Category: Investing

Top Alcohol Stocks In India

Partying with friends without alcohol is like dancing without music, isn’t it! Jokes apart, have you ever thought of investing in alcohol stocks. Yes, you heard it right! Raise your glass to your success of investment and have a look on some of the top liquor stocks in India.

India’s alcohol market is a complex and dynamic landscape that offers distinct flavours and fulfils diverse consumer preferences.

India’s alcohol industry is expected to reach $64 billion over the next five years according to a report by ISWAI (International Spirits and Wines Association of India). Let us delve deeper and analyse India’s alcohol industry.

Alcohol Market Overview

India boasts the third-largest liquor market by volume, generating over $35 billion annually and is projected to grow at a CAGR (compounded annual growth rate) of 7% for the next decade. Factors like urbanisation, rising disposable income and changing social lives will drive the growth. Further, we produce over 48% of all whisky in the world.

Did you know?

In Dec 2023, Indian whiskey “RAMPUR” wins the best world whisky award in the prestigious John Barleycorn Awards!

Market Segment

Indian-Made-Foreign-liquor (IMFL)

IMFL is the official term that is used in India and refers to all types of liquor in the country except indigenous alcoholic beverages. It includes a wide range of beverages such as whiskey, rum, vodka gin, etc. IMFL signifies a historical difference from traditional Indian drinks and offers from affordable value brands to premium labels.

Indian-made-Indian Liquor (IMIL)

It is also a category of alcoholic beverages produced in India. The term encloses several locally produced alcoholic drinks using age-old recipes and ingredients such as grains, flowers, and fruits. IMIL is widely known as “Desi Daru”. The alcohol content in such drinks is around 30%. This category is often cheaper than commercially produced IMFL and can be easily accessed by the wider population.

Beer

This segment comprises all the beers produced in the economy and has witnessed rapid growth in recent years specifically among urban millennials and professionals.

Wine

The wine category in India is experiencing steady and consistent growth. The segment is dominated by domestic wines with 90% domestically produced and consumed. Indian wines are considered more affordable than imported wines and are expected to grow at a CAGR of 10.7% by the year 2027.

Top Stocks Companies of Alcohol in India

In India, we have more than 15 listed companies on NSE and BSE. If you’re looking for a comprehensive liquor stock list, let’s discuss some of the top companies:

Read Also: Top Real Estate Stocks In India

1. United Spirits

United Spirits Limited, a subsidiary of Diageo, is the largest alcohol company in India by market capitalisation. Further, it is the second largest alcohol company in the world by volume. It produces a wide range of products which houses an outstanding collection of premium brands, including but not limited to: Royal Challenge, McDowells, Black Dog, Johnnie Walker, Antiquity, etc. Currently, they have over 37 manufacturing facilities in India and boast a strong distribution network.

2. Sula Vineyards

Sula Vineyards is a leading wine producer in India. The company was founded in the year 1999 by Rajeev Samant in Nashik, Maharashtra. Sula’s distribution network covers India and several international markets. Sula Vineyards produces a diverse range of wines including red, white, rose, sparkling and dessert wines. Sula Vineyards is well-positioned for continued success.

3. United Breweries

The company was bought by the late Mr Vittal Mallya in 1947. Since then, it has consistently grown and never looked back. United Breweries is considered the largest manufacturer in India with over 60% market share in the beer market and is headquartered in Bangalore. The company was established in the year 1915 with five breweries in south India. The company owns numerous iconic brands like Kingfisher, McDowell, Royal Stag, etc.

4. Radico Khaitan

Radico Khaitan is a top Indian manufacturer of Indian-Made-Foreign-Liquor (IMFL). It was founded in the year 1943 as Rampur Distillery & Chemical Company Limited. It has now become a major bulk spirits supplier and bottler, now have over fifteen organically grown brands. Khaitan’s portfolio includes a wide range of IMFL products such as Black Magic, 8 PM, Magic Moments, Rampur, etc.

Radico Khaitan is the fourth largest company in India with a strong presence in North India and exports its products to over 30 countries. It has also created an international division, namely Radico International in the year 2003 and introduced brands such as Beck’s Beer and wines from E&J Gallo in the Indian alcohol market.

5. Tilaknagar Industries

Tialknagar Industries is a prominent Indian liquor company and is well-recognised for its assorted portfolio of IMFL and extra-neutral alcohol (ENA). The company was established in the year 1933 under the leadership of the Dahanukar family. Their journey began with the Maharashtra Sugar Mills and the company still holds a rich history in the Indian liquor market.

Tilaknagar Industries offers a wide range of products such as brandy, whiskey, vodka, gin, rum etc. The company has a strong distribution network and its products are also exported to international markets in East & South Asia, Europe, Africa, etc.

6. Globus Spirits

Globus Spirits was established in the year 1993 as Globus Agronics Limited. Today Globus Spirits is one of the largest manufacturers and sellers of IMFL in India. The company offers a variety of brands that cater the consumer preferences and include premium, value, and bulk alcohol. The premium segment includes GR8 Times, White Lace, Napoleon, Governors’ Reserve Blue etc. Value segment includes Winner Gold, Marvel Blue, Golden Grape, etc. The bulk alcohol segment includes Grain Neutral Alcohol, Fusel, Bioethanol etc. Globus Spirits operates four fully integrated plants across West Bengal, Bihar, Haryana, and Rajasthan.

7. Som Distilleries and Breweries

Som Distilleries & Breweries Ltd. (SDBL) is a prominent integrated AlcoBev, Bhopal-based manufacturer. The company was founded in the year 1993 and has established itself as a major player in the Central Indian Market, especially in the segment of beer and whiskey. Some of the widely sold products include beers like Hunter Strong Premium beer, Woodpecker Wheat, etc. And whiskeys like Pentagon, Milestone 100, etc. Vodkas like White Fox, rums, and other ready-to-drink beverages.

Factors Affecting Liquor Stocks

Several factors impact the performance of the liquor stocks. Let us look at some of the key factors that affect the performance of the liquor stocks.

Inflation – Rising inflation can increase the production cost of the alcohol companies squeezing the profit margins and stock prices.
Taxation & pricing – Liquor stocks are sensitive to changes in taxation policy. Higher taxes can lead to increased costs for companies and can discourage consumption.
Economic Growth – Strong economic growth of the economy results in increased disposable income in the hands of consumers and leads to a sudden rise in spending on discretionary items like alcohol.
Regulatory Procedures – Complex licensing & regulatory procedures can be a hurdle for liquor companies thereby increasing the operational costs. And negatively affecting their profitability.
Consumer Trends – Shifts in consumer preferences with people trying to adopt a healthy lifestyle can also affect the demand and sales of liquor. Companies need to adapt to the evolving trends of consumers and produce accordingly.
Currency Exchange Rates – Companies with international operations and exporting their products to other foreign countries can be deeply affected by exchange rate fluctuations affecting both producers and importers.

Market Capitalisation and Current Price

The table below shows the current market price and market capitalisation of the above-mentioned alcohol stocks (as of 15 January 2024):

Stock	Current Market Price (INR)	Market Capitalisation (INR crs)
United Spirits	1,095	79,749
United Breweries	1,795	47,469
Radico Khaitan	1,656	22,143
Sula Vineyards	632	5,339
Tialaknagar Industries	257	4,944
Globus Spirits	821	2,364
Som Distilleries and Breweries	276	2,142

Conclusion

Each alcohol company in India comes with its own set of strengths and weaknesses. Indian liquor industry offers a wide range of products and people can choose according to their tastes and preferences.

Remember that the alcohol industry is always subject to various regulations and concerns. Taxation & Alcohol Bans can significantly affect the alcohol industry.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
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4	How Many Companies Are Listed on NSE & BSE?
5	Mukesh Ambani Companies List 2024: Mukesh Ambani Stocks

Frequently Asked Questions (FAQs)

What is the full form of IMFL?
Indian-Made-Foreign-liquor.
Mention the top alcohol stocks of India.
United Breweries, Globus Spirits, Sula Vineyards, Radico Khaitan, Tilaknagar Industries, etc.
What factors can affect the alcohol stocks?
Factors like inflation, regulatory changes, currency exchange rates, economic growth, etc.
How many listed alcohol stocks are there on Indian exchanges, i.e., NSE and BSE?
As of January 2024, there are more than 15 listed alcohol stocks in India.
Who manufactures “Rampur” whiskey which recently won the best world whisky award in the prestigious John Barleycorn awards?
Rampur is manufactured by Radico Khaitan Limited.

January 18, 2024

Regular vs Direct Mutual Funds: Make The Right Investment Decision

As of December 2023, the Indian Mutual Fund Industry has over 50 lakh crores under management, and if your majority of the investments are in Mutual Funds, then it is high time that you should know the difference between Regular and Direct mutual funds.

What are Mutual Funds

Mutual funds collect money from several investors to invest in a diversified portfolio of stocks, bonds, or other assets. These funds are managed and curated by professional fund managers and hence become suitable for investors who have less time and expertise to manage their portfolios.

When you invest in mutual funds, NAV (Net asset Value) is allotted to you, which reflects the net value of the assets that are chosen by the fund manager to invest your money in. Furthermore, SIPs and lump-sum are different ways through which we can invest in mutual funds.

Benefits of Investing in Mutual Funds

Mutual funds help you diversify your capital across asset classes. This spreads your risk and mitigates the impact of losses, if any, in a single holding.
Mutual funds are managed by professional fund managers who understand market dynamics. These managers help you reduce the pressure of managing your portfolio.
Investing in mutual funds is a hassle-free way to access a diversified portfolio. You do not need to keep an eye on every asset class, such as stocks, bonds, debentures, etc.
Investment amounts for mutual funds are low as compared to directly buying stocks or bonds. You can start your investment journey today with an amount as low as INR 500.
There’s a vast array of mutual funds available catering to diverse investment goals, risk appetites, and time horizons. You can choose the fund that best aligns with your objective.

