Category: Personal Finance

Explaining core and satellite portfolio strategy

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A coffee time conversation between two colleagues leads to an interesting explainer on a portfolio construction strategy.

Vina: Did you hear about Meena making windfall gains through her smallcase investments? Makes me want to try my hand at it too. I felt exactly the same way when cryptos rallied last year. I think it is some kind of FOMO playing out!

Tina: Relax Vina. It is not like she has got the Midas touch when it comes to investing. You can also up your game by venturing into other asset classes. But be mindful of the risk you undertake. I hope you know that every asset class that promises you superior returns comes attached with equally superior risks too.

Vina: Agreed! But isn’t there a way out. I mean, what is one to do if one wants to generate better than market returns, and at the same time contain the risks.

Tina: Have you heard of the Core – Satellite portfolio strategy? It is a strategy that aims to optimise costs, taxes and risks in the overall portfolio while aiming to maximize returns. May be this approach could help you address your FOMO.

Vina: I assume, the core is the main portfolio. But, what is the satellite portfolio? Does it keep revolving around the core? Like the Moon around planet Earth?

Tina: No Vina. This strategy works as follows. The core portfolio is made up of funds or other investments that aim at acheiving one’s financial goals — be it through debt instruments (sovereign or otherwise), funds (ETFs or index funds) and other assets that essentially help cut down on costs and volatility in the long run. For longer tenure portfolios, gold can also form part of the core portfolio. The smaller satellite portfolio is one where you can try your hand at actively-managed riskier assets for alpha generation. One can also use his / her satellite portfolio for saving taxes by investing in equity-linked savings schemes or ELSS. Depending upon one’s goals and the risk associated with the stock picks, direct equity investments can either be part of your core or satellite portfolio.

Vina: Why two portfolios? How does that help?

Tina: While the core helps in generating the minimumreturn required to meet one’s goals according to one’s risk appetite, the satellite portfolio adds extra spice to these returns. This is definitely better than burning one’s fingers by investing the entire corpus in risky assets, all in the name of seeking alpha.

Vina: Fair point. What is the ratio in which I should split my portfolio into core and satellite, then?

Tina: While there is no one size fits all approach, most experts advise a 70-80 per cent allocation to the core portfolio. The ideal ratio depends on the type of assets added to your satellite portfolio and the amount of risk they would add to your overall portfolio. The idea is to earn the minimum return to meet your financial goals through your core portfolio investments. One’s satellite investments can range from credit risk funds to thematic or international mutual funds to direct investments in equity. Some also prefer to add alternate investments such as REITs/InvITs, PMS, private equity (including pre-IPOs) and even cryptos to their satellite portfolio. Whatever the asset class(/es) you choose, the losses if any, should not eat away too much into your overall portfolio return.

Vina: Right. Simply put, this strategy seems like a fair way in which one can try to get the best of both worlds, superior returns with a cap on the downside risk.

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4 Best Performing Dynamic Asset Allocation Funds In 2021 To Start SIP Now

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Edelweiss Balanced Advantage Fund Direct-Growth

This dynamic asset allocation fund was launched in 2o13 by the fund house Edelweiss Mutual Fund. This fund has done pretty well in the last 1 year. The 1-year returns for Edelweiss Balanced Advantage Fund Direct-Growth are 33.60 percent. It has returned an average of 13.14 percent per year since its inception, according to the data of Value Research.

The fund’s 1-to-5-year returns are higher than the average in the category. The financial, technology, metals, energy, and healthcare sectors make up the majority of the fund’s equity holdings. ICICI Bank Ltd., Reserve Bank of India, Reliance Industries Ltd., Tata Steel Ltd., and HDFC Bank Ltd. are the fund’s top five holdings. The fund has a low expense ratio of 0.5%. The present AUM of the fund is Rs 3,881 Cr and the most recent NAV as of July 9, 2021 is Rs 36.18. One can start SIP in this fund with Rs 500 and the fund charges an exit load of 1% if units are redeemed within 1 year of investment.

ICICI Prudential Balanced Advantage Fund

ICICI Prudential Balanced Advantage Fund

The fund house ICICI Prudential Mutual Fund introduced this dynamic asset allocation fund in 2013. The 1-year returns on ICICI Prudential Balanced Advantage Direct-Growth are 27.81 percent. According to Value Research, this fund has generated an average yearly return of 13.28 percent since its inception. This fund has a higher expense ratio of 1.09% and the 1 to 5-year returns are higher than the category average returns.

