on
standing demands and are unlikely to be room for tax benefits that will result in This would encourage the NPS more appeal- annuity income to
fulfilled. However, North Block may find lower revenue collections. One estimate higher investments by ing to private sector increase post-retire-
some other suggestions worth consider- says that every `10,000 increase in the taxpayers and support employees. ment income.
ing. For instance, one expert has sug- basic tax exemption limit burns a `3,000 long-term retirement The mandatory
gested that taxpayers be rewarded with crore hole in the government’s coffers. savings, especially purchase of annu-
a group life insurance linked to the taxes The government has targeted a gross fis- among small savers ity under NPS keeps
they pay. As little as 1% of the tax paid by cal deficit of 4.9% of the GDP for 2024-25. It
an individual can go into paying the pre- was 5.6% of the GDP in the previous year.
mium of a group insurance cover equal to Experts have also suggested simplifi-
five times the tax paid. cation of tax structures and fewer ambi-
Another expert has suggested steps guities in tax laws. ET Wealth view
that could make the NPS more attractive Our cover story analyses these sugges- Over the years, the utility of the NPS has grown
manifold owing to several improvements in its R AJANI TANDALE
to investors. The ultra low-cost scheme tions and explores their potential impact SENIOR VICE-
features and benefits. However, more needs to be
has everything that one looks for in a on your finances. Dive into the story for done to make it the preferred retirement savings PRESIDENT, MUTUAL
pension plan, but it is still not the pre- expert perspectives and a better under- FUND, 1 FINANCE
vehicle. Hiking the tax deduction limit can be an
ferred investment vehicle for retirement standing of what may shape your finan- effective way to push people to invest in the NPS.
planning. Perhaps more tax benefits are cial year ahead.
cover story
The Economic Times Wealth December 23-29, 2024 03
More incentives for term insurance Reward taxpayers with life

2 Term insurance is by The Budget should offer employers to include
3 cover linked to taxes paid
far the best form of life a separate tax deduc- group term insurance
cover because it offers tion for term insurance plans as part of their Indians are grossly linked to the tax paid by the
a large cover at a low premiums. This will en- employee benefit pack- underinsured, with individual. So, if a person
cost. Currently, term courage more people to age. This will ensure insurance penetration at has paid `10 lakh in tax, he
insurance premiums prioritise life insurance that even individuals 4% of the GDP, compared should be eligible for a cover
are included in the `1.5 for their family’s finan- who may not purchase to the global average of 7%. of `50 lakh. That would re-
lakh deduction limit cial security. term insurance policies During the Covid mayhem, quire a premium of just 1%
under Section 80C. This There should also be on their own have a basic thousands of families were (`10,000) of the tax paid.
section has too many incentives for employers life cover through their pushed into penury when
investment and savings to offer group term in- workplace. sole breadwinners died. The
options, including the surance to their employ- Budget should fix this by of-
Provident Fund, PPF, ees. Targeted incentives, fering group life insurance
ELSS and home loan such as tax benefits or cover. Unlike the Ayushman
principal repayment. subsidies, will motivate Bharat scheme that provides
free healthcare coverage to
economically weaker sec-
tions of society, this scheme
ET Wealth view should cover individuals
SUDHIR K AUSHIK
Term insurance should be a priority for any individual with who are helping build the
CEO, TA XSPANNER.COM
dependents, but often gets ignored in the maze of other tax saving NEHAL MOTA nation by paying taxes. The
options under Section 80C. The government is giving precedence to CO-FOUNDER,
extent of the cover can be
the new tax regime, so a separate deduction for term life insurance FINNOVATE
seems unlikely.
Do away with double ET Wealth

taxation of annuities view
4 Annuities are an important finan- Annuity payouts
cial tool for providing regular in- are added to income
come to retirees. But annuities are and taxed at the slab
rate. A long-standing
taxed doubly—once at the time of demand by annuity
investment and again at the payout distributors, reducing
stage. Tax relief on the principal the tax on annuities
component of annuity income will certainly make
them more attractive.
could encourage people to buy an- But it will burn a big
nuity products, stimulate the mar- hole in government
ket and improve financial security revenues and may not
in the country. Also, incentives SUMIT R AI be viable. ET Wealth view
should be announced for women, MD & CEO, EDELWEISS Honest taxpayers who declare their income and pay due taxes deserve
LIFE INSUR ANCE more than the commendation certificates mailed by the Finance
who account for about a third of life
Ministry. A group life insurance cover linked to the tax paid by the
insurance buyers in India. individual will be a more meaningful way to acknowledge their effort.
Reduce TCS on foreign

remittances Hike tax exemption for senior citizens
5 Two years ago, the gov- The previous Budget 6
ernment enhanced the had given some relief to After they stop working, senior
TCS on foreign remit- salaried taxpayers by citizens are totally dependent on the
tances from 5% to 20%. allowing them to adjust income from their savings. Many
Anybody investing, send- their tax liability against incomes, such as dividends, have now
ing or spending more the TCS. Other taxpay- come under the tax net, which eats
than `7 lakh abroad has ers get no such option. into the overall returns of the inves-
to shell out 20% more. In a globalised economy, tor. For senior citizens, there is an ex-
Though this amount can there is no logic for such emption of `50,000 on the interest they
be claimed as a refund restrictions on the flow earn, but it does not fully compensate
while filing tax returns, of capital. The TCS on the tax on other incomes. The basic
the money gets locked remittances should be exemption for senior citizens should
for several months. reduced to 5-10% of the be hiked to `4 lakh and the exemp-
amount being remitted. tion under Section 80TTB should be
increased to at least `1 lakh. This will
provide some cushion to senior citi-
zens in their sunset years.
ET Wealth view
At 20% of the amount, the TCS
is too high and needs to be
reviewed. Reducing this to 5%
will not only ease the burden ET Wealth view R AJESH K.
R ATTAN
for taxpayers, but also make
Though senior citizens have received many tax benefits and other RE TIRED
capital account convertibility
K AR AN BATR A incentives in recent years, they deserve a higher basic exemption and TA XPAYER,
more meaningful.
FOUNDER, an increase in tax exemption on interest income. These measures will 76 YE AR S
THE CHARTERED CLUB help the grey population fight inflation to some extent.
cover story
Give tax relief to Deduction of health cover premium

ET Wealth
7 crypto investors 8 Medical insurance costs have gone up in recent years and view
the GST on premiums only makes matters worse. The high If the GST Council
Indian investors are missing the cost of medical insurance premiums deters many from announces a cut in
splendid opportunity offered by securing insurance, leaving a significant portion of the the 18% GST on health
cryptocurrencies because of the population without adequate coverage. Reducing GST on insurance premiums,
the cost of medical
high tax introduced last year. The health insurance premiums would make it more afforda-
insurance would come
Budget should reduce the tax on ble. If such a reduction is not feasible, alternative measures down considerably.
virtual digital assets (VDA) below must be considered. For instance, a complete tax deduction TAPAN SINGHEL Full tax deduction for
30% and cut the TDS on all trans- on premiums paid towards health insurance under Section MD & CEO, BA JA J the premium would
ALLIANZ GENER AL be a bigger incentive
actions from 1% to 0.01%. It is 80D under the old tax regime could encourage a wider adop-
INSUR ANCE for buying adequate
equally important to offer a set-off tion without impacting the government’s GST collection. health insurance.
and carry-forward provision for
losses in VDA transactions. These
reforms are necessary to create
a level playing field for crypto in-
vestors and traders. Lower taxes
Roll back TDS on interest from listed bonds
will also boost compliance and The previous Budget introduced a 10% the entire amount even though he may
prevent investors from moving 9 TDS on coupon payments from listed have bought the bond in the secondary
to exchanges abroad. India could bonds. While the intention behind this market and had already paid accrued
lead the global Web3 and block- policy was to ensure greater tax compli- interest to the seller.
chain renaissance if a fair and ance, it has created challenges for fixed- Senior citizens are exempt from TDS
friendly tax regime is put in place. income investors, particularly retail and if they submit Form 15G or 15H, but the
individual investors. process is not always smooth. This can
Many are unaware of the way bond lead to unintentional deductions and
investments work, particularly when require time-consuming refund claims,
it comes to timing coupon payments. which adds unnecessary complications VISHAL GOENK A
Transactions done between two coupon for those relying on regular coupon in- CO-FOUNDER,
AVINASH SHEKHAR INDIABONDS.COM
payments have an adverse effect on cash come. A rollback of the TDS provision on
CO-FOUNDER & CEO,
PI42
flows and YTM (yield to maturity) calcu- coupon payments would eliminate cash-
lations. The holder, on interest payment flow inefficiencies and administrative
date, gets the coupon on the entire inter- hurdles for investors, while preserving
est period and is subject to 10% TDS on the predictability of bond returns.
ET Wealth view
The high tax and stiff rules were meant to
discourage investments in cryptos. There is no ET Wealth view
separate regulator for crypto investments in TDS is applicable on income from fixed deposits and dividends. So
India. The Budget should name a regulator to keeping bonds out of the TDS ambit does not allow a level playing
ensure that investors are protected. field. Given that the government is keen to rationalise the tax system
and remove anomalies, the TDS may not be rolled back.
Don’t remove the Rationalise

10 old tax regime cost of equity Tax deduction for house
11 investments 12 maintenance charges
There is a growing concern that the govern-
ment wants to do away with the old tax With a growing section of the middle In most urban areas, the mainte-
regime altogether. While the new regime class taking to equities for wealth nance of residential buildings
has wider tax slabs and lower rates, there creation, there is merit in simplify- is undertaken by the housing
are very few deductions and exemptions. ing the overall tax and cost struc- society, federation, company
The taxpayers who have planned their ture for equity investments. There or a common body. In many
long-term investments and expenses after are multiple cost structures levied cases, this can be a substantial
factoring in the tax benefits will lose out on each equity transaction, includ- expense, but is not allowed as
under the new regime. The old regime ing exchange transaction charges, a deduction. There is a spate of R AJ L AKHOTIA
should continue as before and taxpayers STT brokerage, stamp duty and litigation in the country on ac- MANAGING PARTNER,
should be free to make a choice. GST on total charges. A review of all count of this expense. The con- L ABH & A SSOCIATES
these overhead costs and simplifica- tribution towards maintenance
tion can lead to wider participation, charges paid to any of these bod-
enabling wealth creation without ies should be allowed as deduc-
RISHI AHUJA
FINANCE impacting the overall tax collection. tion against rental income to ET Wealth
PROFESSIONAL, ensure that only real income is view
DELHI Despite 30%
subjected to tax. Amending the
law and allowing a deduction standard
deduction for
for the same would lead to con- repairs and
DINESH ROHIR A siderable reduction in litigation maintenance, the
FOUNDER, and relief to homeowners. total maintenance
5NANCE.COM contribution
in apartment
buildings often
exceeds this
ET Wealth view limit. Allowing
Last year, the new tax regime was made the default ET Wealth view the deduction
of maintenance
option. This year, it increased the standard deduction
There is a large-scale public participation charges would
to `75,000. While the government should make the in capital markets. The existing cost provide a realistic
new regime more attractive, it should not remove structure is not hampering it in any way, estimate of real
the option to stay with the old regime. so a change is unlikely. rental income.
cover story
Exempt TDS payers from filing tax returns Simplify capital

13 Salaried individuals are tries, including the UK, This would streamline 14 gains taxes further
required to file their tax employees don’t have to compliance for millions of The government wants to simplify the tax struc-
returns even if TDS has file tax returns if their salaried taxpayers, free- ture and, hence, has made capital gains tax uni-
been deducted on their employer deducts tax ing up time and resources form across various asset classes. Unfortunately,
salary. This mandatory from their salary. This for both individuals and due to legacy issues, a lot of complexity still ex-
filing of ITR creates an reduces administrative the tax department. ists in the form of purchase dates of debt funds,
additional compliance work for the employee international funds and even gold funds. These
for employees, particu- and eases the burden on inconsistencies have created a lot of confusion in
larly when no additional the tax department. The the minds of retail investors.
income or complex deduc- Budget should exempt em- The capital gains tax structure can be simpli-
tions are involved. In ployees from filing ITR if fied further by converging tax rates for different
many developed coun- TDS is already deducted. sub-asset classes. For example, international
equities at par with domestic equities, debt funds
at par with gold funds, and gold funds at par with
ET Wealth view gold ETFs. Also, unless there is a compelling rea-
son, actions should not be either
Exemption from filing tax returns could lead to confusion over the
eligibility criteria. Most salaried people also have income from other retrospective or deferred too
NISHANT KHEMANI
sources where TDS may not fully cover the due tax. Capital gains are MANAGING PARTNER, far in the future. The taxa-
also not subjected to TDS. Exemption is possible only if the individual SATURN CONSULTING tion of gold funds, for in-
declares all incomes to the employer and TDS is correctly deducted. GROUP stance, comes into effect
only from 1 April 2025.
Extend study loan

deduction to 12 years ET Wealth
VIVEK BANK A
15 CO-FOUNDER,
Given the rising cost of higher studies, edu- view GOALTELLER
cation loans have become necessary, but The ticket size
there is no tax deduction under the new of education
tax regime. Even under the old regime, the loans has risen in
deduction under Section 80E is available recent years as ET Wealth view
many students
only for eight years. This 8-year window The government has
are going for
is sufficient for small loans, but the repay- taken significant steps to
foreign education.
streamline the capital gains
ment term will have to be longer to make Extending the
tax regime. However, certain
it affordable for new earners. The Budget UMESH JETHANI deduction window
inconsistencies remain.
CHARTERED to 15 years will
should include deduction for education ACCOUNTANT
Addressing these will help
make repayment
loan interest under the new regime and ex- rationalise the tax system
easier for them.
further.
tend the claim period to at least 12 years.
Lavish weddings under taxman’s lens

The income tax department is investigating `7,500 crore worth of unaccounted cash spent on ceremonies.
By Rashhmi Rajput and of money trail in foreign payments which have to be paid through
Sugata Ghosh destination weddings cheques and banking channels. Initial
where chartered flights clues to the current investigation were
O
n the road to happily ever after, are booked to ferry guests obtained from some of the fictitious bills
the taxman can be a nasty bump. to exotic locations. The to support such transactions.
India’s opulent weddings, com- tax department would These operators raise bills with ho-
plete with Bollywood stars and celebrity compare the amount of- tels and caterers against cash received
performers, where crores are splurged ficially spent vis-a-vis from the wedding planners. These bills
to make the occasions unforgettable, are number of guests and are produced by GST number holding
under the lens of the tax department. the scale of the event. entities who then claim ineligible input
Tax raids are underway on close to 20 Catering firms are also tax credit on the bills, said the tax of-
top wedding planners in Jaipur amid being questioned. ficer. The elaborate framework is also a
suspicions that about `7,500 crore of “People at times do not glimpse into the undisclosed wealth and
unaccounted cash has been blown up keep records of amounts large amounts of cash that are blown up
in the last one year to host extravagant spent on such big fat wed- in the non-metros.
marriage ceremonies. Mule accounts, dings. There could be violations of tax “The modus operandi is that luxury wed- There are greater complexities
hawala agents, and shadowy entry op- and forex regulations. Such overseas ding clients get in touch with high-profile involved in foreign destination wed-
erators generating fake bills, often in destination weddings can also draw the event planners, who in turn contact the dings, thanks to the strict forex rules.
cahoots with partners in Hyderabad and attention of the Enforcement Directorate event planners at Rajasthan who plan the Interestingly, a few months ago, while
Bengaluru, come together in a trade that if it is suspected that the money trans- wedding in coordination with the luxury processing the remittance for a group
flourishes on rich Indians’ obsession ferred abroad is well over the limits of hotels, tent houses, caterers, florists and hotel booking abroad, a private bank
with spectacular weddings. the RBI’s liberalised remittance scheme celebrity managers.” The event manag- asked the client (the father of the bride) to
The search operations, which began (LRS),” said Rajesh P. Shah, partner at ers are comfortable accepting cash for submit the names and PAN of each guest
this week and could continue for a few Jayantilal Thakkar & Company. these events as per the convenience of the at the wedding.
days, would focus on cash dealings--as The findings so far indicate Jaipur customers, said the person.
much as 50-60% of the amounts spent- planners as the kingpins with planners Since wedding planners are unable
-with the wedding planners. Sources in other cities reaching out to them to or- to carry out all expenses in cash, third- Please send your feedback to
etwealth@timesofindia.com
said this would soon extend to scrutiny ganise events. According to a tax official, party operators are used to legitimise
investing
Are financial calculators reliable?