Regular Mutual Funds

Every mutual fund scheme offers two ways to invest: Direct Route and Regular route. A regular mutual fund is a type of mutual fund that is sold through intermediaries such as brokers and distributors. Investment in mutual funds through regular mode attracts a higher TER* because of commission involved.

If you’re not familiar with the word TER, it stands for Total Expense Ratio, or say, Expense Ratio. Fund Managers charge an annual fee that is charged to investors basis their total investment and the same can be analysed through TER.

Did you know?

Every mutual fund in India comes under Regulation 52 of the SEBI MF Regulations, in which the maximum TER allowed is 2.5% for the first INR 100 crores of total net assets.

Here are some interesting features to know about regular mutual funds:

Regular mutual funds carry a high expense ratio, i.e., a larger portion of your investment will be eaten up by fees, thereby reducing your returns.
The expense ratio is the cost linked with managing and operating a mutual fund. It is expressed as a percentage of the fund’s average net assets and represents the total annual expenses charged to the fund.
Regular mutual funds are a good investment option for investors who do not have enough time and knowledge to do their research on mutual funds, and are willing to pay a higher expense ratio and seek professional investment advice.
Regular mutual funds are distributed through multiple channels such as, banks, SEBI-registered financial advisory firms, and brokerage firms.

Direct Mutual Funds

Investing in Direct mutual funds means buying directly from the Asset Management Company (AMC) without the involvement of any intermediaries like brokers or distributors. The investor invests through the website of the AMC, mobile app or offline. Further, there are certain new-age brokers as well which provide the facility of investing in direct plans.

Here are some interesting features to know about direct mutual funds:

Since there are no distributors involved, direct plans have a low expense ratio.
The lower expense ratio leads to a higher net asset value (NAV).
The investor in direct mutual funds has more flexibility as compared to regular ones.
Direct mutual funds are the best fit for individuals who understand the fundamental concept of mutual funds, prefer a do-it-yourself (DIY) approach, and are willing to do thorough research and analysis.

Regular Mutual Fund vs. Direct Mutual Fund

Regular mutual funds are sold through intermediaries such as distributors and brokers, whereas direct mutual funds are bought directly from the asset management companies who manages the fund.
Unlike direct mutual funds, regular mutual fund has a high expense ratio because of intermediaries. The regular mutual fund has a lower NAV because the distributor’s commission is deducted from the invested capital whereas direct mutual funds offer a high NAV for the same investment amount because of the low expense ratio.
A higher expense ratio leads to lower returns in regular plans as compared to direct plans.
Regular mutual fund often comes with professional advice (investment advisor), while direct funds are self-directed and DIYs.

Breakdown of Expenses

The fee structure of direct and regular mutual funds is more or less the same. Let us dive deeper to know the difference.

Expense Ratio – As discussed above, this covers the fund’s operating costs such as management fees, custodian fees, and administrative expenses and is generally expressed as a percentage of the asset under management. The expense ratio for direct mutual funds is lower, and in the case of regular mutual funds expense ratio is generally higher due to the inclusion of distribution charges.
Transaction charges – Some of the direct or regular mutual funds may charge a small amount for buying or selling mutual fund units.

How to identify a Mutual fund as Direct or regular?

Suppose you want to invest in a mutual fund scheme but want to avoid seeking professional advice. Then how will you recognize whether the fund you have chosen is direct or regular? We got you covered!

The word ‘direct’ will be there in the name of the scheme.
The expense ratio of a direct scheme will always be lower than that of a regular scheme.
You can also refer to your consolidated account statement. If the plan is direct, no ARN* number will be mentioned in the account statement.

*ARN Number is the AMFI registration number issued to the mutual fund distributors and brokers.

Impact of Expense Ratio on Returns

Let’s understand this with an easy example:

Initial Investment – INR 1 lakh
Time Period – 20 years
Rate of Return – 15%
Expense Ratio – 2.5% in regular plan and 1.5% in direct plan

After 20 years, your investment:

In Direct Plan– INR 12.58 lakhs

In Regular Plan – INR 10.54 lakhs

That’s a difference of almost INR 2 lakhs, so now you can get an idea of how the difference of just 1% can significantly impact your returns over a long period.

Conclusion

If you are muddled between the two and cannot decide what to choose then Regular mutual funds are the best fit for investors who value professional guidance, are new to the world of investing, and lack financial literacy.

Direct mutual funds can be a match for investors whose primary focus is to maximise the returns and who are cost-conscious. They are experienced investors who are comfortable with independent research and decision-making and are well-versed in managing investments directly.

Eventually, the choice depends on the individual preferences and their financial goals. However, we would suggest seeking professional advice if you are not sure which fund aligns perfectly with your investment objective.

Frequently Asked Questions (FAQs)

What is the difference between direct and regular mutual funds?
Direct mutual funds are bought directly from the AMC, whereas regular funds are bought through intermediaries like brokers and distributors.
Which is better: Direct or Regular Mutual funds?
The answer to this question depends on the individual’s needs and preferences. However, direct funds come with a lower expense ratio and provide better returns than regular mutual funds.
Can I change my investment plan from a regular to a direct mutual fund?
Yes, you can change your investment plan from a regular to a direct plan by contacting the asset management company. However, there are certain things which investors should keep in mind before switching from a regular to a direct plan:The change in investment plan will be treated as a withdrawal, which means if there is any exit load, then you have to incur exit load charges if you redeem your investment before the exit load period. Further, there are tax consequences depending on the type of fund and time horizon.
Which one gives higher returns?
Generally, direct funds have a lower expense ratio as compared to regular funds because there is no intermediary involved in direct mutual funds. Therefore, effectively, direct funds provide better returns than regular funds.
How to know the expense ratio of regular and direct plans of the same scheme?
You can know the expense ratio from the factsheet of mutual funds, which is available on the website of the Asset management company.

January 18, 2024

A Guide To Fixed Deposits: Exploring Types And Interest Rates

If you are someone who is looking for hassle-free and low risk investment options, then you have come to the right place. We will uncover the Fixed Deposits – types and factors affecting them in this blog.

What is a Fixed Deposit?

Fixed deposit (FD) is a tenured deposit account provided by the Banks or NBFCs (Non-Banking Financial Companies) that provides investors with a higher interest rate than a regular savings account until the given maturity date. Most of the FDs offered by banks don’t allow premature withdrawal. However, some banks allow premature withdrawal under certain situations subject to penalties. Investment in fixed deposits is considered a risk-free investment.

Did you know?

Your bank FD is secured up to 5 lakhs by DICGC* (Deposit Insurance and Credit Guarantee Corporation).

DICGC is a specialised division of the Reserve Bank of India.

Types of Fixed Deposits

There are multiple types of Fixed Deposits available to invest:

Regular Fixed Deposits

Regular FDs are the most basic fixed deposits. You deposit a lump sum for a fixed tenure, and earn an interest at a fixed rate. These are suitable for people who are not willing to take risks and looking for a safe and secure investment option.

Senior Citizen Fixed Deposit

It is a special type of fixed deposit account that offers 0.25% to 0.50% higher interest rate than regular FDs for individuals aged 60 and above. For a steady income, you have the option to receive the interest pay-out on a regular basis.

Tax-saver Fixed Deposit

Tax-saver fixed deposits allow you to save on taxes while you earn interest on your regular investments. It comes with a lock-in period of 5 years and provides you with a tax deduction of up to INR 1.5 lakh per year under Section 80 (C) of the Income Tax Act.

Interest in tax-saver FD is paid out on regular intervals and is taxable as per your income tax slab. Tax-saver FDs can be a good option for individuals who want to save on taxes while earning a guaranteed return.

Flexi Fixed Deposit

A flexible fixed deposit is an account that offers you the features of both a savings account and an FD account. Unlike regular FDs, you can partially withdraw funds from your Flexi FD account without a penalty, but only up to a defined limit. However, this provision varies from bank to bank. You can also make additional deposits to your existing Flexi FD account to increase your returns. Flexi fixed deposits are suitable options for investors with short-term financial goals.

Cumulative Fixed Deposit

In a cumulative fixed deposit, the interest earned is not periodically paid out to the investor instead, it gets added to the principal amount. Also, the interest earned is compounded annually. Cumulative FDs offer a lump-sum payout on your maturity date.

Non-Cumulative Fixed Deposits

In a non-cumulative FD, interest is regularly paid out to the investor instead of being re-invested and compounded. This makes it a suitable option for investors who seek regular income from their investments.

Corporate FD

Corporations and Non-Banking Financial Companies (NBFCs) accumulate deposits for a fixed period from investors. These deposits, like Bank FDs, are collected at predetermined interest rates and are known as Corporate Deposits. Similar to Bank FDs, Corporate FDs offer varying investment periods and assured returns. Additionally, they offer higher interest rates as compared to Bank FDs.

Interest rates in corporate FDs are primarily based on the credit quality of the issuer. The lower the rating, the higher the credit default risk; therefore, to compensate for this, they offer higher interest rates as compared to Corporate FDs having high credit ratings.

Difference between Bank FD & Corporate FD

While investors can choose either of the FDs based on their needs, knowing the difference between the two is necessary to make an informed decision.

Below are some key points based on which you can easily distinguish between Corporate FDs and Bank FDs.

Unlike bank FDs, Corporate FDs offer a higher interest rate of 7% to 8.5%. Bank FDs offer lower interest rates depending upon the period chosen by the investor.
It is a common practice among investors to withdraw their fixed deposit amount. If you do the same thing, keep in mind that corporate FDs levy additional charges on premature withdrawals, which is comparatively higher than regular Bank FDs.
Corporate FDs are monitored by credit rating agencies like CRISIL, ICRA, etc., for compliance whereas Bank FDs are secured under the guidelines of the RBI.
Bank FDs are a safer option to invest since they are backed by RBI while corporate FDs carry higher risk, and their safety depends upon the creditworthiness of the issuing company. Further, as discussed above, bank FDs are secured up to INR 5 lakhs by DICGC.

