Personal Finance – Page 208

Icra survey, BFSI News, ET BFSI

July 14, 2021 root Personal Finance

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Around 42 per cent of non-banking financial companies (NBFCs) expect a growth of more than 15 per cent in their asset under management (AUM) in fiscal 2021-22, says an Icra Ratings survey. The findings are based on a survey of 65 non-banks, constituting around 60 per cent of the industry AUM.

The agency conducted the survey to understand the impact of the second wave of COVID-19 on these entities and their expectations going forward.

It said NBFCs growth expectations have moderated vis-a-vis the expectations six months earlier. This follows the possible impact of Covid 2.0 on business in Q1 FY2022.

“While 42 per cent of the issuers (NBFCs by number) are expecting a more than 15 per cent growth in AUM in FY2022, the proportion based on AUM weights is much lower at 8 per cent, indicating that larger players in the segment expect a relatively moderate growth in FY2022,” the agency’s Vice President (Financial Sector Ratings) Manushree Saggar said.

With most of the lenders (74 per cent in AUM terms) indicating an up to 10 per cent AUM growth, the agency expects the growth for the overall industry to be about 7-9 per cent for FY2022.

Within the non-bank finance sector, segments like MFIs, SME-focussed NBFCs and affordable housing finance would continue to record much higher growth than the overall industry averages, supported by good demand and lower base, she said.

The survey said with gradual easing of lockdowns and moderation in fresh cases of Covid and with increased vaccination coverage, the lenders are optimistic on growth pick-up in balance part of FY2022 and expect it to be higher than the growth seen in FY2021.

However, the non-bank finance companies are expecting the asset quality related pain to persist in the current fiscal as well, it showed.

“Overall, 87 per cent of issuers (by AUM) expect reported gross stage 3/ NPAs to be either same or higher than March 2021 levels, which in turn will keep the credit costs elevated,” it said.

Over 90 per cent of lenders (by AUM) expects the credit costs to remain stable or increase further over FY2021 levels.

On the restructuring front, while lenders are expecting marginally higher numbers as compared to the last fiscal, the overall numbers are expected to be low, the agency said.

Saggar said with no blanket moratorium and reflecting the stress on the cash flows of the underlying borrowers, mid-sized lenders (AUM between Rs 5,000-Rs 20,000 crore) are expecting a higher share of restructuring under Restructuring 2.0.

“Overall, the restructured book of non-bank finance entities is expected to double to 3.1-3.3 per cent in March 2022 from 1.6 per cent in March 2021,” Saggar added.

The agency said a significantly higher number of issuers (56 per cent) are expecting to raise capital in FY2022 as compared to the earlier survey, wherein only 28 per cent of the issuers were expected capital raise in FY2022.

It expects the pre-tax profitability for non-bank finance companies in FY2022 would remain similar to the last fiscal which was around 30 per cent lower than the pre-Covid levels.

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Finance Ministry puts on hold examination for clerical cadre in PSU banks, BFSI News, ET BFSI

July 14, 2021 root Personal Finance

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The Finance Ministry on Tuesday directed the Institute of Banking Personnel Selection (IBPS) to put on hold examinations for clerical cadres in public sector banks (PSBs) till a final view is taken on conducting tests in regional languages. In order to look into the demand for holding examinations for clerical cadres in PSBs in local/regional languages, a Committee has been constituted to look into the matter in its entirety, the Finance Ministry said in a statement.

“The Committee will give its recommendations within 15 days. The ongoing process of holding the examination initiated by IBPS will be kept on hold until the recommendations of the Committee are made available,” it said. Recently, IBPS issued an advertisement for holding an examination for recruitment in the clerical cadre of PSBs only in two languages–English and Hindi.

There has been demand particularly from Southern states to include other recognised regional languages for conducting bank clerical cadre. There are 22 languages recognized by the Constitution of India.

The Finance Minister in July 2019 had assured Parliament that the recruitment examination for employment in the Regional rural banks (RRBs) would be conducted in regional languages apart from English and Hindi.

With a view to providing a level-playing field to the local youths for availing employment opportunities, the government in 2019 decided that for recruitment of Office Assistant and Officer Scale I in RRBs, examination will be held in 13 regional languages including Konakani and Kannada, besides Hindi and English.

Since then, examinations for these recruitments are being conducted in regional languages also, it said.

