Personal Finance – Page 129

2 Top Ranked Flexi Cap Fund By CRISIL To Initiate SIP In Now

September 11, 2021 root Personal Finance

[ad_1]

All About Flexicap mutual funds

What led to the origin of ‘Flexi cap fund’ category?

Typically to tackle the new mandate with regard to multi-cap fund, the flexi cap fund saw its origin. As per the SEBI mandate, without any specific guidelines on allocation to the categories, there is given that at least 65% of the corpus needs to be invested in equity and equity related investments.

Flexi-cap fund: Suitable for whom?

Those investors who want to bet across market caps and but do not want to engage in regular decision of category-wise allocation, can go about adding flexi cap fund to their category.

Features of flexi cap funds

1. Offer higher liquidity with no allocation guidelines to be adhered or complied with. Fund manager can rework the portfolio considering the market dynamics.

2. Allows investor to not only chip in good quality stocks but also allows them the way to exit non-performing stocks.

3. Steady returns can be expected during the bearish market sentiment.

Why should you allocate your funds to flexi cap mutual funds?

In the equity market space, there is relative difference in performance across market caps and with no inbuilt curbs here fund manager based on their experience and understanding of the market dynamics can freely go about allocating funds across market caps for highest potential gains. Also, the remaining 35% corpus depending on the market mood can be allocated in debt, held in cash or can be deployed to take international exposure.

2 Flexi-cap fund accorded Rank 1 By Crisil with their Return performance

Crisil, an S&P Global company, is also into ranking mutual funds. And as per the CRISIL site, the rating agency’s CRISIL Mutual Fund Ranking (CMFR) is based on global best practices. The facility launched in June 2000 has gained high acceptance among investors, intermediaries and asset management companies.

For the ranking, CRISIL employs a mix of NAV as well as portfolio based attributes for evaluation. This provides a single point analysis of mutual funds, taking into consideration key parameters such as risk-adjusted returns, asset concentration, liquidity and asset quality.

The ranks are assigned on a scale of 1 to 5, with CRISIL Fund Rank 1 indicating ‘very good performance’. In any peer group, the top 10 percentile of funds are ranked as CRISIL Fund Rank 1 and the next 20 percentile as CRISIL Fund Rank 2.

Flexi cap funds	CRISIL Ranking	1-year SIP Annualised return	3-year SIP Annualised return	5-year SIP Annualised return
PGIM India Flexi Cap fund	Rank 1 or 5 Star rating	69.59%	42%	27%
UTI Flexi Cap fund	Rank 1 or 5 Star rating	60.96%	37%	25.5%

Disclaimer:

Investing in mutual funds is risky and investors need to be cautious. Neither Greynium Information Technologies nor the author would be responsible for any losses incurred based on decisions made from the article. Investors are also advised caution as the markets have closed at an historic high.

[ad_2]

CLICK HERE TO APPLY

Top 5 Banks Promising Good Returns On Tax Saving Fixed Deposits In 2021

September 11, 2021 root Personal Finance

[ad_1]

Suryoday Small Finance Bank

Suryoday Small Finance Bank FD rates have been recently revised and thus are in force from 9th September 2021. Following are the interest rates on tax-saving fixed deposits of less than Rs 2 Cr of Suryoday Small Finance Bank for both regular and senior citizens.

Period	Regular Interest Rates In% (p.a.)	Interest Rates for Senior Citizens in % (p.a.)
7 days to 14 days	3.25%	3.25%
15 days to 45 days	3.25%	3.25%
46 days to 90 days	4.25%	4.25%
91 days to 6 months	4.75%	4.75%
Above 6 months to 9 months	5.25%	5.25%
Above 9 months to less than 1 Year	5.75%	5.75%
1 Year to 1 Year 6 Months	6.50%	6.75%
Above 1 Year 6 Months to 2 Years	6.50%	6.75%
Above 2 Years to less than 3 Years	6.25%	6.50%
3 Years	7.00%	7.30%
Above 3 Years to less than 5 Years	6.50%	6.50%
5 Years	6.75%	7.00%
Above 5 years to 10 years	6.00%	6.00%
Source: Bank Website

Jana Small Finance Bank

With effect from 07.05.2021 interest rates on fixed deposits of Jana Small Finance Bank are in force. For investors who want to open to open an FD account of less than Rs 2 Cr for 5 years of lock-in term at Jana SFB, the following interest rates would be applicable to them.