Tips for maximising FD Returns

Choose the right kind of FD depending on your financial needs and objectives.
Compare the interest rates across banks and NBFCs to find the most competitive rates before you invest.
If you do not need regular interest income, consider choosing cumulative FDs. As explained earlier, cumulative FDs provide you the benefit of compound interest, thus resulting in higher returns.
Instead of investing your money in a single FD, consider creating a ladder by spreading your investments across FDs with different tenures and FDs mature, and reinvest them in other FDs with higher interest rates. This will help you maximise the returns generated.
Be mindful of the penalties linked with the FDs before you withdraw your invested amount.
Interest earned on FDs is taxable. Consider the tax implications and plan your investments to minimise your burden of the tax.

Factors Affecting FD Interest Rates

There are several factors that impact the Interest rate offered by Fixed Deposits. Some of the important factors are as follows:

Inflation

When inflation is high, banks generally offer high-interest rates on fixed deposits to compensate for the decline in the purchasing power of money.

Repo Rate

The repo rate is the rate at which the banks borrow money from the Reserve Bank of India (RBI). When the RBI increases the repo rate, the lending rates and fixed deposit rates of the banks also increase, and vice versa. In case of increasing interest rate scenario, consider investing in short-term investments.

Tenure

Generally, long-term FDs offer higher interest rates than short-term FDs because, in the case of long-term FDs, banks can use the FD amount invested with them for a longer horizon and can earn good returns on their investments.

How to choose the right FD

Choosing the right FD for your needs involves assessing several factors to ensure that you receive the best returns. Consider below mentioned points when choosing FD:

Analyse your goals and compare the interest rates offered by different banks and NBFCs.
Choose an investment tenure that best aligns with your financial goals.
Go for FDs issued by recognised and well-established banks. In the case of Corporate FDs, check the credit rating of the issuer to ensure a margin of safety.

Conclusion

Fixed deposits are considered a reliable investment option for investors who seek to preserve capital and want to earn returns at the same time. With assured returns and low risk, fixed deposits are a popular choice among investors of all ages.

FAQs

What is FD?
Fixed deposit (FD) is a tenured deposit account provided by banks or NBFCs (non-banking financial companies), which provides investors with a fixed interest until the given maturity date.
Are interest rates of FD similar in every bank?
Interest rates of FDs vary from bank to bank. Generally, they are in a similar range.
What is Repo Rate?
The repo rate is the rate at which the banks borrow money from the RBI.
Does the bank levy a penalty on pre-mature withdrawal of FDs?
Yes, different banks have different penalty provisions.
What is the lock-in period of Tax Saving FDs?
Tax saving FDs come with a lock-in period of 5 years from the date of deposit.

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

January 16, 2024

Decoding Credit Risk Funds In India

Do you know there is a category of mutual funds which specifically invests in junk bonds? If you’re not familiar with the word, Junk bonds, as the name suggests, are low quality bonds which have a high risk of default. But wait, high risk means high returns? Yes! To compensate for the high default risk, these bonds provide greater returns than other highly rated bonds.

If you’re new to the mutual fund world, check out our blog: Mutual Funds: Meaning, Types, Features, Benefits and How They Work.

What are credit risk funds?

Credit Risk Funds are a category of debt mutual funds that primarily invest a minimum of 65% only in AA and below-rated corporate bonds.

Did you know?

Credit Risk Funds are earlier known as “Credit Advantage Fund” or “Credit Opportunity Fund”.

How do Credit Risk Funds work?

Fund managers seek out debt funds with credit ratings that generally range from BBB to C since these bonds offer higher interest rates to compensate for the risk of default.

To diversify the risk, the fund manager will invest across multiple bonds of different companies to avoid overexposure in a single issue or company.

Checkout our blog on debt mutual funds: What is Debt Mutual Funds: Invest in the Best Debt Funds in India

Readc Also: Types of Mutual Funds in India

Advantages of Credit Risk Funds

High Yield

Credit risk funds offer investors high yields as compared to other debt funds. This can fascinate investors who wish to seek relatively higher returns.

Diversification

Investors can get exposure to high-yield bonds, although with higher risk. Further, credit risk funds have investments across multiple companies and issues such that exposure to any sector or company is significantly reduced. For risk-seeker investors, this enhances the overall portfolio performance.

Professionally Managed

Credit risk funds are managed by professional fund managers having specialisation in credit risk assessment. Their expertise helps the fund in generating good returns considering the risk profile.

Disadvantages of Credit Risk Funds

Risk of Default

Junk bonds carry a high possibility of default. The lower credit quality of the bonds increases the chance that the issuer may fail to repay the principal amount.

Volatility

Credit risk funds are highly volatile compared to other debt options, i.e., the fund’s net asset value (NAV) changes significantly which may not give positive returns to investors for a short period.

Not Suitable for all Investors

These funds are a fit for investors with a high-risk tolerance and long-term investment horizon.

Management Costs

Credit risk funds need active oversight and analysis. This leads to higher expense ratios and reduces the overall returns. Generally, the expense ratio of credit risk funds is more than other categories of debt mutual funds.

Impact of Interest Rate Changes on Credit Risk Funds

When interest rate rises, the value of existing bonds declines, since bond prices and interest rates share an inverse relationship. However, credit risk funds invest in low-quality bonds that have high coupon rates to compensate for the increased risk of default, i.e., a decline in the value of bonds may be less visible, and the higher coupon rates can still provide good returns even if the interest rates are rising.
Credit risk funds are sensitive to changes in credit spreads. Credit spread is the additional yield that investors demand for holding riskier bonds over safe and secure government bonds.

There is a thing called “Duration” in the bond universe, which is the measure of the sensitivity of price change of a bond for a change in the interest rate. The higher the duration, the more sensitive the bond is to the changes in interest rates. Investors should keep in mind the duration of the credit risk funds before investing as it can significantly impact the performance of funds in a short period.

Risks associated with Credit Risk Funds

Credit Risk

The primary risk that is involved in credit risk funds is “Credit Risk” or the “Risk of Default” by the bond issuers. Bonds with high coupon rates are more exposed to default risk and can lead to a decline in the fund’s value.

Liquidity Risk

Credit risk funds are generally less liquid when compared to other debt funds because these funds hold bonds that are of low credit quality, making it difficult to buy or sell them in the market.

Concentration Risk

Several credit risk funds have concentrated exposure to specific sectors, which can increase the risks if those sectors face any kind of economic downturn or challenge.

Interest Rate Risk

As we discussed above, just like other fixed-income securities, credit risk funds are sensitive to changes in interest rates. When interest rates rise, the prices of existing bonds in the portfolio may fall, leading to potential capital losses.

Credit Risk Funds vs. Other Mutual Funds

Credit risk funds carry high risk and potential of high returns since they invest in lower-rated corporate bonds, whereas the risk and returns of other mutual funds vary depending on the category of investment (equity, debt, balanced, etc.)
Compared to other mutual funds, credit risk funds are more volatile because of sensitivity to changes in credit ratings.
Credit risk funds are less liquid due to low demand than other debt mutual funds like liquid funds, low-duration funds, etc.
Credit risk funds are suitable for investors with high-risk tolerance and long-term investment horizons, and other mutual funds say liquid funds are suitable for a wide range of investors.

Historical Performance of Credit Risk Funds

Credit risk funds generally offer high returns as compared to other categories of debt funds, and annualised returns can range somewhere between 7% to 14% depending on the fund and the market conditions.

As of January 2024, there are more than 15 credit risk funds available in India from different Asset Management Companies. The table below shows the annualized performance of a few credit risk funds that we selected on a random basis:

Funds	1 Year Return (%)	3 Year Return (%)	5 Year Return (%)	7 Year Return (%)
Aditya Birla Sun Life Credit Risk Fund – Direct Plan	7.73	7.64	7.24	7.51
Axis Credit Risk Fund – Direct Plan	7.86	6.56	6.94	7.05
HDFC Credit Risk Debt Fund – Direct Plan	7.35	6.39	7.95	7.56
ICICI Prudential Credit Risk Fund – Direct Plan	8.03	6.86	8.25	8.06

Are Credit risk funds suitable for you?

Investments in credit risk funds expose your portfolio to high risk, and if your main purpose is to preserve your capital (assuming you are a risk-averse investor), then chances are likely that credit risk funds may not align with your financial goals.

However, if you are looking for diversification in your debt portfolio, can stay invested for a longer horizon, and are familiar with the risks involved, you can choose credit risk funds to diversify your portfolio and generate good returns.

But remember to seek advice from a financial advisor. A professional advisor will analyse your investment goals and curate your portfolio accordingly.

Conclusion

Credit risk funds are considered a double-edged sword. They offer high returns but at a cost of high risk. Although, the investor needs to analyse the credit quality of the bonds before investing in any credit risk fund and if in any case, the investors want to exit these funds, they need to assess and monitor the fund’s portfolio regularly.

If you are curious to learn more about the taxation of mutual funds in India, check our blog: Decoding Mutual Funds Taxation In India

Frequently Asked Questions (FAQs)

What are credit risk funds?
Credit Risk Funds are a category of debt mutual funds that primarily invest a minimum of 65% only in AA and below-rated corporate bonds.
Do credit risk funds offer higher returns as compared to other debt mutual funds?
Yes, they generally offer higher returns as compared to other categories of debt mutual funds such as liquid funds, money market funds, etc.
Credit risk funds are suitable for what kind of investors?
Credit risk funds are suitable for investors with a high-risk tolerance and long-term investment horizon.
Should you seek professional help while investing in credit risk funds?
It is recommended to seek professional advice before investing in Credit risk funds.
Credit Risk Funds are previously known as?
“Credit Opportunity Fund” & “Credit Advantage Fund”.

January 8, 2024

RBI Retail Direct Platform

Ever wondered how to invest in government securities directly without any intermediary? In this blog, we’ll uncover how you can do this at no cost with a platform launched by India’s central bank.