The fund has its equity sector allocation across financial, energy, automobile, technology, and fast-moving consumer goods sectors. Reserve Bank of India, Reliance Industries Ltd., ICICI Bank Ltd., Infosys Ltd., and Axis Bank Ltd. are the fund’s top five holdings. The current asset under management (AUM) of the fund is Rs 32,188 Cr and the current NAV is Rs 50.33 as of July 9, 2021. The fund charges an exit load of 1% if units 10% of the investment redeemed within 1 year. One can start SIP in this fund with a minimum monthly contribution of Rs 100.

DSP Dynamic Asset Allocation Fund

DSP Dynamic Asset Allocation Fund

In the year 2014, this fund was launched by the fund house DSP Mutual Fund. DSP Dynamic Asset Allocation Fund Direct-Growth returns are 20.35 percent over the last year. According to Value Research, it has produced an average yearly return of 10.58 percent since its inception. The financial, energy, technology, services, and metals sectors make up the majority of the fund’s equity holdings. Infosys Ltd., Indian Oil Corpn. Ltd., Reserve Bank of India, Adani Ports and Special Economic Zone Ltd., and Bharti Airtel Ltd. are the fund’s top five holdings.

The fund has an expense ratio of 0.68% and an exit load of 1% would be charged if units in excess of 10% of the investment redeemed within 1 year. The current AUM of the fund is Rs 3,562 Cr and the latest NAV as of July 9, 2021 is Rs 21.10.

Aditya Birla Sun Life Balanced Advantage Fund

Aditya Birla Sun Life Balanced Advantage Fund

This dynamic asset allocation fund was launched by the fund house Aditya Birla Sun Life Mutual Fund in the year 2013. Aditya Birla Sun Life Balanced Advantage Fund Direct-Growth returns were 30.96 percent in the previous year. According to Value Research, it has provided an average yearly return of 12.63 percent since its inception. The fund has a 0.74 percent expense ratio and no exit load.

The fund has its equity sector allocation across financial, technology, energy, construction, and healthcare. Birla Sun Life Cash Plus – Direct Plan, HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., and Tata Steel Ltd. are the top five holdings of the fund. The current AUM of the fund is Rs 3,969 Cr and the recent NAV as of July 9, 2021 is Rs 75.80. One can start SIP with an amount of Rs 100 in this fund.

Best Performing Balanced Advantage Funds In 2021

Best Performing Balanced Advantage Funds In 2021

Here are the 4 best performing balanced advantage funds or dynamic asset allocation funds based on ratings and past returns.

Fund 1-year returns 3-year returns 5-year returns Rating by Value Research
Edelweiss Balanced Advantage Fund Direct Growth 33.60% 15.02% 13.86% 5 star
ICICI Prudential Balanced Advantage Fund 27.81% 12.07% 11.90% 4 star
DSP Dynamic Asset Allocation Fund 20.35% 12.31% 10.79% 4 star
Aditya Birla Sun Life Balanced Advantage Fund 30.96% 13.05% 12.36% 4 star

Should you invest?

Should you invest?

Amid the current market scenario in which investing only in equity may increase your risk, investing in debt mutual funds is strongly considered. In the current period where the domestic market is all-time high, gilt funds, floater debt mutual funds, low duration, dynamic asset allocation funds are getting huge attraction among the debt mutual fund category by the investors to get risk-adjusted returns. The reason why we have picked dynamic asset allocation funds to invest in is, the last 3 to 5 years SIP returns of this fund are pretty decent. According to the data of Value Research, dynamic asset allocation funds have generated an average SIP returns of 14.52% in the last 3 years and 9.89% in the last 5 years which is much higher than the other debt fund category such as banking and PSU funds.

In the current scenario where interest rates on fixed deposits are around 5.5% which is near to the inflation rate, investing in dynamic asset allocation funds may give you inflation-beating returns in the mid-term. Investing in balanced advantage funds or dynamic asset allocation funds can be a solid option in the present equity market since these funds adjust asset allocation based on the market conditions so that your investment continues to provide consistent returns.

Disclaimer

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



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Fed flags crypto assets for first time in Financial Risk Review, BFSI News, ET BFSI

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The Federal Reserve singled out a surge in crypto asset prices for the first time in its overall assessment of the stability of the financial system, saying the rise reflected increased risk-taking by investors.

