Want to invest your FD proceeds in mutual funds? Here is how to do it

Most individuals can’t think beyond bank deposits when it comes to deploying their savings. However, fixed deposits do not pay much, and the interest is added to the income and taxed as per the Income Tax slab applicable.

This is the main reason why many investors investing in debt mutual funds instead of parking money in bank deposits. Debt mutual funds may offer market linked returns, which could be marginally higher than bank deposits.

If invested with a horizon of more than three years, debt mutual funds may offer better after-tax returns. Investments in debt mutual funds held over three years are taxed at 20 percent with indexation benefit. The indexation helps to bring down the actual taxes to a single-digit in an inflationary scenario.

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If you are investing for less than three years, both bank deposit and debt mutual funds are taxed similarly. Returns or interest would be added to the income and taxes as per the income tax slab applicable to the investor.

If you would like to explore debt mutual funds, here is some help.

Point to note: there are several kinds of Debt mutual funds. You should choose a scheme that matches your investment horizon and risk profile.

Liquid Funds are very low-risk funds. They invest in highly liquid money market instruments. They invest in securities with a residual maturity of upto 91 days. Investors can park money in them for a few days to few months. These funds may offer marginally higher returns than bank deposits.

For eg. Portfolio of Aditya Birla Sun Life Floating Rate ST

Download (PDF, 113KB)

Floater funds are mostly invest in floating rate instruments. These schemes will invest at least 65 per cent of the total asses in floating rate instruments.

For eg. Portfolio of Kotak Floater ST
 

Banking and PSU funds are predominantly invest (80 percent of assets) in debt instruments of banks, public sector undertakings and public financial institutions.

For eg. Portfolio of ICICI Prudential Banking PSU Debt

Manage your portfolio and enter into the next level of your financial status

Fixed Maturity Plans (FMPs) are a good alternative to fixed deposits for investors in the higher tax bracket. These are closed-ended debt mutual funds with defined maturity. FMPs usually invest in securities which match their tenure and follow buy and hold till maturity strategy. This makes it free from interest rate risk. An FMP may match the yield offered by its portfolio constituents with minute deviations. FMPs also have credit risk, which means that its returns will be hit ..

For eg. Portfolio of Reliance FHF XXXV S16

Download (PDF, 116KB)

Short-Term Funds invest mostly in debt securities with an average maturity of one to three years. These funds perform well when short-term interest rates are high. They are suitable to invest with a horizon of a few years.

For eg. Portfolio of Franklin Templeton Franklin India Low Duration

Download (PDF, 116KB)

Dynamic Bond Funds have an actively-managed portfolio that varies dynamically with the interest rate view of the fund manager. These funds invest across all classes of debt and money market instruments with varying maturities. They are ideal for investors who want to leave the job of taking a call on interest rates to the fund manager.

For eg. Portfolio of IIFL Dynamic Bond

Download (PDF, 88KB)

Income Funds are highly vulnerable to the changes in interest rates. These funds invest in corporate bonds, government bonds and money market instruments with long maturities. They are suitable for investors who are ready to take high risk and have a long-term investment horizon. The right time to invest in these funds is when the interest rates are likely to fall.

For eg. Portfolio of Baroda Pioneer Dynamic Bond

Download (PDF, 82KB)

Mutual fund Strategy: Time to invest in accrual and short-term bond funds

Credit Opportunities Funds are the debt funds which invest in corporate bonds and debentures of credit rating below AAA. The idea is to invest in low-rated securities with strong fundamentals which are expected to see a rating upgrades in the future, benefiting the portfolio and investors. These funds involve high credit risk. A default or a downgrade in a rating of the scheme’s portfolio holdings may hit the returns badly. Their portfolio consists government securities and T-Bills ..

For eg. Portfolio of IDFC Credit Opportunities

Download (PDF, 100KB)

Gilt Funds invest in government securities. They do not have the default risk because the bonds are issued by the government. However, these funds are highly vulnerable to the changes in interest rates and other economic factors. These funds have very high interest rate risk. Only investors with a long-term horizon should consider investing in them.

For eg. Portfolio of HDFC Gilt Short Term

Download (PDF, 82KB)

Debt-oriented Hybrid Funds invest mostly in debt and a small part of the corpus in equity. The equity part of the portfolio would provide extra returns, but the exposure also makes them a little riskier than pure debt schemes. Investors with a horizon of three years or more can consider investing in them.

For eg. Portfolio of Tata Retirement Savings Conservative

Download (PDF, 96KB)

 

RATING

Note: Past performance of fund does not guarantee the future returns.

Mutual Fund Investment are Subjected to Market Risks, Read all Scheme Related Document Carefully.

Disclaimer: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

 

ICICI Sec. IPO Review and the list of anchor investors

ICICI Sec. is a leading technology-based securities firm in India that offers a wide range of financial services including brokerage, financial product distribution and investment banking and focuses on both retail and institutional clients. It has been the largest equity broker in India since fiscal 2014 by brokerage revenue and active customers in equities on the National Stock Exchange, powered by its significant retail brokerage business, which accounted for 90.5% of the revenue from its brokerage business (excluding income earned on our funds used in the brokerage business) in fiscal 2017.

ICICI Securities Raises Rs 1,718 Crore From Anchor Investors.

Download (PDF, 1.85MB)

 

ICICI-Securities-IPO

Its retail brokerage and distribution businesses are supported by its nationwide network, consisting of over 200 of its own branches, over 2,600 branches of ICICI Bank through which its electronic brokerage platform is marketed and over 4,600 sub-brokers, authorized persons, independent financial associates and independent associates as at September 30, 2017.

ICICI Sec. is empanelled with a large cross-section of institutional clients.

IPO Dates & Price Band:

  • IPO Open: 22-March-2018
  • IPO Close: 26-March-2018
  • IPO Size: Approx Rs.4017 Crore (Approx)
  • Face Value: Rs.5 Per Equity Share
  • Price Band: Rs.519 to 520 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 10%
  • Equity: 77,249,508 Shares

Market Lot:

  • Shares: Apply for 28 Shares (Minimum Lot Size)
  • Amount: Rs.14,560

Allotment & Listing:

  • Basis of Allotment: 2-April-2018
  • Refunds: 3-April-2018
  • Credit to demat accounts: 4-April-2018
  • Listing: 5-April-2018

The promoters:

ICICI Bank Ltd.

Lead Managers:

DSP Merrill Lynch Limited

Citigroup Global Markets India Private Limited

CLSA India Private Limited

Edelweiss Financial Services Limited

IIFL Holdings Limited

SBI Capital Markets Limited

Object of the issue:

The objects of the Offer for the Company are to achieve the benefit of listing the Equity Shares on the Stock Exchanges and for the sale of Equity Shares by the Promoter Selling Shareholder. Further, the Company expects that the listing of Equity Shares will enhance its visibility and brand image and provide liquidity to its existing shareholders.

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Our Strengths

Largest Equity Broker in India Powered by Our Proprietary Technology Platform.

Natural Beneficiary of Fundamental Transformation in the Indian Savings Environment.

Strong and Growing Distribution Business with an “OpenSource” Distribution Model.

Superior Customer Experience through Product and Technology Innovation.

Strategic Component of the ICICI Ecosystem.

Strong Financial Performance with Significant Operating Efficiency.

Experienced Senior Management Team.

i8Our Strategies

Strengthen its Leadership Position in the Brokerage Business.

Continue Investing in Technology and Innovation.

Strategically Expand its Financial Product Distribution Business Through Cross-Selling.

Leverage its Leadership in Equity Capital Markets to Strengthen its Financial Advisory Businesses.

Diversify its Revenue Streams and Continue Reducing Revenue Volatility.

Future Supply Chain Solutions Ltd IPO Review

Negative

Some of its Directors, its Promoter and certain Group Companies are involved in certain legal and other proceedings.

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General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.

ICICI Sec. rely heavily on its relationship with ICICI Bank for many aspects of its business, and its dependence on ICICI Bank leaves us vulnerable to changes in its relationship.

