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What To Expect In The Budget 2024?

Last year, on 1 February 2023, i.e., on the budget day, the govt. made significant announcements such as increased spending on infrastructure, several aids for agriculture and entrepreneurs, increase in tax rebate, etc., for the FY 2023-24.

Now, the budget for the FY 2024-25 is yet to be presented. Finance Minister Nirmala Sitharaman will present the interim budget 2024-25 on February 1, 2024.

In this blog, we will discuss what to expect in the upcoming budget and past year trends.

What is Interim Budget?

An interim budget is a temporary financial plan presented by the government when the general elections are forthcoming. Compared to the regular budget, the interim budget is less comprehensive and does not introduce many policy changes.

An interim budget generally includes a review of the previous year’s budget, i.e., the government’s income and expenditure for the previous financial year and an estimate for the upcoming financial year.

What to expect in the upcoming Budget?

Finance Minister Nirmala Sitharaman will present the budget on 1 February; since it’s an interim budget before the general elections scheduled in May 2024, we are not expecting to have any major policy changes or announcements. The major focus will likely be maintaining macroeconomic stability and continuing existing schemes.

However, there are some expectations about what can be included in the Budget 2024.

Below are some key areas to watch:

Under section 80D, the deduction limit for medical insurance premiums can be increased from INR 25,000 to INR 50,000 in the case of individuals and from INR 50,000 to INR 75,000 in the case of senior citizens.
Currently, TDS deducted on property acquisitions is 1% if the value of the property exceeds INR 50 Lakhs. The government is planning to ease TDS compliance for people who wish to invest in real estate.
Bangalore is to be considered a metro city for the exemption of the house rent allowance for its residents, which means 50% of basic pay will be determined as HRA. As of now, Bangalore is not classified as a metro city for HRA deduction, means only 40% of basic pay is determined as HRA.
The government’s subsidy* bill can see a slight increase in the upcoming financial year 2024-25 because of the expansion of the central government’s free food scheme.

*If you’re not familiar with the word, Subsidy is a kind of financial aid the government provides to individuals, businesses, or institutions. It can include reductions or exemptions from taxes, loans at lower interest rates, cash transfers or grants.

We can also expect a new reverse charge-based mechanism to improve GST compliance. This will avoid monthly tax payment obligations by small business vendors since buyers who are large taxpayers with turnovers above INR 100 crore will directly pay the tax to the government.

A quick look at FY 2023-24 allocation of Budget.

Some of the major sectors accounted for 53% of total estimated expenditure in the previous financial year budget:

Defence – the budget of the defence sector was about INR 593,000 crore and accounted for over 13% of the total expenditure of the central government. In 2023-24, its allocation is estimated to be marginally lower than 2% of GDP.

In the interim budget, we can expect a marginal rise of 1-2% for the defence sector.

Railways – In the FY 2023-24, the government has allocated a budget of around INR 240,000 crore for capex in the railway sector.

We can expect a rise of 2% for capex in the railway sector in the forthcoming FY 2024-25 budget.

Road Transport & Highways – A budget of INR 270,000 crore was allocated to the road & transport ministry in the FY 2022-23, which was 25% higher than the revised estimates for 2022-23.

This year, we can expect an estimated rise of 30% in the upcoming interim budget.

Agriculture – India, an agricultural country, had an allocation of INR 125,000 crore in the FY 2023-24, which was a 5% increase over the revised estimates of 2022-23.

A rise of 5-7% for agriculture and farmer’s welfare can be expected in this financial year.

Communication – the Indian government primarily focused on this sector with a budget of INR 1 lakh crore in the previous financial year of 2023-24.

This year we can expect a rise of 30-35% in budget allocation of this sector.

Subsidies for FY 2023-24

Expenditure on subsidies accounts for a major portion of the government’s total budget, with an amount of INR 400,000 crore.

The three major types of subsidies provided by the government were food subsidies, petrol subsidies and fertiliser subsidies, other subsidies such as assistance provided to state agencies, agricultural produce, price support schemes, etc.

Chances are likely that subsidies will remain unchanged for FY 2024-25 as well.

Disinvestment Target

Disinvestment is the process of the government reducing its ownership stake in the public sector undertakings (PSUs). It can be done through selling shares of the PSU, merging PSUs, and liquidating PSUs.

The disinvestment target of the government for FY 2023-24 was INR 51,000 crore, we can expect a decline in upcoming interim budget as the target of the previous financial year is unachieved.

Tax Regimes

We can expect the tax regimes to remain unchanged for the FY 2024-25 since last year there was a major relief in the new tax regime. And if we analyse the previous budgets where the tax structure was changed, it is highly unlikely that this year will bring any major change in the tax structure.