Multiple variables fed as assumptions in such calculators can go wrong.
by Sanket Dhanorkar
A
s investors, we crave con-
trol over our financial goals
and aspirations. We detest
not being in command of
our journey. Like an anx-
ious mother, we fuss over the math.
How much money do I need for my re-
tirement and for the kids’ higher stud-
ies? How much should I invest towards
these goals? However, not many of us
can count on a trusted financial ad-
viser to show us the way. So we turn to
online financial calculators. With just
a few key taps, these nifty tools help
us magically get a fix on the numbers.
But are these calculators really put-
ting us on the right track or misguid-
ing us with their instant remedies?
Online financial calculators are
GETTY IMAGES
quite intuitive, helping you distill

complex goals—retirement, children’s
higher studies, house purchase—into
a single figure. To arrive at that magic
figure, the calculator will ask you to
Minor deviations from

plug in a few numbers initially, along past returns to continue into the future.
with some basic assumptions. For More importantly, the returns are not al-
estimates can upset goal math

instance, a retirement calculator will ways linear, contrary to how these calcula-
ask you to feed in your current age tors work. You simply cannot predict the
and household expenses. Next, it will exact pattern of gains or losses, or the order
ask you to make certain assumptions in which your investment returns occur. For
regarding your life expectancy, future
Retirement corpus required (` cr) instance, negative returns occurring later in
expected rate of inflation, expected Expected inflation rate your working years and/or early in your re-
return from investments before and tirement life can upend the goal math. This
after retirement, etc. After the vari- 5% 6% 7% is what is referred to as ‘sequence of returns’
ables are fed in, the calculator gets risk. A calculator is not equipped to cover
cracking and instantly presents a set 10% 6.96 10.09 14.65 7% such a scenario.
of numbers. Clearly, financial calculators do not work
Suppose you indicated monthly 11% 6.14 8.84 12.77 8% to an exact science. These are oversimpli-
expenses of `75,000 at age 35, expected fied and can come apart easily. Multiple
12% 5.44 7.8 11.21 9%
Post-retirement return
Pre-retirement return
to grow at 6% every year till retire- variables at the heart of such calculators
ment at 60. The financial calculator can go astray as both financial markets
suggests you need `38.6 lakh to sup- and personal circumstances cannot be
Monthly investment required (`)
port your lifestyle immediately on predicted. Vidya Bala, Head of Research,
retirement. It further indicates that Inflation rate Primeinvestor.in, remarks, “The risk lies
you need to target a sum of `8.84 crore in making multiple assumptions. The
5% 6% 7%
to sustain your lifestyle over the next outcomes can change drastically if you get
30 years. To fetch this sum, it indicates 10% 52,461 76,039 1.1 lakh 7% these wrong.” So, relying on financial cal-
that you need to put away `66,651 culators is fraught with risks. “These give
monthly starting today, if you expect 11% 38,928 56,109 81,050 8% an illusion of control, but the reality is that
to get pre- and post-retirement returns nobody can predict how things will pan out,”
of 10% and 8%, respectively. 12% 28,977 41,532 59,665 9% argues Gabajiwala.
The calculator has your retire- Do not use them as the blueprint for your
ment mapped out. This figure gives The calculations are for a 35-year-old building a retirement corpus required at 60 years, financial goals. At best, consider these as a
your financial goal a definite shape. assuming a life expectancy of 90 years and with current monthly expenses of `75,000. rough sketch for your investment journey.
However, experts warn that it is not Stay nimble and keep revisiting the goal
as straightforward as these financial years. Just 1% higher inflation raises your higher education or medical inflation, both math. Be conservative in your estimates to
calculators make it out to be. First, required corpus by a staggering `4 crore. of which are way higher,” observes Juzer leave enough room for error, suggests Bala.
there are multiple variables at the The bigger target now implies that you need Gabajiwala, Director, Ventura Securities. “Estimates regarding returns or inflation
heart of the calculator. If one or more to commit a higher outlay or you risk outliv- Your spending habits may also undergo should be rooted in reality rather than what
estimates go wrong, even if by a few de- ing your savings by several years. big shifts with changing circumstances. you wish for. If you keep expectations low,
grees, the whole math goes awry. What It is very difficult to lay a finger on the Twenty years down the line, you might in- you will automatically save more, compen-
happens if the actual inflation pans pulse of your future expenses, particularly cur big spends on items or experiences you sating for the estimates going wrong,” Bala
out at 7% instead of the 6% you budget- when these are projected several years into can’t even imagine today—a personal robot asserts.
ed for? You will now spend `48.85 lakh the future. Besides, your personal inflation or pure air, perhaps. No financial calcula-
in the year after retirement, neces- can vary a lot from the headline inflation. tor can factor this into the math. Similarly,
Please send your feedback to
sitating a nest egg of `12.77 crore at age “The newsprint suggests that inflation is returns may pan out very differently from etwealth@timesgroup.com
60 to secure your needs for the next 30 at 5-6%, but you cannot use this figure for what you have estimated. It is futile to expect
guest column
How not to
get fooled by
stock prices
In volatile markets, the obsession with
GETTYIMAGES
price movements can lead investors
astray, says Dhirendra Kumar.
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH
than the one with an NAV of `50. Fund man- in India and penny stocks elsewhere. The
agers and advisers must constantly explain allure of low-priced stocks is so strong that
money that NAV is merely an accounting measure, even specialised research tools and websites
T
mysteries he Indian stock markets have been
not a measure of value or future potential.
Yet, remarkably, even sophisticated inves-
are dedicated to filtering for them. It’s as if
the absolute price level has become a crite-
like a roller coaster lately, creating a tors who understand this concept in mutual rion for investment decisions, independent
peculiar spectacle. Every morning, funds often fall into the same trap with stock of any fundamental analysis.
news channels and social media feeds prices. The irony is that sophisticated investors
fill up with breathless commentary Let’s consider the concept carefully. Yes, use price-based ratios like price-to-earn-
In today’s about stock prices and index levels. The constant the price of a stock legitimately plays a cen- ings or price-to-book value as analytical
environment of volatility has turned many investors into anx- tral role in investing. Low price is a valid tools. These ratios are comparable across
heightened volatility, ious price-watchers. They check their phones eve- reason for buying, and high price can be a companies because they contextualise price
ry few minutes to see if the latest price movement good reason for selling or avoiding a stock. against fundamental business metrics.
price fixation
holds profound insight into their investment This concept is fundamental to almost all However, extending this comparative logic
becomes particularly
decisions. This obsession with price movements equity investing. However, ‘high’ or ‘low’ is to raw prices is a basic mistake many inves-
dangerous. The reveals a fundamental misunderstanding about not an absolute level in a vacuum. It’s high tors make, especially during volatility.
constant price what stock prices mean and how they should or low compared to what you have indepen- In today’s environment of heightened vol-
movements create an influence investment decisions. The problem dently concluded is a reasonable price for atility, this price fixation becomes particu-
illusion of information isn’t just the unhealthy fixation with short-term that particular stock based on its fundamen- larly dangerous. The constant price move-
where none exists. fluctuations; it’s the flawed mental model many tals, prospects, or other relevant factors. ments create an illusion of information
investors have about stock prices. The current market volatility makes this where none exists. A stock dropping 5% in
A stock dropping 5%
Many investors believe that a stock with a confusion worse. When prices swing wildly, a volatile market doesn’t necessarily mean
in a volatile market
low price is somehow ‘cheaper’ and, therefore, investors often lose sight of this crucial it has become a better buy, just as a 5% rise
doesn’t necessarily a better buy than the one with a high price. distinction. A stock trading at `15 is not doesn’t automatically make it overvalued.
mean it has become This misconception has a fascinating parallel inherently cheaper than the one at `500. The The solution isn’t to ignore prices entire-
a better buy, just with the way investors view mutual fund NAVs, `15 stock could be grossly overvalued at that ly; they’re crucial for investment decisions.
as a 5% rise doesn’t where many think funds with similar NAVs price, while the `500 one might be a bargain. It’s important to understand that prices only
automatically make it must be comparable investments. Both beliefs The raw prices simply aren’t comparable make sense in context, whether it’s the com-
are misguided. The mutual fund industry has between different companies. pany’s fundamentals, prospects or broader
overvalued.
long battled this misconception, where investors Curiously, this flawed thinking has market conditions. In volatile markets, this
mistakenly believe that a fund with an NAV of `15 spawned an entire investing subculture perspective becomes useful and essential
is somehow ‘cheaper’ or has ‘more room to grow’ focused on ‘cheap’ stocks—rupee stocks for maintaining investment sanity.
31 Dec last
‘Indians date
most to file revised
satisfied tax return
with hybrid work’
The last date to file belated and payable even if there is no pend- belated return, only an updated correct the mistakes made in
revised income-tax returns ing tax. If the total income does return can be filed subject to the original and belated re-
for financial year 2023-24 (as- not exceed `5 lakh, a penalty of the condition that there is a tax turns. A revised return can be
sessment year 2024-25) is 31 `1,000 is applicable. However, liability payable. If no belated filed if the taxpayer has failed
December. According to in- no penalty is applicable on be- return is filed, the taxpayer to report income, forgotten to
come tax laws, different catego- lated returns if the taxable in- shall have to face increased in- claim a deduction, is missing
ries of taxpayers have different come does not exceed the basic terests and penalties on the tax reporting bank accounts, etc.
last dates to file ITRs. However, exemption limit of `3 lakh. liabilities if a notice is sent by Bhuta says, “If the taxpayer
the last date to file belated and Kinjal Bhuta, Secretary the tax department.” misses this deadline, there is
revised returns is the same for of Bombay Chartered A major disadvantage of fil- no other mechanism to file a
all taxpayers. Accountants’ Society, says, ing belated return for 2023-24 revised return again for that
A taxpayer files a belated “Belated return is the last is that a taxpayer cannot opt assessment year, and to claim
return if he misses the deadline chance for the taxpayer to file for the old tax regime. The new refunds or losses. However, an
to file the original return. A the ITR and claim refunds and tax regime has been the default updated return cannot be filed
belated return is filed under certain losses. If the belated tax regime since 1 April 2023 if the taxpayer has losses, it
Section 139(4) of the Income-tax return is not filed, the person (financial year 2023-24). The be- results in a higher refund, or
Act. A penalty of `5,000 is ap- misses the claims and credits lated return for 2023-24 will be the return reduces the total tax
plicable at the time of filing the for that assessment year. After filed under the new tax regime. liability as filed in the original
belated return. This penalty is the expiry of the filing of the A revised return is filed to or belated return. —ET online
interview
“As a nation, we have only just

begun to unlock our potential”
Regulatory interventions in F&O space are essential when viewed through the lens of investor
protection and market sustainability, Dinesh Thakkar tells Sanket Dhanorkar.
public and private investments could drive introduced, they initially caused some dis-
GDP growth at a healthy 6.5–7% annually. ruptions. Over time, they helped make the
At Angel One, we firmly believe that the markets safer and more resilient.
nation’s economic fundamentals remain
strong. The long-term growth story is very Is diversifying into wealth management,
much intact. As a nation, we have only just loans, etc., the only way for brokerages
begun to unlock our potential. to remain profitable?
For Angel One, expanding into services
You have decided to move away from the like wealth management and loans was all
zero brokerage model to adjust to new about enhancing client experience. Our goal
business realities. What makes you confi- has been to provide users with a holistic
dent this is the right path? financial journey on a single platform while
Our decision to move away from the zero also increasing customer value. With the
brokerage model reflects our commitment broking business already operating on a sus-
to keep up with the changing realities of the tainable model, we can profitably onboard
market. When we initially adopted the zero new clients. As we bring in young, first-time
brokerage model for cash delivery, it was a investors from tier 2/3 cities and beyond, it’s
strategic step to make equity investing more crucial that we support them through their
accessible. By offering free brokerage, we financial journey from start to finish. By
sought to encourage first-time investors to offering a wider range of products, we can
enter the markets and lower the barriers to capture every stage of our clients’ financial
participation. The model was sustainable lifecycle and build a sustainable, long-term
because of the discounts we received for han- business. At the same time, we strongly
dling higher transaction volumes. However, believe that the technology-led disruption
as market dynamics evolved, those volume- we brought to the broking space can also be
linked discounts disappeared. This made it replicated in other segments. This thinking
necessary for us to is what led us to focus
recalibrate our pric- “By moving to a cost- on creating a Super
ing to ensure that it App. Today’s younger
remains sustainable. based pricing consumers want an all-
By moving to a clear,
cost-based pricing structure, we can in-one solution that can
help them manage their
structure, we are
confident that we can
make our offerings finances seamlessly. The
transition from a brok-
make our offerings even more robust.” ing app to a Super App
even more robust. is all about delivering a
Ultimately, this shift positions us to deliver delightful, user-friendly experience.
long-term value to our investors, while
Dinesh Thakkar Do you believe the market has borrowed

returns from the near future or is there
reinforcing our role as a key player in the
financial ecosystem. It also shows our ability
Why are you specifically targeting the
passive segment in your AMC vertical?
enough left on the table? to adapt to changing conditions. Do you feel the game is over for active
Chairman and Markets always tend to price themselves management in India?
Managing Director, based on the expectations of future growth.
When we evaluate the current valuations
Will the regulatory curbs in F&O disrupt the
market? Is the clampdown warranted?
Passive funds are often a better fit for retail
investors because they simplify active fund
Angel One through the lens of anticipated economic Regulatory interventions in the financial management. By investing in well-known
growth, small- and mid-cap stocks appear markets have often faced a pushback, but indices, retail investors can enjoy solid re-
to be trading at stretched levels compared when viewed through the lens of investor turns without the stress of picking individ-
to their historical averages. On the brighter protection and market health, such meas- ual funds. Active funds demand consistent
side, large-cap stocks seem more resilient, ures prove to be essential. outperformance and depend heavily on fund
backed by stronger growth metrics and bet- The growth in market volumes, including managers—an unnecessary hassle for retail
ter return on equity. in F&O segment, underscores the increasing investors. While we may offer innovative
The ongoing structural shifts in the participation by individual investors and the products like Smart Beta funds for investors
Indian economy—increasing wealth in growing acceptance of equities as an asset who want a slight edge, our primary focus
India’s tier 2 and smaller cities, growing class. With such strong growth opportuni- will be on passive offerings like ETFs and
financialisation of savings, wider adoption ties, it is crucial that regulations also evolve. index funds. Unlike AMCs with large, active
of new asset classes and accelerating digital The recent regulatory changes aim to create portfolios, we can aggressively promote pas-
transformation—are powerful tailwinds the right guardrails to protect investors and sive products and educate retail investors
for India’s long-term growth story. Further, ensure a more sustainable, balanced trading to build a diversified portfolio without the
India’s demographic dividend, with a young environment. In the long run, these meas- guesswork.
and expanding workforce, positions the ures will build trust and transparency, and
economy for sustained growth over the next safeguard retail investors. At Angel One, we
25 years. Despite the recent tepid growth due have seen this play out before. For example,
etwealth@timesofindia.com
to curtailed government spending, revival in when the peak margin regulations were
QA
your queries
&
I am 30 years old. I recently got an individual My mother-in-law received a flat free of

