Category: Personal Finance

1. Mirae Asset Emerging BlueChip Regular-G:

This is a CRISIL 5 star rated fund from the house Mirae Asset Mutual Fund. The total AUM of the fund is a good Rs.17,892 crore. The large and mid cap fund carries an expense ratio of 1.67% and falls in the high risk category as per the mutual fund risk-o-meter. The benchmark of the fund is Nifty 50.

SIP in the fund can be started for Rs. 1000 while for the lump sum it is Rs. 5000. Over a period of 3 years, a monthly SIP of Rs. 10000 i.e. a total investment of Rs. 3.6 lakhs is now worth Rs. 5.61 lakh.

Top holdings of the fund ICICI Bank, HDFC Bank,Infosys, Axis Bank, SBI, Bharti Airtel and TCS among others.

2. UTI Flexicap Reg-G

This Flexi cap scheme is again a five star rated fund by CRISIL. The fund size is Rs. 18404 crore and carries an expense ratio of 2.01%. Benchmark of the fund is Nifty 500.

Minimum SIP investment in the fund is Rs. 500. Rs. 10000 monthly SIP (with a total investment of Rs. 3.6 lakh) after a period of 3 years has grown in value to Rs. 5.5 lakh currently.

Top holdings of the fund HDFC Bank, Bajaj Finance, HDFC, LTI, Kotak Mahindra Bank, Astral Poly Technik etc

3. Axis Bluechip-G:

The large cap fund is given a 3 star rating by CRISIL that signifies average performance among peers. Expense ratio of the fund is at 1.77%. The total assets under management of the fund is Rs. 27142 crore and is again a high risk bet as per the mutual fund risk-o-meter.

The fund has underperformed the benchmark Nifty 50 TRI with a return of 50.49% over a 1-year period. SIP in the fund could be started for a minimum of Rs. 500. In the last years, SIP of monthly Rs 10,000 has gained up to Rs. 4.95 lakh currently.

Top holdings of the fund include HDFC Bank, Infosys, Bajaj Finance, ICICI Bank, TCS, Kotak Mahindra Bank and Avenue Supermarts among others.

4. Kotak Flexicap Reg-G:

This is again a 3-Star rated fund by CRISIL. The fund commands a huge AUM of Rs. 35,955 crores. Expense ratio of the fund is 1.6%. This flexicap scheme with allocation in equity as well as debt (of a small portion) is majorly invested into large caps.

Nifty 50 is the benchmark for the fund and considering the last 1-year performance, the fund has underperformed the Nifty index.

SIP in the fund could be started for Rs. 500. A SIP investment of monthly Rs. 10000 in 3-years time is now worth Rs. 4.89 lakh.

Top holdings of the fund are ICICI Bank, HDFC Bank, Infosys, RIL, Ultratech Cement etc.

5. SBI Large & Mid-cap Growth:

This is again a 3-star rated Large and Mid cap fund by SBI Mutual fund. The fund’s size is Rs. 4082 crore and carries an expense ratio of over 2 percent. Typically those with 3-4 years of investment horizon should park funds into these funds and also be prepared for volatile times.

The fund’s benchmark is Nifty 50. SIP in the fund could be started for Rs. 500.

Top holdings of the SBI Large and Mid cap growth fund are HDFC Bank, Page Industries, ICICI Bank, SBI, Infosys and Balkrishna Industries among others.

How mutual funds are taxed?

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1. HDFC

For the housing financier, ICICI Direct has set a target price of Rs. 2950 in the short term of 3 months. ‘Buy’ in the stock is advised to be initiated in the range of Rs. 2525-Rs.2565 and a stop loss of Rs. 2348 has to be placed.

Rationale given: HDFC Ltd has relatively underperformed in the current up move of the markets but recently witnessed a sharp pullback with better-than-expected results. However, the stock has been exhibiting significant accumulation in its price distribution pattern. The daily returns are largely distributed from 0% to 2%. Moreover, the right tail is significantly longer than the left tail suggesting positive bias prevailing in the stock.

From a delivery perspective, the stock saw strong delivery based action recently. After a round of cool-off, fresh delivery buying was evident. It seems there is ongoing accumulation in the stock at every levels.

The Z score has also been exhibiting high delivery activity that took place in the stock recently. The 30 day volatility moved higher than its 60 day volatility due to sharp up move being seen in the stock. However, we believe it will subside in the days to come and ongoing momentum may continue in the stock.

2. Page Industries:

The owner of Jockey brand, Page Industries, is one of the expensive scrip listed on the Indian bourses. Currently, the scrip of Jockey is priced at Rs 29,699 and its 52-week high price is Rs. 32,460.

For the quarter ended March of FY21, the company posted 272% jump in its profit at Rs. 115.56 crore in comparison to Rs. 31 crore in the corresponding period last year. This was owing to sharp uptick in demand for the company’s product line across categories.

ICICI Direct sees the stock to hit a price of Rs. 36,200, implying an upside of over 17.5%. Stop loss is advised to be placed at Rs. 27,850. A ‘ buy’ in the scrip is recommended in the range of Rs. 30,350-30,650.

“We expect stocks like Page Industries to resume their fresh uptrend from here onwards. The reason for this view is the pick-up in delivery volumes along with significant low leverage prevailing in the stock The key trigger is likely to come from the future segment where the open interest has declined substantially in the last few months despite a range bound to positive performance seen in the stock.

