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bhushan4 Time: 06-20-2025 17:39 Color:

www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 15 No. 25 | June 23-29, 2025 | 24 pages | `8

THE ECONOMIC TIMES TIME TO

RETHINK YOUR
HOME LOAN
REPAYMENT
STRATEGY
P10

HONEY, I SHRUNK

THE HOUSE
PREMIUM PRICES,
SHRINKING SPACES,
AS AMENITIES
TAKE OVER P2

REGISTRATION OF PROPERTY IS NOT OWNERSHIP: SUPREME COURT P8

READ THE FINE PRINT BEFORE YOU BUY THAT STARTUP STAKE P9
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP2 User: shashi.bhushan4 Time: 06-20-2025 16:37 Color:

cover story
02 The Economic Times Wealth June 23-29, 2025

Honey,
I shrunk the
house!
rior, while 40% of the cost is for the common
areas and amenities. In the past, a loading
of 25-30% was the norm.
Homebuyers’ preferences for a certain
lifestyle is contributing to this trend.
Nowadays, homebuyers covet expansive

As builders pile on lounge areas with cafes, state-of-the-art

gymnasiums, rooftop decks and multi-pur-

lifestyle perks, pose utility areas. Experts point out that the
loading factor is directly proportional to the

homebuyers lose amenities in a project. The cost of additional

amenities provided by the developer is usu-

square feet to ally passed on to customers in the form of

loading charges. Invariably, loading will be
high loading, with higher for larger projects, where more space
is allotted to amenities and common areas.
little oversight to Prashant Thakur, Regional Director &
Head–Research & Advisory, ANAROCK
rein in developers. Group, observes, “Today, higher amenity
loading has become the norm across most
projects partly because homebuyers are no
longer satisfied with basic lifestyle ameni-
ties—they expect fitness centres, clubhous-
es, park-like gardens, and grand lobbies.”

Loading factor
Additionally, regulatory and safety require-
by Sanket Dhanorkar proportionate share of ancillary common ments, such as fire escapes, utility zones,

I
magine an Olympic-size swim-
areas and amenities added to the carpet
area (usable inner home area) and included has surged and larger elevators, further increase the
common areas, thereby adding to the load-
ming pool, a swanky multi- in the price charged to the buyer. It essen- MMR faces highest loading; ing, points out Rahul Purohit, Cofounder &
storey clubhouse, badminton tially refers to the difference between the Chief Business Officer, Square Yards.
and tennis courts, and land- super built-up and the carpet area of an
Bengaluru sees steepest rise But the flip side is that homebuyers end
scaped gardens. A few years apartment. To put it simply, the carpet area Loading in top 7 cities (%) up giving up on actual living spaces. Buyers
ago, you would have been picturing a refers to the floor space where you can actu- often end up paying a premium for homes
luxury retreat nestled somewhere in ally lay a carpet. The built-up area includes

“While high loading

the hills. But what was once a dreamy the carpet area plus the space taken up by
escape is now part of everyday life the walls and ducts. The super built-up area
for many. An oasis of calm, comfort
and luxury awaits Indian homeown-
includes the built-up area along with a pro-
portionate share of common spaces such as doesn’t automatically
ers within plush housing complexes
mushrooming amid the hustle-bustle
the staircases, lift shafts, entrance lobbies,
corridors, parking areas, and amenities.
City 2019 2022 Q1 2025 lower resale prices, it
of its big cities. However, this elevated
living comes with a sharp trade-off:
“In India, property prices are usually cal-
culated based on the super built-up area.
Delhi NCR* 31 37 41
may narrow the pool
MMR# 33 39 43
homebuyers are paying through the
nose for open spaces, while making do
While developers market homes based
on this figure, the real value lies in the Bengaluru 30 35 41
of interested buyers
with less living space. carpet area,” points out Akhil Rathi, Head–
Financial Advisory at 1 Finance.
Pune 32 36 40 due to perceived
Lavish living, A recent report by ANAROCK throws
light on the steep premium homebuyers are
Hyderabad 30 33 38 space inefficiency.”
cramped spaces paying for their lap of luxury. According Chennai 30 32 36
When you buy an apartment, you to the real estate consultancy, the average Kolkata 30 35 39
do not just pay for the liveable area loading factor in apartments across India’s
within its four walls. A portion of the top seven markets has climbed sharply
TOTAL 31 35 40
AKHIL RATHI
cost also goes toward shared spaces from 31% in 2019 to 40% in January-March HEAD–FINANCIAL
in the housing society—this is known 2025. This means that of the total space you ADVISORY, 1 FINANCE
Source: ANAROCK Research. *National Capital Region,
as the ‘loading factor’. It refers to the are paying for, only 60% is the home inte- #
Mumbai Metropolitan Region
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP3 User: shashi.bhushan4 Time: 06-20-2025 16:38 Color:

cover story
The Economic Times Wealth June 23-29, 2025 03

Same budget,
“Higher amenity could limit the resale pool or affect
different loading price appreciation over time,” con-
loading has become tends Purohit.
factors “Higher loading may affect the
the norm across resale value in some cases, particu-
larly when similar properties in the
most projects partly Knowing the loading factor helps assess value.
vicinity or even nearby locations offer
more usable space at the same price,”
because homebuyers Unit A Unit B Thakur remarks.
Older or more thoughtfully de-
are no longer Total price `80,00,000 `80,00,000
signed homes with minimal loading
Super built-up area 1,000 sq ft 1,000 sq ft
satisfied with basic
and better space distribution often
Carpet area 800 sq ft 700 sq ft attract greater interest during resale,

lifestyle amenities.” Loading factor 25% 42.80%

Rathi points out.
However, if a new project is devel-
Effective price per carpet sq ft `10,000 `11,428 oped by a well-known builder and
offers premium amenities, some buy-
Extra usable area 100 sq ft more —
ers may still find value in the overall
than Unit B
PRASHANT THAKUR lifestyle offering. “So, while high
REGIONAL DIRECTOR Outcome Better value and Higher cost loading doesn’t automatically lower
& HEAD–RESEARCH & more usable for less usable resale prices, it may narrow the pool
ADVISORY, ANAROCK
area space of interested buyers due to perceived
Even though both units cost the same, Unit A provides 100 space inefficiency,” Rathi adds.
sq ft extra usable space. Source: Sobha Developers.
Get clarity on the
with less actual living area because the
loading factor
pricing is based on the super built-up area,
not the space the residents actively use,
Housing prices have shot up sharply For homebuyers, clarity on the load-
Rathi explains. “While such facilities may Bengaluru has seen highest jump; Mumbai commands biggest premium. ing factor and actual living area is
enhance the community living experience, essential. Unfortunately, the practise
they also reduce the size of individual units, of ‘loading’ in real estate is shrouded
resulting in tighter bedrooms or smaller Price per sq ft 5 year change (%) in a web of secrecy. Developers con-
living spaces,” he says. Jayesh Rathod, Co- veniently do not mention the loading
Founder and Director of The Guardian Real Bengaluru Delhi NCR factor in their glossy sales brochures.
MMR Kolkata Pune
Estate Advisory, asserts, “Homebuyers are `10,349 `23,378 Regulations do not mandate devel-
increasingly paying a significant portion `26,975 `8,179 `10,920 opers to disclose this figure either.
Chennai Hyderabad
of their total home cost for shared spaces This leaves homebuyers in the dark
rather than actual liveable space.” `8,519 `8,622 about the value they are getting. To
According to the ANAROCK report, be sure, the Real Estate (Regulation
Mumbai Metropolitan Region continues and Development) Act, 2016, requires
to see the highest loading among the top developers to mention the total carpet
seven cities, with 43% in January-March area provided to homebuyers. But not
2025. Bengaluru has seen the highest all states enforce the law. “In most
percentile jump in average loading over the 79 21 47 43 42 61 45 cases, buyers across cities, except in
last seven years–from 30% in 2019 to 41% Maharashtra, are unaware of how
in January-March 2025. The ANAROCK Source: 1Finance much they pay towards the overall
report suggests this dovetails with the
increasingly higher saturation of modern How to calculate compared to Unit B’s 750 sq ft. This trade-off
usable space within their apartment,”
avers Thakur.
amenities that developers now include
to cater to the higher lifestyle ask in the
loading factor between amenities and functional space
begs careful consideration.
Besides, there is no law that cur-
rently limits the loading factor in
IT hub. Chennai, on the other hand, has Buyers must verify charges to avoid “This trade-off, paying more for less pri- residential housing. It is left to the
the least average loading rise in January- overpaying for less space. vate space, has become a growing concern discretion of the developers, who jus-
March 2025 with 36%, aligning with a city- If super built-up area is 1,000 sq ft among urban homebuyers, especially in tify higher loading for the amenities
specific demand profile where homebuyers and carpet area is 750 sq ft: cities where affordability is already a chal- provided. In the absence of any regu-