health insurance plan after learning about its ben- cost after redevelopment in 2021. She had
efits. However, I’ve also read that premiums are originally purchased the property in 1983.
increased annually regardless of the age at which If she decides to sell it now or in the future,
one starts. Is there an advantage for me in starting what base price will be considered for cal-
now as opposed to doing it after 10 years? Will a culating capital gains? Additionally, what
continuous coverage for a decade lead to signifi- will be considered as base year, 1983 or
cantly lower premiums in my 40s compared to 2021? She does not have any information
starting at that age? What other benefits would I on the property’s value in 2021.
have at 40 compared to a fresh policyholder, or is
this just an insurance marketing gimmick? Our panel of experts will answer The property originally purchased in 1983
questions related to any aspect and subsequently received as a redevel-
Young consumers often overlook health insur- oped flat in 2021 will be subject to specific
ance, but starting early is crucial. While premi- of personal finance. If you have rules while calculating the capital gains tax
ums increase with age, the benefits of starting
early far outweigh the costs. One key advantage
a query, mail it to us right away. on sale. For determining the cost of acqui-
sition, the base year for calculation will be
is guaranteed coverage, as many applicants financial year 2001-2. Since the property
aged over 35 years face rejections due to ill- QUESTION OF THE WEEK was acquired before 1 April 2001, the cost
nesses like strokes or cancer. Starting early min- of acquisition will be the fair market value
imises this risk. (FMV) of the property as on 1 April 2001,
Modern plans also lock your entry age for or the original purchase price in 1983,
premium calculations until you make a claim, whichever is higher. This higher value will
My wife will receive `3 crore from the
ensuring affordability and sustainability. Well- serve as the cost for computing capital
ness benefits reward healthy living, offering sale of her ancestral property. What are gains.
discounts or even full premium offsets, which the applicable tax rates for the capital The redevelopment of property does not
can lead to significant savings over time. No- gain, and how can we reinvest to mini- alter the original cost of acquisition or its
claim bonuses further amplify the advantages, mise tax liability? We need funds for a holding period. The holding period will be
allowing the coverage to grow exponentially. considered from the date of purchase in
car, international trips, and a health-
For example, a `10 lakh policy could grow to 1983, ensuring that the property qualifies
`1.1 crore by age 40, compared to a `10 lakh care FD. We have also invested `1 crore as a long-term asset, as it has been held for
base coverage for someone starting later. in mutual funds and own property more than 24 months. Consequently, any
Starting early also helps you serve waiting worth `2 crore. Please suggest strate- gains from its sale will attract long-term
periods and reducing exclusions when you may gies to maximise financial benefits capital gain (LTCG) tax.
need medical coverage the most. Lastly, early Further, due to a change in capital gain
while meeting these needs.
coverage shields against unexpected emergen- tax regime this year, taxpayers are allowed
cies, protecting you financially to choose from two different tax rates.
and providing long-term sav- They can opt for the new LTCG rate of
ings and security that late As the property is ancestral, the capital gain from 12.5% without indexation or a tax rate of
starters cannot match. its sale will attract 20% LTCG tax with indexation 20% with indexation (i.e. adjusting the cost
or 12.5% without indexation. Calculating the calculated above by using the cost inflation
index provided each year by the tax de-
acquisition cost may involve complexities. Section
partment). Taxpayers can calcu-
Sarbvir Singh 54 of the IT Act offers avenues to save or defer
Joint Group CEO, PB Fintech late their liability under
LTCG tax, depending on the type of property. both methods and choose
Consult a tax adviser to determine the LTCG and the lower tax amount.
explore suitable tax-saving instruments.
I am a 54-year-old PSU employee in the 30% tax Instead of investing in capital gains bonds under
bracket and have opted for the new tax regime. As Section 54EC, which have a five-year lock-in Amit Maheshwari
a long-term investor in shares and mutual funds, I period and low returns of 5.25% per annum, it Tax Partner, AKM Global
have realised long-term capital gain (LTCG) in the
may be better to pay tax and allocate the
current financial year. Can I claim `1.25 lakh tax
exemption for LTCG on shares and mutual funds proceeds to financial goals and investments.
under the new tax regime? Also, will I be eligible Maintain six months’ expenses in bank FDs
I bought a flat in Thiruvananthapuram in
for the benefits of grandfathering provisions? yielding over 7.5% for liquidity and safety. Next,
1991 for `3.75 lakh, which included registra-
purchase health insurance of at least `1 crore, tion charges and interior work costs at the
with a base health cover of `5-10 lakh and top-up time. This year, I sold it for `43.5 lakh. I need
Yes, the tax exemption of `1.25 lakh is permit-
cover of `90-95 lakh for relatively low premiums, clarification on capital gains, including index-
ted for long-term capital gain in equity and eq- ation, as I understand real estate transactions
uity-oriented mutual funds even if you opt for
to deal with unforeseen medical emergencies. You
preceding 2001 are still eligible for indexa-
the new tax regime. may purchase term insurance plan(s) covering 20
tion benefits. How much tax will I have to
By grandfathering, if you mean the provision times your family’s annual expenses for ensuring pay? Will the gains be taxed at 20% or 12.5%?
of not taxing long-term gains accrued till 31 financial security of your dependants in case of
January 2018 in equity bought before this the unfortunate event of your untimely demise.
date, then the same is also available in the new Allocate the remaining proceeds in a 60:35:5 The tax liability amounts to `5,97,750 lakh
regime. You should calculate your taxability on ratio across flexi-cap, multi-asset, and gold funds with indexation, but it will be lower if you
the sale of investments on the basis of the opt for the method without indexation, as
through 12-18 month SIPs. You can consider the
above and deposit advance tax on the same if it will come to `4,96,875. Based on the cal-
direct plans of Parag Parikh Flexi Cap Fund and/or
you do not plan to reinvest the proceeds/ capi- culation, opting for the new capital gain tax
HDFC Flexi Cap Fund for the flexicap at 12.5% without indexa-
tal gains as per the various modes available in
category; Nippon Multi Asset Fund tion will be beneficial for
the Income-tax Act. This will help you save in-
terest on the payable tax that accrues and/or ICICI Prudential Multi Asset you by `1,00,875.
till the date of payment. For most Fund for the multi-asset category
individuals, this is June/ July of and SBI Gold Fund and Aditya
next year when they file their Birla Sun Life Gold Fund for Sudhir Kaushik
Co-founder & CEO, TaxSpanner
tax returns. exposure to gold.

Shubham Agrawal Naveen Kukreja etwealth@timesofindia.com
Senior Taxation Adviser, TaxFile.in Co-founder and CEO, Paisabazaar.com
entrepreneurship
ARTIFICIAL JEWELLERY
GETTYIMAGES
Selling a sparkle
If you are planning to start a small business, this
new series will help identify the problems you’re
likely to face. In the second part, Yasmin Hussain
finds out what it entails to start an artificial
jewellery business by talking to Just Lil Things’
Co-founders, Deepika Jain & Anup N. Mehta.
W
hen Covid killed their
artificial jewellery busi-
How to start an artificial jewellery business
ness in 2020, Deepika
Jain and Anup N. Mehta
found another way to
make a comeback. The Bengaluru-based
entrepreneurs took the business online
in 2021, christening it ‘Just Lil Things’. STEP 1 STEP 2 STEP 3 STEP 5 STEP 7
STEP 4 STEP 6 STEP 7
The dream that started with `1.5 lakh Find a niche Set a budget Get the Price Streamline
generates an eight-figure annual rev- licences Sourcing products Invest in operations Hire a team
Just Lil Things Several brands
enue today, riding on unique designs and started with have started Though Just Source jewellery Experts paid ads Use effective Retaining
affordable, with as low as Lil Things from wholesale recommend tools for employees is
well-structured processes. It is a good an essential
premium `10,000, but got LMPC, markets in pricing your idea to inventory
It all started with Mehta’s decision to jewellery for `1 lakh is a China, Korea, skill to survive
IEC and PER products start early management
bring back jewellery for his wife from Gen Z. Carry good starting licences, Thailand or with 60- and choose in this space.
with paid Hiring a team
his overseas trade trips. When this jew- out market point. Out it’s best to India (Jaipur, 70% gross advertising reliable logistics
research to of `1.5 lakh consult an Mumbai). You margin, partners. Just Lil is challenging
ellery began to find favour with Jain’s and not wait because it can
identify trends investment, expert as you can also use or at too long. Things majorly
friends and family, the couple decided to Alibaba to take almost a
and gaps in Just Lil may not need least start Start with uses Delhivery,
convert it into a business, starting only jewellery or Things spent all of these import western with 50% DTDC and Blue year to teach
a minimum the business,
as a pop-up model. “In Bengaluru, an fashion market. `15,000 on certificates. jewellery from and then budget of Dart to manage
Pick a niche rent, `65,000 The cost of famous markets scale it up their deliveries, but by that
exhibition called ‘Sunday Soul Sante’ `20,000 per
like statement on website, these three like Yiwu, China. gradually. and Omega time the
attracts 10,000-15,000 people, comprising month. employees are
earrings `50,000 on certificates Markets like Commerce
mostly Gen Z, and the rent at the time or regional goods and was `25,000. Sadar Bazar in for inventory ready to move
was `15,000-25,000. We thought selling jewellery. `20,000 on Delhi also have management. on to the next
marketing. good designs. job.
modern jewellery here would be a good
idea,” says Jain.
She was right. In their first such dis-
play, they sold out, earning `1.5 lakh in Just Lil Things’ journey at a glance
barely 4-5 hours. However, Covid-19 jetti-
soned their well-laid plans. So, in August
2021, they launched a website, which
proved to be a turning point. By March Initial investment First-year Marketing budget Current Designs
2022, the business had generated around `1.5 lakh revenue `15,000- daily orders 300+
`5 lakh in revenue, garnering over 6,000 `4-5 lakh 20,000 1,200
orders. The couple used their home and per month
Mehta’s existing warehouse as storage,
gradually scaling the operations as the from Milan and Paris. “We take the most of goods for the first time, it was stuck marketing through barter collabs. “When
orders increased. “Covid was good for popular designs, pay the designers 15% of at the customs for almost two months. It we shortlist influencers, we only focus on
our business as we are getting over 1,200 gross sales as royalty, and get the jewellery was only then that he realised he needed a the quality of their content, rather than
orders daily now and have reached an manufactured in China,” says Mehta. Legal Metrology Packaged Commodities their follower count,” explains Jain. Now,
eight-figure yearly revenue,” says Jain. “The biggest challenge has been man- (LMPC) certificate, Pre-Shipment Export the startup also focuses on WhatsApp
Their two failed businesses prior to aging inventory because of the variety of Registration (PER), and Importer Exporter marketing and lists products on quick com-
Just Lil Things—event management products, and it continues to be an uphill Code (IEC) to get it cleared at the customs. merce platforms like Blinkit, Zepto and
firm and a clothing brand—also pro- battle,” says Jain. To solve this problem, Swiggy Instamart.
vided a good training ground. “Besides, they are now incorporating artificial intel- Marketing & expansion Just Lil Things is in the funding process
I always wanted to do something related ligence and machine learning. “Omega Getting customers was never a challenge and keen to launch offline stores via shop-
to fashion because that’s where my Commerce gives us optimal inventory for the couple. They have been running ad in-shop and kiosk models. SIS model refers
strength lies,” says Jain. However, the planning. So if I’m selling 100 units this campaigns since the launch of their web- to a retail space, wherein a brand operates
journey has not been without challenges. month, the planner will tell me how much I site. “Initially, we focused on Meta Ads and in a dedicated space within a bigger store,
will require for the next 2-3 months. It helps Google Ads to bring traffic to our website,” to showcase its products. The kiosk model
The challenges us to get products in advance so that they says Jain. “Our primary platform was refers to a small, standalone retail outlet
Initially, the husband-wife duo sourced don’t go out of stock,” explains Mehta. Instagram. We showcased products that bought or rented in malls or high-traffic ar-
jewellery mainly from Korea, China and Artificial jewellery also requires an worked well organically and then created eas, for quick, focused sales. They also plan
Thailand. To set themselves apart, they elaborate set of documentations and test campaigns around them,” she adds. to venture into new categories like bags,
started collaborating with designers reports. When Mehta imported 1,500 kg Eventually, they also started influencer make-up accessories, tissues, wipes, etc.
stocks
Oil marketing firms gear up

for better performance
A recovery in the refining segment, strong marketing margins as well as range-bound oil prices
are set to drive the profitability of OMCs in the second half of 2024-25.
by Sameer Bhardwaj December 2024 (up to 16 December), and
O
prices are under pressure amid concerns
il marketing companies over lower demand (due to weak economic
(OMCs) weighed down the activity in China and increased adoption
performance of corporate of electric vehicles) and potential oversup-
India in the September ply, due to the likelihood of an increase in
quarter. The weak per- non-OPEC oil. Despite the downward pres-
formance of the refining segment, sure on the oil price, a recent JM Financial
inventory losses and significant LPG report states that OPEC+ will continue
under-recoveries contributed to the to use its pricing power to support Brent
poor show. The three OMCs—Bharat crude price around $75/barrel by further
Petroleum Corporation (BPCL), deferring the unwinding of output cuts to
Hindustan Petroleum (HP) and Indian ensure the market remains in deficit or
Oil Corporation (IOC) —reported a minimal surplus. Reuters forecasts Brent
combined consolidated net profit of crude to average $74.53/barrel in 2025.
`1,991.1 crore, falling by 92.8% year- The capping of the downside in oil prices
on-year. will not only benefit OMCs but also the
GETTY IMAGES
The impact of OMCs on India Inc.’s upstream players—ONGC and Oil India.
overall performance can be assessed This is because stable oil prices will sup-
by comparing the aggregate PAT port the net realisation of the upstream
growth of all companies in the BSE 500 companies. Net realisation is the price at
index and the index’s aggregate PAT which the company sells oil and gas in the
growth (excluding OMCs). The data
Indian Oil Corporation open market after subtracting subsidies.
from Reuters-Refinitiv for 498 com- 12-month Current 1-year target POTENTIAL ANALYSTS’ RECOMMENDATIONS
panies in the BSE 500 index shows a forward PBV price (`) price (`)* UPSIDE BUY HOLD SELL Margins to offset LPG losses
1.7% y-o-y decline in the aggregate con-
solidated net profits (not adjusted for
0.93 140 175 24.89% 15 6 10
LPG burden will continue to remain
significant in the second half. A YES
extraordinary items). After excluding Securities report estimates an addi-
OMCs, the aggregate net profit growth Bharat Petroleum Corporation tional burden of `22,500 crore for OMCs.
improves to 5.6% y-o-y. However, after ANALYSTS’ RECOMMENDATIONS Nevertheless, the report is optimistic as
12-month Current 1-year target POTENTIAL
the poor September quarter, the per- UPSIDE healthy refining and marketing margins
forward PBV price (`) price (`)* BUY HOLD SELL
formance is set to improve in the sec- are likely to offset the impact of under-
ond half of 2024-25. Recent reports from 1.41 293 374 27.73% 16 7 8 recoveries even in a worst-case scenario
multiple brokerage houses, such as of zero government aid, states the report.
ICICI Securities, Prabhudas Lilladher, Hindustan Petroleum Corporation A report from Antique Stock Broking also
Antique Stock Broking, Motilal Oswal, states that LPG burden is not a serious
and YES Securities, have been positive 12-month Current 1-year target POTENTIAL ANALYSTS’ RECOMMENDATIONS
concern. “Our calculations indicate that
forward PBV price (`) price (`)* UPSIDE BUY HOLD SELL another two months of marketing margin
on the performance of OMCs.
1.59 407 466 14.47% 17 5 9 cushion can set off the LPG burden,” adds
What led to poor show? the Antique report.
The refining segment was muted Oil & gas refining and marketing sector 12-M forward industry median PBV: 1.33. *Averaged for only those brokerages that
amid the excess supply and demand