The brief comment, contained in the Fed’s semi-annual Monetary Policy Report to Congress released on Friday, is the latest sign that policymakers are paying more attention to what used to be a tiny sliver of the financial system.

Fed Chair Jerome Powell met with the head of cryptocurrency exchange Coinbase Global Inc. on May 11 and crypto advocate Christopher Giancarlo a day later, according to the central banker’s monthly diary.

Powell’s in-person meeting with Coinbase Chief Executive Officer Brian Armstrong and former Speaker of the U.S. House of Representatives Paul Ryan lasted 30 minutes and took place during a week of intense volatility for cryptocurrencies including Bitcoin, which fell steeply on that day. Spokespeople for both the Fed and Coinbase declined to comment on what was discussed.

The price of Bitcoin is up some 250% from a year ago, although it is well down from its April high.

Powell has previously said that he wants the Fed to play “a leading role” in the development of international standards for digital currency. The central bank plans to issue a discussion paper this summer highlighting the risks and benefits of digital payments.

In the Monetary Policy Report, the Fed said that some parts of the financial system had grown more vulnerable to potential instability since its last account to Congress in February, but that the core of the system remained resilient.

It characterized equity and commercial real estate prices as high and said that spreads on corporate bonds and leveraged loans remained low.

“The surge in the prices of a variety of crypto assets also reflects in part increased risk appetite.” it added.

The central bank also issued a warning about the general level of asset prices.

“Asset prices may be vulnerable to significant declines should investor risk appetite fall, interest rates rise unexpectedly, or the recovery stall.” the report said.



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Top 5 Best Performing Realty Stocks With Solid Returns In The Past Year

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Sobha

For the quarter ended June 2021, Sobha achieved a total sales volume of 895,539 square feet of super built-up area valued at Rs682.9 crore (Q1FY22). In comparison to Q1-21, overall sales volume, sale value, Sobha share of sale value, and total average price realisation have increased by 38 percent, 40 percent, 45 percent, and 2 percent, respectively. For the past three years, the company has grown its revenue by 19.77 percent.

In the last five years, the company has maintained effective average operating margins of 21.30 percent. Sobha has a return on equity (ROE) of 13.26% (greater is better). Sobha has a D/E ratio of 1.31, indicating that the company has a low debt-to-capital ratio.

The company’s cash flow is well-managed, with a CFO/PAT ratio of 1.05.

Brigade Enterprises

Brigade Enterprises

Its stock price currently is $314. 5. The company’s current market capitalization is Rs 7205.36 crore. The company reported gross sales of Rs. 18493.3 crores and a total income of Rs. 19935 crores in the most recent quarter. For the past three years, the company has shown a good profit growth of 16.73 percent. Brigade Enterprises Ltd has gained 11.81 percent in the last month, outperforming the S&P BSE Realty Index index by 1.91 percent and the SENSEX by 1.48 percent.

In the last five years, the company has maintained an effective average operating margin of 27.06 percent.

The company’s cash flow is well-managed, with a CFO/PAT ratio of 1.23. Brigade Enterprises has an Inventory Turnover Ratio of 0.61, indicating that the company’s inventory and working capital management are inefficient.

DLF

DLF

Only 4.53 percent of trading sessions in the last 14 years had intraday drops of more than 5%. The stock returned 53.68 percent over three years, compared to 46.03 percent for the Nifty 100. For the past three years, the company has shown a good profit growth of 55.99 percent.

In the last five years, the company has maintained effective average operating margins of 33.47 percent.

The PEG ratio of the company is 0.35. DLF’s current year dividend is Rs 2 with a yield of 0.69 percent. DLF Ltd., founded in 1963, is a Large Cap business in the Real Estate industry with a market capitalization of Rs 73,925.18 crore.

Oberoi Realty

Oberoi Realty

With a solid interest coverage ratio of 49.34, the company is in good shape.

In the last five years, the company has maintained an effective average operating margin of 54.52 percent.

With a current ratio of 5.05., the company has a solid liquidity position. Only 2.49 percent of trading sessions in the last ten years had intraday gains of more than 5%. Over a three-year period, the stock generated a 40.39 percent return, while Nifty Realty generated a 34.57 percent return. Oberoi Realty reported revenue growth of 37.12%, which is reasonable given its expansion and performance. Oberoi Realty’s operating margin for the current fiscal year is 58.26 percent.