The operation of its businesses is highly dependent on information technology, and ICICI Sec. are subject to risks arising from any failure of, or inadequacies in, its IT systems.

ICICI Sec. rely on its brokerage business for a substantial share of its revenue and profitability. Any reduction in its brokerage fees could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.

ICICI Sec. is subject to extensive statutory and regulatory requirements and supervision, which have a material influence on, and consequences for, its business operations.

ICICI Sec. may fail to detect money laundering and other illegal or improper activities in its business operations on a timely basis.

There are operational risks associated with the financial services industry which, if realised, may have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.

ICICI Sec. faces intense competition in its businesses, which may limit its growth and prospects.

ICICI Sec. may not be able to sustain its growth or expand its customer base.

ICICI Sec. faces certain other risks related to its distribution business, which accounts for a significant portion of its revenue and profitability.

ICICI Sec. face various risks due to its reliance on third-party intermediaries, contractors and service providers.

ICICI Sec. face various risks in relation to its investment banking business.

ICICI Sec. may incur losses on its treasury and trading business from market volatility or its investment strategies.

Its Promoter, ICICI Bank, and some of its Directors and related entities may be subject to conflicts of interest because they compete against us and have interests in companies which are in the same line of business as us.

Credit risks in our day-to-day operations, including in its investment portfolio, may expose us to significant losses.

ICICI Sec. have experienced negative cash flows in the prior years.

Cash Flow

i2Financial

Its profit after tax was INR 717.5 million, INR 891.9 million, INR 2,938.7 million, INR 2,387.2 million, INR 3,385.9 million and INR 2,460.5 million in fiscals 2013, 2014, 2015, 2016 and 2017 and the six months ended September 30, 2017, respectively, and its return on equity has exceeded 30.0% for each measured period since fiscal 2013. For fiscal 2017, our return on equity was 69.2%.

Comparison of Listed Peers

i4Valuations

Annualised EPS works out to Rs 10.48 for the year ended March 2017. At the upper end of the price band, shares will trade at 49.6 times its earnings.

High valuations despite less capital intensive business.

Grey market premium

Current GMP is Rs.6/-, and  Kostak is Rs.300/- (sellers)

 

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here

Hindustan Aeronautics Limited IPO Review and Current GMP

Hindustan Aeronautic is engaged in manufacturing, development, design, repair and servicing of products like helicopters, aero-engines, aero space structures, aircraft and many more. Hindustan Aeronautic India has the unique products portfolio and the operations have names like Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex, and Design Complex and they have over 11 production division with 11 R&D centers in India.

Their major domestic customers are Indian Air Force, Indian Army, Indian Navy, Indian Coast Guard, Indian Space Research Organisation, Defence Research & Development Organisation, Ordnance Factory Board, ,Border Security Force, Oil & Natural Gas Cooperation of India, Govt. of Karnataka, Govt. of Jharkhand, Govt. of Maharashtra, Geological Survey of India, Bharat Heavy Electricals Ltd. They export their products in France, USA, Mauritius, Israel, Ecuador, Namibia, Nepal, Russia, UK, Oman, Malaysia, Thailand, Germany and Vietnam. The company received “Excellent” rating from Government of India from 2002 to 2016.

Hindustan Aeronautics is ‘Navratna’ company since June 2007 and the largest DPSU in India. It is the 39th largest aerospace company in the world in terms of revenue. The company was also awarded Raksha Mantri’s Award for excellence in performance under institutional category in FY 2008, FY 2010, FY 2011, FY 2013 and FY 2016.

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IPO Dates & Price Band:

  • IPO Open: 16-March-2018
  • IPO Close: 20-March-2018
  • IPO Size: Approx Rs. 4482 Crore (Approx)
  • Face Value: Rs.10 Per Equity Share
  • Price Band: Rs.1214 to 1240 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 34,107,525 Shares
  • Discount:  Rs.25 for Retail & Employee

Market Lot:

  • Shares: Apply for 12 Shares (Minimum Lot Size)
  • Amount: Rs.14,580 (For Retail & Employee)
  • Amount: Rs.14,880 (For QIB & HNI)

IPO Allotment & Listing:

  • Basis of Allotment: 26-March-2018
  • Refunds: 27-March-2018
  • Credit to demat accounts: 27-March-2018
  • Listing: 28-March-2018

The promoters:

The President of India

Acting through the Department of Defence Production Ministry of Defence.

 Lead Managers:

SBI Capital Markets Ltd
Axis Capital Ltd

Registrar to the IPO:

Karvy Computershare Pvt Ltd.

387_Para_alh civil 3

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Outlook of the Indian Aerospace and Defence Sector

India has the third largest military in the world and is the sixth largest spender in Defence. India is also one of the largest importers of conventional defence equipment and spends approximately 30% of its total defence budget on capital acquisitions. 60% of Indian’s defence – related requirements are currently met through imports.

In addition, the ‘ Make in India ’initiative by the Government is focusing its efforts on increasing indigenous defence manufacturing with the aim of becoming self – reliant.

The opening up of the defence sector for private sector participation is helping foreign OEMs to enter into strategic partnerships with Indian companies and leverage opportunities in the domestic market as well as global markets.

India’s focus on indigenous manufacturing in the defence sector has yielded certain benefits as the MoD over the last two years unveiled several products manufactured in India including the LCA Tejas, the composites sonar dome, a portable elemedicine system for the armed forces, penetration – cum – blast and thermobaric ammunition specifically designed for the Arjun tanks, the Varunastra heavyweight torpedo manufactured with 95% locally sourced parts and medium-range surface-to-air missiles. The Defence Acquisition Council under the MoD cleared defence sector transactions with a value of more than 820 billion under the buy and Make (Indian) and Buy Indian categories. These transactions include the procurement of Light Combat Aircraft, T-90 tanks, mini UAVs and light combat helicopters.

121Our Strengths

India has the third largest military in the world and is the 6th largest spender in the defence sector.

60% of total defence requirements of India as on today is met from imports. Hindustan Aeronautics is poised to gain under the ‘Buy and Make (Indian)’ procurement category. The company has all the necessary capabilities and technology (including licensed technology) to capture maximum relevant defence budget spend going ahead.

Long credible history of research, design and development, manufacturing and maintenance, repair and overhaul (“MRO”) services.

Setting up a goal: First step to Financial Planning ( Video )

Established track record in offering product lifecycle support extending to periods beyond four decades.

Indian armed forces plan to procure more than 1000 rotary wing aircrafts and will revamp their fleet in next 10-20 years.

Strong design and development capabilities.

Leadership position in the Indian aeronautical industry and strong GoI support.

Diversified product portfolio.

Strong financial track record.

Experienced management team and operating team.

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Our Strategies

Expand its operations through partnerships or collaboration.

Diversify through expansion in new growth areas.

Diversify further into the civil aircraft segment for both manufacturing and servicing opportunities.

Develop in-house capabilities to design and develop specialized products including aero – engines.

Leverage Existing Cost Advantage.

Developing Human Capital.

Enhancing customer satisfaction.

Optimising operations towards becoming a lead integrator of aircraft platforms.

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Negative

There are outstanding legal and tax proceedings involving its Company. Any adverse decision in such proceedings may expose us to liabilities or penalties and may adversely affect its business, financial condition, results of operations and cash flows.

Hindustan Aeronautics depend heavily on MoD contracts. A decline or reprioritisation of funding in the Indian defence budget, that of customers including the Indian Army, Indian Air Force and Indian Navy (the “Indian Defence Services”), Indian Coast Guard, Border Security Force, Central Reserve Police Force and Paramilitary forces or delays in the budget process could adversely affect its ability to grow or maintain its sales, earnings, and cash flow.

As a result of national securities concerns,certain information in relation to its business and operations is classified as ‘secret and confidential’ pursuant to which we have not disclosed such information in this RHP nor provided such information to the BRLMs and other intermediaries and advisors involved in the Offer.