have revised target prices in December 2024. Current price as on 17 December 2024. Source: Reuters-Refinitiv
Company wise assessment
concerns (especially from China). The ICICI Securities and Antique Stock
benchmark Singapore GRMs (gross of 2024-25, which dented their profitability Weak demand and Broking reports remain positive on all
refining margins) averaged $3.7/bar-
rel in the September 2024 quarter, com-
due to lack of government support.
oversupply pressure three OMCs, whereas YES Securities
prefer Hindustan Petroleum and BPCL.
pared to $9.6/barrel in the September What will drive revival? Brent crude ($/barrel) Motilal Oswal prefers Hindustan
2023 quarter. A fall in crude oil prices The recovery in the refining segment 88.63 Petroleum among the three OMCs.
85.92 85.03
led to inventory losses. The Brent and improvement in product cracks is ex- Apart from margin (refining and mar-
82.10 82.85 81.76
crude averaged $78.71/barrel in the pected to support performance. Singapore keting) tailwinds, analysts list ambitious
second quarter of 2024-25, compared GRMs hit a three-month high of $6/barrel 77.73 78.71 expansion plans and comfortable leverage
to $85.92/barrel in the corresponding in November 2024, according to the data 74.08 as the key strongholds of IOC, whereas the
period of the previous year. compiled from an ICICI Securities report. revival of the Mozambique project by the
In addition, the marketing segment The report lists a drawdown in crude and fourth quarter of 2024-25 is the key positive
earnings were hit due to the decline product inventories in the US over the past for BPCL. Demerger and potential listing
in product cracks and LPG losses. The several weeks, a marginal uptick in demand of the lubricant business and the start of
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
petrol and diesel cracks (price differ- and refining capacity disruptions as rea- 2022- 2022- 2023- 2023-2023- 2023-2024- 2024- 2024- the Rajasthan refinery in early 2025-26
ence between petroleum products like sons for the jump in the benchmark refining 23 23 24 24 24 24 25 25 25* are the growth catalysts for Hindustan
*Up to 17 December.
diesel, gasoline and fuel oil, and the margins. The strong marketing margins Petroleum.
input, which is crude oil) fell signifi- will boost the profitability of OMCs in the Range-bound oil prices to help
cantly on both quarter-over-quarter second half of 2024-25. Steady retail prices of Moreover, range-bound oil prices will mini-
and y-o-y basis in the September quar- petrol and diesel, coupled with expectations mise the impact of inventory, which in turn
ter. The LPG subsidy has burdened the of range-bound crude oil prices, will con- will support the profitability of OMCs. The etwealth@timesofindia.com
OMCs by `17,490 crore in the first half tinue to support the marketing margins. Brent crude price averaged $72.7/barrel in
financial planning
PAPER WORK
Health insurance
for senior citizens
under PM-JAY
The Ayushman Bharat Pradhan
GETTY IMAGES
Mantri Jan Arogya Yojana offers
free health insurance of up to `5
lakh annually for vulnerable sec-
tions of the society and also for
senior citizens above 70 years,
irrespective of their income limit.
Here’s how to enrol.
Download application
Senior citizens or
their family members
can download the
Ayushman Bharat
app from the Google Play Store or
the official website. The user can
then select the desired language
for proceeding further.
Factors to consider Log in for enrolment

as
The option for ‘Login
beneficiary’ needs to
while taking home loan

be clicked by enter-
ing the ‘captcha’ and
mobile number. Enter the OTP
sent on the mobile number. After
logging in, go to the bottom of the
W
home screen for senior citizens’
Ashish and Anu Gupta, both hen lenders offer loans, any of these features are likely to vary enrolment.
they take the risk on during the loan period. For example,
working professionals, have their books. Therefore, any modification in the interest rate can
been staying on rent for 12 the onus of choosing change the EMI. The interest rate might Aadhaar validation
years. Now, they are ready well is on the lender. The be the same across two lenders, but these Enter the Aadhaar
borrowers can base their choice on the specific features may be different. number and validate
to buy a `2 crore house. With product and service features. The core Also, lenders typically use various the same using the OTP
`80 lakh saved for the down features of a loan are the tenor, fixed and criteria while ascertaining the loan eli- sent on the registered
floating components, and administrative gibility. These primarily include the bor- mobile number. Then, enter the
payment, they are exploring and processing costs. Ashish and Anu rower’s monthly income and expenses, state of residence. After entering the
loans from banks and housing Gupta must ensure that they review the age, number of dependants, etc. While ‘captcha’, a search option is activated
terms and conditions of different lenders Guptas may like to maximise the loan which, upon clicking, will check if the
finance companies. While they prior to narrowing down on the loan. amount, they need to be sure that the senior citizen is already registered
aim to choose the lender offer- The amount of loan or the percentage administrative costs and the EMIs can with the scheme. If not, the senior
citizen needs to apply for fresh
ing the lowest interest rate, is of cost of the property that the lender be borne comfortably. The time period
enrolment. Another round of OTP
may be willing to cover may vary. As bor- taken for sanctioning the loan, paper-
this the right approach? Should rowers, Guptas may be keen to minimise work involved, legal and compliance
verification will be carried out, after
which the application will prompt
interest rate be the sole decid- the monthly EMI, which varies based on issues, and time taken for loan disbursal
the senior citizen to click their live
the amount of loan, tenor and interest may vary across lenders. Guptas will
ing factor, especially if multiple rate. Guptas should see which combina- be better off making their choice after
photo for verification.
lenders offer similar rates? tion works best for them and find out if evaluating all these aspects.
Provide details
Content courtesy Centre for Investment Education and Learning (CIEL). The senior citizen then
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. needs to input details
such as mobile number
smart things to know Arbitrage funds for OTP verification,
city, state, address, ward details,
1
2
pin code, etc, and submit.
4
The returns
During periods of from arbi-
Submit application
3 5
Arbitrage funds market volatility, trage funds
Once all the details are
buy and sell the there are more are taxed as
entered, the user can
same asset in Since the buying price discrepan- equity funds,
submit the application
different mar- and selling prices cies between dif- The expense making
for approval. Once ap-
kets, such as the are known to the ferent markets, ratio for them more
proved, the Ayushman card is issued
cash market and fund manager, providing more arbitrage tax-efficient
to the beneficiary who can then
futures market, to these are consid- opportunities for funds typically compared
avail of the benefits of the scheme.
capitalise on the ered low-risk funds arbitrage and a ranges from to other
temporary price compared to other potential higher 0.5% to 1.5% fixed-income
discrepancies. mutual funds. return. per annum. products.
financial planning
How to avoid financial abuse

Make an effort to become financially literate, do not hesitate in claiming your money as your own, take money
decisions through discussions, and do not compromise on bigger financial goals, says Uma Shashikant.
all control over money. If the operational

arrangement is that one of the family
members will manage the process, be sure
to be involved and informed, and insist on
your active consent. Discuss how each one
will contribute to the common pool of the
household.
Second, do not compromise on financial
education. It is not difficult to understand
the nature of household income, whether
it is regular or seasonal, and the compo-
nents that make money available to be
used. To ensure that expenses are confined
to income, leaving behind a surplus to
invest for the future, is commonsensical.
Investing involves asset allocation and
product choices. One can learn about asset
classes and how they work with respect
to return, risk and liquidity, over the long
and short term. Make a beginning and per-
sist in becoming financially literate.
GETTY IMAGES
Third, bring in principles that will guide
the household’s finances as the common
ground on which everyone agrees. Decide
the goals that will drive money decisions.
I
Financial discussions do not happen
could not learn about money because I a spouse by making it difficult at home is a sit- because there is worry about hurting
was not given a chance,” a wife told me. uation many couples are quite familiar with. the other’s ego by questioning, or being
Her husband insisted that money mat- My friend and her husband have a joint ac- personally attacked, or having to give up
ters were too complex for her to manage. count in which both their salaries are credit- after arguing, even if resentfully. A couple
Even if she made a simple decision about ed. This is used to pay loan EMIs for the house, decided to rent a property as one of them
money, like opening a recurring deposit, he car and other consumer durables. She told me disliked selling it. After a few years of find-
told her it was not a wise step and that he would that his credit card and loan dues are set to be ing out that rental income was not stable or
have done better. Did she find a teacher outside paid in full on the due date from the joint ac- adequate to cover the EMI, they decided to
home? count, while hers is subject to questioning and sell. This was possible because both active-
“I wish my wife understood that debt is ruin- scrutiny, often leading to delays and late fees. ly discussed the situation at every turn.
ing us,” lamented a husband elsewhere. She Hurting another’s credit score is also abusive. Fourth, agree on the bigger goals and
UMA SHASHIK ANT
IS CHAIRPER SON, was insistent that borrowing was about using Routine arrangements that are made for objectives, and make sure these are not
CENTRE FOR INVES TMENT other peoples’ money smartly. Their savings managing household money can metamor- compromised. List the goals, discuss how
EDUC ATION AND LE ARNING were locked in several residential properties, phose into financial abuse if both partners do to fund them, and understand how money
mostly small and distantly located. She told not step up and understand money decisions. I will be allocated. Many households are
him that delays were part of the process and prod women, who choose relinquishing money content with creating assets even if these
that they would be rich soon. Did he tell her that management to their husbands, to consider are not useful in funding their life’s goals.
there was no money for the upcoming college the real possibility of abuse. A friend realised Make sure everyone agrees on what is im-
Learn to overcome admission of their son? after she filed for divorce that all assets were portant and knows how it will be financed.
the hesitation to claim Recognise financial abuse in whatever held in his name, paid from his bank account, Money is too serious a matter to be left to
your money as your form it presents itself. If someone controls while her account held all expenses to run the the whims of people who may not have the
own. You work hard to your money matters because your abdication household, with little surplus to invest. competence to make decisions.
was interpreted as approval, check yourself It would seem that the rich may also not be A household’s finances must be built
earn it, and you must
for resentment. Speak up if you don’t like exempt from abuse. I recall meeting a famous on trust and transparency about income,
have a say in how it
how your money is being used. If someone film star, who told me that her father and expense, saving and investing. Abdicating
is going to be used.
restricts your ability to earn, spend, save, brother would place before her contracts and one’s responsibility can lead to financial
If the operational invest, or give, they may be using money to cheques to sign as she was being prepared for abuse, and correcting it will be tougher
arrangement is control you. Money decisions in a household the day’s shooting. She could not talk with if not addressed urgently. For one of my
that one of the require transparency, discussion, approval make-up in process and simply signed as she friends, saying, ‘I am unhappy with this
family members and understanding, if they must remain fair knew nothing about money management. As decision’, worked better than saying, ‘You
will manage the and equitable. Set that standard and do what it long as I could spend as I wished, I did not care, made a wrong decision’. How we ensure
process, be involved takes to get there. she told me. I sadly know of many who think accountability is up to us, but creating the
and informed, and There may be instances where the victim similarly. What can be done to protect oneself ground for it is critical. Don’t believe that
insist on your active is unaware of the seriousness of the situation. from being financially abused? participating in the household’s personal
For instance, a husband could be lecturing his First, learn to overcome the hesitation to financial strategy and decisions is cum-
consent. Discuss how
wife about being careful with spending, while claim your money as your own. You work hard bersome. Abdication and delegation are
each will contribute
failing to exhibit these qualities himself. The to earn it, and you must have a say in how it is two entirely different ideas.
to the common
wife may insist on seeing the receipts for all going to be used. If we looked upon rich kids in
household pool. purchases made by the husband, while being school who curry favour with hangers-on us-
secretive about her own spending. Actively ing their money as a weapon, we put ourselves etwealth@timesgroup.com
sabotaging the career and income prospects of in a similar pitiable situation by giving up
insurance
In 3 yrs, 30% bigger health claims

In term life insurance, nearly 90% of claims are made for men, states a recent Policybazaar study.
HEALTH INSURANCE
Health claim size rises
30% in 3 years
Average claim payout
`62,014 `70,152 `81,025

2022-23 2023-24 2024-25
Highest claim share

from Maharashtra
1.5%
5.9% Tamil Nadu
Haryana
`1,13,074
`97,573
Claim frequency
14.5% Claim
10.2% Maharashtra Fever, gastritis,
Delhi
`86,402 frequency heart disease
`1,00,600 rises to diabetes and
cancer are top
% of total claims Average claim size 6.4% reasons for
4.9% 5.3% 6.4% health claims.
2022-23 2023-24 2024-25
18-35 year age group
makes most claims
TERM INSURANCE
38.2%
% share on claim amount paid
90-92% 35-40%
Natural death top claims are for men of term insurance policy-
29.5% reason for term claims mainly due to the high holders opt for riders like
25.3% Reason %age of claims
penetration of term critical illness and acciden-
insurance among males. tal death benefits.
Urban Maharashtra, Uttar Pradesh, Delhi, Karnataka,

6.4% 30-35% 25-30% 15-20%
areas and Gujarat see higher claim volumes due to
Natural Heart Accidents lead in larger populations and greater awareness about
life insurance in these regions.
0.5% deaths diseases
claims
18-35 36-45 46-60 61-75 75+
years years years years years
40%
Claim amount range
MOTOR INSURANCE
Claim volume share
54% motor insurance is the rise in claims

during monsoon months
claims for hatchbacks 26% in cities that are more
SUV prone to heavy rains.
54% 21% `30,000-35,000
Hatchback Sedan Source: Policybazaar. The digital study was conducted among 50,000
`20,000-25,000 `25,000-30,000 respondents across India in the past three years. All figures don’t add up to
100% due to multiple responses.
SMART STATS
The Economic Times Wealth
December 23-29, 2024
In This Section
MUTUAL FUNDS - P16
LOANS AND DEPOSITS - P18
ET WEALTH TOP 50 STOCKS

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

Value
Current Previous Stock Net PEG Div No. of
Research
Rank Rank Price Revenue Profit PE PB (5-year) Yield (%) funds
Stock Rating
Kotak Mahindra Bank 1 1 1,760 25 29 15.8 2.4 1.2 0.1 145 «««««
1 Fast growing stocks
Can Fin Homes 2 2 767 17 25 12.4 2.2 0.7 0.8 38 «««««
Top 5 stocks with the highest
Manappuram Finance 3 3 184 27 21 6.9 1.3 0.3 1.8 13 «««««
revenue (1-year) growth (%)
Bajaj Finance 4 4 6,937 30 15 28.0 5.0 1.1 0.5 125 «««««
Cholamandalam
Aavas Financiers 5 5 1,679 19 14 24.9 3.3 2.1 0.0 34 ««««« Investment 42.2
Indus Towers 6 6 348 5 128 12.1 3.2 0.1 0.0 72 «««««

AU Small Finance 41.2
PI Industries 7 7 3,864 9 29 33.1 6.2 1.1 0.4 74 ««««« Bank
UTI Asset 31.7

REC 8 8 530 21 17 9.4 1.9 0.4 3.0 105 «««««
Management
AU Small Finance Bank 9 9 552 41 6 22.5 2.6 0.6 0.2 49 ««««
30.1
Muthoot Finance
Cholamandalam Investment 10 22 1,226 42 25 26.7 4.8 0.7 0.2 116 «««««
Bajaj Finance 29.7
NIIT Learning Systems 11 10 461 5 12 27.6 5.8 3.7 1.1 12 «««««
NMDC 12 14 216 16 6 10.3 2.2 0.3 3.4 51 «««««
Karur Vysya Bank 13 11 228 22 32 10.2 1.7 0.8 1.0 52 «««««

2 Least expensive stocks
Petronet LNG 14 12 342 2 15 12.9 2.7 0.8 2.9 34 ««««« Top 5 stocks with the lowest
Bandhan Bank 15 13 164 22 10 9.4 1.1 0.5 0.9 22 ««««« price to earnings ratio
Repco Home
National Aluminium Company 16 15 221 4 134 12.9 2.6 0.1 1.4 57 «««««
Finance 6.16
Sharda Motor Industries 17 16 1,953 0 34 17.6 6.2 0.6 0.5 12 «««««
LIC Housing 6.66
Finance
ICICI Bank 18 17 1,286 23 17 19.2 3.3 1.4 0.8 283 «««««
DCB Bank 6.87
Shriram Finance 19 19 2,934 20 22 13.7 2.1 0.7 1.5 110 «««««
Manappuram
State Bank Of India 20 18 828 18 5 10.3 1.7 1.5 1.7 224 ««««« Finance 6.93
Hero MotoCorp 21 24 4,431 15 28 21.4 4.7 0.9 3.2 111 «««« Ashoka
Buildcon 8.86
Chambal Fertilisers and Chem. 22 21 523 -29 26 13.7 2.6 0.6 1.4 7 «««««
Best PEGs
3
Natco Pharma 23 23 1,458 28 74 13.5 3.7 0.2 0.7 6 «««««
Nesco 24 26 973 15 18 18.3 2.8 1.0 0.6 6 «««««

