Month: July 2021

Axis Bluechip Fund Direct Plan Growth

Among the Bluechip fund category, Axis Bluechip fund has undoubtedly performed well since its existence from the last 8 years. The rationale behind this is that Axis Bluechip Fund Direct Plan-Growth returns over the last year are 40.14 percent. According to Value Research statistics, it has generated 16.80 percent average yearly returns since its inception. The fund has equity allocation across Financial, Technology, Services, Healthcare, FMCG sectors. Infosys Ltd., HDFC Bank Ltd., Bajaj Finance Ltd., Tata Consultancy Services Ltd., and Avenue Supermarts Ltd. are the fund’s top five holdings.

This fund has been rated by 5-star by both Morningstar and Value Research making it a decent bet for long-term capital appreciation. The fund currently has Rs 28,233 Cr in asset under management (AUM), and the current NAV as of 20 July 2021 is Rs 46.33. The fund has a low expense ratio of 0.49% and an exit load of 1%. One can start investing in this fund with a minimum amount of Rs 500 by the most preferred route Systematic Investment Plan (SIP).

Canara Robeco Emerging Equities Fund Direct Growth

Canara Robeco Emerging Equities Fund Direct-Growth is a Large & MidCap mutual fund launched by the fund house Canara Robeco Mutual Fund in January 2013. This fund has also received a 5-star rating from both Morningstar and Value Research, indicating that it has the potential to generate risk-adjusted returns. Canara Robeco Emerging Equities Fund Direct-Growth returns for the last year were 59.88 percent, according to Value Research statistics.

It has generated an average yearly return of 22.81 percent since its inception. The financial, automobile, healthcare, technology, and chemical sectors make up the majority of the fund’s holdings. HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Axis Bank Ltd., and Bajaj Finance Ltd. are among the top five holdings of the fund. The fund has an expense ratio of 0.64% and SIP can be started with a minimum amount of Rs 1000. The fund currently has Rs 9,633 Crore in assets under management (AUM) and a NAV of Rs 161.33 as of July 20, 2021. If units are redeemed within one year of investment, the fund imposes a 1% exit load.

Nippon India Short Term Fund Direct Growth

Nippon India Short Term Fund Direct-Growth is a Short Duration mutual fund scheme that was established in January 2013 by the fund house Nippon India Mutual Fund. The 1-year returns for Nippon India Short Term Fund Direct-Growth are 6.42 percent. According to Value Research, it has provided an average yearly return of 8.79 percent since its inception. The debt allocation of the fund is spread throughout the Engineering, Construction, Sovereign, Energy, and Financial sectors. India Infradebt Ltd., Reserve Bank of India, Housing Development Finance Corpn. Ltd., GOI, and India Grid Trust are among the fund’s major holdings.

The fund’s expense ratio is 0.33 percent, which is comparable to other funds in the same category. As of July 20, 2021, the fund has Rs 9,249 crore in assets under management (AUM) and a NAV of Rs 44.04. The reason behind picking this fund for you is the fund has no exit load and you can start SIP per month with Rs 500.

Top Performing Mutual Funds In India

Based on the ratings and returns, here are the three best-performing mutual funds in 2021 to start SIP.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

1. Reliance Infrastructure:

This is an Anil Dhirubai Ambani Group company, the company is primarily engaged in infra development and its core sectors include energy, infrastructure, E&C and defence. The company’s turnover as per the company website is Rs. 18,852 crore.

The company bagged ‘Best Metro of India 2016’ Award for having developed a marvel in Mumbai Metro one.

Stock price journey of Reliance Infra:

The company stock as in 2018 registered an all time high of Rs. 2641 and the last traded stock price of Reliance Infra is Rs. 76.85 per share, while its 52-week high and low are Rs. 109 and Rs. 19.2, respectively. The stock is part of the S&P BSe Small cap stock and is categorized in the ‘T’ category.

What weighed on Reliance Infrastructure stock?

For the last quarter of FY19, the company posted a huge loss of over Rs. 3000 crore and since then the stock has come crashing down. Now even as the group’s companies’ are under NCLT resolution there is a belief that recovery shall be much higher than what is owed to creditors and this is creating fresh interest for the stock.

Financials

As of now, regarding the company’s financials, its debt to equity is well below 1 i.e. a big positive, also the debtors turnover ratio is the highest at 4.6 times.

2. PC Jeweller:

It is the finest jewellery discovery platform offering a widest collection of curated designs to fit every occasion. The company takes pride in its policies that provide easy returns, free shipping, BIS Hallmark, 100% certified jewellery, life-time exchange, best and transparent prices and unique designs all under one roof.

Stock price journey

The jewellery company made its Indian stock market debut in the year 2012 and its price was fixed at Rs. 135 per share. The stock in the year 2018 made an all time high price of Rs. 600 and was last at July 20, 2021 quoted at a price of Rs. 26.40.

There were 2 concerns seen at the company then which led to a drag in its share price first there was a speculation made that the company’s promoters might have hidden information on its business association with Vakrangee. Also, one of the promoter in the company gifted his stake in the company to family members via off market transactions.

Latest financials and other metrics

For the June ended quarter the number of FIIs/FPIs in both number and % terms have increased their holding in the scrip, indicating positive momentum. The firm for the quarter ended March of FY21 posted positive financial results and for the complete financial year 2021, Profit figure came in at Rs. 60.84 crore. Another has been positive growth in PBT less OI of 186%.

