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Aditya Birla Sun Life Low Duration Fund Direct Growth

Aditya Birla Sun Life Low Duration Fund Direct-Growth returns over the previous year were 5.40 percent, according to Value Research. It has returned an average of 8.59 percent every year since its inception. The fund’s expense ratio is 0.4 percent, which is comparable to the expense ratios charged by other funds in the same category. GOI, National Bank For Agriculture & Rural Development, Reserve Bank of India, Axis Bank Ltd., and Rural Electrification Corpn. Ltd. are among the fund’s top holdings.

For risk-averse investors, the fund has no lock-in period and no exit load, making it a solid pick. The fund currently has an AUM (Asset Under Management) of Rs 19,096 Cr and the most recent NAV as of 9 July 2021 is Rs 560.03. The fund has been rated low to moderate risk and one can start SIP with Rs 100 per month.

Kotak Low Duration Fund Direct Growth

The fund has a grade of moderate-risk and has been rated 5 star by Value Research. According to Value Research, it has offered an average yearly return of 8.57 percent since its inception. GOI, Reserve Bank of India, Housing Development Finance Corpn. Ltd., Karnataka State, and National Bank For Agriculture & Rural Development are among the top holdings of the fund, and the fund has an expense ratio of 0.41 percent. The fund has no exit load and has an AUM of Rs 13,850 Cr. As of July 9, 2021 the fund’s NAV is Rs 2812.80. With a minimum amount of Rs 1000 one can start SIP under this fund.

HDFC Low Duration Fund Direct Plan Growth

The fund has a low expense ratio of 0.44%, zero exit load, and 1-5 year returns are higher than the category average returns. The one-year growth rate of the fund is 5.88 percent. According to Value Research, it has provided an average yearly return of 8.20 percent since its debut.

Reserve Bank of India, National Bank For Agriculture & Rural Development, Indian Oil Corpn. Ltd., Union Bank of India, and Tata Teleservices Ltd. are among the fund’s top holdings. The debt sector allocation of the fund is allocated between sovereign, financial, and communication.

The fund presently has an asset under management (AUM) of Rs 26,073 Cr and the latest NAV is Rs 48.27 as of 9 July, 2021. One can start SIP in this fund with a minimum monthly contribution of Rs 500.

ICICI Prudential Savings Fund Direct Plan Growth

The fund has an expense ratio of 0.42% and the 3-5 year returns are higher than the category average returns. ICICI Prudential Savings Fund Direct Plan-Growth returns in the previous year were 5.37 percent, according to Value Research. It has returned an average of 8.38 percent per year since its inception.

Reserve Bank of India, Panatone Finvest Ltd, State Bank of India, Indian Oil Corpn. Ltd., and Pipeline Infrastructure (India) Pvt. Ltd. are among the fund’s top holdings. One can SIP in this fund with a minimum of Rs 100 with no exit load. The current AUM of the fund is Rs 32,102 Cr and the most recent NAV of the fund is Rs 425.93 as of 9 July, 2021.

Best Performing Low-Duration Debt Funds In 2021

Here are the best performing low duration debt mutual funds based on ratings and past returns.

Funds	1-year returns	3-year returns	5-year returns	Rating by Value Research
Aditya Birla Sun Life Low Duration Fund Direct Growth	5.40%	8.05%	7.94%	5 star
Kotak Low Duration Fund Direct Growth	5.36%	8.03%	8.16%	5 star
HDFC Low Duration Fund Direct Plan Growth	5.88%	7.80%	7.72%	4 star
ICICI Prudential Savings Fund Direct Plan Growth	5.37%	7.76%	7.69%	4 star

Should you invest?

Currently, where the equity market is at a record high, investing in secure debt funds is strongly suggested. And for generating FD like fixed-income, investing in low-duration debt mutual funds for the short-term can be the best bet. Low-duration debt funds are suitable for those who have a short-term personal finance goal of 1 year to 3 years. Among the best and secure short-term investments, low-duration debt mutual funds are mostly preferred by risk-averse investors as they don’t have equity-linked risk. For a tenure of 1 year, low-duration debt funds can give you higher returns than fixed deposits.

