ET Wealth Apr 6 - 12 2020

THE ECONOMIC TIMES HOW TO START
INVESTING IN
MUTUAL FUNDS
P12
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | April 6-12, 2020 | 24 pages | `8
Coping
with
Covid
The stock market crash has
hurt all investors. Find out
what they plan to do now. P2
Rejig your SIP Tips to grow What should be Get devices

strategy to make as you work your debt fund ready for life
most of the slump from home strategy now? after lockdown
P6 P9 P10 P22
WE HELP YOU CHOOSE THE BEST .7m
WORKSH, 1 0 O 1
0
o
cover story
02 The Economic Times Wealth April 6-12, 2020
Coping
with
Covid
As the pandemic spreads,
greed is giving way to fear
among investors.
ILLUSTRATIONS: ANIRBAN BORA
By Narendra Nathan However, it is heartening to note that bigger losses, possibly due to over ex- be addressed by monetary policies like
a large number of investors have not lost posure to equities, wrong investment rate cuts, quantitative easing or a fiscal
I
f benchmark indices fall more than heart. They may have lost a big chunk of choices or faulty advice. We looked at stimulus. The real issue is the worldwide
20% from their peak, it is defined as their investments in 2020, but they are not respondents who managed their invest- lockdown. “The economic pains triggered
a bear market. With the Sensex and planning to go away. More than 50% of the ments themselves and found there was by Covid-19 and lockdowns are expected
Nifty down by more than 30%, we respondents plan to buy slowly as markets only a marginal difference in their situ- to last longer than the previous financial
are deep in bear territory now. At recede. Only 3% want to exit completely ation (51% of respondents in substantial market crisis,” says Sampath Reddy, CIO,
the same time, experts say that bear mar- while 7.5% are waiting for markets to losses) and that of people who took free Bajaj Allianz Life Insurance. This means
kets are the best time to invest in stocks. recover so that they can get out. Another (49%) or paid investment advice (48%). the market could go down further in the
Buy when there is blood on the streets, 3.5% is reducing exposure to equities The narrow gap between the advised and coming months. “First leg of the fall has
they say. However, very few Indians have because they expect things to worsen. non-advised groups shows that the qual- already happened. The next leg may hap-
the courage to do that right now. An on- Of course, there are also a serendipitous ity of investment advice needs to improve. pen over the next 3-6 months,” says Dinesh
line survey by ET Wealth reveals that only 18.5% who are not making any changes to While the spread of Covid-19 is the Rohira, Founder & CEO, 5nance.com.
one out of six investors is planning to buy their portfolios. main worry right now, investors are more Some even fear that there will be bigger
aggressively at this stage. The survey was worried about the economic impact of global repercussions. “The US adminis-
conducted last week and received 3,306 re- Nobody escaped the carnage the lockdown (see graphic). Experts say tration has failed to handle the Covid-19
sponses from investors across age groups No stock investor has escaped the carnage these fears are not unfounded, because it situation correctly. So, it may try to shift
and geographies. in 2020, though some may have incurred is not a financial market problem that can the blame to China by starting a new trade
cover story
The Economic Times Wealth April 6-12, 2020 03
All investors have lost money in 2020

The sudden decline took everyone by surprise. But some investors lost more than others.
30-45% loss
36%
45-60% loss
12%
“This is the time to How much Over 60% loss

have equity 4%
increase equity allocation, investors
not redeem equity funds. LOST IN
Investments in times like 2020
these make more money.” Less than
15% loss
G. PR ADEEP KUMAR
CEO, UNION MUTUAL FUND 14%
war,” says a survey respondent Alok Ranisati.
As things stand, corporate earnings will 15-30% loss
be badly hit in the coming quarters. “It will
take a few quarters for businesses to bounce 33%
back. By and large, the prices have factored Figures in bold denote the % of respondents
in about a disturbance of one year,” says
Vikaas Sachdeva, CEO, Emkay Investment
Managers.
Exiting in panic The crash has wiped out gains made in past 4-5 years
In the current phase, foreign investors are Only a minuscule number of respondents are still holding substantial profits from equities.
exiting the market. FIIs have withdrawn
`65,816 crore from stocks in March. At the Overall returns from equity portfolio are...
same time, domestic institutions have poured
… in substantial loss
in `55,595 crore. But if the markets continue
to fall, even domestic investors may start 50% … in marginal
… pared after
Covid-19
exiting. Our survey shows that investors are loss
worried, but not so much that they will start crash
packing up. However, some of them, espe- 25% … no profit 12%
… still in
substantial
cially new investors, are already panicking. no loss profits
Meet Ahmedabad-based Mihir Chaudhari,
a 28-year old who started investing in stocks
7% 5%
just three years ago and now wants to salvage
whatever he can and get out. “Though my in-
vestments are in substantial losses, I want to
exit because I am more worried about the re-
cession triggered by lockdowns. The market
may go down further from here,” he says.
For such first-time investors, the current Figures denote the % of respondents
mayhem is a double whammy. They have not
only lost money, but might even lose faith in
the market. Rookie investors seldom fathom
the risks associated with equity markets and
Whether self-managed or advised, all portfolios fell
losing 30-35% of their principal can be a deal There was a narrow gap in the percentage of advised and DIY investors who suffered substantial losses.
breaker, especially if it comes so suddenly.
Even if their portfolios eventually come back
into the black, many of these individuals may
Get free advice from
turn away from equities forever. brokers, agent or bank
Even older investors like Maheshwar Singh
also want to exit, but not at a loss. He is wait- Manage their 49%
ing for the markets to recover before he exits. investments
“My mutual funds were down by `1 lakh last themselves
week. Now it must be even more. So, I will stop
further SIPs and hold my investments. Once
51% Take advice
from a paid
the market recovers and the value comes back consultant
to my principal, I will redeem,” he says.
However, experts say that bear markets are
48%
not the right time to exit. “Since valuations
have become attractive, this is the time to
increase equity allocation, not stop SIPs or Investors
redeem from equity funds,” says G. Pradeep who suffered
Kumar, CEO, Union Mutual Fund. substantial loss
Waiting for recovery Figures denote the % of respondents who have suffered substantial losses in equities
Our survey shows that most investors are in
cover story
the wait and watch mode. They are expect-

ing the markets to fall further and will get Economic slowdown is the big worry now
in when it is down. Some of them have a The disease is scaring investors, but the impending slowdown is more worrisome.
clear plan. “I am in the market since 2005.
I made money till 2008 and lost it in 2009
and that is why I am careful now. Instead of
trying to catch a falling knife, I will invest Spread of
only after the base formation and up move Covid-19
is confirmed,” says Ranisati.
Some investors were lucky enough to
77%
exit in time. “I exited from stocks when
the Nifty fell to around 11,000,” says
Anuj Gupta. He expects the Nifty to fall
further and will start investing when Exit of
it is around 6,000. Why 6,000? The Nifty domestic
peaked at 12,430 in 2020 and 6,215 is the investors
50% retracement of that peak. In previous
bear markets (1992, 2000 and 2009) too, the Economic 17%
benchmark indices had retraced 50% and slowdown due
therefore most respondents expect history to lockdown
Exit of foreign
to repeat itself in 2020. 80% investors
Start nibbling at value 36%
While some investors are driven by fear,
Figures d
denote the % of respondents. Percentages will not add up to 100 due to multiple responses.
others are moved by greed. Almost 53% of
respondents want to start buying slowly
(see chart). One of them is Mani Kanta, who
thinks that this is an opportunity to buy eq-
What investors plan to do now
uities at low prices. “Apart from increasing A large percentage of investors wants to start buying equities.
the amount of my long-term SIPs, I am also
Reduce equity Waiting for markets to
investing lumpsum whenever possible,”
as markets rise so that I can exit
he says.
may fall more
This is what experts also recommend 7% Will buy
(see story page 6). “This is the time to start 4% aggressively
allocating fresh money to equity or shift
money from debt to equity because in-
Not making any 15%
change now
vestments in times like these make more
money,” says Kumar. But do this gradually 18%
– ideally by a weekly STP over the next 8-12
weeks. “If you have 3-year plus horizon, Exit completely
Equity Will buy
Investors’ slowly
this is the best time to invest in a staggered even if at a loss
manner. Invest your 25% now and invest
3% strategy now 53%
How advisers influence Exit completely now (even

if it means big losses)
Not making any
change now
Reduce equity holdings
(expect markets to fall more)
investment decisions Waiting for markets to Will buy Will buy
A larger chunk of DIY investors want rise so that I can exit aggressively slowly
to buy aggressively compared to
those who get investment advice from
brokers or paid consultants. 3% 16% 3% 7% 15% 55%
INVEST
ON OWN
4% 27% 5% 10% 13% 42%
GET FREE
ADVICE
5% 28% 5% 7% 12% 42%
PAY FOR
ADVICE
Figures denote the % of respondents
Young people are staying away from equities

“This is the time to get This is a worrying sign, because it is younger investors who can take higher risk.
overweight on equities, No 6% 6% 7% 6%
provided you don’t 20%
need the money for the Below
30 years
30 to 40
years
40 to 50
years
50 to 60
years
Above
60 years
next five years.” Yes
VIK A AS SACHDEVA 80% 94% 94% 93% 94%

CEO, EMK AY INVES TMENT MANAGER S Figures denote the % of respondents in various age groups who don’t invest in equities
cover story
Interested, but don’t

have expertise
Why young 70%
people stay Don’t want to
away from Reasons risk my money
for not 14%
stocks investing
14% young investors in equites Think stock market
comfortable with safe is a scam
returns highlights need 4%
for investor education.
Other “Invest in a staggered
reasons*
manner. Invest your 25%
12% now and invest 25%
Figures denote the % of respondents below 30 years *like no investible surplus, low income
more at every 500 points
fall in the Nifty.”
No
DINESH ROHIR A
Crash attracting 30% FOUNDER & CEO, 5NANCE.COM
those who never Will you

consider 25% each at every 500 points fall in Nifty,”
invested before investing

says Rohira.
Some investors have started doing this
If they invest in bear markets in stocks already. “I am buying quality stocks grad-
like this and hold, they could now? ually at lower levels. No one knows where
get good returns in long term. Yes the bottom will be or how many months
70% this will continue. So, I have started buy-
Figures denote the % of respondents who have never invested in stocks. Only 10% of respondents like that. ing on a weekly basis,” says Dnyaneshwar
Nandgirikar.
Time to be aggressive
Older investors have suffered less Then there are those who want to buy ag-
Older people tend to be more circumspect and cautious than the younger lot. gressively now, though they constitute
only 15% of the respondents. Fuelling
this optimism is the advice coming from
40-50 years the permabulls of the financial services
30-40
years 48% industry. “Investors can go overweight in
equities now because the market will be
56% 50-60 years at a much higher level once we come out of
43% Covid-19. Therefore, this is a great time to
invest,” says Reddy. Others agree, but put
in the necessary caveats. “This is the time
Below 30 to get overweight on equities, provided
years that money is not needed for the next five
Above 60
53% years
years. Also, do not go overboard,” says
Sachdeva.
Investors 39% Some investors are also changing their
in substantial strategy between stocks and equity funds.
loss Veera Swamy plans to discontinue his
Figures denote % of respondents from each age group who made substantial losses in the current carnage. mutual fund SIPs and start buying direct
stocks. “It makes sense to be in direct
stocks now because several stocks are
available at throwaway prices. I will re-
Experience in market also makes a difference start SIPs once this crisis is over,” he says.
However, experts warn investors who
Investors who have been in the market for a very long time understand the risks better. want to invest in stocks directly. “Focus
on quality stocks because they will be the
58% first ones to bounce back,” says Rohira.
51% Second, it’s not a good idea to average
47% down on all stocks. “The structure of busi-
40% nesses is going to change, so this is not a
right time to average down on all stocks,”
28% says Sachdeva. Third, they must be more
careful in using historical valuation
models. Several stocks look as if they are
cheaply valued based on historical EPS.
But this may change once the earnings
fall.
—With inputs from Sameer Bhardwaj
Investing 15-20 10-15 5-10 Less than
for over 20 years years years 5 years
years
Please send your feedback to
Figures denote % of respondents from each experience group who [email protected]
made substantial losses in the current carnage.
cover story
Rejig your SIP strategy now