Period	Regular FD Interest Rate (p.a.)	Senior Citizen FD Interest Rate (p.a.)
7-14 days	2.50%	3.00%
15-60 days	3.00%	3.50%
61-90 days	3.75%	4.25%
91-180 days	4.50%	5.00%
181-364 days	5.50%	6.00%
1 Year[365 Days]	6.25%	6.75%
> 1 Year – 2 Years	6.50%	7.00%
>2 Years-3 Years	6.50%	7.00%
> 3 Year-	6.75%	7.25%
5 Years[1825 Days]	6.50%	7.00%
> 5 Years – 10 Years	6.00%	6.50%
Source: Bank Website

North East Small Finance Bank

After Suryoday and Jana SFB, North East SFB is among the banks that offer higher interest rates on tax-saving fixed deposits. With effect from 19th April 2021, the following interest rates are in force for a deposit amount of less than Rs 2 Cr.

Tenure	Regular Rates In % (p.a.)	Senior Citizen FD Rates In % (p.a.)
7-14 Days	3	3.5
15-29 Days	3	3.5
30-45 Days	3	3.5
46-90 Days	3.5	4
91-180 Days	4	4.5
181-365 Days	5	5.5
366 days to 729 days	6.75	7.25
730 days to less than 1095	6.75	7.25
777 days	7	7.5
1096 days to less than 1825 days	6.5	7
1826 days to less than 3650 days	6.25	6.75
Source: Bank Website

RBL Bank

RBL Bank has recently revised the interest rates of its fixed deposit scheme. The latest interest rates are in force from 01 September 2021 which are as follows and will be applicable on a deposit amount of less than Rs 3 Cr.

Period of Deposit	Interest Rates p.a.	Senior Citizen Interest Rates p.a.
7 days to 14 days	3.25%	3.75%
15 days to 45 days	3.75%	4.25%
46 days to 90 days	4.00%	4.50%
91 days to 180 days	4.50%	5.00%
181 days to 240 days	5.00%	5.50%
241 days to 364 days	5.25%	5.75%
12 months to less than 24 months	6.00%	6.50%
24 months to less than 36 months	6.00%	6.50%
36 months to less than 60 months	6.30%	6.80%
60 months to 60 months 1 day	6.30%	6.80%
60 months 2 days to less than 120 months	5.75%	6.25%
120 months to 240 months	5.75%	6.25%
Tax Savings Fixed Deposit (60 months)	6.30%	6.80%
Source: Bank Website

Yes Bank

Among the private sector banks and after RBL Bank, Yes Bank is now offering the highest interest rates on fixed deposits. For a deposit amount of less than Rs 2 Cr and for a deposit period of 5 years, here are the most recent interest rates on FD of the bank which is in force from 5th August 2021.

Period	Regular Interest Rates	Senior Citizen Interest Rates
7 to 14 days	3.25%	3.75%
15 to 45 days	3.50%	4.00%
46 to 90 days	4.00%	4.50%
3 months to	4.50%	5.00%
6 months to	5.00%	5.50%
9 months to	5.25%	5.75%
1 year	5.75%	6.25%
18 Months to	6.00%	6.50%
3 Years to	6.25%	7.00%
5 Years to	6.50%	7.25%
Source: Bank Website

[ad_2]

CLICK HERE TO APPLY

Leave a comment

What to expect from the week ending September 17, 2021, BFSI News, ET BFSI

September 11, 2021 root Personal Finance

[ad_1]

Read More/Less

Nifty march takes a break: Nifty was on a one way trip after breaking the 16,000 barrier. However, it then decided to take a pause. Nifty’s gain during the last week was just 46 points or 0.3%. Increasing number of delta covid variant cases and its negative impact on the global economy continues to be the main worry. However, central bankers continue to support the economy. For instance, European Central Bank (ECB), in its recent meeting, has signalled that it will only slightly reduce its emergency bond purchases over the coming quarter.

In addition to the increasing pace of vaccination, market sentiment is also buoyed by continued support by RBI and government of India.