According to Value Research, the 1-year average returns of low-duration funds are 6.11%. Whereas the 3-year returns are up to 8.05%. No matter that fixed deposits investments are insured by DICGC up to Rs 5 lakhs, investing for 1-year in a fixed deposit account of leading banks such as SBI would give you a low-interest rate of only 4.40%. But if you keep credit risk, interest rate risk and liquidity risk in mind, low-duration debt funds can give you higher returns than a savings account or fixed deposits in the short term.

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

What are the key features of Aadhar Shila plan?

The LIC Aadhar Shila policy is a non-linked participatory endowment plan designed to increase savings and provide financial security in the event of an emergency.

• This is a plan that is only available to women.
• It is a low-cost plan.
• Because the Aadhar Shila Plan is an endowment plan, the policyholder will receive a lump sum maturity benefit at the conclusion of the policy term.
• This plan provides loyalty addition at maturity or in the event of death after FIVE years.
• The plan includes a loan facility.
• The plan includes auto-coverage.
• This plan does not include a critical illness rider.
• This plan allows for the reinstatement of lapsed insurance policies.

Benefits of LIC Aadhaar Shila Policy

Death Benefit

In the event of the insured’s death, a lump sum amount known as the death benefit will be paid. The death benefit payable will be the greater of the following:

10 times the annualised premium or 105 percent of all premiums paid, or the absolute sum assured, which will be 110 percent of the basic sum assured.

If the policyholder passes away within the first FIVE years of the policy, the nominee is eligible to receive a death benefit equal to the sum assured. The death claim amount in this situation will be equal to 110 percent of the basic sum assured available under the policy.

If the policyholder dies after the first FIVE years but before the maturity of the LIC Aadhar Shila policy, the nominee is entitled to the base sum assured plus the loyalty addition.

Benefits of LIC Aadhaar Shila Policy

The maturity benefit is the lump sum payment made to the policyholder at the end of the policy period. The insured receives the maturity benefit if they live to the conclusion of the insurance contract.

The insurance contract is ended once the maturity benefit is paid.

The maturity benefit that a policyholder is eligible to earn under the LIC’s Aadhar Shila Plan is equal to the basic sum assured plus loyalty additions.

Please keep in mind that this maturity sum assured is only payable if the policyholder has paid all of the premiums during the life insurance policy’s term.

Benefits of LIC Aadhaar Shila Policy

Loyalty addition

If the insured has completed at least five policy terms and the premium has been paid on time, the insured may be entitled for loyalty adds when the policy is renewed owing to the scheme maturing or if the person dies. If the insured surrenders her policy, she may be eligible for a loyalty bonus if she has completed a minimum of five policy terms and has paid all of her premiums on time.

Tax Benefits

• The premiums paid for the plan are tax-free under Section 80C of the Internal Revenue Code.
• Maturity Claim – Under Section 10(10D) of the Income Tax Act, the maturity amount is tax-free.
• Death Claim – Under Section 10(10D) of the Income Tax Act, death claims received under the plan are tax-free.

Exclusion- What this plan doesn’t cover?

The plan will be terminated in the following circumstances:

The arrangement will come to an end if the insured commits suicide within a year of acquiring the coverage. If the insurance is still current, the insurer is only responsible for paying 80% of the total premiums paid.

If the insured commits suicide within a year of the plan being revived, the nominee will get the higher of the total surrender value or 80 percent of the total premiums paid.

The maximum sum assured accessible under this plan is Rs 3,00,000.00.

The Accident Benefit Rider is available to subscribers of the LIC’s Aadhar Shila Plan. This rider’s sum assured cannot exceed the sum assured available under the basic insurance.

How to avail LICs Aadhar Shila Policy?

You can buy the LIC Aadhar Shila Plan online by visiting www.licindia.in and looking for the ‘buy insurance online’ option. You may easily and quickly acquire the Aadhar Shila Plan with just a few clicks. LIC’s Aadhar Shila Plan is also sold through a number of online insurance aggregators; a list of these top online aggregators can be easily obtained by conducting an internet search.

You can also buy by visiting LIC branch or through agents.

How Women Aadhaar Holder will benefit from this plan?