Top 5 stocks with the least
Zydus Lifesciences 25 25 987 14 54 23.1 4.5 0.7 0.3 56 ««««« price earnings to growth ratio
Gulf Oil Lubricants India 26 20 1,212 7 27 17.6 4.3 0.6 3.0 18 ««««« Hindalco National Aluminium
Industries Company
Ashoka Buildcon 27 28 301 26 284 8.9 3.0 0.0 0.0 9 «««««
LTIMindtree 28 34 6,037 4 5 38.7 8.5 7.8 1.1 72 «««««

0.03 0.10 0.12 0.13 0.19
DCB Bank 29 30 124 23 11 6.9 0.8 1.2 1.0 14 «««««
Indiamart Intermesh 30 29 2,312 18 36 32.7 7.5 1.0 0.9 27 «««« Ashoka

Buildcon Indus Towers
Natco Pharma
CMS Info Systems 31 31 509 19 7 23.4 4.0 2.1 1.1 27 «««««
UTI Asset Management Comp. 32 33 1,270 32 49 19.3 3.7 0.4 3.7 34 «««««
KFin Technologies 33 27 1,464 27 37 82.1 20.2 2.1 0.4 23 ««««« 4 Income generators
City Union Bank 34 32 180 10 12 12.6 1.5 4.5 0.8 28 ««««« Top 5 stocks with the highest
dividend yield (%)
Repco Home Finance 35 35 436 14 23 6.2 0.9 0.7 0.7 11 «««««
UTI Asset
3.69
KPIT Technologies 36 39 1,483 28 49 56.6 16.5 1.2 0.4 59 «««« Management Com.
Infosys 37 37 1,951 3 8 29.9 8.9 3.6 2.4 232 ««««« NMDC 3.38
Sun Pharmaceutical Industries 38 36 1,818 9 29 39.3 6.3 1.6 0.7 195 ««««« Hero MotoCorp 3.15
LG Balakrishnan & Bros 39 38 1,320 9 10 14.8 2.3 1.7 1.4 7 ««««« REC 3.02
Gulf Oil Lubricants
Voltamp Transformers 40 55 10,185 16 39 30.1 7.3 0.8 0.9 22 ««««« 2.99
India
Kewal Kiran Clothing 41 40 625 -2 13 23.8 5.0 1.8 0.3 12
Most widely held
««««
HCL Technologies 42 41 1,944 7 9 31.1 7.6 3.5 2.7 135 ««««« 5 Top 5 stocks held by most
Gland Pharma 43 42 1,789 21 47 42.5 3.3 1.1 1.1 54 ««««
number of mutual funds
Cummins India 44 59 3,395 17 43 48.1 13.5 1.1 1.1 129 «««««
Sun Pharmaceutical
Infosys
LIC Housing Finance 45 44 600 6 17 6.7 1.0 1.3 1.5 47 ««««« Industries
Emami 46 46 606 5 12 34.0 10.0 2.9 1.3 55 ««««

283 232 224 195 163
Hindalco Industries 47 50 639 9 102 11.3 1.2 0.1 0.6 130 ««««
Muthoot Finance 48 45 2,109 30 17 18.1 3.2 0.6 1.1 62 «««««
Tata Consultancy Services 49 61 4,271 5 7 32.6 15.3 4.1 1.7 163 ««««« ICICI Bank State Bank Of Tata Consultancy
India Services
Bikaji Foods International 50 57 775 23 60 66.7 14.6 1.1 0.1 28 «««««
SEE NUMBER OF MUTUAL FUNDS HOLDING THE
STOCKS IN THE ADJACENT TABLE.
*REVENUE AND EPS FIGURES BASED ON ONE-YEAR GROWTH. DATA AS ON 20 DEC 2024. SOURCE: VALUE RESEARCH
smart stats
LAGGARDS & LEADERS
ETW FUNDS 100

Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).
LAGGARDS LEADERS
BEST FUNDS TO BUILD YOUR PORTFOLIO Equity: Large cap 5-year returns
ET Wealth collaborates with Value Research to identify the top-performing 13.07 26.44
Axis Bluechip Fund BHARAT 22 ETF
funds across categories. Equity funds and equity-oriented hybrid funds are 13.12 26.28
ranked on 3-year returns while debt-oriented hybrid and income funds are PGIM India Large Cap Fund ICICI Prudential BHARAT 22 FOF
ranked on 1-year returns. 13.31 22.92

Groww Large Cap Fund SBI BSE Sensex Next 50 ETF
RETURNS (%)
Value Research Net Assets Expense
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%)
14.17 22.87
LIC MF BSE Sensex Index Plan UTI BSE Sensex Next 50 ETF
EQUITY: LARGE CAP 14.31 22.62
Nippon India Large Cap Fund ««««« 35,313.48 -2.01 4.20 22.43 21.91 20.00 1.56 Tata BSE Sensex Index Fund Nippon India ETF BSE Sensex Next 50
HDFC Top 100 Fund «««« 36,587.24 -5.78 2.24 15.58 18.49 17.38 1.60
ICICI Prudential Bluechip Fund ««««« 63,938.03 -4.03 3.86 21.22 18.43 18.96 1.44 21.91%
JM Large Cap Fund ««««« 495.06 -4.40 0.29 20.28 17.63 18.24 2.36 THE 3-YEAR
RETURN
Equity: Flexi cap 5-year returns
Baroda BNP Paribas Large Cap Fund «««« 2,402.85 -4.25 2.84 24.33 17.46 17.73 2.00
OF NIPPON
Quant Focused Fund ««««« 1,117.91 -9.89 -4.96 16.91 17.14 21.82 2.15 INDIA 12.04 31.84
DSP Nifty 50 Equal Weight Index Fund - Regular Plan «««« 1,895.15 -8.45 -0.74 14.00 16.75 19.34 0.87 LARGE CAP Axis Focused Fund Quant Flexi Cap Fund
1,316.64 FUND IS
Invesco India Largecap Fund «««« -2.43 6.09 25.91 15.91 17.99 2.09
THE 12.84 25.17
Edelweiss Large Cap Fund - Regular Plan «««« 1,100.22 -5.41 2.09 18.25 15.59 16.92 2.17 HIGHEST Aditya Birla Sun Life Bal Parag Parikh Flexi Cap Fund
Kotak Bluechip Fund - Regular Plan «««« 9,497.92 -3.19 3.78 20.55 15.04 17.19 1.75 IN ITS
CATEGORY. 13.50 24.73
Canara Robeco Bluechip Equity Fund - Regular Plan «««« 14,823.66 -2.42 5.74 21.68 14.88 17.77 1.67
LIC MF Children’s Fund JM Flexicap Fund
EQUITY: LARGE & MIDCAP 13.53 24.56
Motilal Oswal Large and Midcap Fund - Regular Plan ««««« 7,710.01 5.02 19.37 49.33 28.97 27.35 1.74 Aditya Birla Sun Life Retirement ICICI Prudential Focused Equity
UTI Large & Mid Cap Fund - Regular Plan «««« 4,048.26 -2.82 7.70 31.79 22.68 23.92 1.95
13.62 24.03
HDFC Large and Mid Cap Fund - Regular Plan «««« 23,988.97 -4.13 2.68 22.96 22.31 23.63 1.66
Motilal Oswal Focused Fund ICICI Prudential Retirement Fund
ICICI Prudential Large & Mid Cap Fund ««««« 17,694.45 -5.49 2.85 24.70 22.16 23.45 1.70
Kotak Equity Opportunities Fund - Regular Plan «««« 25,648.50 -1.94 2.01 28.44 21.48 21.81 1.59
SBI Large & Midcap Fund «««« 29,328.76 -2.61 4.60 22.58 18.54 21.54 1.61
Equity: Mid cap 3-year returns
EQUITY: FLEXI CAP
15.22 37.06
JM Flexicap Fund ««««« 5,012.19 -2.35 4.36 37.00 27.63 24.73 1.81
PGIM India Midcap Motilal Oswal Midcap Fund
HDFC Focused 30 Fund
HDFC Flexi Cap Fund
«««««
«««««
15,520.74
66,304.16
-2.00
-1.80
6.01
6.54
26.72
26.93
25.50
25.23
23.02
23.05
1.67
1.42
27.63% 18.35 29.07
THE 3-YEAR Axis Midcap Fund HDFC Mid-Cap Opportunities
Bank of India Flexi Cap Fund - Regular Plan «««« 2,048.16 1.01 4.92 34.11 23.72 — 2.01 RETURN OF
ICICI Prudential Retirement Fund - Pure Equity Plan ««««« 1,049.69 -1.09 3.27 30.26 22.91 24.03 2.14 JM FLEXI- 18.39 27.35
ICICI Prudential Focused Equity Fund «««« 9,944.67 -4.38 5.64 30.17 21.68 24.56 1.74 CAPFUND DSP Midcap Fund Nippon India Growth Fund
IS THE
Mahindra Manulife Focused Fund - Regular Plan «««« 1,879.96 -6.18 2.20 24.74 20.98 — 2.02 HIGHEST 18.71 27.14
HDFC Retirement Savings Fund Equity Plan ««««« 6,009.36 -3.37 3.54 21.52 20.57 23.93 1.78 IN ITS UTI Mid Cap Fund Edelweiss Mid Cap Fund
Franklin India Flexi Cap Fund «««« 17,808.37 -2.07 7.36 25.94 20.27 22.72 1.70 CATEGORY.
19.33 26.84
Franklin India Focused Equity Fund «««« 12,183.26 -4.70 3.15 23.08 18.64 20.66 1.76
Aditya Birla Sun Life Mid Cap HSBC Midcap Fund
Parag Parikh Flexi Cap Fund - Regular Plan ««««« 84,640.59 0.82 8.52 25.74 17.09 25.17 1.33
SBI Retirement Benefit Fund - Aggressive Plan «««« 2,773.59 -4.00 -0.26 15.72 16.59 — 1.93
360 ONE Focused Equity Fund - Regular Plan «««« 7,305.03 -5.92 0.86 19.17 15.90 21.02 1.78
Union Flexi Cap Fund «««« 2,268.75 -0.92 5.75 20.10 15.32 20.00 2.02 Equity: Small cap 3-year returns
EQUITY: MID CAP 14.57 30.22
Motilal Oswal Midcap Fund - Regular Plan ««««« 22,897.62 8.29 22.85 59.39 37.06 33.95 1.59 PGIM India Small Cap Fund Bandhan Small Cap Fund
HDFC Mid-Cap Opportunities Fund «««« 76,060.89 0.39 6.81 30.34 29.07 29.51 1.39
37.06% 18.49 28.96
Nippon India Growth Fund «««« 34,583.63 -1.11 7.27 31.57 27.35 29.82 1.59
THE 3-YEAR Aditya Birla Sun Life Small Cap Nippon India Small Cap Fund
Edelweiss Mid Cap Fund - Regular Plan «««« 8,280.35 1.85 11.47 42.29 27.14 30.99 1.73
RETURN OF 19.29 27.79
Quant Mid Cap Fund ««««« 8,941.21 -8.28 -9.38 21.68 24.23 32.52 1.73 MOTILAL
Kotak Small Cap Fund Invesco India Smallcap Fund
Kotak Emerging Equity Fund - Regular Plan «««« 52,048.91 1.34 7.53 36.95 23.93 27.83 1.42 OSWAL
SBI Magnum Midcap Fund «««« 21,454.95 -2.88 2.59 23.23 20.45 27.72 1.67
MIDCAP 20.51 27.33
FUND IS THE
ICICI Prudential Smallcap Fund Quant Small Cap Fund
EQUITY: SMALL CAP HIGHEST
IN ITS 20.51 27.13
Nippon India Small Cap Fund ««««« 61,646.36 -1.08 5.82 31.13 28.96 36.47 1.43 CATEGORY. Aditya Birla Sun Life Nifty Franklin India Smaller Companies
Tata Small Cap Fund - Regular Plan «««« 9,572.45 -0.42 12.67 35.91 26.43 33.02 1.69
EQUITY: VALUE ORIENTED

JM Value Fund «««« 1,072.74 -5.90 2.39 29.33 26.52 25.19 2.20
Hybrid: Aggressive 5-year returns
SBI Contra Fund ««««« 41,906.90 -3.89 2.86 23.16 24.44 29.97 1.50
ICICI Prudential Value Discovery Fund ««««« 48,987.78 -4.93 6.03 23.63 23.24 25.62 1.54 26.52% 12.23 27.40
THE 3-YEAR PGIM India Hybrid Equity Bank of India Mid & Small Cap Equity
Templeton India Value Fund «««« 2,199.27 -6.68 -1.41 19.78 22.04 24.00 2.05
RETURN OF
JM VALUE
12.33 24.48
EQUITY: ELSS
FUND IS Axis Children’s JM Aggressive Hybrid Fund
Motilal Oswal ELSS Tax Saver Fund - Regular Plan «««« 4,186.93 3.40 17.33 52.24 29.01 24.83 1.83
THE HIGH- 12.40 23.77
SBI Long Term Equity Fund - Regular Plan ««««« 27,847.49 -3.58 3.26 32.87 25.73 24.77 1.59 EST IN ITS
C ATEGORY. Axis Aggressive Hybrid Fund Quant Absolute Fund
HDFC ELSS Tax Saver Fund «««« 15,945.04 -3.29 4.47 24.89 23.02 21.15 1.71
Bank of India ELSS Tax Saver Fund - Regular Plan «««« 1,453.01 1.35 1.80 27.61 20.44 25.84 2.08 12.43 21.56
DSP ELSS Tax Saver Fund* «««« 16,835.11 -3.65 6.03 27.39 20.29 21.74 1.64
LIC MF Unit Linked Insurance ICICI Prudential Equity & Debt Fund
Kotak ELSS Tax Saver - Regular Plan «««« 6,232.32 -2.53 1.71 25.81 18.82 20.46 1.76 12.53 19.32
Parag Parikh ELSS Tax Saver Fund - Regular Plan ««««« 4,385.16 -1.65 8.85 22.09 18.44 23.47 1.72 Aditya Birla Sun Life Retirement Mahindra Manulife Aggressive Hybrid
Quant ELSS Tax Saver Fund ««««« 10,799.00 -11.87 -9.54 14.71 18.32 30.96 1.71
ANNUALISED RETURNS IN % AS ON 18 DEC 2024.
smart stats
ETW FUNDS 100 Value Research Net Assets

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

HSBC Equity Savings Fund ««««« 583.31 5.15 8.81 24.70 14.46 13.95 1.51
1 Top 5 SIPs
Top 5 equity schemes based
Kotak Equity Savings Fund - Regular Plan ««««« 7,973.61 -0.20 3.81 13.45 11.82 11.28 1.76
SBI Equity Savings Fund - Regular Plan «««« 5,982.38 1.45 5.13 12.97 10.87 11.41 1.42
14.46% on 10-year SIP returns
UTI Equity Savings Fund - Regular Plan «««« 641.86 -0.49 3.18 10.52 10.72 11.10 1.66 THE 3-YEAR Quant Small Cap Fund
RETURN OF
Mirae Asset Equity Savings Fund - Regular Plan «««« 1,374.07 -0.31 4.60 12.67 10.09 11.76 1.31 27.15
HSBC EQUITY
ICICI Prudential Equity Savings Fund «««« 12,436.92 0.56 4.25 9.05 8.67 8.06 0.97 SAVINGS FUND
Nippon India Small Cap Fund
IS THE
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) HIGHEST IN 26.30
SBI Magnum Children's Benefit Fund - Investment Plan ««««« 2,961.88 1.64 16.33 41.47 24.59 — 1.92 ITS CATEGORY.
Motilal Oswal Midcap Fund
JM Aggressive Hybrid Fund ««««« 719.68 -2.44 2.94 30.23 23.65 24.48 2.28
25.70
ICICI Prudential Equity & Debt Fund ««««« 40,089.04 -3.87 3.45 20.13 20.03 21.56 1.58
Bank of India Mid & Small Cap Equity & Debt Fund ««««« 1,053.73 1.86 7.45 28.72 19.31 27.40 2.23
HSBC Small Cap Fund
ICICI Prudential Retirement Fund - Hybrid Aggressive Plan «««« 720.39 -1.15 2.30 26.91 18.95 18.70 2.30 24.02
UTI Aggressive Hybrid Fund - Regular Plan «««« 6,107.34 -1.58 6.96 23.05 17.74 19.06 1.88 Edelweiss Mid Cap Fund
Edelweiss Aggressive Hybrid Fund - Regular Plan ««««« 2,267.39 -2.06 5.64 21.74 17.62 18.01 1.96
23.18
HDFC Children's Fund Regular Plan «««« 9,937.45 0.05 5.71 18.57 17.07 18.80 1.73
Kotak Equity Hybrid Fund - Regular Plan «««« 6,815.47 -0.10 6.66 24.43 16.56 18.44 1.76 SIP: SYSTEMATIC % ANNUALISED RETURNS
HDFC Retirement Savings Fund - Hybrid Equity Plan «««« 1,582.92 -2.10 3.52 17.11 15.22 17.43 2.08 INVESTMENT PLAN AS ON 18 DEC 2024
SBI Retirement Benefit Fund - Aggressive Hybrid Plan «««« 1,531.59 -3.18 0.51 14.64 14.70 — 2.10
2
Quant Absolute Fund 2,198.84 -8.24 -5.78 14.28 13.94 23.77 2.01
Top 5 SWPs
««««
HYBRID: CONSERVATIVE (DEBT-ORIENTED)