Retail Direct Platform

The Reserve Bank of India (RBI) launched an online platform in October 2021, the RBI Retail Direct Platform. The objective of this platform is to simplify access to government securities for retail investors who earlier invested in G-secs through intermediaries such as banks or brokers.

This scheme allows retail investors to open a Gilt Securities Account – Retail Direct Gilt (RDG). RDG account will allow investors to buy or bid government securities directly in the primary market as well as buy or sell in the secondary market.

Government securities can be a good long-term investment option for retail investors. They are considered the safest instruments as they are backed by the sovereign guarantee.

Any individual who is a natural person with a domestic savings account, a PAN card (permanent account number), any officially valid document for KYC such as aadhar card, a valid email ID, and a registered mobile number can open an RDG account.

Types of Securities

Using the RBI Retail Direct Platform, the investor can invest in the following Government Securities:

Government of India Treasury Bills (T-Bills) – Treasury bills are short-term money market debt instruments. The RBI issues the T-bills in India. Currently, T-bills are available in three maturities – 91 days, 182 days, and 364 days.
Government of India dated securities (Dated G-secs) – Dated Government securities are a type of bond issued by the government of India. These are debt instruments and maturity of these securities ranges from 5 years to 40 years. The coupon or say interest rate on these securities can be either fixed or floating. There are multiple types of Dated securities: floating rate bonds, fixed rate bonds, zero coupon bonds, inflation indexed bonds, etc.
State Development Loans (SDLs) – SDLs are dated securities. State governments issue these securities to fund their deficit. SDLs are generally issued for 10 years and Investor receives the interest half-yearly.
Sovereign Gold Bonds (SGBs) – The RBI issues the SGBs on behalf of the govt. of India. They are denominated in grams of gold. SGBs are alternatives for digital or physical gold. The SGBs will be redeemed on maturity in cash and have a lock-in period of 8 years. Further, apart from capital gains from the increase in gold prices, investors also receive 2.5% interest p.a. on the bond amount.

Dated G-secs, SDLs, and T-Bills are issued in the primary market through auctions executed by the Reserve Bank of India (RBI). An investor, depending upon eligibility, can bid in an auction under Competitive Bidding or Non-Competitive Bidding.

Features / Benefits of Retail Direct Platform

Easy Access – Investors can easily access and buy/sell Government securities such as treasury bills, Government of India bonds, etc. through the platform.
Simple to Use – The platform is user-friendly, making it easy for even first-time investors to invest in Government securities.
Higher Returns – Investors can earn good interest by investing in G-secs through RBI Retail direct platform. SDLs and other long term G-secs generally provide better returns than regular bank FDs.
No Transaction Fees – The platform does not charge any transaction fee for your investments as there is no intermediary. Further, there is no account opening fee.
Safe & Secure – RDG is an RBI-backed platform that is completely safe and secure to use.

How to open RDG (Retail Direct Gilt account)

One can easily open an RDG account by following a few simple steps:

Visit the website and register using the registration link to open an account.
Enter the details asked such as your name, PAN number, e-mail, address, etc. After that, authentication of mobile number and email address using OTP.
After completing above steps, KYC verification is needed to be done.
Once the KYC is complete, choose your nominee as it is mandatory to fill the Nominee details. And you’re done!

Maximum and Minimum Investment Amount

The are minimum and maximum limits in investing via the RBI Retail Direct platform. The maximum and minimum Investment amount through Retail Direct Platform is as follows:

Security	Minimum Investment Amount	Maximum Investment Amount
T-Bills	INR 10,000.	The allocation of all non-competitive* bids will be limited to 5% of the total nominal amount of the issue.
Government of India dated securities	INR 10,000.	INR 2 crore per security per auction.
State Developments Loans (SDLs)	INR 10,000.	1% of the total amount per auction.
Sovereign Gold Bonds (SGBs)	One gram of gold.	Upto 4 kgs of gold.

Source: Reserve Bank of India

*Non-competitive bid in Government securities means a bid that is offered to a retail investor at a discounted rate by the RBI.

Limitations of Investing in RDG

Compared to other investment platforms, RBI Retail Direct primarily focuses on government securities and lacks diversification. Further, there are limited short term investment options available as most govt. issued securities are of long term maturity.
The minimum investment amount is INR 10,000, which can be high for individual investors.
The platform relies on self-directed research and lacks comprehensive research tools.
Government securities carry various market-related risks such as interest rate risk, i.e., an investor can generate lower or higher returns due to fluctuations in interest prices if they sell their investment before the maturity. However, the credit risk, i.e., loss of capital is almost nil in the govt. securities.

Conclusion

The RBI Retail Direct Platform is a great initiative by the RBI to promote the inclusion of government securities in the portfolio of a retail investor. It is a safe and secure platform for investors looking for a investment option to directly invest in various government securities without any intermediary.

Frequently Asked Questions (FAQ)

What is the full form of the RDG scheme?
RDG stands for Retail Direct Gilt Scheme.
Mention the government securities an investor can invest in using the RDG scheme.
Treasury Bills, Dated G-secs, State Development Loans (SDLs), etc.
What is the minimum investment amount in T-bills?
The minimum investment amount in T-bills is INR 10,000.
Are govt. securities 100% safe?
No, Govt. securities are not 100% safe; there are various market related risks such as interest rate risk if you sell your investment before maturity.
Who can invest in the Retail Direct Scheme?
Any individual in India.

January 3, 2024

10 Top Investors In India And Their Portfolios

India is a growing country that has witnessed an increase in investment activities and a growing number of investors. Assets under Management (AUM) of Mutual Funds is growing by double digits, and demat accounts in India crossed the ten crore mark. The tale of India is being told by these metrics.

In this blog, we delve into the portfolios of some of the top investors of India.

1. Radhakishan Damani

Radhakishan Damani is a well-recognized name in the investment world. Damani is an entrepreneur and is the founder of a well-known retail chain in India, D-Mart. He is recognized for his eccentric approach to the stock market. He manages his portfolio through his investment firm, Bright Star Investments Limited. According to Forbes, he is the 8^th richest person in India.

Damani was born in Mumbai on 15 March 1954 in a Marwari Hindu family. He studied Commerce at the University of Bombay but dropped out after one year. After the death of his father, he tried his hands in the stock market in the year 1980, and became a broker and investor. He made profits by short-selling the stocks in the 90s.

Investment Philosophy

Damani is a value investor and focuses on long-term investments. He is often associated with a conservative and risk-averse investment style and, invests in undervalued companies with strong fundamentals and has a good track record of consistently outstanding performance. He conducts his research to choose the stock and is patient with his investment strategies during market fluctuations.

Radhakishan Damani’s Portfolio

As of September 2024, his portfolio valuation stood at INR 182,559 Crs. The table below shows the top ten stocks from his portfolio:

Stocks	Value (IN cr)
Avenue Supermart Ltd.	160909.07
Trent ltd	3067.4
VST industries Ltd	1609.2
Other	2270.7

2. Rakesh Jhunjhunwala

Rakesh Jhunjhunwala, also known as the Big Bull and the ‘Warren Buffet’ of the Indian stock market. He was a chartered accountant and a famous equity investor in India and one of India’s richest people. He was born in Mumbai, on July 5, 1960. Jhunjhunwala died on August 14, 2022, because of an adverse medical condition.

Rakesh developed an interest in stocks when he observed his father discussing stocks with his friends. Rakesh started his career in the stock market in 1985 with an investment of INR 5,000. Investments in companies like Titan, Infosys & CRISIL in 2000 brought him early success.

Rakesh Jhunjhunwala’s Investment Philosophy

Rakesh was recognized for his value-investing approach in the stock market. He had always chosen undervalued companies with strong fundamentals in the market. He believed that these companies hold an immense potential to generate great returns over the long term. Rakesh invested in companies across different sectors to maximize his returns and was always focused on extensive research of stocks.

Rakesh Jhunjhunwala Portfolio

As of September 2024, Jhunjhunwala’s net worth stood at INR 51,079 Crore. Have a look at the sector-wise breakup of Rakesh Jhunjhunwala’s portfolio.

Further, have a look at the top stocks of his portfolio:

Stocks	Value (IN cr)
Titan Company ltd	15,169
Concord Biotech Ltd.	5,526.40
Star Health and Allied Insurance Company Ltd.	4,789.80
Tata Motors Ltd.	3,804.20
Metro Brands Ltd.	3,260.20
Others	18349.6

3. Mukul Agarwal

Mukul Agarwal, as an investor has gained prominence in recent years. Currently, he is the director of three companies, namely Param Capital Research Private Limited, Permanent Technologies Private Limited, and Mahavir Prasad Nevatia Education Institution. He entered the market in the late 90s.

Mukul Agarwal’s Investment Philosophy

Mukul is the fresh face of the Indian stock market. He adopts a long-term investment strategy with a major focus on diversification of portfolio. He does not believe in making impulsive decisions and knows how to stay disciplined while investing.

Mukul Agarwal’s Portfolio

As of September 2024, Mukul Agarwal’s net worth stood at INR 7189.8 Crore. Have a look at the top ten stocks from his portfolio:

Stocks	Holding value (INR CR)
BSE Ltd	912
Neuland Laboratories Ltd.	676.7
Nuvama Wealth Management Ltd.	335
Radico Khaitan Ltd.	329.6
Capacit’e Infraprojects Ltd.	229.5
Others	4725

4. Azim Premji

Azim Premji is a philanthropist, business tycoon, and the former chairman of one of the leading tech giants of India, Wipro Limited. Azim Premji was born in Mumbai in the year 1945. Premji holds a bachelor’s degree in electrical engineering from Stanford University He took over Wipro from his father in the year 1966. At that time, Wipro was a vegetable oil company. Premji later recognised the emerging IT trends in the country and decided to expand Wipro’s Business. As a philanthropist, he has donated over $21 billion to his Azim Premji Foundation. Premji has been awarded with Padma Bhushan in the year 2011. Wipro made Premji one of the wealthiest investors in India.