Experts advise increasing SIP amount or deploying lumpsum in staggered manner to make most of slump.
At monthly intervals, your ongoing
By Sanket Dhanorkar SIP is not nimble enough to benefit
from the market lows. Vidya Bala,
Betting on growth
Topping up SIPs during market lows
T
he poor performance of Founding Partner & Head, Research
your SIPs in the current and Product, Primeinvestor.in, says, yield big rewards later.
market slump can be “Unless your SIP frequency is week-
disheartening. But we all ly or you have multiple SIPs spread
know how it works. By out over a month, it will be hard to Monthly SIP* of `5,000 started in Jan 2007
investing a fixed sum every month, capture the market decline through
you buy units in funds irrespective SIP mode alone.” This approach will
of how the market moves. At higher work only if the current slump lasts
market prices, your outgo fetches a long time. Investor A Investor B
lesser units while at lower prices, How then can you approach your Continues
Doubles the SIP amount
the same amount fetches more units. SIP? To truly benefit from the cur- investing the same
when markets crash in
The intermittent downswings are rent phase, you should quickly amount for next
2008.
thus crucial for the SIP to deliver deploy lumpsums into chosen eq- four years
healthy returns. As you accumulate uity funds in a staggered manner.
more units in weak market phases, Instead of being tied to specific SIP
its benefits become apparent when dates and a predefined amount, you
markets start to move up again. invest separately, over and above the
Investors who persist with ongo- ongoing SIP commitments. Experts
ing commitments benefit in the long believe that given the ferocity of the SIP raised to
run. However, merely continuing cuts, merely hiking the SIP amount `10,000 from July
2008 to June 2009.
`3 lakh
may not be enough. To truly benefit will not let you capture the downside
from a severe crash, you should con- effectively. If the market rebounds
sider ramping up your SIP invest- quickly, you will have missed lock-
ments. You have two choices here: ing into the lower prices by the time
Either you simply top up existing
SIPs or put in lumpsums in a stag-
your SIP instalments hit.
Bala argues strongly in favour of
`2.4
gered manner. taking control of SIPs for the next lakh
If you top up your SIP, you would few months. “An element of market Total
be deploying a larger amount into
the fund on predefined dates. If the
timing is required now to boost your
fund returns,” she adds.
investment
`4.63
downturn persists, the higher SIP
outgo will fetch a higher number
Experts recommend deploying
a lumpsum amount through 4-6
lakh
of units at prevailing low prices. tranches. Ankur Maheshwari,
Eventually, when the market re-
bounds, those few instalments de-
CEO, Wealth Management, Equirus
Capital, suggests investors divide `3.44
ployed with higher sums will make a
material difference to your return.
the investible surplus into 4-6
tranches and deploy at every sharp
lakh
Let us assume an investor had dip in the market. “The equity Corpus after
four years
initiated a monthly SIP of `5,000 market is already in a zone that
in Aditya Birla Sun Life Equity at
the start of 2007 (see graphic). If he
persisted with the pre-defined outgo
has yielded high return in the past.
While nobody can predict exactly
when the market will bottom out, it
22.2%
through the subsequent 60% market tends to bounce back much before
crash and the eventual rebound by
December 2010, the SIP would have
the economy recovers,” he adds. In
the absence of adequate investible 18.2%
fetched `3.44 lakh at a healthy annu- surplus, investors may consider tak-
alised return of 18.2%. Now assume ing some money out of debt funds or SIP returns
the investor doubled the SIP outgo other liquid fixed income avenues.
to `10,000 during the 12 month pe- Adding money beyond existing
riod—July 2008 to June 2009—when SIPs will help investors make up lost
the frontline BSE Sensex had dipped ground in terms of corpus accumu-
more than 30%. If the investor stuck lated towards goals. In particular,
around till December 2010, the SIP investors who started SIPs only 3-5
would have fetched 22.2% returns— years ago would take much longer
an additional corpus of `1.2 lakh. to make up accumulated loss if they
While it looks great, this ap- stick with the current outgo. They
proach worked at the time because should use this window to hike outgo
the steep market decline occurred to make the most of low NAVs. This
over several months. It took a little should eventually translate into
under six months for the Sensex healthy returns from investments,
to lose the initial 30% of its value and put you firmly on the path to-
in 2008. It shed another 30% over wards meeting financial targets.
the next eight months. The current
market slump is not playing out in
a similar manner. The index value
has eroded 30% in just under two [email protected] *SIP in Aditya Birla Sun Life Equity Fund on first business day of every month.
months over February and March.
guest column
Special measures needed to

save small savings schemes
Monetary policy measures to tackle the Covid crisis will result in lower income for
many retirees. These people need a special deal, says Dhirendra Kumar.
T
he interest rates on small
sovereign savings products have
been reduced sharply. This is a
result of the sharp reduction in
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH the repo rate that the Monetary
Policy Committee decided in its meeting
on 26 March. The way savings rates are
money determined now, this linkage is more or
mysteries less automatic as the rates on such savings

schemes are fixed every quarter based on
yields on government bonds. The sharp
reduction is a result of the RBI’s move to cut
interest rates by 0.75 %, taking the repo rate
Even though the to 4.4%.
monetary policy logic So, in effect, the action taken by the RBI to
of lowering these rates provide a monetary cushion to the looming
sounds fine, some Covid recession, has caused a reduction
in the interest earnings of those who have
special provision is
money in sovereign deposit schemes. Even
needed in the current
though each step of this chain of causes
situation for small and their effects is logical, the end result is
savings schemes, disastrous for those who depend on these
especially in those for schemes for post-retirement income. The
senior citizens and reduction in earning of such people is
the girl child. These enormous. What looks like a 1% drop in
the interest rate could actually be a 15%
schemes after all
reduction in the income of the saver. For
have a specific social
example, if you have a `20 lakh in your
purpose and utility. Monthly Income Account, you were getting
an annual interest of `1.52 lakh. Now, this
comes down to `1.32 lakh, a reduction of
13.2%. The worst impact is on one-year term
These interest payments

are a key income source for
a vulnerable section and the
packages that are to come
must keep this fact in mind.
deposit, where the amount you earn has
gone down by more than 20%.
GETTYIMAGES
Even though the monetary policy logic

of lowering these rates sounds fine, some
special provision is needed in the current
situation for small savings schemes,
especially in those for senior citizens and
the girl child. These schemes have a specific will earn less, face hardships but have a will happen. No doubt there will be many
social purpose and utility. The government future to work for. None of this stands true rounds of economic packages. There is
spends a lot of money on a lot of things, for retirees. They are out of the economy no doubt that every country is looking
many of them useless. A small extra outgo now. An economic recovery will not mean at massively reduced tax revenues and
of interest on such schemes should be seen more earnings for them. In fact, in one increased government expenditure. This is
as a social expenditure rather than some way or the other, it will only mean higher uncharted territory for everyone. However,
great anomaly in the monetary policy being costs for them. On the other hand, lower mechanically following set formulae for
followed. interest rates will mean lower income. determining small savings interest rates
At this point of time, we are entering a Except for the prosperous few who may have should not be done. These interest payments
period of great uncertainty. Governments— some inflation-linked means of earning are a key income source for a vulnerable
both states and Centre—will look after like house rent or a pension, this is an section and the packages that are to come
their own employees, with DAs and salaries accelerating crisis for them. must keep this fact in mind.
getting bigger as they always do. In the The process for handling the economic
private sector, many of those who are still fallout has just begun. Even the inputs
in their working life will also cope, as that will drive these measures are not in
[email protected]
the economy eventually recovers. People place yet so one can hardly predict what
financial planning
Do you benefit from the moratorium?

The repayment relief that banks are offering may seem appealing. Find out how much it will cost you.
By Babar Zaidi
Skipping EMIs can extend loan by few months
B
anks are reaching out to cus- Banks will continue to charge interest and add it to the total outstanding.
tomers to know if they want
to avail of the loan repayment Remaining OPTION I: Pay interest OPTION II: OPTION III: Extend
moratorium announced by the tenure of two months Increase the EMI the loan tenure* by
RBI. Before we go further, read-
ers should know that this is only a grace 19 years 73,534 10 months
period, not a waiver of the loan. If you do 15 years 66,442 The EMI will 6 months
not pay the next two EMIs of your loan, you increase by
will not be blacklisted. But the bank will 10 years 53,131 `674 to `45,660 3 months
charge interest for the unpaid amount.
Missing two instalments could extend 5 years 32,291 1 month
your loan by 6-10 months or increase EMI *Extended tenure does not include the two deferred EMIs
amount by 1.5%.
Though the specifics will vary across portion of the EMI in the early deferment would be significantly bigger
banks, borrowers are likely to be given years and progressively comes in case of credit cards because they charge
three options by lenders. down. Even after the first year, the a prohibitive 3-4% a month for rolling over
 Option I: The borrower can make a one- interest accounts for almost 80% of the the balance. If a cardholder doesn’t pay for
time payment in June of the interest that Non-payment will bloat EMI. But in the 19th year, the interest por- two months, the cumulative interest could
accrues in April and May.
 Option II: The interest is added to the
up your credit card bill tion is less than 10% in the EMI.
So, people with older loans taken 10-15
add up to more than 6-8%. The additional
expenses charged to the card over the
outstanding loan which will increase the
Interest is 2-4% a month on unpaid bill. years ago will not feel the burden as much next two months will also attract interest.
EMI for the remaining months. as someone with a new loan taken 2-3 years Worse, you will be charged interest on the
 Option III: The EMI is kept unchanged 1. April bill `50,000 ago. Ironically, people with older loans interest not paid in the previous month.
but the loan tenure is extended. The 2. Additional purchases `42,000 may not really need the moratorium as If you have a fat credit card bill and
number of additional EMIs will depend in April much as those with younger loans. don’t have enough liquidity, get the
on the age of the loan. Go for the deferment plan only if there amount converted into easy EMIs. Card
3. Interest @4% on 1+2 `3,680
Let us assume a borrower took a home is a dire need. Otherwise, if you have suffi- companies are willing to turn the out-
loan of `50 lakh at 9% for 20 years. The EMI 4. May bill (1+2+3) `95,680 cient resources and can pay the EMI, don’t standing amount into easy EMIs of 6-24
comes to `44,986. If he wants to skip the 5. Additional purchases `38,000 opt for the moratorium. months. They will charge 12-18% on this,
next two EMIs (April and May), here’s how but that will still be lower than the 36-48%
in May
the moratorium will impact his repayment Don’t avoid credit card bill annualised cost of rolling over the credit
schedule. 6. Interest@4% on (4+5) `5,347 While your home and car loan can be card balance. You can also avail of a per-
Clearly, the longer the remaining 7. June bill (4+5+6) `1,39,027 deferred in case of a cash crunch, don’t sonal loan to settle the bill. At 18-24%, per-
tenure, the bigger is the impact. This is even think of taking a moratorium for sonal loans are not cheap but not as costly
because the interest accounts for a larger Total interest (3+6) adds up to `9,027 your credit card bill. The impact of as rolling over the credit card bill.
Small savings rate cut might hurt your goals

Investments made prior to the announcement would be shielded from the cut.
By Sanket Dhanorkar Small savings schemes see Senior Citizens’ Savings Scheme falling
from 8.6% to 7.4%. The NSC too will see
Interest rates on popular small savings sharp cut for the quarter rates slide from 7.9% to 6.8%.
schemes have been cut drastically for the REAL While this sharp cut may seem unfair
OLD NEW
April-June 2020 quarter. Investors utilis- RATE OF to most, it is pertinent to note that it has
NAME OF INSTRUMENT RATE RATE
RETURN*
ing these avenues predominantly should (%) (%) been expected for some time now. Since
(%)
be prepared to earn a lot less than what 1, 2 & 3 year time 2015, small savings schemes have been
they are used to. 6.9 5.5 1.1 moved to a market-linked regime, where
deposit
Investors in PPF and Sukanya Samriddhi interest rates are supposed to be revised
Yojana will see the impact immediately 5 year time deposit 7.7 6.7 2.3 quarterly in line with corresponding
with the lower rates also applicable on ac- 5 year recurring change in yields on the government
7.2 5.8 1.4
cumulated balance in their account. PPF deposit securities. However, in recent years,
investors will fetch 7.1% compared Senior Citizen Savings the government had not responded with
to 7.9% earlier while those putting
8.6 7.4 3 rate cuts in proportion to the decline in
Scheme
money in Sukanya Yojana will earn yields on relevant government securi-
Monthly Income
7.6% compared to 8.4% earlier. 7.6 6.6 2.2 ties. This time, however, a sharp down-
Account
However, investments made in ward revision of interest rates by the
NSC, SCSS, Kisan Vikas Patra National Savings central bank has prompted the govern-
7.9 6.8 2.4
Certificate
and others prior to the announcement into finally biting the bullet.
ment would be shielded from the Public Provident Fund 7.9 7.1 2.7 However, experts reckon that inves-
cut. Only investments starting tors should continue investing in these
Kisan Vikas Patra 7.6 6.9 2.5
1 April 2020, would fetch lower instruments. With inflation also re-
rates. Those retiring now will Sukanya Samriddhi maining benign, the real rate of return
8.4 7.6 3.2
particularly feel the pinch of Yojana (adjusted for inflation) from these in-
the cut with interest rate for * Real rate of return based on average 4.4% CPI over past one year struments continues to remain high.
career strategy
TEACH TO
LEARN BETTER
USE TEACHING
1 NOTES
“We teach best what we most
need to learn,” says the author
Richard Bach. During learning,
your retention capacity is as low
as 5% when you attend a lecture,
about 75% when you implement
your knowledge and as high as
90% when you teach it. Start
teaching colleagues by writing
GETTYIMAGES
teaching notes first, thereby
thinking deeply about the subject.
SUMMARISE
2
Tips to grow as you WFH
What are the three main
takeaways from each teaching
session? Summarise your
proposed lecture to highlight
takeaways and share them at
Invest in eight eternal skills in lockdown time, says Devashish Chakravarty. the beginning and end of your
session. Use the same method
when you are attending a lecture.
Y
ou will spend a lot of time at home move your finger down the centre of a page skill is written communication. WFH has
Reflecting and writing a summary
in the coming days through lock- slowly, capturing each line as one chunk of also increased the flow of emails. To im-
immediately after learning
down and extended Work-From- information, increasing your peripheral vi- prove writing and the art of written story-
anchors your understanding.
Home (WFH) while the virus sion. You can use a speed-reading app. telling, start by publishing 250-500 words
battle rages. Use this opportunity per day in a blog or a forum. You will strug-
FILL IN THE BLANKS
to invest in life-changing skills to forever
accelerate growth. Here are eight skills to
Action skill
While the first two skills dealt with absorb-
gle initially to find a subject or topic. As you
continue for 3-4 weeks you will discover
3 Peter Drucker, the
invest in —two each from learning, execu- ing information, they are useless unless you new structures, language and a style of your management guru, said: “No one
tion, communication and mental leverage. apply your learning. To overcome procras- own. Thereafter with feedback from read- learns as much about a subject
tination, put down an execution plan with ers, you will develop a strong story-telling as one who is forced to teach
Learning speed deadlines in your calendar. Planning and technique which will serve you well. it.” Your students will struggle,
Learning to learn is the foremost skill. It goal setting increase mental engagement ask questions and expose
accelerates growth in your career, wealth, with the learning. Noting and executing as Meditation or focus power logical flaws in your thinking
health, personality and time efficiency. per your calendar ensures action without Don’t dismiss meditation as a spiritual and understanding. To fill in
To learn fast, leverage the working of your having to remember commitments. gimmick. It is a powerful mental tool that the blanks, you will discover
brain. Use chunking or breaking down increases your focus and output in tasks, connections with universal
information into small pieces, which can Behaviour change enhances quality of decision making and in- principles thus integrating your
be retained by your short-term memory. To To make all round progress, act on multiple creases productivity through efficient task learning with existing knowledge.
chunk, organise information into subjects, skills simultaneously. This will be exhaust- switching. Start by as low as 10 minutes a
INCREASED
modules and sub-topics. Spend no more
than 30 minutes in focused, undisturbed
ing when you expend some willpower to exe-
cute each task in a day. To avoid taxing your
day and move up to 30 minutes but do it daily
to see results in 2-3 weeks. You can use any 4APPLICATION OF
learning at a time. This makes it managea- willpower, incorporate these activities as meditation app or simply close your eyes KNOWLEDGE
ble and gives your mind rest thereafter, thus habits into your daily routine. So, if you go and focus on the tip of your nose, mentally When you teach you tend to live
improving retention. Finally, shift learning for a jog everyday at the same time, it is no observing each breath going in and coming up to the learning. A student
from short-term memory to long-term recall more a decision to be taken. Now to convert out. The biggest short-term impact is a drop will listen to tips on marathon
by summarising what you learnt, asking an activity into a routine, use the motiva- in stress levels. running from an athlete and not
yourself questions on the topic and practis- tion from the power of accountability. Thus, from a couch potato. As a teacher,
ing problem solving. To learn more about involve another person for going jogging to- Reducing ANT you feel accountable to your
this skill, complete the world’s most popular gether. Since you are accountable, you will ANT or Automatic Negative Thoughts are students and have the motivation
online course—Learning how to learn by soon slip into the routine of a daily run. random negative thoughts about yourself to set a personal example by
Drs Oakley and Sejnowski, on Coursera. that cross your mind multiple times a day. implementing the learnings in
Speaking These contribute to stress, social anxiety your own life.
Speed reading WFH is the best time to improve a key pro- and even depression, thus reducing hap-
A reading novice has a reading speed of fessional skill—verbal communication. piness and effectiveness. Avoidance and
IMPROVED
about 200 words per minute while a master
averages 2,000 words. Speed-reading is a
With online meetings becoming the default
mode, most of your on-to-one discussions
confrontation are two techniques you can
practice right away. Being fully occupied
5 COMMUNICATION
There is nothing more frustrating
skill you can learn and dramatically reduce are now being done in the presence of the en- in the current moment or mindfulness
for a teacher than a learner who
the time you spend on reading emails, work tire team either on call or video. Recognise practice leaves no space for ANT. In the op-
is endlessly struggling to grasp
material and learning topics. The three it as a public speaking opportunity and posite technique, pause whenever you have
the content. When you teach,
main concepts are pointing, jumping and target how you can improve this skill. First, a negative thought, question it and reframe
you get constant feedback on
chunking. Firstly, sweep your finger across pre-plan your communication—what you it positively to break its flow and to reclaim
your communication skills from
a line as you read by focusing on the tip of want to convey, in how much time and how your life.
the learners whose absorption
your finger. Increase speed over pages even you will say it for quick acceptance. Second,
capacity depends on your ability
though comprehension may be low initially. watch your tone, the reactions you get and
to convey information. Your
Pointing focuses attention and prevents experiment with words for greater impact.
THE WRITER IS FOUNDER communication improves and
back tracking. Secondly, move your eyes
AND CEO AT QUEZX.COM spills over into your career.
from one 4 to 8-word block to another, train- Writing AND HEADHONCHOS.COM.
ing your eyes to read in jumps. Finally, The other equally important professional
mutual funds
What should be
your debt fund
strategy now?
Credit risk funds,
which have taken
huge hits to NAVs
GETTYIMAGES
amid a string of
credit events, likely
to face more heat.
by Sanket Dhanorkar
T
he central bank took some un-
conventional measures a week
ago to address liquidity and Long duration and gilt funds have gained sharply over the past 1 year
growth challenges to the econo- Fund managers favour corporate bond funds and banking & PSU funds because they are safer than credit risk funds
my in the wake of the coronavi-
rus pandemic. These actions have sought
to calm the nerves of a frayed bond market.
15.7% 1-year return (%)
Here is what it means for bond investors.
RBI’s policy arsenal comprised steep,
12.7% Source: Value Research.
asymmetrical rate cuts and dramatic li-
9.6% Data as on 31 March 2020
quidity injection. But the most significant

