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Top 5 ELSS Funds to Invest in 2023

What are ELSS funds? ELSS funds or Equity Linked Savings Scheme funds, are schemes that invest mainly into equity. They are also considered to be a type of open ended mutual funds. ELSS funds come with the dual benefit of capital appreciation and tax saving. Under Section 80C of Income Tax Act, 1961, you can get a tax exemption of up to Rs. 1,50,000 from the annual taxable income, which is the highest in India. ELSS Funds have a minimum lock-in period of 3 years, the shortest amongst all tax-saving investment options. Through ELSS funds you can invest in a diversified portfolio of equity stocks. ELSS funds also offer the benefit of liquidity as they can be redeemed after the lock-in period. One thing to note, the income you earn under this scheme at the end of the 3-year tenure is considered as LTCG or Long Term Capital Gain, which is taxed at 10% in case the amount is above Rs. 1,00,000. In short, ELSS funds are a wise choice of investment as they are a tax-saving option that can generate high returns. [B-01] Features of ELSS funds ELSS mutual funds come packed with a lot of features. Let’s take a look at them. ELSS funds have the shortest lock-in period of just 3 years. ELSS funds have no maximum investment amount and the minimum amount depends from fund to fund. You can get tax exemption of up to Rs. 1,50,000 under Section 80C of Income Tax Act, 1961. ELSS funds are the only investment scheme that provide tax-savings with a chance to enjoy returns. Though the portfolio of ELSS funds majorly consists of equities, you can also have some exposure to field-income assets. They come with twin benefits, i.e. tax saving and wealth building. How do ELSS mutual funds function? With ELSS funds, you can invest in a predetermined percentage of listed company equities. So, it’s best to keep two things in mind while selecting the companies – market capitalization (Large Caps, Mid-Caps, Small Caps) and industry sectors. With these funds, wealth appreciation can be maximized over a period of time. The fund manager selects equities by researching the market thoroughly to ensure the best risk-adjusted portfolio returns. To save more tax, it is advisable to gain knowledge of tax-saving strategies. Things to Keep in Mind Before Investing in ELSS Investing in an ELSS mutual fund is a profitable investment, but there are certain things to keep in mind: Lock-in Period: ELSS mutual funds have the shortest lock-in period of 3 years, before which, you cannot withdraw the amount. Also, for better returns, invest for 5 or 7 years minimum. Portfolio Composition: Always consider portfolio composition while investing in ELSS funds. For mid-caps, the risk is higher than large-caps. Consistency of Returns: For getting good returns always evaluate its past fund performance against benchmark and competitor metrics. An investment of more than 5 years offers better returns. The Risk Level: ELSS funds involve different risk factors. So a proper research will help in identifying the low risk funds. Pros of ELSS Mutual Funds There are some advantages of ELSS funds. Let’s take a look at them. Tax Savings: First and foremost advantage of this type of fund is that it offers tax savings on your investment. You can get an exemption of up to Rs. 1,50,000 each year under Section 80C of Income Tax Act, 1961. Shortest Lock-in Period: ELSS funds come with the shortest lock-in period of only 3 years. This not only encourages others to start investing at an early age, but it also makes it stand out from other investment schemes. Lower Tax on Gains: In comparison to short-term capital gains which are taxed at 15%, ELSS funds have a lower tax percentage of only 10%, provided the gains are above Rs. 1,00,000. Higher Returns: Since ELSS funds are connected to the equity markets, the returns are higher than any basic savings plan can offer. They also provide better returns than other tax-savings schemes. No Need to Redeem After 3 Years: Another advantage of an ELSS fund is that you don’t have to redeem it after the passing of 3 years. You can continue the investment even after that. Cons of Investing in ELSS Funds ELSS Funds come with many advantages, but there are a couple of cons associated with it too. Let’s take a look at them. A Cap on Tax Exemption: The first disadvantage of an ELSS fund is that the tax exemption is only applicable up to Rs. 1,50,000, irrespective of the amount of the investment you made. For example, if you made an investment of Rs. 10,00,000 over a fiscal year, the exemption will only be worth Rs. 1,50,000. Limited Tax Benefits: As per Section 80C, the tax exemption in ELSS funds include extra items like PPF and life insurance amongst others. That means, if the exemption already amounts to Rs. 1,50,000, you won’t get an exemption on your ELSS funds. Best ELSS Funds of 2023 The best ELSS funds to invest in 2023 are: Quant Tax Plan Fund Parag Parikh Tax Saver Fund Mirae Asset Tax Saver Fund Canara Robeco Equity Tax Saver Fund Bandhan Tax Advantage (ELSS) Fund [B-02] Conclusion ELSS funds offer tax benefits, better returns in comparison to other investment options like Equity, FMP and FDs, making it a preferred investing option for majority of people. They offer profitable options with better returns and trade-offs. It is a wise decision to invest in them, but before you do, make sure you research thoroughly, so that you can pick out the best fund.