SBI Magnum Children's Benefit Fund - Savings Plan ««««« 122.53 2.15 9.35 19.64 12.32 13.94 1.21 Top 5 conservative hybrid schemes
Kotak Debt Hybrid Fund - Regular Plan «««« 3,034.62 0.17 4.33 12.88 10.05 11.62 1.66 based on 3-year SWP returns
ICICI Prudential Regular Savings Fund «««« 3,201.03 0.50 4.81 12.13 9.57 9.86 1.66
19.64%
SBI Conservative Hybrid Fund «««« 10,045.77 0.02 3.67 12.13 9.53 11.31 1.12
THE 1-YEAR Bank of India Conservative Hybrid Fund
RETURN OF
HDFC Hybrid Debt Fund «««« 3,322.28 0.16 3.69 11.33 10.31 11.00 1.76 SBI MAGNUM 13.37
Bank of India Conservative Hybrid Fund - Regular Plan ««««« 66.09 0.55 1.60 8.19 13.59 11.93 2.23 CHILDREN’S SBI Magnum Children’s Benefit Fund
BENEFIT
HYBRID: DYNAMIC ASSET ALLOCATION FUND IS THE 11.69
HDFC Balanced Advantage Fund ««««« 95,569.87 -1.03 2.93 19.44 22.75 20.30 1.35 HIGHEST Parag Parikh Conservative Hybrid Fund
IN ITS
Baroda BNP Paribas Balanced Advantage Fund «««« 4,212.51 0.03 5.39 17.66 13.79 16.30 1.89 11.42
C ATEGORY.
Edelweiss Balanced Advantage Fund - Regular Plan «««« 12,380.59 -2.43 2.97 15.79 12.04 15.18 1.69
ICICI Prudential Income Optimizer Fund
ICICI Prudential Balanced Advantage Fund «««« 60,534.08 -1.50 3.84 14.10 12.84 12.95 1.46
Tata Balanced Advantage Fund - Regular Plan «««« 10,258.19 -1.71 2.30 12.53 11.72 13.11 1.70
11.13
HDFC Hybrid Debt Fund
DEBT: FLOATER
9.89
SBI Floating Rate Debt Fund - Regular Plan «««« 1,189.45 1.66 3.92 8.27 6.60 — 0.46
Aditya Birla Sun Life Floating Rate Fund - Regular Plan ««««« 13,363.05 1.96 3.88 7.97 6.66 6.46 0.44 SWP: SYSTEMATIC % ANNUALISED RETURNS
WITHDRAWAL PLAN AS ON 18 DEC 2024
DEBT: BANKING AND PSU
Aditya Birla Sun Life Banking & PSU Debt Fund «««« 9,550.66 1.85 4.11 7.96 6.06 6.59 0.73
Mid & Small Cap: exposure

3
HDFC Banking and PSU Debt Fund - Regular Plan «««« 5,881.46 1.81 4.08 7.93 5.90 6.46 0.79
7.96%
ICICI Prudential Banking & PSU Debt Fund 9,126.63 2.00 3.92 7.89 6.34 6.69 0.74
of Flexi Cap funds
«««««
Bandhan Banking & PSU Debt Fund - Regular Plan «««« 13,506.88 1.72 3.89 7.59 5.91 6.43 0.63 THE 1-YEAR
ITI Banking and PSU Fund - Regular Plan ««««« 30.22 1.64 3.61 7.56 5.96 — 0.70
RETURN OF
ABSL BANK-
DEBT: SHORT TERM ING & PSU 80.65
FUND IS THE
HDFC Short Term Debt Fund ««««« 14,975.79 1.88 4.20 8.34 6.22 6.77 0.71 HIGHEST IN 60.04 59.52
Axis Short Duration Fund «««« 9,328.75 1.95 4.16 8.09 6.10 6.43 0.89 ITS C ATEGORY. 54.14 51.39
Aditya Birla Sun Life Short Term Fund - Regular Plan «««« 9,090.87 1.87 4.11 7.97 6.25 6.77 1.01
Sundaram Short Duration Fund ««««« 234.97 1.63 4.19 7.95 6.03 7.62 0.85
ICICI Prudential Short Term Fund ««««« 19,991.66 1.84 3.96 7.88 6.53 6.91 1.02
UTI Short Duration Fund - Regular Plan ««««« 2,639.72 1.82 3.99 7.88 6.13 7.48 0.84
Motilal Mirae LIC MF Old Bridge HSBC
DEBT: CORPORATE BOND Oswal Asset Flexi Cap Focused Focused
HDFC Corporate Bond Fund «««« 32,841.09 1.95 4.41 8.71 6.23 6.98 0.61 Focused Focused Fund Equity Fund
Aditya Birla Sun Life Corporate Bond Fund «««« 23,714.74 1.94 4.41 8.63 6.55 7.15 0.52 Fund Fund Fund
Nippon India Corporate Bond Fund ««««« 6,496.50 1.96 4.47 8.55 6.59 6.86 0.71
% OF ASSETS AS ON 30 NOV 2024
Kotak Corporate Bond Fund - Standard Plan «««« 14,332.78 1.88 4.30 8.35 6.18 6.43 0.67 Expense as on 30 November 2024
Returns as on 18 December 2024
Axis Corporate Bond Fund - Regular Plan «««« 5,999.76 1.87 4.23 8.15 6.12 6.78 0.91
Assets as on 30 November 2024
4
ICICI Prudential Corporate Bond Fund ««««« 28,992.58 1.97 4.05 8.08 6.56 6.95 0.58 Rating as on 30 November 2024
Did not find your fund here? All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Debt: Ultra Short Duration
Log on to www.wealth.economictimes.com for an exhaustive list.
Categories
Methodology
The Top 100 includes only
Debt funds with less than
18-months performance Equity: Large-cap: Funds investing at
least 80% in large cap stocks.
Hybrid: Conservative: Funds investing
10-25% in equity, and the rest in debt.
FUND 0.45 0.47 0.47 0.48
0.54
RAISER
history and equity
those funds that have a
and hybrid funds with Equity: Large & MidCap: Funds invest- Hybrid: Equity Savings: Funds investing
5- or 4-star rating from ing at least 35% each in large and at least 65% in equity and equity related
less than three-years
Value Research. The rating mid caps. instruments, and at least 10% in debt.
performance track record
42%
of a fund vis-à-vis other
are not rated. This ensures Equity: Flexi Cap: Funds investing at Hybrid: Dynamic Asset Allocation:
funds in its category is least 65% in equity with no particular Funds which dynamically manage
that all the funds have
determined by subtracting cap on large, mid or small. the asset allocation between equity
existed long enough to be
a fund’s risk score from its Equity: Mid Cap: Funds investing at
and debt.
tracked for consistency
return score. The resulting least 65% in mid caps. Debt: Short Duration: Funds with
of performance. Given Mirae HSBC Band- Baroda SBI Mag-
number is assigned stars Macaulay duration between 1 and 3 were the monthly redemptions in
the focus on long-term Equity: Small Cap: Funds investing at Asset Ul- Ultra Short han Ul- BNP Pari- num Ul-
according to the following least 65% in small caps.
years at the portfolio level. equity mutual funds in November
investing, we have tra Short Duration tra Short bas Ultra tra Short
distribution: Debt: Corporate Bond: Funds investing 2024. Such redemptions are
(Not considered only the Equity: Value Oriented: Funds fol- Duration Fund Term Short Duration
at least 72% in AA+ and above-rated
covered ‘growth’ plan of funds as lowing value/contrarian investment
corporate bonds. calculated as a percentage of the Fund Fund Duration Fund
in ETW it reinvests interim gains strategy and grouped under ‘Value’ or Fund
Top 10%
Funds 100 unlike ‘IDCW’ plan which ‘Contra’ categories as per SEBI. Debt: Banking and PSU: Funds invest-
total monthly inflows into equity
Next 22.5% listing)
ELSS: Equity: With a lock-in of three
ing at least 72% in the debt instruments funds during the month. % AS ON 30 NOV 2024
offers periodic payouts to of banks, PSUs, public financial institu-
Middle 35% years and tax benefit under Section 80C.
investors, thereby reducing tions and municipal bonds. % EXPENSE RATIO IS CHARGED ANNUALLY.
Next 22.5% NAV. The fund categories Hybrid: Aggressive: Funds investing Source: Motilal Oswal report. In November METHODOLOGY OF TOP 100 FUNDS ON
Debt: Floater: Funds investing at least
Bottom 10% are: 65-80% in equity, and the rest in debt.
58.5% in floating-rate instruments. 2023, such redemptions stood at 60%. WWW.WEALTH.ECONOMICTIMES.COM
loans and deposits

LOANS & DEPOSITS

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

Interest rate (%) What `10,000
HOME LOAN RATES
TENURE: 1 YEAR compounded qtrly will grow to With effect from October 2019, all banks have made the transition to
Bandhan Bank 8.05 10,830 external benchmarks for pricing new home loans. Most banks have
IndusInd Bank 7.75 10,798 picked the RBI repo rate as the external benchmark.
RBL Bank 7.50 10,771
Karnataka Bank 7.25 10,745 REPO RATE: 6.5%
YES Bank 7.25 10,745 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
RBL Bank 7.80 11,671 IndusInd Bank -- 8.35 9.90 8.35 9.90 Not Given
IndusInd Bank 7.75 11,659 Bank of Maharashtra 9.30 8.35 10.40 8.45 10.90 19 Oct 2024
DCB Bank 7.50 11,602 Union Bank of India 9.25 8.35 10.75 8.35 10.75 7 Oct 2024
Canara Bank 7.30 11,557
Indian Bank 9.20 8.40 9.80 8.85 10.35 5 Oct 2024
Karnataka Bank 7.25 11,545
Indian Overseas Bank 9.35 8.40 10.50 8.50 10.60 13 Oct 2023
TENURE: 3 YEARS
Bank of Baroda 9.15 8.40 10.60 8.40 10.60 14 Feb 2023
DCB Bank 7.55 12,516
Bank of India 9.35 8.40 10.70 8.40 10.85 1 Oct 2024
RBL Bank 7.50 12,497
UCO Bank 9.30 8.45 10.30 8.45 10.30 15 Mar 2023
Bandhan Bank 7.25 12,405 Central Bank of India -- 8.50 9.50 8.50 9.50 8 Dec 2022
IndusInd Bank 7.25 12,405 SBI Term Loan 9.15 8.50 9.65 8.50 9.65 5 April 2024
TENURE: 5 YEARS
IDBI Bank 9.20 8.50 10.85 8.60 12.35 12 Nov 2024
DCB Bank 7.40 14,428 Canara Bank 9.25 8.50 11.15 8.50 11.15 12 Dec 2024
Dhanlaxmi Bank 7.25 14,323 Punjab & Sind Bank 8.45 8.55 10.00 8.55 10.00 3 Oct 2024
IndusInd Bank 7.25 14,323 South Indian Bank 9.85 8.70 11.20 8.75 11.70 Not Given
YES Bank 7.25 14,323 Kotak Mahindra Bank -- 8.75 9.00 8.75 9.00 Not Given
Federal Bank 7.10 14,217 J & K Bank 9.10 8.75 9.85 8.75 9.85 10 Oct 2024
HDFC Bank -- 8.75 9.95 8.75 9.95 Not Given
Top five senior citizen bank FDs Federal Bank -- 8.80 10.25 10.20 10.30 16 Dec 2024
Interest rate (%) What `10,000 Karnataka Bank -- 8.85 10.87 8.85 10.87 1 Dec 2024
TENURE: 1 YEAR compounded qtrly will grow to
Karur Vysya Bank 9.90 9.00 11.05 9.00 11.05 19 Aug 2024
Bandhan Bank 8.55 10,883
IndusInd Bank 8.25 10,851
YES Bank 7.44 9.00 12.00 9.00 12.00 Not Given
RBL Bank 8.00 10,824 Bandhan Bank -- 9.16 13.33 9.16 13.33 Not Given
Karnataka Bank 7.75 10,798 ICICI Bank -- 9.25 9.90 9.40 10.05 Not Given
YES Bank 7.75 10,798
TENURE: 2 YEARS
RBL Bank 8.30 11,786
Your EMI for a loan of `1 lakh
IndusInd Bank 8.25 11,774 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
DCB Bank 8.00 11,717
@ 7% 1,980 1,161 899 775 707
Bandhan Bank 7.75 11,659 @ 8% 2,028 1,213 956 836 772
TENURE: 3 YEARS
DCB Bank 8.05 12,701
@ 9% 2,076 1,267 1,014 900 839
RBL Bank 8.00 12,682
@ 10% 2,125 1,322 1,075 965 909
YES Bank 8.00 12,682
Canara Bank 7.90 12,645 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375
Bandhan Bank 7.75 12,589
TENURE: 5 YEARS
YES Bank 8.00 14,859
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 7.90 14,787 Sukanya Samriddhi Yojana 8.20 250 `1.5 lakh p.a. One account per girl child 80C
Axis Bank 7.75 14,678
Dhanlaxmi Bank 7.75 14,678 Senior Citizens’ Savings Scheme 8.20 1,000 `30 lakh 5-year tenure, minimum age 60 yrs 80C
Federal Bank 7.75 14,678
Public Provident Fund 7.10 500 `1.5 lakh p.a. 15-year tenure, tax-free returns 80C
Kisan Vikas Patra 7.50 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 7.70 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to
Time deposit# 6.9-7.50 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.40 14,428
Dhanlaxmi Bank 7.25 14,323 Single `9 lakh 5-year tenure, monthly returns Nil
ost Office Monthly Income
P
IndusInd Bank 7.25 14,323 7.40 1,000
Scheme
Joint `15 lakh 5-year tenure, monthly returns Nil
YES Bank 7.25 14,323
City Union Bank 7.10 14,217 Recurring deposits 6.70 100 No limit 5-year tenure Nil
Savings account 4.00 500 No limit `10,000 interest tax-free Nil

ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 19 Dec 2024 #Benefit available only for 5-year deposit
market watch
ALTERNATIVE INVESTMENT
RETURNS MONITOR
The scope and attractiveness of alternative investments is increasing. Here’s a weekly tracker of returns from such investments. But don’t
compare these with returns from traditional investments since the proportion and purpose of alternative investments is vastly different.
Gold (995) (`) Silver (`) Platinum ($/troy ounce) WTI Crude ($/barrel)
61,836 75,709 73,652 87,035 957.28 927.65 73.44 69.72
19 DEC 2023 19 DEC 2024 19 DEC 2023 19 DEC 2024 19 DEC 2023 19 DEC 2024 19 DEC 2023 19 DEC 2024
PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER
CHANGE
u 1 WEEK -2.73% 1 WEEK -6.71% 1 WEEK -0.28% 1 WEEK -0.43%
u 1 YEAR 22.44% 1 YEAR 18.17% 1 YEAR -3.1% 1 YEAR -5.07%
PENNY STOCKS UPDATE