For your reference, have a look at the old & new tax regimes:

Old Tax Regime

Income Slab	Income Tax Rate
Up to INR 2,50,000	Nil
INR 250,000 to INR 5,00,000	5% (tax rebate is available u/s 87A upto 5 lakhs)
INR 500,001 to INR 10,00,000	20%
More than INR 10,00,000	30%

New Tax Regime

Income Slab	Income Tax Rate
Up to INR 3,00,000	Nil
INR 3,00,001 to INR 6,00,000	5% (tax rebate is available u/s 87A upto 7 lakhs)
INR 600,001 to INR 9,00,000	10% (tax rebate is available u/s 87A upto 7 lakhs)
INR 9,00,001 to INR 12,00,000	15%
INR 12,00,001 to INR 15,00,000	20%
More than INR 15,00,000	30%

Market’s reaction on the Budget Day

Budget announcement day is considered a big event for the general public and particularly for the market participants. The market’s reaction on the budget day is quite volatile, with a history of both positive and negative swings.

Different sectors react differently to the budget depending on the announcements affecting them. Ultimately, the market’s reaction on the day of the budget can be unpredictable.

It is interesting to note that the Budget Day reaction hasn’t been too extreme, with gains and losses not exceeding 2% in 8 out of the last 10 years. An evaluation of market history since 2013, which includes ten regular budgets and two interim budgets, indicates that the Union Budget has been a 50-50 show so far. In the year 2021, Sensex saw its best budget day gain since 1999 and ended 5% higher. We can say that it’s been a bit of a hit-or-miss situation.

Further, experts suggest not to take directional positions before budget announcement day as the budget can significantly impact the market movement, and if the market moves in opposite direction to your trade, that will result in significant losses.

Conclusion

After a successful FY 2023-24, leading institutions like World Bank and RBI estimated India’s growth in FY2024 -25 to be between 6.3% to 6.4%. However, global economic uncertainty and geopolitical scenarios can influence the conclusions of Budget 2024.

Given the elections, majority measures for farmers and middle-class families are probable. Also, investments in infrastructure to boost India’s manufacturing competitiveness can be one of the main agenda of the government in the upcoming budget.

Frequently Asked Questions (FAQs)

Who presents the budget?
Finance Minister of India.
Are markets more volatile near the budget?
Generally, markets are more volatile near the budget day as different investors have different expectations. However, this increased volatility cools off after the announcement of the budget.
Which day will the government present the budget for FY 24-25?
1^st February, 2024.
What is subsidy?
A subsidy is a financial aid that the government provides to individuals, businesses, or institutions.
Will the budget for 2024 affect taxes?
Tax changes are possible, but major reforms are unlikely in the interim budget. However, we can expect some new tax exemptions.

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

January 8, 2024

Decoding Credit Risk Funds In India

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

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

What are credit risk funds?

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

Did you know?

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

How do Credit Risk Funds work?

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

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

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

Readc Also: Types of Mutual Funds in India

Advantages of Credit Risk Funds

High Yield

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

Diversification

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

Professionally Managed

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

Disadvantages of Credit Risk Funds

Risk of Default

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

Volatility

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

Not Suitable for all Investors

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

Management Costs

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

Impact of Interest Rate Changes on Credit Risk Funds

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

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

Risks associated with Credit Risk Funds

Credit Risk

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

Liquidity Risk

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

Concentration Risk

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

Interest Rate Risk

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

Credit Risk Funds vs. Other Mutual Funds

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

Historical Performance of Credit Risk Funds

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

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

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

Are Credit risk funds suitable for you?

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

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

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

Conclusion

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

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

Frequently Asked Questions (FAQs)

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

January 8, 2024

RBI Retail Direct Platform

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

Retail Direct Platform

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

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

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

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

Types of Securities

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

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

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

Features / Benefits of Retail Direct Platform

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

How to open RDG (Retail Direct Gilt account)

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

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

Maximum and Minimum Investment Amount

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

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

Source: Reserve Bank of India

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

Limitations of Investing in RDG

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

Conclusion

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

Frequently Asked Questions (FAQ)

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

January 3, 2024

10 Top Investors In India And Their Portfolios

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

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

1. Radhakishan Damani

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

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

Investment Philosophy

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

Radhakishan Damani’s Portfolio

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

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

2. Rakesh Jhunjhunwala

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

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

Rakesh Jhunjhunwala’s Investment Philosophy

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

Rakesh Jhunjhunwala Portfolio

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

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

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

3. Mukul Agarwal

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

Mukul Agarwal’s Investment Philosophy

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

Mukul Agarwal’s Portfolio

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

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

4. Azim Premji

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

Azim Premji’s Investment Philosophy

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

Azim Premji’s Portfolio

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

The table below shows the top stocks from his portfolio:

Stocks	Holding Value (INr cr)
Wipro	110901.3

5. Ashish Dhawan

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

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

Ashish Dhwan’s Investment Philosophy

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

Ashish Dhawan’s Portfolio

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

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

6. Vijay Kishanlal Kedia

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

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

Vijay Kedia’s Investment Philosophy

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

Vijay Kedia’s Portfolio

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

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

7. Ashish Kochalia

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

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

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

Ashish Kochalia’s Investment Philosophy

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

Ashish Kochalia’s Portfolio

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

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

8. Madhusudan Kela

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

Madhusudhan Kela’s Investment Philosophy

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

Madhusdhan’s Kela Portfolio

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

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

9. Akash Bhansali

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

Akash Bhansali’s Investment Philosophy

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

Akash Bhansali’s Portfolio

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

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

10. Anil Kumar Goel

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

Anil Kumar Goel’s Investment Philosophy

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

Anil Kumar Goel’s Portfolio

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

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

Conclusion

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

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

Frequently Asked Questions (FAQs)

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

January 3, 2024

Performance Of IPOs Launched In 2023

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

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

What is an IPO?

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

Top IPOs of 2023

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

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

1. Tata Technologies

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

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

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

Tata Technology IPO details

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

Performance Analysis

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

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

2. Motisons Jewellers

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

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

Motisons Jewellers IPO Details

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

Performance Analysis

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

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

3. Netweb Technologies

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

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

Newteb Technologies IPO Details

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

Performance Analysis

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

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

4. Ideaforge Technology

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

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

Ideaforge IPO Details

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

Performance Analysis

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

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

5. DOMS Industries

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

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

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

DOMS Industries IPO Details

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

Performance Analysis

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

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

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

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

*CMP as of 1 January 2024

Conclusion

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

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

Frequently Asked Questions (FAQs)

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

January 2, 2024

Asset Management Companies (AMC) in India

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

What is AMC?

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

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

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

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

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

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

Indian Mutual Fund Industry Analysis

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

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

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

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

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

Emerging Trends in the Indian Mutual Fund Industry

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

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

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

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

Top Asset Management Companies of India

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

1. SBI Asset Management Company

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

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

2. ICICI Prudential Asset Management Company

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

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

3. HDFC Asset Management Company

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

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

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

4. Kotak Asset Management Company

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

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

5. Nippon Asset Management Company

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

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

Read Also: Top AMCs in India

Conclusion

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

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

Frequently Asked Questions (FAQs)

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

December 29, 2023

Paytm Case Study: Business Model and Marketing Strategy

One97 Communications Limited is an Indian multinational technology company started in the year 2000 by Vijay Shekhar Sharma. Paytm, a subsidiary of One97, is an Indian financial services and digital payments company founded in the year 2010.

This case study of Paytm highlights its evolution from a prepaid mobile and DTH recharge platform to a mainstream player with the launch of wallet services in 2014, marking a key moment in enabling cashless transactions for users.”

Today, Paytm stands as a one-stop-shop for consumers, offering a plethora of financial and other services that include e-commerce, banking, investments, loans, bus tickets, money transfers, etc.

The business model of Paytm has driven its total revenue growth from ₹2,802 Cr in FY 2021 to ₹7,990 Cr in FY 2023, achieving a CAGR of 69%.

In 2017, Paytm piloted bill payment services in Canada and in the year 2018, Paytm partnered with Softbank and Yahoo Japan Corporation to launch PayPay, a leading digital payments and financial services company in Japan.

Paytm went public with its IPO on NSE & BSE in November 2021 and raised INR 18,300 crs via IPO. The IPO was one of the largest in India, although Paytm’s debut in the stock market faced mixed reactions.

As of September 2023, there is no identifiable Promoter of Paytm. Have a look at the shareholding pattern of Paytm:

Products and Services of Paytm

Paytm offers a variety of products and services, such as payment services, financial services, cloud, etc.

Payment Services

Payment Services are meant for both consumers and merchants and enable them to make and receive payments seamlessly both online and in-store. Paytm has an overall market share of 40% in payment transactions. Paytm also launched the Paytm Wallet in 2014 and QR code services in 2015. QR Code was later upgraded to an All-in-One QR code in 2020 so that consumers and merchants can have a seamless payment experience while accepting payments from third-party UPI platforms.