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High Risk Mutual Fund SIPs To Invest Now For High Return in 2021

July 14, 2021 root Personal Finance

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PGIM India Midcap Opportunities Fund

PGIM India Midcap Opportunities Fund is a midcap fund, which indicates that if the benchmark indices fall, the NAV may decrease more, and if the indices rise, the returns may be superior to the index gains.

This fund has been rated “5 Star” from ValueResearch Online.

The fund has had an exceptional performance in the last year, with returns of 97.7% and 3-year annualized returns of 26.78%. Over the last five years, the returns have been around 20.75 percent.

Most of the funds are invested in midcap equities including names NIIT Technologies Ltd, Max Healthcare Institute Ltd, Muthoot Finance Ltd, ICICI Bank Ltd, and nd MindTree Ltd.

For July 12, 2021, the NAV of PGIM India Midcap Opportunities Fund is 40.86. PGIM India Midcap Opportunities Fund’s direct plan has an expense ratio of 0.41 percent. It has an AUM of 1,952 crores.

Kotak Small Cap Fund

This is a fund that has been rated by “4 Star” from ValueResearch Online. A three-year SIP of Rs 10,000 would have resulted in a corpus of Rs 7.08 lakhs. This signifies that an amount of Rs 3.6 lakhs contributed to the creation of a Rs 7.08 lakhs fund.

The holdings of the fund include stocks like Century Plyboards, Sheela Foam, Carborundum Universal, Persistent Systems, and Lux Industries.

The fund has had an exceptional run in the last year, returning 121.79%, with a three-year annualized return of 126.57%. The 5-year returns have hovered around 21.48%.

Axis Small Cap Fund

This fund has been rated “5 Star” from ValueResearch Online. Those interested in investing in this fund can do so at the current NAV of Rs 59.23. Axis Small Cap Fund Direct-Growth has Rs 6,009 Crores worth of assets under management (AUM). The 1-year returns on Axis Small Cap Fund Direct-Growth are 88.76 percent.

It has returned an average of 26.29 percent per year since its inception. The fund’s top 5 holdings are in Galaxy Surfactants, Tata Elxsi, JK Lakshmi Cement, CCL Products, Narayana Hrudayalaya Ltd.

A five-year SIP of Rs 10,000 would have resulted in a corpus of Rs 12.02 lakhs. This signifies that an amount of Rs 6 lakhs contributed to the creation of a Rs 12.02 lakhs fund.

Nippon India Small Cap

Nippon India Small Cap Fund Direct is a medium-sized fund in its category, with Rs 15,353 crores in assets under management (AUM). The fund’s expense ratio is 1.02 percent, which is higher than the expense ratios charged by most other Small Cap funds. The Nippon India Small Cap Fund Direct’s 1-year growth returns are 110.43 percent. It has returned an average of 26.28 percent per year since its inception. The fund has the majority of its money invested in Engineering, Chemicals, FMCG, Technology, Services sectors.

This fund has been rated “4 Star” from ValueResearch Online.

A Rs 10,000 SIP over three years would have resulted in a corpus of Rs 6.67 lakhs. This means that a sum of Rs 3.6 lakhs was contributed to the establishment of a fund worth Rs 6.67 lakhs.

SBI Small Cap Fund

This fund has been rated “4 Star” from ValueResearch Online. SBI Small Cap Fund Direct-Growth is a medium-sized fund in its category, with assets under management (AUM) of 9,091 Crores. The fund’s expense ratio is 0.85 percent, which is comparable to that of most other Small Cap funds.

The fund’s top 5 holdings are in Elgi Equipments Ltd., V-Guard Industries Ltd., Carborundum Universal Ltd., Navin Fluorine International Ltd., Sheela Foam Ltd.. The NAV of the SBI Small Cap Fund for Jul 12, 2021 is 104.1. The 1-year returns on SBI Small Cap Fund Direct-Growth are 90.88 percent. Since its inception, it has generated an average annual return of 27.78 percent.

Disclaimer

High-risk mutual funds are those that are influenced by equities or stock market risk. It is sensitive to the stock market’s volatility.

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.

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Should You As A Senior Citizen Invest In Special FD Schemes Of Banks?

July 14, 2021 root Personal Finance

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SBI Special Fixed Deposit Scheme

SBI “WeCare” Deposit scheme was launched by the largest commercial bank State Bank of India (SBI), in the last year against the falling interest rates of banks due to COVID-19. The SBI special FD scheme for the senior citizens would give interest rates that are 80 basis points (bps) higher than the rate provided to ordinary depositors. Starting January 9, 2021, SBI is giving a 5.40 percent FD interest rate on tenors of 5 years and above.

