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Why to invest in multi cap funds now?

We have only seen a strong rally in multi cap funds because these funds allocate their assets between large, mid-sized, and small stocks based on market conditions, and in an environment where the Indian benchmark indices Sensex and Nifty 50 are at all-time highs, these funds are the most popular among equity investors due to their asset allocation strategy.

Multi cap funds are less risky than pure large or mid-cap funds, and they might be a smart choice for individuals with a low-risk tolerance and have a personal financial objective of 5 years. Multicap funds must invest at least 75 percent of their total assets in equities, with a minimum allocation of 25 percent each in large cap, mid cap, and small size companies, according to SEBI.

This strategy demonstrates how to diversify across various market capitalizations when the market is soaring at a record high of 60,059.06 points. So here are the two highly rated multi-cap funds that you can consider to invest in the year 2021 for better diversification of your portfolio.

Quant Active Fund Direct-Growth

This Multi Cap mutual fund scheme has been in existence for the past 20 years. The fund has an expense ratio of 0.5 percent, which is lower than most other funds in the same category and it holds 96.80 percent of its assets in equity and the rest in cash. According to Value Research, Quant Active Fund Direct-Growth returns over the last year have been 85.70 percent, with an average annual return of 22.25 percent since its debut.

The fund has a major equity allocation across the Financial, FMCG, Metals, Construction, Healthcare sectors. Vedanta Ltd., State Bank of India, Reliance Industries Ltd., Fortis Healthcare (India) Ltd., and ITC Ltd. are the fund’s top five holdings. As of 30th June 2021, the fund has been rated “No 1” by CRISIL which demonstrates its excellent performance across bear and bull market phases.

As of 8th October 2021, Quant Active Fund Direct-Growth has a Net Asset Value (NAV) of Rs 429.78 and the Asset Under Management (AUM) of the fund is 1,050.80 Cr. The fund has no exit load and one can start SIP with a minimum amount of Rs 1000.

HDFC Retirement Savings Fund Equity Plan Direct-Growt

HDFC Mutual Fund established this Multi Cap mutual fund scheme in the year 2016 and it has now been in operation for 5 years. The fund’s expense ratio is 0.96 percent, which is higher than the expense ratio charged by most other Multi Cap funds. This fund’s assets are made up of 92.30 percent equity, 6.7 percent cash, and 1% debt.

According to Value Research, HDFC Retirement Savings Fund Equity Plan Direct-Growth returns over the last year have been 72.32 percent, with an average annual return of 22.93 percent since its commencement. Financial, Services, Technology, Chemicals, and Engineering are the fund’s top equity allocations.

The fund has been rated a 4-star ranking by Value Research which is a pretty good indicator of the fund’s past performance. HDFC Retirement Savings Fund Equity Plan Direct-Growth has a Net Asset Value (NAV) of Rs 31.92 and an Asset Under Management (AUM) of 1,921.51 Cr as of October 8, 2021. With a minimum monthly investment of Rs 500, one can begin a SIP in this fund.

2 Best Multi Cap Funds In 2021

Based on the higher ratings only here we have selected two multi-cap funds for you which you can consider investing in in 2021.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice 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

Buy Ashoka Buildcon, says the India Strategy report of Motilal Oswal

“Awarding activity has started showing signs of an uptick as the National Highways Authority of India (NHAI) awarded 4,800km of road projects in FY21. While this was still below the previous peak of 7,397km in FY18, the awarding trajectory has rebounded from the lows of FY19. We expect the uptrend to continue over the next two years,” the brokerage has said.

Motilal Oswal expects EBITDA at Rs 1.2 billion, with EBITDA margin at 11.8%, flat sequentially.

“Watch out for commentary on execution momentum in construction activity and asset monetization. Ordering was better than expected in the Roads sector towards FY21-end, with a strong bid pipeline in place. However, funding constraints continue to impact the sector’s fundamentals, especially interest rates on HAM projects,” the brokerage has said.

Buy KNR Constructions

The brokerage has also recommended buying the stock of KNR Constructions for returns of nearly 15% from current levels, with a price target of Rs 330 on the stock.

“We expect KNR Constructions operating profit to grow by 4% YoY, in spite of higher revenue growth, due to an adverse revenue mix (lower revenue from Irrigation projects).

Net profit for our coverage universe is likely to increase by 13% YoY. The 17% YoY increase in KNR Constructions is largely attributed to lower depreciation and interest cost,” the Motilal Oswal has said.

