Category: Personal Finance

Bitcoin down 10% to $33,747, ether slips 14%, BFSI News, ET BFSI

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Bitcoin fell 13% on Sunday after the world’s biggest and best-known cryptocurrency suffered another sell-off that left it down nearly 50% from the year’s high.

Bitcoin fell to $32,601 at 1800 GMT (2 p.m. ET), losing $4,899.54 from its previous close. It hit a high for the year of $64,895.22 on April 14.

Ether, the coin linked to the ethereum blockchain network, dropped 17% to $1,905 on Sunday, losing $391.31 from its previous close.

Bitcoin markets operate 24/7, setting the stage for price swings at unpredictable hours.

“Many point to bitcoin’s volatility as untenable,” wrote RBC Capital Markets’ Amy Wu Silverman in a research note published on Saturday. “Indeed, Bitcoin makes severe and dizzying swings.”

Bitcoin had been under pressure after a series of tweets last week by billionaire Tesla Chief Executive and cryptocurrency backer Elon Musk, chiefly his reversal on Tesla accepting bitcoin as payment.

In addition, on Friday China cracked down on mining and trading of the largest cryptocurrency as part of ongoing efforts to prevent speculative and financial risks.

China’s Financial Stability and Development Committee, chaired by Vice Premier Liu He, singled out bitcoin as the asset it needs to regulate more.

The statement, which came days after three Chinese industry bodies tightened a ban on banks and payment companies providing crypto-related services, was a sharp escalation of the country’s push to stamp out speculation and fraud in virtual currencies.

China’s latest campaign against crypto came after the U.S. Treasury Department on Thursday called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service, and the Federal Reserve flagged the risks cryptocurrencies posed to financial stability.



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How PPF Account On Behalf Of A Minor Is Taxed?

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Investment

oi-Vipul Das

|

The Publlc Provident Fund (PPF), which is deemed among the most popular investment options for many investors, help with tax savings as well as long-term wealth creation. In fact, not only adults but even minors can open a PPF account. A minor’s PPF account can be opened for as little as Rs. 500. However, regardless of the number of accounts, the maximum amount that can be deposited in a family’s PPF accounts in a financial year is Rs. 1.5 lakh. The account must be managed by the guardian before the minor reaches the age of 18. To be eligible to open a PPF account for a minor, the below conditions must be satisfied:

Eligibility required to open a PPF account on behalf of a minor

Eligibility required to open a PPF account on behalf of a minor

  • An individual can open one account for each minor or person of unsound mind over whom he or she has guardianship.
  • A legal guardian should be the person who manages the account on behalf of the minor.
  • However, each guardian can only open one account in the name of a minor or a person of unsound mind.
  • After the death of the parents, the grandparents of a minor child can only manage a PPF account if they are legitimate guardians of the minor.
  • A nominee can also be declared while opening a PPF account on behalf of a minor.
  • In a fiscal year, an individual can contribute a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh to the minor’s PPF account.

Documents required to open a PPF account on behalf of a minor

Documents required to open a PPF account on behalf of a minor

At a post office or a specified bank branch, one can open a PPF account on behalf of a minor. To open an account, the individual will be required to submit the below listed documents:

  • The required details of the guardian and minor should be filled out on the account opening form.
  • The guardian’s KYC documents, as well as a photograph, must be attached to the application form and submitted at the concerned bank or post office.
  • Aadhaar card or birth certificate of the minor child as a proof of age must also be submitted.
  • Initial contribution to the PPF account.

Points to keep in mind while opening a PPF account on behalf of a minor

Points to keep in mind while opening a PPF account on behalf of a minor

While opening a PPF account on behalf of a minor, keep the following facts in consideration.

  • A minor’s PPF account can only be managed on his or her behalf by a parent or guardian until the account holder reaches the age of 18.
  • In case the contribution put into the minor’s PPF account comes from the parent’s or guardian’s income, it will be counted in Section 80C of the Income Tax Act and qualify for tax deductions.
  • A minor’s PPF account can be closed by a parent or guardian prematurely for the account holder’s higher education or treatment of life-threatening disease.
  • An individual can make partial withdrawals from a minor’s PPF account starting in the seventh year when the account was opened.
  • Except under exceptional circumstances, such as the account holder’s medical attention, a parent or guardian can close a minor’s PPF account. He or she can only raise a request for the account to be closed after five years have passed since the account was opened.
  • In the case of an account opened on behalf of a minor or a person of unsound mind, the guardian can apply for a loan on the minor’s or person’s behalf.
  • At the request of the guardian, an account opened on behalf of a minor or a person of unsound mind can be extended.