The MoD contracts are not always fully funded at inception and are subject to termination. Its inability to fund such contracts at the time of inception or any termination could have a material adverse effect on its financial condition and results of operations.

Its Company is not in compliance with certain provisions of the Companies Act and/or SEBI Listing Regulations in relation to terms of reference of the Audit Committee and the Nomination and Remuneration Committee.

Ongoing disclosure of information in relation to its Company after the listing of the Equity Shares on the Stock Exchanges may be limited and may not be in compliance with the SEBI Listing Regulations and other applicable laws.

The GoI has significant influence over its actions which may restrict its ability to manage its business. Any change in GoI policy could have a material adverse effect on its financial condition and results of operations.

EMI VS SIP ( Be controlled or take control )

Its current order book may not necessarily translate into future income in its entirety. Some of its current orders or requests for a proposal which we have received may be modified, cancelled, delayed, put on hold or not fully paid for by its customers, which could adversely affect its results of operations.

Hindustan Aeronautics is involved in a dispute with the Ministry of Defence of Ecuador relating to their termination of an agreement with us relating to the supply of helicopters to the Ecuadorean Air Force. Its revenue and exports may be adversely affected as a result.

Hindustan Aeronautics also operate in evolving markets, which makes it difficult to evaluate its business and future prospects.

Its earnings and margins may vary based on the mix of its contracts and programs, its performance, and its ability to control costs.

Its business could be materially adversely affected if any default of its causes an aircraft or helicopter accident.

ALH Dhruv Helicopters supplied to the Ecuadorean Air Force were involved in accidents, and The Ecuadorean Ministry of Defence has designated the company as a defaulting contractor and has barred it from bidding for future contracts. This can affect the future exports and company’s ability to bid outside India.

The aircraft such as MiG-21 variants, MiG-27 and the Su-30 MKI, as well as engines and other accessories, and repair and overhaul services for these aircraft that are manufactured in India are done through transfer of technology from Russian OEMs as well as pursuant to inter-governmental agreements with Russia. The United States, the United Nations Security Council and other jurisdictions and organizations have implemented comprehensive economic sanctions targeting Russia in recent years. This can have an adverse impact relating to the supply and support from Russian OEMs for the aircraft that Hindustan Aeronautic manufacture under transfer of technology with such OEMs.

Valuation

On the performance front, Hindustan Aeronautic has (on a consolidated basis) posted turnover/net profits of Rs. 17362.00 cr. / Rs. 994.10 cr. (FY15), Rs. 18754.80 cr. / Rs. 2004.30 cr. (FY16) and Rs. 19596.90 cr. / RS. 2624.70 cr. (FY17). For the first half of the current fiscal, it has earned a net profit of Rs. 391 cr. on a turnover of Rs. 5665.90 cr.

For last three fiscals, it has posted an average EPS of Rs. 54 and an average RoNW of 17.67%. Hindustan Aeronautic’s last three fiscal’s EPS stands at Rs. 73 (FY17), Rs. 42 (FY16) and Rs. 21 (FY15). PAT margins for these fiscals were 14%, 12%, and 6% respectively. It has posted CAGR of 9% for revenues, 62% CAGR in PAT for last three fiscals. The issue is priced at a P/BV of 3.46 on the basis of its NAV of Rs. 358 as on 30.09.17.

It has no listed peers to compare with. Hindustan Aeronautic’s sale to Indian Defense Services accounts for nearly 92% (on an average) of its revenues. According to management, first-half results cannot be annualized to compare as it always does better in the second half due to billings only on delivery of products. However, if we annualize latest earnings and attribute it on its paid-up equity then asking price is at a P/E of 53, but if we consider FY 17earnings, then P/E comes to 17.

Grey Market premium

Current GMP is Rs. 4/- and Kostak is Rs. NIL

 

Only LIC policyholders money can save this IPO.

 

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here

 

Bandhan Bank IPO Review and the list of anchor investors

Bandhan Bank (BB) is a commercial bank focused on serving underbanked and underpenetrated markets in India. It has a banking license that permits it to provide banking services pan-India across customer segments. BB currently offers a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income.

Its strength lies in microfinance, including a network of 2,022 doorstep service centers (“DSCs”) and 6.77 million micro loan customers that BFSL transferred to it, which it has grown to 2,546 DSCs and over 9.47 million microloan customers as of September 30, 2017.With the network of 2,546 doorstep service centers (DSCs) and 9.47 million microloan customers, the bank has strong very hold in microfinance. Bandhan bank has 864 bank branches and 386 ATMs serving over 1.87 million general banking customers. Banks distribution network is strong in East and Northeast India, with West Bengal, Assam and Bihar.

Bandhan Bank Raises Rs 1,342 Crore From Anchor Investors.

List of Anchor Investors

Download (PDF, 412KB)

IPO Dates & Price Band:

  • IPO Open: 15-March-2018
  • IPO Close: 19-March-2018
  • IPO Size: Approx Rs. 4470 Crore (Approx)
  • Face Value: Rs. 10 Per Equity Share
  • Price Band: Rs.370 to 375 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 119,280,494 Shares

Market Lot:

  • Shares: Apply for 40 Shares (Minimum Lot Size)
  • Amount: Rs.15,000

Allotment & Listing:

  • Basis of Allotment: 22-March-2018
  • Refunds: 23-March-2018
  • Credit to demat accounts: 26-March-2018
  • Listing: 27-March-2018

The promoters:

Bandhan Financial Holdings Limited,
Bandhan Financial Services Limited,
Financial Inclusion Trust And North east Financial Inclusion Trust.

Lead Managers:

Kotak Mahindra Capital
Company Limited
Axis Capital Limited
Goldman Sachs (India)
Securities Private Limited
JM Financial Institutional Securities Limited
P. Morgan India Private Limited

Registrar:

Karvy Computershare Private Limited

bandhanbank

Main objects of the issue are:

In terms of the RBI New Bank Licensing Guidelines, the Equity Shares of Bank are required to get listed on the stock exchanges within three years from the date of commencement of business of its Bank, i.e., on or before August 22, 2018. In light of the above, since the Bank is required to get listed on the stock exchanges on or before August 22, 2018, the Bank is undertaking this Issue.  The objects of the Fresh Issue are to augment the Bank’s Tier-I capital base to meet the Bank’s future capital requirements.

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2Strategy

Maintain focus on micro lending while expanding further into other retail and SME lending.

Continue to strengthen its liability franchise.

Boost share of non-interest income.

Enhance its digital platform to improve customer acquisition and retention and reduce costs.

Enhance retail banking systems and procedures to improve efficiency.

Strengths

Operating Model Focused on Serving Underbanked and Underpenetrated Markets.

Consistent Track Record of Growing a Quality Asset and Liability Franchise.

Extensive, Low-Cost Distribution Network.

Customer-Centric Approach.

Consistent Financial Performance and Robust Capital Base.

An experienced and professional team, backed by strong independent board.

2Positive

Focus on the underpenetrated region and new products to ensure loan book growth of more than 23 percent over FY18-20.

The net interest margins (NIMs) of the bank was strong at 9.86%, return on equity (RoE) of 25.55% and return on assets (ROA) of 4.07% (each on an annualized basis) in the nine months ended December 2017 compared with 10.34%, 27.88% and 4.39% in the nine months ended December 2016. The bank has maintained good asset quality amidst challenging macro environment. The gross NPAs stood at 1.67% and the net NPA at 0.80% at end December 2017.

The bank has grown quality asset base over the various phase of development. Its gross loan book has grown from and Rs 7768.79 crore as on 23 August 2015 to Rs 15578.44 crore end March 2016 to Rs 24364.39 crore end December 2017, while customers have increased from 6.77 million to 11.99 million. Deposits base have jumped to Rs 25293.96 crore with CASA ratio of 33.2% and retail deposits ratio of 85.1% end December 2017. The growth in low-cost liability business has led to a reduction in the cost of funding, allowing the bank to lower the lending interest rates while maintaining profitable spreads and further grow the portfolio and capture market share.