But under the special FD scheme, a senior citizen depositor would get an interest rate of 6.20 percent for a deposit amount of less than Rs 2 Cr respectively. “A special ” SBI Wecare” Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps as detailed in the above table) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. “SBI Wecare” deposit scheme stands extended till 30th September 2021, SBI has stated on its official website.

Tenure	Interest Rates in % for Senior Citizens
7 days to 45 days	3.4
46 days to 179 days	4.4
180 days to 210 days	4.9
211 days to less than 1 year	4.9
1 year to less than 2 year	5.5
2 years to less than 3 years	5.6
3 years to less than 5 years	5.8
5 years and up to 10 years	6.2
Source: SBI

HDFC Senior Citizen Care Scheme

For senior citizens, HDFC Bank provides a special FD scheme named HDFC Senior Citizen Care. On these special deposits, HDFC Bank offers a higher interest rate of 75 basis points. As a result, older persons will benefit from a 6.25 percent return on their HDFC Bank Senior Citizen Care FD for a deposit amount of less than Rs 2 Cr.

On its official website, HDFC Bank has stated that “An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of 5 (five) years One Day to 10 Years, during special deposit offer commencing from 18th May’20 to 30th Sep’21.”

Tenure	Interest Rates in % for Senior Citizens
7 – 14 days	3.00%
15 – 29 days	3.00%
30 – 45 days	3.50%
46 – 60 days	3.50%
61 – 90 days	3.50%
91 days – 6 months	4.00%
6 months 1 day – 9 months	4.90%
9 months 1 day	4.90%
1 Year	5.40%
1 year 1 day – 2 years	5.40%
2 years 1 day – 3 years	5.65%
3 year 1 day- 5 years	5.80%
5 years 1 day – 10 years	6.25%
Source: HDFC Bank

ICICI Bank Golden Years Fixed Deposit

In comparison to regular depositors, ICICI Bank offers elderly persons 80 basis points higher FD interest rates under its special FD scheme. Under the ICICI Bank Golden Years FD scheme, a senior citizen would receive 6.30 percent FD returns if he or she invests with a deposit amount of Rs 2 Cr for a period of five years or more.

On its official website, the bank has stated that “Customers who are resident senior citizens will earn an additional interest on their fixed deposits, at the rate of 0.30% over and above the existing additional rate of 0.50% per annum, for a limited period.” This scheme is applicable from May 20, 2020 to October 7, 2021, according to the bank.

Tenure	Interest Rates in % for Senior Citizens
7 days to 14 days	3.00%
15 days to 29 days	3.00%
30 days to 45 days	3.50%
46 days to 60 days	3.50%
61 days to 90 days	3.50%
91 days to 120 days	4.00%
121 days to 150 days	4.00%
151 days to 184 days	4.00%
185 days to 210 days	4.90%
211 days to 270 days	4.90%
271 days to 289 days	4.90%
290 days to less than 1 year	4.90%
1 year to 389 days	5.40%
390 days to	5.40%
18 months to 2 years	5.50%
2 years 1 day to 3 years	5.65%
3 years 1 day to 5 years	5.85%
5 years 1 day to 10 years	6.30%
5 Years (80C FD)	5.85%
Source: ICICI Bank

Bank of Baroda Special FD Scheme

Under its senior citizens’ FD scheme, Bank of Baroda is giving 100 basis points. For a deposit amount of less than Rs 2 Cr and for a tenure of 5 years and more, the bank is providing an interest rate of 6.25 percent to the senior citizens under the special term deposit scheme for a deposit amount of less than Rs 2 Cr.

On its official website, the bank has clearly stated that “In the current challenging situation brought by COVID-19, Bank has agreed to continue to pay additional rate to Resident Senior Citizen for less than RS.2.00 Crores as under: 0.50% for all tenors up to 5 years and 1.00% for “Above 5 years to up to 10 years” tenor and valid till 30.09.2021.”

Tenure	Interest Rates in % for Senior Citizens
7 days to 14 days	3.3
15 days to 45 days	3.3
46 days to 90 days	4.2
91 days to 180 days	4.2
181 days to 270 days	4.8
271 days & above and less than 1 year	4.9
1 year	5.4
Above 1 year to 400 days	5.5
Above 400 days and up to 2 Years	5.5
Above 2 Years and up to 3 Years	5.6
Above 3 Years and up to 5 Years	5.75
Above 5 Years and up to 10 Years	6.25
Source: Bank of Baroda

Should you invest?