Sunteck Realty

Sunteck Realty

Over a three-year period, the stock returned -18.38 percent, compared to Nifty Realty, which returned 34.57 percent. Sunteck Realty Ltd., founded in 1981, is a Real Estate-focused Mid Cap business with a market capitalization of Rs 4,801.74 crore. In the last five years, the company has maintained an effective average operating margin of 55.65%.

With a current ratio of 2.61, the company has a strong liquidity position.

With a promoter share of 67.15 percent, the corporation has a large promoter base.

Sunteck Realty’s current year dividend is Rs 1.50, with a yield of 0.45 percent. Sunteck Realty’s operating margin for the current fiscal year is 33.82 percent.

5 Best Performing Realty Stocks on NSE With Solid Returns In The Past Year

5 Best Performing Realty Stocks on NSE With Solid Returns In The Past Year

Company LTP in Rs. 1 year in %
Sobha 552.90 128.62
Brigade Enterprises 315.05 119.16
DLF 298.85 96.62
Oberoi Realty 671.55 80.99
Sunteck Realty 331.55 69.80

Disclaimer

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.



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EPF: Rs. 1 Lakh Advance In Medical Emergency In Just 1 Hour

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Planning

oi-Roshni Agarwal

|

In case of some medical emergency as also for Covid situation, members of EPF (India’s social security scheme for those working with the organized sector), are now extended a new facility as per which they can withdraw or avail of Rs. 1 lakh from their EPF corpus. Also, for this borrowing members need not give any cost estimations.

EPF: Rs. 1 Lakh Advance In Medical Emergency In Just 1 Hour

EPF: Rs. 1 Lakh Advance In Medical Emergency In Just 1 Hour

The circular in this regard was circulated by the provident fund organization on June 1, 2021. Further it said, that the advance of Rs. 1lakh can be availed for sudden hospitalization owing to any of the lethal disease including coronavirus.
Notably, previously also EPF came with such a facility to withdraw funds for medical emergencies but for that an EPF member needed to provide cost estimates or was available only as medical bill reimbursement.

For availing the same Rs. 1lakh advance against EPF A/c some of the guidelines that needed to be noted are as though:

Guidelines to avail of Rs. 1 lakh medical emergency advance from EPF a/c

1. The medical advance shall be offered if the patient has been admitted to government/ public sector unit/ CGHS panel hospital for treatment. In a case the patient is getting treatment at a private concern then the same shall be verified by an EPFO officer before the advance is extended.

2. The employee (EPF member) or his or her family need to provide such details including where the treatment is being availed, patient’s details and also put in that there is no cost estimation and medical advance should be provided.

3. The member or his/ her family can then get the amount within 1 hour of applying for the facility for help at the time of hospitalization.

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Story first published: Saturday, July 10, 2021, 15:49 [IST]



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SBI vs Axis vs ICICI vs HDFC vs RBL vs Yes Bank: Check New FD Rates Here

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SBI Fixed Deposit

On a deposit period of 7 days to 10 years, the country’s leading commercial bank of the country State Bank of India (SBI) is promising an interest rate of 2.9% to 5.4% to the general public and 3.40% to 6.20% to the senior citizens. Here are the latest FD rates of SBI Bank which are in force from 08.01,2021.

Tenure SBI FD Rates For Regular Citizens In % SBI FD Rates For Senior Citizens In %
7 days to 45 days 2.9 3.4
46 days to 179 days 3.9 4.4
180 days to 210 days 4.4 4.9
211 days to less than 1 year 4.4 4.9
1 year to less than 2 year 5 5.5
2 years to less than 3 years 5.1 5.6
3 years to less than 5 years 5.3 5.8
5 years and up to 10 years 5.4 6.2
Source: SBI

Axis Bank Fixed Deposit

Axis Bank Fixed Deposit

Axis Bank is offering a deposit rate of 2.50 percent to 5.75 percent to the general public and 2.50 percent to 6.50 percent to senior citizens for a deposit term of 7 days to 10 years. Here are Axis Bank’s current FD rates, which are effective as of June 22, 2021.