“India’s domestic and external dynamics remain strong with both government and the RBI continuing to take appropriate policy decisions which will continue to act as tailwind to economic recovery as well as equity markets performance,” says Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance.

Though Nifty is capable of climbing to 17,600 level,—the upper end of the rising channel, technical analysts were expecting this pause. As mentioned in previous week, Nifty may even fall to its support band of 17,000 – 17,170 before climbing back to 17,600. 17,170 is a good support now because it was a major resistance earlier. Despite Nifty going up, 17,000 continues to be the major point for Nifty put option writers. For instance, the open interest at 17,000 is placed at 84,843 contracts, compared to 23,223 contracts at 17,100, 36,725 at 17,200 and 34,263 at 17,300. Since the metal prices are still trading at higher levels (eg aluminium prices hit a 13 months high recently), the next upmove may be triggered by metal stocks.

(Narendra Nathan/ET Bureau)

Sector update: Engineering & Capital Goods

Tendering shows signs of uptick

April-August tendering grew 13% y-o-y on the back of higher tendering in the power, T&D and road segments. While tendering in the rail segment was flat, water and real estate saw a decline. The road segment accounted for the largest share of tenders, 30% of overall tenders. Water/railways/irrigation tenders accounted for 11-14%/8%/6-14% of total tenders during the April-August period. For July-Aug 2021, the pace of tendering activity exceeded the April-June 2021 level (by 15%), led by road, power equipment, railways and water supply, indicating a healthy pickup in capex activity.

Awarding activity
YTD awarding activity increased by more than 67% y-o-y on a low base. The 2-year CAGR for this period stood at 28%. road/power T&D/railways/real estate witnessed strong growth. Excluding the road segment, the 2-year CAGR for tenders stood at 14%. Apart from roads, railways/power distribution segments have also seen strong growth in recent years. Roads/railways constituted 26%/16% of the awards during April-August. On account of a large award won by BHEL (Rs 108 billion by Nuclear Power Corp of India), power equipment awards have jumped 6x in the second quarter, leading to growth of 18% in overall awards during the period, further supported by roads and water supply.

Central and state capex
For the April-July1 period, the Central government achieved 23% of its annual budget target with an outflow of Rs 1.28 trillion (up 15% y-o-y). While the overall Central government capex growth during April-July stood in mid-teens, key ministries, roads and railways, reported growth of 110% and 22%, respectively. Taking cues from such figures, developing these sectors, in addition to defence, remains the government’s top priority. Additionally, state government spending (top 15 states) at Rs 565 billion during current financial year (up more than 100% y-o-y) has been far higher than last year’s spending (12% of BE has been achieved vs. 7% y-o-y). On a combined basis (Central + States), capex growth stood at 34% y-o-y.

Credit growth to industries grew marginally by 0.1% y-o-y as of July 2021, while infrastructure credit grew 2.5%. At Rs 10.8 trillion, outstanding infrastructure credit is near the historical high, though it has been in the Rs 10-11 trillion range for the last two years. Overall industrial credit outstanding (as % of non-food credit) has gradually declined to 26% as of July 2021 and currently stands at a decadal low. Top picks from Emkay coverage Our top picks in the sector are L&T, KEC International and Kalpataru Power Transmission, considering their superior execution capabilities, existing order backlog, and relative valuations.

(Emkay)

[ad_2]

CLICK HERE TO APPLY

Leave a comment engineering & capital goods, equity, investing, Nifty, stock market

Why you should pay attention, BFSI News, ET BFSI

September 11, 2021 root Personal Finance

[ad_1]

Read More/Less

Football superstar Lionel Messi recently launched his own collection of NFTs, or non-fungible tokens, that were created using his image by an Australia-based digital designer and are expected to make billions of dollars.

In India too, Bollywood superstar Amitabh Bachchan has launched his own NFTs, which are themed around his life. Before him, Sunny Leone became the first Bollywood actress to launch her own NFT collection of unique, hand-animated art.

Messi, Big B and Leone are not alone in this business. The popularity of NFT, a type of digital asset, has exploded beyond anyone’s imagination in recent years. NFT artworks have been selling for millions and attracting the attention of big brands, celebrities and icons.

