Category: Personal Finance

HDFC Floater Rate Debt Fund Direct Plan Growth

This fund was launched in January 2013 by the fund house HDFC Mutual Fund. HDFC Floating Rate Debt Fund Direct Plan has a one-year growth rate of 6.30 percent. According to Value Research statistics, it has generated 8.36 percent average yearly returns since its inception. Axis Bank Ltd., Embassy Office Parks REIT, Canara Bank, Gujarat State, Muthoot Finance Ltd., and the Reserve Bank of India are the fund’s top holdings.

The fund’s expense ratio is 0.23 percent, and its debt sector allocation is allocated across financial, energy, sovereign, construction, and others. The fund presently has Rs 17,250 Cr in assets under management (AUM), and the latest NAV as of July 8, 2021 is Rs 38.91. The fund not only has outstanding stability in terms of generating returns but also has provided good returns in the past, according to the historical performance. SIPs in this fund can be started with a minimum contribution of Rs 1000 and there is no exit load.

ICICI Prudential Floating Interest Fund Direct Plan Growth

This Floater mutual fund scheme was launched in January 2013, by the fund house ICICI Prudential Mutual Fund. ICICI Prudential Floating Interest Fund Direct Plan -Growth returns over the last year are 6.96 percent, according to Value Research data. Since its inception, it has generated an average yearly return of 8.82 percent. State Bank of India, Gujarat State, Motherson Sumi Systems Ltd., SRF Ltd., Rajasthan State, Embassy Office Parks REIT, and Motherson Sumi Systems Ltd. are the fund’s top holdings.

The expense ratio of the fund is 0.60 percent, and its debt sector allocation is balanced between sovereign, construction, and others. The fund’s current AUM is Rs 12,113 Cr and the latest NAV as of 8 July 2021 is Rs 350.61. The fund does not have an exit load and one can start SIP with Rs 500.

Aditya Birla Sun Life Floating Rate Fund Direct Plan Growth

Aditya Birla Sun Life Mutual Fund introduced this Floater mutual fund plan in January 2013. Aditya Birla Sun Life Floating Rate Direct Fund’s 1-year growth results are 5.04 percent. According to Value Research statistics, it has produced 8.56 percent average yearly returns since its inception. The fund has a 0.23 percent expense ratio, and its top holdings include Axis Bank Ltd., Aditya Birla Finance Ltd., Haryana State, National Bank For Agriculture & Rural Development, Sikka Ports and Terminals Ltd., Indian Oil Corporation Ltd., and Nabha Power Ltd.

The debt sector allocation of the fund is categorized into financial, energy, sovereign, and others. The fund’s current AUM is Rs 14,324 Cr, and the latest NAV is Rs 274.88 as of July 8, 2021. There is no exit load on the fund, and one may begin SIP with as little as Rs 1000.

Nippon India Floating Rate Fund Direct Growth

The fund house Nippon India Mutual Fund introduced this Floater mutual fund product in January 2013. The 1-year returns for Nippon India Floating Rate Fund Direct-Growth are 5.82 percent. According to Value Research, it has achieved 8.59 percent average yearly returns since its inception. The fund’s major holdings are GOI, Rural Electrification Corporation Ltd., Madhya Pradesh State, Tata Capital Housing Finance Ltd., State Bank of India, LIC Housing Finance Ltd., Reliance Industries Ltd., Axis Bank Ltd., HDFC Ltd, and National Bank For Agriculture & Rural Development.

The fund has an expense ratio of 0.24%. The fund’s debt sector allocation is segmented into engineering, financial, energy, sovereign, and others. As of July 8, 2021, the fund’s current AUM is Rs 15,676 Cr, and the latest NAV is Rs 36.60. The fund has no exit load, and one may start a SIP with as low as Rs 100.

Best Performing Floater Funds In 2021

Here are the best performing floater funds in 2021 based on past returns and ratings.

Should you invest?

Starting from March 2021 till now, floater debt funds have done really well, the reason behind this is floater rate funds invest in AAA-rated instruments and they have given average returns of 7 to 8 percent in the last 1 to 3 years. Floater funds are diversified with fixed-coupon bonds and derivative instruments, which means that in the current environment, these funds can provide high returns in the short term, as this category has gained popularity in recent months.

Because the funds primarily invest in floating-rate securities, the return on floater funds would rise if there is a surge in interest rates. As interest rates are projected to steadily rise in the coming months, investors may invest in floater funds for short to medium term. Investors seeking consistent returns can consider investing in ultra-short term or liquid funds of this category, but keeping default or credit risk in consideration.

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

Sterling & Wilson Solar

It’s a small-cap stock with a Market cap of Rs. 4604 crores. The Company is a global pure-play, end-to-end solar engineering, procurement and construction (EPC) solutions provider.