Tenure FD Rates For Regular Citizens In % FD Rates For Senior Citizens In %
7 days to 14 days 2.5 2.5
15 days to 29 days 2.5 2.5
30 days to 45 days 3 3
46 days to 60 days 3 3
61 days to 3 months 3 3
3 months to 4 months 3.5 3.5
4 months to 5 months 3.5 3.5
5 months to 6 months 3.5 3.5
6 months to 7 months 4.4 4.65
7 months to 8 months 4.4 4.65
8 months to 9 months 4.4 4.65
9 months to 10 months 4.4 4.65
10 months to 11 months 4.4 4.65
11 months to 11 months 25 days 4.4 4.65
11 months 25 days to 1 year 4.4 4.65
1 year to 1 year 5 days 5.1 5.75
1 year 5 days to 1 year 11days 5.15 5.8
1 year 11days to 1 year 25days 5.1 5.75
1 year 25 days to 13 months 5.1 5.75
13 months to 14 months 5.1 5.75
14 months to 15 months 5.1 5.75
15 months to 16 months 5.1 5.75
16 months to 17 months 5.1 5.75
17 months to 18 months 5.1 5.75
18 months to 2 years 5.25 5.9
2 years to 30 months 5.4 6.05
30 months to 3 years 5.4 5.9
3 years to 5 years 5.4 5.9
5 years to 10 years 5.75 6.5
Source: Axis Bank

ICICI Bank Fixed Deposit

ICICI Bank Fixed Deposit

For a deposit period of 7 days to 10 years, ICICI Bank is providing a deposit rate of 2.50 percent to 5.50 percent to the general public and 3.00 percent to 6.30 percent to senior citizens. The following are the current ICICI Bank FD rates, as of October 21, 2020.

Tenure Regular FD Rates Senior Citizens FD Rates
7 days to 14 days 2.50% 3.00%
15 days to 29 days 2.50% 3.00%
30 days to 45 days 3.00% 3.50%
46 days to 60 days 3.00% 3.50%
61 days to 90 days 3.00% 3.50%
91 days to 120 days 3.50% 4.00%
121 days to 150 days 3.50% 4.00%
151 days to 184 days 3.50% 4.00%
185 days to 210 days 4.40% 4.90%
211 days to 270 days 4.40% 4.90%
271 days to 289 days 4.40% 4.90%
290 days to less than 1 year 4.40% 4.90%
1 year to 389 days 4.90% 5.40%
390 days to 4.90% 5.40%
18 months to 2 years 5.00% 5.50%
2 years 1 day to 3 years 5.15% 5.65%
3 years 1 day to 5 years 5.35% 5.85%
5 years 1 day to 10 years 5.50% 6.30%
5 Years (80C FD) 5.35% 5.85%
Source: ICICI Bank

HDFC Bank Fixed Deposit

HDFC Bank Fixed Deposit

The HDFC Bank FD Rates are in effect as of May 21, 2021. After the most recent adjustment, HDFC Bank now offers an interest rate of 2.5 percent to 5.5 percent to the general public and 3 percent to 6.25 percent to senior citizens for a deposit term of 7 days to 10 years. Here are HDFC Bank’s current FD rates for a deposit amount of less than Rs 2 Cr.

Tenure Regular FD Rates Senior Citizens FD Rates
7 – 14 days 2.50% 3.00%
15 – 29 days 2.50% 3.00%
30 – 45 days 3.00% 3.50%
46 – 60 days 3.00% 3.50%
61 – 90 days 3.00% 3.50%
91 days – 6 months 3.50% 4.00%
6 months 1 day – 9 months 4.40% 4.90%
9 months 1 day 4.40% 4.90%
1 Year 4.90% 5.40%
1 year 1 day – 2 years 4.90% 5.40%
2 years 1 day – 3 years 5.15% 5.65%
3 year 1 day- 5 years 5.30% 5.80%
5 years 1 day – 10 years 5.50% 6.25%
Source: HDFC Bank

RBL Bank Fixed Deposit

RBL Bank Fixed Deposit

The interest rates of RBL Bank FDs are effective as of July 2, 2021. RBL Bank currently provides an interest rate of 3.25 percent to 6.5 percent to the general public and 3.75 percent to 7 percent to senior citizens for a deposit period of 7 days to 10 years, after the latest revision. RBL Bank’s current FD rates for a deposit amount of less than Rs 3 Cr are listed below:

Tenure Regular FD Rates Senior Citizens FD Rates
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 5.40% 5.90%
12 months to less than 24 months 6.10% 6.60%
24 months to less than 36 months 6.10% 6.60%
36 months to less than 60 months 6.30% 6.80%
60 months to 60 months 1 day 6.50% 7.00%
60 months 2 days to less than 120 months 6.00% 6.50%
120 months to 240 months 6.00% 6.50%
Tax Savings Fixed Deposit (60 months) 6.50% 7.00%
Source: RBL Bank

Yes Bank Fixed Deposit

Yes Bank Fixed Deposit

Yes Bank is offering a deposit rate of 3.25 percent to 6.5 percent to the general public and 3.75 percent to 7.25 percent to senior citizens for a deposit period of 7 days to 10 years. Here are the current Yes Bank FD rates, which are effective as of 03.06.2021.

