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What is a Smart Beta ETF?

While investing in the stock market we might have often heard about ETFs or exchange traded funds. A standard ETF, like one that tracks the Nifty 50, which is like a basket of stocks where the biggest companies get the biggest share. This is simple, but it means you end up putting more money into stocks that are already large and popular.

But what if you can invest in more smarter ways and build a smarter basket. This is where the smart beta ETF is for, instead of just focusing on a company’s size, a smart beta ETF picks and weighs stocks based on other specific traits or “factors”, like whether a stock is undervalued, has stable earnings, or pays good dividends. It’s a strategic approach that blends the low-cost, rule-based nature of a passive ETF with the intelligent stock-picking ideas of active investing.

What is an ETFs?

Exchange Traded Funds, or ETFs are a basket of stocks where instead of buying one share of one company, you buy one unit of an ETF that has small pieces of many companies at once, making your investments diversified and not concentrated in just one or two stocks. It’s a simple way to get diversification and usually comes with lower fees.

Generally, ETFs that track the Nifty 50 choose companies based on their size, or market capitalization. Market cap is calculated by multiplying a company’s share price by the total number of shares it has. This method is called “market-cap weighting.” In such ETFs, bigger companies get a larger share of the basket. That’s why a large company like Reliance Industries affects the Nifty 50’s performance much more than smaller companies in the index.

What are Smart Beta ETFs?

Smart ETFs are an investment product that fall in between purely investing in Nifty 50 ETF and fully active investing in selected stocks. Index is used for benchmarking in Smart Beta ETF. A smart beta fund tracks an index, just like a regular ETF, but the main focus is not only on the market cap, it is built using a transparent, rules-based system that focuses on specific characteristics or factors, which is the main idea behind Smart Beta ETFs.

The rules used for these Smart Beta are pre-defined that are followed automatically. For example, a rule might be, “From the Nifty 100 stocks, only select companies that have low debt and stable earnings.” This makes the process transparent and removes emotional decision-making.

Smart Beta ETF is now becoming popular amongst the investors and the options for these alternatives in India are growing as smart beta takes the proven ideas that expensive active fund managers have used for years and puts them into an automated, low-cost, and transparent ETF format.

Factors Affecting Smart Beta ETFs

Value: The goal here is to find out a high-quality brand that is at a low P/E ratio as in this strategy the focus of buying the stocks is to get stocks that seem cheap compared to their actual business worth.
Quality: Here the strategy for an investor is to opt for the stock of companies that have strong management, well managed working with stable earnings, low debts, and strong financials.
Low Volatility: This strategy focuses on stocks with smoother price moves as this helps in reducing overall portfolio risk and standard deviation.
Momentum: This strategy helps in investing in such stocks that have a positive upward trend with a hope that the trend will continue to move upwards.
Dividend Yield: The strategy focuses on regular dividend yielding, which becomes a popular choice for investors looking to earn a regular income from their investments.
Equal Weight: In this strategy every stock gets the equal share rather than giving preference to the bigger companies only, equal-weight share improves diversification and reduces the risk of dependence only on big companies and their performance.

Know More: Calculate returns on ETF investments.

Benefits of Smart Beta ETFs

Risk-Adjusted Returns: With smart beta, it is not just about higher returns, but fulfilling better returns for the risk taken. These ETFs focus on factors that have performed well historically in an attempt to outperform traditional market cap funds over a long time.
Enhanced Diversification: As we explained, a Nifty 50 ETF is often overweighted to the top 5 or 10 stocks. Smart beta strategies that focus on equal weighting invest more evenly across a greater number of stocks. This diversification helps to mitigate the risk of one or two large stocks underperforming and the impact of those stocks dragging down the whole portfolio.
Rule-Based Approach: These rules, or rather strategies, have distinct advantages which are often overlooked. Pre-defined rules help to overcome emotional biases and behavioral mistakes which can negatively impact the portfolio. Smart beta ETFs have rules which are set so that there is no room for emotional decision making. For instance, a value ETF is programmed to sell stocks which are deemed expensive and purchase stocks which it considers to be cheap, is an example of forcing you to operate in a buy low, sell high mentality.
Cost-Effectiveness: Though Smart Beta ETFs can be a little expensive than most of the passive ETFs, they are generally much cheaper than actively managed mutual funds pursuing similar factor strategies.

Read Also: Small-Cap ETFs to Invest in India

Risks of Smart Beta ETFs

Of course, no investment is without risk. It’s important to have a balanced view and understand the potential downsides.

Factors Can Underperform: Out of all the risks, this is the most important to understand. Every factor has losing streaks. There can also be long periods of years when a value strategy lags behind the market, whereas a momentum strategy fails during a sudden market crash.
Limitation of Backtesting: A lot of smart beta strategies “work” in “back-tests” or simulation-based on past data strategy. But as every investor knows, past performance is no guarantee of future results. A strategy that worked every decade doesn’t seem plausible to work for the next decade.
Higher Costs and Complexity: Smart Beta ETFs, owing to their complex nature in both design and management, charge a conditionally higher expense ratio as compared to the plain and simple INDEX ETFs. Although the difference may be small, it is still evident.
Lower Liquidity: Out of the newer or more niche smart beta ETFs in India, some might have comparatively lower liquidity, or volume of participants to buy and sell parts of the ETF on a daily basis. It may not be a major concern for most small investors, but it may pose a challenge for those looking to trade a considerably large volume of the ETF in a short time.
The Psychological Challenge: Smart beta ETFs are designed to perform differently from the main market. This difference is called “tracking error.” While this is intentional, it can be mentally tough. Imagine the Nifty 50 is up 20% in a year, but your low volatility ETF is up only 8%. It’s easy to feel like you’re missing out and be tempted to sell at the wrong time. Sticking with the strategy requires conviction.

Why Do Investors Choose Smart Beta ETFs?

Smart beta ETFs are selected by the investors because they look for more strategic investments rather than just buying randomly from the market and also investors don’t want to pay the high fees or rely on the judgment of an active fund manager. They offer a middle ground that is rules-based, transparent, and cost-effective.

It is for investors who want to buy quality companies stock or undervalued stocks for the long-term as Smart Beta ETF allows the investors to make the investments simpler and in a disciplined way.

Conclusion

Smart beta ETFs are not just simple ETFs but they are new powerful and innovative tools that are designed for modern investors like you. Though you need to keep in mind that they do not provide guaranteed high returns but they provide a strategic investment plan to build your portfolio.

The strategy to invest in Smart beta ETFs depends upon your investment goals, as understanding the right strategy with patience can help you excel your financial goal.

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Frequently Asked Questions (FAQs)

Do Smart beta ETFs give guaranteed returns?
No, the returns in smart beta ETFs are not guaranteed but they are designed with a potential to give better risk-adjusted returns in the long run, but the chances of their performance is greater than Nifty 50 ETFs in the long term.
Are smart beta ETFs actively managed?
No, smart beta ETFs are not actively managed. They are best described as a hybrid. The strategy behind Smart Beta Indices is active (e.g., choosing focus, value, etc.), but the fund itself is managed passively. A human fund manager is not making daily buy or sell decisions.
Difference between a smart beta ETF and a normal Nifty 50 ETF?
In a Nifty 50 ETF the focus is more on the bigger companies based on the market capitalization. On the other hand, smart beta ETF deals differently by giving weightage to companies based on factors like low price, financial health or low volatile company.
Are smart beta ETFs expensive?
Smart beta EFTs are expensive compared to the traditional index ETFs, but they are less expensive than actively managed mutual funds.
Are smart beta funds suitable for beginners?
They can be, but it’s important for a beginner to first understand the basic concept of an index ETF. If you are willing to learn about the specific factor (like value or quality) and understand that the fund will behave differently from the main market, it can be a good addition to your portfolio.

October 16, 2025

Best Intraday Trading Apps in India

Have you ever thought of making money in a single day by trading? This is what you can do in Intraday Trading, by investing your money in the stock market and you buy stocks and sell them on the same day, hoping to profit from the small price changes that happen throughout the day.

Let’s say you see a stock at Rs.100, you believe it will go up to Rs.103, on that day and you buy it, and if it moves to a desired price, you sell it and earn Rs.3 profit per share giving you the profits before the market closes.

But for quick decision making you need to have an Intraday trading app, a good app needs to be fast, easy to use, and reliable. But the market has so many intraday trading apps and finding the best app for intraday trading in India can feel overwhelming.

In this blog we will get to know the top intraday trading apps in India and learn their features and uses.

Top 10 Intraday Trading Apps in India

1. Pocketful

Pocketful is a new-age platform built for traders who like technology and information at one place. Pocketful provides powerful tools like algo-trading and options strategy making trading simpler for everyone. It offers a complete trading platform paired with easy-to-understand educational content, helping users learn and invest in one place without feeling overloaded.

It makes powerful tools like algo-trading and options strategy simple for everyone.Pocketful GPT helps you achieve Smart AI that analyzes portfolios, researches markets, and designs strategies.

Stock in News which provides updates on stocks in your holdings, watchlists, results, global news, corporate actions, and markets. Additionally, Pocketful delivers updates via WhatsApp, including dividends, IPOs, and other important corporate actions. Though pocketful is a newer player, it focuses on its cutting-edge tech. Providing zero account opening fees, zero annual maintenance charges, and zero equity delivery charges.

2. Upstox

It is a financial stock broking app that is backed by people like Ratan Tata, Upstox is a powerhouse app built for speedy stock services. It is best suitable for people who frequently trade during the day.

It offers charting tools from both TradingView and ChartIQ. You can also place ‘basket orders’ to buy or sell up to 20 different stocks at once with a single click.

With so many features, it can feel a little complicated for a total newbie. Active traders who need a fast and powerful platform.

3. Groww

Groww is incredibly popular with beginners because it is very easy to use. If you’re new to the market, this is a great place to start, learn and invest.

The app’s design is clean and easy to understand. It also offers ‘OCO’ orders, where you can set your target price and your safety-net stop-loss at the same time.

It is made for all the young population that can do hassle free trading without studying and investing too much time on learning but the advanced traders might miss some of the deeper analytical tools found on other platforms.

4. Angel One

Angel One is one of the pioneers in the stock broking field, and it is a mix of long legacy and modern tech.

The app also offers ‘Smart Orders’ to help you trade automatically and an AI engine called ARQ Prime that gives you stock market ideas. They also provide a good margin facility if you want to trade with more capital than you want to invest.

The app is packed with features and is best suited for anyone who wants a good mix of modern tools and expert research.

5. Zerodha Kite

Zerodha is one of the leading stockbrokers of India, and their app, Kite, is famous for super fast user experience and clean user interface. It is one of the most relied on apps among the experienced traders for Intraday trading and much more.

Kite has detailed stock charts and financial information with over 100 tools to help you analyze your preferred stocks. You can also set ‘Alert Triggers Orders (ATO)’ which automatically places a linked basket of orders on the exchange when a Kite alert is triggered. In ATO, market orders are placed with market price protection.Alert Triggers Orders (ATO) is a feature that automatically places a linked basket of orders on the exchange when a Kite alert is triggered. In ATO, market orders are placed with market price protection.