Taxation rules

Taxation rules

A depositor or account holder can contribute a maximum of Rs 1.50 lakh to his or her PPF account, as well as the minor’s PPF account. There is also a cap of Rs. 1.50 lakh that can be deposited in a single PPF account. As a result, your contribution to the PPF account of your one minor child, made jointly by you and your wife, should not surpass Rs 1.50 lakh. If you want to seek the tax benefit under Section 80C, the cap of Rs. 1.50 lakh relates to contributions made to your minor child’s PPF account.



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These Two Deadlines Have Not Changed; Taxpayers Be Mindful

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Taxes

oi-Roshni Agarwal

|

In a bid to offer relief to taxpayers amid the raging second coronavirus wave in the country, the income tax filing deadline has been extended to September 30, 2021 for FY21. But here in note that these two deadlines have not been changed:

These Two Deadlines Have Not Changed; Taxpayers Be Mindful

These Two Deadlines Have Not Changed; Taxpayers Be Mindful

1. Submit form 15G/15H for investment in FD by June 30:

FD investors who do not have taxable income in order to get rid of their liability from the interest pay out on FDs need to submit 15G or 15 H forms with their bank so as to show that their threshold taxable income limit is lower. Now, these forms have to be submitted by June 30.

Regular citizens need to submit form 15G and for citizens the form is form 15G.
Earlier the threshold for TDS deduction was at Rs. 10000 but now this has been increased to Rs. 40000. Now if you wish to avoid TDS deduction on your FD income which is deducted at source by the bank and your income is below taxable limit, you need to submit the forms before the deadline of June 30, 2021.

2. Payment of Self-assessment tax also becomes due:

The payment of self-assessment tax for the financial year 2020-21 is due on July 31 for all those tax payers whose tax after deducting advance tax or TDS is more than Rs. 1 lakh. Now if such taxpayers do not adhere to the deadline there shall be levied a penalty on them. As per 234A of the Income-tax Act, 1961, the penal interest rate at the rate of 1 percent from August 1, 2021 till the ITR filing date shall then be applicable.

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These Investments Can Soon Double Your Income

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1. Debt medium to long term mutual funds:

These funds that typically lend funds to for a period of 4-7 years and hence a full economic life cycle is observed. The fund offers a return of up to 8.85 percent per annuum, so this mutual fund category can double an investors’ money in 7 years and 6 months. Notably this mutual fund is fraught with risk.

2. Short term debt funds:

2. Short term debt funds:

These funds typically can offer a return of up to 9 percent, so the time taken for money to double in this scheme shall be 8 years. Short debt funds park money in corporate for a shorter period of 1-3 years.

3. NPS:

3. NPS:

National pension scheme i.e. aimed at providing you social security benefits during your sunset years has as on May 14, 2021 offered 1-year return of 50-60 percent in case of Scheme E-Tier I account. If the returns remain consistent than the investor shall be able to double his corpus in just 1.44 years.

In scheme C, the maximum of return obtained in the NPS scheme is 9.5 percent on an average, so the time taken to double investors money in the Scheme C shall be 7.5 years.

4. NSC or National Savings Certificate:

4. NSC or National Savings Certificate:

NSC offers tax deduction as part of Section 80C and currently is offering an interest rate of 6.8 percent so the maximum time taken to double your money shall be =72/6.8, 10.5 years. NSC is among the post office savings scheme that is highly safe.

5. Monthly Income Scheme

5. Monthly Income Scheme

Here with an interest rate pegged at 6.6 percent, the investment shall take a total of 10.91 years.

Similarly for other post office savings schemes it shall take between 9- 13 years as per the current interest rate offering to double your money.

Conclusion

Conclusion

NPS scheme with exposure to equity which on equity boom over the past year yielded returns of over 50 percent in the last one year, so it in a case if the returns sustain the scheme shall be able to double your money at the fastest rate. Similarly, MFs both short term and medium to long term will double your returns in 7 years and 6 months to 8 years.