Further, in 2020, Paytm launched soundbox service that gives real-time payment audio confirmation for payment completion. With Paytm’s payment services, consumers can make online bill payments, recharge, and transfer money through the app.

Commerce & Cloud Services

Paytm allow consumers to avail of lifestyle commerce services that include booking online tickets, entertainment, gaming, and food delivery within the Paytm app. Merchants can also connect with consumers to improve their business operations. Paytm provides merchants with services such as billing, ledger, vendor management, inventory management, catalogues, etc.

Paytm also provides software and cloud services to enterprises, telecom companies, digital and fintech platforms.

Financial Services

Paytm provide the following financial services to consumers and merchants:

Mobile Banking Services – Paytm provides mobile banking services through Paytm Payments Bank that includes digital banking products such as current accounts, savings accounts, salary accounts, fixed deposit accounts, and debit cards for individuals, SMEs and corporates.

Lending – Paytm collaborates with financial institutions to improve distribution, underwriting and collections and provide seamless access to loans to consumers and merchants. Paytm also launched the Paytm Postpaid, which is a buy now pay later (BNPL) product.

Insurance and Attachment Products – Paytm in collaboration with its insurance partners, provides attachment products like movie and travel ticket cancellations protection. Paytm’s subsidiary company, Paytm Insurance Broking Private Limited provides insurance services that include auto insurance, life insurance and health insurance.

Wealth Management – Paytm provides wealth management services to consumers through the Paytm app and Paytm Money App. It also launched Paytm Gold, which allows customers to buy digital gold on their platform. Paytm Money app offers investment in mutual funds, equities, and derivatives trading.

Awards & Recognitions of Paytm

Paytm has received multiple awards and recognitions. Some of the major recognitions are:

BrandWagon Ace Award for best social media campaign in 2020.
ET BFSI Excellence Award for Best Digital Bank of the Year in 2020.
India Digital Award by IAMAI for Best Fintech Growth Story and Best Data-Driven Marketing Strategy in 2021.
FinTech India Innovation Awards 2023 for Best Fintech Company of the Year in 2022.
8th CFO Vision and Innovation Summit & Awards 2023 for Best Fintech Company of the Year.
Quantic 4th Annual BFSI Excellence Awards 2023 for best Wealth Management Company of India.

Advertising Campaigns

“Kar De Paytm” in the year 2010.
“Zindagi jeene ka naya tarika shuru karo – Paytm Karo” in the year 2015.
“ATM nahi, Paytm Karo” in the year 2016.
“Dimag Khul ke Jee” in the year 2017.
“India Kahe Paytm Karo” in the year 2022.

Competitive Advantages of Paytm

Paytm was an early entrant into the digital payments landscape and had a first-mover advantage.
Paytm has a wide market of payment services across India with a brand value of US $6.3 billion.
Paytm builds and innovates its technology which helps it to launch products and services rapidly with a high success rate. Paytm has a technology team of over 2,500 members that continuously works to improve the user experience.
Paytm tries to understand the needs of its users and innovates products accordingly.
To engage with customers, Paytm invests in marketing campaigns and other promotional offers.

Growth Trajectory of Paytm

Paytm has shown an impressive growth and expansion journey over the years. It has evolved from a mobile recharge platform to a financial services powerhouse. It claims to have more than 300 million active users. Paytm’s strategic partnerships with HDFC Bank, Uber, Indian Railways, and major E-commerce platforms have helped the company to grow over the years. Cashback and Promotional offers still attract new customers and hold the existing ones. Paytm has moved beyond payment services and has ventured into travel, wealth, credit cards, loans, etc.

SWOT Analysis of Paytm

The Paytm SWOT Analysis highlights its strengths, weaknesses, opportunities, and threats, showcasing its market position and growth potential.

Strengths

Paytm is a leading player in the payment sector and enjoys a large user base.
Paytm has strong brand recognition in the fintech sector of India.
Paytm has a diversified product portfolio such as financial services, loans, broking, credit cards, travel, etc.

Weakness

The lack of profits in the company has raised financial sustainability issues for the company.
Paytm heavily depends on the Indian market for its revenue and any kind of regulatory changes can impact the company’s business operations.
The company faces tough competition from other fintech startups like PhonePe, Google Pay, etc.

Opportunities

Penetration in the rural area to provide digital payment services can help Paytm grow its business further.
A comprehensive app for seamless user experience can drive the revenue growth of the company.
Tapping into the International markets can help Paytm provide services outside of India, which boosts the company’s revenue growth.