Azim Premji’s Investment Philosophy

Premji is known for his disciplined and long-term investment strategies. He has a long-term perspective on the stock market. Premji focuses on value investing principles and thoroughly analyses the company’s fundamentals and growth potential. He believes in diversification of portfolio and knows how to manage risk effectively.

Azim Premji’s Portfolio

As of September 2024, Premji’s net worth stood at INR 110901.3 Crore. Have a look at the sector-wise breakup of Azim Premji’s portfolio:

The table below shows the top stocks from his portfolio:

Stocks	Holding Value (INr cr)
Wipro	110901.3

5. Ashish Dhawan

Ashish Dhawan is a well-known investor in India who has achieved significant returns in the stock market through his analytical approach. Ashish was born on March 10, 1969. He is the co-founder of Chrys Capital, a leading private equity firm.

After a successful career in investing, he switched to philanthropy and education. Dhawan is also the founder of a non-profit organization named Central Square Foundation which works towards improving and transforming the quality of education. He also played a major role in the establishment of Ashoka University in Haryana.

Ashish Dhwan’s Investment Philosophy

Ashish spreads his investments across various sectors and asset classes to minimize risk. He emphasizes long-term returns and conducts detailed analyses of market conditions, and companies before investing. He looks for undervalued gems in the stock market.

Ashish Dhawan’s Portfolio

As of September 2024, Dhawa’s net worth stood at INR 3,332.7 Crore. Have a look at the top ten stocks from his portfolio:

Stocks	Holding Value(inr cr)
Glenmark Pharmaceuticals Ltd.	1,126
Quess Corp Ltd.	417.6
Mahindra & Mahindra Financial Services Ltd.	416.9
AGI Greenpac Ltd.	332.9
Greenlam Industries Ltd.	283.1
Others	771.4

6. Vijay Kishanlal Kedia

Vijay Kedia’s portfolio is among the most followed in the Indian market, both due to his reputation as a “market master” and the historical returns his portfolio has delivered over the years Born on 1959 in Kolkata, Kedia has made a name for himself as a self-made investor who started his journey in the stock market at a young age, overcoming significant financial challenges to establish himself as one of India’s most respected market voices.

Kedia has been a keynote speaker at IIM Ahmedabad, IIM Bangalore & MDI Murshidabad and he has been a TEDx speaker 2 times He was also invited to speak at London Business

Vijay Kedia’s Investment Philosophy

Speaking about his investment rationale, Kedia says, “One should scout for companies which have good management. Find very good, very honest management and see the product in which the management is going to outperform its peers and the economy. Invest in those companies for the next 10-15 years, and you cannot go wrong.” He uses the SMILE approach in his portfolio investments – ‘small in size, medium in experience, large in aspiration, and extra-large in market potential’.

Vijay Kedia’s Portfolio

As of September 2024, Vijay’s net worth stood at INR 1928.2 Crore. Have a look at the top ten stocks from his portfolio:

Stocks	Holding Value(INR CR)
Tejas Network Ltd	431
Atul Auto Ltd.	362.6
Neuland Laboratories Ltd.	221.7
Elecon Engineering Company Ltd.	179.6
TAC Infosec Ltd.	117.8
Others	621

7. Ashish Kochalia

Ashish Kacholia is a prominent Indian stock market investor renowned for his astute investment strategies and knack for selecting multi-bagger stocks that deliver exceptional returns over the long term.

Often referred to as the “Big Whale” of the Indian equity markets, Kacholia has built a formidable reputation for his deep research With a career that spans decades, Kacholia initially co-founded the renowned brokerage firm Edelweiss, which laid the foundation for his extensive understanding of market dynamics. Over time, he transitioned to become an independent investor, amassing a well-diversified portfolio across sectors such as technology, consumer goods, chemicals, and manufacturing.

Ashish Kacholia’s success has made him a sought-after figure in the financial world, where he is often lauded as an inspiration for retail investors looking to build wealth in equity markets. Despite his success, he maintains a low public profile, letting his impressive track record and investment philosophy speak volumes.

Ashish Kochalia’s Investment Philosophy

His investment style is characterized by patience, a focus on business fundamentals, and a deep conviction in the companies he invests in. He identified high-growth potential in small-cap and mid-cap companies and remain invested in them for a long time which delivers exceptional returns

Ashish Kochalia’s Portfolio

As of September 2024 Ashish Kochalia’s net worth stood at INR 3,158.7 Crore. Have a look at the top stocks from his portfolio:

Stocks	Holding Value(INR Cr)
Shailey Engineering Plastics ltd	361.2 Cr
Beta Drugs Ltd.	267.4 Cr
Safari Industries (India) Ltd.	238.6 Cr
Awfis Space Solutions Ltd	234.3 Cr
Others	2057.3

8. Madhusudan Kela

Madhusudhan Kela is a renowned Indian investor and financial strategist celebrated for his deep insights into equity markets and a career spanning over three decades. He gained prominence during his tenure as Chief Investment Strategist at Reliance Mutual Fund, where his visionary investment strategies played a pivotal role in delivering outstanding returns and building a robust reputation for the fund.

Madhusudhan Kela’s Investment Philosophy

Kela’s investment philosophy is rooted in the principles of identifying long-term trends, deeply analyzing business fundamentals, and maintaining a high conviction in his bets. Known for his contrarian approach, he often seeks opportunities in undervalued or overlooked sectors, emphasizing patience and the ability to withstand market volatility. His disciplined, research-driven methodology and knack for spotting multibagger opportunities have made him a revered figure in Indian capital markets.

Madhusdhan’s Kela Portfolio

As of September 2024, Madhusudhan Kela’s net worth stood at INR 2,224.0 Crore. Have a look at the top stocks from his portfolio:

Stocks	Holding Value(Rs cr)
Choice International ltd	1,278
Mk Ventures Capital Ltd.	489.90
Sangam (India) Ltd.	93.00
Bombay Dyeing & Manufacturing Company Ltd.	73.70
Samhi Hotels Ltd.	70.40
Others	218.8

9. Akash Bhansali

Akash Bhansali is a prominent Indian investor and the Managing Director of Enam Holdings, a private investment firm renowned for its strategic investments across diverse sectors. With decades of experience in the financial markets, Bhansali has earned a reputation as a sharp and forward-thinking investor who focuses on creating long-term wealth through disciplined and well-researched investments. His ability to identify trends early and align his portfolio with India’s growth story has made him a respected figure in the investment community.

Akash Bhansali’s Investment Philosophy

Bhansali’s investment philosophy revolves around identifying quality businesses with robust fundamentals, strong management teams, and scalable growth opportunities. He emphasizes patience, value creation, and a deep understanding of the industries he invests in. His portfolio often reflects a balance between traditional industries and emerging sectors, showcasing his belief in diversification and adaptability. Akash Bhansali’s strategic and thoughtful approach serves as an inspiration for investors aiming to achieve sustainable wealth creation.

Akash Bhansali’s Portfolio

As of September 2024, Vijay’s net worth stood at INR 6952.7 Crore. Have a look at the top stocks from his portfolio:

Stocks	Holding Value(Rs cr)
Gujrat Fluorochemicals Ltd	2,137
One97 Communications Ltd.	717.1
Sudarshan Chemical Industries Ltd.	627
Inox Wind Energy Ltd.	497.5
Schneider Electric Infrastructure Ltd.	467.6
Other	2506.79

10. Anil Kumar Goel

Anil Kumar Goel is a highly regarded Indian investor known for his exceptional expertise in identifying high-potential opportunities in small-cap and mid-cap companies. With decades of experience in equity markets, Goel has carved out a niche for himself by focusing on undervalued and often overlooked sectors, particularly in the manufacturing and industrial space. He is also known as “Sugar Baron” on Dalal Street because of his picks in sugar stocks. His success has made him a well-respected figure among value investors in India.

Anil Kumar Goel’s Investment Philosophy

Goel’s investment philosophy centers around deep value investing, where he meticulously analyzes a company’s financials, business fundamentals, and industry prospects. He is known for his preference for companies with strong cash flows, minimal debt, and consistent growth potential. Goel often takes a long-term approach, patiently holding his investments as the value of the business unfolds over time. His ability to spot hidden gems and turn them into multibaggers has made him an inspiration for retail and institutional investors alike.

Anil Kumar Goel’s Portfolio

As of September 2024, Anil Kumar Goel’s net worth stood at INR 2164.2 Crore. Have a look at the top stocks from his portfolio:

Stocks	Holding Value(Rs cr)
Triveni Engineering&Industries ltd	397
KRBL Ltd.	302.80
TCPL Packaging Ltd.	268.50
Dalmia Bharat Sugar and Industries Ltd.	229.40
Dhampur Bio Organics Ltd.	109.50
Other	855

Conclusion

Each investor that we have discussed, has their approach and areas of expertise, which makes India’s investment landscape remarkable. Every investor’s journey provides valuable insights and inspiration for aspiring investors.

To warp it up, there is no “best” way to invest in the stock market. One can observe by analysing the portfolio of top investors that long-term investing, discipline, and patience are the key factors to a successful investing journey. Create your strategies and uncover opportunities that might lead you to the ladder of success.

Frequently Asked Questions (FAQs)

Who played a major role in the foundation of Ashoka University?
Ashish Dhawan.
Who is known as the “Warren Buffet of India”?
Rakesh Jhunjhunwala
Who was the former chairman of Wipro?
Azim Premji
What is the investment style of Ashish Dhawan?
Ashish Dhawan focuses on long-term investing and picks undervalued stocks with strong fundamentals.
Who was the founder of Avenue Supermarts Limited?
Radhakishan Damani

January 3, 2024

Performance Of IPOs Launched In 2023

The Indian markets have performed exceptionally well in calendar year 2023. All major sectors are in green, and broader indices like Nifty 50 and Sensex gave more than 18% returns.

There were 234 IPOs launched in calendar year 2023, 176 SME, and 58 mainboard IPOs. In this blog, we will uncover the top IPOs launched in 2023 by listing gains.