What are NFTs?
In simple terms, NFTs are digital assets that exist on a public blockchain that serves as a record of ownership. While anyone can view the items, only the buyer of an NFT has the ‘official’ status of being its owner.

Unlike digital items that can be endlessly modified and reproduced, each NFT has its own digital footprint, which makes it one of a kind. All kinds of digital objects such as images, text, videos, music and even tweets can be converted into NFTs and that process is called “minting” (Yes, like in the cryptocurrency world).

Growing Popularity
The fact that NFTs can give buyers a sense of “unique ownership” and “Digital Immortality” has unlocked exciting opportunities for digital commerce and engagement.

Despite being in existence since 2017, the popularity of NFTs surged only in 2021. According to DappRadar, a Lithuania-based data tracking company, trading volumes of top NFT collections such as Axie Infinity, CryptoPunks and ArtBlocks increased 300% and generated more than $1.5 billion in sales.

Another report published in Forbes pegged NFT sales at over $1.2 billion – almost half of the $2.5 billion cumulative sales volume in the first two quarters of 2021 – while the dapp (decentralised applications) industry as a whole registered more than 1.4 million daily unique users, a 23.72% increase from the previous month.

Future Possibilities
In the crypto world, the idea of integrating NFTs and e-commerce platforms has been making headlines for a while now. Experts believe due to its digital nature and long shelf life, NFTs can play a significant role in the world of e-commerce and market with high-end goods.

“As mixed reality technologies mature, regular people are going to spend more and more of their time — and therefore money — in virtual environments,” a research associate affiliated with a French international banking group told a Business channel.

Since NFTs are digital in nature, they do not involve the hassles or cost of shipping products (even though there is a certain minting and hosting fee that needs to be paid to the marketplace showcasing the NFTs as collections).

Big opportunities await luxury brands that can potentially offer exclusive and limited NFTs without having to worry about counterfeits since the metadata on the token cannot be changed by users.

Need for Precaution
However, all good things come with certain challenges. And in the case of NFTs, the issue of copyright is one. As the market for NFT grows, cases of digital art being copied on the NFT platforms have surfaced, calling for a strict recourse on digital theft and modification.

Though some platforms such as OpenSea and Nifty Gateway provide users with the option to report or appeal copyright infringement in their terms of service, the absence of any official trademark makes it harder for the creators to lay a claim in the world of the internet.

The issue of cyber-security also looms, as several users have reported about accounts being hacked and NFTs worth thousands of dollars getting stolen.

Crypto could be a threat to brokers, exchanges

I get asked often, who out there do you think can disrupt the new-age online brokers or even exchanges?Me: I don’t… https://t.co/KmePgComYC

— Nithin Kamath (@Nithin0dha) 1631182749000

OTHER BIG STORIES FROM THE CRYPTO WORLD

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Why you should pay attention, BFSI News, ET BFSI

September 11, 2021 root Personal Finance

[ad_1]

Read More/Less

Football superstar Lionel Messi recently launched his own collection of NFTs, or non-fungible tokens, that were created using his image by an Australia-based digital designer and are expected to make billions of dollars.

In India too, Bollywood superstar Amitabh Bachchan has launched his own NFTs, which are themed around his life. Before him, Sunny Leone became the first Bollywood actress to launch her own NFT collection of unique, hand-animated art.

Messi, Big B and Leone are not alone in this business. The popularity of NFT, a type of digital asset, has exploded beyond anyone’s imagination in recent years. NFT artworks have been selling for millions and attracting the attention of big brands, celebrities and icons.

What are NFTs?
In simple terms, NFTs are digital assets that exist on a public blockchain that serves as a record of ownership. While anyone can view the items, only the buyer of an NFT has the ‘official’ status of being its owner.

Unlike digital items that can be endlessly modified and reproduced, each NFT has its own digital footprint, which makes it one of a kind. All kinds of digital objects such as images, text, videos, music and even tweets can be converted into NFTs and that process is called “minting” (Yes, like in the cryptocurrency world).

Growing Popularity
The fact that NFTs can give buyers a sense of “unique ownership” and “Digital Immortality” has unlocked exciting opportunities for digital commerce and engagement.

