Month: July 2021

1. Issue details:

Issue offer date: The issue of IIFL 10% NCD opened on July 6 and will be available until July 28 for subscription

Issue price/face value- Rs. 1000 per NCD

Issue Closes on 28th July, 2021

Registrar Link Intime India Pvt Limited

Allotment First Come First Serve Basis ***

Listing On BSE Ltd and NSE Ltd

Issue Price Rs. 1,000 per NCD

Face Value Rs. 1,000 per NCD

Minimum Application Rs. 10,000 (10 NCDs) & in multiples of ₹ 1,000 (1 NCD)

Issue Size Rs. 10,000 million (₹ 1,000 cr)

Nature Unsecured Subordinate Redeemable NCD

Credit Ratings CRISIL AA/ Outlook STABLE and Brickwork AA+/ Outlook Negative

2. Company profile:

IIFL Home Finance is the fully owned subsidiary of IIFL Finance and is the housing finance company. The company is into offering home loan, secured loan as well as affordable housing project finance loans.

3. Rating:

The NCD issued has been rated by CRISIL as AA/ Outlook STABLE and Brickwork AA+/ Outlook Negative. The rating suggest high degree of safety with respect to timely servicing the financial obligations and carry low credit risk.

4. NCD objectives:

The proceeds mopped up from the offering shall be put to onward lending, financing, repayment or pre-payment of principal as well as interest in respect of existent borrowing as well as general corporate purposes. The company’s prospectus available for the purpose said it intends to “utilise the funds which are being raised through this Tranche I Issue, after deducting the Issue related expenses to the extent payable by our Company (“Net Proceeds”), towards funding the following objects i.e. onward lending, financing, repayment/prepayment of interest and principal of existing borrowings (collectively, referred to herein as the “Objects”) and other corporate purposes.

5. Returns:

6. Taxation:

Interest earned on these NCDs are fully taxable as per the investor’s slab rate in the year of the receipt of the interest income.

7. Conclusion:

These NCDs need to be invested into by investors who have a good enough risk-appetite as IIFL Home Loan NCD offering is not backed by the company’s financial assets and if the company’s financials weaken at any point during the NCD tenure, the company may default. This is even as the credit rating for the NCD is pretty Ok with a ‘Stable’ outlook but notably can change over time. Furthermore, the instrument is a bet for a longer tenure so not suitable for all and those investors who do not understand credit risk should give this offer a complete miss despite the high interest rate.

GoodReturns.in

Tata Digital India Fund – Direct Plan

According to data from top research firm, Morningstar, Tata Digital India Fund, Direct Plan growth has given a returns of 26.81% on an annualized basis and this is the best among equity mutual funds over a 5-year period. The 3-year returns is even better at 31.79% on an annualized basis. We are in no way recommending any of the schemes, but, are just providing readers with information on the best returns provided over the 5-year period.

Tata Digital India Fund – Direct Plan has investment largely in IT companies and its portfolio comprises names like TCS, Infosys, HCL Technologies, Persistent Systems etc. The scheme looks for long term capital appreciation by investing at least 80% of its net assets in equity or related instruments.

ICICI Prudential Technology Fund Direct Plan

This fund is another technology fund and has given returns of 26.80% over 5-years. As per data from Morningstar, this makes it the second highest returns from equity mutual funds over a 5-year period. The fund pre-dominantly invests in equities and has holdings in names like Infosys, TCS etc.

The net asset value under the growth plan is Rs 138.62 and investment in the scheme is also possible by way of SIPs. The 3-year returns from the fund is around that 34% mark.

Aditya Birla Sun Life Digital India Fund – Direct Plan

This fund has generated the third highest returns among equity mutual funds over a 5-year period according to data by Morningstar. Again, like the two of the above, most of the funds are parked in IT stocks. Since stocks from the IT sectors have rallied tremendously in the last 5-years, we are seeing solid robust returns of 26.77% from the fund over a 5-year period. The returns over three years has also been staggering at 33.82% on an annualized basis. The net asset value under the growth plan is Rs 122.38, and one can invest through SIPs with a small sum of Rs 500 every month.

Edelweiss Greater China Equity Off-shore Fund, Direct plan

With a returns of 25.86%, this makes it the fourth best fund in terms of returns over 5-years. This scheme invests in JPMorgan Funds – JF Greater China Equity Fund, an equity fund which invests primarily in a portfolio of companies which have their registered office located in, or derive the predominant part of their economic activity from, a country in the Greater China region.

The NAV under the scheme is Rs 59.33. An SIP is also possible in the fund with an investment of Rs 500 each month.

Franklin India Feeder Franklin US Opportunities Fund

This fund is ranked fifth over 5-year returns. The fund seeks to provide capital appreciation by investing predominantly in units of Franklin U.S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America.

The fund has generated a returns of 25.70% on an annualized basis over the last 5-years, while the 3-year returns have been 26.60% on an annualized basis.

The growth plan of the fund currently has an NAV of Rs 58.34.

Quant Tax Plan Growth, Direct Plan

This fund has generated a 5-year annualized returns of 24.62% . The Quant Tax Plan Growth offers tax benefits under SEC80C of the Income Tax Act. The fund has investment in stocks like ITC, ICICI Bank, Bhrati Airtel, State Bank of India, ICICI Securities etc.

An SIP under the fund is possible with an investment of as low as Rs 500 each month. The net asset value under the growth category is Rs 210.68.

This fund is suitable for those who are looking for tax benefits and long term returns.

SBI Technology Opportunities Fund – Direct Plan

Again, this is a technology fund, which falls under the highest returns category and occupies the seventh position for returns over a period of 5-years. SBI Technology Opportunities Fund – Direct Plan has given returns of 24.28% over the last 5-years. While some of these stocks may have given the best returns, we are just providing information and are not suggesting to invest.

We believe that the Sensex at 53,000 points is over valued and any sharp dips would be an opportunity to park money in equity mutual funds, not at the moment.

Disclaimer

Investing in mutual funds is risky and investors should understand the risk. Greynium Information Technologies and the author do not take any responsibility for losses incurred based on the decisions in the article. The article is meant for informational purposes only.