The stock price has gone from 185 to 345 levels during a year. It’s a prominent company in this sector and fundamentally the stocks look good as promoters have recently repaid Rs. 67 crores worth of ICD’s in the last quarter and they assured pending ICDs to be repaid back by Sept 2021. The further company expects to receive Rs. 500 cr as EPC Dues.

We expect the stock price near-term target around Rs. 360 to up Rs. 410 and have a buy on this small cap stock. The current share price of this stock is Rs 271.

Kiri Industries

It’s a small-cap stock with a market cap of Rs. 1992 crores. It is the fastest-growing Dyes, Intermediates & Chemicals company. In the last six months, the stock has gone up from 525 levels to 650 levels. It is a fundamentally good company and one can buy at current levels of Rs. 590 with a target price of Rs. 750 in the near term. The shares are currently trading at Rs 588.

Olectra Greentech

It’s a small-cap stock with a market cap of Rs. 1995 crores. This Company is a pioneer in electric bus manufacturing and insulators in India. The company is using new-age technology and has been a part of building the Power Transmission & distribution in India.

The stock has performed very well & gone up from 55 levels to 245 level in past one year. We recommend this stock to buy with a target price of 320-350 in the near term.

Poly Medicure

It’s a Mid-Cap stock with Market cap of Rs. 9612 crores. Poly Medicure Limited is one of the leading manufacturers of high-quality medical devices across the world. The stock price has given a super performance from Rs 293 to 1165 levels in one year period i.e upside 300% upside. We expect the price to go up further to 1400-1450 in the near term and can maintain a buy at current levels of Rs. 1000 on this stock.

Laxmi Organic

It’s a Mid-Cap stock with a Market cap of Rs. 6346 crores. This company is manufacturer of Speciality Ingredients and solvents catering to various sectors like pharmaceuticals, agrochemicals, food packaging, pigments, and coatings. The stock has shown a brilliant performance from 145 to 250 levels in one year’s time. The stock is in full momentum and fundamentally we expect the price to reach 320-340 levels.

The author by Kapil Goenka is Director at C.M. Goenka Stock Brokers.

Disclaimer

All of the above stocks are recommended by Kapil Goenka, Director at C.M. Goenka Stock Brokers. 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.

Fixed Deposits

Undoubtedly fixed deposits are the best investment choice for regular customers and senior citizens. Fixed deposits are well known for flexible tenure which ranges from 7 days to 10 years and assured returns. Talking about flexible tenure, it is the most secure investment which can be picked up for short-term, mid-term as well as long-term. Amid the current low-interest rates regime of leading banks, you may not want to invest in them, but there are some small finance banks that may give higher returns than what private and commercial banks are offering on their fixed deposit schemes.

For 1-year fixed deposits there are small finance banks that currently give you an interest rate up to 6.75% and thus are also insured by DICGC up to Rs 5 lakhs. Talking about 1-year fixed deposits you can also invest in a fixed deposit scheme of private sector banks and post office. In a post office time-deposit account, you can get an interest rate of 5.5% on 1-year deposits. On the other side, private sector banks are offering interest rates of up to 6.10% on 1-year fixed deposits. Here are the top 5 banks which are currently promising higher interest rates on 1-year fixed deposits.

Recurring Deposits

Recurring deposits work just like fixed deposits but the twist is, in fixed deposits, you have to make a lump-sum deposit and in recurring deposits, you have to make a monthly contribution just like a mutual fund SIP. Recurring deposits are well known for their safety, higher interest rates, and best for short-term goals. Investing in recurring deposits are highly preferred for risk-averse investors who do not want to welcome market-based returns in their portfolio.

One can make the best out of an RD scheme if he or she stays invested for the entire maturity term, as making a premature withdrawal may lose interest rates. In this scenario making mutual fund SIPs can be a decent choice. But if getting risk-free returns in the short-term is your only goal, then here are the top banks that are currently promising higher interest rates on recurring deposits.

Arbitrage Mutual Funds

For new investors or investors with a low-risk appetite, arbitrage mutual funds can be a good pick. These are the mutual funds that have their asset allocation across cash and derivatives markets to provide returns to the depositor. To maximize returns, it primarily exploits price differences between present and future instruments. To take advantage of differing prices, the fund managers of these hybrid funds buy and sell shares in multiple markets simultaneously in order to generate returns.

Since the purchasing and selling price of stocks are well known to the fund manager, arbitrage mutual funds tend to be less risky. Because they are equity funds, they are eligible for the same tax benefits as equity-based instruments. As a consequence, investing in arbitrage mutual funds for a year might be a good option for the tax benefits available for equity funds and reasonable average returns of 4 to 6 percent. Here are the 4 best performing arbitrage mutual funds to invest in 2021, based on rating and returns.