was the announcement of Long Term Repo
7.9% 7.6%
Operation for commercial papers and cor- 6.1% 5.9% 5.2%
porate bonds. Under this window, banks 4.4%
will be allowed to borrow from the central 2.8%
bank for three years at the prevailing repo
rate. However, this comes with a condition 0.5%
that banks invest part of the proceeds into Long Gilt Banking & Dynamic Corporate Ultra short Liquid Overnight Short Medium Low
commercial papers or corporate bonds for duration PSU bond bond duration duration duration duration
up to three-years.
This provides immediate relief to corpo- offer immense value. Spreads over repo “Returns on overnight funds will remain of government bonds.” Gilt and long dura-
rate bonds and money markets that were are substantially higher than the average very low given the surplus liquidity in this tion funds have already delivered big gains
under immense stress owing to increased of the past few years, and argue for imme- segment. Conservative investors would over the past year, clocking 12.7% and
risk aversion and heavy redemptions diate action from investors.” HDFC AMC be better off in a liquid fund or even a bank 15.7% respectively during this period.
from foreign investors and mutual funds. offers similar perspective. “The short to fixed deposit.” Overnight funds have yield- Meanwhile, the prospects for credit strat-
This step will plough back liquidity into medium end of the yield curve offers better ed 5.15% return over the past year while egies have only worsened with the heavy
the starving corporate bond markets. R risk adjusted returns. Further, the spread liquid and ultra short term funds have av- toll likely to be paid by already stressed
Sivakumar, Head – Fixed Income, Axis between three years AAA corporate bond eraged 5.9% and 6.1% respectively. companies. Credit risk funds, which have
AMC, points out, “There was undue stress index and Gsec, which had widened sig- In a major policy action, the RBI cut the taken huge hits to NAV amid a string of
in the debt markets which led to spike in nificantly over the past one month is likely repo rate by a massive 75bps, taking it to credit events over the past year, are likely
yields over the last month. This has now to normalise soon.” Banking & PSU debt a historical low of 4.4%. At the same time, to face more heat. Interestingly, returns for
been corrected by the RBI.” funds have clocked 9.55% return over the it hinted at further cuts. This would nor- many low and medium duration funds also
This is positive for the corporate bond past one year while corporate bond funds mally bode well for funds playing duration suffered because these ventured into lower
funds as well as Banking & PSU debt funds. have yielded 7.6%. strategy. However, bond markets don’t quality bonds. Fund managers suggest in-
It has already led to a fall in short-term The prospects of instruments at shortest seem too enthused about rate cuts. While vestors stay away from credit funds for the
bond yields of AAA rated entities. Yield on end of yield curve have already improved yield on the benchmark 10-year govern- time being. Sivakumar says, “We continue
five-year AAA rated PSUs dropped by 125 after the losses few weeks ago. Liquid ment bond initially dropped sharply, it to favour high quality short term strategies
basis points from 7.5% to 6.25% and yield funds and ultra-short term bond funds quickly reverted to levels before the rate at this juncture.” Chari argues, “The credit
on 2-3 months PSU papers fell by 270 basis have recouped much of their losses after cut. Fund managers reckon bond markets crisis in the bond market is far from over.
points from 7.7% to below 5%. Bond yields facing a wave of redemptions owing to are more concerned about the fiscal math The pandemic will only exacerbate issues
and prices move in opposite directions. increased risk aversion. Several investors in the wake of the pandemic. Chari argues in existing stressed balance sheets so it will
Fund managers believe this is the seg- had shifted money to overnight funds as a against a duration play till more clarity be prudent to avoid taking risks.”
ment which will thrive going forward. flight to safety. Fund managers maintain emerges on this front, “It is likely that fis-
Suyash Choudhary, Head - Fixed Income, that investors are better off in liquid funds. cal slippage will be a lot bigger than antici-
IDFC AMC, insists, “Quality bonds espe- Arvind Chari, Head – Fixed Income and pated, which will force the government to
[email protected]
cially in the front end (up to five years) Alternatives, Quantum Advisors, says, borrow heavily leading to increased supply
financial planning
Understand confidence interval

for better investment planning
The function predicts the range within which the probable value of a variable is expected to appear.
by Sameer Bhardwaj not truly represent the actual risk.
For the calculation of actual risk, the
Excel’s computation requires three inputs
The first visual shows normal distribution, while the second deals with t-distribution.
A
n idea about the future data should include different mar-
movement or co-movement ket phases. The past one-year data
of financial and economic may not capture all market cycles.
variables is critical for Therefore, for small samples the t-
devising investment strate- distribution is appropriate. However,
gies. Most of the statistical tools that as the sample size goes up, the t-
are applied for studying variables aim distribution converges to the normal
at a single point output. For example, distribution.
regression analysis between a stock If one is interested in finding the
return and index return helps to range of an average value of a finan-
Screenshot 1
determine how much return a stock cial asset (like the average gold price
will generate for a given level of index or average USD-INR rate), it implies
return. A linear trend forecast will calculation of the confidence interval
determine the sales revenue of a com- of a mean. For such computations, a
pany for a particular year. term called the margin of error needs
Such single point outputs may not to be added and subtracted from the
prove effective at times, specially mean. The margin of error takes into
when market dynamics are chang- account the above mentioned statisti-
ing. The coronavirus pandemic is cal distributions and standard error.
threatening the prospects of world Such computations are tedious
economic growth. Under such condi- but the same can be easily man-
tions, a range of outputs will be more aged with MS Excel’s inbuilt func-
useful than a single point output. For tions: CONFIDENCE.NORM and
example, it is more rational to define CONFIDENCE.T. The former is used
that an asset is expected to generate a for normal distribution or large
return between 2- 5% next month (or sample data, whereas the latter is
any other period) instead of a single used for small samples or with data
point forecast like say 4%. Defining a with unknown standard deviation.
range of probable values helps in cre- Both functions require only three
ating different scenarios that result inputs: the first input ‘alpha’ is the
in better portfolio management. confidence level or the probability
Statistically, such a range of that takes a value between zero and 1.
outputs is termed as a confidence However, the extreme values are not
interval. It is calculated with respect allowed and if one attempts to use any
to the unknown parameter (which of the two values it will lead to an er-
can be average/mean, variance or ror. The second input is the standard
Screenshot 2
proportions) and defines the lower deviation, which can be managed

and upper bounds with a stated level using STDEV.S function. The final
of confidence, where such parameter input is sample size or the number of
is expected to lie. The confidence level observations used in the calculation
is expressed in percentage and 90%, and can be managed using ‘count’
95% and 99% limits are commonly function.
used in the data analysis. A 90% con- CONFIDENCE.NORM function is
fidence interval implies that there is demonstrated in Screenshot 1. Last
a 90% probability that the true value 10 years’ BSE Sensex annual return
of the unknown parameter will fall data is used. The average returns and
within the lower and upper limits of standard deviations are worked out.
the interval. Such unknown param- Inputting the required values in the
eter can be Sensex return or gold/ function at a 95% confidence level,
silver prices, oil prices, USD-INR val- the margin of error is calculated as
ues, bond prices, etc. 0.416. Adding and subtracting the ‘CONFIDENCE.T’ is demonstrated in dence intervals, experts also create prediction
For constructing confidence inter- same from the average returns gives Screenshot 2 using a small sample of gold aver- intervals that provide a range of the predicted
vals of financial market variables, the upper and lower limits of 5.82% age prices for the past 6 months. The 90% con- value for the given level of an independent vari-
two statistical distributions are often and 4.98%. This implies that there is a fidence interval of the gold prices for the next able. For example, if one is studying the impact
used, namely, the normal distribution 95% certainty that next year’s Sensex month is `39,520 to `39,707, which is obtained on household expenditures due to inflation, a
and the t-distribution. The normal return will lie between 4.9% and by adding and subtracting the margin of error prediction interval will provide lower and up-
distribution is well known and heav- 5.8%. One can observe how the inter- from the average price. The confidence interval per limits of the future households’ expenditure
ily used in modeling stock markets. val changes by increasing or decreas- states that there is a 90% probability that the for a given level of inflation rate. The prediction
On the other hand, the t-distribution ing the sample size or changing the average price of gold will be between the stated interval is beyond the scope of the article.
is used when the population standard confidence percentages. For example, lower and upper limit next month.
deviation is unknown. If the last 12 changing the confidence level to 90% The confidence intervals discussed above
months’ returns of BSE Sensex data (keeping other things constant) will provide a rudimentary introduction to statisti-
[email protected]
are used, the standard deviation may change the interval to 4.56% to 6.2%. cal intervals. In conjunction with the confi-
learn & keep
How to start investing in mutual funds

The falling markets may be a good cue to start putting your money in mutual funds. Riju Mehta provides a step-by-step guide to starting the online process.
The first step and

While the online format for investing
prerequisite to start
in mutual funds varies slightly
investing in mutual funds
HOW TO GET is to become KYC (know WHERE TO START HOW TO INVEST among AMCs and intermediary sites,
here are the common steps you are
your customer) compliant.
KYC DONE... Only after this can you INVESTING... ONLINE... likely to come across on a
mutual fund website.
invest in mutual funds, as
mandated by the Securities
and Exchange Board of
India (Sebi).
MUTUAL FUND HOUSES (online, offline, mobile apps) STEP STEP STEP
If you are a new investor, you will be required to carry out KYC or know You can physically visit an AMC office or the fund house website and start 1 Register on fund site 2 Give personal details 3 Fill nominee details
your customer/client compliance through a Sebi-registered intermediary— investing if your KYC is done. Some AMCs also have apps to invest in funds.
The advantage of investing directly through the fund house is that you don’t Open the fund website. First-time In the next step, you will be asked Here you will be asked to fill in
mutual fund houses, distributors or online platforms—via the KRAs (KYC
have to pay the agent/broker charges. However, you will be able to invest investors will first have to register to furnish your personal details the nominee details, including
registration agencies). This is a one-time process mandated by Sebi to
only in the schemes of that particular fund house. by providing their name, date of like nationality, profession, income, name, date of birth and the
prevent fraud. It involves verifying your identity as a mutual fund investor.
birth, mobile number, e-mail and and whether you pay tax in any percentage of allocation you
PAN. The site will ask whether you other country. After this you need want for the nominee. If
OFFLINE Download the KYC form from any intermediary website. are KYC compliant or not. If you are to tick the boxes for terms and you don’t want to appoint a
REGISTRAR & TRANSFER AGENTS (RTAs) not, it will provide the option to get conditions before moving to the nominee, move to the next step.
it done. If you are, you just need to next step. You can also add an
Attach self-attested You can go to any of the Sebi-registered RTAs and start investing by put in your PAN to verify compliance applicant in this step, if you want.
hard copies of identity Visit the branch completing the application form and submitting a cheque or bank draft at
Show the before starting investment.
and address proofs of a fund house, RTA the branch office. CAMS and Karvy are among the more well-known RTAs.
Fill up the or investor service original
(see Documents). Paste The benefit of investing via RTAs is that you can pick and choose schemes
form centre for an documents for
a passport-size photo
verification. across fund houses, instead of that from a single fund house.
on the form and in-person
sign across it. verification.
INVESTOR SERVICE CENTRES (ISC)