Threats

Digital payment systems like Paytm are often prone to cyber security risks. Such risks have the potential to significantly alter the user base of Paytm.
Economic downturns can affect consumer spending. This will eventually reduce the user base and revenue growth of the company.
Innovative Competitors and Big Giants like Google Pay and PhonePe could challenge Paytm’s growth.

Conclusion

Paytm’s case study provides useful insights into the dynamics of the fintech landscape and cashless economy in India. Paytm’s diversification of services and first-mover advantage have allowed it to create a strong and loyal user base in India. The company should continue to innovate and explore the emerging digital landscape of India for better market positioning and customer engagement.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	ICICI Bank Case Study: Financials, KPIs, Growth Strategies, and SWOT Analysis
2	Vedanta Case Study: Business Model, Financial Statement, SWOT Analysis
3	Nestle India Case Study: Business Model, Financial Statement, SWOT Analysis
4	BPCL Case Study: Business Model, Product Portfolio and SWOT Analysis
5	Apollo Hospitals Case Study : Business Model, Financial Statements, And SWOT Analysis

Frequently Asked Questions (FAQs)

Who founded Paytm?
Vijay Shekhar Sharma founded Paytm in 2010.
What is the shareholding percentage of promoters in Paytm?
As of September 2023, holding of promoters is nil.
Paytm faces tough competition from which companies?
PhonePe, Google Pay, etc..
When was Paytm listed on NSE & BSE?
November, 2021.
What financial services are offered by Paytm?
Mobile Banking Services, Loans, Mutual funds, Equity Investments, Credit Cards, etc.
What is the UPI transaction limit through Paytm per day
Paytm UPI allows you to transfer the maximum amount of Rs 1 lakh in a day.

December 28, 2023

Relative Strength Index – What Is It And How To Use It?

You have entered into the world of Stock Markets and are looking to sharpen your technical analysis skills. You come across the word “RSI” and wonder what exactly it is. We’ll unravel the knots of RSI in this blog.

If you’re not familiar with this word, RSI stands for Relative Strength Index. It is the most widely used technical indicator to measure the momentum of a security.

RSI was developed by American engineer and technical analyst J. Welles Wilder Jr. in the year 1978. It was introduced in his book “New Concepts in Technical Trading Systems.”

The RSI is a momentum oscillator and oscillates between 0 to 100. Momentum Oscillators help traders identify overbought and oversold zones. In the overbought zone, markets are considered as bullish and bearish in the oversold zone. Further, RSI indicates the upcoming trend reversals or trend continuation in market.

With the help of RSI, traders and technical analysts can make informed decisions in the market.

Calculation of RSI

RSI is calculated using a rolling period of 14 days. The period could be changed as per the suitability. However, the most preferred period is 14 days only.

For each day, calculate the price change, i.e., if the closing price is higher than the previous closing price, calculate the gain, and if the closing price is lower, calculate the loss. Then, calculate the average gain or average loss.

In the last step, calculate the Relative strength (RS) by dividing the average gain by the average loss and calculate the RSI using the formula given below.

RSI = 100 – (100/1+RS)

Don’t get confused by looking at the formula of RSI; charting software will do all the calculations for you.

Formulas:

Price Change = Today’s Closing Price – Last day’s Closing Price.
Average Gain = Sum of gains over the given period / Number of days in the period.
Average Loss = Sum of losses over the period / Number of days in the period.
Relative Strength (RS) = Average Gain / Average Loss.

How to use RSI

A few applications of RSI are listed below:

1. Overbought & Oversold Conditions

If the value of the RSI is above 70, it is considered that the price of the stock is in the overbought zone and a price correction is expected. In contrast, values of the RSI below 30 indicate that the stock price is in the oversold zone, and a price rebound is expected.

2. Divergence

RSI divergence occurs when the asset price makes higher highs, but RSI makes higher lows and vice versa. RSI and the price of a security move in the opposite direction. This indicates the weakening of the current trend or trend reversal.

Further, Divergence can be of two types:

Regular Divergence – In regular divergence, the asset price and the RSI move in the opposite direction. Further, regular divergence is classified into bullish divergence and bearish divergence.
Hidden Divergence – Hidden Divergence occurs when the asset price and the RSI moves in the same direction and the asset price makes a new high or new low, but the high or low on the RSI is in the same direction. Future, hidden divergence is classified into bearish hidden divergence and bullish hidden divergence.

3. Trend Confirmation

RSI is used to confirm the strength of a trend. If the RSI increases along with the price, it indicates a strong uptrend in the asset. On the other hand, if the RSI falls along with the price, it indicates a strong downtrend in the asset.