The bank’s distribution network is relatively low cost, which in particular is a result of “hub and spoke” model of using DSCs and associated bank branches, as well as focus on tech initiatives. This low-cost model is demonstrated by operating cost-to-income ratio was 35.38% for the nine months ended December 2017 and 36.31% for FY2017.

Overall earnings profile looks comfortable, with premium valuations expected to remain.

The issue seems richly priced, but the bank has a unique business model.

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Negative

Limited operating history and its fast-growing and rapidly evolving business make it difficult to evaluate its business and future operating results on the basis of its past performance, and its future results may not meet or exceed its past performance.

BB cannot effectively compare its financial statements for Fiscal Years 2015, 2016 and 2017 due to irregular terms of duration.

If BB is unable to manage the growth associated with the expansion of its branches, ATMs, and DSCs effectively, its financial, accounting, administrative and technology infrastructure, as well as its business and reputation could be adversely affected.

A substantial portion of its operations is located in East and Northeast India, making us vulnerable to risks associated with having geographically concentrated operations.

Business comprises both traditional general banking activities and modern micro banking activities that expose its business overall to the risks faced by each sector, which may negatively impact its performance.

BB derive a substantial portion of its interest income from advances that are due within one year, and a significant reduction in these short-term advances may result in a corresponding decrease in its interest income.

New India Assurance IPO Review and Current GMP

Microcredit lending has its own unique risks and, as a result, BB may experience increased levels of non-performing loans and related provisions and write-offs that negatively impact its results of operations.

BB rely primarily on deposits as a low-cost means of funding its loan portfolio and there is no guarantee that we will be able to source sufficient deposits or alternative funding to support its business.

An increase in its portfolio of non-performing assets may materially and adversely affect its business and results of operations.

BB may face risks associated with its large number of branches and widespread network of operations which may adversely affect its business, financial condition and results of operations.

Its business and financial results could be impacted materially by adverse results of legal proceedings.

BB does not own the premises at which its Registered and Corporate Office, branches, ATMs, DSCs and other office premises are located.

Comparison with PEERS

6813Valuation

Bandhan Bank’s EPS for 9M of FY2018 on post-issue equity works out to Rs 10.7. At the price band of Rs 370 to Rs 375, P/E works out to 34.6 to 35.0 times.

Post-issue book value of Bandhan Bank works out to Rs 75.6 at the issue price of 370 and Rs 76.0 at the issue price of Rs 375. P/BV works out to 4.9X and P/Adj BV is at 5.0X at the upper price band.

Among the comparable banks, RBL Bank is trading at P/BV (on 9M FY2018 BV) of 3.0X, AU Small Finance Bank is trading at P/BV of 8.4X, Yes Bank is trading at P/BV of 2.8X, IndusInd Bank is trading at P/BV of 4.4X.

Among the comparable NBFCs and leading microfinance lenders, Equitas Holding is trading at P/BV of 2.8X, Ujjivan Financial Services is trading at P/BV of 2.4X and Bharat Financial Inclusion is trading at P/BV of 5.6X.

Grey Market premium

Current GMP is Rs. 26 /- and Kostak is Rs. 800/-

 

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

Bharat Dynamics IPO Review

Bharat Dynamics is one of the leading defense PSUs in India engaged in the manufacture of Surface to Air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment. It is the sole manufacturer in India for SAMs, torpedoes, ATGMs (Source: F&S Report). It is also the sole supplier of SAMs and ATGMs to the Indian armed forces (Source: F&S Report).

Additionally, it is also engaged in the business of refurbishment and life extension of missiles manufactured. It is also the codevelopment partner with the DRDO for the next generation of ATGMs and SAMs. It is a wholly-owned GoI company headquartered in Hyderabad and under the administrative control of the MoD, GoI and were conferred the ‘Mini-ratna (Category -1)’ status by the Department of Public Enterprises, GoI. Founded in 1970, it has over four decades of experience in manufacturing missiles and countermeasures and its allied equipment.

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IPO Dates & Price Band:

  • IPO Open: 13-March-2018
  • IPO Close: 15-March-2018
  • IPO Size: Approx Rs.960 Crore (Approx)
  • Face Value: Rs.10 Per Equity Share
  • Price Band: Rs.413 to 428 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 22,451,953 Shares 
  • Retail & Employee Discount: Rs.10

IPO Market Lot:

  • Shares: Apply for 35 Shares (Minimum Lot Size)
  • Amount: Rs.14,630 (For Retail & Employee)
  • Amount: Rs.14,980 (For QIB & HNI)

IPO Allotment & Listing:

  • Basis of Allotment: 20-March-2018
  • Refunds: 21-March-2018
  • Credit to demat accounts: 22-March-2018
  • Listing: 23-March-2018

Company Promoters:

President of India

Government of India

IPO Registrar:

Alankit Assignments Ltd

IPO Lead Managers:

  • IDBI Capital Markets & Securities Ltd
  • SBI Capital Markets Ltd
  • Yes Securities (India) Ltd

Economic Trends & Growth Outlook

The Central Statistics Organization and the Indian Monetary Fund forecasts India to be one of the fastest growing economy for the 2017-18 fiscal period. The Government of India forecasts the economy to grow at 7.1% during the same year. The growth is among the strongest of the G-20 nations.

Foreign Development Investment (FDI) rates have increased in sectors like defense, insurance, and other sectors. As a result FDI has jumped from $ 36 Billion in 2013-14 to $ 60 Billion in 2016-17. Under the ambit of the ‘Make in India’ initiative, investment procedure, license applications, declarations and other processes has been streamlined to boost investor confidence. Applications for permits have been digitized, and a new uniform tax regime (Goods & Services Tax) has been implemented to reduce complexity in taxation.

The Indian Defence Market – Macro Outlook

The Indian defense market is in a state of transition, as a result of new policies promulgated by the government. The Indian Armed Forces have not been able to spend the entire defense budget allocated, owing to straitjacketed procurement procedures and inherent delays; and the gap between allocated and actual defense spending has been increasing over the years. Frost & Sullivan expects the underspend in defense to decrease during the forecast period, as the government modifies policies to simplify procurement. Reduced underspending will drive defense budgets and the market will expand to $68.7 billion, recording a compound annual growth rate (CAGR) of 6.52 %, or $79.17 billion at a CAGR of 8.04 % depending on the government’s ability to simplify procurement through policy initiatives.

Defense Industry Drivers

Drivers

Terrorism, Borders, and Internal Security Problems

problems

New FDI Policies and DPP 2016

keyDefense Procurement Planning in India

defenceImage Source: Frost & Sullivan

New Policy Developments and Implications

11

Indian Defence Exports are on the rise

exportsIndian Defence Budget Forecast 2017-26

budget1

Guided Missile & Torpedo Market Landscape

world

Reliance Nippon Life Asset Management ( First MF ) IPO Review

Competitive Strengths

Modern facilities and infrastructure to deliver quality products in a timely manner.

Increase in indigenization of our products and implementation of the “Make in India” policy.

Quality control of our products.

Strong order book and established financial track record of delivering growth.

Experienced board and senior management team.

Our Strategies

Continue to invest in infrastructure.

Focus on R&D.

Developing new products.

Provide its product offerings to the international market.

Positive

Valuations are lower compared to peers like Bharat Electronics and Apollo Micro System.

Bharat Dynamics has a strong order book and revenue outlook, coupled with superior return ratios compared to peers.

The company has a dominant position as a government-owned defense enterprise.

Strong return ratios, negative working capital management, strong growth track and superior balance sheet (debt-free) are positive.

Negative

BDL is primarily dependent on a single customer, the Indian armed forces through the Ministry of Defence, Government of India (“MoD”). A decline or reprioritization of the Indian defence budget,the reduction in their orders, termination of contracts or failure to succeed in tendering projects and deviations in the short term and long term policies of the MoD or the Indian armed forces in the future will have a material adverse impact on its business, financial condition, and results of operations, growth prospects and cash flows.