ONLINE OR E-KYC
These are basically the physical branch offices of mutual funds or RTAs
This is a paperless version of KYC and can be done in three ways. You can either complete the in various parts of the country. You can conduct all transactions, be it
entire process online, use the OTP-based system via your phone, or the biometric system. investment or redemption, at these centres.
 In the first case,  Upload/  In the biometric

 Complete
you go online to any submit
in-person  Digitally option, the FINTECH INVESTMENT PLATFORMS STEP
fund house website
or KRA site and
enter the personal
scanned
images of
documents
verification
through a
sign the
document.
investor will
be able to
Online mutual fund aggregators or third-party platforms like Groww,
Scripbox and FundsIndia are like RTAs and offer the facility of investing and STEP
STEP 4 Provide bank details
details to register. required.

video call. complete
the KYC on a conducting all transactions through their sites.
6 Make the payment 5 Investment details In this step you will need to
registered or fill in your bank details, which
whitelisted Type of investment: Select from one- will include providing the IFSC
 In the second case, you can get only PAN/Aadhaar-
 You will get
device DEMAT ACCOUNT This is the last stage of investment time lump sum or periodic systematic Code, your account number and
a one-time
based KYC through a Sebi-registered mutual fund operated by the process and you can make the investment plans (SIPs). Some sites type of account. After this you
password (OTP) You can invest in funds directly through the demat account, which holds all
distributor or adviser (if they have registered with intermediary payment online or offline. If you offer ELSS and SIPs with insurance. check a box confirming that the
on your phone. securities—stocks, mutual funds, bonds, exchange-traded funds, government
a KYC user agency (KUA) as a sub-KUA), as per a using biometric are making the payment online, do investment and redemption will
Enter it and you securities—at one place. You will, however, have to pay annual charges to Scheme and plan: Next, pick if you
provision introduced by Sebi on 5 November 2019. details. so and check the box for the final take place through the account
will be verified. the broker, in addition to the expense ratio. are investing directly or through an
confirmation. To register for automatic agent/distributor. Since you are doing it you have filled in and then
bill payment with your bank through yourself, click ‘directly’. proceed to the next step.
Documents and information you need to keep ready Net banking, you will receive a SIP
MF UTILITIES Registration Reference Number, which For the type of ‘scheme’ you want, pick
You will need to keep handy a set of documents for KYC verification and while investing. you will need to provide to the bank. from Equity, Debt, Hybrid and others.
One can also invest either online or offline through MF Utilities (MFU), If you click on ‘Equity’, you will have to
Address proof (Any one) a shared service platform promoted by the mutual fund industry choose between ‘Growth’ and ‘Dividend’
and owned by several AMCs for fund transactions. For more options. The former option is better.
 Aadhaar information, visit www.mfuindia.com. SIP period & amount: In SIP option,
Identity proof  Passport `
decide how much amount you can
 Driving license
 PAN card While investing STOCK EXCHANGES
invest, with what frequency, and on
 Any one document  Ration card which date of the month you want to
 Bank account do so. You can also decide the duration
from passport,  Voters identity card
number & type Since February this year, Sebi has allowed investors to invest in mutual
Aadhaar card,  Utility bills (gas, or the number of instalments. For the
 IFSC code funds directly through recognised stock exchanges, allowing them to bypass
driving license, telephone, electricity) latter, you also have the option of
 E-mail and
brokers or intermediaries. To avail of this facility, you will need to complete
voter ID card.  Bank account statement
continuing indefinitely.
phone number one-time online registration with NSE or BSE.
 Latest photograph. or passbook Screenshots have been taken from an actual fund house website.
financial planning
WEALTH
WHINES
Why is your spouse hiding
Money &
Relationships
financial information?
Find out the reasons your husband is not sharing money-related information with
you and what you can do about it to protect yourself, says Riju Mehta.
G
iven the manner in which become proactive in taking on some finan- mistakes, losing money in the procedure.
Covid-19 has impacted the econ- cial responsibility, whether it is saving or This insecurity is often hidden behind a
omy, many people have suffered spending, making the household budget or wall of silence. If you feel your spouse is
heavy losses, rendering their fi- framing goals and investing. You have to be not too comfortable handling money, but
nancial plans askew. An unlike- an equal financial partner to have access to you are, talk to him about it. If required,
ly fallout of this development could be that all the information. you could even hire a financial adviser
the men, who have taken the onus of invest- so that both of you are in the know and
ing and handling finances, may be unwill- Bid to retain control the burden of managing doesn’t rest on
ing to share the financial details with their 2 In many marriages, power strug- either of you.
wives, leading to a strained relationship. gle is often centred on money. If husband
Poor habits or debt
Even without the stress of bad investments,
many men are reluctant to share financial
is the sole earner, he retains control over
how the money is spent and saved, leaving 4 If your spouse is addicted to
information with their partners for various the woman completely dependent on him. gambling or spending and, as a result,
reasons. Is your husband also silent about Similarly, retaining all financial informa- has taken a large number of loans or is
financial affairs? If yes, it is important to tion about how he manages it gives him the in a debt trap, it is likely that he will not
know the reason because only then can you upper hand. So before you decide to give up talk to you about money at all. He even
protect your own financial interests. your job after marriage, understand your might resent or become angry with your
spouse’s attitude and know that your finan- constant enquiries about spending and
Your lack of interest cial future and independence might depend investing. In such a case, it is better to
1 Did you, at the start of the relation- on this decision. seek the help of a counseller to get to the
ship or marriage, fail to show any interest root of the problem. If not, you are likely
in financial matters or refuse to take on Bad money manager to end up with an insecure future.
any money-related responsibility? If yes, 3 A common and mostly unknown
you can’t blame your spouse for not sharing reason men do not tell their wives about To avoid fights
5
ANIRBAN BORA
the financial details. If he feels you won’t money is that they feel pressured to han- If you and your spouse have dif-
understand or appreciate how he man- dle it even though they are not adept at it. ferent financial values or goals and can’t
ages money or invests, he will not tell you Under social pressure to provide and plan find a way to reconcile, it is likely that
much about it. To rectify this, you need to for the family’s future, they make investing every financial discussion ends in a fight.
This is probably the reason your husband
avoids talking about money with you. If
IF YOU HAVE A WEALTH WHINE, WRITE TO US... Disclaimer: The advice in this column is not from
a licensed healthcare professional and should you want to share a financial future, you
All of us have been in a financial dilemma when it comes to relationships. How do you say no to a friend not be construed as psychological counselling, will have to reconcile your differences,
who wants you to invest in his new business venture? Should you take a loan from your married brother? therapy or medical advice. ET Wealth and the either by seeking counselling or going to
Are you concerned about your wife’s impulse buying? If you have any such concerns that are hard to writer will not be responsible for the outcome of
resolve, write in to us at [email protected] with ‘Wealth Whines’ as the subject. the suggestions made in the column. a financial planner. If not, you are likely
to end up with unmet goals.
READERS’ QUERIES
My father died in 1995. My brother and mother, who is scared of him, have sold
Q my share of ancestral property. How can I get my share? — Vanya Kapoor
It is not clear whether the ancestral property is divided or not. If your share has been sold from the ancestral property or undivided ancestral property without taking your
prior consent, you can claim it through legal action. If the ancestral property is divided, you can file a title suit against the registry of the deed by virtue of which your share
was sold out. If the ancestral property is undivided, you can file a suit to claim your share in consideration received from the sale of property and also a stay application for
preventing your brother from selling more. You can also consider filing a partition suit for rest of the undivided ancestral property.
I live with my husband in Delhi. following action. Revoke the power of business in partnership with my broth- agreed upon in the partnership deed
Q My father lived in Kolkata and
died intestate. In 1993, I had ac-
attorney so that the attorney holder
can’t continue selling the property.
ers. He says that the commercial prop-
erty is shared among sons and father
executed, and provided your father has
not bequeathed or transferred his share
companied my husband overseas. On Assuming that the power of attorney and that I don’t have any rights. My fa- to anyone.
the request of my older brother in includes the sale of property, you can ther also has a self-acquired house, A person is free to distribute his self-
Kolkata, I had executed a general pow- file a suit under the Specific Relief Act, which is going to be sold. He says the acquired property in any manner as per
er of attorney regarding my share of 1963, to claim a share in consideration sons will get a higher share of the sale his own discretion. If he dies intestate,
property. After return from overseas, I of the amount received from the sale proceeds and I will get a lesser share the legal heir can claim an equal share
have been asking for my share, but he of this property. You can also file a because I might settle abroad. This is in the property of the deceased.
does not want to give it. One of the two case against your brother for criminal not true as I will return to India. How
properties has already been sold. Is it breach of trust for the sold property. can I get my share of the property?
possible for me to get my share? — Vindhya Sharma
— Waheeda Singh I am a divorcee with a son. I If your father dies intestate, being a
Raj Lakhotia
Subject to the power given by you to the
attorney holder by way of execution
Q work outside India and don’t
have any financial support
legal heir, you have the right to claim
your share from your father’s partner-
Founder, Dilsewill
of power of attorney, you can take the from my ex-partner. My father has a ship firm subject to anything contrary
financial planning
Help the migrant find a home

Much needs to be done to protect the millions of labourers who work in our cities, says Uma Shashikant.
We are not talking of a few. Millions of mi-
grant labourers, living in abominable condi-
tions in our cities, contributing to its economic
growth, but never able to call it home. They
have to pick up their bundles and leave when a
pandemic strikes because it is not their home.
We will argue about the unfair H1B process;
the long line for green cards; the unfairness
of spousal employment under H4; and about
how the Indian immigrant is an important
contributor to the Western economy. But the
migrant worker who cannot afford to bring
his wife to the city; the daily wage earner who
hasn’t met his family in months; or the worker
who only rents a bed and shares a bathroom
with 10 roommates do not evoke our collective
consciousness.
Thus we have the economic system that
uses hands and legs, backs and bodies to build,
clean, cart and drive, and feels it is a fair deal
to pay humans for the actual hours they work.
We don’t see the denial of the basic right to call
the place they work in home, to a fellow human
being like us, as an act of gross social injustice.
We do fight for stray dogs and we do become
vegans to save cattle, but we let these fellow hu-
mans remain homeless in our large cities.
We got here because we stopped caring. We
limited our focus to ourselves—our job, our
income, our wealth and our family. We forgot to
give, to include, to empathise, to enable, and to
take our communities along. We have no stake
in our communities, the places we live in and
H
ow does one define home? The It is not easy to work in an alien land. If work. We are all nomads occupying slots of eco-
place one was born in? Where Indians abroad complain of racial discrimi- nomic value that pays us money. We don’t know
one works? Or is it where one nation, north eastern Indians in Bengaluru how every other piece fits in that collage of our
lives with the family? Our need suffer bullying too. The differences in our lives—every human being that contributes to
to be economic units that earn cultures, looks, food, language and habits make our life what it is.
an income has made nomads of us, displac- show us up as outsiders. We suffer the igno- If not for those hundreds of faceless con-
ing us from our homes. miny because we need the job. tributors, who would we be? How would we
Consider the children of well-heeled par- Those who already live there see us as des- work, eat, commute, live, love and thrive? We
ents who go abroad to study. They find jobs olate people who have to leave home to earn have turned into societies that grab, take, and
and settle in foreign locations and raise a money. The parochial mindsets recognise behave with an entitlement mindset. Thus we
UMA SHASHIK ANT
IS CHAIRPER SON, CENTRE family there. They are the proud achievers locals as ‘us’, and outsiders as ‘them’. Those don’t see those who walk home in hunger and
FOR INVES TMENT their parents and society brag about. Many who have willingly uprooted themselves sorrow as people like us. People we abandoned.
EDUC ATION AND LE ARNING middle class households crave for that possi- from the comfort of home, must be desper- To donate money is to take the easy and lazy
bility of a dollar income earning offspring. ate. There is no acceptance or respect, and it way out of the problem. Dignified humans do
Then consider those workers, walking comes grudgingly even if it does. not stand and wait for charity. Into our every-
home with children on their hips, belong- What does one do when there are no eco- day lives, we have to include our community.
ings bundled on their head. They also nomic opportunities near home? How does We have to take it upon ourselves the respon-
moved to the big city in search of a better life one cope with poor quality education and sibility for every single person who enables
What would a and better income. How is it that we have mindless entrance exams? How does one get our lives. We cannot see urban migration as a
migrant labourer do nothing but pity and disdain for them? How a place in the rat race for favours? One sets policy problem that offers pavements as homes
in an alien city? He are they different from the first lot? out into the big bad world, to find a place. To and streets as toilets to millions of our fellow
would try and stay How cruel is that economic reality that learn, to upskill, to work, to earn and to live. humans.
close to others from our earnings are in one place and our homes The new place can become home. If one There is no difference between the coveted
his village. But he are in another, and we live a life torn be- feels safe, secure, and knows someone will NRI and the construction worker. The former
cannot make the new tween the two. What we call home is where have their back when they are in trouble. has nudged his way into the community he
city his home. The we think we belong; a place that accepts and Indians abroad gather into communities, lives in and found his voice and power. The lat-
city is a place that supports us. We give that warmth up for lobby with local politicians, find their voic- ter remains on the fringe, powerless and alone.
pays for labour. But earning an income. es and carve out homes in a foreign land. Let us not stop at merely donating to feed the
there is no place to Except we do not see everyone out on this What would a migrant labourer do in a misplaced. Let us find a way to integrate these
stay. Every square pursuit as equals. For one class we host an large alien city? He would try and stay close people into the places they have come for a bet-
foot is expensive. investment mela in a five star location; the to others from his village. But he cannot ter life, so they can call it home. So they won’t be
Cost of living is high. other, we let them walk for miles without make the new city his home. The city is a asked to pick up and leave ever again.
food or water, because we failed to account place that pays for labour, and has consist-
for how they could get home, safely and with ent work to offer. But there is no place to
dignity. Even while they bear the burden of stay. Every square foot is expensive. Cost of
[email protected]
having lost their livelihood. living is high.
financial planning
Managing risk in a PAPER WORK
volatile environment
Do not liquidate or accumulate more until the market settles down.
:: Stop SIP instruction
Once a desired financial goal
is reached, an investor may
choose to stop the systematic
investment plan (SIP) instruction.
This may also be needed in case
the investor is not in a position to
Atul is 42 and has worked hard to build continue with the SIP instalment
for the designated period. The
a portfolio of equity shares to create process to cancel or stop an SIP is
a retirement corpus. However, the a simple one and can be done by
dramatic swing in the markets has the investor himself or with the
made him question his investment help of his financial adviser.
strategy. Should he take the risk with