3. Yes Bank:

Yes Bank was among the leading private sector bank in the country in existence since the year 2004. The commercial bank is into offering a host of services including investment banking, merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly owned subsidiaries of the Bank.

What played havoc for Yes Bank scrip?

In mid 2019, Yes Bank scrip saw a lot of downgrades and even Moody’s placed private lender’s foreign currency issuer rating of Ba1 under review for downgrade. And from an all time high reached in Yes Bank’s scrip of Rs. 404 in 2018 again, the stock came tumbling down to Rs. 12.95 per share as of last trade.

Primarily the Moody’s note indicated that the liquidity pressure on the domestic finance firms is expected to impact the credit profile of YES Bank since it has substantial exposure to the weaker firms in the sector.

But later the crisis-ridden lender was rescued by RBI’s action plan and SBI led the bank’s recovery with a number of other banks taking the charge. Even after the recovery plan in place, the bank’s scrip didn’t saw much revival and it is substantially down from its all time high.

Yes Bank’s 52-week high and 52-week low price has been Rs. 20.75 and Rs. 11.1, respectively.

Financials still weak for the lender

– Net profit is -Rs. 3787.75 crore has fallen at 244%.

– NII is the lowest at Rs.968 crore

– Credit deposit ratio is also lowest at 102%

4. Vodafone Idea:

The telecom provider is an Aditya Birla Group and Vodafone Group entity offering a host of voice and data services across 2G, 3G and 4G solutions. The company is contributing immensely to the nation’s Digital India mission.

Stock market journey of Vodafone Idea shares

Vodafone Idea made its listing on the bourses in 2007 at a issue price fixed between Rs. 65- 75 and the stock hit its all time high of Rs. 123 in 2015 but now as of last trade as on July 20, 2021 settled at a price of Rs. 9 per share on the NSE. The stock’s 52 week low and high are Rs. 8.9 and Rs. 9.35.

Financials weak yet fund managers bet on this cash-starved telecom provider

For the March ended quarter of FY21, the firm’s loss expanded to more than Rs. 7000 crore. Nonetheless, despite precarious financials, mutual funds with the highest asset base such as HDFC AMC and Aditya Birla have bet on the stock and added the Vodafone Idea in their kitty. In fact some other mutual funds have betted on the stock, implying mutual fund’s positive outlook on the stock.

Positives seen for the scrip

The company is gearing to raise funds and is in talks with investors to keep the firm as a going concern.

Rising net cash flow and cash from its operations

Conclusion:

So, as we have seen these scrips crashing down heavily from their all time highs, investors need to time to time evaluate their portfolio and get out of such stocks and hence this is where portfolio rebalancing comes to play.

GoodReturns.in

What is Dearness Allowance and Dearness Relief?

The Dearness Benefit is an inflation-adjusted allowance granted to government employees, public sector employees, and retirees. In order to offset the impact of inflation on people, Dearness Allowance is computed as a percentage of an Indian citizen’s basic wage.

Dearness Relief is calculated using the pensioner’s basic pension/family pension. The Dearness Relief on the pension is adjusted and paid by the Pension Disbursing Agencies.

The DA is determined by their basic salary, whereas the DR is determined by their basic pension. The effect of inflation varies according on the employee’s location, thus the dearness allowance is computed accordingly. As a result, DA differs depending on whether a person works in an urban, semi-urban, or rural setting.

How to calculate DA hike?

To figure out how much a central government employee’s DA arrears are worth, do some easy math for a 7th Pay Commission Level-1 employee with a Grade Pay of Rs 1800 and a salary range of Rs 18,000 to Rs 56,900.

Government employees currently receive a 17 percent dearness allowance. The DA is 3,060 if a government employee’s basic income is Rs 18,000. With a 28 percent increase, the dearness allowance will be Rs 5,040. From July 1, this calculation will be used.

The 7th Salary Commission recommends Rs 18,000 as the minimum basic pay for entry-level Central Government employees. Such employees received Rs 3060 as a dearness allowance until June 30, 2021, at the 17 percent DA rate. They would now receive Rs 5040 as a dearness allowance at a 28 percent rate.

Dearness Allowance % = ((Average of AICPI (Base Year 2001=100) for the previous 12 months -115.76)/115.76)*100

Dearness Allowance Percentage = ((Average of AICPI (Base Year 2001=100) for the previous three months -126.33)/126.33)*100

AICPI is an abbreviation for All-India Consumer Price Index.

Dearness Allowance: Important Things To Know

• Employees’ DA varies depending on their job location. Because DA is linked to the cost of living, it is not the same for all employees and differs depending on whether they work in rural, urban, or semi-urban settings.
• When a pay commission introduces a new salary structure, the pension for retired public sector personnel is also updated. The same is true for Dearness Allowance: whenever DA is increased by a certain percentage, it is reflected in the pensions of retired public sector personnel.
• The dearness allowance, also known as DA, is computed as a percentage of the basic income, which is then added to the basic salary, together with other components such as HRA (House Rent Allowance), to make up the total salary of a government employee.

Tax on DA

For salaried employees, DA is entirely taxed. If the employee is given unfurnished rent-free housing, it becomes part of the wage up to the point where it becomes the employee’s retirement benefit salary, assuming all other conditions are followed. The dearness allowance component must be reported separately in the forms submitted in India, according to the Income Tax laws.