Women investors will need to start paying Rs 10,959 per year for the next 20 years in order to grow their investment to nearly Rs 4 lakhs, plus pay a 4.5 percent tax. On a daily basis, your savings will be approximately Rs 29.

You’ll pay Rs 2,14,696 to LIC during the next 20 years. However, when your investment matures, LIC will return you Rs 4 lakh.

LIC Aadhar Shila Plan

Details	Limits
Basic Sum Assured Minimum	Rs. 75,000
Basic Sum Assured Maximum	Rs. 3,00,000
Policy Term- Min years	10 years
Policy Term- Max years	20 years
Entry Age	8 years (completed)
Maximum Maturity Age	70 years (nearest birthday)
Premium paying frequency	Annually, Half-yearly, Quarterly, Monthly

Abhyudaya Co-operative Bank Cooperative NA 25000 25000 Adarsh Co-op Bank Ltd Cooperative HDFC Bank 50000 50000 Aditya Birla Idea Payments Bank Payments Bank NA 100000 100000 Airtel Payments Bank Payments Bank NA 1,00,000 1,00,000 Allahabad Bank Public Sector Bank NA 25000 100000 Allahabad UP Gramin Bank RRB Allahabad 20000 40000 Andhra Bank Public Sector Bank NA 100000 100000 Andhra Pradesh Grameena Vikas Bank RRB SBI 25000 100000 Andhra Pragathi Grameena Bank RRB NA 10000 20000 Apna Sahakari Bank Cooperative NA 100000 100000 Assam Gramin VIkash Bank RRB United Bank of India 5000 25000 Axis Bank Private NA 100000 100000 Bandhan Bank Private NA 100000 100000 Bank Of Baroda Public Sector Bank NA 25000 Not set Bank Of India Public Sector Bank NA 10000 100000 Bank of Maharashtra Public Sector Bank NA 100000 100000 Baroda Gujarat Gramin Bank RRB Bank of Baroda 25000 Not Set Baroda Rajasthan Kshetriya Gramin Bank RRB BOB 25000 25000 Baroda Uttar Pradesh Gramin Bank RRB Bank of Baroda 25000 25000 Bassein Catholic Coop Bank Cooperative NA 20000 40000 Bhilwara Urban Co operative Bank LTD Cooperative HDFC 25000 25000 Bihar Gramin Bank RRB UCO Mergerd with DBGB Canara Bank Public Sector Bank NA 10000 25000 Catholic Syrian Bank Private NA 100000 100000 Central Bank of india Public Sector Bank NA 25000 50000 Chaitanya Godavari Grameena Bank RRB Andhra Bank 25000 100000 Chhattisgarh Rajya Gramin Bank RRB SBI 25000 100000 Citibank Retail Foreign Bank NA 100000 100000 City Union Bank Private NA 100000 100000 COASTAL LOCAL AREA BANK LTD Cooperative BOM 50000 1,00,000 Corporation Bank Public Sector Bank NA 50000 100000 DBS Digi Bank Foreign Bank NA 100000 100000 DCB Bank Private NA 5000 5000 Dena Bank Public Sector Bank NA 100000 100000 Dena Gujarat Gramin Bank RRB Dena NA (Merged) Deutsche Bank AG (Web Collect) Foreign Bank NA NA Dhanlaxmi Bank Ltd Private NA 100000 100000 Dombivali Nagrik Sahakari Bank Cooperative NA 100000 100000 Equitas Small Finance Bank Small Finance Bank NA 25000 100000 ESAF Small Finance Bank Small Finance Bank NA 100000 100000 Federal Bank Private NA 100000 100000 FINO Payments Bank Payments Bank NA 100000 100000 G P Parsik Bank Cooperative NA 100000 100000 HDFC Private NA 100000 (Rs 5000 for new customer) 100000 Himachal Pradesh Gramin Bank RRB PNB 50,000 50,000 HSBC Foreign Bank NA 100000 100000 Hutatma Sahakari Bank Ltd Cooperative ICIC Bank 100000 No limit ICICI Bank Private NA 10000 (25000 for Google Pay users) 10000 (25000 for Google Pay users) IDBI Bank Public Sector Bank NA 25000 50000 IDFC Private NA 100000 100000 India Post Payment Bank Payments Bank NA 25000 50000 Indian Bank Public Sector Bank NA 100000 100000 Indian Overseas Bank Public Sector Bank NA 10000 20000 IndusInd Bank Private NA 100000 100000 J&K Grameen Bank RRB J&K 20,000 20,000 Jalgaona Janata Sahkari Bank Cooperative NA 100000 100000 Jammu & Kashmir Bank Private NA 20000 20000 Jana Small Finance Bank Small Finance Bank NA 10000 40000 Janta Sahakari Bank Pune Cooperative NA 100000 100000 Jio Payments Bank Payments Bank NA 100000 100000 Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd. Cooperative NA 25000 200000 Karnataka Bank Private NA 100000 200000 Karnataka vikas Gramin Bank RRB NA 25000 25000 Karur Vysaya Bank Private NA 100000 100000 Kashi Gomti Samyut Gramin Bank RRB NA 100000 100000 Kaveri Grameena Bank RRB SBI 25000 25000 Kerala Gramin Bank RRB NA 20000 20000 Kotak Mahindra Bank Private NA 100000 100000 Langpi Dehangi Rural Bank RRB SBI 10000 100000 Madhya Bihar Gramin Bank