08-11-2023

Top 10

Top 10 Stocks to Buy in 2023

The Indian economy is coming up as the fastest growing in the post-COVID era. Experts predict that our GDP will reach $5 trillion by 2026-27. This will make us the world’s third-largest economy. As per those reports, this year will turn out to be great for the Indian stock market. In this article, you will find out the NIFTY 50 Top 10 stocks. But before that, let’s understand a few basics. [B-01] What is a stock exchange? A stock exchange is a stock or equity trading platform. Companies register their stocks on a particular stock exchange. You can then buy or sell stocks on that stock exchange. You can also exchange other financial instruments like derivatives, bonds, etc. In India, there are two major stock exchanges NSE and BSE. These stock markets have separate ‘benchmark’ indexes. A benchmark index is a group of the biggest companies on the exchange. What are the National Stock Exchange (NSE) and NIFTY 50? Located in Mumbai, the NSE is the leading financial market in India. It started in 1992 and is now the 4th biggest exchange in terms of the trading volume. Currently, there are over 1600 stocks listed on NSE. Between 1995-1996, NSE launched its benchmark index known as NIFTY 50. It tracks the performance of the 50 largest companies on the NSE. You can buy and sell as a future and options (F&O) derivative product. What are the Bombay Stock Exchange (BSE) and SENSEX? The BSE is Asia’s oldest stock exchange which was incorporated in 1875. There are about 5749 companies listed on the BSE. SENSEX is the benchmark index of BSE. It includes the 30 top-performing companies on the BSE. Like NIFTY 50, SENSEX is also a free-float F&O product. The BSE incorporated it in 1986. Top Gainers in NSE and BSE The official NSE website shows a list of the Top Gainers in NSE. The Top Gainer Today is a dynamic list that’s updated every day. It shows the stocks which are gaining the most on that day. The BSE official website shows Today’s Top Gainers BSE list. Other Securities and Exchange Board of India (SEBI) certified platforms also show these lists. This list is useful for intraday trading. NIFTY 50 Top 10 stocks in 2023 So far in 2023, it is predicted that the current correction of NIFTY around 10% from its all-time highs. It has created a good opportunity for investors to buy stocks for investors to accumulate stocks for the long-term gains. The NIFTY Midcap 100 advanced 0.66% and NIFTY Smallcap 100 advanced 0.66%. The government is making efforts to increase economic recovery after COVID. This bull run in the market might last a few more years. IT stocks may lead the gain index in 2023. Capital goods, real estate, and the automobile industry will also gain. So now, let us look at the projected NIFTY 50 Top 10 stocks in 2023. Reliance Industries Ltd. (NSE: RELIANCE, BSE: 500325) Reliance Industries Ltd. is a Fortune 500 company and the largest private sector corporation in India. It reported a 19% jump in its march quarter net profit to Rs. 19,299 crore, around Rs. 3,000 more than the previous year. The current price is Rs. 2,496.70 per share. It has the potential to gain up to 20% in 2023. Tata Consultancy Services Ltd. (NSE: TCS, BSE: 532540) Tata Consultancy Services or TCS is one of the leading IT services, consulting and business solutions organisations. It has partnered with many of the world’s largest businesses for over 50 years. The current share price is Rs. 3,283.00 per share. Over the half decade, it is reporting a gain of 19% per year. HDFC Bank Ltd. (NSE: HDFCBANK, BSE: 500180) It is the largest private sector bank in India. It showed a 20% compound annual growth rate (CAGR) in the last 5 years. The current price is Rs. 1,648 per share. Because of the high predicted price, it is a great long-term option. Infosys (NSE: INFY, BSE: 500209) In 2023, Infosys has been recognized as one of the world’s most ethical company for the third consecutive year by Ethispehre. As of 10th May 2023, Infosys’ share market price is Rs. 1,263.25 per share. ICICI Bank (NSE: ICICIBANK, BSE: 532174) ICICI is an India-based international bank. It has a presence in 17 countries. For the quarter of March 2023, its profit ended at 30%. The current stock price is Rs. 933.50 per share, and the quarterly profits are around Rs. 8,900 to Rs. 9,000 crore. Hindustan Unilever Limited (NSE: HINDUNILVR, BSE: 500696) The company has claimed a turnover growth of 11% in the FY2023. Furthermore, its current share price is Rs. 2,530.45 per share. State Bank of India (NSE: SBIN, BSE: 500112) SBI is the biggest centralised bank in India. In the first quarter of FY2023 its year-on-year growth rate was 27.1%, and the net interest income was Rs. 39,657. At the present it’s share price rests at 571.35 per share. Bharti Airtel (NSE: BHARTIARTL, BSE: 532454) Airtel is the first company in India to provide a 5G network. Today, it provides this service across many cities in the country. Its Average Revenue per User (ARPU) and 4G user segment growth are also significant. The current price is around Rs 793.25 per share. It has an estimated growth rate of 11%. Housing Development Finance Corporation Ltd. (NSE: HDFC, BSE: 500010) It is one of the leading housing finance companies in India which offers a wide range of home loans for new and resale properties. So far, it has assisted more than 38 lakh customers in owning a home. Its current price is Rs. 2,748.85 per share and the net profit margin is 17.07%. Adani Enterprises Ltd. (NSE: ADANIENT, BSE: 512599) It is an Indian multinational and publicly listed holding company and is a part of Adani Group. In this year, it has gained a net year-on-year profit of Rs. 2,472.94 crore. It’s revenue surged over 97% to Rs. 1.37 crore. Its current price stands at Rs. 1,895.35 per share. [B-02] Conclusion The stock options included in this article are based on industry research. Before investing in stocks, you must have detailed knowledge about the process. Piramal Finance offers you accurate information on banking and financial services. Make sure your financial knowledge is up to date on essential services and products, such as personal loans and stock trades, by reading the informative blogs on their website.

08-11-2023

Mutual Funds

How to Select the best Large-Cap Mutual Funds?