What is an IPO?

If you’re not familiar, IPO stands for Initial Public Offering. When a company raises capital in the primary market by selling shares to the public, it is referred to as an IPO. An IPO is an imperative step in the growth of a business. Once listed on the Stock Exchanges (NSE & BSE), the shares of a company can be easily bought and sold.

Top IPOs of 2023

As stated above, a total of 234 IPOs launched in 2023 out of which mainboard included 58 IPOs and SME included 176 IPOs.

Mainboard IPOs are for large companies with a post-issue paid-up capital of at least INR 10 crore, whereas SME IPOs are for small and medium enterprises with a post-issue paid-up capital of a minimum of INR 1 crore and a maximum of INR 25 crore.

1. Tata Technologies

Tata Technologies IPO is a book-built issue of INR 3,042.51 crores. The issue was a complete offer for sale (OFS), i.e., the entire issue was sold by existing shareholders.

Tata Technologies was founded in the year 1994. It is a leading Indian multinational product engineering company known for its expertise in the automotive, aerospace, and industrial heavy machinery sectors. The company was incorporated as ‘Core Software Systems’ in the year 1989 as the automotive design unit of Tata Motors with a major focus on car designing and development and was later renamed Tata Technologies in the year 2001.

Checkout our detailed case study on Tata Technologies: Tata Technologies Case Study: Business Model and Marketing Strategy

Tata Technology IPO details

IPO Date: 22 November 2023 to 24 November 2023
Listing date: November 30, 2023
Price Band: INR 475 – INR 500 per share
No of shares offered: 60,850,278 shares
Lot Size: 30

Performance Analysis

Tata Technologies shares were listed at a premium of 163% above the issue price. The opening price on the listing day was INR 1,200 per share. On the day of listing, the shares rallied 10% to close at INR 1313.

The shares of Tata Technologies are currently trading at INR 1,180 and are down almost 10% from the listed price of INR 1,313.

2. Motisons Jewellers

Motisons Jewellers IPO was a book-built issue of INR 151.09 Crore. The issue was a completely fresh issue of 2.75 Crore shares.

It was established in the year 1997. The company sells gold, diamond, and other jewellery products with over three lakh designs. The flagship store – Motisons Tower is located in Jaipur. The latest branch of Motisons was opened in 2021, in Vaishali Nagar, Jaipur.

Motisons Jewellers IPO Details

IPO Date: December 18, 2023 to December 20, 2023
Listing date: December 26, 2023
Price Band: ₹52 to ₹55 per share
No of shares offered: 25,829,700
Lot Size: 250 Shares

Performance Analysis

Shares of Motisons Jewellers were listed at a premium of 84% above the issue price. The company’s opening price on the listing day was INR 109 per share. However, on the listing day, the shares closed at INR 104.

As of 1 Jan 2024, the shares of Motisons Jewellers are trading around INR 103, which is close to the listing day’s price.

3. Netweb Technologies

Netweb Technologies India IPO is a book-built issue of INR 631 crores. The issue was a combination of a fresh issue of 0.41 crore shares and an offer for sale of 0.85 crore shares.

It is a producer of high-performance computing and data centre solutions. The company specialises in designing, developing, applying, and integrating HPC solutions for businesses and research organisations.

Newteb Technologies IPO Details

IPO Date: July 17, 2023 to July 19, 2023
Listing date: July 27, 2023
Price Band: ₹475 to ₹500 per share
No shares offered: 12,620,000 shares.
Lot Size: 30 Shares

Performance Analysis

Shares of Newteb Technologies India were listed at a premium of 82% above the issue price. The opening price price of the company on the listing day was INR 947 per share. However, on the listing day, the shares closed at a discount of nearly 4%, i.e., INR 910 after making a high of INR 953.

The shares of Newteb Technologies India are currently trading around INR 1,187 and are up nearly 25% from the listed price of INR 910.

4. Ideaforge Technology

Ideaforge Technology was a book-built issue of INR 567.29 Crore. The issue was the combination of a fresh issue of 0.36 crore shares and an offer for sale of 0.49 crore shares.

The company was founded and incorporated in the year 2007. The company is involved in the business of manufacturing Unnamed Aircraft Systems (UAS), also called drones. Ideaforge is a market leader and holds approximately 50% market share in the manufacturing of drones. The major focus of the company is on security and surveillance products.

Ideaforge IPO Details

IPO Date: June 26, 2023 to June 30, 2023
Listing date: July 7, 2023
Price Band: ₹638 to ₹672 per share
No of shares offered: 4,648,870 shares
Lot Size: 22 Shares

Performance Analysis

Shares of Ideaforge were listed at a premium of 93% above the issue price. The opening price of the company on listing day was INR 1,300 per share. However, the share price closed at a discount of nearly 1%, i.e., INR 1,295 after making a high of INR 1,344.

As of 1 Jan 2024, the shares of Ideaforge Technologies India are trading around INR 835 and are down nearly 35% from the listed price of INR 1,295.

5. DOMS Industries

DOMS IPO was a book-built issue of INR 1,200 crore. The issue was a combination of a fresh issue of 0.44 crore shares and an offer for sale of 1.08 crore.

The company is a leading Indian manufacturer and supplier of stationery and art products. It was started in the year 2005, and since then the company has achieved significant growth and brand recognition.

It offers a wide range of products such as drawing materials, gifting items, pens and geometrical instruments, paper materials, kits & combos, etc. The company has a strong distribution network in over 45 countries.

DOMS Industries IPO Details

IPO Date: December 13, 2023 to December 15, 2023
Listing date: December 20, 2023
Price Band: ₹750 to ₹790 per share
No shares offered: 15,126,581 shares
Lot Size: 18 Shares

Performance Analysis

Shares of DOMS Industries were listed at a premium of 68% above the issue price. The opening price of the company on the listing day was INR 1,400 per share. However, the shares closed at a discount of nearly 5%, i.e., INR 1,326 after making a high of INR 1,434.

As of 1 Jan 2024, the shares of DOMS Industries are currently trading around INR 1,250 and are down nearly 5% from the listed price of INR 1,326.

Apart from the above-mentioned IPOs, several other IPOs saw a stellar debut on the stock exchange. The list of other IPOs is as follows:

Company Name	Type of IPO	Listing Gain (%)	Listing Price (INR)	CMP (INR)*
GOYAL SALT	SME IPO	242%	130	153
BASILIC FLY STUDIO	SME IPO	179%	271	297
UTKARSH SMALL FINANCE BANK	Mainboard	92%	40	53
PLAZA WIRES	SME IPO	56%	76	100
IREDA	Mainboard	87%	50	104

*CMP as of 1 January 2024

Conclusion

The IPO market of 2023 in India was marked by high volatility and uncertainty. While the number of listings remained strong, the overall performance of the IPOs was mixed, with some companies exceeding expectations and others falling short. It is important to understand that thorough research is necessary before investing in any IPO.

Also, check out our blog if you are curious to invest in IPOs via mutual fund route : What Is An IPO Mutual Fund? Should You Invest?

Frequently Asked Questions (FAQs)

What is the full form of IPO
Initial Public Offering.
What is the issue size limit of SME IPO?
1 Crore – 25 Crore.
Was Tata Technologies a mainboard IPO?
Yes.
How many IPOs launched in the year 2023?
234.
What is an Offer Document?
Offer Document or Prospectus, carries information about the company business, background, experience of the management team, company’s financial statements, etc.

January 2, 2024

Asset Management Companies (AMC) in India

If you are looking forward to beginning your journey in mutual funds and are not familiar with the term AMC or Asset Management Company, you have come across the right place!

What is AMC?

AMC stands for Asset Management Company. AMCs are financial institutions that manage and invest funds on their client’s behalf through pooled investments such as mutual funds, ETFs or other financial instruments.

AMC employs professionals fund managers, and analysts to make investment decisions. These professionals research and analyse the market conditions to fulfil the fund’s choices and investment needs.

And for all these services, they charge fees for managing the funds. The fees include a management fee, a performance fee and other miscellaneous expenses. The fees are the percentage of the assets under management (AUM) – It is the total value of the investments managed by the AMC.

In India, AMCs are regulated by the Securities & Exchange Board of India (SEBI). Further, AMCs are also passively regulated by the Association of Mutual Funds in India (AMFI).

Now, you must be thinking about how these AMCs operate. AMCs invest the pooled money in professionally managed funds based on the investor’s financial goal, investment horizon and risk appetite. They rebalance these funds on different frequencies, such as quarterly or annually to maintain the desired asset allocation.

AMCs distribute these funds through various channels including banks, online platforms, NBFCs, distribution houses, agents, etc. The revenue of an AMC primarily comes from the fees it charges from the investors.

Indian Mutual Fund Industry Analysis

Assets Under Management (AUM) of the Indian Mutual Fund Industry stood at INR 49.05 lakh crores as of 30 November 2023.

The AUM of the Indian Mutual Fund Industry has grown from ₹8.90 trillion as of 30 November 2013 to ₹49.05 trillion as of November 30, 2023, more than a 5-fold increase in 10 years.

The proportionate share of equity-oriented schemes is 54.9% and for debt-oriented schemes it is 18.5% of the industry’s assets. Individual investors hold a relatively higher share of industry’s assets, i.e., 59.2% in November 2023.

Institutional investors account for 40.8% of the assets, of which corporates are 95%. The rest are Indian and foreign institutions.

From the above data, we can interpret that AMCs have experienced steady growth over the years, reflecting investors’ participation in the mutual fund industry. Rise in disposable incomes and increasing financial awareness are key factors leading to the growth of the mutual fund industry in India.

Emerging Trends in the Indian Mutual Fund Industry

We all understand the financial landscape of India, which is continuously evolving and AMCs are launching new schemes every year. In the calendar year 2023, AMCs in India launched 198 New Fund Offers (NFOs).