The current open interest in the stock is significantly low while marginal accumulation was observed in the last few sessions. We believe with fresh long additions, the stock should start performing from here onwards. The stock has been hovering in the range of 27500-31000 in the last few months. Despite many attempts, it failed to move in line with the broader markets. However, in the May series, it moved up on the back of fresh delivery volumes. We believe recent declines provide a good opportunity to enter the stock once again.

The stock witnessed one year high delivery activity on April 26, 2021 near Rs. 30500 levels. After a round of decline from these levels, it has finally moved above it in May post its quarterly results. The recent declines provides a good risk reward opportunity in the stock The stock has been finding it tough to move above its long term mean+2* levels in the last one year despite many attempts. It has been trading below these levels since early 2020. Currently, these levels are placed near Rs. 30800 and a move above these levels should trigger further upsides towards Rs. 36000 levels

3. Tata Motors:

For the auto major, the brokerage firm has set a target for Rs. 405, i.e. an upside of over 14 percent given the recommended buy price of Rs. 355 in a short term of 3 months. Stop loss suggestion for the scrip is Rs. 324. Buying in the scrip is advised at a price of Rs. 348-358.

Rationale: The stock recently registered a breakout above the last four month’s consolidation range (Rs. 342- 279), thus opening upside towards Rs. 405 levels as it is the measuring implication of the recent range breakout (342-279=63 points) added to the breakout area of Rs. 342 signalling upside towards Rs. 405.

Key point to highlight is that the stock has witnessed a shallow retracement while a higher base above the 20 week’s EMA and the 38.2% retracement of previous up move (Rs. 157-342) signals a robust price structure and higher base formation. The weekly 14 period’s RSI has recently generated a buy signal, thus validating the positive bias, said the research report.

The auto index is seen breaking above its last five month’s consolidation signalling resumption of up move. Among large cap auto stocks we remain constructive on Tata Motors as it formed a higher base above the major support area of Rs. 280 and is seen resuming its primary up trend, thus offering a fresh entry opportunity.

Disclaimer: Note the above recommendations are taken from brokerage report and should not be considered as investment advice as neither the company nor its authors shall be held liable for any kind of loss incurred. The story is only informational purpose.

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If you fail to link your Permanent Account Number (PAN) with your Aadhaar, you may experience higher tax deduction at source (TDS) on your interest income, dividend, and other income, as well as the termination of your systematic investments in mutual funds and the inactivation of your demat accounts if any. The Income Tax Department has mandated that Aadhaar must be linked to a PAN by June 30, 2021. In case it is not done on or before the stated deadline, your PAN will be considered as inoperative or invalid from July 1, 2021 in line with Rule 114AAA(3) of the Income Tax Act.

According to Section 206AA, a taxpayer who receives taxable income is required to provide their PAN to the receiver of such amount. This is relevant for both resident and non-resident taxpayers. In the instance of residents, payments would include salary, rent, and so on. If the PAN furnished to the receiver or deductor is unserviceable or invalid, the individual is considered to have missed submitting his or her PAN to the deductor, and the regulations of sub-section 206AA(1) would apply accordingly. As a result, in line with Rule 114AAA(3), in case of an invalid PAN due to non-linking with Aadhaar, TDS shall be levied at a higher rate of 20% in compliance with Section 206AA of the Act.

The higher TDS rate of 20%, on the other hand, will be deducted primarily for certain income – such as interest on bank or post office fixed deposits, dividend income from mutual funds, and so on. Therefore, keep in mind that under Section 139 AA of the Income Tax Act 1961, every individual who has been issued a PAN and an Aadhaar number must link both documents by June 30, 2021. You can compute your income and taxes, submit an income tax return (ITR), and seek a refund if the tax deducted does not reflect the exact tax payable.

Therefore, you must adhere within the deadline, since once a higher tax is calculated, the receiver may not execute a refund in such situations, and you must seek the refund of the surplus tax deducted when you file your Income Tax Return (ITR). Individuals who do not finish the linking procedure by the deadline will also risk Rs 1,000 as a penalty. The penalty for failing to link a PAN with Aadhaar card has been introduced under a new section (Section 234H), of the Income Tax Act.

Why PAN and Aadhaar linking is a must?

You must provide your PAN card while opening a bank account, Demat account, or requesting for a debit or credit card with a bank. If you are conducting a transaction for more than Rs 50,000, you must provide your PAN. If you deposit more than Rs 50,000 or Rs 5 lakh in lump sum in a fiscal year in a bank or post office account, you must provide your PAN. When purchasing mutual funds, debentures, or other securities worth more than Rs 50,000, you must provide your PAN. If you are acquiring an immovable property for Rs 10 lakh or more, you must provide your PAN card. At any one time, a cash payment of more than Rs 50,000 in relation to travel to any foreign nation or payment for the purchase of any foreign currency is prohibited.

For payment of more than Rs 50,000 to pre-paid payment instruments in a fiscal year, PAN is also required. Deposit of more than Rs 50,000 against a life insurance premium in a fiscal year. Selling or purchasing securities other than shares for more than Rs 1 lakh in a single transaction. Purchase or sale of shares in a firm that is not listed on a recognised stock exchange for an amount of more than Rs 1 lakh per transaction. Sale or acquisition of goods or services of any kind other than those listed above for more than Rs 2 lakh per transaction.

PAN and Aadhaar linking is a must not only for filing income tax returns but also to conduct the above-mentioned transactions that require a PAN. That being said, the PAN card must be linked to an Aadhaar card today or on or before June 30, 2021.