Despite being in existence since 2017, the popularity of NFTs surged only in 2021. According to DappRadar, a Lithuania-based data tracking company, trading volumes of top NFT collections such as Axie Infinity, CryptoPunks and ArtBlocks increased 300% and generated more than $1.5 billion in sales.

Another report published in Forbes pegged NFT sales at over $1.2 billion – almost half of the $2.5 billion cumulative sales volume in the first two quarters of 2021 – while the dapp (decentralised applications) industry as a whole registered more than 1.4 million daily unique users, a 23.72% increase from the previous month.

Future Possibilities
In the crypto world, the idea of integrating NFTs and e-commerce platforms has been making headlines for a while now. Experts believe due to its digital nature and long shelf life, NFTs can play a significant role in the world of e-commerce and market with high-end goods.

“As mixed reality technologies mature, regular people are going to spend more and more of their time — and therefore money — in virtual environments,” a research associate affiliated with a French international banking group told a Business channel.

Since NFTs are digital in nature, they do not involve the hassles or cost of shipping products (even though there is a certain minting and hosting fee that needs to be paid to the marketplace showcasing the NFTs as collections).

Big opportunities await luxury brands that can potentially offer exclusive and limited NFTs without having to worry about counterfeits since the metadata on the token cannot be changed by users.

Need for Precaution
However, all good things come with certain challenges. And in the case of NFTs, the issue of copyright is one. As the market for NFT grows, cases of digital art being copied on the NFT platforms have surfaced, calling for a strict recourse on digital theft and modification.

Though some platforms such as OpenSea and Nifty Gateway provide users with the option to report or appeal copyright infringement in their terms of service, the absence of any official trademark makes it harder for the creators to lay a claim in the world of the internet.

The issue of cyber-security also looms, as several users have reported about accounts being hacked and NFTs worth thousands of dollars getting stolen.

Crypto could be a threat to brokers, exchanges

I get asked often, who out there do you think can disrupt the new-age online brokers or even exchanges?Me: I don’t… https://t.co/KmePgComYC

— Nithin Kamath (@Nithin0dha) 1631182749000

OTHER BIG STORIES FROM THE CRYPTO WORLD

[ad_2]

CLICK HERE TO APPLY

Leave a comment bitcoin, Bitcoin bubble, bitcoin price today, crypto, Crypto News

Stablecoins face crackdown as US discusses risk council review, BFSI News, ET BFSI

September 11, 2021 root Personal Finance

[ad_1]

Read More/Less

U.S. officials are discussing launching a formal review into whether Tether and other stablecoins threaten financial stability, scrutiny that could lead to dramatically ramped-up oversight for a fast-growing corner of the crypto market.

After weeks of deliberations, the Treasury Department and other federal agencies are nearing a decision on whether to launch an examination by the Financial Stability Oversight Council, said three people familiar with the matter who asked not to be named in commenting on closed-door discussions. FSOC has the power to deem companies or activities a systemic threat to the financial system — a label that typically sets off tough rules and aggressive monitoring by regulators.

Such a designation would likely be a gamechanger for stablecoins, which are considered crucial to the crypto market because traders widely use them to buy Bitcoin and other virtual currencies.

Stablecoins have thrived in the unregulated shadows, with tokens in circulation now worth more than $120 billion, according to CoinMarketCap.com. And they are increasingly being used for transactions that resemble traditional financial products — like bank savings accounts — without offering anywhere near the same level of consumer protections.

A hallmark of stablecoins is that they are pegged to fiat currencies, meaning they are supposed to be immune to the wild price swings that have plagued Bitcoin. Tether and other firms achieve that by backing their tokens with assets like U.S. dollars and corporate debt.

The President’s Working Group on Financial Markets, which is led by Treasury Secretary Janet Yellen, has been particularly focused on Tether’s claims that it holds massive amounts of commercial paper — debt issued by companies to meet their short-term funding needs. In a private meeting U.S. officials held in July, they likened the situation to an unregulated money-market mutual fund that could be susceptible to chaotic investor runs if cryptocurrencies plunge.

The President’s Working Group plans to issue stablecoin recommendations by December, and a consensus is building among regulators involved that an FSOC review is warranted, the people said. The groups overlap, as Yellen, Federal Reserve Chairman Jerome Powell and Securities and Exchange Commission Chair Gary Gensler are members of both the PWG and oversight council.