his funds, earmarked for his retirement
approximately 15 years away? Should he Online procedure
stay invested in this volatile environment The investor can login to the
or change his asset allocation in favour of mutual fund website using
login credentials or folio
less volatile asset classes such as debt or details. Else, the investor can also login
real estate? Is this a good time to make the to the online transaction platform of
switch, he wonders. the R&T agent or the distributor and
click on ongoing SIP instructions. The
L
ong-term investors such as Atul must re- investor then needs to select the SIP
main calm through periods of volatility. instruction that needs to be stopped
Making dramatic changes to his portfolio and click on ‘Cancel/Stop’ SIP.
at times of extreme market volatility could
prove detrimental to his wealth. Since he
has invested with a certain investment horizon and
plan in mind, he must have been fully aware of the Offline procedure
inherent risks of equity and the potential long-term Alternatively, the investor
returns. His equity investment provides him the best can fill up a ‘Stop SIP’ form
opportunity to meet his retirement goal which is a available on the mutual
long time away. If he quits at this time out of panic, he fund website for download. He
will not only miss out on the possibility of an uptick must fill up the SIP details, folio
when he is away, but will also be hurt in terms of an number, PAN and sign the form. It
overall fall in return on his investment. should then be submitted to the
A better choice is to hold back from investing more financial adviser or the AMC office
in equity. Let us assume that he had 70% of his money or investor service centre. An
acknowledgement counterfoil shall
in equity. His equity exposure would naturally come
be given to the investor on the
down as his existing holding would have moved down,
submission of cancellation request.
and he is not putting in fresh money. The only down-
side to this is the lost opportunity of investing in a
falling market, but that call is tough to take for most
investors. Staying invested is a tough decision when
Process
the money continues to lose value in a falling market Once the instruction is
and the future is unpredictable in a rapidly evolving submitted, the request takes
global situation. about 15-20 days to be
processed. Hence, it is important
Equity markets are subject to cycles of volatility.
GETTY IMAGES
to keep a sufficient number of

Market volatility is a reminder for Atul to review his
days in hand after submission of
investments regularly and make sure he has a well-
the cancellation instruction. If this
diversified portfolio. It may be natural to react emo-
duration is less, the chances are there
tionally, but at such times it is extremely important that the next SIP instalment may get
to not get carried away and liquidate or accumulate Content on this page is courtesy Centre for Investment Education and Learning (CIEL). debited before the cancellation of SIP.
more until the situation settles down. Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
smart things to know Short selling :: Points to note

 If the investor wishes to pause
the SIP for a short duration, he
2 4
can use the ‘Pause SIP’ option
1
instead of discontinuing.
Short selling  Though the SIP mandate stops,
is selling the existing investment which
equity These shares are If the price of a stock that Short selling has already accumulated will
shares that lent to the seller Retail and the seller has shorted falls, happens when remain invested.
3 5
are not by the broker Institutional he can buy back the stock at there is a
owned by with a promise investors the lower price and make a bearish trend in
a seller and that they will be are profit. However, If the price the market and
is not in delivered back to permitted of the stock rises, he has investors expect
his demat the broker at the to short to buy it back at the higher the prices of
account. time of settlement. sell. price, and will incur a loss. shares to fall.
QA
your queries
I have a 40-year-old
specially-abled brother. He
& After my wife died in July 2019,
all her investments were
has no source of income. transferred in my name. As a
Can I open a PPF account in result, my annual income is `16
his name? Can I also save lakh. I am 88 years old and the
some money for him and A PPF account basic exemption is `5 lakh. How
Assuming your
buy insurance policies that can be opened can I reduce my tax burden?
might help in his old age? income is in
in his name, the form of
with your interest
assistance.
If he is unable to sign the form, you will
Our panel of experts will earned, you can reduce taxes by claiming
deductions for medical expenses, if any, and tax
require a Power of Attorney, authorising you answer questions related to saving investments such as deduction for interest
to act on his behalf. The same procedure will any aspect of personal up to `50,000 (Section 80TTB), deduction under
apply in case of other investments too. You Section 80D for medical insurance, medical
could make him a nominee in a few of your finance. If you have a query, expenses and preventive health check-up up
investments. This will help him in case you mail it to us right away. aggregating to `50,000, deduction under Section
pre-decease him. You can buy a life insurance 80C up to `1.5 lakh for investments in Senior
policy for your brother only if you have an Citizens’ Savings Scheme, ELSS funds, PPF, etc
‘insurable interest’ in it. You must prove that
the loss of your brother’s life will affect you QUESTION OF THE WEEK and deduction in respect of expenses on medical
treatment of certain diseases up to `1 lakh under
financially. You can may make him a Section 80DDB. If you do not intend to claim any
nominee for a new / existing such deductions, or the total of all such
I have accumulated 31,598.052
non-term policy so that he deductions you claim does not exceed `2,08,333,
can receive the maturity
units of HDFC Balanced Advantage
then the new regime will be beneficial to you.
proceeds or the death Fund and earn a monthly
However, while a taxpayer can avail various
benefit in due course. dividend of `9,795.40. I will need deductions under the old regime, the new regime
my investment of `9 lakh only does not allow deductions, except a few, which
after 5-6 years. Now that the NAV may not be applicable in your case. The new
Jayant R. Pai
CFP and Head - Products, is falling, what should I do? regime can help you save up to a maximum of
PPFAS Mutual Fund `65,000 in taxes. You may refer to
https://www.
The balanced advantage or dynamic incometaxindiaefiling.gov.in/
I bought the HDFC Unit Tax_Calculator/index.
asset allocation category allows a
Linked Pension Plan in html?lang=eng for a
2006 for an annual
fund to invest freely across equity
and debt. HDFC Mutual Fund comparative analysis.
premium of `50,000. I
paid `7 lakh before I had continues to maintain this fund in its
The surrender value classic style, and this reflects in its
to surrender the policy Homi Mistry
recently. I received or maturity low turnover ratio and higher equity Partner, Deloitte Haskins & Sells
`10.54 lakh. What will be proceeds are tax- allocations vis-à-vis other schemes
the tax implication? I am exempt if the from this category. Further, the
in the 30% bracket. following fund’s equity exposure is in a mix of
conditions are growth and value stocks, and thus
satisfied: The policy My father-in-law is a
the performance lag can persist. The retired central government
was taken between 1 April 2003 and 31 other aspect is the choice of dividend employee. His only source
March 2012 and the premium paid for any option which results in the fall in NAV of income is his pension. Is
of the years does not exceed 20% of the with every dividend payout. he supposed to pay TDS at
sum assured. In case of surrender of the Dividends are now taxable in the periodic intervals or only Pension is taxable
policy, the sum received would form the hands of investors. If you fall in the once a year? under the head
sum assured. In your case, the policy was 30% slab, then dividends received ‘income from salaries’
taken in 2006. Hence, the condition of will be taxed at the same rate. Thus, and hence TDS is
premium payment not exceeding 20% will 2020-21 onwards, dividend option deductible on the same. Any amount of commuted
apply to you. Your annual premium should only be used if you are in the pension, if received by employees of civil services
payments work out to 4.74%, which is less lowest tax slab. If not, move to the of central or state government, defence or any local
than 20% of the surrender value. Hence, the growth option and do authority, is exempt from tax. In case of non-
maturity proceeds are tax- monthly SWP for cash commuted pension, the employer is liable to deduct
exempt. You have to report flow needs. Take a TDS at the slab rates applicable to the pensioner.
the `10.54 lakh received call once markets Ordinarily, the employer in this case will deposit
as tax-exempt income stabilise. TDS on a monthly basis. Any individual, whose tax
while filing your income payable (after deducting TDS) exceeds `10,000 in a
tax return. financial year, has to pay advance tax. However, a
resident senior citizen not having any income from
Prableen Bajpai business or profession is not liable to pay advance
Founder, Managing Partner,
Archit Gupta FinFix Research & Analytics tax and can pay all due taxes while filing the income
CEO, ClearTax
tax return. Your father in law will
pay any tax due while filing his
income tax return by 31 July.
I am 44 and have a 6-year old Your quantum of investment will depend on your surplus every month and a
daughter. I plan to work for the next
ballpark figure of how much you want for each goal. Use any online calculator
14-15 years. Which funds should I
to arrive at this figure with 4-5% inflation assumption. Since you
Amit Maheshwari
invest in for my child’s education Partner, AKM Global
and marriage and my retirement? I already have some mutual funds, pick the ones that have been
have a family floater policy of `5 consistently performing well and make sure you allocate each
lakh, mutual fund investments fund to a specific goal. Go with a 60-75% allocation for your
worth a few lakhs and some FDs. retirement and about 60-70% for your daughter. Use a
combination of multi-cap, mid-cap and index funds for equity
and some short duration funds and FDs for debt. Up your medical cover by at least 3 times.
Ask our experts
Have a question for the experts?
[email protected]
Vidya Bala, Co-Founder, PrimeInvestor.in
smart stats
LAGGARDS & LEADERS

ETW FUNDS 100
BEST FUNDS TO BUILD YOUR PORTFOLIO
Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).
LAGGARDS LEADERS
ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are
-3.45 4.95
ranked on 3-year returns while debt-oriented hybrid and income funds are Principal Nifty 100 Equal Weight Axis Bluechip
ranked on 1-year returns. -3.27 2.81
Taurus Largecap Equity Canara Robeco Bluechip Equity
Value Research Net Assets

RETURNS (%)
Expense -1.92 2.69
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) Franklin India Bluechip Mirae Asset Large Cap
-1.87 2.49
EQUITY: LARGE CAP
Axis Bluechip Fund  11,823.95 -21.7 -18.91 -11.66 6.24 4.95 1.71
6.2% Baroda Large Cap Nippon India ETF Shariah BeES
THE 3-YEAR -1.72 2.19

Canara Robeco Bluechip Equity Fund  352.87 -23.62 -18.31 -16.2 1.62 2.81 2.56
Tata Index Sensex Fund  14.89 -30.73 -25.4 -26.01 -0.63 0.7 0.46
RETURN DSP Top 100 Equity SBI ETF Nifty Next 50
OF AXIS
Sundaram Select Focus Fund  1,046.48 -29.04 -23.98 -23.47 -0.69 1.3 2.25 BLUECHIP IS
HDFC Index Fund  803.31 -31.62 -26.3 -26.92 -0.88 0.93 0.3 THE HIGHEST
Motilal Oswal Focused 25 Fund  1,236.79 -25.84 -21.58 -16.05 -1.12 1.95 2.2 IN ITS Equity: Multi-cap 5-year returns
Edelweiss Large Cap Fund  174.32 -28.42 -24.25 -24.06 -1.63 0.54 2.07 CATEGORY.
Mirae Asset Large Cap Fund  16,733.83 -30.88 -25.36 -26.9 -2 2.69 1.67 -4.21 4.91
UTI Nifty Index Fund  1,855.78 -32.27 -27.26 -28.67 -2.52 0.11 0.17 Taurus Starshare Multi Cap SBI Focused Equity
HDFC Index Fund Nifty 50 Plan  1,059.45 -32.3 -27.36 -28.83 -2.65 0.05 0.3
-3.89 4.72
Indiabulls Bluechip Fund  148.38 -30.47 -25.27 -26.26 -3.36 0.77 2.43
Nippon India Multi Cap Parag Parikh Long Term Equity
ICICI Prudential Bluechip Fund  23,608.74 -31.4 -27.09 -27.9 -3.8 0.54 1.77
-3.61 4.37
EQUITY: LARGE & MIDCAP
Invesco India Growth Opportunities Fund  2,498.42 -27.71 -23.69 -24.15 -0.4 1.77 1.98
-0.4% Nippon India Retirement Axis Focused 25
THE 3-YEAR -2.53 3.78