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Bank of Baroda’s New Cheque Payment Rule From June: Check Details

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Planning

oi-Sneha Kulkarni

|

To prevent fraud during cheque payments, Bank of Baroda will make “Positive pay confirmation” mandatory for its customers starting June 1, 2021. Customers will only need to reconfirm their check information if the amount to be processed exceeds Rs 2 lakh, according to the bank.

BOB customers are requested to provide us with advance notice of cheques issued to beneficiaries so that the Bank can move the High-Value cheques without requiring a re-confirmation phone call from your base branch at the time of presentation for payment in CTS clearing, stated Bank of Baroda on its website.

Bank of Baroda's New Cheque Payment Rule From June: Check Details

What is Positive Pay?

Positive Pay is a term that entails reconfirming key information on large-value checks. The issuer of the cheque submits certain minimum details of the cheque (like date, name of the beneficiary/payee, number, etc.) to the drawee bank through electronic channels such as SMS, mobile app, internet banking, ATM, and so on, which are then cross-checked with the presented cheque by CTS. Any difference is reported by CTS to the drawee and presenting banks, which take corrective action.

Positive pay confirmation is proposed to be made mandatory for High Value cheques of Rs.02.00 Lacs and above, starting on June 1, 2021.

Bank of Baroda’s latest cheque payment rule from June:

1) There is no choice for changing or deleting a recorded confirmation in any mode because changes or deletions are not possible once the data is sent to the National Payment Corporation of India’s server. Customers may, however, halt the payment of issued cheques at any time prior to their presentation/payment in CTS clearing or at the counter.

2) If the given key details match the actual cheque presented in the CTS clearing and all else is in order, such as appropriate funds, signature match, and so on, the cheque will be transferred.

3) Confirmations submitted/verified via any channel/mode up to 06.00 PM (daily) will only be processed for the next clearing session. Following that, all confirmations will be processed in preparation for the next clearing session. Confirmation through Branches is available during the respective Branch’s daily business hours. All other modes/channels will be available 24 hours a day, 7 days a week to have Positive Pay confirmations.

4) For each successful submission of Positive Pay confirmation, a reference (registration number) will be sent via SMS to the registered mobile number. Just one mode must be used to provide confirmations.

5) Customers must ensure that they have sufficient funds to present/pay the given cheque/s, whether verified or not.

6) Cheques that are more than three months old from the date of confirmation will not be approved.
The cheque can be dated at some time in the future.
7) In Mobile Banking/Net Banking, customers must enter their login credentials (MPIN, Password, etc.).

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5 Best Mutual Fund SIP Plans To Invest In 2021 For Beginners, First Time Investor For High Returns

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What is Mutual Fund SIP?

SIP stands for Systematic Investment Plan and is a form of investing in mutual funds. A lump sum or one-time payment is another choice for investing.

SIP allows you to invest as little as Rs 500 in a mutual fund, which is not possible for most other investment options. There are a variety of mutual funds to choose from, and you can invest in ones that have investment goals and risk levels that match your risk profile. A Systematic Investment Plan does not require a large sum of money to start, as the minimum investment is as low as Rs 500, and some funds also provide SIPs for as little as Rs 100 per month. As a result, one of the most important strategies for prudent investing is systematic investment plans.

Why SIPs are best for beginners?

Why SIPs are best for beginners?

There is no need to time the market when you use a SIP for your investing needs. There’s also a methodical approach to investing. Furthermore, you will benefit from two effective investment strategies: compounding and rupee cost averaging.Your mutual fund investments are managed by a competent fund manager with the assistance of a research team. The asset allocation investment plan is developed by the fund manager. Investing in fixed deposits can only give you extra income. If you want to build wealth, however, SIP mutual funds are a good option. And at the interval you want to spend, this balance is automatically deducted from your bank account. Individuals can diversify their portfolios by investing in a variety of stocks as well as other assets such as debt, gold, and other precious metals.

Tax Benefits on Mutual Funds

Tax Benefits on Mutual Funds

Tax deductions are available for various financial instruments under Section 80C of the Income Tax Act, up to a limit of Rs 1.5 lakh per financial year, and tax-saving mutual funds are one of them. Due to its higher returns and the shortest lock-in period of three years among all Section 80C options, the Equity Linked Savings Scheme (ELSS) has become a common tax-saving choice for Indians in recent years.