The above-mentioned leading banks are undoubtedly providing decent interest rates to senior citizens amid the current low-interest-rate regime. ICICI Bank presently offers the best interest rate of 6.30 percent to elderly persons under the Special FD Scheme. But if we compare the interest rates of special FD schemes with that of small finance banks, then we can discover that they are much lower.

For instance, Jana Small Finance Bank, and Ujjivan Small Finance Bank currently promise an interest rate of 7.25% for a deposit period of 5 years to senior citizens. Senior citizen depositors can invest in fixed deposit schemes of these banks as a substitute for above discussed special FD schemes. By doing this they will not only get higher returns but also their deposits will be insured up to Rs 5 lakhs by DICGC. On the other hand, they can also invest in NPS, Senior Citizen Savings Scheme, Pradhan Mantri Vaya Vandana Yojana (PMVVY), Recurring Deposits, Post Office Monthly Income Scheme for higher returns.

By taking the risk factor of senior citizens in mind, they can also invest in some mutual fund schemes for long-term gains. For an investment period of 5 years or more, they can also invest through SIP mode in best-performing debt mutual funds, fixed income securities, and equity mutual funds for inflation-beating or adjusted returns.

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Credit card spends limping back to normalcy, but stay lower in Q1, BFSI News, ET BFSI

July 14, 2021 root Personal Finance

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If you thought that the over 20% discount offered on credit for your Swiggy offer is exceptional, you may expect more.

Credit card spends are likely to be lower in the first quarter despite a recovery in June. Analysts see credit card spends dropping 8% in the first quarter of June 2021 over the fourth quarter of the last fiscal.

At Rs 54,700 crore, credit card spends in May 2021 were still higher than the monthly spends between April and September 2020.

In April 2021, credit card spends totalled Rs 59,200 crore, higher than the monthly spends witnessed between April and September of 2020.

Going by the trend of UPI transactions in June, credit card spends are also likely to be high in June.

UPI June transactions

UPI enabled digital transactions surged 11.6 per cent month-on-month to Rs 5.47 lakh crore in June this year, according to the NPCI data.

In May 2021, the UPI (unified payments interface) transactions stood at Rs 4.91 lakh crore.

In terms of numbers, there were as many as 2.80 billion (280 crore) transactions during the month under review, as against 2.53 billion (253 crore) in May, according to the data.

NPCI’s other digital payments channels—such as Bharat Bill Payment System (BBPS), National Electronic Toll Collection (NETC), Aadhaar Enabled Payment System (AePS) and Immediate Payment Service (IMPS)—all recorded monthly growth in June.

The number of transactions on BBPS, primarily used for automated bill payments, grew nearly 16% sequentially to 45.47 million transactions in June. For Fastag, the growth was even sharper—at 35.34% to 157 million transactions—indicating an increase in mobility.

Similarly, IMPS grew to 303.7 million transactions in June from 279.8 million in May while AePS — which is used for cash withdrawals at micro ATMs, subsidy payouts and domestic remittance—grew to 87.5 million transactions from 84.2 million.

Card companies

Despite a ban on issuing new credit cards, HDFC Bank retained the largest market share at 27 per cent in spends in May while SBI Cards held 18 per cent.

Credit card spends limping back to normalcy, but stay lower in Q1

In December 2020, the Reserve Bank of India (RBI) barred HDFC Bank from making new digital launches and issuing new credit cards following repeated outages on the bank’s digital channels.

HIt by the ban on HDFC Bank issuing credit cards and economic slowdown, the number of credit cards outstanding grew just 1.9 per cent 622.6 lakh, as against a growth of 2.2 per cent during April-June 2020 to 5.74 lakh, according to RBI data. The number of new cards issued has been falling every month since January 2021 and was down to 21 lakh in April from 70 lakh in January, with most card issuers seeing slow growth. Monthly spends per card for the industry declined to Rs 9,500 in April from an average of Rs 10,500 over the past six months, according to analysts.

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Leave a comment Bharat Bill Payment System, card spends, credit card, hdfc bank, Lakh, national electronic toll collection (netc, npci, reserve bank of india, sbi cards, upi

3 Stocks To Buy For Investors, Brokers See Great Upside Potential In Them

July 14, 2021 root Personal Finance

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Ashok Leyland

The brokerage sees a very decent up tick on the stock of Ashok Leyland from the current levels. The company is the second largest commercial vehicle manufacturer in the country behind Tata Motors. Recently, the Covid-19 related issues seem to have created some disturbance but the company seems back on track.