Zerodha gives you the stock analysis and the holistic company information, but it does not give you stock investment tips. Traders who are comfortable with charts and numbers can use the information, making their own decisions.

6. ICICI Direct

ICICI is one of India’s biggest banks, ICICI Direct is one of its segments for trading in the financial market which comes with a super convenient 3-in-1 account that links your bank, trading, and demat accounts together.

Moving money in and out is instant and seamless because your bank account is already linked to your trading account. The app also has great charts and special tools for scalping, which helps them in instant decision making.

The cost for trading was more expensive, but with new players in the market the price has also become competitive. It is best suited for ICICI Bank customers who need everything at one place.

7. Fyers

Fyers is a platform built by traders, for traders which has become a huge hit among people who like charts and numbers. It offers one of the best TradingView experiences, letting you trade directly from the charts, which is a huge time-saver. It also has a special ‘Options Scalper’ tool for quick options trades.

Fyers is designed for technical traders, so it might be a little complicated for the beginners who need guidance throughout. It is best suited for traders who can understand and use technical data and available tools.

8. 5paisa

5paisa is a great choice if you’re looking for a low-cost app that is packed with advanced features. It’s perfect for budget-conscious traders as you can subscribe to different plans that lowers your brokerage fees and even more.

5paisa has powerful TradingView charts and a stock screener to help you find good trading opportunities during your intraday trades. Although the best research features are locked behind their paid plans.

9. IIFL Markets

IIFL is another experienced broker which provides a solid trading app. Their biggest strength is the high-quality research and stock tips they provide to their clients. Traders get access to expert research reports, which is great if you need ideas on what to trade.

The app also has a ‘Buzz’ feature that keeps you updated with the latest market news so that you can make the right move during your Intraday trade.

It’s a full-service broker, and so it’s a little costlier and does not have a flat-fee as other discount brokers. Traders who like to have expert opinions to back up their intraday decisions can rely on IIFL Markets.

10. Paytm Money

Paytm money is the trading segment from the makers of Paytm, the app is all about making trading simple and accessible for the mass audience. The platform has user friendly tools making it easier to start trading.

The app’s clean and quick design helps in making the intraday trades smooth and quick. It also supports important tools like GTT orders and Bracket orders to help you manage your risk.

It currently focuses on stocks and F&O only, commodities so you can’t trade commodities or currencies on it. It is best suitable for Beginners and Paytm users who want a simple, no-fuss trading app.

Key Indicators of Intraday Trading Apps

Intraday App	Best Suitable For	Intraday Brokerage (Equity)	Intraday Features
Pocketful	Options & Algo Traders	Flat ₹20 or 0.03% (whichever is lower)	Strategy Builder, No-Code Algo, Advanced Order Types, Trailing SL
Upstox	Active traders who make lots of trades	Flat ₹20 or 0.1% (whichever is lower)	Great charting tools, powerful web version, place multiple orders at once
Groww	Absolute beginners	Flat ₹20 or 0.01% (whichever is lower)	Super simple design, OCO orders (target & stop-loss together)
Angel One	Traders who want research & tips	Flat ₹20 per or 0.3% executed order	Smart Orders, AI-based stock ideas, margin trading facility
Zerodha Kite	Experienced traders who love charts	Flat ₹20 or 0.03% (whichever is lower)	Amazing charts, GTT orders (set & forget), helpful warnings
ICICI Direct	ICICI Bank customers	Flat ₹20 per executed order	3-in-1 account (bank + trading), advanced charts, special order types
Fyers	Charting experts & technical traders	Flat ₹20 or 0.03% (whichever is lower)	Top-tier TradingView experience, special tool for options scalping
5paisa	Budget-friendly trading	Flat ₹20 per executed order	Good charts, stock finding tools, low-cost subscription plans
IIFL Markets	People who like expert advice	Flat ₹20 per executed orde	In-depth research reports, stock tips, market news feed
Paytm Money	Simplicity and ease of use	Flat ₹20 or 0.05% (whichever is lower)	Very clean design, GTT orders, essential risk management tools

Intraday Trading Basics

Let’s have a look at the simple rules of intraday trading you should know.

Fixed Time: Traders need to make sure that they close all their positions before the market closure or before 3:30 PM in intraday trading to avoid fees or losses.
No Ownership: Since you buy and sell the stocks on the same day, they never actually enter your demat account, providing no ownership. In intraday you just trade on the price movement.
Leverage/Margin: This is like a small loan from your broker for the day to buy more shares than you can with your own capital, resulting in more profits, but it can also magnify your losses as well.
Short Selling: You can sell a stock first at a high price (even if you don’t own it) and buy it back later when the price drops and the difference you get is the profit.

Advantages and Disadvantages of Intraday Trading

Advantages

Daily Gains: You can make money fast and skip the weeks or months of money invested as in intraday trading you can make profits (or losses), same day.
No overnight stress: As the stock is traded on the same day so you know your net loss and profit giving you a clear picture without the risk of market fluctuations due to overnight news.
Power of Leverage: Leverage allows you to take bigger positions than your capital would normally allow.
Profiting from short selling: You can make profits even when the market is down, a falling market can become an opportunity.

Disadvantages

High Risks: Most people who try intraday trading lose money so it is not easy, as there is constant market fluctuations.
Stressful: Watching the market go up and down can lead to an emotional decision, leading to bad decisions.
Full-time job: You can’t just check in once or twice during the day as successful day trading requires you to watch the market constantly.
Added costs: You pay small fees on every trade you make on that day and if you trade a lot, fees can eat your profits.

Read Also: Best Trading Apps in India

Conclusion

There is no single best intraday trading app that fits everyone. The right choice is personal. If you love charts, Zerodha or Fyers can be opted. If you’re a beginner, start with something simple like Pocketful as you can also experiment with automated trading. Pocketful has some really advanced, user-friendly tools. And if you prefer getting expert advice, Angel One or IIFL Markets are great options. And remember the best advice is to start small, learn every day, and always trade responsibly.

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Frequently Asked Questions (FAQs)

What if I forget to sell my stocks before market closure?
The broker automatically sells it known as “auto square-off”, usually this is chargeable and a penalty is levied typically around Rs.50 + gst per trade.
Can day trading be started from Rs.1000?
Technically, yes but it’s very hard to get profit out of it and if there is some small profit then the fees can evade your gains. You can learn using such a small amount and know how the market works.
When is the best time of day to trade?
Many traders find the most action happens in the first hour (9:15 AM – 10:15 AM) when the market opens, and the last hour (2:30 PM – 3:30 PM) before it closes. The market tends to move the most during these times.
How are intraday trading profits taxed?
They are treated as ‘speculative business income’, which means the profit is added to your total income and taxed based on your income tax slab.
What is a ‘stop-loss’ in simple terms?
A stop-loss is your safety net where you can sell the stock at the desired price automatically if it starts to fall, as a falling stock can erode your initial investments.

October 16, 2025

Tata Capital Case Study 2025: Growth, Business Model & IPO Analysis

Imagine you are now a settled individual and thinking about the next big goal of your life like buying a house, funding your child’s education or maybe starting a new venture. To make this happen you might need a financial partner to meet your goals, today we are going to know about a company that is built on this very idea.

Overview of Tata Capital

Tata Capital’s journey from a new player in 2007 to a financial leader is a tale of steady and smart growth.

The company set up its main businesses by launching a special division for home loans, Tata Capital Housing Finance, in 2008 and Tata Capital expanded quickly, offering all kinds of loans for homes, cars, businesses, and personal needs. Seeing that the future was online, the company focused on its website and apps. This made getting a loan faster and easier for everyone, even in smaller towns.

The company’s total lending crossed Rs.1 lakh crore and then doubled to over Rs.2 lakh crore in just a few years. In 2025, it took the big step of launching its IPO to be listed on the stock market. Led by CEO & MD Rajiv Sabharwal, the company is guided by the strong ethical principles of the Tata Group. This means it is run with honesty and transparency, which is a big reason why people trust it. The company has a simple promise ‘We only do what’s right for you’ (‘Karein wahi jo aapke liye sahi’), this isn’t just a slogan; it shows their vision to be a “Responsible Financial Partner fulfilling India’s Aspirations”. The company has five core values: Integrity, Responsibility, Excellence, Pioneering, and Unity.

Products and Services of TATA Capital

For Individual or Families:

Personal Loans: This is for personal use like weddings, a holiday, or a medical emergency.
Home Loans: For customers that want to buy, build, or even fix up your dream home.
Vehicle Loans: For customers who are looking for new and used cars, and also for bikes and scooters.
Other Loans: Here you can also get loans by using your property or investments (like shares) as security.
Credit Cards & Insurance: These products are also available for its users.

For Businesses:

Business Loans: Here small and medium businesses can get loans to grow, buy new machines, or manage their daily costs.
Commercial Finance: High capital loans for large companies and big projects like roads and bridges.
Cleantech Finance: TATA Cleantech Capital is a company that provides loans for green projects like solar and wind projects.

Wealth Management and Digital Tools:

Wealth Services: If you are looking for expert advice for your financial future and want to manage your investments, TATA group will also help with this.
Moneyfy App: This is the mobile app used for investing, in this you can start investing in mutual funds with just Rs.500, which helps more people join the financial system.

Market Presence and Reach

Geographic Coverage: TATA capital has over 1,500 branches in more than 1,100 towns and cities, giving customers easy access.
Customer Segments: They help a wide variety of people and businesses from retail everyday people like you and me, small and medium-sized businesses, which are the engine of our economy and Corporate like big, well-known companies.
Digital Footprint: TATA capital has advanced websites and financial apps like TATA capital and Moneyfy. Users can easily apply for loans, invest and even keep an eye on their account. With its strong physical and online presence it caters to both tech savvy and technologically obsolete people.

TATA Capital Business Model

There are two main streams of income of TATA Capital. First is the Interest on Loans which is their biggest earner and second is the fees for services like the processing fees for loans or loans or commissions for selling insurance and mutual funds.

Value Proposition

Reliable Brand: The “Tata” name means safety, honesty, and good service.
All in One: You can get all your financial needs met here, from loans to investments. It’s convenient.
Easy Availability: With branches and apps, they are easy to reach, no matter where you live in India.
Diversified product and services: They have a solution for almost every financial goal, which means they can help a lot of different people.

Key Partnerships and Channels

TATA capital has aligned with other TATA group companies, for example they partner with TATA Motors to offer affordable car loans directly from the outlets and it has also collaborated with TATA Housing from home loans. This helps in getting customers from multiple sources which is a major problem for other companies.

Marketing Strategy of Tata Capital

Brand Positioning

The brand is portrayed like a partner who helps in achieving your dreams, their ads give you the opportunities that you are looking for like buying a car or buying a new house or even if you require funds for your next business project, the brand has a tagline “Count on us” ensuring trust and reliability for customers.