5 Best SIP plans to invest in 2021 for Beginners

5 Best SIP plans to invest in 2021 for Beginners

5 Best SIP plans to invest in 2021

Fund Name NAV Minimum SIP 1 Year Return 3 Year Returns Expense ratio
Quant Active Fund Rs 361.36 Rs 1000 118.7% 26.94% 0.57%
Mirae Asset Tax Saver Fund Rs 29 Rs 500 88.32% 20.69% 0.30%
PGIM India Midcap Opp RS 37.29 Rs 1000 116.93% 22.75% 0.45%
Mirae Asset Emerging Bluechip Fund Rs 90 Rs 1000 86.54% 21.14% 0.73%
Parag Parikh Flexi Cap Fund Rs 43.13 Rs 1000 70.41% 21.54% 0.91%

Quant Active Fund

Quant Active Fund

The 1-year returns on Quant Active Fund Direct-Growth are 118.17 percent. It has produced an average annual return of 20.87 percent since its inception. The healthcare, financial, metals, chemicals, and technology sectors account for the majority of the fund’s holdings. In comparison to other funds in the group, it has less exposure to the healthcare and financial sectors. If an individual invest Rs 10,000 monthly SIP for 3 years, his annulaized return would be 45.62%. This is ELSS fund.

Example: For an investment of Rs 3.6 Lakhs, his returns will be Rs 6.76 Lakh, that is profit of Rs 3.16 lakh(45.62% returns)

Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund

The 1-year returns on Mirae Asset Tax Saver Fund Direct-Growth are 88.32 percent. It has returned an average of 21.79 percent every year since its inception. Every two years, the fund has doubled the capital invested in it. The Value Research Online has rated 5 Star for the fund. It is a equity linked scheme and minimum lock in period is 3 years. The NAV of the fund is Rs 29 and size of the fund is RS 7251 crore. The expense ratio on the fund is 0.30% The minimum amount of SIP is Rs 500. The one year and 3 years return on the fund is higher than the category average returns. The fund’s top 5 holdings are in HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Axis Bank Ltd., Tata Consultancy Services Ltd.

PGIM India Midcap Opp

PGIM India Midcap Opp

The 1-year direct growth returns of the PGIM India Midcap Opportunities Fund are 116.93 percent. It has produced an average annual return of 19.26% since its inception. The fund’s top 5 holdings are in ICICI Bank Ltd., Aarti Industries Ltd., MindTree Ltd., Federal Bank Ltd., Voltas Ltd.. For May 21, 2021, the NAV of PGIM India Midcap Opportunities Fund is 37.29. The EtMoney Rank of PGIM India Midcap Opportunities Fund is #1 out of 19 funds, with a consistency rating of 5.

As a result, the PGIM India Midcap Opportunities Fund could be a good fit for your portfolio. The Value Research Online has given 5 star rating for fund. This suggests that the fund has not only generated strong returns in the past, but has also done so consistently.

Mirae Asset Emerging Bluechip Fund

Mirae Asset Emerging Bluechip Fund

Mirae Asset Emerging Bluechip Fund

Emerging Asset Mirae Asset Mirae Asset Mirae Asset Mirae Asset had assets under management (AUM) of 69772 Crores, making it a medium-sized fund in its group. The fund has a 0.64 percent cost ratio, which is lower than most other Large & MidCap funds. The 1-year returns on Mirae Asset Emerging Bluechip Fund Direct-Growth are 86.54 percent. It has returned an average of 24.74 percent per year since its inception. Every two years, the fund has doubled the capital invested in it. The fund has the majority of its money invested in Financial, Healthcare, Technology, Automobile, Energy sectors.

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund

It has returned an average of 20.08 percent every year since its inception. Every two years, the fund has doubled the capital invested in it. The returns on the Parag Parikh Flexi Cap Fund Direct-Growth Fund over the last year have been 70.41 percent.The NAV of Parag Parikh Flexi Cap Fund for May 21, 2021 is 43.13. The fund’s top 5 holdings are in Alphabet Inc Class C, ITC Ltd., Microsoft Corportion (US), Bajaj Holdings & Investment Ltd., Facebook Co.