4. Support and Resistance Level

RSI can be used in combination with support and resistance levels. For example, the stock price is at its resistance level, and the RSI is in the overbought zone, i.e., above 70. This could indicate a trend reversal in the asset from the current level.

Advantages of RSI

RSI can be applied to multiple financial instruments, including stocks, foreign exchange, cryptocurrencies, etc.
Traders can customise the look-back period for the RSI calculation based on their preferences.
RSI confirms the strength of the current trend in the market and can be useful in identifying overbought and oversold zones.

Disadvantages of RSI

RSI can generate false signals in a sideways market.
RSI focuses purely on price action and does not take into consideration any other external factor, such as news or other economic events.
Interpreting the values of RSI is a subjective task. Different traders may have different opinions regarding the zones of RSI.
RSI is a lagging indicator that reacts to price changes after it happens. This could lead to delayed signals.

Common Mistakes While Using RSI

1. Relying heavily on overbought and oversold zones

The most common mistake that traders make is relying solely on the overbought and oversold zones suggested by the RSI.

2. Ignoring Trend Direction

Traders sometimes forget to consider the overall trend of the market. Their major focus is on the RSI zones and on interpreting these signals. This can lead to poor trading decisions.

3. Impatient Behaviour

Traders may ignore stop losses and make impulsive decisions while focusing on signals generated by the RSI. This increases the risk of significant losses in the market.

Tips for using RSI

Use RSI in combination with other technical indicators and do not solely rely on signals generated by RSI. Keep yourself updated about the upcoming news and corporate events that could affect the price of the asset.
Before getting into any trade, analyse the RSI on different timeframes to get a better view of the market.
Use RSI only as a trend confirmation tool to identify the current market trend.
Be cautious about the false signals generated by RSI.

Conclusion

We have un-winded the RSI, a widely used and valuable technical indicator. The concept of RSI is easy to understand the market trend. One can use RSI indicator across different financial instruments like cryptocurrencies, forex, etc.

However, it’s essential to remember that technical analysis is subjective and RSI should be used along with other tools and indicators for more comprehensive decision-making.

Frequently Answered Questions (FAQs)

Who developed RSI?
J. Welles Wilder Jr.
What is the full form of RSI?
Relative Strength Index.
Is RSI a leading or lagging indicator?
Lagging indicator.
What is the formula for RSI?
Formula for RSI is [100 – (100/1+RS)].
Is RSI above 70 considered an overbought zone?
Yes.

December 26, 2023

D Mart Case Study: Business Model and Marketing Strategy

D-Mart is a leading Indian supermarket chain that focuses on providing high-quality products at low prices. The company holds a strong customer base and is one of the fastest-growing retail channels in India. D-Mart has been able to achieve all this through well-organized supply chain management.

Let’s explore the Business Model, Marketing Strategy, and SWOT analysis of D-Mart.

D-Mart Company Background

D-Mart was founded in 2002 by Radhakishan Damani, a well-known businessman and a value investor. The company opened its first store in Bombay, and since then it has opened over 250 stores across 11 states and 1 union territory. It took DMart almost eight years to start its ten stores.

D-Mart is listed as Avenue Supermarts Limited on both the stock exchanges, i.e., NSE & BSE, with a current market price of around INR 4,000 and a P/E (Price-earnings) ratio of around 110.

Ever since the IPO in the year 2017, the company’s share price has risen almost 550% from its listing price. Further, it has generated an annualized ROCE of almost 20%, which means 20% returns on the capital employed by Dmart.

In the year 2022-23, the company has opened 40 new stores. The company faces tough competition from giants like Reliance Retail, Big Basket, and Spencers.

D-Mart Subsidiary Companies

AEL (Avenue E-commerce Limited): A subsidiary company of D-Mart, founded in November 2014, is a multi-channel grocery retail. AEL allows its customers to order a wide range of groceries online through its mobile app.
Nahar Seth & Jogani Developers (NSJDPL): A subsidiary company of D-Mart, was founded in the year 2014 with the aim of development and construction of land.
Reflect Healthcare & Retail Private Limited (RHRPL): A wholly owned subsidiary company founded in the year 2018 and operates in the healthcare business.

Market Information of D-Mart (Avenue Supermarts Ltd.)

Current Share Price	₹3,822
Market Capitalization (in ₹ Crores)	2,48,694
52-Week High	₹5,485
52-Week Low	₹3,337
P/E Ratio	91.5
Face Value	₹10

(Data as of 18 March 2025)

Read Also: Best Trading Apps in India

Business Model of D-Mart

The D-Mart follows a cluster-based expansion approach, i.e., its major focus is on the area where it already exists instead of focusing on new regions with the mission of being the lowest priced retailer in the area of operation.