“Ashok Leyland faced challenges related to weak demand in in the first quarter of 2022. This time around, rural demand is low, but the management expects a rebound on the back of strong farm fundamentals. We expect demand recovery in commercial vehicles to sustain and gain momentum in FY22E,” the brokerage says.

According to the firm, with recovery expected in FY22E/FY23E, on a low base of FY21, estimates domestic medium and heavy commercial vehicle volumes would recover to FY20 levels in FY22E and exceed the peak volumes of FY19 in FY24E.

Light commercial vehicles demand is likely to be aided by the e-commerce channel. The voluntary scrapping of trucks would boost commercial vehicles demand, although not substantially.

Why Ashok Leyland shares remain a good buy?

According to Motilal Oswal, Ashok Leyland remains a pure-play on the commercial vehicle cycle recovery. “Unlike the previous cycles, it is on a strong footing (lean cost structure and reasonable debt) and is focused on adding new revenue/profit pools. Ashok Leyland’s revenue/EBITDA/PAT is estimated to post a 23%/44%/78% CAGR over FY20-23E on a low base of FY20. Valuations of 19.5x/10.4x FY22E/FY23E EV/EBITDA are at an early recovery cycle. We maintain Buy, with a target price of Rs 156 per share (12.8x FY23E EV/EBITDA),” the brokerage has said.

Shares of Ashok Leyland were marginally higher at Rs 127 in trade today.

NMDC

Motilal Oswal Institutional Equities has set a price target of Rs 215 on the stock of NMDC.

NMDC is the leading iron ore mining player in the country. The company has recently benefited from iron ore mining prices going higher. There were also some reports of the company demerging its steel business, which should augur well for shareholders in the company. The steel plant of the company is also expect to start production in Dec 2021 according to the management.

“We expect the demerger to lead to value unlocking as the market is not ascribing any value to the steel plant currently. NMDC has invested Rs 180 billion in the steel plant. We expect a market valuation at 25% of the book value, i.e. Rs 45 billion (Rs 16 per share). We reiterate our Buy rating with a target price of Rs 215 per share,” the brokerage has said.

Crompton Greaves Consumer Electricals

Motilal Oswal sees an upside of 15% on the stock of Crompton Greaves Consumer Electricals and has recommended buying the stock for good gains.

The company is a household name in India and one of the leading manufacturers of consumer products ranging from fans, light sources and luminaires, pumps and household appliances.

According to brokerage firm Motilal Oswal the company has consolidated its position in fans and pumps business, and has scaled up to the number two position in the Water Heaters segment. The two-year revenue CAGR stood at 12% in 4QFY21 (v/s 10% for Havells India), indicating strong performance.

“With its strong distribution network, we expect Greaves Consumer Electricals to capitalize on any pent-up demand emerging post the lifting of lockdown restrictions. Maintain Buy, with target price of Rs 515 per share (45x FY23E EPS),” the brokerage has said.

The shares of Crompton Greaves Consumer Electricals were changing hands at Rs 450 on the National Stock Exchange.

Disclaimer

Investors are advised caution before investing in the stocks above and should only invest if they are able to bear losses. Greynium Information Technologies, the author and the brokerage firm should not be held liable for any losses suffered on account of the decisions based on the above article. Please consult a professional advisor.

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Student loans firm Mpower Financing raises $152.5 million, BFSI News, ET BFSI

July 14, 2021 root Personal Finance

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Mpower Financing, which gives education loans to international students, has raised $152.5 million from existing investor Tilden Park Capital Management and investment management firm King Street Capital Management.

The round includes $100 million in equity financing and about $52.5 million in debt financing from both firms, Mpower‘s India general manager Ashwini Kumar told ETtech. Other investors in the round include hedge fund Drakes Landing Associates and private equity fund Pennington Alternative Income Management.

The fresh funding comes nearly six months after the firm raised $30 million from Tilden Park Capital Management and ETS Strategic Capital, the venture capital arm of ETS, a nonprofit educational assessment, research and measurement organisation.

Mpower will use the money to directly support students, and automate and scale its operations, said chief executive Manu Smadja.

“While we do have a line of credit with Community Investment Management, this financing will enable us to directly support students, which means that a lot of the loan production will be retained in-house going forward,” Kumar said.

Part of the proceeds will also be used to grow Mpower’s team in Bengaluru. “We currently have 77 employees in the Bengaluru office, of which close to 45 were hired in 2021 itself. We hope to grow it to at least 200 by the end of next year,” Kumar added.