Large-cap mutual funds buy shares in companies with a lot of money on the market. It’s well known that these mutual funds give stable returns. Large-cap funds put their money into businesses that are the best in their field. [B-01] About large-cap mutual funds: There are many mutual funds to choose from on the market. Large-cap funds put more money into companies with big market values. The rules may be different for companies with a lot of money. Still, the most valuable thing on the market is people. People think large, important funds will give consistent and steady returns over time. Yet, investors may be better off with riskier small- and medium-cap funds. Benefits of Investing in Large-Cap Funds Financial Security: These firms are solid due to robust business strategies. Thus, the growth and sales are steady. As a result, a significant endeavour is unlikely to fail due to market conditions. Furthermore, many corporations provide dividends, contributing to investors’ wealth. Liquidity: Another benefit is that they have enough cash. So, it is easy to sell your investment and not lose money. This is especially important for strains that aren’t stable. Resist the recession: Large-cap mutual funds do well when the market is going up, and they can handle market volatility. It’s a great way to get through a downturn without hurting the future of your business. Dividend Distributions: Investing in large-cap funds makes you more likely to keep getting dividends. Most of the time, you shouldn’t expect the price of large-cap funds to go up. Companies have already made a name for themselves in the market. Because of this, stock prices may stay the same, and investors may not make much or any money. Large-cap firms pay dividends to shareholders whether the stock price goes up or down. The Demerits of Large-Cap Funds Large-cap funds are equities, so they have the same risks as others. Here are some of the risks that come with large-cap mutual funds: Market Danger: Market risk is how likely it is that the markets will fail. Several economic and political events can cause changes in the market. Interest Rate Risk: Interest rates change based on how much credit is available among issuers and how much demand there is in the market. If interest rates go up, the security price may go in the opposite direction. Risk of Liquidity: The liquidity risk is that fund managers won’t be able to sell their holdings for a profit because they won’t be able to find enough buyers. Concentration Risk: When money is invested in only one industry, this is called “concentration risk.” There’s no doubt that when you put all of your money into one area and it does well, you make a lot of money. There are pros and cons to everything. But as we can see, the pros of large-cap mutual funds are more important than the cons. How Do You Select the Best Large-Cap Mutual Funds? When investments produce solid returns, these are enjoyable. This can only be done if you choose the right fund. You can choose the best large-cap mutual funds based on the following factors: Experience of the Fund Manager: Experience doesn’t always lead to good results. Even if a manager has never invested before, they will know how to do it better than someone who has never done it before. So, when choosing a large-cap mutual fund, you should look at the fund manager’s track record. This makes sure that the investment plan has a good chance of working. Exit Load: If you take money out of most large-cap mutual funds in the first year, you must pay an exit cost of 1%. Since large-cap mutual funds are investments for the long term, this wouldn’t change much. But in an emergency, you can leave before the year is up. So, before you invest, you should think about the fund’s exit load. Investment Goal: The first stage in the investing process is to identify and define goals. Goals need to be broken up into periods, and the proper funding needs to be chosen for each goal. Large-cap funds are great for investing over the long term. Because of this, large-cap funds are best for steady returns. Taxation: How large-cap funds are taxed depends on how long the investment is held. Gains are taxed at 15% for less than one year and 10% for more than one year (above INR 1,00,000). Aside from that, investors must pay a stock transaction tax of 0.001% every time they sell units in the fund. Starting on April 1, 2020, there will no longer be a tax on dividend payouts. The investor’s marginal tax rate will now be applied to the dividend. On dividends over INR 5,000, the investment houses would take out a TDS of 10%. The expense-to-income ratio is the fee that the bank charges for keeping the fund running. Consider investing in mutual funds with lower expense ratios, since higher expense ratios reduce returns. Who Should Consider Investing in Large-Cap Funds? As already said, large-cap funds are good for stock investors who want to be careful. People who want to diversify their portfolios should buy large-cap funds. Diversifying a portfolio means having stocks from big companies in many different fields. If the industry doesn’t meet its goals, the other parts may be able to take the hit. Let’s say you don’t want to take a big risk and are fine with getting average returns. Then you should think about putting money into these funds. These funds can help people who have never bought stocks before get started. It will show what large-cap mutual funds can do. [B-02] Conclusion In the end, every portfolio should have large-cap mutual funds. They give a much-needed pick-me-up. Why wait any longer to put money into learning all you can about large-cap funds? But before you start, think about the things we talked about above. Choose a fund that fits your financial goals, how you feel about taking risks, or how long you want to invest. Still, if you want good advice on investing, a financial expert like Piramal Finance offers you accurate and authentic information on mutual funds, personal loans, and banking procedures. Visit us now!

08-11-2023

Bonds

How To Buy Gold Bonds And What Are The Advantages?