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

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHANGE (%) (` CR)
Teamo Prodyction HQ 2.68 24.65 97.06 49.81 346.29 230.8 JMG Corporation 7.25 6.15 -12.86 1.75 7,306.95 16.79
Bombay Talkies 7.88 21.98 74.34 0.06 -46.16 42.55 Reliance Home Finance 4.6 26.72 51.32 6.82 5,173.43 223.13
Vision Cinemas 1.9 -21.49 74.31 2.56 541.16 13.45 Kashyap Tele-Medicin. 2.61 26.09 44.2 0.07 4,353.9 12.45
WinPro Industries 3.56 -6.32 67.92 8.9 1,322.31 35.59 Vivid Mercantile 6.12 -4.52 -2.7 0.76 3,856.59 61.38
Kridhan Infra 6.77 -14.3 61.58 0.94 112.52 64.18 Nyssa Corporation 6.76 -5.72 -9.14 2.61 1,554.08 20.28
Mukta Agriculture 6.4 -10.24 54.59 0.38 145.29 13.88 Next Mediaworks 8.86 -2.85 19.73 0.48 1,349.36 59.26
Murae Organisor 2.25 5.63 53.06 40.57 392.08 209.13 WinPro Industries 3.56 -6.32 67.92 8.9 1,322.31 35.59
Reliance Home Finance 4.6 26.72 51.32 6.82 5,173.43 223.13 Agio Paper & Industries 7.65 7.75 8.66 0.03 1,216.76 12.34
Bridge Securities 8.94 4.93 51.01 3.67 208.12 34.78 Kretto Syscon 1.14 11.76 -26.92 116.76 1,096.95 71.5
Radaan Mediaworks (I) 6.68 10.05 48.78 0.48 107.82 36.17 NHC Foods 2.85 14.46 37.68 25.73 1,046.63 168.95
Top price losers Top volume losers

Harshil Agrotech 5.42 -22.24 -57.05 1.77 -96.3 275.34 Harshil Agrotech 5.42 -22.24 -57.05 1.77 -96.3 275.34
Thinkink Picturez 1.87 -7.88 -45.32 170.01 983.56 88.64 ARC Finance 1.63 -18.91 -39.63 9.11 -89.54 148.15
Mishtann Foods 8.32 -13.96 -40.99 175.33 497.64 884.25 Gautam Gems 4.92 -6.99 -3.91 2 -80.36 20.1
ARC Finance 1.63 -18.91 -39.63 9.11 -89.54 148.15 Excel Realty N Infra 1.41 -7.84 -4.73 13.32 -77.8 198.91
Kretto Syscon 1.14 11.76 -26.92 116.76 1,096.95 71.5 Advik Capital 2.33 0.87 5.43 15.25 -76.49 146.32
Shangar Decor 7.27 -22.41 -26.64 2.25 36.92 71.19 Landmarc Leisure Corpo. 2.26 22.16 6.1 1.03 -71.52 180.8
Money Masters Leasing 8.85 9.26 -19.84 2.89 8.07 88.85 Prismx Global Ventures 1.15 -1.71 6.48 4.93 -67.37 50.5
Deep Diamond India 6.14 0.66 -19.53 3.89 1.91 19.65 SRU Steels 7.28 -2.41 -0.95 8.26 -58.46 43.64
Leading Leasing Finance 8.81 -7.26 -18.95 6.26 13.73 387.29 Jackson Investments 0.79 -3.66 -5.95 16.63 -57.52 22.97
Arshiya 3.74 -7.65 -16.14 1.6 50.78 98.55 Tilak Ventures 3.34 -8.74 4.7 10.57 -55.51 148.86
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
C APITALISATION GREATER THAN OR EQUAL TO `10 CRORE. DATA AS ON 19 DEC 2024. SOURCE: ETIG DATABASE AND REUTERS-REFINITIV
mutual funds
FRANKLIN INDIA PRIMA
Seeking sustained turnaround

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

BASIC Financial 17.65
FUND BENCHMARK CATEGORY AVERAGE FACTS Capital Goods 10.62
Healthcare 10.39
36.25 DATE OF LAUNCH
31.86 31.76 12 JAN 1993 Services 7.68
29.59 27.25
23.85 25.16 23.62 24.14 CATEGORY
EQUITY Technology 6.38
TYPE
The fund’s sector positioning is
MID CAP
fairly diversified.
AUM*
AS ON 30 NOV 2024
`12,441 crore
1-YEAR 3-YEAR 5-YEAR
BENCHMARK
The fund has beaten index and peers comfortably over AS ON 17 DEC 2024 NIFTY MIDCAP 150 Top 5 stocks in portfolio (%)
the past year, but struggled in the past 3 and 5 years. TOTAL RETURN INDEX
The Federal Bank 3.97
Rolling returns (%) FUND BENCHMARK

WHAT IT Deepak Nitrite 2.41
20.79 COSTS Mphasis
Coromandel
2.33
1-YEAR International 2.24

NAV**
24.11
Persistent 2.21
GROWTH OPTION Systems
`2821.7187
18.70 The fund portfolio is highly diversified
IDCW
3-YEAR with modest positions in its top bets.
20.13 `104.3188
MINIMUM INVESTMENT AS ON 30 NOV 2024
`5,000
17.21
5-YEAR MINIMUM SIP AMOUNT
17.22 `500 Recent portfolio changes
EXPENSE RATIO (%)
# New entrants
1.76 PNB Housing Finance, Tata Power
The fund’s long-term track record indicates chronic AS ON 17 DEC 2024
underperformance across time frames. EXIT LOAD Company (Sep)

Note: Different benchmark (BSE 150 MidCap TRI) is used due to non availability of stated benchmark data.
1% for redemption Numero Uno International, Waaree
Returns are rolled daily over past decade for relevant time frames. within 365 days Energies (Oct)
*AS ON 30 NOV 2024
**AS ON 17 DEC 2024
WHERE THE FUND INVESTS #AS ON 30 NOV 2024 Complete exits

L&T Finance (Oct)
Portfolio asset Numero Uno International (Nov)
Fund
allocation
style box
Growth Blend Value How risky is it?
Fund Category Index
Equity
Large
97.83%
Standard Deviation 14.49 14.80 15.47
CAPITALISATION
Large cap 11.49

Mid cap 68.93
Medium
Sharpe Ratio 1.07 1.05 1.08
FUND
Small cap 19.58
Mean Return 21.40 21.41 22.66
MANAGER
Cash 2.17
Small
BASED ON 3-YEAR PERFORMANCE.

Debt 0
INVESTMENT STYLE AKHIL KALLURI / The fund’s risk-return profile is similar
R JANAKIRAMAN (PIC) to its category average.
The fund runs a sizeable presence in large- and AS ON 30 NOV 2024
AS ON 30 NOV 2024 2 YEARS, 8 MONTHS /
small-caps, apart from its mid-cap tilt. 16 YEARS, 8 MONTHS Source: Value Research
Should Apart from its mid-cap tilt,

the fund runs a sizeable
The portfolio is now heavily
diversified, and takes modest
has dented its long-term
return profile. While it has
You allocation to both large- and
small-caps. The preference
positions even in its top bets.
The fund saw its return profile
exhibited a turnaround this
year, the fund needs to sustain
Buy is for high quality franchises
exhibiting capital efficiency.
dip sharply from 2020, lagging
behind index and peers. This
this performance for longer to
merit consideration.
pick of the week

CMS Info Systems: Steady progress

Strong entry barriers, diversification, technology prowess and a healthy balance sheet to drive growth.
T
he cash management company reported a decent entry barriers, which bode well for the company. Fundamentals
performance in the September 2024 quarter, with The managed services segment has seen weak margins in CONSENSUS
ACTUAL
15% year-on-year revenue growth. The performance the past few quarters due to delays in contracts awarded by ESTIMATE
was supported by significant growth in the managed PSU banks due to integration issues. However, the manage- 2022-23 2023-24 2024-25 2025-26
services segment (36% year-on-year) and moderate growth ment expects a revival in the segment in the second half of Revenue (` cr) 1,914.73 2,264.68 2,613.10 2,995.90
(8% year-on-year) in the cash management services segment. 2024-25. An Elara Capital report of October 2024 says that EBIT (` cr) 537.73 599.47 677.20 787.45
However, margins (both EBITDA and PAT) contracted the robust order pipeline and banking sector capex (10,000 Net profit/loss (` cr) 297.24 347.14 400.30 469.05
quarter-on-quarter and year-on-year amid lower realisa- new ATMs and 40,000 replacements) are expected to fuel 21%
EPS (`) 18.67 21.39 23.68 28.40
tions in the cash management segment, execution delays, growth in the managed services segment over the next three
and lower transactions in Brown
Label ATMs (BLA). Analysts be-
years.
In addition, AI remote monitoring
Valuations PBV PE
DIVIDEND
YIELD (%)
lieve that such margin compression Analysts’ views solutions provide significant growth CMS Info Systems 4.33 23.38 1.11
is temporary and expect perfor- opportunities. Currently, it contributes SIS 2.21 33.65 0.00
mance acceleration in the second 6-7% to the revenue and the manage- Indegene 10.15 54.5 0.00
half of the current financial year.
6 ment aims to increase its share to 10% RattanIndia Enterprises 11.14 13.03 0.00
Buy
The company provides cash over the next 2-3 years. A JM Financial Updater Services 3.22 78.15 0.00
logistics services, including ATM report released in November 2024 says
and retail cash management and
cash in transit. It is expanding into
that remote monitoring is expected to
alleviate de-growth risks by driving
Brokerage calls TARGET
RECO DATE RESEARCH HOUSE ADVICE PRICE (`)
managed services like banking the company’s diversification story
18 Nov 2024 JM Financial Buy 580
automation, ATM software, and re- away from ATMs into quick commerce,
mote monitoring. As a key partner hospitality, BPO, and other non-BFSI 29 Oct 2024 Elara Capital Buy 720
for banks, NBFCs, retailers, and segments. The stock has significantly Asian Markets
CMS Info Systems is expanding into managed 29 Oct 2024 Buy 590
e-commerce firms, CMS Info lever- outperformed the market benchmark Securities
services like banking automation and ATM software.
ages its network, technology, and in the last one year with 32.4% returns 28 Oct 2024 DAM Capital Buy 620
solution-focused approach to tackle complex challenges. compared to BSE Sensex with 10.9% returns.
Expansion of branch infrastructure (including ATMs) by
banks to improve growth and outsourcing of cash manage-
Selection methodology: We pick the stock that has shown
the maximum increase in ‘consensus analyst rating’ during
Relative performance 132.4
100 MARKET PRICE: `516.05 124.3
ment by the retail sector are the key growth drivers for the the past three months. The consensus rating is arrived at by
company. Its business model supports long-term growth as averaging all analyst recommendations after attributing
different segments are poised for decent growth. Extensive weights to each of them (1 for strong buy, 2 for buy, 3 for hold, 4
pan India network, high route density and scale, robust for sell, 5 for strong sell). An improvement in consensus ana-
SENSEX
technology and risk management (mitigate manual risks lyst rating indicates that the analysts are getting bullish on 110.9
through automation and customised in-house solutions) is the stock. Only stocks with more than five analysts covering
helping strengthen the competitive position in the cash man- them are considered. You can see similar consensus analyst
19 DEC 2023 CMS Info Systems ET Infotech 19 DEC 2024
agement segment. Also, lower competition due to higher com- rating changes during the past week in ETW 50 table.
CMS Info Systems is compared with ET Infotech and BSE Sensex. Stock and index
pliance costs amid RBI operating regulations creates strong —Sameer Bhardwaj values normalised to a base of 100. Source: ETIG and Reuters-Refinitiv
WHAT EXPERTS ADVISE

BUY RESEARCH STOCK 1-YEAR TARGET POTENTIAL
STOCK ADVICE COMMENT
HOUSE PRICE (`) PRICE (`) UPSIDE (%)
Initiate with ‘buy’ due to the strong growth prospects of its CDMO business, led by newly commercialised mol-
Piramal Pharma JM Financial Buy 249 340 36.5 ecules and expected recovery in the US biotech sector. Also, its differentiated offerings, global manufacturing
presence and end-to-end capabilities are the key strongholds.
Maintain ‘buy’ despite near-term margin pressures as distribution improvement, focus on rural markets and
Jyothy Laboratories YES Securities Buy 410 500 22.0 cost optimisation will support growth in the future. Also, premiumisation, product development and comfort-
able valuations are the other positives.
Upgrade to ‘buy’ as earnings and RoE are expected to grow significantly in 2026-27 led by a strong order back-
Power Mech Projects Geojit Buy 2,753 3,330 21.0 log and contributions from MDO business. Margins will be backed by profitable segments like O&M and mining.
Maintain ‘buy’ given its strong growth outlook led by the scale-up of crop protection business, improvement
Coromandel International Antique Stock Broking Buy 1,820 2,190 20.3 in backward integration and foray into specialty chemicals, CDMO and new-age drone business.
Retain ‘buy’ as acquisition of Core Diagnostics will unlock synergies by enhancing cancer testing facilities and
Metropolis Healthcare Nuvama Buy 2,225 2,650 19.1 strengthening its presence in the North and East India. Also, the deal is reasonably valued and EPS accretive (in
2025-26 and 2026-27).
Reiterate ‘buy’ due to the better prospects of the India business segment led by a likely uptick in CVs and PVs
CIE Automotive India Motilal Oswal Buy 486 575 18.3 in 2025-26. Also, net debt-free status and improving return trajectory are the other positives.
SELL RESEARCH STOCK 1-YEAR TARGET POTENTIAL

STOCK ADVICE COMMENT
HOUSE PRICE* (`) PRICE (`) DOWNSIDE (%)
Maintain cautious stance given the near-term weakness and evolving industry structure that could have
KPIT Technologies Kotak Securities Sell 1,549 1,150 -25.8 some implications on the addressable opportunity. Initiatives to improve US revenues will take time.
tax optimiser
Utilise LTA to claim exemption

Sudhir Kaushik of TaxSpanner.com tells readers how they can
optimise their tax by rejigging their incomes and investments.
P
une-based finance profes-
sional Sharad Agarwal earns
well, but also pays a very
high tax because he is not
able to claim exemption for INCOME
some perks. TaxSpanner estimates that
Agarwal can save more than `1.4 lakh
FROM EMPLOYER
in tax if his pay structure is rejigged to
include some tax-free perks, if he claims
exemption for leave travel allowance
INCOME HEAD CURRENT SUGGESTED
(LTA), and shifts from fixed deposits to
arbitrage funds. Basic salary 16,54,824 16,54,824 Reduce this taxable
Agarwal gets an LTA of `1.65 lakh,
component of the
but he is not able to travel and claim House rent allowance 8,27,412 8,27,412 salary.
exemption for it. LTA is exempt from
Special allowance 10,14,276 7,47,876
tax if claimed twice in a block of four
years. If Agarwal utilises that amount Conveyance allowance 19,200 19,200
to travel on a holiday, his tax can reduce
by almost `52,000. Books and periodicals 24,000 24,000 This is tax-free
To reduce his tax further, Agarwal subject to actual
should ask his company for gadget al-
Communication allowance 24,000 24000 usage and
reasonable limits.
lowance. Under Section 17(2), gadgets Food coupons 0 26,400
and appliances bought in the name of Items bought for
the company and given to the employee Fuel reimbursement 28,800 28,800 personal use are
for personal use are taxed at 10% of taxed at 10% of the
their value. If Agarwal puchases items
Gadget allowance 2,40,000 value.
worth `2.4 lakh in a year (`20,000 per Leave travel allowance 1,65,480 1,65,480 Utilise this perk. It
month), his tax can reduce by around is exempt if claimed
`75,000. Performance incentive 3,00,000 3,00,000 twice in four years.
Although his salary structure is al-
ready packed with tax-free allowances, Employer's contribution to PF 1,98,578 1,98,578
Agarwal should explore the possibility Contribution to NPS under Sec 80CCD(2) 1,65,482 1,65,482
of getting meal coupons. Meal coupons
worth `26,400 (`2,200 per month) will TOTAL 44,22,052 44,22,052
reduce his tax by about `8,300. There is
no need for paperwork because employ-
ee benefit solutions such as Zaggle Save INCOME FROM OTHER SOURCES Shift from
You will save
can manage these perks digitally.
Agarwal lives in a rented house and
claims an exemption for the house rent
Interest income 22,000 0
fixed
deposits to `1.28 lakh
mutual funds in tax if you
allowance. He also claims deduction Capital gains 0 0 to avoid stay in the old
for health insurance for himself and yearly tax.
Rental income 0 0 regime.
his mother, and for contributions to the
NPS. Given these deductions and ex- TOTAL 22,000 0
emptions, he is better off sticking with
the old tax regime. All figures are in `
Denotes suggestion to increase Denotes suggestion to reduce
Tax-saving investments
INVESTMENT CURRENT SUGGESTED
OPTION (`) (`)
Provident Fund 1,65,482 1,65,482