Mirae Asset Emerging Bluechip Fund  9,613.59 -28.91 -21.84 -23.15 -1.15 6.65 1.84
RETURN OF HDFC Focused 30 IIFL Focused Equity
LIC MF Large & Mid Cap Fund  656.93 -27.28 -22.7 -20.43 -2.43 3.41 2.61
INVESCO IN-
Canara Robeco Emerging Equities Fund  5,597.35 -24.98 -19.2 -23.15 -2.47 4.13 1.93 DIA GROWTH
-2.22 3.49
Kotak Equity Opportunities Fund  3,167.85 -27.74 -21.42 -23.35 -3.18 2.06 2.1 OPPORTUNI- Franklin India Equity Tata Retirement Savings
Sundaram Large and Mid Cap Fund  1,167.45 -31.75 -27.82 -27.59 -3.57 1.84 2.18 TIES FUND IS
THE HIGHEST
Principal Emerging Bluechip Fund  2,116.72 -26.77 -21.56 -24.29 -4.38 2.54 2.11
IN ITS
DSP Equity Opportunities Fund  5,279.30 -30.22 -25.96 -26.59 -4.94 1.71 1.96 CATEGORY. Equity: Mid-cap 3-year returns
EQUITY: MULTI CAP
-12.2 4.86
SBI Focused Equity Fund  8,263.77 -23.51 -18.39 -16.95 3.03 4.91 1.88
Motilal Oswal Midcap 100 ET Axis Midcap
Axis Focused 25 Fund  9,764.08 -26.61 -22.82 -17.03 2.15 4.37 1.83
Parag Parikh Long Term Equity Fund  2,794.86 -22.75 -18.3 -16.96 1.89 4.72 1.99 -11.56 -4.06
Canara Robeco Equity Diversified Fund  1,771.87 -23.1 -18.53 -19.37 1.33 1.86 2.26 Aditya Birla Sun Life Mid Cap Quant Mid Cap
IIFL Focused Equity Fund  756.12 -27.33 -21.15 -16.42 0.06 3.78 2.32
-10.99 -4.07
Tata Retirement Savings Fund  742.53 -25.77 -21.91 -20.9 -0.71 3.49 2.43
SBI Magnum Midcap DSP Midcap
DSP Equity Fund  3,522.61 -26.07 -22.57 -19.24 -0.92 2.12 2.05
JM Multicap Fund  138.75 -27.81 -25.27 -18.97 -2.19 2.67 — -10.49 -4.96
Edelweiss Multi Cap Fund  544.52 -28.48 -25.02 -26.66 -2.38 1.12 2.42 IDBI Midcap Edelweiss Mid Cap
Kotak Standard Multicap Fund  29,459.53 -30.25 -25.93 -26.65 -3.18 2.5 1.66 -10.02 -5.67
SBI Magnum Multicap Fund  8,491.77 -29.77 -27.25 -26.44 -3.94 1.94 1.84
ICICI Prudential Midcap Nippon India Growth
Motilal Oswal Multicap 35 Fund  12,371.55 -30.47 -28.08 -27.34 -6.1 1.79 1.8
EQUITY: MID CAP

Axis Midcap Fund  5,192.94 -19.2 -14.27 -12.02 4.86 4.78 1.94 4.9% Equity: Small-cap 3-year returns
DSP Midcap Fund  7,458.11 -24.18 -18.57 -20.66 -4.07 3.57 1.93 THE 3-YEAR
Kotak Emerging Equity Fund  6,850.82 -28.67 -22.91 -25.6 -6.23 1.99 1.88
RETURN OF -16.75 -0.25
AXIS MID-
Aditya Birla Sun Life Axis Small Cap
L&T Midcap Fund  6,212.86 -27.58 -22.99 -29 -6.25 2.02 1.95 CAP FUND IS
THE HIGH- -15.85 -0.4
EQUITY: SMALL CAP EST IN ITS Sundaram Small Cap SBI Small Cap
Axis Small Cap Fund  2,506.67 -25.42 -20.51 -14.41 -0.25 4.09 2.01
CATEGORY.
-14.69 -8.16
SBI Small Cap Fund  3,475.83 -24.6 -21.83 -23.01 -0.4 6.67 2.19
Nippon India Small Cap Fund  8,566.82 -31.3 -27.53 -34.1 -8.16 1.82 1.81
Quant Small Cap Nippon India Small Cap
HDFC Small Cap Fund  9,154.08 -33.45 -32.77 -42.29 -8.41 0.02 1.94 -14.19 -8.41
L&T Emerging Businesses Fund  5,606.21 -34.67 -32.69 -40.32 -10.67 0.37 1.98 HSBC Small Cap Equity HDFC Small Cap
EQUITY: VALUE ORIENTED -13.61 -8.43

Kotak India EQ Contra Fund  866.17 -31.02 -27.21 -27.99 -2.11 0.86 2.39 Franklin India Smaller Companies Union Small Cap
Invesco India Contra Fund  4,668.45 -28.38 -23.8 -27.91 -2.45 2.15 1.93
Tata Equity PE Fund  4,567.21 -31.11 -27.58 -29.81 -6.68 0.87 1.92
L&T India Value Fund  7,040.66 -33.52 -28.93 -33.72 -9.21 0 1.88 Hybrid: Aggressive 5-year returns
EQUITY: ELSS
-3.65 4.26
Axis Long Term Equity Fund  21,658.58 -24.53 -20.33 -15.38 2.51 3.42 1.7 2.5% JM Equity Hybrid Canara Robeco Equity Hybrid
Canara Robeco Equity Tax Saver Fund  1,036.37 -22.92 -18.74 -19.71 1.05 1.83 2.3
THE 3-YEAR
Mirae Asset Tax Saver Fund  3,281.58 -30.36 -23.92 -24.88 -0.42 — 1.97 RETURN OF -2.7 3.83
Invesco India Tax Plan  1,028.18 -26.46 -21.88 -23.53 -1.2 1.66 2.39 AXIS LONG Nippon India Equity Hybrid DSP Equity & Bond
TERM EQUITY
Aditya Birla Sun Life Tax Relief 96  10,072.72 -25.01 -19.6 -23.99 -2.13 1.95 1.71
FUND IS THE
-1.65 3.83
JM Tax Gain Fund  37.72 -29.35 -27.16 -23.34 -2.43 1.93 —
HIGHEST IN PGIM India Hybrid Equity SBI Equity Hybrid
Tata India Tax Savings Fund  2,060.38 -30.56 -26 -26.62 -3.28 1.98 2.11
Kotak Tax Saver  1,135.45 -28.76 -23.47 -23.9 -3.77 1.03 2.48
ITS CATEGORY. -0.6 3.68
Motilal Oswal Long Term Equity Fund  1,685.97 -30.44 -25.79 -23.74 -4.04 3.8 2.1 Tata Hybrid Equity Principal Hybrid Equity
DSP Tax Saver Fund  6,096.28 -30.72 -26.79 -26.05 -4.38 1.94 1.97 -0.53 3.62
Quant Tax Plan  9.54 -27.91 -25.15 -28.34 -4.87 3.17 2.48 UTI Hybrid Equity Tata Retirement Savings
ANNUALISED RETURNS IN % AS ON 1 APRIL 2020.
smart stats
ETW FUNDS 100 Top 5 SIPs

Value Research
Fund Rating
Net Assets
(` Cr) 3-Month 6-Month
RETURNS (%)
1-Year 3-Year 5-Year
Expense
Ratio
1 Top 5 equity schemes based
HYBRID: EQUITY SAVINGS on 10-year SIP returns
Edelweiss Equity Savings Fund  114.70 -6 -3.09 -1.45 4.68 5.03 1.74 SBI Small Cap
Kotak Equity Savings Fund  1,712.30 -11.93 -8.8 -7.41 2.59 4.28 2.12
13.80
Axis Equity Saver Fund  792.93 -12.34 -10.21 -7.89 2.58 — 2.35

Canara Robeco Emerging Equities
ICICI Prudential Equity Savings Fund 1,473.63 -15.08 -11.35 -9.29 1.09 4.02 1.36
12.13
HYBRID: AGGRESSIVE (EQUITY-ORIENTED)
Canara Robeco Equity Hybrid Fund  3,071.18 -16.82 -12.29 -11.99 2.21 4.26 2.05 2.2% Axis Long Term Equity
SBI Equity Hybrid Fund  32,469.68 -20.6 -16.65 -14.12 1.98 3.83 1.62 THE 3-YEAR 11.10
Mirae Asset Hybrid Equity Fund  3,423.88 -23.22 -17.4 -18.65 0.09 — 1.94 RETURN OF
CANARA SBI Focused Equity
DSP Equity & Bond Fund  6,464.64 -20.22 -16.9 -13.92 -0.17 3.83 1.92
ROBECO EQ- 10.06
Tata Retirement Savings Fund  1,141.67 -21.71 -18 -18.38 -0.33 3.62 2.23
UITY HYBRID
HDFC Retirement Savings Fund  387.69 -21.5 -18.36 -20.22 -0.89 — 2.73 FUND IS THE Principal Emerging Bluechip
Principal Hybrid Equity Fund  1,265.62 -21.23 -17.36 -22.37 -0.96 3.68 2.07 HIGHEST IN
ITS CATEGORY. 9.80
HDFC Children's Gift Fund  3,082.53 -23.1 -19.8 -21.72 -1.44 2.63 2.12
ICICI Prudential Equity & Debt Fund  20,611.45 -26.32 -20.31 -23.54 -3.3 2.27 1.73 SIP: SYSTEMATIC % ANNUALISED RETURNS
INVESTMENT PLAN AS ON 1 APRIL 2020
HYBRID: CONSERVATIVE (DEBT-ORIENTED)
Baroda Conservative Hybrid Fund  25.36 0.69 2.37 9.2 6.85 6.74 2.07
Top 5 MIPs
ICICI Prudential Regular Savings Fund
Indiabulls Savings Income Fund



1,746.10
26.30
-4.12
-4.36
-0.83
-1.84
2.15
0.04
6.03
6.94
7.27
—
1.98
2 2 Top 5 MIP schemes based on
Tata Retirement Savings Fund 136.63 -4.92 -2.92 -0.18 4 6.09 2.22
DEBT: MEDIUM- TO LONG-TERM 3-year SWP returns

SBI Magnum Income Fund  1,301.28 3.17 6.89 12.6 7.84 8.39 1.47 Indiabulls Savings Income
Nippon India Income Fund  299.46 3.41 5.07 12.57 7.84 7.93 1.62 12.6%
THE 1-YEAR 6.84
IDFC Bond Fund Income Plan  683.35 3.4 4.96 11.76 7.19 7.82 1.9
ICICI Prudential Bond Fund  3,437.89 2.93 5.5 11.06 7.52 8.02 1.08 RETURN OF Baroda Conservative Hybrid
SBI MAGNUM
DEBT: MEDIUM-TERM INCOME FUND 6.76
SBI Magnum Fund  3,099.90 2.84 5.7 11.31 8.41 9.01 1.13 IS THE HIGH- ICICI Prudential Regular Savings
EST IN ITS
IDFC Bond Fund  3,065.60 2.68 4.15 9.35 7.18 7.7 1.44
CATEGORY. 5.98
HDFC Debt Fund  1,416.65 2.6 4.92 9.32 7.2 7.86 1.29
Indiabulls Income Fund  30.90 2.31 3.62 7.73 7.88 7.58 0.9
Canara Robeco Conservative Hybrid
4.75
DEBT: SHORT-TERM
HDFC Short Term Debt Fund  12,216.31 2.35 4.83 9.61 7.96 8.23 0.39 BNP Paribas Conservative Hybrid
Axis Short Term Fund  5,398.22 2.25 4.55 9.43 7.58 7.94 0.95 4.62
Baroda Short Term Bond Fund  417.49 2.52 4.63 9.21 7.88 8.35 1.29
SWP: SYSTEMATIC % ANNUALISED RETURNS
L&T Short Term Bond Fund  5,189.52 2.46 4.53 9.13 7.56 7.76 0.73
WITHDRAWAL PLAN AS ON 31 MARCH 2020
IDFC Bond Fund Short Term Plan  12,340.94 2.21 4.37 9.09 7.57 7.8 0.8
Kotak Bond - Short Term Regular Fund  11,559.57 2.17 4.29 9.08 7.32 7.79 1.13
DEBT: DYNAMIC BOND

13.9% Multi Cap cash holdings
SBI Dynamic Bond Fund
IDFC Dynamic Bond Fund



1,308.83
2,077.51
3.54
3.84
5.9
5.65
13.87
12.7
8.11
7.68
8.67
8.21
1.67
1.79 THE 1-YEAR
3
Axis Dynamic Bond Fund 420.49 3.84 6.25 12.64 7.99 8.35 0.65 RETURN OF
SBI DYNAMIC 24.48
Quantum Dynamic Bond Fund  60.30 3.7 6 11.97 7.87 — 0.68
Edelweiss Dynamic Bond Fund  43.30 2.97 4.56 11.11 7.94 7.57 1.04
BOND FUND IS
THE HIGH-
ICICI Prudential All Seasons Bond Fund  3,188.69 3.01 5.89 10.94 7.94 8.77 1.32 EST IN ITS
PGIM India Dynamic Bond Fund  46.89 2.52 4.57 10.85 7.9 8.3 1.75 CATEGORY. 11.05 10.59
Kotak Dynamic Bond Fund  1,204.89 2.72 4.82 10.73 8.58 9.05 1.08 8.62 8.18
DEBT: CORPORATE BOND
HDFC Corporate Bond Fund  13,389.16 2.73 4.8 10.02 8.16 8.56 0.5
Aditya Birla Sun Life Corporate Bond Fund  17,605.87 2.19 4.23 9.17 7.91 8.37 0.45 ICICI Parag IIFL Tata Franklin
ICICI Prudential Corporate Bond Fund  13,243.33 1.92 4.24 9.03 7.58 8.14 0.56 Prudential Parikh Focused Focused India
Expense as on 29 February 2020
Kotak Corporate Bond Fund  4,839.91 1.9 3.99 8.92 7.99 8.21 0.6 Returns as on 1 April 2020
Focused Long Term Equity Equity Focused
Franklin India Corporate Debt Fund  1,512.27 1.71 4.4 8.02 7.98 8.12 0.85 Equity Equity Equity
Assets as on 29 February 2020
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Rating as on 31 March 2020
Did not find your fund here? % OF ASSETS AS ON 29 FEBRUARY 2020
Log on to www.wealth.economictimes.com for an exhaustive list.
Methodology
The Top 100 includes only those funds that have a 5- or
4-star rating from Value Research. The rating is determined
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
4 Debt: Corporate Bond
by subtracting a fund’s risk score from its return score.
The result is assigned stars according to the following
Multi-cap: Mostly invested in large- and mid-cap
companies. FUND 0.50 0.51 0.52
distribution:
  Top 10%