Sovereign Gold Bonds have become an investment choice for private investors. Even the Indian government consider Sovereign Gold Bonds or SGB a great investment (since late 2015). Gold Bond’s purpose is to let investors partake in the change of gold prices without worrying about the complexities of purchasing and selling actual gold. Plus, other gold investments do not have similar benefits as sovereign gold bonds. Keeping gold in the form of sovereign gold bonds (SGB) is better than having gold in the form of real gold. When transformed into jewellery, it results in a loss of 15% and 20% because of manufacturing. Storing gold in the form of coins or gold bars is also a smart investment. However, there are costs for storing, insuring, and maintaining actual gold. While you can store SGB in your DEMAT account or even as physical certificates. In SGBs, the problems of gold maintenance and translation loss are substantially eliminated. [B-01] What are Gold Bonds? The value of a sovereign gold bond is in kilograms of gold. Multiples of one gram are available (gm). The minimal investment is thus 1 gram. Four kilograms of gold per investor every fiscal year is the maximum amount of gold you buy with gold bonds. You can select a nominee. However, do not forget to change the nominee information during investing. How to Buy Sovereign Gold Bonds? When the government issues sovereign gold bonds in tranches, they are accessible for purchase. Buy SGBs from nationalised banks, post offices, stock holding corporations of India, scheduled private banks, or licensed stock market traders. The application form is also available on the Reserve Bank of India website. You may submit an online application through the websites of the above-scheduled commercial banks. For investors applying online and paying using a digital method, the issue price of the gold bonds will be INR 4081 per gram, less than the nominal value. For the purchase of SGBs, you need a PAN number. Step-by-Step Guide to Buy Gold Bonds Step 1 – Open your net banking account and sign in Enter the credentials to access the online banking services. If someone doesn’t have a login ID, they must create one. Step 2 – Select “e-Service” from the main menu. Then choose “Sovereign Gold Bond.” Step 3 – New users should select “Register,” and then review the “Terms and Conditions” established by the Reserve Bank of India. Once all terms and conditions are read and understood, select “continue.” Step 4 – Along with the information of the registered user from NSDL or CDSL, which holds the investor’s DEMAT account, add the necessary details for the SGB scheme. Step 5 – Once you have filled out the registration form, click submit. Step 6 – After registration is completed, select the purchase option from the header tab. Those who have already registered can ignore the registration procedure and move directly to the header tab’s “Purchase” option. Step 7 – Add subscription quantity and nominee details. Step 8 – Enter the OTP (sent to your phone) to complete the process. Eligibility Foreign Exchange Management Act of 1999 states to invest in SGB, a person must be an Indian resident. Individuals, HUFs, trusts, colleges, and nonprofit organizations are among the permitted investors. If someone has purchased SGBs as a resident Indian and afterwards changed their status to non-resident India, they can keep the bonds until redemption or maturity. Minors can also apply for SGBs, as long as their guardian makes the application on their behalf. Joint holding of SGB is also permitted. Advantages to Buy Sovereign Gold Bonds Safety If we compare sovereign gold bonds with real gold, then there are no major risks associated with sovereign gold bonds. However, the only thing that one can worry about is market collapse. In SGB, there are no exorbitant design or waste fees. SGBs generate interest, as opposed to real gold, which is a fruitless investment. Tradability Within a certain date, gold sovereign bonds are tradeable on stock markets. You may, for instance, exchange them on the Bombay Stock Exchange or the National Stock Exchange after five years of investing. Tax Benefit The tax advantage of the Sovereign Gold Bond plan is very significant. There is no TDS on the interest you get from your SGB investment. You can also exchange the bond before maturity to obtain the indexation advantage. Also, the capital gains tax will be waived if you redeem the bond after maturity. But, the interest is completely taxed according to your tax bracket. Liquidity Factor Investors are aware that liquidity is essential to the secondary market’s success. The Sovereign Gold Bond series is not available for random purchase. To meet investor demand, the series has to have a high liquidity quotient. Interest Interest is one of the most significant advantages of the Sovereign Gold Bond system. On the SGB investment, the government provides a fixed yearly interest rate. Investors will receive the interest regardless of whether the price of gold grows or lowers. Collateral Some banks may accept SGB as security or collateral for loans that are committed in Demat form. Therefore, after fixing the loan-to-value (LTV) ratio to the value of gold, they will regard it as a gold loan. Who Can Invest In Sovereign Gold Bonds? You can diversify your portfolio by holding 5% to 10% or more gold. It is ideal for those with a low appetite for risk because it is a low-risk investment. SGBs are quite inexpensive to buy or sell compared to actual gold. In comparison to the cost of buying or selling actual gold, the SGB is also inexpensive. SGBs are another option for those who don’t want to deal with the difficulties of keeping actual gold. This is because it is simple to keep this in DEMAT form; since they are in electronic form, no one can take them. [B-02] Conclusion All buyers of gold should purchase gold bonds. This is a fantastic, credit-risk-free investing option. There aren’t any yearly or making costs associated. Additionally, it is taxed like actual gold and has indexation benefits. If you need help with finances, you can always take the help of experts such as Piramal Finance to help you find the best solutions to finance your purchase, such as personal loans or credit cards. Visit our website to know more!