RRB PNB 25000 100000 Maharashtra Grameen Bank RRB BOM 25000 100000 Maharashtra state co opp Bank Cooperative NA 5000 50000 Malwa Gramin Bank (Bank merged with Punjab Gramin Bank) RRB SBI 10000 25000 Manipur Rural Bank RRB SBI 10000 10000 Maratha co opp Bank Cooperative NA 100000 100000 Meghalaya Rural Bank Foreign Bank SBI 100000 100000 Mizoram Rural Bank RRB SBI 25000 100000 NKGSB CO-Op. Bank Ltd. Cooperative NA 20000 40000 Oriental Bank of Commerce Public Sector Bank NA 100000 100000 Paschim Banga Gramin Bank RRB UCO 5000 25000 Paytm Payments Bank Payments Bank NA 100000 100000 Pragathi Krishna Gramin Bank RRB NA 20000 20000 Prathama Bank RRB NA 10000 50000 Punjab and Maharastra Co. bank Cooperative NA 100000 100000 Punjab and Sind Bank Public Sector Bank NA 10000 10000 Punjab Gramin Bank RRB PNB 10000 25000 Punjab National Bank Public Sector Bank NA 25000 50000 Purvanchal Bank RRB SBI 25000 100000 Rajasthan Marudhara Gramin Bank RRB SBI 25000 25000 Rajkot Nagari Sahakari Bank Ltd Cooperative NA 100000 100000 Samruddhi Co-op bank ltd Cooperative TJSB 100000 100000 Sarva Haryana Gramin Bank RRB PNB 50,000 1,00,000 Sarva UP Gramin Bank RRB PNB 50000 100000 Saurashtra Gramin Bank RRB SBI 20000 100000 Shree Kadi Nagarik Sahakari Bank Ltd. Cooperative Yes Bank 100000 100000 South Indian Bank Private NA 100000 100000 Standard Chartered Foreign Bank NA 100000 100000 State Bank Of India Public Sector Bank NA 100000 100000 Suco Souharda Sahakari bank Cooperative ICICI Bank 100000 100000 Suryoday Small Finance Bank Ltd Small Finance Bank NA 100000 100000 Suvarnayug Sahakari Bank ltd Cooperative HDFC 100000 100000 Syndicate Bank Public Sector Bank NA 10000 100000 Tamilnadu Mercantile Bank Private NA 20000 100000 Telangana Gramin Bank RRB SBI 25000 100000 Telangana State Co Operative Apex Bank Cooperative IDBI 10000 1,00,000 Thane Bharat Sahakari Bank Cooperative NA 100000 100000 The Cosmos Co-Operative Bank LTD Cooperative NA 10000 50000 The A.P. Mahesh Co-Operative Urban Bank Cooperative NA 25000 25000 The Ahmedabad District Co-operative Bank Ltd Cooperative GSCB 10000 25000 The Ahmedabad Mercantile Co-op Bank Ltd Cooperative HDFC Bank 100000 100000 The Andhra Pradesh state cooperative Cooperative NA 10000 100000 The Baroda Central Co-operative bank ltd. Cooperative GSCB 15000 100000 The Gujarat State Co-operative Bank Limited Cooperative NA 50000 100000 The Hasti Co-operative Bank Ltd Cooperative NA 100000 100000 The Kalyan Janta Sahkari Bank Cooperative NA 100000 100000 The Lakshmi Vilas Bank Limited Private NA 100000 100000 The Mahanagar Co-Op. Bank Ltd Cooperative NA 25000 50000 The Malad Sahakari Bank Ltd. Cooperative PMCO 10000 50000 The Mehsana Urban Co-Operative Bank Cooperative NA 100000 100000 The Municipal Co-op Bank Ltd. Cooperative NA 5000 50000 The Muslim Co-Operative Bank Ltd Cooperative HDFC 100000 100000 The Nainital Bank Ltd Private NA 20000 40000 The Ratnakar Bank Limited Private NA 25000 25000 The Saraswat Co-Operative Bank Cooperative NA 100000 100000 The Surat Peoples Co Op. Bank Ltd Cooperative NA 25000 100000 The Sutex Co op Bank Cooperative ICIC Bank 100000 100000 The SVC Co-Operative Bank Ltd Cooperative NA 10000 20000 The Thane Janta Sahakari Bank Ltd(TJSB) Cooperative NA 100000 100000 The Udaipur Mahila Samridhi Urban Co-op Bank Ltd Cooperative ICIC Bank 100000 100000 The Udaipur Mahila Urban Co-op Bank Ltd Cooperative NA 100000 100000 The Urban Cooperative Bank Ltd Dharangaon Cooperative ICICI Bank 20000 25000 The Varachha Co-op Bank Ltd. Cooperative NA 20000 40000 The Vijay Cooperative Bank Ltd Cooperative ICIC Bank 20000 200000 The Vishweshwar Sahakari Bank Ltd Cooperative NA 100000 100000 Tripura Gramin Bank RRB SBI 10000 10000 UCO Bank Public Sector Bank NA 100000 100000 Ujjivan Small Finance Bank Limited Small Finance Bank NA 50000 100000 Union Bank of India Public Sector Bank NA 100000 200000 United Bank of India Public Sector Bank NA 25000 60000 Uttarakhand Gramin Bank RRB SBI 25000 100000 Vananchal Gramin Bank RRB SBI 20000 20000 Vasai Vikas Co-op Bank Ltd Cooperative NA 100000 100000 Vijaya Bank Public Sector Bank NA 25000 50000 YES Bank Private NA 100000 100000 Source: https://support.google.com/pay/india