Target Audience

They look for people that are looking to make change for themselves or their families like a young person who wants to have a new house for his family and a car for their use or someone who is looking to start a new venture. Also to amplify their brand they have chosen Shubman Gill as their brand ambassador to connect with a younger, ambitious audience that values trust.

Advertising Campaigns

‘Mitaye Faasle’ (Bridge the Distances): In this campaign the users are shown how problems related to money can create emotional distancing among the families and how TATA capital can solve all these problems.
‘Apne Mann ki Karo’: This campaign used humour to talk about their flexible loans, connecting with people in a fun, light-hearted way.
Digital Presence: They are very active on social media like Facebook and Instagram, sharing useful tips and information for their followers.

Customer Engagement & CSR

The company is connecting with the mass audience by sponsoring big events like IPL (Indian Premier League), making the brand very prominent and visible to the audience. The company also does social work (CSR) in various sectors like health, education and the environment, which helps companies to strengthen their image which shows that the company cares about their targeted audience.

Financial Analysis of Tata Capital

Total Income: Tata Capital profit had a 56% jump from the previous year as the company earned about Rs. 28,370 crore.
Profit: The profit earned was Rs. 3,655 crore after all the taxes and expenses.
Total Loans (AUM): Tata Capital lent out the massive amount of Rs.2.33 lakh crore by June 2025.

The company is growing but the most important thing for a company is to get back the loans issued to the customers so one should keep an eye on the Non-Performing Assets because this is the loan percentage that is under risk. As of June 2025, Tata Capital’s Gross NPA was 2.1% and its Net NPA was 1%, which is considered healthy.

The company even launched its IPO in October 2025 which showed a steady response. The company has a focused and a stable approach which was also seen in its IPO where the IPO was priced fairly to attract people that are looking for long term growth rather than making quick profits.

SWOT Analysis of Tata Capital

A SWOT analysis is a simple way to see a company’s Strengths, Weaknesses, Opportunities, and Threats.

STRENGTHS	WEAKNESSES
The Trusted Tata Brand: Their biggest advantage. People trust the name.	Lower Profit Margins: They earn a bit less profit on each loan compared to some top competitors like Bajaj Finance.
Many Different Products: This reduces risk. If one area is slow, others can do well.	Complex to Manage: Running such a large and diverse business can be difficult and costly.
Strong ‘Phygital’ Network: They are present everywhere, both with branches and online.	Depends on Parent Group: While a strength, any trouble for the main Tata Group could affect them.
Good at Managing Risk: They have a good record of keeping bad loans (NPAs) low.
OPPORTUNITIES	THREATS
Lending to Small Businesses & in Villages: There’s a huge opportunity to provide loans to small businesses and people in rural India.	Tough Competition: They face strong competition from big banks, other NBFCs, and new fintech startups.
Growth of Digital Services: More people are using smartphones, creating a chance to offer more digital-only products.	Stricter Rules: The RBI is making rules for big NBFCs stricter, which could affect their business.
Boom in Green Energy: India’s focus on clean energy is a big opportunity for their special green finance division.	Economic Slowdowns: If the economy slows down, more people might struggle to repay loans.
Helping More People Get Loans: A chance to give financial services to millions of Indians for the first time.	Issues at the Top: Any problem at the very top of the Tata Group could harm the brand’s reputation.

Conclusion

The story of Tata Capital shows how to build a financial powerhouse on a foundation of trust. The success of the company was dependent on their use of both the branches and technology which can serve everyone. The success totally depends on their wide range of products and by smartly using their network in a balanced way.

Tata Capital’s future looks bright as they have big opportunities like lending money to small businesses as they grow their digital offerings.The company also faces many challenges through new rules and regulations and their arch rivals. Tata Capital’s had grown themselves through a steady and responsible way. It’s not about quick growth and risky bets. The company has stuck to their core values, and set themselves to remain as a trusted financial partner for their mass audience and years to come.

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Frequently Asked Questions (FAQs)

What is the business of TATA Capital?
Tata Capital is a large financial services company that majorly provides loans like home loans, car loans, and business loans to people and companies. It also helps people invest their money and offers insurance.
Why is the Tata brand so important for Tata Capital?
In the world of money, trust is everything. The “Tata” name immediately makes people feel that their money is safe and the company is honest. This is a huge advantage over its competitors.
What is the ‘Tata Capital Business Model’ in simple terms?
Their business model is “diversified.” Think of it as not putting all your eggs in one basket. They offer many different types of loans and services, so if one area isn’t doing well, the others can support the business. This makes them very stable.
Why wasn’t the Tata Capital IPO a blockbuster hit on day one?
The IPO was priced for long-term investors who believe in the company’s steady growth, not for traders looking to make a quick profit. Analysts believe it’s a good investment for the long run.
What is a simple SWOT analysis of Tata Capital?
Its biggest strength is the trusted Tata brand. Its main weakness is that it makes a little less profit on its loans compared to some rivals. A big opportunity is to give more loans to small businesses in India. The biggest threat is the tough competition from banks and new online finance companies.

October 15, 2025

Best Pharma Mutual Funds in India

Pharma mutual funds and healthcare mutual funds are emerging as a great option for investors in 2025. Increasing healthcare needs, government schemes and increasing expenditure on research are strengthening this sector. In such a situation, the pharma sector mutual fund is useful for those who want stable and safe returns over a long period of time. In this blog, we will know which are the best pharma mutual funds India 2025, and how they can make your portfolio balanced and profitable.

What Are Pharma Sector Mutual Funds?

Pharma sector mutual funds are mutual funds that invest primarily in companies in the pharmaceutical, healthcare services, diagnostics, medical devices and biotechnology sectors. As per SEBI regulations, any sector fund is required to invest at least 80% in the same sector.

Investment focus : Pharma mutual funds in India focus specifically on healthcare innovation, diagnostics, medical equipment and drug manufacturing. This way, investors can directly connect to the growth story of that sector.
Difference from diversified funds : While diversified mutual funds spread investments across many different sectors (such as IT, banking, consumer goods), pharma sector mutual funds focus only on the healthcare and pharma industry. This is why the potential returns may be higher, but the risk is also higher.

Best Pharma Sector Mutual Funds 2026

Fund Name	Current Nav	AUM	3 years return	5 year Return
Nippon India Pharma Fund	₹512.99	₹8113.59Cr	22.21%	16.99%
SBI Healthcare Opportunities Fund	₹433.98	₹3933.26Cr	25.77%	18.86%
Tata India Pharma & Healthcare Fund	₹30.75	₹1295.83Cr	22.87%	17.27%
UTI Healthcare Fund	₹292.65	₹1096.95Cr	25.10%	17.28%
ICICI Prudential Pharma Healthcare & Diagnostics Fund	₹40.42	₹6226.82Cr	28.40%	20.07%
DSP Healthcare Fund	₹39.12	₹3106.92Cr	23.00%	16.96%
LIC MF Healthcare Fund	₹29.88	₹85.19Cr	20.52%	13.77%
Mirae Asset Healthcare Fund	₹39.02	₹2761.64Cr	21.63%	17.17%
Aditya Birla Sun Life Pharma & Healthcare	₹31.21	₹829.63Cr	22.14%	15.27%
ITI Pharma and Healthcare Fund	₹16.40	₹226.5Cr	20.47%	–

(Data as on 14-10-2025)

1. Nippon India Pharma Fund

Nippon India Pharma Fund has a minimum SIP of ₹100 and is managed by Sailesh Raj Bhan. The fund invests in leading companies like Sun Pharma, Divi’s Labs, Lupin, Cipla, Dr. Reddy’s and Apollo Hospitals. The portfolio also includes companies like Medplus, Vijaya Diagnostic, GSK Pharma and Gland Pharma.

2. SBI Healthcare Opportunities Fund

SBI Healthcare Opportunities Fund has a minimum SIP of ₹500 and is managed by fund manager Tanmaya Desai. It invests in Sun Pharma, Divi’s Labs, Max Healthcare, Cipla, Lonza Group and Lupin and is suitable for long-term investors in the healthcare sector.

3. Tata India Pharma & Healthcare Fund

The minimum SIP of Tata India Pharma Fund is ₹100 and it is managed by Rajat Srivastava. The portfolio includes Sun Pharma, Cipla, Apollo Hospitals, Lupin, Repo Instruments, Healthcare Global, Torrent Pharma, Aster DM, Fortis and Alkem Laboratories.

4. UTI Healthcare Fund

The minimum investment in UTI Healthcare Fund is ₹500. Led by Fund Manager Kamal Gada, it invests in companies like Sun Pharma, Cipla, Ajanta Pharma, Lupin, Procter & Gamble Health and Dr. Reddy’s.

5. ICICI Prudential Pharma Healthcare & Diagnostics Fund

The minimum investment of ICICI Prudential Pharma Fund is ₹100. It is managed by Fund Manager Dharmesh Kakkad and the portfolio includes Sun Pharma, Dr. Reddy’s, Divi’s Labs, Cipla, Aurobindo Pharma, Lupin, Mankind Pharma, Alkem, Biocon and Tri-Party Repo.

6. DSP Healthcare Fund

DSP Healthcare Fund has a minimum investment of ₹100 and is managed by Chirag Dagli. The portfolio includes Cipla, Sun Pharma, Ipca Labs, Cohance Lifesciences, Laurus Labs and Gland Pharma.

7. LIC MF Healthcare Fund

LIC MF Healthcare Fund has a minimum SIP of ₹200. Led by Fund Manager Karan Doshi, it invests in Sun Pharma, Apollo Hospitals, Torrent Pharma, Cipla, Tri-Party Repo and Divi’s Labs.

8. Aditya Birla Sun Life Pharma & Healthcare Fund

Aditya Birla Sun Life Fund has a minimum SIP of ₹100. Fund Manager Dhaval Shah manages it and the portfolio includes Sun Pharma, Apollo Hospitals, Cipla, Fortis Healthcare, Abbott India and Torrent Pharma.

9. Mirae Asset Healthcare Fund

Mirae Asset Healthcare Fund has a minimum SIP of ₹99. Fund Manager Vrijesh Kasera manages it and the portfolio includes Sun Pharma, Divi’s Labs, Glenmark Pharma, Aurobindo Pharma, Cipla, Apollo Hospitals, Lupin, Dr. Reddy’s, Krishna Institute and Cohance Lifesciences.

10. ITI Pharma and Healthcare Fund

ITI Pharma Fund has a minimum SIP of ₹500 and is managed by Rohan Korde. The portfolio includes Sun Pharma, Divi’s Labs, Max Healthcare, Apollo Hospitals, Cohance Lifesciences and Torrent Pharma.

Why Consider Pharma Mutual Funds in 2026?

1. Continuous increase in demand

The demand for healthcare and medicines has increased rapidly after the COVID-19 pandemic. This has made “Pharma Mutual Funds” an attractive option for investors as they offer stability along with good returns.