“KNR Constructions and Ashoka Buildcon are our top stocks to buy in the sector. We like KNR Constructions owing to its net cash Balance Sheet on account of its: a) already monetized HAM projects, b) superior focus on working capital management over growth, and c) superior execution capabilities. Ashoka Buildcon’s a) improved working capital management, b) minimal net D/E, and c) ability to execute projects in a timely manner are key positives,” the brokerage has said.

Interest rates negative for players

According to Motilal Oswal, unlike the general perception, declining interest rates have turned out to be a negative for Road players. This is because they carry a negative spread on the debt of HAM projects. Notably, NHAI pays at the bank rate plus 3%, currently 7.25% on capital. However, the cost of debt is currently higher. This, along with the risk of an increase in the cost of equity (due to the COVID-led lockdown), has wiped out the valuations of HAM projects. On a positive note, returns would now be linked to the MCLR rate rather than the bank rate, thereby addressing the negative spread concern. However, this is applicable only for future projects,” the brokerage has said.

Disclaimer

The above stocks are picked from the brokerage report of Motilal Oswal Financial Services. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

Titan – Tanishq

The stock returned 191.97 percent over three years, compared to 70.37 percent for the Nifty 100. Titan Business Ltd., founded in 1984, is a Large Cap company in the Gems & Jewellery industry with a market capitalization of Rs 209,357.73 crore. Since July 30, 2001, Titan Company Ltd. has declared 21 dividends. Titan Company Ltd. has declared an equity dividend of Rs 4.00 per share in the last 12 months. This translates to a dividend yield of 0.17 percent at the current share price of Rs 2358.20.

Tanishq is a brand of Titan Company, which is part of the well-known TATA Group, and is one of India’s top jewellery companies. Tanishq was created in 1994 as a subsidiary of the Titan Corporation. Bangalore, Karnataka, is the company’s headquarters.

Kalyan Jewellers

On October 7, Kalyan Jewellers’ stock rose almost 11% intraday after the business announced a 60% increase in revenue for its India operations in the third quarter of the year, compared to the same period the previous year. During the quarter, the firm established one new showroom, bringing the total number of stores opened in the first half of the current fiscal year to ten.

Candere, the company’s online jewellery platform, saw a 45 percent increase in revenue during the quarter compared to the same time last year.

Kalyan Jewelers was established in 1993. Its headquarters are in the Kerala town of Thrissur. T. S. Kalyanaraman established it. The prestigious Kalyan Group owns the company. It is one of India’s major jewellery retail chains.

PC Jewellers

PC Jeweller Ltd., founded in 2005, is a Gems & Jewellery Small Cap company with a market capitalization of Rs 1,319.42 Crore.

In comparison to the Nifty Smallcap 100, which returned 86.64 percent over three years, the stock returned -55.4 percent. It has received numerous honours, including the B2C consultants’ and brand architects’ Best Showroom Award for Diamond Season in 2006. With 56 stores in 47 cities and 17 states, the firm dominates the jewellery market.

Asian Star Company

The Asian Star Company is a fully integrated diamond manufacturer. The company also specializes in diamond cutting and polishing, as well as studded jewellery. Customers can receive jewellery design assistance at the company’s store in order to meet their individual needs for special events. Stock returned 22.82 percent over three years, compared to 86.64 percent for the Nifty Smallcap 100. Asian Star Business Ltd., founded in 1995, is a Small Cap company in the Gems & Jewellery industry with a market capitalization of Rs 1,402.60 crore.

Rajesh Exports

Only 4.38 percent of trading sessions in the last 16 years had intraday gains of more than 5%. The company has enough cash on hand to cover its contingent liabilities. The stock returned -10.65% over the last three years, compared to 88.52 percent for the Nifty Midcap 100. Rajesh Exports Ltd., founded in 1995, is a Large Cap business in the Gems & Jewellery industry with a market capitalization of Rs 18,217.54 crore.

Rajesh Exports Ltd was established in 1995, with its headquarters in Bangalore, India. It is one of India’s top ten jewellery companies, refining, designing, and selling gold and jewellery. The business makes and sells jewellery to people all around the world.

Tribhovandas Bhimji Zaveri

After three straight quarters of profitability, the company reported a loss of Rs 9.79 crore in the quarter ending June 30, 2021. Stock returned 77.65 percent over three years, compared to 86.64 percent for the Nifty Smallcap 100. The decrease in sales was 25.34 percent. For the first time in three years, the company’s revenue has decreased.

The company is regarded as one of India’s finest jewellery manufacturers. In addition to Mumbai, Delhi, Hyderabad, Kolkata, and Rajkot, the company operates shops in 23 cities across 11 states.