Important Highlights from Motilal Oswal

Since March of this year, the midcap 100 and smallcap 100 have outpaced the Nifty. The midcap 100 and smallcap 100 have had 13/8 months of positive returns in a row.

This is the highest level ever for the Midcap 100, and the second highest level ever for the Smallcap 100.

The re-rating component has diminished, but profits growth has been a primary driver of Nifty and Midcap 100 index total gains over the last 5 years (June 2016-June 21).

The earnings for FY22 are projected to start off strong, with Nifty earnings expected to increase by 94 percent year on year. Lockdowns in April and May, on the other hand, will result in a 19 percent Q-o-Q drop in earnings for the MOFSL/Nifty universe.

Stocks To Buy, Hold For Years From Brokerage Firm Motilal Oswal

Company Name	Target Price	Rating	LTP
Bajaj Finance	6900	BUY	6176
Vinati Organics	2170	BUY	1956
Bajaj Auto	4211	Hold	4012

Stocks To Buy From Brokerage Firm Motilal Oswal: Bajaj Finance

Bajaj Finance Limited is an Indian non-banking financial organisation that is a subsidiary of Bajaj Finserv. Consumer financing, SME and commercial lending, and wealth management are all areas where the organization operates. The stock returned 154.08 percent over three years, compared to 43.73 percent for the Nifty 100.