2. Export boom and India’s global role

India’s pharma exports reached $27.9 billion in FY 2023-24, which is about 9.3% higher than the previous year. This growth was almost double the global average.

India is now called the “Pharmacy of the World” as it supplies more than half of the world’s generic medicines. India alone meets 40% of the US and 25% of the UK’s generic drug needs.

3. Government initiatives

The PLI (Production-Linked Incentive) scheme of the Government of India has given new impetus to the pharma sector. Investment and production capacity in projects related to drugs and medical devices have increased rapidly. These initiatives have made pharma mutual funds even more attractive for investors.

4.Strong domestic demand base

Increasing diseases, lifestyle challenges and ageing population in India are continuously increasing the demand for healthcare services. Also, the coverage of health insurance is also expanding rapidly, giving an additional boost to the pharma sector.

5. India on the global supply chain

India’s drug manufacturing capacity and quality standards (such as US-FDA and WHO-GMP) have continuously improved. Due to this, it has become a reliable part of the global supply chain and India’s role in the pharma industry has become stronger.

Key Things to Check Before Investing in Pharma Sector Mutual Funds

Performance record of the fund : Before investing in a pharma sector mutual fund, make sure to look at the CAGR (Compound Annual Growth Rate) of the last 3 years and 5 years. Funds that consistently perform well are considered reliable.
Expense ratio : Sector funds often have a slightly higher expense ratio. Funds with a lower expense ratio can give better returns for investors in the long run.
Expertise of the fund manager : Since pharma is a niche sector, it is very important to have an experienced fund manager. Their research and selection capabilities directly impact the returns.
Volatility : Pharma funds are defensive in nature but during a bull run, they can give lower returns than sectors like IT or banking. Investors should be prepared for this volatility.
Investment period : These funds are better suited for those with an investment horizon of 5 years or more. It is not right to expect them to last for a short period of time.
Who should avoid : Pharma funds are not suitable for investors who are looking for short-term gains or have very low risk.

Risks & Limitations of Pharma Mutual Funds

Sector Dependency : Pharma mutual funds invest primarily in pharma and healthcare companies. This means that if there is a downturn in the sector, the fund’s performance can be directly affected. For example, the success or failure of a new drug, competition and changes in demand in the market can directly impact the NAV.
Regulatory Risk : The healthcare sector is heavily regulated. FDA approvals, new drug policies, changes in drug prices or new government regulations can impact the fund’s performance. Sudden changes in regulations can lead to fluctuations in the fund’s returns.
Volatility : The pharma sector is sometimes very volatile. Events such as the success of new drugs, expiry of patents, mergers or global health crises such as COVID-19 can impact the sector, leading to rapid changes in the fund’s NAV.
Liquidity Risk : Some healthcare funds may have low liquidity. This means that if the investor wants to withdraw money immediately, it may take time. So invest only the amount that you can keep for a long period.
Portfolio Diversification : Investment in these funds is limited to only one sector, so the risk can be high. Therefore, experts recommend that the portfolio should also be invested in other sectors and asset classes so that the overall risk is reduced and the investment remains safe.

Read Also: Top 10 Fund Managers in India

Conclusion

If you want to invest in the health sector, Pharma mutual funds are a practical option. These funds can give good returns in the long term and also provide an opportunity to be a part of the growing demand of the health sector. Yes, sometimes returns can be affected due to fluctuations in the sector or new regulations. So do not rush, do some research and invest only after balancing your money. If you invest money wisely, these funds can become a safe and profitable source for you.

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Frequently Asked Questions (FAQs)

What are Pharma Mutual Funds?
Pharma mutual funds are funds that invest primarily in companies in the pharma and healthcare sector.
Who should invest in Pharma Mutual Funds?
Investors who want to participate in the long-term growth and growing opportunity of the healthcare sector can invest.
Are Pharma Mutual Funds risky?
Yes, there is some risk due to sector volatility and regulatory changes.
What is the minimum SIP amount?
The minimum SIP of most pharma mutual funds starts from Rs 100, but in some funds it can be Rs 500 or more.
How long should I invest in Pharma Mutual Funds?
It is better to have a long horizon of at least 3-5 years in these funds so that the returns are better and stable.

October 15, 2025

Canara HSBC Life Insurance IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Canara HSBC Life Insurance Company Limited, a leading private life insurer jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited, has launched its ₹2,517.50 crore Initial Public Offering (IPO), entirely as an Offer for Sale (OFS) (i.e., no fresh capital is being raised). The IPO opened for subscription on October 10, 2025, with a price band set between ₹100 and ₹106 per share. The subscription window will close on October 14, 2025, and the shares are scheduled to be listed on both the BSE and NSE on October 17, 2025.

Canara HSBC Life Insurance IPO Day 3 Subscription Status

On Day 3, the Canara HSBC Life Insurance Company IPO received a moderate response from investors, closing with an overall subscription of 2.05 times. The Qualified Institutional Buyers (QIB) category led the demand with a subscription of 7.05 times, indicating strong interest from institutional investors. The Non-Institutional Investors (NII) segment recorded a subscription of 0.33 times, showing limited participation from high-net-worth investors. Within this segment, the bNII (above ₹10 lakh) portion was subscribed 0.28 times, while the sNII (less than ₹10 lakh) portion saw a subscription of 0.44 times. The Retail Individual Investors (RII) category recorded a subscription of 0.42 times, reflecting a modest response from retail participants.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	7.05
Non-Institutional Investors (NII)	0.33
bNII (above ₹10 lakh)	0.28
sNII (less than ₹10 lakh)	0.44
Retail Individual Investors (RII)	0.42
Total Subscriptions	2.05

Total Applications: 1,74,847

Total Bid Amount (₹ Crores): 4,055

How to Check Canara HSBC Life Insurance Co.Ltd IPO Allotment Status

Canara HSBC Life Insurance allotment can be easily checked online in two ways: from the Registrar’s website and from the BSE or NSE website. This IPO will be listed on both the exchanges – BSE and NSE, so the allotment status will be available to all investors on both platforms.

Method 1: Registrar’s website (Kfin Technologies Ltd.)

The most reliable way is to check the allotment from Kfin Technologies Ltd.’s website.

How to do:

Visit Kfin Technologies Ltd.’s official website
Select “Canara HSBC Life Insurance ” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from BSE or NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from BSE or NSE.

How to do:

Visit BSE or NSE’s official website
Select ‘Equity’ segment
Select “Canara HSBC Life Insurance ” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Canara HSBC Life Insurance

Canara HSBC Life Insurance will not receive any proceeds from the Offer. All funds raised through the Offer will go entirely to the Selling Shareholder, after deduction of Offer-related expenses and applicable taxes, which will be borne solely by the Selling Shareholder.

Canara HSBC Life Insurance GMP – Day 3 Update

The grey market premium (GMP) of Canara HSBC Life Insurance Company Limited IPO stood at ₹0 as of 5:00 PM on October 14, 2025 (Day 3). Considering the upper end of the price band at ₹106, the estimated listing price is around ₹106, indicating no gain (0%) per share.

Date	GMP	Est. Listing Price	Gain
14-10-2025 (Day 3)	₹	₹106	0%

Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

Canara HSBC Life Insurance – Key Details

Particulars	Details
IPO Opening Date	October 10, 2025
IPO Closing Date	October 14, 2025
Issue Price Band	₹100 to ₹106 per share
Total Issue Size	23,75,00,000 shares(aggregating up to ₹2,517.50 Cr)
Listing Platform	BSE, NSE
Registrar	Kfin Technologies Ltd.
Canara HSBC Life Insurance RHP	Click here

Important Dates for Canara HSBC Life Insurance Allotment

Event	Date
Tentative Allotment	October 15, 2025
Refunds Initiation	October 16, 2025
Credit of Shares to Demat	October 16, 2025
Listing Date	October 17, 2025

Canara HSBC Life Insurance Overview

Canara HSBC Life Insurance, established in 2007, is a leading private life insurer in India jointly promoted by Canara Bank, the country’s fourth-largest public sector bank, and HSBC Insurance (Asia-Pacific) Holdings Limited. According to the CRISIL Report, the company ranks third among public sector bank-led life insurers in terms of lives covered and recorded the third-highest weighted premium income growth among bank-led insurers between Fiscal 2022 and 2025.

As of June 30, 2025, it managed assets of ₹61,107.40 million and maintained a strong solvency ratio of 200.42%, exceeding the 150% regulatory requirement. Profit after tax grew at a CAGR of 13.26%, reaching ₹1,169.81 million in Fiscal 2025. The company’s extensive bancassurance network, including Canara Bank, HSBC India, and regional rural banks, contributed over 90% of new business premiums in Fiscal 2025.

Canara HSBC Life offers 20 individual and 7 group products across savings, protection, retirement, and ULIP categories. Emphasizing digital transformation, 99.7% of applications were processed digitally, improving persistency and customer satisfaction. Recognized for innovation, it has received industry awards for technology and data analytics excellence. With strong promoters, sound financials, and customer-centric digital initiatives, the company continues to strengthen its leadership in India’s life insurance sector.

Frequently Asked Questions (FAQs)

What is the opening and closing date of Canara HSBC Life Insurance?
Canara HSBC Life Insurance is open on 10 October 2025 and will close on 14 October 2025.
What is the price band of the Canara HSBC Life Insurance?
Its price band is fixed from ₹100 to ₹106 per share.
What is the GMP (Grey Market Premium) of Canara HSBC Life Insurance today?
The GMP on 14 October 2025 is ₹0, which leads to a possible listing price of ₹106.
What is the total issue size of Canara HSBC Life Insurance?
The total issue size of the Canara HSBC Life Insurance is ₹2517.50 crore, entirely as an “Offer for Sale”.
What is the expected listing date of Canara HSBC Life Insurance ?
This IPO is expected to be listed on BSE and NSE on 17 October 2025.

October 14, 2025

Best Thematic Mutual Funds in India

The mutual fund market in India is growing by the day. Today, thematic mutual funds in India offer a new opportunity for investors who invest not just in companies but in larger trends, such as Digital India, the energy transition, or the defense industry. They are on the verge of becoming the top-ranked mutual funds in India by 2026. In this blog, we’ll explore how thematic funds work, where they rank among mutual funds in India, and how you can choose your own top-rated mutual fund schemes/SIPs.

What are Thematic Mutual Funds?

Thematic mutual funds are funds that invest based on a specific theme or idea. This theme can encompass more than one sector. For example, a “Digital India” theme might include IT, telecom, and fintech companies.

How do they work?

These funds typically employ a top-down investment approach. The fund manager first determines which themes (such as defense, energy transition, electric vehicles) will be strong over the long term. Then, investments are made in various sectors and companies aligned with that theme. This way, investors become participants in the entire trend, not just a single sector.