A Treasury spokesman declined to comment.

The FSOC process includes a lengthy study and an assessment of which federal agencies should respond and how. In the end, the council could direct those agencies to intervene in the market and reduce the dangers posed by stablecoin transactions.

While Tether is the most popular stablecoin, there are multiple rivals, including Coinbase Global Inc.’s USDC token and a dollar-linked offering from Binance Holdings Ltd.

Scrutiny has been ratcheting up as stablecoins proliferate. Coinbase made headlines this week by disclosing the SEC had threatened to sue if the crypto exchange launched a product that would allow customers to earn 4% yields for lending out their USDCs to other traders. The SEC believes the Coinbase proposal is an investment contract that should be registered with the agency, a view the company aggressively contested in a blog post and a series of tweets.

Watchdogs have also privately expressed worries about Diem, a stablecoin being developed by an association that includes Facebook Inc. A top concern is that the token’s market impact could be massive because of its potential for widespread adoption — Facebook’s social media network has almost 3 billion active users.

Treasury held meetings this week with industry representatives to ask them about the potential dangers associated with stablecoins. As it and other agencies consider taking action, they’re facing intense pressure from Capitol Hill.

“I urge FSOC to act with urgency and use its statutory authority to address cryptocurrencies’ risks,” Senator Elizabeth Warren wrote in a July 26 letter to Yellen that flagged the stablecoin market’s interconnectedness and its susceptibility to investor runs. “The longer that the United States waits to adapt the proper regulatory regime for these assets, the more likely they will become so intertwined in our financial system that there could be potentially serious consequences.”

Stablecoins already face another threat from the U.S. government, as the Fed is discussing whether to launch its own digital currency. Powell told lawmakers in July that a central bank token would make stablecoins obsolete.

“That’s one of the stronger arguments in its favor,” he said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment bitcoin, companies, crypto market, regulators, Stablecoins, Treasury Department

CBIC Extends Due Dates To File These GST Forms: Check Report

September 11, 2021 root Personal Finance

[ad_1]

Read More/Less

Taxes

oi-Vipul Das

|

Published: Saturday, September 11, 2021, 14:00 [IST]

The Central Board of Indirect Taxes and Customs (CBIC) has extended due dates to file several Goods and Services Tax (GST) forms. The government has earlier given taxpayers solace by lowering or eliminating the late penalty for non-filing FORM GSTR-3B for tax periods from July 2017 to April 2021 if the returns were filed between June 1, 2021 and August 31, 2021. The deadline to apply for the late fee amnesty scheme has now been extended from August 31, 2021 to November 30, 2021, according to the statement issued by CBIC.

“Based on the multiple representations received, Government has also extended the timelines for filing of application for revocation of cancellation of registration to 30.09.2021, where the due date of filing of application for revocation of cancellation of registration falls between 01.03.2020 to 31.08.2021. The extension would be applicable only in those cases where registrations have been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the CGST Act,” reported CBIC.

For the period of 27.04.2021 to 31.08.2021, companies can file FORM GSTR-3B and FORM GSTR-1/ IFF utilising an electronic verification code (EVC) instead of a Digital Signature Certificate (DSC). According to CBIC, the deadline for the same has been extended until October 31, 2021.

The above extension of the late fee amnesty scheme’s deadline and the deadline for submitting an application for the abolishment of registration cancellation will benefit a large number of taxpayers, particularly small taxpayers, who were unable to submit their returns within the deadline due to a variety of factors, most notably the COVID-19 pandemic’s dilemmas, due to which registrations were revoked. As a big relief to them, CBIC has mentioned that “taxpayers are requested to avail the benefit of these extensions at the earliest to avoid last minute rush.”