Started in 2014 by Smadja and Michael Davis, Mpower works with over 370 top universities and colleges across the US and Canada to provide financing to students from over 200 countries.

The company makes its loan decisions based on the domestic and overseas credit data as well as the student’s future earning potential, rather than his or her family’s assets or income. It also helps students build their credit history and provides personal finance education and career support. Since its inception, Mpower said it has received applications for loans worth over $2 billion in total.

India is the largest market for the firm, accounting for about 20% of its overall volume, Kumar said.

“We are excited to partner with Mpower Financing as it operates a truly differentiated business model where it not only lends to students but also offers career guidance and support,” said Chris Gamaitoni, managing director of Tilden Park Capital Management.

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Best Gold Mutual Funds To Invest In 2021 With Lowest Expense Ratio

July 14, 2021 root Personal Finance

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1. SBI Gold Fund-Direct Plan-Growth:

This is Fund of fund from the SBI Mutual funds with an asset base of Rs. 1129 crore. The expense ratio of the fund is 0.1% is more than the category average of 0.69%. Risk-o-meter classifies the fund to be moderately risky.

Furthermore the fund is not rated by CRISIL. Over the 1-year period, the fund has yielded negative return.

Typically the fund aims to provide returns that correspond to SBI Gold ETFs.

Investors are also allowed the option to invest in these gold funds via the SIP route and SIP can be started for as less as Rs. 500. SIP of Rs. 10000 in 3 years is worth Rs. 4.33 lakh and in 5 years 8.09 lakh. Benchmark of the fund is the gold prices.

2. Kotak Gold Fund- Direct Plan

The direct plan of Kotak Gold fund carries an expense ratio of 0.18% and has an asset size of Rs. 948 crore. The fund has been accorded by a 5 Star rating by Value Research. The scheme aims to provide return that match with the returns of Kotak Gold ETF.

SIP in the fund can be started for as less as Rs. 1000 while for lump sum investment one needs to put in Rs. 5000. Benchmark of the fund is the gold prices.

3. HDFC Gold Fund-Direct Plan:

The fund has an asset under management of over Rs. 1194 crore and carries an expense ratio of 0.15%. The fund typically aims to provide capital gains through investment in HDFC Gold ETFs.

Minimum investment to start a SIP in this HDFC gold fund is for Rs. 500 and also there are charges in relation to exit i.e. an investor exits the investment or sells it units within 180 days then 2% exit load charges shall apply and 1% for redemption between 181 -365 days.

4. ICICI Prudential Regular Gold Savings Fund (FOF) – Direct Plan :

This fund entails a size of Rs. 535 crore and is rated to be 3 Star by Value Research. SIP in the fund can be started for as less as Rs. 100. Further this fund carries the lowest of 0.09%.

Exit load has been fixed at 1 percent for redemption within 15 days. Fund manager of this fund is Mr. Banthia.

SIP of Rs. 10000 monthly started 3 years back is now worth Rs. 4.29 lakh.

5. Nippon India Gold Savings Fund Direct Plan:

Nippon India mutual fund has total assets under management of Rs.1372 crore and expense ratio of the fund is 0.1%. SIP in the fund can be started for as less as Rs. 100 and there is involved an expense ratio of 1% in case the units are redeemed within 15 days of investment.

Mr. Mehul Dama who is a CA and B.Com is the fund manger of the fund.

Why it makes sense to invest in gold funds?

Currently gold prices are broadly moving in a range and as the prices in the international market have shown resilience and is now hovering over &dollar;1800 per ounce there is signalled some bullish momentum though as predicted by experts price of gold shall see a correction for some more time before its upmove.

Now, as investors via the gold funds have the option to both diversify as well as hedge their portfolio risk it is a good option for those looking to buy gold from investment perspectives. Nonetheless, it cannot be ignored that investing in gold bonds is relatively expensive than gold ETFs.

Disclaimer:

Investors are advised caution before investing in the schemes above and should only invest if they are able to bear losses. Greynium Information Technologies, or the author should not be held liable for any losses suffered on account of the decisions based on the above article. Please consult a professional advisor.

