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SBI Magnum Medium Duration Fund Direct

SBI Magnum Medium Duration Fund Direct returns have been 6.67 percent during the last year. Since its debut, it has returned an average of 9.98 percent every year.

The fund has a 0.68 percent expense ratio, and you can start investing in it with a minimum of Rs 1000. The fund’s top holdings are in Reserve Bank of India, State Bank of India, Mahindra Rural Housing Finance Ltd., Tata Realty and Infrastructure Ltd., Flometallic India Pvt. Ltd. The AUM of SBI Magnum Medium Duration Fund is Rs 9,412 Crs.

ValueResearch Online and Morningstar have given the fund a 5-star rating. The most significant benefit of investing in the SBI Magnum Medium Duration Fund is that you will have exposure to a portfolio that includes debt and money market securities. This fund is appropriate for investors with a three- to the four-year investment horizon. On the other hand, this cannot be compared to the returns of an equity fund during a market peak.

SBI Banking and PSU Fund

As of July 17, 2021, the fund had Rs 14,078 crore in assets under management (AUM) and a NAV of Rs 2,597.98. The fund has a 5 Star Rating from Morningstar. The 1-year returns on SBI Banking and PSU Fund Direct-Growth are 4.16 percent. It has returned an average of 8.77 percent per year since its inception. The fund’s top holdings are in Oil & Natural Gas Corpn. Ltd., State Bank of India, National Housing Bank, Rural Electrification Corpn. Ltd., Axis Bank Ltd..

Banking and public sector undertakings (PSU) funds primarily invest in bonds issued by banks, PSUs, and public financial institutions. They are appropriate for a two- to three-year investment horizon, as well as a fixed-income proportion in a longer-term portfolio. You can expect larger returns than you would get from a bank fixed deposit. The fund’s expense ratio is 0.34 percent, which is comparable to that of most other Banking and Public Sector Union funds.

SBI Magnum Income Fund

Medium to long-term debt funds mostly invests in bonds as they attempt to earn higher returns than similar-term bank fixed deposits. These funds have a low chance of losing money throughout the specified time period, but they may suffer some volatility in response to interest rate changes. The last one-year growth returns on the SBI Magnum Income Direct Plan were 5.76 percent. It has had an average yearly return of 8.85% since its inception. The fund’s top holdings are in Reserve Bank of India, Indian Bank, GOI, Embassy Office Parks REIT, Tata Realty and Infrastructure Ltd. SBI Magnum Income Fund’s direct plan has an expense ratio of 0.8 percent. ValueResearch Online and Morningstar have given the fund a 5-star rating.

SBI Savings Fund

It has an AUM of Rs 22,380.83 crores, and the most recent NAV declared as of 17 July 2021 is 34.591 crores. The fund has received a 4-star rating from ValueResearch and a 5-star rating from Morningstar. . The fund charges a 0.75 percent cost ratio, which is more than most other Money Market funds. GOI, Reserve Bank of India, Axis Bank Ltd., National Bank For Agriculture & Rural Development, and RBL Bank Ltd. are among the fund’s top holdings. It has had an average yearly return of 7.25 percent since its inception.

Money Market Debt Funds invest in short-term bonds with a one-year maturity. They are designed to earn somewhat higher returns than a bank account or a short-term fixed deposit. These funds have a minimal chance of losing money throughout the specified duration, but they do not guarantee returns or capital protection.

SBI Credit Risk Fund

Credit risk funds primarily invest in bonds with credit ratings of AA or lower from credit rating agencies. The lower grade suggests that there is a greater chance that these bonds may fail to return investors’ money. As a result, these funds are the riskiest of the debt fund categories. However, they make up for the increased risk with a bigger return potential, as these bonds pay higher interest rates than the highest-rated bonds. The fund has received a 4-star rating from ValueResearch and a 5-star rating from Morningstar.

SBI Credit Risk Fund-Growth is a medium-sized fund in its category, with assets under management (AUM) of 3,473 crores. The fund’s expense ratio is 1.54 percent, which is greater than the expense ratios charged by most other Credit Risk funds.