For investment related articles, business news and mutual fund advise

Allow Notifications

You have already subscribed

Story first published: Saturday, September 11, 2021, 14:00 [IST]

[ad_2]

CLICK HERE TO APPLY

Leave a comment

This Large Private Sector Bank Still Offers Interest Rates of 6% On Fixed Deposits

September 11, 2021 root Personal Finance

[ad_1]

Read More/Less

Let’s take a quick look at the interest rate being offered by IndusInd Bank

Tenure Regular Senior citizens

61 days to 90 days 3.40% 3.90%

270 days to 354 days 5.50% 6.00%

1 Year to below 1 Year 6 Months 6.00% 6.50%

1 Year 6 Months to below 1 Year 7 Months 6.00% 6.50%

1 Year 7 Months to below 2 Years 6.00% 6.50%

2 years to below 2 years 6 Months 6.00% 6.50%

Above 3 years upto 61 months 6.00% 6.50%

Our take on fixed deposits

The deposits look good in terms of interest rates for a period of 1-2 years. Investing for the longer term may not be so prudent and we tell you later, why it could be the case. We believe that interest rates on fixed deposits could remain the same or trend marginally higher in the next few quarters or so. It is likely that inflation risks to the economy remain and at some stage repo rates or interest rates at which the RBI lends to banks could be hiked. If that happens banks would be forced to align their interest rates accordingly. Also, as economic momentum gathers steam, credit offtake could be higher leading to a slight increase in interest rates. It may take a few quarters more, but, we believe that interest rates are unlikely to fall lower. We therefore suggest that do not go for Fds with long term tenure like 5-years. If you go for long term and if interest rates rise, you are trapped, because to break the deposit and open a new deposit would mean you would have to incur breaking charges of 1%.

Are fixed deposits secure?

We have not heard of any private sector bank or government owned bank default. Yes, cooperative banks have had their struggles and there were cases of defaults. Having said that private sector bank Yes Bank too had its share of problems when a moratorium was placed on withdrawals, but, eventually deposit holders received their money. Also, a sum of Rs 5 lakhs on deposits is insured with the Deposit Insurance and Credit Guarantee Corporation. All in all, we feel that for the short term period of 1 to 2 years, the IndusInd Bank deposits look interesting and one may consider investing in the same.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

3 Stocks With High Debt To Equity Ratio

September 11, 2021 root Personal Finance

[ad_1]

Read More/Less

Debt ratio

The debt ratio indicates how leveraged a business is. It analyses a company’s assets and liabilities and provides information on the company’s debt situation. It is usually desirable to have a ratio that is less than one. Companies in the capital-intensive sector, on the other hand, may have a smaller ratio. As a result, peer-to-peer comparison may be the best option.

The debt ratio is calculated using the following formula:

Debt ratio = Total debt / Total assets

Here are 3 highly leveraged companies with high debt to equity ratio

Adani Power

In India, Adani Power Limited generates and transmits electricity through long-term power purchase agreements and on a commercial basis. As of March 2021, the company’s total debt was Rs 650,263 m. During the same time period, its net worth was Rs 4,976 million.

The debt to equity (D/E) ratio is 131 when total debt is divided by net worth. The higher the ratio, the more debt a company has in comparison to its equity. An excessively high percentage can cause troubles in your small organisation.

The debt load of Adani’s six companies is quite high, which is also a cause of worry for investors. is. Investors will be watching to see how much debt Gautam Adani can cut in the coming days.

Tata Communications

As of March 31, 2021, Tata Communication‘s total debt was Rs 99,585 million. During the same time period, the company’s total equity was Rs 1,155 million.

When we divide the entire debt by total equity, we get an 86 D/E ratio.

The profit and cash flow of the Tata group companies improved in the fiscal year 2021. Tata Communications’ debt was &dollar;98.1 billion at the end of March 2021, down from &dollar;108.1 billion a year earlier. On the other hand, it has &dollar;23.2 billion in cash, resulting in a net debt of &dollar;74.9 billion.

Cholamandalam Financial Holdings

As of March 31, 2021, Cholamandalam Financial Holdings‘ total debt was Rs 637,972 million. During the same time period, the company’s total equity was Rs 53,859 million. When we divide the entire debt by total equity, we get an 11.8 D/E ratio.

Only 2.7 percent of trading sessions in the last 16 years had intraday gains of more than 5%. The stock returned 13.88 percent over three years, compared to 49.42 percent for the Nifty Midcap 100.

Conclusion

Banks and financial institutions are not included in the above list because they tend to have higher debt levels because they borrow funds to lend. If we do add them, though, the list will become bloated.