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4 Best PSU Banks With The Cheapest Interest Rates On COVID-19 Personal Loans

July 14, 2021 root Personal Finance

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Planning

oi-Vipul Das

|

Published: Wednesday, July 14, 2021, 11:53 [IST]

To cover the costs of Covid-19 treatment for self and families, major public-sector banks declared COVID-19 personal loans of up to Rs 5 lakh. These loans are available at low-interest rates to salaried, non-salaried, and pensioners with a tenure of 5 years and no processing fees. Borrowers who are tested Covid Positive on or after 01.04.2021 must provide a COVID-positive report to the bank in order for the loan amount to be sanctioned. So, if you want to get a personal loan for COVID-19 treatment, these are the top four government banks that are currently offering the lowest interest rates.

SBI KAVACH Personal Loan Scheme

Here are the features and benefits of KAVACH Personal Loan Scheme according to the official website of SBI:

Minimum and maximum loan amount: Minimum: Rs. 25,000 & Maximum: Rs. 5 Lakhs as per eligibility.
Reimbursement facility: Available through branch channel, Digital channel (Pre-approved through YONO).
Loan disbursement: Credit to Salary/ Pension/ SB account of the customer
CIC (CIBIL CV Score): As per Bank’s internal policy
Loan facility: Term Loan
Target Group: Customers of the Bank such as Salaried, non-salaried as well as Pensioners
Loan tenure: 60 months (including 3 months moratorium). Loan to be repaid in 57 EMIs, including interest charged during Moratorium.
Rate on interest: 8.50% at present (minimum 100 bps lower than a similar unsecured product of the bank)
Repayment mode: Standing Instruction (SI) on the Salary/ Pension/ SB/CA account.
Processing fee: NIL
Security: NIL
Prepayment Penalty: NIL
Foreclosure Charges: NIL

Punjab National Bank Sahyog RIN COVID – Personal Loan Scheme

This is a personal loan plan offered by Punjab National Bank for COVID treatment of self or family members starting on or after April 1, 2021. Here are the features and benefits of PNB Sahyog RIN COVID personal loan scheme according to the official website of the bank.

Validity: The schemes will be valid till 31.03.2022.
Eligibility: All Salaried (Govt. or Private) having salary account with us and drawing a regular salary for last 12 months.
Nature Of Loan: Term Loan
Loan amount: For Salaried: Six times of the average of the last 6 months salary credited in the account. (Salary to be verified from Statement of account). Maximum of Rs.3 Lakh. Note: Maximum ceiling of Loan amount per borrower under the Personal Loan Scheme is Rs10.00 Lakh (Rs15.00 lakh in case of Doctors), including fresh loan under PNB Personal Loan – PNB Sahyog COVID.
Reimbursement facility: Up to 3 months
Minimum Permissible Deductions: For gross monthly salary/income the maximum permissible deduction will be: Up to Rs.30000.00 and for above Rs. 30000.00: 65%.
Income Criteria: Rs.15000.00 in Metro/ Urban center & Rs.10000.00 in Semi Urban/ Rural center.
Loan Tenure: Maximum 60 months or remaining period of service, whichever is lower.(including doctors).
Security/Guarantee: As per the extant guidelines of “Personal Loan Scheme for Salary persons – PNB Sahayog Rin.
Rate Of Interest: RLLR + 1.70%
CIC Score: 650 & above
Processing & Documentation Charges: NIL

Bank of India COVID-19 Personal Loan

Following are the salient features of the product, according to the official website of Bank of India.

Eligibility: Customers Drawing salary through the bank for more than 1 year, and all existing standard personal loans including housing loan customers.
Loan amount: 3 times of last drawn gross salary; Maximum: Rs. 5.00 Lakhs (for salaried). 3 times of last drawn gross salary in case of salaried persons, maximum: Rs. 5.00 Lakhs and 3 times of monthly income based on the latest ITR in case of self-employed borrowers; Maximum: Rs. 5.00 Lakhs for existing housing loan/Personal customers.
Rate of interest: RBLR floating with monthly rests (refer to the website for the latest rate of interest).
Processing fee: NIL
Repayment: 36 months including a moratorium period of 6 months.

Baroda Covid Personal Loan 2.0

According to the official website of Bank of Baroda, the following are the basic benefits of the Baroda COVID Personal Loan 2.0.