08-11-2023

Bonds

Types Of Bonds In India That Investors Can Invest In

Bonds allow investors to lend money to a company or government for a specific time and get interest payments regularly. The issuer will pay the investor when the bond’s due date comes. Bonds are sometimes called “fixed income” because they give investors regular payments for as long as they keep their money. Businesses sell bonds to raise money for their operations, new ventures, and purchases. Governments often sell bonds to help balance their budgets and make up for lost tax revenue. A person who buys bonds is a debt holder of the company that made the bonds. Bonds are an important part of a well-balanced portfolio because many types of bonds, especially investment-grade bonds, are safer than stocks. Bonds are a great way to keep your money safe for retirement and get a steady income without worrying about the market’s ups and downs. [B-01] What are Bonds? Investors can borrow money by buying bonds that work the same as promissory notes. Bonds are debt security given to investors by people who need short-term loans. You give the issuer money when you buy a bond from a government, city, or company. Before looking at different types of bonds, investors should understand some of the most important things about bonds. Maturity: It is the date by which a bond issuer must pay back the principal and interest to the investors. Bonds can be paid off after a few years, a few decades, or never. Face Value: Face value is the amount of money you will get back when your bond matures. A bond’s face value determines how much interest it will pay. The par value of most bonds is Rs.1,000. Coupon – The fixed amount of interest that the bond issuer pays to those who own bonds. If a Rs.1,000 bond has a 3% payment, the issuer will pay back investors Rs.30 per year until the bond matures (3% of Rs.1,000 par value = Rs.30 per year). Bond Yield: The rate of return on a bond over a year is called its yield. The work of a bond is not the same as its coupon, which is not tied to the bond’s price on the secondary market. Price: Most bonds, if not all, are traded on secondary markets after they are first sold. On the market, there are prices to buy and sell bonds. The asking price is the least amount a seller will take, while the bid price is the most a buyer is willing to pay for a bond. Risk Duration: This is the amount a bond could lose in value if interest rates change. Bonds tend to lose one percentage point of their value when interest rates go up by one percentage point. If a bond has a longer term, its price is more affected by changes in interest rates. Types of Bonds There are many types of Bonds in India: Government Bonds, Sovereign Gold, Corporate, Convertible, RBI, etc. Government Bonds Government securities are bonds issued by the federal or state governments of India. Government securities (G-Sec) or Indian Government bonds have terms ranging from five to forty years. The Government of India has put out these Government bonds so that people in India can save money in the hopes of making money with less risk. Sovereign Gold Bonds If you want to invest in gold but don’t want to hold actual gold, you can buy the Sovereign Gold bond, a gold bond issued by the central government. The interest income from this Sovereign Gold bond is not taxed. It is a very safe bond because the government issued it. Corporate Bonds Bonds are a way for companies to get money from investors for a set amount of time in exchange for a fixed interest rate for the bond’s term. Corporate Bonds are bonds that businesses usually give to investors to get money to start a new business or expand into new markets. Instead of getting a loan from the bank, the company is turning to investors willing to put up their own money in exchange for a fixed return over a set period. At the end of the term, investors will get their money back plus the annual interest rate on corporate bonds. Fixed-rate bonds are a good choice if you want a steady return on your money. Convertible Bonds Convertible Bonds are a type of bond that is like both debt and equity, but they don’t have both of those things at the same time. Bondholders can become shareholders of the company and get all the benefits of owning stock by having their bonds turned into a set number of shares of stock. Convertible bonds give investors access to both the debt and stock markets. RBI Bonds The interest rates on RBI Bonds, also called variable rate saving bonds 2020 (FRSB), change over the seven-year term of the bond. In other words, you won’t get the interest rate at the end of the term. Instead, you’ll get it every six months starting January 1, 2021. Capital Gain Bond Long-term capital gain is the profit you make when you sell something you’ve owned for more than two years (Land or Building). You can get a tax break if you put the money from the sale into certain bonds within six months. 54EC bonds also called “capital gains bonds,” are one of the best ways to save on long-term capital gain tax. [B-02] Conclusion People should invest in becoming self-sufficient and financially stable. Bonds are a great way for investors to put their money to work in India because there are so many various types of Bonds available. Before you buy a Bond, you should do a lot of research. Indian government bonds are the safest way to invest because the Sovereign guarantees them. People who want to keep their risk to a minimum should buy these kinds of securities. Also, it’s a great long-term investment for people who don’t know enough about the stock market or have enough experience to invest in stock market instruments. Looking for more banking information? Visit Piramal Finance. Check out our website for other financial services like housing or MSME loans, personal loans, etc.