As a result of national security concerns, certain information in relation to its business and operations is classified as ‘secret and confidential’ pursuant to which BDL have not disclosed such information in this DRHP nor provided such information to the BRLMs and other intermediaries and advisors involved in this Offer.

Its business operation is based out of three units in Telangana and Andhra Pradesh. The loss of, or shutdown of, its operations at any of its units in Telangana and Andhra Pradesh will have a material adverse effect on its business, financial condition and results of operations.

BDL’s future growth and expansion are limited by its production capacities, the requirements of the MoD and the locations at which we operate.

Do Not Compare Yourself with Other Investors While Making Investment

BDL’s agreements, memorandums of understanding and non-disclosure agreements with various business partners may not yield the benefits we expect.

BDL derive its revenues from the MoD contracts on the achievement of certain milestones. Its contracts with the MoD are subject to termination.

Imposition of liquidated damages and invocation of performance bank guarantees / indemnity bonds by its customers could impact its results of operations and BDL may face potential liabilities from lawsuits and claims by customers in the future.

BDL is subject to a number of procurement rules and regulations of the MoD, Government regulations and other rules and regulations. Its business and its reputation could be adversely affected if BDL fail to comply with applicable rules.

Its business could be adversely affected by an adverse outcome of an audit by the Comptroller Auditor General of India (“CAG”).

The CAG and its current and past statutory auditors have qualified and made certain observations in their audit report on its financial statements in recent financial years.

There are outstanding legal and tax proceedings involving the Company. Any adverse decision in such proceedings may expose us to liabilities or penalties and may adversely affect its business,financial condition, results of operations and cash flows.

BDL has had a negative net cash flows in the past and may continue to have negative cash flows in the future.

Financials:

Total Income of 2016-17 INR 51,980.7 Millions
Total Income of  6M 2017-18 INR 21,902.51 Millions
Earnings per Share (EPS) INR.21.57**
Earnings per Share (EPS) 6M INR.7.21**
Equity Capital as on 30.9.2017 INR 916.41 Million
Equity Capital after the IPO: INR.
Upper Price Band/last EPS: 19.84**
Book Value of the Share As on September 30, 2017  INR 88.96**
**NAV adjusted for bonus shares  in the ratio of 1:1
Upper offer price/Book Value Ratio: 4.81

It has no direct listed peers to compare with in India. In India BEL, Cochin Shipyard, L&T, M&M, Tata Power, Reliance Defense etc. are working on defense projects but their main revenue comes from another sector.

If we compare BDL to some exact peers in the United States – Lockheed Martin P/E 25, Rockwell Collins P/E 27, Northrop Grumman P/E 26, Raytheon P/E 28. BDL is asking same as international peers. Looks like it is fully priced.

Grey Market premium

Current GMP is Rs.4/- and Kostak is Rs.250/-

Conclusion:

BDL share is offered to retail investors at Rs. 418 ( net of retail discount) PE of 18.43 on Estimated EPS for the current year. So the IPO is very very reasonably priced. Yet due to varied factors Grey market lacks any fancy for this IPO and at the time of listing, Wishes of Grey market prevails.

So Listing Gains may not be significant. yet one should APPLY this IPO for solid Medium to long Term Gains.

 

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

 

Fact sheet of Women fund managers who have outperformed or Underperform over the long-term

Women still constitute only 8 percent of the total number of fund managers in the Indian mutual fund sector but have proved their mettle by delivering significant outperformance.

Altogether 24 women managers manage funds currently, either as primary or secondary managers or as heads of equity or fixed income, compared to 18 last year.

Cumulatively they manage assets worth Rs 3.065 trillion, which equals 15 percent of the total assets under management (AUM) for open-end funds.

The total AUM managed by the women managers has increased in absolute terms, compared to Rs. 2.32 trillion last year.But regarding a percentage of overall AUM, the number remained almost the same as last year.

The number of women in fund management in India has been gradually going up over the years, but the numbers tell us that we still have a long way to go. Many Asian countries have among the highest representation of women in the mutual fund industry.

womens day

61 percent of the AUM managed by women fund managers in India outperformed the benchmark/peer group average over the past one year, 81 percent over past three years, and 86 percent over the past five years, according to the Morningstar report.

Thus, over the long term, funds managed or overseen by women fund managers have delivered significant outperformance based approach. Depends on collective input from investment specialists closest to the source of investment information.

Some women fund manager’s ignored the noise around and proved that career progression isn’t dependent on the gender.

A look at some Women Fund Managers.

Mrs. Swati Anil Kulkarni ( Fund Manager at UTI Asset management.)

Biography

Mrs. Kulkarni is a B.Com (H), MBA (Finance). From Narsee Monjee Institute of Management Studies, Mumbai, CFA and a CAIIB. Prior to joining UTI Mutual Fund in 2004, she has worked with Reliance Industries Ltd.

Summary

Overall, performing about the same as the peer group composite. Nevertheless, over a long track record, the manager has, period by period, consistently managed to outperform the peer group.

Download (PDF, 100KB)

Ms. Roshi Jain ( Fund Manager at Franklin Templeton Asset management.)

Biography

Ms. Jain is a CFA, ACA and PGDM. Prior to joining Franklin Templeton Investments she has worked with Goldman Sachs, London,Goldman Sachs, Singapore, Wipro Ltd. and S. R. Batliboi & Co.

Summary

Overall, performing better than the peer group composite. Over a long track record, the manager has, period by period, consistently managed to outperform the peer group.

Download (PDF, 101KB)

Ms. Jahnvee Shah  ( Fund Manager at Reliance Asset management.)

Biography

Ms. Shah is a B.Sc and an MBA (Finance). Prior to joining Reliance Mutual Fund she has worked with Financial Express.

Summary

Overall, performing worse than the peer group composite. Over a fairly lengthy track record, the manager has underperformed the peer group.

Download (PDF, 96KB)

Ms. Bekxy Kuriakose  ( Fund Manager at Principal Asset management.)

Biography Ms. Kuriakose is a BA (Economics) from Delhi University and PGDM from IIM, Bangalore Prior to joining Principal MF she has worked with L&T MF, Reliance Life Insurance Co. Ltd ,SBI Mutual Fund and Tata Administrative Services.

Summary

Overall, performing about the same as the peer group composite. However, over a long track record, the manager has, period by period, consistently under formed the peer group.

Download (PDF, 102KB)

Ms.Priyanka Khandelwal ( Fund Manager at ICICI Prudential Asset management.)

Biography Ms. Khandelwal is Chartered Accountant and Company Secretary She has been Working with ICICI Prudential Mutual Fund Since October 2014.

Summary

There is an insufficient track record to make any judgment.

Download (PDF, 81KB)

Ms.Payal Kaipunjal ( Fund Manager at Reliance Prudential Asset management.)

Biography Ms. Kaipunjal is an MBA. Prior to joining Goldman Sachs she has worked with Benchmark AMC.

Summary

Overall, performing about the same as the peer group composite. However, over a long track record, the manager has underperformed the peer group.

Download (PDF, 101KB)

Ms.Nidhi Chawla ( Fund Manager at SBI Asset management )

Biography Ms. Chawla holds BBS degree and has also done MBE and CFA. She has over 4 years of experience in mutual fund industry. She is with SBI Mutual Fund since 2007.

Summary

Overall, performing worse than the peer group composite. Over a short track record, the manager has underperformed the peer group.

Download (PDF, 90KB)

Ms.Shalini Tibrewala  ( Fund Manager at JM Asset management.)

Biography Ms. Tibrewala is a B.Com (H), ACA and CS. She has been associated with JM Financials since 2003.

Summary

Overall, performing about the same as the peer group composite. However, over a long track record, the manager has underperformed the peer group.

Download (PDF, 108KB)

Ms.Sunaina da Cunha ( Fund Manager at Aditya Birla Sun Life Asset management.)