SBI Credit Risk Fund’s 1-year growth returns are 6.98 percent. It has had an average yearly return of 7.64 percent since its inception. GOI, IndInfravit Trust, Tata International Ltd., Flometallic India Pvt. Ltd., and Godrej Industries Ltd. are among the fund’s top holdings.

Who Should Invest in Debt Funds?

Debt funds are great for investors who want a steady stream of income but don’t want to take any risks. Debt funds are less riskier than equities funds since they are less volatile. Debt mutual funds may be a better alternative if you’ve been saving in traditional fixed income products like Term Deposits and are looking for consistent returns with low volatility. They help you achieve your financial goals in a more tax-efficient manner and hence earn greater returns.

Debt funds are similar to other mutual fund schemes in that they invest in stocks and bonds. They do, however, outperform stock mutual funds in terms of safety. When the market collapses, for example, the NAVs of your stock funds fall sharply, whereas the NAVs of your debt funds do not fall as sharply. However, debt funds can only provide moderate returns, whereas high-risk equity funds can provide significant returns over a longer time horizon.

The difficulty in suggesting mutual fund schemes is that no single mutual fund scheme can maintain a 5-star rating for an extended length of time. As a result, a mutual fund strategy that appears to be profitable now may not be profitable tomorrow. Kindly be aware that the Nifty is near 16,000 points, a new high, indicating that the markets are not only pricey, but extremely overpriced.

Disclaimer

Market risks apply to mutual fund investments; read all scheme-related papers carefully. The NAVs of the schemes may rise or fall in response to variables and pressures impacting the securities market, such as interest rate variations. The opinions and investment information offered by Greynium Information Technologies’ authors and employees should not be taken as investment advice to purchase or sell stocks, gold, currency, or other commodities. Investors should not make any trading or investment decisions solely on the basis of information presented on GoodReturns.in.

About Navi Mutual Fund

This AMC company is owned by Flipkart co-founder Sachin Bansal and the company is registered with the SEBI and the Sponsor is Anmol Como Broking Private Limited. Navi AMC Limited is the Investment Manager to Navi Mutual Fund. Navi Trustee Limited is the trustee to Navi AMC Limited.

Apart from the AMC arm, the company is into offering financing facilities such as personal loan, housing loan, 2-wheeler loan, SME Business loan as well as general insurance services.

Features of Navi Nifty 50 Index Fund

Investment in the fund is currently open

It is an open ended Index fund with large cap equity orientation

Entry and exit load are 0%

Fund Manager- Mr. Girish Raj

Minimum investment- Rs. 500 via SIP as well as through lump sum payment

Benchmark- Nifty 50 TRI

Investment objective: The fund will typically replicate Nifty 50 returns and as the exposure is typically in large caps, the fall shall not be drastic in case when the markets dives. Hence suitable for more conservative investors who do not like high risk exposure.

Direct plan of Navi Index fund-0.06% shall be the cheapest within the categpry. Within direct plans of the index fund,, the cheapest funds carry a minimum expense ratio of between 0.1-0.15%

Index funds as an investment are the safest?

Typically index funds being passively managed and providing and working to offer return closest to the benchmark index are highly safe. Furthermore, these provide exposure to a set of stocks comprising the benchmark index and so in the case of Navi Index fund the portfolio shall be Nifty stocks. Another positive with this Index fund is that they can be bought directly from the AMC’s site and one need not have a demat account.

Past Nifty returns

The Nifty index has offer a five-year CAGR of 15.7% and a 10-year CAGR of 12.5% (as of 25 June). Further on a year to date basis, the returns have been over 13% while in the last one year it has been to the tune of over 48%.

Why Navi Nifty 50 Index Fund?

Ace Investors’ like Warren Buffet even promote the idea of investing in index funds for naïve investors or first time investors for whom stock picking is highly difficult. Further he goes onto say many of the average investor cannot do stock picking. Also, note this fund is likely to yield you good enough returns if you remain invested for long. Not to forget, this is not the first offering by the AMC and there are other 2 funds also to its credit namely Navi Long Term Advantage Fund and Navi 3 in 1 fund.

Also, because of the lowest cost structure within the category, the investors’ return shall increase in the same proportion.