08-11-2023

Other

Top 10 Initial Public Offerings (IPO) Investing Strategy For 2022

An initial public offering (IPO) is the process of selling shares of a private firm to the public for the first time in a new stock issuance. It allows a corporation to raise equity money from the general public. An IPO’s primary goal is to raise capital. Companies offer investors a percentage of their stock shares. It helps to raise money to support business expansion, debt repayment, and general corporate purposes. [B-01] IPO has been in the news for ages, and people have been making fortune with IPO investments. But it is not the same for everyone. Moreover, it is essential to understand that IPO investment has several challenges. Even the latest IPO news shows several instances where different firms performed well on the first day of their IPO, but were a massive fiasco later on. And many suffered from major losses that were hard to recover from. Thus, when it comes to investing in IPOs, you need to have the right strategy that will reduce your chances of making bad decisions and bearing losses. Based on this thought, we have created this article that will help you to formulate the right investment strategy for IPOs in 2022. So, without any further ado, let’s get started! Top IPO Investment Strategies for 2022 Conduct Thorough Research It is difficult to obtain information about firms that are about to go public. Look online for information about the firm and its competitors, finance, previous press releases, and the overall health of the industry. Even if reliable information is limited, understanding everything you can about the firm is a critical step in making a prudent purchase. Conduct a thorough web search for information about the firm and its competitors, including historical press releases and finance, as well as the overall health of the sector. Understand How You Spend Money Law requires every firm considering an IPO to outline its plans for using the funds raised. Their progress is also seen in how they spend their money. When it comes to investment, it is important for individuals to have a clear understanding of how the companies are using their funds. If they are only using it to waive off loans, then it is certainly a bad investment. However, if the investment is going for a good cause, and helping the company to grow then it is a good investment. Find Where Your Funds Are Invested You may find in-depth details about how your money is used in a draft red herring prospectus that the firm submitted with SEBI. This will help you decide whether or not you should invest in the initial public offerings. For example, if a firm only raises money to pay off loans or has other obligations, then it is not a safe investment. Though if a firm raises money to support research, then it accounts for a promising IPO investment. Check Out For Valuation Because technical analysis is required, this is one of the most essential and time-consuming aspects of picking an IPO. Before deciding on the ultimate offer price, the company’s investment banker and underwriters evaluate the management quality and profitability. Thus, compare the IPO’s valuation to that of a publicly traded competitor. Make an Investment in Cut-off Prices To enhance your chances of getting an IPO granted to you, you should apply at the cut-off price as opposed to a bid price. For instance, if a firm declares that the price range for their initial public offering is between Rs. 10 and Rs. 20, you might decide to bid at the ‘cut-off’ price rather than selecting a number within the range. Know the Lock-in Period The lock-up term is a legally enforceable contract between the underwriters and business insiders. It prevents investors from selling any IPO shares for a defined period (three to 24 months). Traders follow this practice to wait until insiders are free to sell their shares. So, if you are planning to invest in IPO let the market run its course before making a move. Plan Exit Strategy Traders have followed this method for many years. This is especially true for IPOs that occur at the end of a bull market. This may lead you to feel that the ideal option is to sell all of your IPO shares on the day it is listed. This method is especially appealing to traders who wish to earn quickly on the first day of trading. Shares of good firms often list at high values and subsequently fall over a few months. So, if you are a short-term investor looking to exit in a matter of days (also known as flipping), you should pre-determine your exit levels. Understand The Risk-Taking Factors Any strategy is incomplete without considering the risk factors. Renowned investors and traders swear by risk analysing factors before making sound investments. The same risks apply to IPO investments as to any other market-linked transaction. While developing your IPO trading strategy, you should research to identify the risk involved as a retail investor. Don’t Fall for Brand or Hype A well-known brand does not ensure a successful IPO. Don’t invest in an IPO simply because you believe the brand’s prospects are excellent. Analyze the history of the specific firm providing shares. The brand may be strong, but the firm providing shares may be struggling. Also, don’t buy anything simply because others say it will perform well or because it is trendy. According to the Latest IPO news, the upcoming IPOs in 2022 are: Instacart Stripe LIC Adani Delhivery SnapDeal Mobikwik NSE [B-02] Conclusion These are some of the strategies you can use to evaluate a public offering before investing in it. However, evaluating a corporation is a difficult task. So, this is where an IPO adviser comes to the rescue. Reach out to Piramal Finance to keep up with all kinds of global financial trends and guide you to make the best financial decisions. We help you learn everything about relevant developments in the world of finance and avail of personal loan or business loan if any.

08-11-2023

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Best 5 Commodities to Trade in India in 2023

2023 has offered the market plenty of opportunities in commodity trading. The previous three years shook the markets and affected every sector. Though commodities were one of them, they could keep up the growth. But, continuous observations and analysis of the local and global markets are inevitable. Events happening in different parts of the world can impact commodity market prices. And the government’s response also has a role to play. For example, the Ukraine-Russia war caused a price increase in petroleum and food. Such situations affect your trading decisions and results. Hence we have come up with the best five commodities to trade in India in 2023. Read on [B-01] Top 5 Items to Consider for Commodity Trading in India in 2023 Gold As rare as it is, the popularity of gold is soaring day by day. We, humans love to own and wear, but it is also used in industries like jewellery, dentistry, and medicine. Since time immemorial, gold has been a high-value commodity. The governments around the world also consider it a financial asset. India is the second largest consumer of gold jewellery in the world after China. The consumption is on a steep rise since 2021. In 2022, it was 774.1 tonnes, and it has been predicted that the consumption of gold will be somewhat in between 750 to 800 tonnes. There is a reason for the gold to be in such huge demand in India. People consider it a protective commodity against economic downtrends and inflexion, as its price goes up when the value of the Indian rupee goes down against the dollar. Gold is available in different sizes, i.e., Gold Mini, Gold Guinea, and Gold Petal. Thus it becomes easy to buy and sell. Hence it is one of the best options for online commodity trading in India in 2023. Silver: Silver is another commodity that is very popular in India. It is helpful in many industries, like jewellery, electronics, dentistry, and medicine. Silver, given its diverse applications, has always been in demand globally. The global supply of this metal was 26,000 metric tonnes in 2022, and it is expected to rise to 29,908 metric tonnes in 2023. The price of silver in India in 2023 is around Rs. 78,100 per kg. These numbers suggest the importance of silver as a commodity in the market. They also put this metal on the commodity trading list in 2022 in the Indian market. Crude Oil: The third sought after commodity in India is crude oil. It’s not only used as a source of energy, but also in petrochemicals, production of textiles, production of fertilizers, production of steel, lubricants, and plastics. The beginning of the pandemic in 2020 caused a steep decrease in the use of petroleum. But then vaccinations came, and their distribution turned the tables. The restart of world trade and cargo movements added fuel to the fire. Since 2021 its demand has only gone up. India consumed 222.30 million tonnes of petroleum products, and it is estimated to rise to 233.81 million tonnes in 2023-2024. Its commodity market prices price is 73.87 USD per barrel or about Rs. 6000. The demand for crude oil is high and will increase in the future in India. And the market will see ups and downs within the price range mentioned above. That means online commodity trading in crude oil in India can render good returns in 2023. Natural Gas: Natural gas is a form of gas made from fossils found deep under the earth. CNG, a compressed natural gas, is a cheaper, safer, greener energy source. Many industries use CNG for various purposes and are in high demand. This demand will further increase as the Indian government recommends it to the power sector. CNG produces 80% lower carbon monoxide and costs less when compared to petrol and diesel. Hence it is not only affordable for the consumers but also good for the environment. There are 4500 CNG filling stations in the country as of 2022. Further, the petroleum and gas ministry has announced the setting up of 3500 stations by 2024. It will lead to more consumption and demand. And natural gas will become a more profitable commodity.Natural gas is a form of gas made from fossils found deep under the earth. CNG, a compressed natural gas, is a cheaper, safer, greener energy source. Many industries use CNG for various purposes and are in high demand. This demand will further increase as the Indian government recommends it to the power sector. CNG produces 80% lower carbon monoxide and costs less when compared to petrol and diesel. Hence it is not only affordable for the consumers but also good for the environment. There are around 5000 CNG filling stations in India in 2023, and it is expected to rise to 8000 by 2024. It will lead to more consumption and demand. And natural gas will become a more profitable commodity. Copper: Copper is an optimal conductor of heat and electricity. Also it is resistant to corrosion and the effects of the weather. That is why it is used in numerous industrial and manufacturing applications such as; electrical wires, piping, roof tiles, industrial machinery, and also in making alloys. Globally, it is one of the most used metals. Due to its high demand in the industry, its price is affected by the health of the local and global economy. [B-02] Conclusion 2023 has experienced a jump in business and trade activities from the beginning. And some commodities have caught the eyes of traders globally. The top five are gold, silver, crude oil, natural gas and copper. We hope you will find this article helpful for online commodity trading in India. Visit the Piramal Finance website for more about trading, investment, and finance. We take care to suggest what’s financially best for you and help take care of your loan requirements if any.