List of Best Thematic Mutual Funds in India 2026

S.No	Fund Name	AUM (Rs Cr)	3 / 5 Years Return (%)	3 / 5 Years Category Average	Current NAV
1	ICICI Prudential Technology Fund	₹14,734Cr	14.85% / 18.55%	19.55% / 22.326%	₹190.58
2	Mirae Asset Great Consumer Fund	₹4,552Cr	17.13% / 21.80%	19.55% / 22.32%	₹94.97
3	ICICI Prudential Manufacturing Fund	₹6,490Cr	26.82 % / 28.84%	19.29 % / 22.23%	₹35.26
4	Sundaram Services Fund	₹4,333Cr	18.36% / 24.21%	19.71% / 23.99%	₹34.46
5	UTI-Transportation and Logistics Fund	₹3,741Cr	24.59% / 26.84%	19.29% / 23.28%	₹290.60
6	SBI Consumption Opportunities Fund	₹3,175Cr	14.59% / 24.31%	19.17% / 22.47%	₹306.53
7	HDFC Housing Opportunities Fund	₹1,285Cr	19.73% / 23.80%	19.29% / 23.28%	₹22.03
8	Aditya Birla Sun Life Manufacturing Equity Fund	₹1043Cr	18.65% / 18.32%	19.29% / 23.28%	₹32.05
9	Edelweiss Recently Listed IPO Fund	₹924Cr	15.61% / 19.77%	18.29% / 22.28%	₹27.14
10	SBI Comma Fund	₹702Cr	16.47% / 20.44%	19.29% / 22.44%	₹104.28

(Data as of 26 Sep 2025)

A brief overview of the Best Thematic Mutual Funds in India 2026 are given below:

1. ICICI Prudential Technology Fund

This fund is managed by ICICI Prudential AMC and primarily invests in IT sector and technology-related stocks. It was launched on June 22, 1993, and today is considered one of India’s leading technology-focused mutual funds. The fund’s objective is to provide investors with long-term exposure to the growth of the technology sector. It is currently managed by Vaibhav Dusad. The fund’s portfolio is concentrated in large IT giants such as Infosys, TCS, Wipro, and Tech Mahindra, providing it with strong stability and sector-specific exposure.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹5,000	Vaibhav Dusad

2. Mirae Asset Great Consumer Fund

Mirae Asset Great Consumer Fund is a thematic equity fund managed by Mirae Asset Mutual Fund. It aims to enable investors to participate in India’s consumption growth story. As the middle class and income levels in the country are growing, demand for consumer-based companies is also steadily increasing. The fund focuses on industries such as FMCG, automobile, telecom, and retail. The portfolio consists of a mix of large and reliable companies. ITC, Hindustan Unilever, and Asian Paints represent FMCG and branded consumer goods. Mahindra & Mahindra and Maruti Suzuki provide exposure to the automobile segment. Bharti Airtel captures the growth of the telecom sector, while Trent and Avenue Supermarts focus on retail and consumer services. Eicher Motors and Eternal Ltd. further diversify the portfolio.

Fund details :

Min SIP	Min Investment	Fund Manager
₹1000	₹5,000	Siddhant Chhabria

3. ICICI Prudential Manufacturing Fund

This fund is managed by ICICI Prudential AMC and focuses on India’s manufacturing sector. It aims to invest in companies that are directly linked to the country’s industrial progress and the “Make in India” initiative. The fund is currently managed by Antariksh Banerjee and is designed to capture the benefits of long-term manufacturing growth.

Its portfolio includes large and strong industries. Giants like Ultratech Cement and Ambuja Cements represent India’s manufacturing sector. Mahindra & Mahindra and Hindustan Aeronautics capture the growth story of automobiles and aerospace. Names like Cummins India and JSW Steel reflect the strength of the industrial machinery and metals sectors.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹5,000	Antariksha Banerjee

4. Sundaram Services Fund

Sundaram Services Fund is a thematic mutual fund managed by Sundaram Mutual Fund. Its objective is to invest in Indian services-based companies, as the service sector continues to grow in India’s economy. The fund was launched on February 26, 1996, and is currently managed by Rohit Seksaria. The fund’s portfolio focuses on leading service-based companies. Major companies like Bharti Airtel and Reliance Industries represent telecom and consumer services, while HDFC Bank and Axis Bank represent financial services strengths. Additionally, exposure to Tri-Party Repo (TREPS) helps manage liquidity. This mix provides a balanced and diversified perspective on the services sector.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹100	Rohit Seksaria

5. UTI-Transportation and Logistics Fund

UTI-Transportation and Logistics Fund is a sector-specific thematic fund managed by UTI Mutual Fund. The fund was launched on November 14, 2002, and is currently managed by Sachin Trivedi. Its objective is to benefit investors from the growth of India’s automobile, logistics, and transportation sectors. The portfolio includes key companies representing the auto and transportation sectors. Mahindra & Mahindra and Maruti Suzuki cover India’s passenger and utility vehicle segments. Eicher Motors and Bajaj Auto demonstrate strength in two-wheelers and commercial vehicles. Interglobe Aviation (IndiGo) provides air traffic exposure, while Eternal Ltd. further diversifies the portfolio.

Fund details :

Min SIP	Min Investment	Fund Manager
₹500	₹5,000	Sachin Trivedi

6. SBI Consumption Opportunities Fund

SBI Consumption Opportunities Fund is a thematic equity fund managed by SBI Mutual Fund. It was launched on February 7, 1992, and is currently managed by Ashit Desai. The fund aims to capture the story of India’s growing consumption sector. As income levels and consumer demand rise, the prospects for consumption-based companies are also brightening. Its portfolio includes leading consumption companies. Bharti Airtel represents telecom consumption, while Jubilant FoodWorks and Britannia Industries cover the Indian food and FMCG segments. Major companies like Hindustan Unilever and Asian Paints represent premium consumer brands. Mahindra & Mahindra provides strong exposure to automobile consumption.

Fund details :

Min SIP	Min Investment	Fund Manager
₹500	₹5,000	Ashit Desai

7. HDFC Housing Opportunities Fund

HDFC Housing Opportunities Fund is a thematic equity fund managed by HDFC Mutual Fund. Launched on December 10, 1999, the fund is currently managed by Srinivasan Ramamurthy. Its objective is to capture opportunities in India’s housing and infrastructure sectors. Given the country’s urbanization and growing housing demand, this theme is considered relevant for the long term. The fund’s portfolio focuses on large financial institutions and infrastructure companies. These include major financial institutions like HDFC Bank and ICICI Bank, which are involved in housing finance and retail loan growth. Larsen & Toubro and Ambuja Cements represent the strength of the construction and cement sectors. NTPC, the backbone of energy supply, and State Bank of India, as the country’s largest bank, provide further balance to this theme.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹100	Srinivasan Ramamurthy

8. Aditya Birla Sun Life Manufacturing Equity Fund

Aditya Birla Sun Life Manufacturing Equity Fund is a thematic fund managed by Aditya Birla Sun Life AMC. It was launched on September 5, 1994, and is currently managed by Harsh Krishnan. The fund focuses on opportunities in India’s manufacturing sector and invests in companies directly involved in industrial production, automobiles, engineering, and basic industries. The fund’s portfolio includes several prominent and trusted names. Reliance Industries is a leading player in diversified manufacturing and energy. Hindalco Industries is a leader in metals and aluminum manufacturing. Maruti Suzuki and Mahindra & Mahindra demonstrate strong presence in automobile manufacturing. Cummins India provides exposure to industrial machinery and engineering, while United Breweries contributes to consumer and beverage manufacturing.

Fund details :

Min SIP	Min Investment	Fund Manager
₹1000	₹1,000	Harsh Krishnan

9. Edelweiss Recently Listed IPO Fund

The Edelweiss Recently Listed IPO Fund is a unique thematic fund managed by Edelweiss Mutual Fund. It was launched on August 23, 2007, and is currently managed by Bhavesh Jain. The fund invests in companies that have recently listed through an IPO (Initial Public Offering). Its objective is to enable investors to participate in the early growth story of newly listed businesses. The fund’s portfolio focuses on new and emerging businesses across diverse sectors. It includes consumer and automobile brands such as Hyundai Motor India and Vishal Mega Mart. Swiggy reflects the strength of the digital consumption and food delivery sectors. Bajaj Housing Finance provides exposure to financial services, and Sai Life Sciences and Sagility Ltd. represent growth in the healthcare and research sectors.

Fund details :

Min SIP	Min Investment	Fund Manager
₹500	₹5000	Bhavesh Jain

10. SBI Comma Fund

SBI Comma Fund is a thematic equity fund managed by SBI Mutual Fund. It was launched on February 7, 1992, and is currently managed by Dinesh Balachandran. The fund primarily invests in the commodities, materials, and energy sectors. These sectors, linked to India’s industrial and energy needs, have long been considered the backbone of economic growth, and this is the fund’s primary focus. The portfolio includes leading commodity and energy companies. Tata Steel and Vedanta provide exposure to metals and mining. Reliance Industries represents the energy and petrochemical sectors. Ultratech Cement covers construction and infrastructure growth, while ONGC is a major player in oil and gas production. CESC Ltd. also provides stability to the power supply and utilities sectors.

Fund details :

Min SIP	Min Investment	Fund Manager
₹500	₹5,000	Dinesh Balachandran

Why Invest in Thematic Mutual Funds in 2026?

Policy Support : The Indian government has paid special attention to sectors such as defense, infrastructure, energy transition, and the digital economy in recent years. Policy support in these sectors can provide thematic funds with the opportunity for long-term, stable growth.
Benefiting from Changing Economic Trends : Trends such as digital transactions, electric vehicles, healthcare, and renewable energy will strengthen in the coming years. Thematic mutual funds offer investors the opportunity to participate in these changes from an early stage.
Potential for Additional Returns : When the chosen theme remains relevant over the long term, thematic funds have the potential to deliver better returns than traditional diversified equity funds. However, this is not always guaranteed and involves higher risk.
A Different Approach from Sectoral Funds : Sectoral funds focus on a single industry, while thematic funds invest in multiple industries within a larger story. This helps spread the risk somewhat.
Growing Investor Interest : Investor interest in thematic funds has increased over the past few years. This is because investors prefer to invest in sectors and trends that have strong future potential.
Potential to Outperform Indices : Over some periods, thematic funds have outperformed broad indices. However, their performance depends on trends and market conditions, so investors should have realistic expectations.
Strategic Role in Portfolios : These funds are best held as satellite allocations rather than as part of a core portfolio. This allows investors to take advantage of emerging trends while maintaining portfolio diversification.

Emerging Investment Themes in India 2026

Defense and Aerospace : The country is moving towards becoming self-reliant in defense equipment. Continued large orders and export opportunities are strengthening this theme.
Infrastructure and PSUs : Government spending on roads, railways, and power is steadily increasing. This is benefiting not only infrastructure companies but also many public sector undertakings.
Energy Transition : In keeping with climate goals, there is a significant emphasis on renewable energy. Solar, wind, and battery technology are at the center of this transition.
Electric Vehicles and Electronics : EV adoption is increasing, and domestic electronics manufacturing is also strengthening. Battery and charging networks are driving this trend.
Digital and Fintech : Digital payments and online services have become a daily necessity. Investment in data security and cloud services will also increase in the coming years.
Healthcare and Pharma : Growing demand for healthcare and the discovery of new medicines are continuously strengthening this sector.
Premium Consumption : As incomes rise, people are increasingly investing in premium and branded products. This theme is expected to deepen in the coming years.