Tenure Regular FD Rates Senior Citizens FD 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 6.00% 6.50%
3 Years to 6.25% 7.00%
5 Years to 6.50% 7.25%
Source: Yes Bank



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Tata Motors partners with IndusInd Bank to offer new financial solutions for PVs, BFSI News, ET BFSI

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New Delhi: Tata Motors in collaboration with IndusInd Bank has rolled out new financing offers for its passenger vehicle customers. The offers will be available on the company’s ‘Forever Range‘ of cars Tata Altroz, Tata Nexon and Tata Harrier, the company said on Friday.

As part of this partnership, the automaker will provide a ‘Step Up’ scheme where the customers can choose and buy from its range of passenger cars in the country, with a special low EMI option scheme for the first 3-6 months.

Ramesh Dorairajan, head network management and trade finance, passenger vehicle business unit, said, “The recent Covid-19 upsurge has impacted everyone, and to help our passenger car family in these challenging moments, we are delighted to be partnering with IndusInd Bank to roll out special finance schemes. This is in alignment with our constant effort to fasttrack the availability of safe personal mobility solutions to individuals and families at pocket-friendly rates.”

T A Rajagoppalan, executive vice president, passenger vehicles, IndusInd Bank, said, “These innovative financial schemes aim at not only reducing the burden on the customer’s wallet during these tough times but also allow them to prioritise commuting in a hygienic, safe and comfortable environment. We take pride in joining hands with Tata Motors to roll out these schemes.”

Under the ‘Step Up’ scheme, customers can now avail EMI options lowered by 60%, starting from INR 834 per lakh per month, depending on the scheme and the products at an attractive interest rate.

As per the scheme, the EMI payments will remain lower for 3-6 months depending on the convenience of the buyer. This will be provided with non-income proof funding and flexible tenor options ranging from 1 to 7 years, depending on the product and variant, Tata Motors said in a media release.



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5 Best 3-Year Fixed Deposits For Both Regular & Senior Citizens

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Investment

oi-Vipul Das

|

As a risk-averse investor, you may not be interested to invest in fixed deposits of banks due to the current low-interest rate regime. As a result, investors are searching for secure debt instruments with high interest rates, best-performing debt mutual funds and large-cap funds to get higher returns than fixed deposits. However, most of the debt instruments are for the long-term whereas mutual funds provide market-based returns which investors with a low-risk appetite and especially senior citizens may not consider investing.

So it would not be a major concern for them, as they can get higher interest rates than small finance banks on fixed deposits. These are the banks that not only provide higher returns than leading private and public sector banks but also fall under the guidelines of DICGC insurance coverage. So if you have a personal finance goal of 3 years and are hunting for a secure investment, then here are the banks that are currently promising best interest rates on 3-year fixed deposits of below Rs 2 Cr.

3-Year Fixed Deposits of Small Finance Banks

3-Year Fixed Deposits of Small Finance Banks

Among the small finance banks, Ujjivan Small Finance Bank followed by Jana Small Finance Bank are currently promising higher interest rates on 3-year fixed deposits. Here are the top 5 small finance banks that are offering higher interest rates on 3-year fixed deposits.

Banks 3 Year FD Rates For Regular Citizens 3 Year FD Rates For Senior Citizens W.e.f.
Ujjivan Small Finance Bank 6.75% 7.25% 05.03.2021
Jana Small Finance Bank 6.50% 7.00% 07.05.2021
Equitas Small Finance Bank 6.35% 6.85% 1st June, 2021
AU Small Finance Bank 6.25% 6.75% 23.06.2021
Suryoday Small Finance Bank 6.25% 6.50% 21.06.2021
Source: Bank Websites

3-Year Fixed Deposits of Private Sector Banks

3-Year Fixed Deposits of Private Sector Banks

Among the leading private sector banks, IndusInd followed by DCB Bank and RBL Bank are currently promising the best interest rates on 3-year fixed deposits. Here are the top 5 private sector banks that are promising higher interest rates on 3-year fixed deposits.