Mid-cap: Mostly invested in mid-cap companies.
Small-cap: Mostly invested in small-cap companies.
RAISER 0.45 0.46
  Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
69.2%
  Middle 35% in ETW Funds International: More than 65% of assets invested abroad.
  Next 22.5% 100 listing) Income: Average maturity varies according to objective.
  Bottom 10% Gilt: Medium- and long-term; invest in gilt securities.
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more of the industry AUM (as
less than three years old have been excluded. This ensures than 60%. % of GDP) belonged to
that all the funds have existed long enough to be tracked for ABSL Cor- Sundar- HDFC DSP Cor- UTI Cor-
consistency of performance. Given the focus on long-term
Debt-oriented aggressive: Average equity exposure Maharashtra in February
between 25-60%. porate am Cor- Cor- porate porate
investing, liquid funds, short-term funds and FMPs are not 2020. This was the highest Bond porate porate Bond Bond
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure among all states. Bond Bond
the growth option of funds that reinvest returns instead of less than 25%.
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity
and derivatives. % AS ON 29 FEB 2020
Despite these rigorous filters, the list includes 2/3 funds of % EXPENSE RATIO IS CHARGED ANNUALLY.
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per METHODOLOGY OF TOP 100 FUNDS ON
The fund categories are: market conditions. WWW.WEALTH.ECONOMICTIMES.COM
loans and deposits
LOANS & DEPOSITS

ET WEALTH collaborates with ETIG to provide a comprehensive ready reckoner of loans and fixed-income
instruments. Don’t miss the information on investments for senior citizens and a simplified EMI calculator.
Top five bank FDs

TENURE: 1 YEAR
Interest rate (%)
compounded qtrly
What `10,000
will grow to
HOME LOAN RATES
With effect from 1 October, all banks have made the transition to external
Ujjivan Small Finance Bank 8.00 10,824
benchmarks for pricing new home loans. Most banks have picked the RBI
IDFC First Bank 7.25 10,745
RBL Bank 7.20 10,740
repo rate as the external benchmark.
Indusind Bank
AU Small Finance Bank
7.00
7.00
10,719
10,719
REPO RATE: 4.40%
FOR SALARIED FOR SELF EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
Ujjivan Small Finance Bank 8.00 11,717 SBI Term Loan 7.05 7.20 7.55 7.35 7.70 1 Apr 20
AU Small Finance Bank 7.50 11,602
Bank of India 7.25 7.25 7.55 7.25 8.15 1 Apr 20
DCB Bank 7.30 11,557
Central Bank of India 7.25 7.25 7.35 7.25 7.35 1 Apr 20
RBL Bank 7.25 11,545 SBI Max Gain 7.05 7.45 7.80 7.60 7.95 1 Apr 20
TENURE: 3 YEARS Indian Bank 7.20 7.55 7.85 7.60 7.90 1 Apr 20
AU Small Finance Bank 7.77 12,597 Union Bank of India 7.20 8.05 8.35 8.05 8.35 1 Apr 20
DCB Bank 7.60 12,534 Karur Vysya Bank 7.60 8.20 10.05 8.20 10.05 1 Apr 20
Bank of Baroda 7.25 8.25 8.50 8.25 8.50 28 Mar 20
UCO Bank 8.05 8.05 8.15 8.05 8.15 5 Oct 19
RBL Bank 7.00 12,314
Indian Overseas Bank 8.00 8.20 8.45 8.20 8.45 7 Feb 20
TENURE: 5 YEARS
DCB Bank 7.50 14,499 IDBI Bank 8.25 8.25 8.60 8.45 9.00 16 Jan 20
AU Small Finance Bank 7.50 14,499 Federal Bank 8.55 8.55 8.65 8.60 8.70 16 Dec 19
IDFC First Bank 7.25 14,323 Punjab National Bank 7.80 7.90 8.70 7.90 8.70 5 Oct 19
RBL Bank 7.15 14,252
Bank of Maharashtra 8.20 8.20 9.00 8.45 9.35 12 Feb 20
Kotak Mahindra Bank 8.60 8.20 9.15 8.30 9.25 16 Jan 20
Axis Bank 8.55 8.55 9.20 8.65 9.40 2 Nov 19
ICICI Bank 8.25 8.25 9.25 8.50 9.35 4 Oct 19
Top five senior citizen bank FDs
Interest rate (%) What `10,000
Lakshmi Vilas Bank 7.85 9.70 9.70 9.70 9.70 16 Jan 20
TENURE: 1 YEAR compounded qtrly will grow to
Dhanlaxmi Bank 7.93 8.85 9.95 8.85 9.95 1 Mar 20
Canara Bank 8.05 8.05 10.05 8.05 10.05 7 Jan 20
RBL Bank 7.90 10,814
IDFC First Bank 7.75 10,798 South Indian Bank 8.80 8.80 10.05 8.80 10.05 1 Jan 20
DCB Bank 7.55 10,777
Indusind Bank 7.50 10,771
TENURE: 2 YEARS Your EMI for a loan of `1 lakh

Ujjivan Small Finance Bank 8.50 11,832 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
@ 8%
RBL Bank 7.95 11,705 2,028 1,213 956 836 772
DCB Bank 7.80 11,671 @ 10%
2,125 1,322 1,075 965 909
IDFC First Bank 7.75 11,659 @ 12%
TENURE: 3 YEARS @ 15% 2,224 1,435 1,200 1,101 1,053
DCB Bank 8.10 12,720
2,379 1,613 1,400 1,317 1,281
Ujjivan Small Finance Bank 8.00 12,682 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
RBL Bank 7.70 12,571
TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits
DCB Bank 8.00 14,859

Sukanya Samriddhi Yojana 7.60 250 1.50 lakh One account per girl child 80C
RBL Bank 7.85 14,751 Senior Citizens' Savings Scheme 7.40 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
Public Provident Fund 7.10 500 1.50 lakh p.a. 15-year tenure, tax-free returns 80C
Kisan Vikas Patra 6.90 1,000 No limit Can be encashed after 2.5 years Nil
Top five tax-saving bank FDs 5-year NSC VIII Issue 6.80 100 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to Time deposit 5.50-6.70 200 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.50 14,499
Single 4.5 lakh 5-year tenure, monthly returns Nil
AU Small Finance Bank 7.50 14,499 Post Office Monthly Income
6.60 1,500
Scheme
IDFC First Bank 7.25 14,323 Joint 9 lakh 5-year tenure, monthly returns Nil
RBL Bank 7.15 14,252
Recurring deposits 5.80 10 No limit 5-year tenure Nil
Savings account 4.00 20 No limit `10,000 interest tax-free Nil
ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
([email protected]) Data as on 02 April 2020 # Benefit available only for 5-year deposit
market watch
HOW YOUR INVESTMENTS

PERFORMED THIS WEEK
This weekly tracker keeps you updated on the benchmark stock index, bond yields, forex movements and WPI inflation.
It also tracks the changes in the past one year to give investors an idea how their investments performed over a longer period.
Sensex 10-yr yield (%) USD-INR WPI (%)

3.24 2.26
38,871 28,265 7.27 6.14 69.12 75.38 0.33
3.10
1 APR 2019 2 APR 2019 2 APR 2019
3.10
1 APR 2020 31 MAR 2020 31 MAR 2020 2.93 2.79 1.17 2.76
` PER DOLL AR 2.02 0.00
1.17
0.58
Feb '19
May '19
Jan '20
Nov '19
Mar '19
Aug '19
Feb '20
Dec '19
Apr '19
Sep '19
Jun '19
Oct '19
Jul '19
CHANGE
X 1 WEEK -0.95% 1 WEEK -16 (bps) 1 WEEK -1.01% LATEST 2.26
X 1 YEAR -27.29% 1 YEAR -113.30 (bps) 1 YEAR 9.06% 1-YEAR AVG 1.96
Equity markets continued to remain Bond yields fell after RBI took measures Rupee movements are turning erratic due to WPI inflation eased to 2.26%
volatile due to the rising coronavirus cases to boost liquidity including a cut in the a mix of factors like lower oil prices, increased in February 2020 due to a decline
in India and apprehensions regarding the repo rate by 75 basis points and cash demand of the US dollars and foreign fund in food articles that include
sharp slowdown in GDP growth. reserve ratio (CRR) by 100 basis points. outflows from the equity and debt market. fruits and vegetables.
PENNY STOCKS UPDATE

Penny stocks as a recommended non-traditional investment? Not exactly. ET WEALTH
neither has the expertise nor does it recommend investing in such stocks. But since the
relatively ‘low’ cost of investment attracts some investors to penny stocks, we provide
a weekly snapshot of this most volatile and uncertain type of stock investing.
Top price gainers Top volume gainers

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR)
Welcon International 7.84 27.07 92.63 0.07 2,297.66 15.92 Anubhav Infrastructure 8.85 7.40 12.74 0.22 97,989.09 18.95
Gujarat State Fin. Corp. 1.44 14.29 69.41 0.04 258.71 12.83 Orient Green Power Co. 1.52 16.92 -20.00 12.59 8,021.07 114.11
Angel Fibers 7.30 -0.82 38.78 0.08 -91.59 18.25 Rollatainers 1.07 -17.05 -37.06 2.79 4,860.04 26.76
JCT 0.94 70.91 32.39 2.16 69.07 78.81 Welcon International 7.84 27.07 92.63 0.07 2,297.66 15.92
Gold Line Int. Finvest 0.25 19.05 31.58 0.11 -3.59 13.03 Shree Global Tradefin 1.24 4.20 8.77 0.07 1,169.89 141.30
BAG Films & Media 1.81 3.43 21.48 0.25 44.16 35.82 Vascon Engineers 8.22 22.32 -39.11 4.34 1,067.61 146.43
Parvati Sweetners 1.46 4.29 17.74 0.02 -15.15 10.35 KSS 0.19 0.00 0.00 0.27 888.88 39.51
Syncom Formulations 0.74 21.31 13.85 16.73 172.74 57.77 Siti Networks 0.55 1.85 -30.38 8.03 852.07 47.97
Anubhav Infrastructure 8.85 7.40 12.74 0.22 97,989.09 18.95 Manaksia Coated Metals 3.80 2.70 -8.43 0.08 838.99 24.89
Reliance Naval & Engin. 1.51 -9.58 11.85 6.24 -17.05 111.38 Lancor Holdings 3.02 17.05 -29.44 0.50 782.92 12.23
Top price losers Top volume losers

Alok Industries 4.11 -14.02 -67.48 8.49 163.14 566.07 Unitech 1.21 -9.02 -58.13 5.80 -90.44 316.57
Unitech 1.21 -9.02 -58.13 5.80 -90.44 316.57 Reliance Home Finance 0.74 -7.50 -42.64 2.17 -85.95 35.89
Dish TV (I) 3.98 -16.03 -50.86 11.62 34.58 732.84 Tata Teleservices 1.88 3.30 -25.40 1.96 -71.29 367.53
Hindustan Const. Co. 3.95 4.50 -49.75 5.86 252.26 597.64 Bil Energy Systems 0.51 10.87 -5.56 1.45 -61.15 10.78
SREI Infra. Finance 3.93 -5.98 -48.83 3.81 435.02 197.71 Dewan Housing Fin. Corp 8.62 -5.17 -43.36 1.73 -55.27 270.51
Vikas Multicorp 1.09 -20.44 -46.83 2.60 11.84 72.32 GTL Infrastructure 0.23 0.00 -36.11 10.31 -53.11 283.34
Subex 3.15 2.94 -46.34 7.23 -45.07 177.03 Jaiprakash Associates 1.12 -0.88 -38.12 13.33 -52.21 272.43
Future Consumer 6.66 -22.29 -46.29 3.20 86.39 1,279.46 Sanwaria Consumer 1.08 17.39 -18.80 4.16 -52.10 79.50
Vikas Ecotech 1.06 -4.50 -43.92 1.61 100.19 32.39 Mercator 0.54 22.73 -19.40 1.76 -49.80 16.34
Dewan Housing Fin. Corp 8.62 -5.17 -43.36 1.73 -55.27 270.51 Vikas WSP 4.27 -3.39 -38.38 1.66 -49.54 87.28
THE STOCKS HAVE BEEN SELECTED USING THE FOLLOWING FILTERS: PRICE LESS THAN `10, ONE-MONTH AVERAGE VOLUME GREATER THAN OR EQUAL TO 1 LAKH AND MARKET
CAPITALISATION GREATER THAN OR EQUAL TO `10 CRORE. DATA AS ON 02 APRIL 2020. SOURCE: ETIG DATABASE AND BLOOMBERG.
technology check
GET DEVICES READY FOR

LIFE AFTER LOCKDOWN
In the midst of the lockdown, you are probably using your computer and smartphone much more than usual,
loading them with random data. Karan Bajaj tells you how to clean up your devices for more efficiency.
ON YOUR
SMARTPHONE
ON YOUR
COMPUTER
SORT YOUR GALLERY

Your phone gallery comprises not just photos shot
using the camera but also photos shared via apps such
as WhatsApp, Telegram, etc., screenshots as well as any
other image files stored by third-party apps. To quickly
sort out your photos, we recommend trying out Google
Photos or A+ Gallery. These apps are great at sorting
pictures in albums as well as for search, which in turn
makes it easy to delete unwanted photos and videos.
SORT YOUR CLEAN HARD GET TO INBOX

MEDIA DRIVES ZERO
Most of us tend to copy a lot of When one is sitting at If you have been too lazy to clean
content on our computers and then home and trying to pass up the clutter that is your inbox,
forget about it. Your computer might time on the Internet, one then now is an excellent time to
be holding videos, photos and audio tends to download various start. Start by assessing your inbox
in various folders, and you would things or install apps to try quickly. The first thing you should
not even know that it's there. We out. This leads to the hard- get rid of are the social media
recommend using free analyzing
WinDirStat (https://windirstat.net) to
drive space being used
up, which in turn can be a
notifications. Second, get rid of
unwanted subscriptions/newsletter
MESSAGE INBOX CLEANING
scan your computer hard-drive and reason for slow computer using tools such as CleanFox Other than photos and videos, the other thing cluttering
find out which folders are taking the performance. To clean the (www.cleanfox.io) or Subscription up your smartphone are chats and groups in various
most space. You can even view files hard-drive, you can either Zero (https://subscriptionzero.com). instant messaging apps such as WhatsApp. We
by their extension to help find the choose to do it manually After doing these steps, you should recommend that you give some time to your commonly
type of content you are looking for that is a time-consuming be left with essential emails only, used apps, especially WhatsApp. Delete your old chats
easily. Once you know their location, process or use softwares and you can quickly sort them by (any chat older than two months should be deleted
you can easily find relevant data like CCleaner (www. creating labels and marking them. In ideally) and exit plus delete all WhatsApp groups that are
under the video, photos or audio tags ccleaner.com) or BleachBit case you want to use an app to sort inactive or not relevant for you. This will make it easier
and move them to a folder of your (www.bleachbit.org). out emails, you can try our Sortd to browse through or search anything in the app as well
choice for sorting. (www.sortd.com). as get rid of images/videos from the chat/group instantly.
mutual funds
Don’t invest in equity funds PORTFOLIO