08-11-2023

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Things To Consider Before Buying Dressing Table With Storage

One frequently overlooks the need for a dressing table while identifying the fundamental pieces of furniture that every home must have. A dressing table is a necessary addition to every bedroom. It is more than just a piece of furniture. A dressing table is just as important as a clean bed in the room where you sleep. [B-01] What is a dressing table? Dressing tables are an important fixture in any room because they offer several benefits, including allowing you and your partner to arrange your accessories and cosmetics. It is typically situated in the main bedroom or in each room with a bed if the room’s size permits, where it is known as a dresser. It is similar to a dining table because it brings the family together. Because it is here that everyone spends time getting ready for social events. A dressing table with storage is essential because a dresser helps to keep your grooming supplies organized. There are a variety of options on the market; however, if you’re unsure which style of dressing table to choose, here are some suggestions: Planning is essential in advance. Considering the colour combinations in a well-lit space might help you make purchasing decisions for a dressing table. Always check out samples before purchasing. Imagine the table in your room and create a visual image of it. Customize it to suit your needs. You may choose dressing tables in different styles based on factors like the size of your room, the atmosphere, the amount of storage you need, and your personality. When picking a cabinet, you need to consider these points because they improve the appearance of your room. Considerations before purchasing a dressing table with storage Choosing a dressing table will be easier if you keep your storage needs in mind. You should choose a cabinet that will make maximum use of your available space. Select storage over aesthetics. It is important to have a dressing table with more storage than just an eye-catching style. In an overloaded bedroom, it is the storage that will finally matter. If you have a lot of jewellery, skin care products, makeup, or any other valuable items like watches or perfumes, you need a dressing table with a designated space for everything. Opt for a dressing table with lots of spacious drawers. But if you only need one or two small drawers, a simpler design with one or two larger drawers may be enough. You need a dressing table with ample storage so you can fit all your things into one single space. A dressing table with storage is essential if you prefer to keep things simple by keeping only the mirror on top and storing everything else in the drawers. A dressing table with storage is also a good idea because it keeps your valuables safe. You can put your valuables in different places and even choose drawers with locks to keep them as safe as possible. If you are a minimalist, choose a dressing table with a counter that is large and can accommodate all your daily-use items. The price of a dresser will be determined by its storage capability. So keep this in mind while buying a dressing table. Additional factors to be considered before purchasing a dressing table Size: Take appropriate measurements for the table and mirror. Before investing in a dressing table, take careful measurements so that the furniture fits into the space properly. Avoid choosing something too big or too small. You should consider the size of the room, its shape, and the space available before making your decision. Fittings and locks: Having a lock that isn’t functioning properly is the last thing you’ll ever want. If you are buying a lock system, you need to be extra attentive while purchasing it, especially if you want to keep your priceless possessions safe. Be sure that you know how to operate it. Material: You should never compromise on quality while looking for a dressing table. The wooden style with a mirror is the most popular since it can easily blend in with any bedroom decor. There are also a lot of different styles of dressing tables made out of metal on the market. Layout: This is a crucial consideration because you need to make sure that the dressing table’s design complements the mood of your room. Compare many dressing table styles to decide which one would look best gracing the wall of your bedroom. Many styles are available on the market that cater to varied interests and preferences. Price: No matter what you are buying, the price is a crucial consideration. The dressing table designs will depend on how much you are willing to spend. One important component that impacts the price is material. Always choose a material based on your price range, whether it is made of wood, metal, or anything else. [B-02] Final Thoughts Understandably, everyone wants a lovely dressing table in their bedroom. Nevertheless, you must look for all the elements listed above if you want a dressing table that will accommodate all your needs and preferences. Make sure you compare prices and styles on both the offline and online markets to get the best deal. Purchase a dressing table to help you dress up for any occasion and to show the world your best version. Use a dressing table to add elegance and practicality to your room. In case you have questions regarding your finances for such a purchase, consult a financial expert like Piramal Finance and get easy and customised credit card and personal loan solutions.