Maintaining a low ratio would also indicate that businesses are not making use of the capital they have available for investment. This might make the corporation vulnerable to a leveraged buyout. Varying industries have different debt-to-equity ratios that are considered “safe” or “normal.” When estimating the relevance of the ratio, take into account industry-specific trends.

It’s crucial to figure out what to include in the debt-to-equity equation’s liabilities section. Some businesses choose to integrate short- and long-term debt, while others prefer to assess each separately. This is significant because the ratio does not indicate when debts must be paid on its own. When the bulk of loans are long-term, a high debt-to-equity ratio is less concerning than when debt payments are due soon.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

7 Stocks To Buy With Potential Upside of Up To 51% From Sharekhan

September 10, 2021 root Personal Finance

[ad_1]

Read More/Less

7 stocks that you can buy according to Sharekhan’s Value Report

Company Name Current market price, Sept 10 Target price (Sharekhan) Gains %

Zee Entertainment Rs 182 Rs 275 51.1%

Granules India Rs 328 Rs 475 44.82%

TCI Ltd Rs 427 Rs 541 26.87%

Va Tech Wabag Rs 335 Rs 435 29.85%

Sadhbhav Engineering Rs 51 Rs 68 33.33%

Power Grid Rs 173 Rs 217 25.43%

NTPC Rs 117 Rs 140 19.66%

Zee Entertainment has an upside potential

According to the report, Zee Entertainment has the best potential from amongst these 7 stocks to generate returns. The stock has over the years taken a knock as the promoters pledged shares to pay of their debts became an issue.

However, the founder of the group Subhash Chandra said that nearly 91.25 of the total debt to lenders has been settled.

“I am happy to report that we have come out of the financial stress situation by settling 91.2% of our total debt to 43 lenders in 110 accounts. About 88.3% of the amount has been paid, while the remaining 2.9% is in the process of being paid. We are making all the required efforts to settle the remaining 8.8% of our total debt,” Chandra said in an open letter.

Granules India, TCI Ltd are other stocks that can deliver

According to Sharekhan’s report the other stocks that can deliver is Granules India and TCI Ltd. Recently, Granules India received licence from Defence Research & Development Organisation to manufacture and market Covid-19 treatment drug, 2- Deoxy-D-Glucose (2-DG). Developed by DRDO, 2-DG has been granted permission b y the Drug Controller for emergency use as adjunct therapy in moderate to severe Covid-19 patients, Granules India has said. However, unlike most of the markets the stock has already run-up.

From time to time, while we do highlight reports of brokerages, we wish to point out that the markets are overvalued at the moment based on price to earnings for Sensex companies. According to broking firm Motilal Oswal, the Sensex is currently trading at 18% premium to long term averages, and hence prudence would be better. Staggered investing is the best bet when the markets are buoyant. Investors should exercise a degree of caution give the way the markets have rallied in the last 2-3 months. In fact, 1,000 points gain on the Nifty has come in just 19 trading sessions, which makes it time to be cautious.

Disclaimer

The article is informational in nature, which is taken from the brokerage report of Sharekhan. Please do consult a professional advisor before you invest in equities. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in the article.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

« 1 … 127 128 129 130 131 … 387 »

Tenure	Regular	Senior citizens
61 days to 90 days	3.40%	3.90%
270 days to 354 days	5.50%	6.00%
1 Year to below 1 Year 6 Months	6.00%	6.50%
1 Year 6 Months to below 1 Year 7 Months	6.00%	6.50%
1 Year 7 Months to below 2 Years	6.00%	6.50%
2 years to below 2 years 6 Months	6.00%	6.50%
Above 3 years upto 61 months	6.00%	6.50%

Company Name	Current market price, Sept 10	Target price (Sharekhan)	Gains %
Zee Entertainment	Rs 182	Rs 275	51.1%
Granules India	Rs 328	Rs 475	44.82%
TCI Ltd	Rs 427	Rs 541	26.87%
Va Tech Wabag	Rs 335	Rs 435	29.85%
Sadhbhav Engineering	Rs 51	Rs 68	33.33%
Power Grid	Rs 173	Rs 217	25.43%
NTPC	Rs 117	Rs 140	19.66%