Banks 3 Year FD Rates For Regular Citizens 3 Year FD Rates For Senior Citizens W.e.f.
IndusInd Bank 6.50% 7.00% 04.06.2021
DCB Bank 6.50% 7.00% 15.05.2021
RBL Bank 6.10% 6.60% July 2, 2021
Yes Bank 6.00% 6.50% 03.06.2021
Karur Vysya Bank 5.50% 6.00% 08.07.2021
Source: Bank Websites

3-Year Fixed Deposits of Public Sector Banks

3-Year Fixed Deposits of Public Sector Banks

Union Bank of India and Canara Bank are among the top public sector banks in terms of offering interest rates on 3-year fixed deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, guarantees fixed deposit investments up to Rs 5 lakh. The top 5 commercial banks presently offering higher returns on 3-year fixed deposits are listed below.

Banks 3 Year FD Rates For Regular Citizens 3 Year FD Rates For Senior Citizens W.e.f.
Union Bank of India 5.50% 6.00% 09.07.2021
Canara Bank 5.40% 5.90% 08.02.2021
Axis Bank 5.40% 5.90% 22.06.2021
Bank of India 5.15% 5.65% 01.07.2021
State Bank of India 5.10% 5.60% 08.01.2021
Source: Bank Websites

Story first published: Saturday, July 10, 2021, 12:28 [IST]



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Stocks To Buy In July From Angel Broking For UpTo 37% Gains

Personal Finance

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1. Jindal Steel:

Jindal Steel & Power Ltd. (JSPL) is one of India’s largest Iron & steel companies with an installed capacity of 8.6mn Tonne at the end of FY2021. Global steel cycle has turned around due to normalization of demand in developed economies due to reopening of the economies. This has led to significant increase in demand for steel which in turn has led to record high international steel prices. Moreover, China’s focus on limiting domestic production and removing export rebates for various categories of steel has also led to fall in Chinese exports which has led to lower domestic prices in China but has led to firming of international steel prices, said the report.

Substantial de-leveraging a major plus

For the q4FY21 period, JSPL has posted a very strong set of numbers due to firm domestic prices and availability of low cost iron ore from Sarda mines. The company has also been deleveraging its balance sheet with net debt expected to comedown to approximately Rs. 12,600 cr by FY2022 which should lead to a rerating in the stock. At current levels the stock is trading at EV/EBIDTA of 4.0xFY2022 EBIDTA and offers value given the upturn in global steel cycle.

The stock has been given a ‘Buy’ with a target price of Rs. 550, this implies gains of 37% from the last traded price as on July 7 as of Rs. 400 per share.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/Sales
March (` cr) (%) (` cr) (`) (%) (x) (x) (x)
FY2022E 47159 31.1 6658 69 18 5.7 1.1 4
FY2023E 46857 28.5 6178 64 17.2 6.2 1.02 4

2. Quess Corp:

2. Quess Corp:

This is one of India’s leading human resource companies offering a range of solutions to employers for fulfilling their hiring requirement. The company is in the fast growing field of providing staffing solutions to companies and has registered a revenue CAGR of 52.6% between FY16 to FY21.

Hiring pick up is an advantage to this workforce stock

The company’s revenue got impacted in the H1FY21 but now as the demand for staffing solution increased, there was seen a good recovery. Now even as the second wave could impact q1FY22 results, for the rest of the financial year, the company’s performance is likely to improve on account of outsourcing of the non-core positions post the pandemic.

“Moreover, Quess Corp is trading at a P/E multiple of 20.0xFY23 EPS which is at a significant discount to Team Lease despite having similar return ratios.

Given similar growth profile and return ratios we feel that Quess Corp offers value at current levels and rate it a BUY”, added the brokerage report.

The target suggested for the scrip is Rs. 1060, implying a possible upside of 31% from the price of Rs. 808 when the scrip was recommended. Note the price for upside reference is the closing price of the scrip as of July 7, 2021.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/Sales
March (` cr) (%) (` cr) (`) (%) (x) (x) (x)
FY2022E 13037 5.4 442 29.9 16.4 27 3.4 0.9
FY2023E 15905 5.5 627 42.4 17.5 19.1 2.8 0.8

3. Stove Kraft:

3. Stove Kraft:

Stove Kraft Ltd (SKL) is engaged in the business of manufacturing & selling kitchen and

Home appliances products like pressure cookers, LPG stoves, nonstick cookware etc. under the brand name of ‘Pigeon’ and ‘Gilma’. In the Pressure Cookers and Cookware segment, over the last two years, the company has outperformed Industry and its peers.