DOCTOR
for short-term goals Not many
ARINDAM
investors
Sundeep Madan invests in equity funds for multiple goals. Here’s what the doctor has advised him: know
1 2 3 4 whether
FIRST SON’S EDUCATION: SECOND SON’S EDUCATION: BUY NEW CAR: FOREIGN HOLIDAY:
they have
GOALS
1 year 5 years 2 years 1 year invested in

PRESENT COST: `20 lakh PRESENT COST: `20 lakh PRESENT COST: `16 lakh PRESENT COST: `8 lakh the right
FUTURE COST: `22 lakh TOTAL COST: `32 lakh FUTURE COST: `18.3 lakh FUTURE COST: `8.6 lakh funds and if their
fund portfolio is on
PORTFOLIO FUND NAME AMOUNT EXISTING RECOMMENDED ACTION NEW SIP track. The Portfolio
CHECK-UP INVESTED (`) SIP (`) (`)
Doctor assesses the
Investing in equity Start recurring deposit or SIP in debt fund of `40,000
Recurring deposit 0 0 per month. Take a loan for the balance requirement. 40,000
funds for the past 3-4 health of the fund
1 If this hybrid fund recovers by next year, use for
years. HDFC Children's Gift 4,69,371 16,000 son's education. Else hold for second son's goal. 16,000 portfolio, examines the
Most goals are very schemes and their
near. But money locked SBI Multicap 1,10,853 0 Hold this stable multi-cap fund. 0
up in equity funds. suitability with regard to
Continue SIPs in this stable multi-cap fund. Hike
Take loans for goals as Kotak Standard Multicap 1,79,000 2,500 amount by 10% every year. 2,500 the goals and, if
redeeming funds now 2 Canara Robeco Emerging Continue SIPs in this outstanding large and mid-cap required, recommends
will be a mistake. 1,50,500 5,000 fund. Hike amount by 10% every year. 5,000
Equities corrective measures. The
Started SIPs in four Continue SIPs in this hybrid fund. Hike amount by
new funds last month. HDFC Children's Gift 4,52,978 16,000 10% every year. 16,000 advice given is based on
All in deep losses.
Mirae Asset Large Cap 4,600 5,000 0
the performance of the
Note from funds, the risk profile of
the doctor Axis Focused 25 3,200 4,000 These are good funds but not suitable for short term 0 the investor as well as
goals. Stop SIPs and switch to a short-term debt fund
Invest in equities only 3 or start a recurring deposit of `20,000 for two years. his financial goals.
if goal is more than L&T Midcap 2,600 3,000 Take loan for the shortfall. 0
5-6 years away.
Use debt funds and SBI Small Cap 4,560 5,000 0
bank deposits to save
Assumptions used
for short-term goals. 4 Nippon India Retirement 2,75,600 10,000
This multi-cap fund has underperformed. In any case,
don't invest in equity instruments for short-term 0
in the calculations
goals.
Review investments INFLATION
The goals can be reached using the mutual
and rebalance at least TOTAL `16,53,262 `66,500 funds marked in the same colour. `79,500 Education For all
once in a year. expenses other goals
10% 7%
Scale down goals or hike monthly investments Equity funds
RETURNS
Debt options
Varun Gupta is saving for his child’s education and retirement. Here’s what the doctor has advised:
1 2 3 12% 8%
PAY OFF HOME LOAN: CHILD’S EDUCATION: 12 yrs RETIREMENT INCOME: 22 yrs
PORTFOLIO
GOALS
10 yrs CURRENT COST: `24 lakh CURRENT COST: `95 lakh

CHECK-UP
PRESENT COST: `75 lakh (`30,000 per month) Investing in equity PORTFOLIOS
FUTURE COST:
funds for past two ANALYSED BY
FUTURE COST: NA `75 lakh CORPUS REQUIRED: `4.2 cr
years. RAJ KHOSLA,
Goals are very Managing Director
AMOUNT EXISTING and Founder,
FUND NAME RECOMMENDED ACTION ambitious and require
INVESTED (`) SIP (`) MyMoneyMantra
big increase in
Continue SIPs in this stable multi-cap fund and hike by 10% monthly investments.
Kotak Standard Multicap 1,11,810 4,000 every year.
Increase SIPs to `5,000 in this outperforming large-cap

SIPs will also have to
be increased by 10%
WRITE
2 Mirae Asset Large Cap 75,507 3,000 fund and hike by 10% every year. TO US
every year.
HDFC Hybrid Equity 66,045 2,500
Fund has slipped but holds promise. Increase SIPs to Also invests in FOR HELP
`4,000 and hike by 10% every year.
equities to pay off If you want your portfolio examined,
Increase SIPs to `5,000 in this stable small-cap fund and home loan. Should write to [email protected]
Nippon Small Cap 24,939 1,000 hike by 10% every year. with “Portfolio Doctor” as the subject.
increase EMI amount Mention the following information:
Start SIPs of `6,000 in this outperforming large and mid- instead.
Mirae Asset Emerging Bluechip 0 0  Names of the funds you hold.
cap fund. Hike amount by 10% every year. Review investments  Current value of the investment.
3 and rebalance at least  If you have SIPs running in any
NPS 1,48,830 4,000 once in a year. of them.
Keep contributing and hike amount by 5% every year. Do  The financial goals for which you
not withdraw before retirement. Reduce risk when goal invested.
Provident Fund 1,35,000 5,000 is near so that you  How much you need for each
financial goal.
don’t miss the target.
TOTAL `5,62,131 `19,500  How far away is each goal.
your feedback & more...
Readers’ response, online and in print, to ET Wealth stories has been enlightening.
We pick some that add information and perspective to our articles from previous issues.
The story, ‘Are your balanced the market crash work for you’.
advantage fund living up to their If the fixed deposit rates keep falling,
promise’, was timely. However, the
story could have given more concrete
Nothing is nobody will spend or invest. Indians
should be made to feel financially
advice as to whether one should opt for
such funds now or not. A new investor
without risks secure. There is no social security
like in developed countries here.
like me will need more guidance about This refers to the cover story, ‘The best After all, the fundamental of business
these things. debt funds’. All investments are risky. is sales and consumption of products.
Ratna Mirchandani Your investment strategy should be Rudra
guided by your risk appetite. If you
This refers to the story, ‘Despite invest in mutual funds, remember the I was shocked to read the story, ‘Covid
hiccups, don’t ditch NPS’. As this is a fund manager will take the risk he wants 19 online scams’. What kind of people
long-term investment, one should not to take and not what you would want for would think of cheating and conning
exit it because of the current crisis. your money. And you will be charged for others at times like these? However,
With interest rates of fixed return this too. now that we know such people are
products like PPF also shaved off, there Jyoti Narang around, we too need to be wary and not
is more reason to stay invested in the be gullible enough to fall for such plots.
NPS now. Paras Bora
Atul Bhandari
not their fault that they could not make it, shop for quality stocks’, only reinforced the Clarification
Enjoyed Uma Shashikant’s column, so it would not be fair to punish them by idea that quality never goes out of fashion. In the Wealth Whines page dated 30
‘Do your bit to help others now’. withholding pay. If anything, they need No matter how badly markets fall, quality March, answers to all queries have
Exactly what each income group the money now more than ever now. So go stocks will always the weather the storm been inadvertently attributed to Raj
can do to help the less priveledged is out of your way to help the poor once the better and bounce back steadily because Lakhotia, Founder, Dil Se Will. Only
very well explained. My request to all lockdown is over. these are fundamentally strong companies. the first query has been answered by
households would be to not cut pay Rukmini Vasu Giriraj Sharma Lakhotia, while the other two have
of their helps who could not come to been answered by Riju Mehta. The
work because of the lockdown. It is The story, ‘Current slump a good window to This is in reference to the article, ‘Make error is regretted.
REALTY Thriving micro market in the capital

HOT SPOT Good social infrastructure and connectivity to key commercial areas add to value.
LOCALITY SNAPSHOT SUPPLY BY BHK
ROHINI, DELHI 1 BHK 12%

Big and established micro-market largely comprising builder floors, group housing societies, DDA flats, etc
2 BHK 37%
Situated in North-West Delhi, it is home to good social infra and shares proximity with key commercial hubs
Well-connected to key job and retail hubs of Netaji Subhash Place and Connaught Place, among others
3 BHK 49%
Excellent infra namely DPS, GD Goenka, Dr. Baba Saheb Ambedkar Hospital, Metro Walk, Kings Mall, etc
Extensive connectivity through Bhagwan Mahavir Marg, Outer Ring Road, Red & Yellow Metro Lines 4 BHK 2%
PRICE RANGE LOCALITY VALUES Consumer preference by
Sector-24
`6,500-17,500 per sq ft budget segment (`)
Below 25 lakh
Sector-13 Rohini Sector-9 10%
25-50 lakh
Price (`/sqft): 10,400-17,500 21% 50-75 lakh
Sector-9 22% 75 lakh-1 crore

Rent (`/month): 22,500-35,000 12%
1-1.25 crore
Airport: 33 km
17% 18% Above 1.25 crore
Railway Station: Rohini Sector-13
21 km
Price (`/sqft): 10,200-16,400 Consumer preference by
Inner Ring covered area (sq ft)
Road: 7 km Rent (`/month): 21,000-31,000
1%
4 BHK & Below 750
1 BHK 2 BHK 3 BHK above
390 sq ft 700 sq ft 970 sq ft 1,460 sq ft Rohini Sector-24 15% 750-1,000
26%32% 1,000-1,250
`26
lakh (avg)
`65
lakh (avg)
`93
lakh (avg)
1.66
`crore (avg)
Price (`/sqft): 6,500-10,600 23% 1,250-1,500
Rent (`/month): 20,000-31,000 35% Above 1,500
Schools 12+ Hospitals 10+ Restaurants 14+ Banks 10+ Grocery Stores 12+ Petrol Pumps 10+ In dia’s No. 1 P ropert y Sit e
The Economic Times Wealth is available at an invitation price of `8/issue. To book your copy, contact your newspaper vendor or call 022-39898090; Email: [email protected]; SMS ETWS to 58888
The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data PUBLISHED FOR THE PROPRIETORS, Bennett, Coleman & Co Ltd by R.Krishnamurthy at The Times of India Building, Dr. D.N. Road, Mumbai 400001. Tel. No.: (022) 6635 3535,
before publication. In spite of this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this 2273 3535. Fax: (022) 2273 2544 and printed by him at (1) The Times of India Suburban Press, Akurli Road, Western Express Highway, Kandivli (E), Mumbai-400101 . Tel. No.:
newspaper, The Economic Times Wealth will not be held responsible or liable. The content hereof does not constitute any (022) 28872324, 28872931, Fax: (022) 28874231. (2) The Times of India Print City, Plot No.4, T.T.C. Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai-400708. Tel No.:
form of advice, recommendation or arrangement by the newspaper. The Economic Times Wealth will not be liable for any (022) 2760 9999, Fax: (022) 2760 5275.
direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers are EDITOR: Babar Zaidi (Responsible for selection of news under PRB Act). © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights
recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions. reserved. RNI No.: MAHENG/2014/57046. VOLUME 07 NO. 14

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THE ECONOMIC TIMES HOW TO START

Rejig your SIP Tips to grow What should be Get devices

WE HELP YOU CHOOSE THE BEST .7m

All investors have lost money in 2020

“This is the time to How much Over 60% loss

the wait and watch mode. They are expect-

How advisers influence Exit completely now (even

Young people are staying away from equities

VIK A AS SACHDEVA 80% 94% 94% 93% 94%

Interested, but don’t

those who never Will you

invested before investing

Rejig your SIP strategy now

Special measures needed to

mysteries less automatic as the rates on such savings

These interest payments

Even though the monetary policy logic

Do you benefit from the moratorium?

Small savings rate cut might hurt your goals

quidity injection. But the most significant

Understand confidence interval

proportions) and defines the lower deviation, which can be managed

How to start investing in mutual funds

The first step and

INVESTOR SERVICE CENTRES (ISC)

 In the first case,  Upload/  In the biometric

details to register. required.

Help the migrant find a home

Managing risk in a PAPER WORK

strategy. Should he take the risk with

to keep a sufficient number of

smart things to know Short selling :: Points to note

LAGGARDS & LEADERS

Value Research Net Assets

THE 3-YEAR -1.72 2.19

THE 3-YEAR -2.53 3.78

EQUITY: MID CAP

EQUITY: VALUE ORIENTED -13.61 -8.43

ETW FUNDS 100 Top 5 SIPs

DEBT: MEDIUM- TO LONG-TERM 3-year SWP returns

DEBT: DYNAMIC BOND

  Top 10%

LOANS & DEPOSITS

Top five bank FDs

TENURE: 2 YEARS Your EMI for a loan of `1 lakh

DCB Bank 8.00 14,859

HOW YOUR INVESTMENTS

Sensex 10-yr yield (%) USD-INR WPI (%)

PENNY STOCKS UPDATE

Top price gainers Top volume gainers

Top price losers Top volume losers

GET DEVICES READY FOR

SORT YOUR GALLERY

SORT YOUR CLEAN HARD GET TO INBOX

Don’t invest in equity funds PORTFOLIO

1 year 5 years 2 years 1 year invested in

10 yrs CURRENT COST: `24 lakh CURRENT COST: `95 lakh

Increase SIPs to `5,000 in this outperforming large-cap

REALTY Thriving micro market in the capital