Loan purpose: For covering COVID treatment expenses or temporary financial shortfalls caused by COVID- 19.
Eligibility: Customers with home loans and loans against property with a minimum of 6 months of relationship with the bank. Limousine Loan with minimum 12 month’s relationship subject to certain terms and conditions.
Loan amount: Minimum loan amount Rs25,000 up to a limit of Rs 5 lakhs subject to 10% of the original sanctioned limit of linked home loan and 10% of the original sanctioned limit of linked LAP.
Interest rate: 2.00% over BRLLR +SP, irrespective of CIBIL Score. But not lower than the ROI of the linked loan.
Prepayment charges: NIL

Story first published: Wednesday, July 14, 2021, 11:53 [IST]

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7 Largecap Funds With The Highest Returns In 3-years

July 14, 2021 root Personal Finance

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Canara Robeco Bluechip Equity Fund

This seems to be a favourite of most analysts with Value Research, Morningstar and CRISIL all according the fund a 5-star rating. The 3-years returns from the fund is 18.57%, making it the No 1 fund for returns in the three year period from largecap funds.

On a longer time frame of 5-years, the fund has generated about 18% returns on an annualized basis, again not a bad set of returns at all. Investors can consider this fund purely on account of the ratings that it has.

The portfolio of the fund is solid, which is why the fund has generated good returns over the last three years. It has holdings in stocks like HDFC Bank, Infosys, ICICI Bank, Reliance Industries and TCS. One has a choice of investing in both the dividend and growth option of the fund. In any case mutual fund dividends are also taxable now.

Kotak Bluechip Fund

This fund is rated second in terms of returns over a three year period with returns of 16.61% on an annualized basis. This is a good 2% lower than the Canara Robeco Bluechip Equity Fund. Again, the portfolio is sound and has the top bluechip stocks like Infosys, ICICI Bank, HDFC Bank, Reliance Industries TCS. These are the same set of stocks which most mutual funds have amongst their top holdings.

We wish to emphasize one fact that there can hardly be any equity mutual fund scheme that has given consistently high returns every year. The list can keep changing as stock prices keep changing. So if a largecap scheme looks good today it might not be the case tomorrow.

Kotak Bluechip Fund was launched in 2013 and has given returns of nearly 15.33% since its launch. Investors who like to invest for 5 to 10 years can consider the same.

IDBI India Top 100 Equity Fund

To be honest this fund ranks third, but has not been accorded a solid rating by some of those agencies that rate mutual fund schemes. However, we would not like to comment on that, but with a 3-year annualized returns of 16.28%, this fund ranks third on the list of equity mutual funds that have given the best returns in three-years.

This fund is extremely small in terms of assets managed at Rs 468 crores only. Like peers it has exposure to stocks of Reliance Industries, HDFC Bank, Infosys, ICICI Bank and HDFC Bank, which form the top 5 in its portfolio.

Mirae Asset Largecap Fund

This fund is similar to the Canara Robeco Bluechip Equity Fund in a sense that the popular rating agencies that accord ratings to mutual funds have rated it as “5-star”.

The returns on three years has been 16.27%, which makes it marginally lower than the IDBI India Top 100 Equity Fund. However, unlike IDBI India Top 100 Equity Fund this fund manages staggering amounts that total nearly Rs 28,000 crores. The 1-year returns from the fund has been 48%, thanks to the indices rallying.

BNP Paribas Largecap Fund

This is ranked fifth in terms of returns from the largecap equity space of 15.99% on an annualized basis. This fund is generally well rated with Value Research according it a 4-star rating. Under the growth plan the net asset value is around the Rs 128 mark. It does not have large assets under management which is around the Rs 1,000 crore mark.

Around 97.2% of the funds is invested in stocks, while the remaining is held in cash and cash equivalents. A good scheme for those looking at long-term investment, though the best bet at the moment would be the SIP route given the behaviour of the markets.

An SIP can be considered with a small monthly sum of Rs 300 only, which makes it very much affordable.

Axis Bluechip Fund

This fund like Canara Robeco Bluechip Fund has been highly rated and has been a consistent performer. With returns of 15.91% on an annualized basis over three years, this occupies the third position.

UTI Mastershare

UTI Mastershare is amongst the oldest mutual fund schemes in the country. In fact, it was launched way back in 1986. With returns of 15.31% it occupies the same seventh position in terms of returns over three years.

Disclaimer

Investors are advised caution before investing in the schemes above and should only invest if they are able to bear losses. Greynium Information Technologies, or the author should not be held liable for any losses suffered on account of the decisions based on the above article. Please consult a professional advisor.

About the author:

Sunil Fernandes, the author of the article is a stock market expert and has spent about 27 years covering stock markets and mutual funds. He has worked with various publications including Hindustan Times, Deccan Herald, Oman Economic Review and Dalal Street Investment Journal. He was also engaged in equity research analysis.

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