Some of the key emerging trends in the mutual Fund industry are:

Fintech and Robo-advisors are playing an important role in managing investments. Robo-advisors use algorithms to provide automated suggestions on your investments are continuously gaining attention.
Investors these days generally look for investment opportunities that align with their values. Thematic and Overseas funds play a major role by providing sector-focused and global investments opportunities respectively.
ESG investing or environmental, social and governance factors are crucial for new-generation investors. AMCs that curate ESG-friendly funds are attracting ample inflows.
Direct investment platforms are gaining traction because of their low expense ratio and easy registration process.

Broadly, there are two types of mutual funds – direct funds and regular funds. Their expense ratio is the primary distinction between them. Regular mutual funds are chosen by investors who prefer investing with financial advisors, whereas Direct mutual funds are meant for those investors who make their own investment decisions.

Top Asset Management Companies of India

As of December 2023, there are 44 registered Asset Management Companies in India. The top 5 AMCs in India are:

1. SBI Asset Management Company

SBI mutual fund is a leading AMC in India. It was established in the year 1987 and has 36 years of experience in the fund management. It is a joint venture between the State Bank of India and Amundi Asset Management company. State Bank of India currently holds a 63% stake in the SBI mutual fund, and Amundi Asset Management company holds a 37% stake through a wholly owned subsidiary.

SBI currently manages 306 open-ended and 215 close-ended funds with an AUM of INR 828,152 crores as of September 2023.

2. ICICI Prudential Asset Management Company

ICICI is another major player in the Indian Mutual Fund Industry. It was established in 1998 and is a joint venture between ICICI Bank and Prudential Plc, a leading Pan-Asia & Africa-focused group that provides health protection and saving solutions.

ICICI AMC manages 436 open-ended and 17 close-ended funds with an AUM of INR 594,204 crores.

3. HDFC Asset Management Company

Established in the year 2000, HDFC is also a major player in the mutual fund industry with a strong track record and robust product portfolio.

HDFC AMC is a joint venture between HDFC Limited & ABRDN Investment Management Limited (formerly known as Standard Life Investments Limited).

HDFC AMC manages 277 open-ended and 57 close-ended funds with an AUM of INR 518,132 crores.

4. Kotak Asset Management Company

Kotak AMC is the wholly owned subsidiary of Kotak Mahindra Bank Ltd., which started operations in the year 1998 and holds a large investor base of over 8.1 million.

It currently manages 237 open-ended and 34 close-ended funds with an AUM of INR 330,703 crores.

5. Nippon Asset Management Company

Nippon India Mutual Fund (NIMF) is one of the fastest-growing mutual funds in India and was established in the year 1995. NIMF was previously known as Reliance Mutual Fund.

Nippon currently manages 441 open-ended and 24 close-ended funds with an AUM of INR 329,831 crores.

Read Also: Top AMCs in India

Conclusion

To wrap it up, there are 44 registered AMCs in India offering a diverse world of mutual funds. Remember, even though the Indian asset management industry is poised for consistent growth in the coming years, always conduct thorough research and analysis before starting your investment journey and consult with financial advisors.

Also, if you are a keen investor and want to update yourself on the taxation of different mutual funds in India, checkout our blog: Decoding Mutual Funds Taxation In India

Frequently Asked Questions (FAQs)

What is the full form of AMC?
Asset Management Company.
Does AMC charge fees from investors?
Yes.
Who regulates AMCs?
Securities & Exchange Board of India.
How many registered AMCs are there in India?
As of December 2023, there are 44 registered AMCs.
What is Assets Under Management (AUM)?
It is the total value of the investments managed by the AMC.

December 29, 2023

Decoding Hedge Funds In India – Types, Advantages And Distinctions

Hedge Funds are attractive, yet often misunderstood financial products. In our today’s blog, we will learn about these funds and understand what place they hold in the investment landscape.

What are Hedge Funds?

Hedge funds are investment funds that pool capital from high-net-worth individuals (HNIs) and institutional investors.

These funds are managed by professional fund managers and deploy capital in complex products and strategies like listed and unlisted derivatives, real estate, convertible debt, etc. They have the potential to deliver significant returns but also carry significant risks.

They play a significant role in portfolio diversification since they help in diversifying the portfolio and provide a chance to invest in complex strategies.

Hedge Funds in India

Hedge Funds are considered as Alternate Investment Funds (AIFs) in India. As per SEBI, “AIF is a privately pooled investment vehicle incorporated in India which collects funds from sophisticated investors, whether Indian or Foreign, for investing it in accordance with a defined investment policy for the benefit of its investors”.

There are three categories of AIFs classified by SEBI:

1. Category I AIF: Venture Capital Funds, Angel Fund, etc.

2. Category II AIF: Funds that do not fall in Category I and Category III.

3. Category III AIF: Hedge Funds

Hedge funds fall in Category 3 AIFs. These funds are not pass-through entities and are taxed at the fund level. In other words, tax will be paid by the fund, and investors are not required to pay tax. However, this is generally less tax efficient as compared to other investment options.

As per SEBI, there are 1,220 Alternative Investment Funds registered in India as of December 2023.

Features of Hedge Funds

1. Hedge Funds can be registered as a trust, company, or LLP. Generally, partnership structure consists of General Partners and Limited Partners.

General Partners (GPs): GPs actively manage the operations of the fund and also invest in it. They have unlimited liability.

Limited Partners (LPs): LPs are the investors that do not take participation in the management. Further, they have a limited liability.

2. Hedge funds employ a plethora of strategies, including long and short positions, arbitrage, derivatives trading, etc. although they are flexible and can also invest in equity, currency, and commodities.

3. Hedge funds try to generate alpha over benchmark returns, i.e., the main objective of hedge funds is to generate positive returns irrespective of the market conditions.

4. Hedge funds carry high charges & fees. These funds charge both management fees and a share of the investor’s profit.

5. Hedge Funds are generally targeted to sophisticated investors, i.e., HNIs, Institutional Investors, Family offices, etc. as the minimum investment amount is in crores. As per SEBI, the minimum amount to start investing in a Hedge fund is one crore, and the entire fund should have a corpus of at least INR 20 crs.

6. Hedge Funds are less regulated as and when compared to mutual funds. Periodic disclosures of NAVs of hedge funds to SEBI are not mandatory. Further, there is no requirement for these funds to register with the Securities and Exchange Board of India (SEBI).

7. Hedge funds have low liquidity, and investors may need to face lock-in periods. They can be open-ended or close-ended.

Hedge Funds Strategies:

Hedge Funds are generally classified by strategies. Such strategies change over time when new strategies are introduced in the market. There are four broader hedge fund strategies:

1. Equity Hedge – They focus on equity and equity related instruments. These funds focus on both long and short positions. Equity Hedge includes strategies such as Market Neutral, Fundamental Value, Sector specific, etc.

2. Event Driven – Event Driven strategies focus on generating profits from certain corporate actions. These include strategies like Merger Arbitrage, Special Situations, etc.

2. Relative Value – These funds capitalise on pricing differences in the market and try to generate profits from relative price movements. These include Volatility trading, Multi Strategy, Fixed Income, etc.

4. Macro Strategies: These funds follow a top-down approach to identify various macro events such as economic activities, interest rates, fluctuation in currencies, etc.

There are also Fund of Hedge Funds (FoHF), which are similar to Fund of Funds (FoF). These funds invest in a diversified portfolio of multiple hedge funds.

Fee Structure of Hedge Funds

Here is a breakdown of the fee structure:

1. Management Fees

Management fees range from 1-2% and are charged irrespective of the fund’s performance.

2. Performance Fees

Performance fees are a percentage of the fund’s profit and are generally around 20%

3. Hurdle Rate

It is a pre-decided minimum level of return that the fund needs to achieve before the performance fee is charged. It can be of multiple types: Soft hurdle, Hard hurdle, or Blended Hurdle.

Apart from these, hedge funds may charge transaction costs from investors. The above-mentioned fee structure can change depending on the type of hedge fund. It is suggested for the investors to carefully review and analyse the fee structure before investing.

Difference between Mutual Funds and Hedge Funds

Investors with low capital can also invest in mutual funds, whereas investments in hedge funds are allowed only for HNI and institutional investors as the minimum investment amount is in crores.
Mutual funds are subject to stricter regulations and disclosure requirements about investments as compared to hedge funds. Hedge funds are less regulated and riskier than mutual funds.
Mutual fund is suitable for investors who seek long-term growth and lesser risk and hedge funds are meant for investors who have a high-risk appetite.
Mutual funds do not charge any fees on profits earned by investors whereas, in the case of hedge funds, fund managers can ask for a share in the profits of the investors.

Benefits of Investing in Hedge Funds

Diversification: Hedge funds allow diversification that can reduce the overall risk of the portfolio. Hedge fund returns may not move in sync with stock or bond markets, potentially offering greater diversification and stability.
Returns: Hedge funds aim to generate good returns irrespective of the prevailing trends in the market.
Professionally Managed: They are professionally managed. Fund managers earn performance fees from the investors. This encourages them to strive for strong and better performance.

Demerits of Investing in Hedge Funds:

1. Not transparent: Hedge Funds operate in a less regulated world and are not obliged to issue performance reports, portfolio holdings, etc. Further, they are not allowed to advertise in India.

2. Not for all: As discussed above, hedge funds deploy capital in complex strategies and carry higher risk as compared to other investment options. Further, the minimum investment amount is generally in crores, whereas in other investment options like Mutual funds, you can invest from as low as INR 100.

3. Expensive: Hedge Funds are substantially more expensive than traditional investments and may not be tax efficient as compared to other investment options.

Conclusion

On a parting note, hedge funds appeal to investors who seek high returns from the financial markets. Even though they are not meant for every investor out there, these funds still hold a unique and powerful place in the financial world. Understanding their strengths, weaknesses, and proper due diligence is important for investors before considering them as an investment option.