Biography Ms. Cunha is a B.Com (H) and MBA from FMS, Delhi. Prior to joining Birla Sun Life Asset Management Company, she has worked with Aditya Birla Management Corporation Ltd.

Summary

Overall, performing about the same as the peer group composite. Nevertheless, over a long track record, the manager has, period by period, consistently managed to outperform the peer group.

Download (PDF, 100KB)

Ms.Ranjana Gupta  ( Fund Manager at SBI Asset management.)

Biography

She is a Commerce graduate from Mumbai University Ms Ranjana joined SBIFMPL in 2008 as Fixed Income Dealer and has over 21 Years of experience in the capital market. prior to joining SBIFMPL, She was heading the broking activities at Twenty-first Century Shares and Securities Ltd from May 1995 to February 2008. She started her career as a dealer in 1995 with OTCEI.

Summary

Overall, performing about the same as the peer group composite. However, over a short track record, the manager has underperformed the peer group.

Download (PDF, 90KB)

What are the Reasons Behind Most Women not Having a Health Insurance Cover?

Ms.Sohini Andani ( Fund Manager at SBI Asset management.)

Biography

Ms. Andani is a Commerce Graduate and C.A. She has over 15 years of experience in financial services. Prior to this, she worked with ING Investment Management Pvt. Ltd., ASK Raymond James & Associates Pvt. Ltd., LKP Shares & Securities Ltd., Advani Share Broker Pvt. Ltd., CRISIL, and with K R Choksey Shares & Securities Pvt. Ltd.

Summary

Overall, performing better than the peer group composite. Over a fairly lengthy track record, the manager has outperformed the peer group.

Download (PDF, 96KB)

Ms.Meenakshi Dawar ( Fund Manager at Reliance Asset management.)

Biography Ms. Dawar is a B.Tech from IGIT New Delhi and PGDM from IIM Ahmedabad. Prior to joining Reliance AMC had worked with IDFC Mutual Fund. She has worked in institutional equities sales and research division on the sell side.

Summary

Overall, performing worse then the peer group composite. Over a fairly lengthy track record, the manager has underperformed the peer group.

Download (PDF, 96KB)

Ms.Khushboo Sharma ( Fund Manager at IDFC Asset management.)

Biography

Ms. Sharma is B.Tech, Post Graduate Diploma in Management (Finance) & CFA Level III Prior to Joining IDFC Mutual Fund she has worked with Franklin Templeton Asset Management India Pvt. Ltd. in Fixed Income Investment Management and Evaluating company Credit and Structured finance deals and has also worked in Thoughtworks Technologies India Pvt. Ltd. in Software Consulting.

Download (PDF, 82KB)

Gargi Bhattacharyya Banerjee ( Fund Manager at Shriram Asset management.)

Biography

Ms. Banerjee is Master of Business Management in Finance and Bachelor of Science with Economics (Hon) from University of Calcutta. Prior to joining Shriram Asset Management Co. Ltd she has worked with Zacks Research Pvt Ltd as Research Head and Shriram Insight Share Brokers Ltd.

Summary

Overall, performing worse then the peer group composite. Over a short track record, the manager has, period by period, over- and under-performed roughly equally.

Download (PDF, 85KB)

Ms.Hetal P Shah ( Fund Manager at Baroda Pioneer Asset management.)

Biography

Ms. Hetal P. Shah is a B.Com, MBA, and JAIIB. Prior to joining Baroda AMC she has worked with Bank of India from may 1999.

Summary

Overall, performing about the same as the peer group composite. However, over a long track record, the manager has underperformed the peer group.

Download (PDF, 105KB)

Ms.Bharti Sawant ( Fund Manager at Mirae Asset management.)

Biography

Ms. Sawant is an M.S. Finance ( ICFAI Hyderabad ), CFA and B.Com. Prior to joining Mirae AMC in September 2013, She was associated with Sushil Finance Securities Pvt. Ltd., Latin Manharlal Securities Pvt. Ltd. and Kabu Shares and Stocking Pvt. Ltd. for Financial Analysis and Research.

Summary

Overall, performing about the same as the peer group composite. However, over a short track record, the manager has underperformed the peer group.

Download (PDF, 93KB)

Ms.Anju Chhajer ( Fund Manager at Reliance Asset management.)

Biography Ms. Chhajer is a B.Com (H) and a Chartered Accountant. Prior to joining Reliance Mutual Fund Ltd. as a fund manager, she has worked with National Insurance Company as a Money Maker Instruments and D.C Dharewa & Co.

Summary

Overall, performing about the same as the peer group composite. Nevertheless, over a long track record, the manager has outperformed the peer group.

Download (PDF, 103KB)

Mrs.Suman Prasad ( Fund Manager at Canara robeco Asset management.)

Biography Mrs. Prasad is B.Sc and PGDMS. She has been associated with Canara Robeco since 1996.

Summary

Overall, performing about the same as the peer group composite. Nevertheless, over a long track record, the manager has outperformed the peer group.

Download (PDF, 103KB)

Real estate rental yield is below one percent

Ms.Chandni Gupta ( Fund Manager at ICICI Prudential Asset management.)

Biography She holds B.E. degree in IT and CFA degree from CFA Institute, USA. She is working with ICICI since October 2012 as Fixed Income Dealer. Prior to that, she has worked with Morgan Stanley, HSBC Bank and Standard Chartered Mutual Fund.

Summary

Overall, performing about the same as the peer group composite. However, over a short track record, the manager has, period by period, over- and under-performed roughly equally.

Download (PDF, 101KB)

Ms.Uma Venkatraman  ( Fund Manager at IDBI Asset management.)

Biography Prior to joining IDBI Mutual Fund, she had worked with B&K Securities, ASK Raymond James, Morgan Keegan and UTI Mutual Fund.

Download (PDF, 79KB)

Ms.Pushpa Rai ( Fund Manager at Escorts Asset management.)

Biography

Ms. Pushpa Rai is a M.Com, MFM (Narsee Monjee Institute of Management Studies) Over 20 years of experience in the financial sector on both, fixed income products as well as equity markets. Previous assignments include Heading Debt funds and managing pension funds, surplus funds with IDBI Capital Market Services (March 2007 – Feb. 2010); Heading Debt and Equity Research at
Mata Securities (Sep 1995 – April 2006).

Download (PDF, 87KB)

Note : Past performance of fund does not guarantee the future returns.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.

What is the treatment cost of Cancer and how to protect it Financially?

In 2015, about 90 million people had Cancer and 8.80 million deaths occurred due to this dreaded disease which is also the second leading cause of death globally. According to World Health Organization (WHO) nearly 10 Lakh new cases are reported every year in India. Unfortunately, nearly 5 Lakh people annually die in India due to cancer and this number will go up and projected to raise five folds by 2025, according to WHO.

During 2016, estimated 1.5 lakh new breast cancer cases have been registered (over 10 per cent of all cancers) in India. Breast Cancer is the number one Cancer followed by lungCancer with estimated 1.14 lakhs cases, according to a premier medical research organisation in India.Cervix is the third most common cancer in India with estimated 1 lakh new cases reported in 2016 according to The Indian Council of Medical Research (ICMR).

The alarming statistics above can make any one depressed and anxious but the fact is that Cancer is now a common disease globally and different types of cancer are being diagnosed every day.

costs

What is the treatment cost of Cancer?

The treatment of Cancer is spiralling with discovery of new drugs and technology. As you may know, in India, the cost is so high that it may wipe out the entire savings of the family and thus ruin the financial future of the family.

In a Cancer treatment, it is next to impossible to put up a cost rate because every cancer case is different.

Difference arise from the organ affected  ( Primary organ and secondary organs that cancer has metastated to ) Further, the mode of treatment and drugs usage changes as per stage of cancer. Hence, the closed estimate of treatment can be provided only after evaluation of your medical reports like CT scan,USG,Biopsy reports etc..