Read Also: Types of Mutual Funds in India

Risks & Challenges in Thematic Investing

Thematic mutual funds are attractive, but they carry some significant risks that should not be overlooked.

Relying solely on the theme : People often invest under the influence of a story or trend. However, not every theme succeeds. The true strength comes from the companies’ earnings and business models.
Limited Diversification : Like sectoral funds, thematic funds operate within a limited range. If the theme weakens, the entire portfolio can be affected.
Liquidity Issues : Some themes are based on small stocks. These stocks cannot be easily sold during difficult times, which can increase losses.
The Importance of Timing : Timely entry and exit are crucial in these funds. Late entry or hasty exit can impact returns.
Investor Behavior : FOMO in a bull market and panic in a bear market – this is the biggest mistake. Repeated decisions like this can weaken actual returns.

Taxation of Thematic Funds in India (2026 Update)

Equity-oriented Thematic Funds Tax Rates

Short-Term Capital Gains (STCG) : If you sell equity-invested units within 12 months or less, the STCG tax rate will be 20%.
Long-Term Capital Gains (LTCG) : If the holding period is more than 12 months, the LTCG tax rate will be 12.5%.
Exemption : The first LTCG up to ₹1.25 lakh is tax-free. That is, if your LTCG is less than ₹1.25 lakh, no tax will be payable.

Summary of Tax Rates (as of 2026)

Fund Type / Status	Holding Period	Tax Type	Rate / Description
Equity-oriented Thematic Fund	≤ 12 months	STCG	20%
Equity-oriented Thematic Fund	> 12 months	LTCG	12.5% (discount up to ₹1.25 lakh)
Thematic FoF / Hybrid (where equity < 65%)	any period	Income Tax Slab	As per your tax slab
Hybrid (equity ≥ 65%)	> 12 months	LTCG	12.5%

Conclusion

Thematic mutual funds offer investors the opportunity to participate in India’s rapidly changing economy and emerging trends. Whether it’s manufacturing, consumption, infrastructure, or technology, each theme offers long-term potential. However, it’s also true that they carry relatively higher risks. Therefore, it’s always wise to include them in your portfolio with a limited allocation and a long-term view.

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5	Mutual Fund vs ETF. Are They Same Or Different?
6	Mutual Funds vs Direct Investing: Differences, Pros, Cons, and Suitability
7	Debt Mutual Funds: Meaning, Types and Features
8	How to Check Mutual Fund Status with Folio Number?
9	Mutual Funds vs Direct Investing: Differences, Pros, Cons, and Suitability
10	What is Solution Oriented Mutual Funds?
11	Mutual Fund Fees & Charges in India 2024
12	What is TREPS & Why Mutual Funds Invest in it?
13	History of Mutual Funds in India
14	What is Asset Under Management (AUM) in Mutual Funds

Frequently Asked Questions (FAQs)

What are thematic mutual funds?
These funds invest in a specific theme or trend.
Are thematic funds good for SIPs?
Yes, SIPs reduce risk.
How risky are thematic funds?
They carry a higher risk.
Who should invest in thematic mutual funds?
Investors who can stay invested for the long term.
What is the ideal allocation for thematic funds?
Around 10–20% of the portfolio.

October 14, 2025

How Do Mutual Funds Pay Dividends?

Let’s look at a different aspect of the financial market except from buying and selling shares, this is mutual funds and dividends. So, have you ever wondered if you get extra cash back from your mutual fund investments? Many people think of this as a ‘dividend’ just like a small bonus for investing.

But have you ever wondered, do mutual funds pay dividends? The answer is yes, but it’s not exactly what you might think. It’s not really “extra” money that you get, so understanding what happens to dividends in mutual funds is one of the most important things for an investor.

In this blog we will look upon how mutual funds pay dividends to the investors.

What’s a Mutual Fund Dividend?

A mutual fund is like a big investment basket managed by a registered & professional fund manager. This basket makes money in a few ways:

Company Profits: If your fund owns shares of a company like TCS, and TCS decides to share its profits, your fund gets a piece of that.
Interest Earnings: If your fund has lent money (by buying bonds), it earns interest, just like a bank FD.
Smart Selling: When the fund manager sells an investment for more than they paid, the fund makes a profit.

All this money gets collected in the fund. After paying its running costs, the leftover profit can be shared with you.

‘Dividend’ is Now Called ‘IDCW’

Here’s something every investor in India needs to know. In 2021, the market regulator and watchdog SEBI changed the name of the “Dividend Option” to IDCW which stands for Income Distribution cum Capital Withdrawal.

SEBI wanted to be crystal clear and protect the investors from being misled. The old name, “dividend,” made it sound like you were getting extra bonus money from your investments but this was not the whole story.

Income Distribution: This is the part that comes from the fund’s actual earnings.
cum Capital Withdrawal: It means some of the money you’re getting is your own invested money being handed back to you.

By this you can understand that IDWC isn’t a bonus just like a dividend. It’s the fund giving you a mix of its profits and a little bit of your own money back.

How do mutual funds pay dividends?

The fund gathers up all the profits it has made.
The fund manager looks at the pile of profits and decides if there’s enough to share.
If it’s a “yes,” the money is sent straight to your bank account. By law, it has to get to you within seven working days.

Read Also: What is Dividend Policy?

What to Do with the Profits?

When you invest in mutual funds, you get to choose a path for your profits.

IDCW Payout: Investors can get their cash directly and it lands in your linked bank account. This is best suitable for people who need a regular stream of money, like retirees.
IDCW Reinvestment: Instead of cash, the money is used to buy you more units in the fund. Here the investor does not cash out the profits rather get more funds in it.
Growth Option: This is the most popular choice as, no money is paid out, all the profits are ploughed back into the fund to help it grow bigger and faster making it more profitable and valuable over time.

Feature	IDCW (Dividend) Plan	Growth Plan
Profits	You either get cash or more units.	Money is put back into the fund to grow.
Price	Price of the units drop after the payout	Price of unit grows over time
Units	Stays the same or gets reinvested	Stays the same
Best suitable for	Someone who needs cash in hand regularly.	Someone who wants money to grow over the years.
Taxation	You pay tax on it in the year you receive it.	You only pay tax when you decide to sell your units

How are Dividend Pay Decided?

The dividends in mutual funds are not 100% guaranteed, it’s not like a fixed deposit where you know exactly what returns you will be getting.

The fund manager is the one who takes the decision after considering the following:

Profit Generated: A fund can only be distributed if there is enough profit generated.
Market Conditions: If the market is volatile and uncertain, then the manager might decide to hold onto the cash to be safe.
Fund Basket: A fund that invests in big, steady companies might pay dividends more often than a fund that invests in exciting new startups.

How Dividends Affect Your Investment’s Value

When a fund pays you a dividend, the Net Asset Value (NAV) of your units drops by that exact amount. The NAV is just the price tag on one unit of your fund. Let’s walk through it. If you invest Rs.10,000 and the NAV is Rs.50, then you get 200 units (Rs.10,000 ÷ 50).

The fund declares a dividend of Rs.2 per unit, so with 200 units you get a total dividend payout of Rs.400 (200 × 2). At the same time, the NAV of the fund drops to Rs.48 (Rs.50 − Rs.2). The value of your current holding is now Rs.9,600 (Rs.48 × 200 units), and the cash received in your bank account is Rs.400.

There is no change in your total wealth because Rs.9,600 + Rs.400 = Rs.10,000. Essentially, the investment simply moves from one pocket (your mutual fund) to another (your bank account). This shows that the dividend is paid out from your investment value—it is not extra money.

Read Also: What is Dividend ETF?

How to Pick a Good Dividend Fund

If you’ve decided that getting regular cash is right for you, here are a few friendly tips for picking a fund:

You should not just chase the biggest payout, as a fund that promises a huge dividend might sometimes be struggling. A very high payout can be a sign that the fund’s NAV has dropped.
One should look for a steady track record where a fund that pays small but consistent dividends is often more reliable than one that’s all over the place.
Check the total return and don’t get fixated on the dividend rather look for the growth in the fund’s price plus the dividend.
Your goals come first, if you’re young and saving for the long haul, the Growth option is almost always your best friend as it lets your money work for you. IDCW plans are generally best for people who are retired and need cash for their expenses.

Conclusion

As we have read, we know that mutual funds pay dividends, which are now called IDCWs. The most important thing to remember is that this is not extra money. It’s just a part of your own investment being returned to you as cash. This is why the fund’s price (NAV) drops by the exact same amount.

Choosing between an IDCW plan (for cash payouts) and a Growth plan (to build wealth) is a personal decision. If you need regular income, IDCW can be useful. If you want your money to grow for the future, the Growth option is often the better path. The key is to understand how it works so you can make the best choice for your money.

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2	What is a Fixed Income Mutual Fund?
3	How to Check Mutual Fund Status with Folio Number?
4	10+ Best Investment Plan for Monthly Income in India
5	How to invest in dividend stocks in India?

Frequently Asked Questions (FAQs)

Are mutual fund dividends (IDCW) guaranteed?
Nope, they depend completely on whether the fund makes a profit and what the fund manager decides to do and they can be lowered or even stopped at any time.
How are these dividends taxed in India?
The IDCW you get is added to your total income for the year and taxed based on your income tax slab. If you receive more than Rs.5,000 from a single fund house in a year, they will also cut 10% tax (TDS) before you get your money.
Is a mutual fund dividend the same as a stock dividend from a company?
They’re different. A company dividend is a share of the company’s profits. A mutual fund’s IDCW is a mix of the fund’s earnings and can also include a part of your own invested capital. This is why the fund’s price (NAV) always drops by the exact dividend amount.
Can I get dividends every month?
Some funds do have plans that aim to pay out monthly. But even then, it’s not a promise as the fund needs to make enough profit to be able to share it.
What is meant by the “reinvestment” option?
Instead of getting cash, the dividend money is used to automatically buy more units of the fund for you. This is a great way to grow your investment, but remember, even though you don’t see the cash, it’s still considered income for that year and you’ll have to pay tax on it.

October 14, 2025

Canara Robeco AMC IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Canara Robeco Asset Management Company Limited, a leading mutual fund house jointly promoted by Canara Bank and ORIX Corporation of Japan, has launched its ₹1,326.13 crore Initial Public Offering (IPO), entirely as an Offer for Sale (OFS) (i.e., no fresh capital is being raised). The IPO opened for subscription on October 09, 2025, with a price band set between ₹253 and ₹266 per share. The subscription window will close on October 13, 2025, and the shares are scheduled to be listed on both the BSE and NSE on October 16, 2025.