Also, D-Mart operates on a B2C (Business to Consumer) approach, i.e., goods are sold directly from the manufacturer to the ultimate consumer.

As of March 2024, the company’s store count stood at 365. Major locations of operation include Maharashtra, Gujarat, Telangana, Karnataka, Andhra Pradesh, Madhya Pradesh, Tamil Nadu, Punjab, NCR, Chhattisgarh, and Rajasthan.

Products of D-Mart

D-Mart provides its customers with multiple daily-use things. It majorly deals in three categories:

Foods: It includes groceries, processed food, frozen food, staples, beverages, fruits, and vegetables. This segment contributes almost 55% of the revenue of the company.
Non-Foods: It includes home care products, personal care products, and other OTC products. This segment contributes around 20% to the revenue of the company.
General Merchandise & Apparel: It includes toys, games, garments, clothes, footwear, utensils, and home appliances. This segment contributes around 23% to the revenue of the company.

As per annual reports of 2023-24, the company has 365 stores, 62 distribution centres, 10 packing centres and had a total of 13,971 employees.

Pricing of D-Mart

Giving low prices to customers is the USP of D-Mart. It focuses on EDLC / LP pricing strategy (Everyday Low Cost & Price). In the D-Mart stores, the prices of the products are significantly lower than the MRP.

This pricing strategy helps them generate more volume in sales since people who visit stores eventually end up buying multiple other products as well.

D-Mart Marketing Strategy

D-Mart stores are generally large and spacious, providing the customer with a good shopping experience. It majorly focuses on Word-of-mouth marketing and In-store promotions rather than expensive marketing campaigns. The iconic green label of the company is the billboard itself.

This strategy has helped the company in better market positioning as compared to other retail businesses.

D-Mart Competitive Strategy

How come D-mart overcomes tough competition from giants like Reliance & Amazon?

What made D-mart different from these giants is that the company focused on selling non-fancy products. They try to understand consumer preferences and form a strong relationship with the suppliers.

The company also follows a store-ownership model and is not located in any fancy and highly-priced market. The company generally owns stores in sub-urban regions. This helped them save a lot of money on rental expenses. We are sure that you have never found a store in a mall or posh locality.

To summarise, the company’s competitive strategies are deep discounting, no fancy locations, and ownership. This helped the company to dominate the Indian retail market.

SWOT Analysis of D-Mart

Strengths

D-Mart’s EDLP strategy helps the company to attract middle-class consumers.
Efficient supply chain management and smooth operational processes have given the company an immense boost in the retail sector.
Offering a wide range of products in food and non-food segments at a lower price than MRPs.
Consistent growth in the revenue and profits of the company is the key strength of the company.

Weakness

Lack of global presence and less geographic reach with less focus on opening stores in new regions.
As compared to the competitors, the online presence and promotion of the company is not at par.
Low pricing strategy of the products can affect the vendors and lead to supply chain disruptions.
D-Mart stores follow a no-frills approach with simple and basic layouts. This may be unattractive for several customers who love fancy things.
D-mart charges a slotting fee from manufacturers who want to display their products in stores. This expense might be a deal breaker for the manufacturers who wish to collaborate with D-Mart.

Opportunities

Focus on penetrating the untapped regions of North & East India.
Investing in online delivery services for a better presence on the internet can help the company further expand its business.
Implementing automation technologies in warehouses and distribution centres can streamline operations and reduce costs.

Threats

An increase in online doorstep grocery services like Blinkit, Jio Mart, etc. can affect the business significantly.
D-mart operates in the retail industry, which has a low entry barrier. Further, it faces tough competition from local stores and supermarkets.
Changes in regulations related to the retail sector and anti-competition policies could impact D-Mart’s operations and business model.

Read Also: Blinkit vs Zepto: Which is Better?

Key Performance Indicators (KPI)

Particulars	March 2024	March 2023	March 2022
Operating Margin (%)	6.92	7.30	6.83
Net Profit Margin (%)	4.99	5.55	4.81
ROCE (%)	18.33	18.79	14.85
Current Ratio	3.13	3.71	2.83
Debt to Equity Ratio	0	0	0
EV/EBITDA	69.20	58.20	98.92

(Data as of 18 March 2025)

Conclusion

D-Mart’s ability to navigate the competitive landscape in India and maintain cost-efficiency deserves a hand of applause. The company’s major focus on low prices, efficient supply chain management, and customer-centric approach significantly helped in its growth. The success story of D-Mart serves as a valuable source of learning for new entrants in the retail sector.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
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3	Nykaa Case Study: SWOT Analysis, Business Model and Marketing Strategy
4	Zara Case Study: Business Model and Pricing Strategies
5	Bajaj Auto Case Study: Business Model, Product Portfolio, and SWOT Analysis