Sharad Agarwal’s tax
PPF 1,50,000 1,50,000 TAX ON TAX ON TOTAL TAX SAVED WRITE
TAX ON INTEREST CAPITAL TO US
NPS under Sec 80CCD(1b)
TOTAL ADMISSIBLE
50,000
2,00,000
50,000
2,00,000
SALARY INCOME
CURRENT
GAINS
`1,41,611 FOR HELP
PER YEAR Paying too much
`8,19,840 `6,864 0 tax? Write to us
Other deductions TAX RATIO
at etwealth@
timesgroup.com with
EXEMPTION OR CURRENT SUGGESTED
`8,26,704 (Total tax as % of annual income)
‘Optimise my tax’
DEDUCTION (`) (`) as the subject. Our
EXISTING SUGGESTED experts will tell you
how to reduce your
HRA exemption 4,28,500 4,28,500 SUGGESTED tax by rejigging your
Medical insurance 50,000 50,000 `6,85,093 0 0
18.6% 15.5% pay and investments.
TOTAL ADMISSIBLE 4,78,500 4,78,500 `6,85,093

mutual funds
Aggressive investing PORTFOLIO

DOCTOR
makes goals easy to reach Not many

investors
BCCL
know
Nagendra Singh Rathore is saving for multiple goals. Here’s what the doctor has advised him. whether
1 2 3 4 5 6 7 they have
FIRST SON’S
FIRST SON’S
SECOND SON’S FIRST SON’S
SECOND SON’S
SECOND SON’S RETIREMENT invested in
POST- POST-
GRADUATION:
GRADUATION:
GRADUATION: WEDDING:
GRADUATION:
WEDDING: INCOME: 27 years the right
25 years 29 years
GOALS
17 years 21 years 25 years CURRENT NEED: funds and if their

21 years
PRESENT COST: PRESENT COST: PRESENT COST: PRESENT COST: `1.5 crore
PRESENT COST: PRESENT COST: fund portfolio is on
`20 lakh `20 lakh `50 lakh `30 lakh `50 lakh (`60,000 lakh a month)
`30 lakh
FUTURE COST: FUTURE COST: FUTURE COST:
FUTURE COST:
FUTURE COST: CORPUS NEEDED: track. The Portfolio
FUTURE COST: `2.71 crore `3.55 crore
`1.01 crore `1.48 crore `3.25 crore `9.32 crore Doctor assesses the
`2.22 crore
health of the fund
PORTFOLIO INVESTMENT
AMOUNT EXISTING RECOMMENDED ACTION NEW SIP portfolio, examines the
CHECK-UP INVESTED (`) SIP (`) (`)
schemes and their
Has been investing in
ICICI Prudential Equity & Debt 89,843
Continue SIPs in this aggressive hybrid fund. Keep
4,000 increasing by 10% every year. 4,000 suitability with regard to
equity and hybrid
funds for 4-5 years. 1 the goals and, if
Continue SIPs in this outstanding mid-cap fund.
Has been hiking SIPs
Kotak Emerging Equity 52,040 3,500 Keep increasing by 10% every year. 3,500 required, recommends
by 10% every year.
Continue SIPs in this outperforming large-cap fund.
corrective measures. The
ICICI Prudential Bluechip 1,29,802 5,000 Keep increasing by 10% every year. 5,000
Regular investing advice given is based on
and aggressive allo- 2
cation have built a HDFC Top 100 42,653
Increase SIP amount to `3,500 in this outstanding
2,000 large-cap fund. Keep increasing by 10% every year. 3,500
the performance of the
sizeable corpus. funds, the risk profile of
Fund has underperformed. Shift to SBI Multicap for
Goals are ambitious Axis Midcap 1,53,597 0 better returns and portfolio consolidation. 0 the investor as well as
but can be reached
comfortably.
3
This new fund has done well. Continue SIPs and
his financial goals.
SBI Multicap 25,600 5,000 keep increasing by 10% every year. 5,000
Tends to invest in
schemes and moves Continue SIPs in this outperforming value fund.
Assumptions used
ICICI Prudential Value Discovery 25,805 5,000 Keep increasing by 10% every year. 5,000
to new ones. As a re-
sult, he is holding too 4 in the calculations
Restart SIPs of `2,000 in this outperforming large-
many schemes in the SBI Large & Midcap 20,234 0 and mid-cap fund. Hike by 10% every year. 2,000
INFLATION
portfolio. Education For all
Investing too much in SBI Nifty Index 17,559 0 These funds are cluttering the portfolio. Shift 0 expenses other goals
physical gold. Cut to corpus to HDFC Midcap Opportunities to
`10,000 per month.
SBI Bluechip 18,208 0
consolidate holdings.
0 10% 7%
Also has several life
5
insurance plans. Use Hike SIPs to `4,000 in this outperforming mid-cap RETURNS
payouts to invest for HDFC Midcap Opportunities 18,400 3,500 fund. Keep increasing by 10% every year. 4,000
Equity funds Debt options
retirement.
Restart SIPs of `3,000 in this outperforming small-
Canara Robeco Small Cap 15,786 0 3,000
Note from
the doctor
cap fund. Keep increasing by 10% every year.
12% 8%
Shift corpus to Quant Small Cap after lock-in period
Quant Tax Plan 15,762 0 ends to consolidate holdings.
0
Consolidate portfo-
lio by junking lag- Restart SIPs of `2,000 in this outstanding small-
gards and small 6 Quant Small Cap 17,286 0 cap fund. Hike by 10% every year. 2,000 PORTFOLIOS
ANALYSED BY
holdings.
Hike SIPs to `3,000 in this outperforming flexi-cap RAJ KHOSLA,
Build emergency JM Flexicap 8,132 2,000 fund. Keep increasing by 10% every year. 3,000
Managing Director
fund to tide over un- and Founder,
foreseen expenses. Sovereign Gold Bond 16,132 0 Hold till maturity. 0 MyMoneyMantra
Buy life insurance
cover of at least `2 Reduce investment in physical gold. Returns are
crore to safeguard
Physical gold 1,81,734 34,160 not very impressive in the long term. 10,000
WRITE
goals.
Direct investments in stocks 94,578
Direct stocks are very risky. Consider shifting to a
0 mutual fund instead. 0
TO US
In NPS, have bal- FOR HELP
anced allocation to Start SIPs of `10,000 in this short-term debt If you want your portfolio examined,
equity and debt 7 ICICI Prudential Short Term 0 0 scheme to build an emergency fund. 10,000 write to etwealth@timesgroup.com
funds. with ‘Portfolio Doctor’ as the subject.
Start SIPs of `5,000 in this outstanding flexi-cap Mention the following information:
Review investments HDFC Retirement Savings Equity 0 0 fund. Hike by 5% every year. 5,000
l N ames of the funds you hold.
and rebalance at l Current value of the investment.
Keep contributing and do not withdraw before
least once in a year. Public Provident Fund 7,19,024 12,500 retirement.
12,500 l I f you have SIPs running in any
of them.
Reduce risk when l T
he financial goals for which you
Keep contributing to this low-cost scheme to save
goal is near so that National Pension System 39,56,234 37,000 for retirement.
37,000 invested.
you don’t miss the l H
ow much you need for each
, financial goal.
target. The goals can be reached using the mutual
TOTAL `56,18,409 `1,13,660 funds marked in the same colour. `1,14,500 l H
ow far away is each goal.
NG 3.7 PubDate: 23-12-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWDPBP User: suresh.kumar Time: 12-20-2024 18:56 Color:
your feedback & more...

Readers’ response, online and in print, to ET Wealth stories has been enlightening.
We pick some that add information and perspective to our articles from previous issues.
Dhirendra Kumar’s article ‘Bitcoin’s flect the market’s reality?
Valuable market
surge and risks’ was informative and Sarath Kumar
logical. Real wealth is created by own-
guidance
ing productive assets, such as compa- The article ‘Build a resilient career’ by
nies that develop valuable products and Devashish Chakravarty made for an insightful
services, generate profits, and deliver read. In today’s highly competitive environ-
real returns. Speculative bubbles The cover story ‘9 stocks that ment, keeping one’s job is as challenging as
do not alter this fundamental truth. analysts are bullish on’ effectively landing one. Employees must continually raise
Following this principle can protect us explained the turbulence in the the bar on their performance to stay in the good
from the pitfalls of speculative bubbles, Indian markets, backed by expert books of management, which is vital for job se-
which inevitably burst. advice. Poor manufacturing growth curity. While no one is indispensable, ‘the show
Hemanth D. Pai and high consumer inflation were must go on’ remains a timeless dictum, and
identified as major headwinds. employees must strive to demonstrate their
Analysts recommend focusing on
Regarding Dhirendra Kumar’s article, indispensability. However, being indispensable
quality companies with reasonable
I would like to say that Bitcoin was not is not just about skill. Dexterity without loyalty
valuations. Overall, the article
created to circumvent Wall Street. It was holds little value for any organisation.
provided a valuable perspective on
to help bypass commercial and central S. Ramakrishnasayee
market trends and highlighted safe
banks by functioning as a peer-to-peer
investment options.
electronic cash system without interme- Yash Pal The article on bridal wear rentals highlighted
diaries. Bitcoin has proven to be a hedge a practical solution for balancing style, sus-
against inflation. Additionally, it can tainability and affordability amid soaring
be lent to generate returns in the same wedding costs. The circular economy model,
way that real estate is rented out. In this I’m not certain how long the dot-com certainly interesting. Dhirendra Kumar enabling individuals to monetise pre-loved at-
sense, Bitcoin can be viewed as digital bubble lasted, maybe two or three years. has been warning against buying Bitcoin tires, is a win-win proposition for both renters
property. However, the fact that Bitcoin ‘bubble’ has since its price was $100. Is it possible that and lenders.
Shubham Tibrewal persisted for 16 years seems unusual, and the author’s viewpoint doesn’t fully re- Ritika Mathur
Interest rate risk

If you are confused by personal finance terms, jargon and calculations, here’s a series to
simplify and deconstruct these for you. In the 30th part of this series, Riju Mehta
explains the meaning of interest rate risk and how they can manage it.
What is interest rate risk? How to manage risk

It’s the risk of a fall or depreciation bond that is maturing in one year will
Diversification Floating rate bonds
in value of an asset due to the Instead of having only fixed income in the The interest rate of floating rate bonds
have to hold it only for a year before
fluctuation of interest rates. This portfolio, opt for assets or funds with both varies with rate fluctuations and the coupon
reinvesting in a bond with a higher
risk is typically associated with equity and bonds as equity is less impacted changes according to the prevailing interest
rate. On the other hand, an investor
fixed-income securities like bonds by rate fluctuations. You could also pick rate. So, unlike fixed rate bonds, these help
with a bond maturing in 8-10 years
and certificates because these are bonds with varying maturities to spread the reduce the risk of fall in the value of bonds.
will be stuck with it for a much longer
impacted directly, compared to risk in your fixed-income portfolio.
period and it’s price in the secondary
equity, where the impact is not direct. market will fall significantly. Hedging
Short tenure securities Employing various hedging strategies by
Interest rates are inversely A bond with longer duration faces Since the risk associated with short buying derivative instruments, such as
proportional to bond prices, which a greater probability of rate change duration bonds is much lower than those options and interest rate swaps, can help
means that if interest rates rise, bond compared to the one with shorter with longer duration, picking the former cut the risk. However, those not well-versed
prices fall, and vice versa. This is duration and, hence, the risk for the can reduce the risk in your fixed-income in derivatives should try avoiding this
because when rates rise, the demand former is higher. portfolio. strategy.
for new bonds offering higher rates
rises and that for older bonds with
lower rates falls. To be able to
compete with bonds offering higher
rates, the prices of older bonds drop.
The interest rate risk is measured in
GETTY IMAGES
terms of fixed-income duration, with

longer duration bonds facing greater
risk due to their higher sensitivity
to rate fluctuations. For instance, if
interest rates rise, an investor with a
The Economic Times Wealth is available at an invitation price of ` 8/issue. To book your copy, contact your newspaper vendor or call 1800 1200 004.
The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times Wealth will not be liable for any direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions.
Published for the proprietors, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110 002, Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP. Regd. Office: Dr Dadabhai Naoroji
Road, Mumbai 400 001. Editor: Babar Zaidi (Responsible for selection of news under PRB Act). © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved.RNI No. DELENG/2011/37994. MADE IN NEW DELHI

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NG 3.7 PubDate: 23-12-2024 Zone: ETWealthDelhi Edition: 1 Page: DETWDFP User: suresh.

kumar Time: 12-20-2024 19:28 Color:

THE ECONOMIC TIMES ARE FINANCIAL

HOW NOT “AS A NATION,

By Sanket Dhanorkar, Riju Mehta needed to push people towards a scheme

More incentives for term insurance Reward taxpayers with life

Do away with double ET Wealth

Reduce TCS on foreign

Give tax relief to Deduction of health cover premium

Don’t remove the Rationalise

Exempt TDS payers from filing tax returns Simplify capital

Extend study loan

Lavish weddings under taxman’s lens

Are financial calculators reliable?

quite intuitive, helping you distill

Minor deviations from

estimates can upset goal math

“As a nation, we have only just

Dinesh Thakkar Do you believe the market has borrowed

I am 30 years old. I recently got an individual My mother-in-law received a flat free of

Please send your feedback to

Oil marketing firms gear up

amid the excess supply and demand

Factors to consider Log in for enrolment

while taking home loan

How to avoid financial abuse

all control over money. If the operational

In 3 yrs, 30% bigger health claims

`62,014 `70,152 `81,025

Highest claim share

Urban Maharashtra, Uttar Pradesh, Delhi, Karnataka,

54% motor insurance is the rise in claims

ET WEALTH TOP 50 STOCKS

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

Indus Towers 6 6 348 5 128 12.1 3.2 0.1 0.0 72 «««««

UTI Asset 31.7

NMDC 12 14 216 16 6 10.3 2.2 0.3 3.4 51 «««««

Karur Vysya Bank 13 11 228 22 32 10.2 1.7 0.8 1.0 52 «««««

Nesco 24 26 973 15 18 18.3 2.8 1.0 0.6 6 «««««

LTIMindtree 28 34 6,037 4 5 38.7 8.5 7.8 1.1 72 «««««

Indiamart Intermesh 30 29 2,312 18 36 32.7 7.5 1.0 0.9 27 «««« Ashoka

Emami 46 46 606 5 12 34.0 10.0 2.9 1.3 55 ««««

Muthoot Finance 48 45 2,109 30 17 18.1 3.2 0.6 1.1 62 «««««

LAGGARDS & LEADERS

ETW FUNDS 100

ranked on 1-year returns. 13.31 22.92

EQUITY: VALUE ORIENTED

ETW FUNDS 100 Value Research Net Assets

HYBRID: EQUITY SAVINGS

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

Mid & Small Cap: exposure

loans and deposits

LOANS & DEPOSITS

Top five bank FDs

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

PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER

PENNY STOCKS UPDATE

Top price gainers Top volume gainers

Top price losers Top volume losers

FRANKLIN INDIA PRIMA