However, there is a way by which you can protect this – the answer is Cancer Protection Plan offered by life insurance companies. But before we discuss that, let us see some example of the tentative costs involved (it may vary from one institute to the other) in treatment of Cancer.

The cost of treating cancer may range from Rs 5 lakh to Rs 25 lakh approximately in six months’ time frame depending upon the stage of diagnosis. Also, people diagnosed with cancer may not be able to continue with their routine income-earning job which may result in loss of regular income.

  • Breast cancer surgery can cost Rs 3,00,000 to Rs. 5,00,000
  • Chemotherapy – The cost depends on the drug applied and the number of sessions. Approximate cost can vary between 50,000 – 100,000 for each session
  • Radiation – This therapy can cost Rs 150,000 – 250,000 per cycle
  • A PET-CT Scan can alone cost Rs 25,000 – 40,000

Source: For costing

Cost of Cancer Treatment in India for all major cancers

How to protect oneself from Cancer

If you have a regular health insurance plan or mediclaim insurance, it pays for the hospitalization cost upto the extent of the sum assured taken. Also, if you have taken a critical illness rider, the life insurance company pays the rider amount immediately on diagnosis of the disease without submission of any bill.

However, as you have seen, the cost of Cancer treatment is so high that, a regular health plan may not be enough to recover the entire treatment cost. Likewise, the coverage in a critical illness rider policy is limited and if you add that too, still it may not be sufficient to recover the entire treatment cost involved for the prolonged period.

The Best Health Insurance Plan for the Diabetic Patients

The answer lies in taking a cover exclusive to Cancer – The Cancer Protection Plan.

How the cancer Protection Plan works

Cancer Protection Plan is normally offered between age 18 to 65 years and it can be taken for 10, 15 or 20 years or 80 year minus age at entry. Sum assured taken can be from 10 Lakhs to maximum 40 Lakhs.

Cancer Protection Plan may come in many variant. For example – Lump sum cover and Lump sum cover with income benefit. In ‘Lump Sum Cover’ the fixed payout is made on diagnosis of cancer and in ‘Lump Sum Cover with Income Benefit’, one can receive a fixed percentage of the Cancer cover amount monthly for few years,over and above getting the lump sum amount on diagnosis of Cancer.

The other benefits of Cancer Protection Plan are that premium for these plans are generally low and in most cases medical examination is not required.

Our country continues to be one of the most under-penetrated in the world, as far as taking health protection plans are concerned. Not even 1% of the total population is insured for health coverage even though there has been a growing awareness of health insurance products. Since Cancer treatment is long-term in nature, it also translates into a recurring expenditure and loss of pay due to a prolong absence from work. This is the reason why one must have a Cancer Protection Plan exclusively over and above the regular health plan.

Even though Cancer is dreaded and the treatment can be prolonged, a Cancer Protection Plan can help not only fight with Cancer but also helps to protect your life’s savings.

 

 

 

(Insurance is the subject matter of the solicitation. For more details on the risk factors, term and conditions please read sales brochure of the respective companies carefully)

 

Source : Priyanka Chakrabarty

 

Top 5 sectors to invest after budget allocation

There are all efforts in Union Budget 2018 to appease rural and EWS population but at the same time Government tried to maintain the fiscal discipline by keeping fiscal deficit target at 3.5% and 3.2% for FY18E and FY19E, respectively.

Although deficit targets are higher as compared to previous estimates but considering surge in prices of crude oil, these are respectable numbers.

Higher than estimated expenses and lower than expected revenue on account of lower GST collection and no spectrum auctions lead to miss on fiscal deficit targets.

Budget speech has talked about total expenses from all agencies at Rs.14 lac crore towards aiding rural economy/farmers’ income.

Here are the top 5 sectors to invest after budget allocation

Rural Spending:

This will have a far-reaching impact on growth rates of country and reduction of income gaps in society. Companies and sectors deriving the majority of revenues from the rural economy like 2 wheelers, FMCG Companies, fertilizer companies will benefit from the push to rural spending. Positive for HUL, Hero Motocorp, ITC, Godrej Agrovet to benefit from the move.

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Infrastructure:

Budget 2018 continued to put a strong focus on infrastructure development, which is in line with the expectations. FM has allocated extra-budgetary support of Rs. 5.97 lakh crore v/s Rs. 3.96 lakh crore in the last budget for the infrastructure sector, which is encouraging as India needs a significant amount of investment in infrastructure due to growing needs.

Higher allocation in infrastructure segment will essentially expedite infrastructure development in the country, which in turn will aid many industries, i.e. metals, cement, building materials, etc.

How to choose the best mutual fund for your portfolio

Construction companies like KNR Construction, J Kumar, NCC to play infrastructure theme from the budget. Positive for cement companies like JK Cement and Sagar Cement to benefit from push to infra.

Healthcare:

Union budget has also proposed coverage of Rs. 5 Lac per household to total 10 Cr households for hospitalization. The move will benefit hospital chains like Apollo Hospitals and Narayana Hrudyalay.

It will also have a positive impact on companies like Thyrocare and Dr. Lal Path Labs. Insurance companies will also benefit because of insurance premium received towards coverage of families.

Affordable Housing:

Among other major initiatives budget has proposed the creation of affordable housing fund under NHB. This will benefit all affordable housing players like Mahindra Lifespace, Ashiana Housing, etc.

It will also have a positive impact on affordable housing financiers like Gruh Finance, DHFL, and Can Fin Homes.

Tyres:

Within tax proposals, the budget has proposed to increase customs duty on imported Truck and Bus Radials from 10-15 percent, which will benefit companies like Apollo Tyres and JK Tyres who have significant exposure towards truck tyres.

 

Disclaimer: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

Warren Buffett that may help you to create wealth in long-term

Warren Buffett’s quotes that can help you invest better in volatile times.

When stock markets turn volatile many investors find it difficult to stay the course. Some investors want to sell off and want to hoard their cash. Some prefer to start buying the stocks that are falling the most. But such knee-jerk reactions may not create wealth for you.

Here are five thoughts of Warren Buffett that may guide you in your investment actions in such volatile times.

1.It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Quality matters. Just because a company has fallen 20% from its 52 week high does not make it a great value buy. Do check the fundamentals of the company. Corrections in the market must be used to buy quality stocks for your long-term portfolio. Buying them at a fair price makes sense for long-term investors. Good businesses tend to compound their profits and reward the shareholders in the long term. Stick to companies that have exhibited decent business performance across business cycles.

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Picking up the micro-cap stocks with great potentials may not reward you if the stories do not materialize as expected. If you have a dud stock in your portfolio, use the spikes to get rid of it. Use the proceeds to buy fundamentally strong companies.

2. Be fearful when others are greedy and be greedy only when others are fearful.

Volatile markets make investors worry about the holdings. The sudden drop in their portfolio’s valuations, make them consider selling out. The same investors were looking for more opportunities when the markets were marching up.

Behavioural issues are a big influencing factor for the retail investors. The emotional swings force them to sell out when it is the time to load up more. Warren Buffett makes it clear that the valuations are attractive when no one is interested in stocks and the other way round.

3. Someone is sitting in the shade today because someone planted a tree long time ago.

This could be one of the ignored quotes of Warren Buffett. It speaks about the delayed gratification and how it impacts one’s future.

If you sow the seeds in the form of regular investments and let them compound over a long period of time, there is a fair chance that you will see the wealth being created.

4. Never ask a barber if you need a haircut.

If you buy the idea of long-term wealth creation and start investing regularly, wealth creation is not guaranteed. You have to stick to asset allocation, and you have to choose the right products that suit your needs.

While choosing your advisor to be sure that his interests are aligned with your interests.

5. No matter how great the talent or efforts, some things just take time. There are no shortcuts – Warren Buffett says. Follow the process and the let the time work for you. The results will be more likely to be in your favour. However, if you try to put your money on tips and get rich quick tricks then you may see some nasty surprises.