Vaibhav Global

Vaibhav Global Ltd., founded in 1989, is a Mid Cap business in the Gems & Jewellery industry with a market capitalization of Rs 12,156.71 crore. The stock returned 485.43 percent over three years, compared to 88.52 percent for the Nifty Midcap 100. Annual sales growth of 27.82 percent surpassed the company’s three-year CAGR of 17.2 percent. Only 7.64 percent of trading sessions in the last 16 years had intraday gains of more than 5%.

Top 7 Popular Gold Company Stocks In India

Disclaimer

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.

When it comes to a deposit safety of up to Rs 5 lakhs guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), as well as fixed rate of return, investing in bank fixed deposit plans is the best option for debt investors. Before applying for a fixed deposit, it is always recommended to hunt for the best or highest interest rates based on your deposit period. No doubt that you can invest in fixed deposits for short term as well as long term, but within the varying maturity period ranging from 7 days to 10 years, if you have a personal financial goal of 3 years or less than 3 years, then here the top 5 banks in India that are now providing an interest rate up to 7.25% on deposits amount of less than Rs 2 Cr maturing in less than 3 years or up to 3 years.

Note: The applicable interest rates on 3 years fixed deposits are marked in bold.

North East Small Finance Bank

North East Small Finance Bank promises the highest return of 6.75 percent to the general public and 7.25 percent to senior persons for deposits of less than Rs 2 Cr maturing in 3 years or less than 3 years.

Period	Regular FD Interest Rate In % (p.a.)	Senior Citizen FD Interest Rate In % (p.a.)
7-14 Days	3	3.5
15-29 Days	3	3.5
30-45 Days	3	3.5
46-90 Days	3.5	4
91-180 Days	4	4.5
181-365 Days	5	5.5
366 days to 729 days	6.75	7.25
730 days to less than 1095	6.75	7.25
Source: Bank Website, Effective Date: 19th April 2021

Jana Small Finance Bank

For deposits maturing in 3 years or less than 3 years, Jana Small Finance Bank is promising a return of up to 6.50% to the general public and 7.00% returns to senior citizens. The interest rate on the fixed deposit of the bank was last revised on 07.05.2021 which is as follows:

Period	Regular FD Interest Rate (p.a.)	Senior Citizen FD Interest Rate (p.a.)
7-14 days	2.50%	3.00%
15-60 days	3.00%	3.50%
61-90 days	3.75%	4.25%
91-180 days	4.50%	5.00%
181-364 days	5.50%	6.00%
1 Year[365 Days]	6.25%	6.75%
> 1 Year – 2 Years	6.50%	7.00%
>2 Years-3 Years	6.50%	7.00%
Source: Bank Website, Effective Date: 07/05/2021

Ujjivan Small Finance Bank FD Rates

For a deposit amount of less than Rs 2 Cr, maturing in less than 3 years, Ujjivan Small Finance Bank is the second bank on our list promising the highest interest rates on 3-year fds.

Tenure	Regular FD Interest Rate (p.a.)	Senior Citizen FD Interest Rate (p.a.)
7 Days to 29 Days	2.90%	3.40%
30 Days to 89 Days	3.50%	4.00%
90 Days to 179 Days	4.25%	4.75%
180 Days to 364 Days	4.75%	5.25%
1 Year to 2 Years	6.00%	6.50%
2 Years and 1 Day to 3 years	6.50%	7.00%
Source: Bank Website, with effect from 16th August, 2021

Fincare Small Finance Bank

Fincare Small Finance Bank is promising the following interest rates on deposits maturing in 3 years.

Tenure	Regular FD Interest Rate (p.a.)	Senior Citizen FD Interest Rate (p.a.)
7 days to 45 days	3%	3.50%
46 days to 90 days	3.25%	3.75%
91 days to 180 days	3.50%	4%
181 days to 364 days	5%	5.50%
12 months to 15 months	5.60%	6.10%
15 months 1 day to 18 months	5.60%	6.10%
18 months 1 day to 21 months	6%	6.50%
21 months 1 day to 24 months	6%	6.50%
24 months 1 day to 30 months	6.25%	6.75%
30 months 1 day to 36 months	6.25%	6.75%
Source: Bank Website, With effect from 29th July 2021

RBL Bank

RBL Bank is currently offering the following interest rates to both regular and senior citizens on deposits of less than Rs 3 Cr maturing in less than 3 years.

Tenure	Regular FD Interest Rate (p.a.)	Senior Citizen FD Interest Rate (p.a.)
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	5.25%	5.75%
12 months to less than 24 months	6.00%	6.50%
24 months to less than 36 months	6.00%	6.50%
Source: Bank Website, w.e.f. September 01, 2021