Frequently Asked Questions (FAQs)

Who founded D-Mart?
Radhakishan Damani founded D-Mart in 2002.
Is D-Mart a listed company?
Yes, D-Mart is a listed company on NSE and BSE.
In which year D-Mart was listed on stock exchanges?
D-Mart was listed on the stock exchanges in the year 2017.
In how many cities D-Mart currently function?
D-Mart currently functions in 20+ Indian cities.
Who is the competitor of D-Mart?
D-Mart faces tough competition from Reliance Retail, Spencers, Big Basket, etc.

December 21, 2023

Decoding Hedge Funds In India – Types, Advantages And Distinctions

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

What are Hedge Funds?

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

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

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

Hedge Funds in India

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

There are three categories of AIFs classified by SEBI:

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

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

3. Category III AIF: Hedge Funds

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

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

Features of Hedge Funds

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

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

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

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

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

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

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

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

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

Hedge Funds Strategies:

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

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

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

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

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

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

Fee Structure of Hedge Funds

Here is a breakdown of the fee structure:

1. Management Fees

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

2. Performance Fees

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

3. Hurdle Rate

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

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

Difference between Mutual Funds and Hedge Funds

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

Benefits of Investing in Hedge Funds

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

Demerits of Investing in Hedge Funds:

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

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

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

Conclusion

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

Frequently Asked Questions (FAQs)

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

December 20, 2023

Blog

What To Expect In The Budget 2024?

What is Interim Budget?

What to expect in the upcoming Budget?

Below are some key areas to watch:

A quick look at FY 2023-24 allocation of Budget.

Subsidies for FY 2023-24

Disinvestment Target

Tax Regimes

Old Tax Regime

New Tax Regime

Market’s reaction on the Budget Day

Conclusion

Frequently Asked Questions (FAQs)

Who presents the budget?

Are markets more volatile near the budget?

Which day will the government present the budget for FY 24-25?

What is subsidy?

Will the budget for 2024 affect taxes?

Decoding Credit Risk Funds In India

What are credit risk funds?

How do Credit Risk Funds work?

Advantages of Credit Risk Funds

Disadvantages of Credit Risk Funds

Impact of Interest Rate Changes on Credit Risk Funds

Risks associated with Credit Risk Funds

Credit Risk

Liquidity Risk

Concentration Risk

Interest Rate Risk

Credit Risk Funds vs. Other Mutual Funds

Historical Performance of Credit Risk Funds

Are Credit risk funds suitable for you?

Conclusion

Frequently Asked Questions (FAQs)

What are credit risk funds?

Do credit risk funds offer higher returns as compared to other debt mutual funds?

Credit risk funds are suitable for what kind of investors?

Should you seek professional help while investing in credit risk funds?

Credit Risk Funds are previously known as?

RBI Retail Direct Platform

Retail Direct Platform

Types of Securities

Features / Benefits of Retail Direct Platform

How to open RDG (Retail Direct Gilt account)

Maximum and Minimum Investment Amount

Limitations of Investing in RDG

Conclusion

Frequently Asked Questions (FAQ)

What is the full form of the RDG scheme?

Mention the government securities an investor can invest in using the RDG scheme.

What is the minimum investment amount in T-bills?

Are govt. securities 100% safe?

Who can invest in the Retail Direct Scheme?

10 Top Investors In India And Their Portfolios

1. Radhakishan Damani

Investment Philosophy

Radhakishan Damani’s Portfolio

2. Rakesh Jhunjhunwala

Rakesh Jhunjhunwala’s Investment Philosophy

Rakesh Jhunjhunwala Portfolio

3. Mukul Agarwal

Mukul Agarwal’s Investment Philosophy

Mukul Agarwal’s Portfolio

4. Azim Premji

Azim Premji’s Investment Philosophy

Azim Premji’s Portfolio

5. Ashish Dhawan

Ashish Dhwan’s Investment Philosophy

Ashish Dhawan’s Portfolio

6. Vijay Kishanlal Kedia

Vijay Kedia’s Investment Philosophy

Vijay Kedia’s Portfolio

7. Ashish Kochalia

Ashish Kochalia’s Investment Philosophy

Ashish Kochalia’s Portfolio

8. Madhusudan Kela

Madhusudhan Kela’s Investment Philosophy

Madhusdhan’s Kela Portfolio

9. Akash Bhansali