Canara Robeco AMC IPO Day 3 Subscription Status

On Day 3, the Canara Robeco Asset Management Company IPO received a strong response from investors, closing with an overall subscription of 9.73 times. The Qualified Institutional Buyers (QIB) category led the demand with an impressive 25.92 times subscription, reflecting robust interest from institutional investors. The Non-Institutional Investors (NII) segment also saw healthy participation at 6.45 times, driven by both large and small high-net-worth investors. Within this category, the bNII (above ₹10 lakh) portion was subscribed 6.77 times, while the sNII (below ₹10 lakh) portion saw 5.79 times subscription. The Retail Individual Investors (RII) segment registered a decent response, subscribing 1.90 times, indicating steady interest from retail participants.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	25.92
Non-Institutional Investors (NII)	6.45
bNII (above ₹10 lakh)	6.77
sNII (less than ₹10 lakh)	5.79
Retail Individual Investors (RII)	1.90
Total Subscriptions	9.73

Total Applications: 4,27,784

Total Bid Amount (₹ Crores): 9036

How to Check Canara Robeco Asset Management Co.Ltd IPO Allotment Status

Canara Robeco AMC allotment can be easily checked online in two ways: from the Registrar’s website and from the BSE or NSE website. This IPO will be listed on both the exchanges – BSE and NSE, so the allotment status will be available to all investors on both platforms.

Method 1: Registrar’s website (MUFG Intime India Pvt.Ltd.)

The most reliable way is to check allotment from MUFG Intime India Private Limited’s website.

How to do:

Visit MUFG Intime India Pvt.Ltd.’s official website
Select “Canara Robeco Asset Management ” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from BSE or NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from BSE or NSE.

How to do:

Visit BSE or NSE’s official website
Select ‘Equity’ segment
Select “Canara Robeco Asset Management ” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Canara Robeco AMC

Canara Robeco Asset Management will not receive any proceeds from the Offer. All funds raised through the Offer will go entirely to the Selling Shareholder, after deduction of Offer-related expenses and applicable taxes, which will be borne solely by the Selling Shareholder.

Canara Robeco AMC GMP – Day 3 Update

The grey market premium (GMP) of Canara Robeco Asset Management Company Limited IPO stood at ₹9 as of 5:00 PM on October 13, 2025 (Day 3). Considering the upper end of the price band at ₹266, the estimated listing price is around ₹275, indicating a potential gain of approximately 3.38% per share.

Date	GMP	Est. Listing Price	Gain
13-10-2025 (Day 3)	₹9	₹275	3.38%

Canara Robeco AMC – Key Details

Particulars	Details
IPO Opening Date	October 09, 2025
IPO Closing Date	October 13, 2025
Issue Price Band	₹253 to ₹266 per share
Total Issue Size	4,98,54,357 shares(aggregating up to ₹1,326.13 Cr)
Listing Platform	BSE, NSE
Registrar	MUFG Intime India Pvt.Ltd.
Canara Robeco AMC RHP	Click here

Important Dates for Canara Robeco AMC Allotment

Event	Date
Tentative Allotment	October 14, 2025
Refunds Initiation	October 15, 2025
Credit of Shares to Demat	October 15, 2025
Listing Date	October 16, 2025

Canara Robeco Asset Management Overview

Canara Robeco Asset Management Company Limited (Canara Robeco AMC), India’s second oldest asset management company, was incorporated in 1993 and became a joint venture between Canara Bank and ORIX Corporation Europe in 2007, with 51% and 49% shareholding respectively. The company offers a diversified portfolio across equity, debt, and hybrid schemes catering to both retail and institutional investors. As of June 30, 2025, it managed 26 mutual fund schemes with a Quarterly Average Assets Under Management (QAAUM) of ₹1,110.52 billion, reflecting a strong CAGR of 28.6% between FY23 and FY25.

Canara Robeco AMC has established itself as one of the fastest-growing fund houses in India, with retail investors contributing nearly 87% of its total AUM. The company has a significant presence in B-30 cities (beyond top 30 locations), contributing about 26% of its assets — among the highest in the industry. It leverages its strong parentage, experienced management, and a robust digital distribution network to strengthen market reach. With a focus on long-term wealth creation, prudent risk management, and governance standards, Canara Robeco AMC continues to build investor trust and maintain its position as one of India’s most reliable and consistent-performing mutual fund companies.

Frequently Asked Questions (FAQs)

What is the opening and closing date of Canara Robeco AMC?
Canara Robeco AMC is open on 09 October 2025 and will close on 13 October 2025.
What is the price band of the Canara Robeco AMC?
Its price band is fixed from ₹253 to ₹266 per share.
What is the GMP (Grey Market Premium) of Canara Robeco AMC today?
The GMP on 13 October 2025 is ₹9, which leads to a possible listing price of ₹275.
What is the total issue size of Canara Robeco AMC?
The total issue size of the Canara Robeco AMC is ₹1,326.13 crore, entirely as an “Offer for Sale”.
What is the expected listing date of Canara Robeco Asset Management ?
This IPO is expected to be listed on BSE and NSE on 16 October 2025.

October 13, 2025

Top 10 CDMO Stocks in India

Do you know many of the world’s biggest pharma companies don’t have their own drug manufacturing units for making their own medicines. These companies generally hire prominent drug manufacturing companies to make these essential drugs for them, this type of companies are called CDMO companies. India is becoming one of the world’s favourite manufacturers of medicines as per the global demands.

For investors it is a whole new and expanding area in the financial markets. In this blog we will talk about top CDMO companies in India, as these CDMO Pharma companies in India are getting a lot of attention from investors all over the world. Let’s dive into the top 10 CDMO stocks in India.

Top 10 CDMO Companies in India

Company Name	Current Market Price (Rs)	Market Capitalization (Cr)	52-Week High	52-Week Low
Divi’s Laboratories Ltd.	6,435	1,70,828	7,078	4,942
Cipla Ltd.	1,449	1,17,062	1,673	1,310
Dr. Reddy’s Labs Ltd.	1,190	99,308	1,380	1,020
Zydus Lifesciences Ltd.	901	90,707	1,059	795
Lupin Ltd.	2,180	99,582	2,228	1,774
Aurobindo Pharma Ltd.	1,166	67,730	1,279	994
Cohance Lifesciences Ltd.	448	17,129	1,328	443
Gland Pharma Ltd.	1,717	28,291	2,131	1,200
Syngene International Ltd.	631	25,421	862	599
Piramal Pharma Ltd.	168	22,371	252	164

(Data as of 13 January 2026)

Brief of Top 10 CDMO Companies in India

CDMO stands for Contract Development and Manufacturing Organization which acts as a one stop shop for pharmaceutical companies. Here are the top 10 CDMO companies in India.

1. Divi’s Laboratories Ltd.

Divi’s Laboratories Ltd. was founded in 1990 by Dr. Murali Krishna Prasad Divi, this company is one of the world’s trusted Active Pharmaceutical Ingredients (APIs) producers in India, APIs are the main ingredients of any medicine and Divi’s custom synthesis division is where they partner with world’s biggest pharma innovators to exclusively make their patented drug. The company is known for its quality, reliability and for expanding business as its new facility is being constructed in Kakinada. The company’s future seems unhindered and with time it can win more custom synthesis contracts making it more profitable.

2. Cipla Ltd.

Cipla Ltd. is a legendary name in the Indian Pharma sector, founded in 1935 by Dr. K.A. Hamied with a goal to make India self-reliant in the healthcare sector. The company is widely known for lung problem medicines and HIV medicines in the world also it has played a crucial role in AIDS treatment in Africa. This company sells its own branded medicines as well as it is in the CDMO space as well, focusing on specialised manufacturing. Cipla has a future fit growth strategy which includes boosting its presence in complex areas like peptides and biosimilars with the help of CDMO partnership.

3. Dr. Reddy’s Laboratories Ltd.

Dr. Reddy’s Laboratories Ltd. company founded by Dr. K.Anji Reddy in 1984, this company began by making APIs and rapidly transformed into a global pharma player. It is one of the Asian-pacific Pharma companies outside Japan which has been listed in the New York Stock Exchange since 2001. The company has a special CDMO business known as Aurigene Pharmaceuticals Services which caters globally. The company has a goal to reach 1.5 billion patients by 2030, also the company invests heavily in the R&D department of the company and plans to launch 25-30 new products in the next few years.

4. Zydus Lifesciences Ltd.

Zydus Lifesciences Ltd. Earlier known as Cadila Healthcare this company was founded way back in 1952 and has a long history in the pharmaceutical world. It is mostly known for making generic drugs and Zydus has recently started with the global biologics CDMO business. Biologics are complex, high-tech medicines like antibodies or vaccines which Zydus is manufacturing for its global clients. The company has bought two new manufacturing facilities in the United States giving it a major foothold in the US market which is the world’s biggest market for high-tech drugs. CDMO space can turn out to be a major growth engine for Zydus Lifesciences.

5. Lupin Ltd.

Dr. Desh Bandhu Gupta founded this company in 1968, it majorly started as manufacturer of anti-tuberculosis drugs and has since become one of the famous global giant and it also caters the US market. Lupin has two specialised CDMO divisions, one manufactures APIs and traditional drugs and the other one is for complex biologics. Lupin is now focused on R&D, large scale manufacturing as well as increasing its production. New complex generics like inhalers, and its entry in medicines like diabetes as well as weight loss drugs is increasing the revenue. Its CDMO business is a central part of its plan to offer high-value services.

6. Aurobindo Pharma Ltd.

Started in 1986 by Aurobindo Pharma is one of the major players in the generic drugs and APIs manufacturer with a wide spread presence over 125 countries. Aurobindo Pharma has recently purchased Lannett Company in the US giving the company a US based factory and a CDMO business that is specialised in controlled substances. This new development shows companies plan to grow in the US and build a powerful CDMO business.

7. Cohance Lifesciences Ltd.

This company has a history of specializing in the highly profitable area of medicines for the Central Nervous System (like the brain and spinal cord). The company was built specifically to be a focused CDMO player in the market, and with time it has made itself stronger through smart acquisitions. It is one of the key players in the CDMO sector after acquiring Cohance Lifesciences and Sapala Organics boosting its skills in antibody drug conjugates (ADCs) and oligonucleotides which are considered to be the future of medicines. Its plan is to focus on these niche, high-tech areas, expand its global sales team, and make more smart acquisitions to become a technology-driven CDMO powerhouse.

8. Gland Pharma Ltd.

Gland Pharma Ltd. was established in 1978 with specialization with injectable medicines, it mainly deals in B2B models. It is amongst the pioneers in India in setting up the country’s first USFDA approved facility for pre-filled syringes back in 2003. The company focuses on sterile injectables, cancer based drugs, and other complex medicines. The manufacturing record of Gland pharma and its long history of abiding by the USFDA and EMA are its key strengths. Gland is also expanding its operations by buying other companies like Cenexi Group to increase its global presence and add new skills.