08-11-2023

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10 Best Tax-Saving ELSS Mutual Fund In 2023

Are you interested in multiplying your income while saving tax? If yes, the Equity Linked Savings Scheme, ELSS, is your perfect plan. Of course, one can opt for various mutual funds savings plans to get a good return. But, the ELSS program is your best bet. So why invest in ELSS? Simple answer? Tax saving. Before investing, let us look into the top ELSS funds you must know about. [B-01] Why invest in ELSS funds? Like any other mutual fund plan, the ELSS funds are also subject to market risk. Thus, it is also possible to incur losses while investing. So then, why go for investing in ELSS funds? Compared to other schemes, the ELSS can offer you higher returns on your investment. This is because these schemes invest in stocks, which yield a higher output in the long term. Also, unlike most investment plans, the ELSS has the least period for locking in. For example, the lock-in period for a public provident fund is fifteen years. The minimum lock-in period of ELSS is three years. Returns are much better in the longer run. When it comes to investors, most generally add a principal amount for three years. Then, after five or seven years, they add more money when they start seeing returns. This can also be a good option for you. 10 Best Tax-Saving ELSS Mutual Funds Here are the top ELSS funds that you must know about. Mirae asset tax saver fund direct growth: The Mirae asset tax saver fund direct growth is excellent. The main motto of this scheme is to generate long-term revenue for its investors. It operates with the help of a diversified portfolio of equity and related plans. It has a much lower expense ratio of 0.58% in 2023. DSP Tax Saver Fund: The DSP tax-saving ELSS funds will help you save money on taxes. The fund manager is free to invest in any possibility the market may present. This is because the fund does not need any particular investing strategy. As a result, the fund has a better churn ratio than most of its competitors. You must invest in these ELSS mutual funds. Union Tax Saver ELSS Fund: This fund is ideal for investors who are investing for at least three years and are seeking additional income tax benefits apart from higher returns. It has 95.77% investment in Indian equities, out of which 52.85% is in large-cap stocks, 11.65% is mid-cap companies, and 10.3% in small-cap stocks. Furthermore, it has 0.08% investment in debt, of which 0.08% is in government securities. Bank of India Tax Advantage Direct Growth: The Bank of India launched this ELSS mutual funds scheme. This scheme creates a diversified portfolio. It consists of various company shares with well-functioning business models. In domestic equities, the fund has an investment of 97.07%, out of which 48.85% is in large-cap companies, 21.15% is in mid-cap stocks, and 14.05% in small-cap stocks. Additionally, it has 0.07% investment in debt, of which 0.07% is in government securities. Canara Robeco equity tax saver direct growth plan: This plan wishes to achieve success through long-term valuation. It invests in equities. It sponsors primary, secondary, and overseas markets. This fund has 94.86% investment in domestic equities of which 60.95% is in large-cap stocks, 12.19% in mid cap stocks, and 6.15% in small-cap stocks. Kotak Tax Saver Fund: The fund invests according to the growth at a fair price philosophy. It has 96.58% investment in domestic equities. A major chunk of this investment is in large-cap stocks, which is about 60.94%. In mid-cap, the investment is 19.01%, and 11.07% in small-cap stocks. However, be ready to incur mild losses while investing in the funds. Bandhan Tax Advantage ELSS Fund: This fund is ideal for people who want to create wealth over long term. It invests predominantly in equity and equity related securities with a three year lock-in period and income tax benefit under Section 80C. The fund has 93.42% investment in domestic equities of which 55.06% is in large-cap stocks, 10.43% is in mid-cap companies, and 20.74% is in small-cap stocks. PGIM India ELSS Tax Saver Fund: The fund’s main objective is to generate long-term capital appreciation by predominantly investing in equity and equity related instruments. It actively manages a diversified portfolio of strong growth companies with sustainable business models. It has 93.18% investment in domestic equities. Out of this investment, 65.15% is in large-cap stocks, 11.38% is in mid-cap stocks, and 4.58% is in small-cap companies. Furthermore, it has 0.21% investment in debt and 0.21% is in government securities. Quant Tax Plan: This is the first recommendation if you want to invest in a top ELSS fund. The scheme helps to gain funds by investing in equity shares. Not only this, but the quant tax plan’s direct growth also gives out dividends to its investors. It has 97.43% investment in domestic equities. 57.61% of the investment is in large-cap stocks, 10.07% is in mid-cap stocks, and 8.8% in small-cap stocks. Nippon India Tax Saver ELSS Fund: This scheme uses an internal quant-based structure. It aims to support its growth at a fair price strategy. The portfolio seeks to exhibit a large cap bias. This happens while maintaining quality. Along with tactical exposures to mid-caps depend on a more significant price-value differential. As a result, it has a long-term tendency. The fund has 99.39% investment in domestic equities. Of this, 59.83% is in large-cap stocks, 10.84% is in mid-cap stocks, and 10.88% in small-cap stocks. [B-02] Conclusion An equity-linked savings scheme helps you multiply your hard-earned money. At the same time, it allows you to pocket a more significant amount by allowing you to save money on taxes. These schemes have an outstanding possibility to provide you with greater returns. So why are you still waiting? If you need help with finances, you can always reach out to experts such as Piramal Finance to help you find the best solutions to understand savings schemes, personal loans, or tax saving schemes better. Get expert help to save more money today!

08-11-2023