Note while past performance is integral in the selection of any fund for that matter, here for the index funds barring the tracking error, the fund typically would more or less replicate Index returns which herein is the Nifty index.

Disclaimer:

Note herein the views expressed are just for information and investors need to do their own research before considering the investment option detailed out here. Author, neither the company nor the AMC shall not be responsible for any decision taken based on the above report.

GoodReturns.in

5 Paisa Capital

5 Paisa is a well-known discount stock broker backed by the IIFL company, which is run by Nirmal Jain. The company has cash market share of 4.43% as of June 2021. Paisa Capital Ltd. is a company that was founded in 2007. Its share price presently is 552.45. It currently has a market capitalization of Rs 1624.25 crore. The share price of 5 Paisa on Friday ended the day at Rs 552.20, up4.99% on NSE.

“5 Paisa share price has grown by ~2.3x over the past four years (from Rs 220 in November 2017 to Rs 525 levels in July 2021). Being a new age fintech broker, we retain our BUY rating on the stock. Target Price and Valuation: We value 5 Paisa at ~29x P/E on FY23E EPS to arrive at revised TP of |600 per share,” the brokerage report said.

5 Paisa: Key triggers for future price performance

Key triggers for future price-performance:

• Focus on aggressive client accretion to aid ADTO and thereby topline
• Revamp existing product suite and new product launch Improvement in technology & branding to support incremental accretion
• Operating leverage with revenue growth outpacing cost of acquisition
• Operating leverage & tight cost control seen aiding profitability
• MTF surge, clients surge to aid earnings growth and return ratios.

Alternative Stock Idea:

In addition to 5 Paisa, we prefer MCX in our coverage.

MCX is India’s leading commodity derivatives exchange, having a market share of over 96 percent in the commodities futures area as of FY21. BUY with target price of Rs 2,000, it added.

Sandhar Technologies

Sandhar Technologies (STL) is a significant auto accessory company that primarily serves the Indian vehicle OEM market with a variety of products including locking systems, aluminium die-casting, and interiors (together form 57 percent of sales). On Friday, stock ended the trade at Rs 292, up 0.74% on NSE.

Founded in 1987, with a lengthy history of client partnerships in a variety of industries. Combined, the 2-W and PV accounted for 80% of FY21 sales.

Over the years, the blended EBITDA margin profile has improved steadily, accompanied by continuous CFO creation and good capital efficiency.

“STL got listed on the bourses in March 2018. Over the past three years, the stock has not generated any meaningful returns for its shareholders. However, we believe STL offers significant margin of safety at the current market price (CMP) with attractive risk-reward at play  We initiate coverage under I-Direct Instinct format with a BUY rating Target Price and Valuation: We value STL at Rs 365 i.e. 15x FY23E EPS of Rs 24.2, the ICICI Direct said.

Sandhar tech: Key triggers for future price performance

Key triggers for future price-performance:

• High double digit Sales, PAT growth lies ahead with lean balance sheet and robust capital efficiency. Expect sales to grow at 20% CAGR over FY21-23E
• Growth will be led by (i) increase in wallet share with existing clients, (ii) new client additions & order wins, (iii) infra-revival related growth in cabin space
• Margins to grow to 11.5% by FY23E; PAT to post ~59% FY21-23E CAGR
• Consequent RoCE expansion on the horizon to ~17% by FY23E
• Unaffected by EV transition in the 2-W space. STL has already on-boarded Ampere, Ather Energy, Revolt, Mahindra Electric among others in the emobility domain with talks progressively on with Ola- Electric as well
• Trades at inexpensive valuation of ~12x P/E & ~6x EV/EBITDA (FY23E).

Coupled with expected reduction in gross debt levels, consolidated RoCE is seen improving to 16.8% in FY23E vs. 8.1% in FY21. At the CMP, we believe the company offers significant margin of safety. We ascribe BUY rating and value STL at | 365 by assigning 15x P/E multiple on FY23E EPS of |Rs 24.2, it added.

Wipro

Wipro is a BFSI, health, consumer, energy & utility, technology, and communication IT, consulting, and BPO firm. It employs 190000 people who serve clients on six continents. Payout consistency (70%) and a healthy OCF to EBITDA ratio of 89 percent.