“The Annual Report of Bajaj Finance (BAF) gives an overview of the management’s two-pronged approach for FY21: a) conservatism and prudence, and b) the acceleration of the business transformation plan. BAF is confident in reaching better volumes, a leaner cost structure, and a robust digital platform enabling superior services across the value chain as a result of the many initiatives taken during the epidemic. The management has made the best of a bad situation by speeding up the digitalization process across the board. We believe that COVID’s short-term stress will be fleeting, and that BAF has strong foundations in place to capitalise on recovery. Despite the earnings pressure, ROEs are projected to be healthy at around 20%”, the report said.

“The overall customer base increased 14% YoY to 48.6m, significantly below the earlier range of 25-30%. In 1HFY21, the management adopted a highly risk-averse stance, with the absence of updated bureau scores and prudence due to the lack of clarity on macros,” added further.

Valuations

	2021	2022E	2023E
P/E (x)	83.5	46.3	34.7
P/BV (x)	10.1	8.5	6.9
Div. Yield (%)	0.2	0.2	0.3

Stocks To Buy From Brokerage Firm Motilal Oswal: Vinati Organics

Vinati Organics Ltd., founded in 1989, is a Chemicals-focused Mid Cap business with a market capitalization of Rs 20,086.18 crore. Stock appreciated 303.54 percent over three years, compared to 47.0 percent for the Nifty Midcap 100.

“The FY21 Annual Report from Vinati Organic (VO) demonstrates the company’s capacity to adapt to change while achieving strong performance throughout the year. Despite these difficulties, the company was able to preserve its market-leading position in the ATBS and IBB divisions. The business is optimistic in achieving growth and stronger synergies with ATBS capacity development, the addition of Butyl Phenols, and ongoing capex for further IB derivatives”, the report said.

The stock still has a BUY rating from us, with a target price of INR2,170.

For the past three years, the company has showed a good profit growth of 23.24 percent. Vinati Organics has a ROA of 16.96%, which is a positive indicator of future performance, it’s always preferable to have higher values. Vinati Organics has a Current ratio of 6.17 .

The stock is trading at 36x FY23E EPS of INR50.5 and 26x FY23E EV/EBITDA, with 25 percent return ratios (+600bps v/s FY21). It has a 1.3x fixed asset turnover, which is expected to double over the next three years. We forecast a 34% EBITDA CAGR over FY21-24E and value the company at 43x FY23E EPS to arrive at a target price of INR2,170. The stock is still rated BUY by us, the brokerage said.

Valuations

	2021	FY22E	FY23E
P/E (x)	74.6	50.9	38.7
EV/EBITDA (x)	57.0	37.2	28.2
Div. Yield (%)	0.3	0.4	0.5

Stocks To Hold: Bajaj Auto

Prudent cost management resulted in increased margins.

The BJAUT FY21 annual report highlights the company’s resilient performance in a year impacted by the COVID-19 outbreak, which was driven by continuous premiumization and a focus on R&D.

Its emphasis on exports and Premium Motorcycles enabled it to outperform the 2W industry during a difficult year. In FY21, the contribution of exports to net sales increased by 480 basis points to 46.8 percent. While its domestic Motorcycle market share fell marginally (50bp) to 18%, this was primarily due to a 770bp loss in the Sports segment due to cannibalization by the Pulsar 125cc, according to Motilal Oswal report.

Valuations at 20.7x/17.9x. FY22E/FY23E consolidated EPS largely capture in an expected recovery. We maintain our Neutral stance, with a TP of INR4,211/share (~18x Mar’23E consolidated EPS), it added.

Under the revised policy, dividend payout is linked to the level of cash on its books, as follows:

Cash over INR150b – dividend payout of 90% of PAT

Cash at INR75-150b – dividend payout of 70% of PAT

Cash below INR75b – dividend payout of 50% of PAT

Valuation

	2021	2022E	2023E
P/E (x)	24.9	20.7	17.9
EV/EBITDA (x)	19.9	15.7	13.1
Div. Yield (%)	3.3	4.2	4.5

Disclaimer

All of the stocks mentioned above were selected from Motilal Oswal’s brokerage report. Stock investing is risky, and investors should conduct their own research. The author, brokerage firm, or Greynium Information Technologies Pvt Ltd are not liable for any losses incurred as a result of a decision based on the above article. As a result, investors should proceed with caution, as markets have risen significantly.