Conclusion

Conclusion

“Mutual Fund investments are subject to market risks,” we have all read and heard. The schemes must be selected based on your desired risk percentage. If you don’t want to take any risks, you can invest in debt or equity savings funds, all of which have no equity exposure and low risk. You can invest in neutral or balanced advantage funds if you believe you have moderate risk tolerance. You could invest in pure equity funds if you are a high-risk taker with a capacity to invest for at least five years.

Diversification is, in fact, one of the most significant advantages of investing in a mutual fund. It ensures that a drop in the price of one or even a few securities does not have a significant impact on portfolio efficiency.

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SIPs In These CRISIL Rated Small Cap Funds Can Yield Good Returns If You Have A Longer Term

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Top Best Small Cap Mutual Funds And Their Past Returns In Charts:

Note we have taken SIP investment into perspective and returns mentioned are annualized returns:

Small cap fund AUM NAV as on May 21, 2021 1-year 3-year 5-year gains in %
Union Small Cap Fund-Regular Plan-G 445 cr 23.19 91% 34% 20%
Aditya Birla Sun Life Small Cap fund D-Growth 2589 cr 50.66 103% 28% 15%
Axis Small Cap Fund Direct Plan-G
4854 cr 53.52 88% 36% 25%
Kotak Small Cap Fund- G 3712 cr 144 120% 42% 25%
Nippon India Small Cap Fund-Growth 13085 cr 65.99 110% 36% 23%

1. Union Small Cap Fund-Regular Plan-G:

1. Union Small Cap Fund-Regular Plan-G:

It is a CRISIL4-star rated fund . Expense ratio is of 2.57 percent and some of the fund’s top holdings are in stocks Happiest Minds, Navin Fluroine, CSB Bank, Rossai Biotech, Greaves Cotton etc. Lump sum investment has to be for Rs. 5000 while the SIP in the fund can be started for as less as Rs. 2000.

2. Aditya Birla Sun Life Small Cap fund Direct –Growth:

2. Aditya Birla Sun Life Small Cap fund Direct –Growth:

It is a 2 star CRISIL rated fund. Expense ratio of the fund is 1.11% and the scheme in a 1-year period has underperformed its index with gains of 121% considering one time investment. Top holdings of the fund include Deepak Nitrite, Cyient, JK Cement, Just Dial, Radico Khaitan etc. Minimum one time investment as well as SIP investment in the fund is fixed at Rs. 1000.

3. Axis Small Cap Fund:

3. Axis Small Cap Fund:

It is a CRISIL 4 star rated fund indicating good performance over peers. Expense ratio is at 0.41%. Minimum SIP investment can be made at Rs. 500 while for lump sum the investment has to be of Rs. 5000. Top holdings of the fund Galaxy Surfactants, Tata Elxsi, Fine Organic, Brigade Enterprises, JK Lakshmi Cement etc.

4. Kotak Small Cap Fund- G:

4. Kotak Small Cap Fund- G:

It is a CRISIL 5-star rated fund with expense ratio of 0.57 percent. The SIP contribution in the fund can be started with Rs. 1000 and for one time Rs. 5000 investment is needed. The fund’s holding include Century Plyboards, Carborundum, Sheela Foam, Supreme Industries, Persistent Systems among other.

5. Nippon India Small Cap Fund-Growth:

5. Nippon India Small Cap Fund-Growth:

This is again a 3-star rated CRISIL fund. SIP in the fund can be started for just Rs. 100 and for one time one needs to invest Rs. 5000. The fund’s allocations are in Deepak Nitrite, Tube Investments, Bajaj Electricals, Navin Fluorine, Balrampur Chini Mills.

Points to note when considering investment in small cap mutual funds:

Points to note when considering investment in small cap mutual funds:

1. Longer tenure of 7-10 years.:

As the small cap mutual fund category exposes one to high volatility and risk, one can delve in the only if they wish to possibly earn a higher return and have a longer tenure of 7-10 years. This is also because if they happen to incur losses they may be in a position to recover losses to some extent if not fully.

2. Include this mutual fund category only to may be supplement your returns:

Here the need be that you take a calculated risk to add up to your investment portfolio by adding small cap mutual funds as these do not earn stable returns.

3. Diligently identify small companies, fund managers:

Select the small companies who have strong fundaments and go with fund manager and AMC that have emerged winners in delivering good return in their space.