Post Office Time Deposit

Just like a fixed deposit account of banks, it is a term deposit scheme provided by India Post. Post office term deposit account comes with a maturity period of 1 to 5 years. It is among the best and safe debt instruments to bet for short-term goals, as it is backed by the government of India. In post office term deposit account, interest rates are payable annually but are revised on a quarterly basis. The interest received is added to your income and taxed according to your income tax bracket. One can open a post office time deposit account with a minimum amount of Rs 1000 and in multiples of Rs 100 with no maximum deposit limit.

A post office time deposit account can be opened individually, jointly (up to 3 adults), or on behalf of minors. For the quarter of July to September 2021, the government has recently kept interest rates unchanged for small savings schemes. A post office time deposit of one to three years will earn an interest rate of 5.5 percent. Whereas a 5-year deposit term will earn an annual interest rate of 6.7 percent per annum.

Debt Mutual Funds

Investors with a low-risk appetite, short-term goals, and seeking steady income can invest in debt mutual funds. Debt funds are less turbulent and thus less risky than equity funds, mid-cap funds, and small-cap funds. Those looking to invest in market-linked instruments for less than a year can invest in low-duration debt funds. Low duration debt mutual funds are the funds that invest over the course of 6 to 12 months across money market and debt instruments.

4 Best High Rated Debt Mutual Funds Better Than PPF

The reason behind picking-up low duration debt funds for you is, these funds may provide a reasonable level of return for a modest level of risk for your short-term financial goal. But before investing in low-duration debt funds, investors should and should keep in mind various risks such as credit risk, interest rate risk, inflation risk, reinvestment risk, etc. Here are the 5 best performing low-duration debt funds to invest in 2021, based on rating and returns.

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

SBI General Insurance, one of India’s largest general insurers, today announced the launch of the Arogya Supreme, a complete health insurance plan. This plan is meant to provide clients with comprehensive health insurance coverage, offering 20 basic and optional coverage options.

SBI Arogya Supreme Key Features

• 20 basic covers and 8 extra covers are included in this comprehensive package.
• A large number of Sum Insured options are available.
• Long-term policy options of up to three years are available.
• Domestic air ambulance coverage, compassionate benefit, recuperation benefit, and e-opinion coverage are all unique features.
• To preserve cumulative bonus and improved cumulative bonus, an NCB protective optional cover is provided.
• As a renewal benefit, preventive health check-up coverage is available.
• Discounts such as family discounts, loyalty discounts, and term policy discounts are available.

SBI Arogya Supreme: Scope of Cover

The company will pay for an insured person’s medically necessary hospitalization if the illness or accident occurred during the policy period. Payment is subject to the total insured and limits, including cumulative bonus/enhanced cumulative bonus, if applicable, as defined on the schedule of coverage in the policy schedule, unless differently stated in the policy terms and conditions.

Age Criteria

Min Max
Adult 18 yrs 65 yrs
Child 91 days 25 yrs

Policy Duration: 1 Year / 2 Years / 3 Years.

Major Exclusions

• Investigation and Evaluation Rest Cure, rehabilitation, and respite care Obesity / Weight Control Change of Gender Treatments Cosmetic or Plastic Surgery Hazardous or Adventure Sports, Breach of Law.
• Treatment for alcoholism, drug or substance misuse, or any other addictive disorder, as well as the repercussions. Treatments received in health hydros, nature cure clinics, spas, similar establishments, or private beds are recognized as a nursing home attached to such establishments, or admittance organized entirely or partially for domestic reasons.
• Unless recommended by a Medical Practitioner as part of a Hospitalization claim or Day Care Procedures, dietary supplements and substances that may be acquired without a prescription, including but not limited to Vitamins, minerals, and organic compounds, are not covered.
• The error of Refraction, Unproven Therapies, Infertility and Sterility, and Maternity leave are all excluded.

SBI Arogya Supreme: What the Policy cover?

• In-patient Hospitalization Treatment
• Mental Healthcare
• HIV / AIDS Cover
• Genetic Disorder
• Internal Congenital Anomaly
• Bariatric Surgery Cover
• Advanced Procedures
• Cataract Treatment
• Pre-Hospitalization Cover
• Post-Hospitalization Cover
• Domiciliary Hospitalization
• Day Care Treatment
• Road Ambulance
• Organ Donor Expenses
• Alternative Treatment / AYUSH
• Recovery Benefit
• Domestic Emergency Assistance Services (including Air Ambulance)
• Sum Insured Refill
• Compassionate Visit
• E-Opinion

Optional Covers

• Hospital Cash Benefit
• Major Illness Benefit
• Additional Sum Insured for Accidental Hospitalization
• Enhanced Cumulative Bonus
• No Claim Bonus Protector
• Co-Payment
• Any Room Upgrade
• Deductible

Renewal Benefit

• Preventive Health Check-up
• Cumulative Bonus