‘Ujjwal Bharat’: ABSL Resurgent India Fund – Series 6 Review

Governments across the world are growing more and more socialist and development oriented. In India too, We have noticed that whenever the government has gone about focusing upon a part of the economy or a specific area, there has been long-term development followed by strong market returns for companies operating in that space.

NFOIT and IT-enabled businesses saw a huge surge in 1990’s on the back of favorable govt policy environment and industry growth. 1st half of previous decade saw an emphasis on Infra development, and the 2nd part saw financials taking fore while consumption remained a consistent theme all through. With the new (present) government coming in, Manufacturing got the limelight in 2014 & onwards. All these themes have followed up with strong returns for their investors in the years following govt policy & push. Since its ascent to power, the present government has been reiterating its growth & development agenda through various initiatives and policy directives. Over the past couple of years, the narrative has been gradually shifting to a more grass-roots level financial inclusion & growth and a more sustainable policy environment for ensuring equitable development of the rural and urban economy.

CHARTNote: Past performance of fund does not guarantee the future returns.

Download the Fund Comparison of series 1 to 5

Download (PDF, 90KB)

ujwal bharat

High Govt. agenda

Earlier ABSL launched the ABSL Banking & Financial Services Fund in December 2013, and it proved to be the best performing fund in the pack since that time (generated 30% p.a. vs ~24% p.a. by Nifty Financial Services Index since inception). January 2015 ABSL was launching the ABSL Manufacturing Fund which has delivered 12.9% p.a. vs S&PBSE 500’s 9.4% p.a. As a fund house, other investment calls have also delivered similar performances and are quite visible in the performance of the close-ended series (Resurgent India & Emerging Leaders) where Fund house bet on Small & Midcap in one series and GST theme in another. Almost all series have delivered significant alpha (in range of 2% – 6% p.a.) while being true to mandate.

Aditya birla banking and financial services fund : Review

With a similar moment in the making for Rural Transformation, ‘Ujjwal Bharat’ is the new investment destination of choice. Fund house believes that this theme is a multi-year theme and a strong return generator too. With a power packed team of Satyabrata Mohanty & Milind Bafna (we all know the past few years of superlative performance of ABSL Advantage Fund & ABSL Pure Value Fund) under the aegis of Mahesh Patil.

With the recent tailwind of Union Budget 2018, the government has announced its intent of transforming farmlands of the country into the new Urban! Let’s take advantage of this opportunity.

Salient Features of the NFO:

  • A theme of the fund is geared to benefit from the most significant focus area of the government – Ujjwal Bharat; Huge infra spend & ambitious initiatives by the govt will trigger a cascading effect to a lot of focus areas as well as allied sectors.
  • Multiple structural drivers and tailwinds across sectors aligned to the Ujjwal Bharat story – Agri Inputs, Auto & Ancillaries, Consumer (Discretionary, Durables & Staples), Financials (Banking & NBFCs)
  • Distinctive portfolio strategy to find rerating opportunities across the value chain of the sectors identified.
  • A multi-year theme that will continue to benefit from the strong growth already witnessed by companies across the beneficiary sectors – higher ROE / EPS growth / Sales growth.
  • Complements current investor portfolios with a differentiated theme
  • Correction in markets have already brought valuations to reasonably fair levels across the board

model porfolioAs a fund house, ABSL believes that while there are so many growth drivers for these, will result in rerating for many theme related companies, the unique portfolio strategy of considering 2nd & 3rd order beneficiaries of rural growth for investment will deliver that extra punch in the returns. Sectors like Auto & Auto Ancillaries, Building Materials, Banks & NBFCs, Consumer Staples & Durables, & Agri Inputs are some of the key sectors, where fund house see these potential multi-bagger opportunities.

oppertunity

Scheme Name: Aditya Birla Sun Life Resurgent India Fund – Series 6

NFO open date: 21 February 2018

NFO close date: 07 March 2018

Scheme Type: A close-ended Diversified Equity Scheme ( 3 years and 6 months )

Scheme objective: The investment objective of the scheme is to provide capital appreciation by investing primarily in equity and equity-related securities that are likely to benefit from recove in the Indian economy.

The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.

Scheme Benchmark: S&P BSE 500

Asset Allocation: Equity & Equity related securities: 80%-100% | Money Market & Debt instruments: 0-20%

The scheme may invest up to 20% of the net assets of the scheme in derivative instruments.

Fund Manager: Mr. Satyabrata Mohanty & Mr. Milind Bafna

Mr. Satyabrata Mohanty: Mr. Mohanty is a B.Com (H), Chartered Accountant and CFA. He has been part of Birla group since last 17 years. He has over 12
Years of experience in Finance and Research. He has handled responsibilities across Fund Management (Equity & Debt), Trading and Credit Research functions. Prior to joining BSLAMC, he has worked with Aditya Birla Management Corporation Ltd & joined ABG
as a Management Trainee.

Download the Factsheet of Mr. Satyabrata Mohanty

Download (PDF, 115KB)

Alpha Return:mohanty

Mr. Milind Bafna: Mr. Bafna is a B.E. (Chemical). Prior to joining Birla Sun Life AMC he has worked with Motilal Oswal Financial Services and Reliance
Industries Ltd.

Download the Factsheet of Mr. Milind Bafna

Download (PDF, 97KB)

Alpha Return:

milindHighlights:

Why India is in recovery phase?

Indian economy has turned the corner and is possibly out of the low growth high inflation cycle. The macro trend for the year FY16 has been encouraging with key macro indicators like Current Account Deficit (CAD), Inflation and Foreign Institutional Investor (FII) flows showing improvements.

The term emerging markets symbolizes innovation lead evolution of the marketplaces, India being the fastest growing among EMs becomes the best bet globally. The concern on re-allocation of capital from India to China has subsided post the crash in Chinese equity markets.

In fact, India stands tall as one of the strongest EMS in terms of flows, investor confidence, and performance. We can assign a decent probability to reverse inflows owing to India’s position among the EMs.

The global markets are slowly recovering, India too is set to deliver excellent growth in the medium to long term owing to strong, stable government, improving macros & supportive global sentiment. In addition to this institutionalization of finances by means of demonetization & implementation of GST is likely to result in better capacity utilization & improved earnings for Indian corporates.

India outlookPositive Macros & Key Growth Indicators:

Improving macros like improving PMI index, moderate commodity prices, lowering trade deficit, & govt target of attaining fiscal deficit of 3.2% indicate that the boom is underway.

With the implementation of GST, the tax advantage enjoyed by the unorganized sectors will be reduced significantly & cost of production will go down resulting in the better capacity utilization & growth of the formal economy.

The government has come up with numerous initiatives like ‘Make in India’, ‘Digital India’,‘Financial Inclusion’ etc. that have supported domestic growth as well.

Do Not Compare Yourself with Other Investors While Making Investment

Demonetization has institutionalized the finances further from here the implementation of GST is expected to result in better governance and higher revenue for the government; thus govt.spending in the economy is likely to increase.

Fund house believes in the current scenario; the 8 R’s would be driving the return from equities. Reflation trade taking a bit of set back getting flows back to India, Republicans providing checks and balance for Trumponomics, Remonetization of currency leading to normalization of growth, Rates getting transmitted into the system, Reform process to continue from the government, stability of the Rupee, hopefully a good Rainfall and most importantly Rebound in earnings. These 8 Rs would lead to the most import R which is Returns in the market.driver of ujwal

Risk factors:

Mutual Funds and securities investments are subject to market risks, and there can be no assurance or guarantee that the objectives of the Scheme will be achieved.

Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

The present scheme is not a guaranteed or assured return scheme.

RISK FACTORS ASSOCIATED WITH INVESTMENTS IN FIXED INCOME SECURITIES:

Price-Risk or Interest-Rate Risk, Credit Risk, Liquidity or Marketability Risk, Reinvestment Risk, Pre-payment Risk, Concentration Risk, etc…

Mutual Fund Investment are Subjected to Market Risks, Read all Scheme Related Document Carefully.

Disclaimer: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.