Competitive advantage to organised players will help the company

Post Covid, organize players are gaining market share from unorganized players which wouldbenefit the player like SKL.”Going forward, we expect SKL to report healthy top-line & bottom-line growth on the back of new product launches, strong brand name and widedistribution network”, added the company.

The company sees the scrip of SKL to hit a price of Rs. 950, an upside of 28% from the price of Rs. 740 (at the time when the stock was recommended).

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/Sales
March (` cr) (%) (` cr) (`) (%) (x) (x) (x)
FY2022E 970.6 0.132 79.7 24.5 21 30.2 5 4.7
FY2023E 1125.9 0.133 97.6 30 20.5 24.7 3.9 3.5

Disclaimer:

Disclaimer:

All of the above stocks are picked from brokerage report of Angel Broking. Investing in stocks is risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies Pvt Ltd is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.



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5 Mutual Funds Schemes To Invest That Have A 5-Star Rating

Personal Finance

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Kotak Equity Opportunities Fund

Kotak Equity Opportunities Fund has been rated 5-star by Value Research. The fund invests in a mix of large and mid cap stocks across sectors.

A SIP in the fund started 3-years ago for Rs 10,000 each month would have generated a corpus today of more than Rs 5.30 lakhs. Kotak Equity Opportunities Fund has given a returns of 54% in the last 1-year, while the 3-year returns are 18% on an annualized basis and 17% for 5-year returns on an annualized basis. Investors can look at investing in the growth option as the dividends are anyway taxable. The growth option has a net asset value of Rs 197.184.

The fund has investment in large size companies and more than 95% is invested in equities.

Canara Robeco Bluechip Equity Fund

Canara Robeco Bluechip Equity Fund

This fund has a 5-star rating from CRISIL. Canara Robeco Bluechip Equity Fund invests its money in largecap stocks, which means should the indices fall, so would returns, since bulk of these are index stocks. The fund has given a superlative returns of 45% in the last 1-year, while the 5-year returns are 16% on an annualized basis.

Investors can start an SIP with a sum of Rs 1,000 each month. Canara Robeco Bluechip Equity Fund has about 94% of its money invested in largecap equities and the balance in cash and cash equivalents. The stocks that are being held in the portfolio include names like HDFC Bank, Infosys, Reliance Industries, ICICI Bank and Tata Consultancy Services.

HDFC Equity Savings Fund

HDFC Equity Savings Fund

This fund has been rated 5-star by Morningstar. This is a good fund for those looking at a very balanced portfolio. Equity-savings fund tend to invest, though not exactly about a third of your money each in equity shares, bonds and arbitrage opportunities. It may not be that exactly the same amount is parked, but, there could be slight variations. In short, they are pretty much tilted towards diversification and hedging risks from volatile equities.

The fund’s debt holdings are in the bonds of Punjab National Bank, Canara Bank, NCDs of Vedanta, Treasury bills etc. On the other hand the equity exposure is to stocks like HDFC, Infosys, Reliance etc. A good mutual fund scheme for those looking to diversify their portfolio.

ICICI Prudential Money Market Fund

ICICI Prudential Money Market Fund

If you are looking at zero risk for your investment then money market funds are the way to go. Returns are not too great and could be like bank deposits. However, the money is secure as money market funds mostly invest in government securities.

To churn slightly higher returns they also invest in corporate debt. 100% of the amount is generally invested in debt. The fund has not generated a great return and 1-year returns are just under 4%, while 5-year returns are near 7%.

This fund has been rated as 5-star by Morningstar.

BOI AXA Tax Advantage Fund

BOI AXA Tax Advantage Fund

These are ELSS schemes that give you tax returns under SEC80C of the Income Tax Act. BOI AXA Tax Advantage Fund like most other ELSS schemes invest almost all of their money in equities. This fund has parked almost 98% in equities.

The returns from the fund have been as high as 71% in the last 1-year, while the 3 and 5 year returns are around that 19% mark.

This fund has a 5-star ratings from Crisil.

Disclaimer

Disclaimer

Mutual Fund investing is subject to market risks. One should exercise caution and invest only if he or she is able to bear losses. The above article is for information purposes only. Neither the author nor Greynium Information Technologies would be responsible for losses incurred on decisions based on this article. Please be careful and consult an advisor before investing.



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