4. Do not invest in them only in the lure of small cap funds delivering big:

As in the current scenario, while average return on these schemes is over 100 percent, just don’t get into them as current or past performance should just not be the sole measure for picking a stock or mutual fund for that matter. There is a cycle for every category to outperform and currently it is the small cap that have been rallying.

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Smart tips for buying a home insurance policy

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Many citizens are impacted by some or the other natural disaster every year. The destruction caused by the recent cyclone Tauktae serves as a grim reminder. A home insurance policy comes in handy to financially shield you from such losses. Home insurance, in addition to providing coverage against fire, also covers your home for natural calamities such as floods, cyclones, hurricanes, earthquakes, hailstorms, lighting, and mudslides, and rockslides. Here is a guide to understand the nuances of this financial safety tool.

Valuation of property

Home insurance provides the policyholder, the flexibility to choose your preferred type of home insurance, based on how you want the property to be valued. The valuation can be based on what is called ‘Agreed’ value , ‘Reinstatement’ value or on an‘Indemnity’ basis. The claim amount is determined based on the valuation of the property.

For ‘Agreed value basis’, the loss is settled by the insurer on the value of the property or content agreed to by the insured at the time of purchasing the policy. In ‘Reinstatement basis’, the insurer will settle the loss by replacing the damaged property or item with a new one and under the ‘Indemnity basis’, the insured will be compensated as per market value of the house/ item damaged after deduction for wear and tear.

Valuing contents

A comprehensive home insurance can offer protection against damage to your assets, both fixed and portable, due to any accident, theft or disaster. Contents within the house such as electronic items, home appliances, portable equipment including cell phone, laptop, television and jewellery can be quite expensive too.

A comprehensive home insurance policy with global coverage, offers 24*7 protection for your assets whether they’re kept at home, locker or carried on person across the globe at minimal premiums.

You can customise your policy with add-on covers such as loss of rent, temporary resettlement cover, public liability cover, dog insurance cover, ATM withdrawal cover, lost wallet cover, and key and lock replacement cover which can provide wider protection during disasters. Home insurance is not just limited to those who have home ownership. It can also be purchased by tenants living in rented properties for their contents.. Huge EMIs are paid every month for homes without realising that the premium towards securing a house could be as low as ₹5 per day.

The author is MD & CEO, Bajaj Allianz General Insurance

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Why rising inflation impacts growth stocks

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Two school friends and veteran investors bumped into each other after decades in a coffee shop. As they sipped their cup, their ears perked up to a song ‘this is ourselves under pressure. Under Pressure.’

Veena: My portfolio has been under pressure recently. I was heavily invested in Nasdaq 100 funds, early stage technology and growth stocks and I thought they will continue to do well.

Ram: Some of them may do well in the long run, but in the short to medium term they will continue to remain under pressure if recently emerging concerns on inflation in the US persist.

Veena: Why should inflation or interest rates impact technology stocks.

Ram: Stock markets look to future earnings and discount it to net present value (NPV). When treasury yields move up on inflation concerns, your discounting rate increases and your NPV of earnings reduce.

Veena: Yes, but I still don’t understand why growth stocks should fall more than other stocks?

Ram: That is because the earnings of growth stocks are more back-end loaded. For example if you take a five-year period, most of the growth stock’s earnings may come only in the 4th and 5th year.Well-established companies which are likely to report consistent earnings..

Since the earnings are five years away, you need to discount it five times. When interest rates are low, it hence works in favour of growth stocks.

Veena: So, you mean when interest rates rise, the discounting rate increases and it impacts NPV of later year earnings?

Ram: Yes. Check this on excel. Assume discounting rate of 6 per cent and there are 2 companies A and B (growth) with same total earnings of ₹100 in 5 years, but A gives earnings of ₹20 for each of the 5 years, and B gives the earning of ₹100 only in the 5th year. NPV of A’s earnings is ₹84.25 and B’s is ₹74.73. Increase the rate to 8 per cent, A’s NPV is ₹79.85 and B’s, ₹68.06.

Veena: A’s NPV reduces by 5.2 per cent, while decline for B at 8.9 per cent due to the 2 per cent interest rate increase?

Ram: Bingo! Hence, growth stocks are under pressure.

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