9. Syngene International Ltd.

Syngene International Ltd. It is one of the major true DRDMOs (Contract Research, Development and Manufacturing Organization) which was started in 1993 as a part of Biocon. It has a good client base including global pharma giants like Bristol Myers Squibb and Amgen. The company deals in enhanced R&D, building new medicines, using advanced technology, computers and AI for faster and accurate results. The company is also expanding its manufacturing capacity by including a new facility in the US and getting even better at biologics and other next generation therapies. With a strong client base, analysts expect a continued growth over time.

10. Piramal Pharma Ltd.

Piramal Pharma has built a strong CDMO business in the pharmaceutical sector. It has a good presence in North America and European countries. It deals in cancer drugs and injectable medicines with focus on High Potency APIs (HPAPIs) services. It provides a holistic service of manufacturing and packaging medicines. The future growth potential of the company is based upon expanding its CDMO business as well as increasing its clients in US and Europe.

Key Indicators of Top 10 CDMO Stocks

Company Name	Net Profit Margin (%)	ROE (%)	ROCE (%	Debt-to-Equity Ratio
Divi’s Laboratories Ltd.	23.40	14.63	18.85	0.00
Cipla Ltd.	19.20	16.90	21.57	0.00
Dr. Reddy’s Labs Ltd.	17.47	16.85	21.81	0.12
Zydus Lifesciences Ltd.	19.85	18.89	22.77	0.13
Lupin Ltd.	14.55	19.07	21.29	0.30
Aurobindo Pharma Ltd.	11.08	10.67	15.82	0.24
Cohance Lifesciences Ltd.	22.10	15.78	13.36	0.12
Gland Pharma Ltd.	26.47	11.17	15.03	0.00
Syngene International Ltd.	13.62	10.49	12.61	0.03
Piramal Pharma Ltd.	0.19	1.12	6.40	0.58

(Data as of 07-10-2025)

Advantages of Investing in CDMO Stocks

The “China Plus One” Strategy: The world has prominently relied heavily on manufacturing of medicines and essential drugs from, but due to global tensions companies are looking for an alternative reliable partner, so this strategy makes India as the top choice in the pharma world.
The BIOSECURE Act: The US is thinking to reduce their dependence on Chinese pharma companies and introduce a new BIOSECURE Act, by contracts straight to Indian CDMOs.
Cost and Quality Advantage: India has potential to give top quality R&D services and manufacturing capabilities at much lower costs.
Government Support: The Indian government’s Production Linked Incentive (PLI) scheme gives financial rewards to companies that boost the manufacturing of complex drugs in India.

Read Also: Best Pharma Stocks in India

Risk associated with CDMO Stocks

Stricter Rules and Regulations: CDMO factories are regularly inspected by global health authorities like the USFDA. A bad inspection report or a “warning letter” can stop a company from selling its products in the US, which can seriously hurt its revenues and stock price.
High Competition: As the opportunity in the CDMO space grows, so does the competition. This could put pressure on quality, prices and profits in the long run.
Client Dependency: A CDMO’s success is tied to its clients’ success because if a client’s drug fails in clinical trials, the CDMO loses that project.
Constant Investment: CDMOs need to constantly invest in the latest technology and equipment to stay ahead of the competition, and this costs a lot of money.

Conclusion

CDMO companies are transforming from just being a supplier to becoming a key partner in global pharmaceutical innovation. With global demand and India’s capabilities to strengthen its R&D and manufacturing on its side, these companies can play a major role in the world. An investor shall always try to attain knowledge and then enter the market. Also the risks involved are the first step to making smart investment decisions.

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Frequently Asked Questions (FAQs)

Are regular pharma companies the same as CDMO stock?
Regular pharma companies growth depends upon their own branded drugs and a CDMO’s success totally depends upon getting contracts from different pharma companies.
What are the risks of CDMO stocks?
There are risks attached to CDMO stocks like regulators like USFDA and diverse investments like projects, pharma sector, R&D.
Why is the USFDA important for Indian companies?
The USA has high demand making it the most important and profitable market for Indian pharma companies, so getting most is the biggest and most profitable market for medicines in the world and USFDA allows these Indian companies to manufacture and sell drugs but a negative report can cut off the companies ties.
What does “China Plus One” mean for Indian CDMOs?
It’s a global trend where international companies are looking for a second manufacturing base outside of China to reduce their risks. India is seen as a potential base as it is less costly, skilled techniques and labours are available, and high quality products are made.
How can CDMO stocks be tracked?
One should follow the quarterly financial results of the companies mentioned in this blog. Also, keep an eye on news about USFDA inspections, announcements of big new contracts, and global trends in pharmaceutical outsourcing.

October 13, 2025

How to Backtest Trading Strategy – Tools, Tips & Examples

You already know why backtesting is so helpful if you’ve ever traded based on a “gut feeling” and then regretted it. It is like saying, “What if I had used this strategy before? Would it have worked?”

There has been significant progress in backtesting since 2025. AI, cloud platforms, and easy-to-use broker tools have made it possible for even regular traders like you to test strategies similar to hedge funds.

We will explain in this blog what backtesting is, why it is important, the tools you can use, and some examples you can try.

What is Backtesting

Think of backtesting as a time machine for traders. You come up with a strategy (say, “buy NIFTY when the 50-day moving average crosses above the 200-day moving average”), then you test it on old market data to see what would have happened.

It will not predict the future, but it gives you an idea of whether your strategy has potential or if it is just wishful thinking.

And here is the catch,

Backtesting helps in checking strategies on past data.
Paper trading/forward testing lets you use these strategies in real time without risking money.

Both matter. Backtesting shows you the past, and paper trading shows you how it handles today’s chaos.

Why Backtesting is Important

Markets today move faster than ever. AI bots, global events, etc., can shift things overnight. Below is why backtesting is useful.

Better data – You can get tick-by-tick history for stocks, forex, and crypto.
AI help – Platforms can optimise your settings automatically.
Cloud power – No need for a heavy-duty PC, cloud tools crunch years of data in minutes.
Easy access – Several online tools let you test ideas without writing a single line of code.

In short, backtesting keeps you from blindly trusting your gut. It tells you if your “great idea” has legs before you risk real money.

Main Steps of Backtesting

Here is the complete process, broken down into simple steps,

Write down your rules. Be clear in your mind. Example – Buy when RSI drops below 30 and price is above the 20-day EMA. Sell when RSI hits 70 or stop-loss of 5%.
Get the data. NSE/BSE feeds for stocks.
Pick your tool. Coders can use Python frameworks. If you do not like coding or do not belong to that background, you can also explore other options like TradingView.
Run the test. Apply your rules to past data and let the software do the work.
Check the results. Do not just look at profits; instead, dig into risk, drawdowns, and consistency.
Tweak carefully. Adjust parameters, but do not try to over-optimise
Validate in real time. Paper trade or test with a small amount of capital before going big.

Points to track during Backtesting

1. Win Rate

Simply put, how often your trades end up being winners. Example: If you win 6 out of 10 trades, that is a 60% win rate.

2. Risk-Reward Ratio

Are your profits bigger than your losses? For instance, if you risk ₹1 to make ₹2, that is a good and healthy 1:2 setup.

3. Profit Factor

This compares total profits to total losses. Anything above 1 means you are making more than you are losing (1.5 or higher is usually good).

4. Maximum Drawdown

The worst fall your account takes from peak to bottom. Helps you see how much pain you will need to sit through in a bad phase.

5. Sharpe or Sortino Ratio

These names might sound complex at first, but they show how much return you are getting for the risk you take. Higher is always better.

6. Out-of-Sample Testing

Test your idea on fresh data that it has not “seen” before. This shows whether your strategy is strong or simply lucky with past numbers.

Read Also: Best Trading Apps in India

Suggestions for Effective Backtesting

Know what you are testing – Before diving in, be clear about your goal. Are you testing a trend-following strategy or something else? Having a focus keeps things simple and effective.
Use good data – Bad data leads to bad results. Make sure your historical price data is accurate and long enough to cover different market conditions. Do not forget things like stock splits, dividends, and other corporate actions.
Factor in real costs – Trading is not free! Include brokerage, slippage, and any other costs so your results reflect reality.
Test in different markets – A strategy that works in a bull market might fail in a bear market. Try it across various conditions, uptrends, downtrends, and sideways markets.
Do not over-optimise – It is tempting to tweak parameters to get perfect results, but too many changes can ruin your strategy in real life. Keep things realistic.
Keep it simple – Complex strategies may look impressive in backtests, but simple ones are easier to manage and more likely to survive in real markets.
Review and adapt – Markets change. Backtesting is not a one-and-done exercise. Keep checking and tweaking your strategies.

Example

The Idea – Think of this as a simple “trend-following” plan.

1. You buy when the 50-day moving average (MA) moves above the 200-day MA. That’s usually a sign the stock is gaining strength.

2. You sell when the 50-day MA dips below the 200-day MA, hinting the stock may be heading down.

Step 1 – Gather the Data

Pull daily price data for the stock from the last 5–10 years. Make sure it’s adjusted for things like stock splits and dividends so your numbers are accurate.

Step 2 – Apply the Rules

Calculate the 50-day and 200-day moving averages for each trading day.

1. Mark a buy when the 50-day crosses above the 200-day.

2. Mark a sell when it crosses below.

Step 3 – Testing

Suppose you started with ₹10,000.

1. On a buy signal, purchase the stock at the day’s closing price.

2. On the next sell signal, sell at that day’s close.

Also, do not forget to include brokerage costs and small slippages for a real-time picture.

Step 4 – Review the Results

Check how much profit or loss you’d end up with. Look at useful stats like max drawdown (how much you could have lost at worst), win/loss ratio, and risk-adjusted returns.

Finally, ask yourself, did the strategy work in trending markets but struggle in sideways ones? Were the losses reasonable compared to the gains? Could tweaking the rules make it better?

Read Also: Top AI Trading Apps in India

Conclusion

Backtesting is not about predicting the future; it is about being prepared. A good backtest helps you determine if your idea is worth pursuing, what risks to expect, and whether it aligns with your investment style. The best part is that tools are now easier to use, data will be richer, and AI is making the process smarter as well as easier. But no matter how fancy your software is, remember, discipline, forward testing, and risk management are what make strategies work in real life.

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Frequently Asked Questions (FAQs)

What are the tools where you can backtest your strategies?
You can use trading platforms with built-in backtesting, Python, dedicated backtesting software or broker platforms with historical data.
How much historical data do I need?
It completely depends on your strategy, but at least 3 to 5 years is considered ideal to cover different market conditions.
Can backtesting be done for all markets?
Yes! Stocks, forex, commodities, and indices can all be backtested with the help of correct data.
How often should I backtest?
As we know, the market changes regularly, so reviewing and updating strategies keeps them relevant.
Can backtesting guarantee profits?
No. It shows historical performance but cannot predict future market moves.

October 13, 2025

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