Frequently Asked Questions (FAQs)

Can hedge funds advertise in India?
No, as per SEBI, AIFs are privately pooled investments that raise funds via private placement only.
Hedge Funds fall under which category of AIF
Hedge funds are Category III AIF.
What is the most common fee structure charged by hedge funds?
Most Hedge Funds follow 2 / 20 structure means a 2% management fee and 20% performance fee.
Is NAV disclosure mandatory for hedge funds?
No, NAV disclosure is not mandatory for hedge funds.
Are Hedge funds more regulated than mutual funds?
No, hedge funds are comparatively less regulated than mutual funds.

December 20, 2023

Best Alternatives To Fixed Deposits

Tired of investing in FDs, and looking for another option to invest?

FDs are the most preferred choice for risk-averse investors in India. They are convenient, simple to understand, and safe….wait, are they really safe? It may or may not.

After the recent fiasco of Yes Bank and PMC Bank, it can be understood that FDs are not 100% safe. Further, there are a few drawbacks, such as penalty for premature withdrawal, not so-flexible tenure, etc.

What is the safest investment then? What are the other options that provide more flexibility or tax efficiency than Fixed Deposits? In this blog, we will explore answers to all such questions.

Alternatives to FDs

Let’s explore the options available to Investors:

1. Mutual Funds

These are pooled investments managed by a professional fund manager. There’s an entire universe of mutual funds.

Check out our blog to learn more: Mutual Funds: Meaning, Types, Features, Benefits and How They Work.

Broadly, there are Equity and Debt mutual funds. While equity mutual funds are riskier and more volatile, debt funds can be an alternative to fixed deposits. In finance, there’s one simple rule: The higher the returns, the higher the risk.

Debt funds are classified on the basis of:

1. Duration: The longer the duration, higher the sensitivity of change in price of the bond.

2. Types of investment: Debt funds invest money in several instruments ranging from money market instruments to corporate bonds. Gilt funds carry less default risk than credit-risk funds.

Check out our blog to learn more: What is Debt Mutual Funds: Invest in the Best Debt Funds in India

2. Bond Market

Another method to get exposure to bonds is to directly invest in bonds. There are several methods to do so. You can directly place bids for various new offerings via brokers. Further, RBI recently launched a Retail direct platform to facilitate investment in govt. securities – Treasury bills, Central / State govt. Bonds, etc. However, direct investing in bonds requires thorough research and carries more risks. For newbies, investing in debt funds is ideal.

Fact: Government securities offer the maximum safety as they carry the Sovereign Guarantee.

3. National Savings Scheme (NPS)

It is a defined contribution voluntary pension scheme launched by Govt. of India. It is a low-cost product that can provide attractive market-linked returns. They invest in equity, bonds, and govt. securities and are managed by fund managers. Further, tax benefit upto INR 50,000 is available under this scheme. However, this is a pension scheme. Therefore, it comes with a lock-in period until the age of 60.

3. Floating Rate Saving Bonds (FRSB)

FRSBs are issued by the Reserve Bank of India (RBI) on behalf of Govt. of India. As the name suggests, coupon rate is not fixed in FRBs like bonds. The coupon is linked to the National Savings Certificate (NSC) + 35 bps spread. They have a maturity of 7 years and do not provide any tax benefit, but coupon rate is generally higher.

4. Post Office Schemes

There are multiple post office schemes available to investors:

1. Public Provident Fund (PPF) – A long term tax-saving investment option where the lock-in period is 15 years.

2. Sukanya Samriddhi Account (SSA) – A govt. of India initiative targeted to the parents of girl children.

3. National Savings Certificate (NSC) – A government savings bond scheme targeted to investors looking for tax savings. NSC has a lock-in period of five years.

5. Hybrid Funds

As the name suggests, they are a mix of equity and debt. They are further classified in the Aggressive or Conservative approach. Aggressive invests more in equity and less in debt instruments, while Conservative hybrid funds take more exposure in debt. Taxation of it depends on the equity exposure of the fund.

Check out our blog on taxation to learn more: Decoding Mutual Funds Taxation In India

6. Alternate FDs

There are multiple types of Fixed Deposits available to investors, however, only bank FDs are common. List of other FDs that one can consider investing in:

1. Corporate FD – These FDs are issued by companies. Generally, they provide higher returns than Bank FDs. The interest rate of FDs can be significantly influenced by the credit rating of the FDs issued. The lower the rating, the higher the interest rate.

However, direct investing in them is more-riskier, they are not insured by Deposit Insurance and Credit Guarantee Corporation (DICGC). Investing via debt funds is the ideal route.

2. Senior Citizen FDs: Investors aged more than 60 years are eligible to invest in Senior citizen FDs. They carry higher interest than regular FDs.

3. Tax Saving FDs: Unlike regular FDs, they provide tax benefit of up to INR 1,50,000 under section 80C but comes with a lock-in period of five years.

Options for Senior Citizens

1. Senior Citizen Savings Scheme (SCSS): SCSS is a post office scheme offered to senior citizens, i.e., 60 years and above. The interest rate in SCSS is higher as compared to other options, and also tax benefit under section 80C is there. However, a maximum of INR 30 lakhs can be invested in this, and they come with a lock-in period of five years.

2. Bank FDs: As the name suggests, senior Citizen FDs are targeted to senior citizens only. They offer higher interest rates and flexible tenure as compared to regular bank FDs. However, no tax benefit is available in such FDs.

Why Alternate Options?

Now, you will ask why all this when one can simply invest in FDs, well there are multiple reasons:

1. Taxation: Capital gains from fixed deposits are taxed as per your income slab rate. If you fall in the bracket of 30%, then it might not be efficient for you.

2. Maturity: For long-term investment, FDs provide fewer options. In Bonds, you can even invest for 40 years.

3. Safety: After recent cases of PMC and Yes Bank, we can say that FDs are not 100% safe and so are the other investment option. Generally, the central govt. issued securities like Treasury Bills, Bonds are the safest instrument to invest as they are backed by Sovereign Guarantee. If such securities give higher returns, then investment in these is preferred over regular FDs.

Fact: Bonds issued by State Government / State Development Loans (SDLs) generally provide higher returns than regular bank FDs.

4. Withdrawal: In case of premature withdrawal in FDs, one has to pay penalties. However, in the case of instruments like bonds, you can sell in open market as well, even before the maturity (considering enough liquidity is available). Further, if market conditions are in favour of you, then apart from fixed coupons, you can also get capital gains.

Conclusion

FDs are the most preferred investment option in India, but considering their recent fiasco and returns potential, exploring other investment options as per risk appetite and investment horizon can provide better diversification and safety. Few can give you better returns, and few instruments are more tax efficient.

Consider the risk profile, investment horizon, and financial goal, then select the best available option that aligns with your goal and invest money there.

Frequently Asked Questions (FAQs)

Which is more liquid: Liquid funds or Short duration funds?
Liquid funds.
What is the maximum limit to invest in Senior Citizen Savings Scheme (SCSS)?
One can invest up to INR 30,00,000 in SCSS.
What are the investment options in which tax benefit under section 80C is available?
Tax Savings FDs, National Savings Certificate (NSC), ELSS Funds, SCSS for Senior citizens, etc.
Are Fixed Deposits insured in India?
Fixed deposits in India are secured till INR 5,00,000 by Deposit Insurance and Credit Guarantee Corporation (DICGC).

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

December 19, 2023

Category: Investing

Top Alcohol Stocks In India

Alcohol Market Overview

Did you know?

Market Segment

Indian-Made-Foreign-liquor (IMFL)

Indian-made-Indian Liquor (IMIL)

Beer

Wine

Top Stocks Companies of Alcohol in India

1. United Spirits

2. Sula Vineyards

3. United Breweries

4. Radico Khaitan

5. Tilaknagar Industries

6. Globus Spirits

7. Som Distilleries and Breweries

Factors Affecting Liquor Stocks

Market Capitalisation and Current Price

Conclusion

Frequently Asked Questions (FAQs)

What is the full form of IMFL?

Mention the top alcohol stocks of India.

What factors can affect the alcohol stocks?

How many listed alcohol stocks are there on Indian exchanges, i.e., NSE and BSE?

Who manufactures “Rampur” whiskey which recently won the best world whisky award in the prestigious John Barleycorn awards?

Regular vs Direct Mutual Funds: Make The Right Investment Decision

What are Mutual Funds

Benefits of Investing in Mutual Funds

Regular Mutual Funds

Direct Mutual Funds

Regular Mutual Fund vs. Direct Mutual Fund

Breakdown of Expenses

How to identify a Mutual fund as Direct or regular?

Impact of Expense Ratio on Returns

Conclusion

Frequently Asked Questions (FAQs)

What is the difference between direct and regular mutual funds?

Which is better: Direct or Regular Mutual funds?

Can I change my investment plan from a regular to a direct mutual fund?

Which one gives higher returns?

How to know the expense ratio of regular and direct plans of the same scheme?

A Guide To Fixed Deposits: Exploring Types And Interest Rates

What is a Fixed Deposit?

Did you know?

Types of Fixed Deposits

Regular Fixed Deposits

Senior Citizen Fixed Deposit

Tax-saver Fixed Deposit

Flexi Fixed Deposit

Cumulative Fixed Deposit

Non-Cumulative Fixed Deposits

Corporate FD

Difference between Bank FD & Corporate FD

Tips for maximising FD Returns

Factors Affecting FD Interest Rates

Inflation

Repo Rate

Tenure

How to choose the right FD

Conclusion

FAQs

What is FD?

Are interest rates of FD similar in every bank?

What is Repo Rate?

Does the bank levy a penalty on pre-mature withdrawal of FDs?

What is the lock-in period of Tax Saving FDs?

Decoding Credit Risk Funds In India

What are credit risk funds?

How do Credit Risk Funds work?

Advantages of Credit Risk Funds

Disadvantages of Credit Risk Funds

Impact of Interest Rate Changes on Credit Risk Funds

Risks associated with Credit Risk Funds

Credit Risk

Liquidity Risk

Concentration Risk

Interest Rate Risk

Credit Risk Funds vs. Other Mutual Funds

Historical Performance of Credit Risk Funds