The stock got a buy rating from ICICI Securities, a brokerage firm. The brokerage company believes the stock has a 14 percent upside potential and has set a price target of Rs 670.

“Wipro’s share price has grown by ~3x over the past five years (from Rs 210 in Jul 2016 to Rs 586 levels in July 2021). However, recent run up in price prompts us to maintain HOLD Target Price and Valuation: We value Wipro at Rs 670 i.e. 26x P/E on FY23E EPS, the brokerage said in its report.

Wipro: Key triggers for future price performance

Key triggers for future price-performance:

• The strategy of new CEO to drive turnaround in the company
• Restructuring of organisation, client mining, aspiration to win one large deal every quarter to drive growth
• Higher penetration in Europe, client mining, acquisition of new logos and traction in digital revenues to further boost revenue growth.

Alternative Stock Suggestion: We favour Infosys in our IT coverage. Increased investment in digital technology has resulted in industry-leading revenue growth. BUY with a target price of Rs 1,825, it said

Disclaimer

Stock investing is risky, and investors must exercise caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. Investors should take care because the markets have closed at an all-time high.

Income from Salary

Your salary goes under this category if you are a salaried employee. Your company will deduct TDS according to your tax bracket and pay it to the government. This simply assimilates any remuneration that an employee receives in exchange for services delivered under a contract of employment. Only if there is an employer-employee relationship between the payer and the payee does this sum qualify for income tax consideration.

The gross pay is taxed under this heading after the total amount of income is computed.

TDS will be deducted from all gratuities, pensions, annuities, commissions, fees, leave encashment, and profits you get from your employer, in addition to your base pay.

In terms of Indian income tax legislation, the term “salary” might be defined as follows:

Fees Wages

Advances

Allowances

Pension

Gratuity

Retirement benefits

Income from House Property

The second category of income tax is income from house property. Sections 22 to 27 of the Income Tax Act 1961 are dedicated to the procedures for calculating a person’s total standard income from the house property or land that he or she possesses. The IT Act specifies the various provisions for calculating the income of someone who owns property or land, from Section 22 through Section 27.

It is critical to understand that the tax is based on the land or property, not on the amount of rent you earn from it, unless the property is rented to a business.

The rental income from the properties is included in this category. The property in which you are staying and not earning any rental income can provide you with tax benefits. This advantage comes in the form of interest deductions on house loans.

The income from the rent will be considered if the property is used for letting out in the normal course of business.

Income from Profits of Business

The income earned from the profits of a business or profession is contributed to the computation of total income under the third head of Income Tax headings, Income from Profits of Business. The difference between the revenue collected and the expenses will be charged. Any income earned from trade, manufacture, commerce, or profession is taxed under the business income category. To determine your profits, subtract your expenses from your revenues, and then apply the income tax under this heading.

The following is a list of the income that is taxed under this heading:

Profits made during the assessment year by the assessee

Profits from an organization’s revenue

Profits from the selling of a specific licence

Cash received as a result of an individual’s export under a government programme

Profit, income, or bonus earned as a result of a business collaboration

Benefits gained as a result of working for a company.

Capital Gain

Profits or gains obtained by an assessee from the sale or transfer of a capital asset kept as an investment are referred to as capital gains. Capital gains are defined as any property owned by an assessee for the purpose of his or her business or profession. Capital gains are any gains or profits made by moving or selling capital assets that were previously held as investments.

This includes investments in equities, mutual funds, real estate, and a variety of other assets. The capital gains tax is calculated based on how long the capital asset has been held. Long-term capital gains (LTCG) and short-term capital gains (STCG) are the two types of capital gains (STCG).

Inome from Other source

Income from other sources is the last of the five income tax categories. This income category includes any type of income that does not fit into one of the other categories.

Winnings from horse races or the lottery, gifts received, dividend income, and interest from government bonds and stocks are all examples of this. Other forms of income sources that fall under the “other income” category include: Interest Income

Dividend income

Gifts

Income from the Provident Fund

Income from games such as the lottery, horse races, and so forth.