prefer to pay more for usable space within lenge,” says Rathi. Individual preferences lation, some developers charge load-
their homes rather than for common may differ, so buyers should evaluate offers ing as high as 50% or more for their
areas. In 2019, Chennai’s average loading accordingly. projects, experts point out.
percentage was 30%. “For buyers who value access to curated The onus is on buyers to remain
Correct method amenities and community experiences, the vigilant. Here’s what you can do:
Balancing act premium associated with such projects can l Ask your builder, the exact carpet
be well worth it, even if it means a slightly area you are paying for and com-
Carpet area x (1-Loading
For homebuyers, the loading factor of an smaller functional space,” avers Purohit. pare it with the super built-up area.
factor) = Super built-up area
apartment is critical when evaluating pro- Conversely, for those who prioritise maxi- “Request a clear breakdown of costs,
jects with extensive amenities and open 750 x (1-Loading factor) = 1000 mum carpet area and functional layouts what portion goes to actual usable
spaces. It is indicative of the functionality over lifestyle features, choosing a project space and what is for common amen-
of the house. It also reveals the real value 1-Loading factor = 1000/750 = 1.33 with minimal loading and fewer amenities ities,” says Rathod.
behind the price tag. Loading ratio tells you might be more suitable, he adds. l Compare carpet-to-super built-
how much space you get for the money you Loading factor = 0.33 or 33% Loading may also impact the resale value up ratios across similar projects,
spend. If the ratio is higher, it implies that of your house. It can bolster or dilute the thoroughly study floor plans, and,
you are paying a higher price per square Misleading method appeal of the tenement, depending on buyer if needed, consult an architect or
foot than the advertised cost. Homebuyers Super built-up area x (1-Loading preferences in the secondary market, ex- a real estate adviser. “Comparing
can effectively compare relative value prop- factor) = Carpet area perts say. loading percentages across projects
osition of different projects. For example, if “On one hand, projects with premium can highlight anomalies and offer
1000 x (1-Loading factor) = 750
two apartments—Unit A and Unit B—each amenities and lifestyle-driven features a strong basis for negotiation, espe-
have a super built-up area of 1,000 sq ft and often appeal to a certain segment of buyers cially if the loading appears exces-
1-Loading factor = 0.75 looking for comfort, convenience, and com-
are priced at`75 lakh, but their loading fac- sive,” Purohit comments.
tors are 25% and 33% respectively, it means munity living. However, if the functional
Loading factor = 0.25 or 25% [email protected]
Unit A offers more liveable space at 800 sq ft space feels significantly compromised, it
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP4 User: shashi.bhushan4 Time: 06-20-2025 15:52 Color:

stocks
04 The Economic Times Wealth June 23-29, 2025

as the companies will have to increase

Sector tailwinds to
distribution margins to push sales.
This will result in slower EPS growth.

Strong demand tailwinds

The industry is likely to see strong

support cables and

demand growth from government
and private capex in industries
such as power (Transmission and
Distribution), real estate, railways,

wires stocks
oil and gas, renewable energy and
emerging applications in data centers
and EVs. Furthermore, benefits from
China Plus One and robust export
opportunities (in the US/Europe mar-
kets) provide additional growth cata-
Healthy domestic and export lysts for the sector.
To explore export opportunities,
demand, capacity expansion, Indian companies are securing

resilient cash flows and product-level certifications crucial for

exports. A recent Motilal Oswal report
expectations of supply deficit will says that the global investments in re-
newable energy are creating sustained
benefit cables and wires stocks. demand for low and medium voltage
cables, where Indian players have
strong capabilities and cost advan-
tages. It estimates the cables and wires
industry to grow at a CAGR of 13%
over 2024-25 and 2029-30, whereas the
exports are expected to grow at a 14%
CAGR during the period.
To cater to the strong demand, com-
panies have planned aggressive capex.
While the capex-driven supply will be
absorbed by the increased demand,
the Motilal Oswal report also men-
tions that the increased investments
may create pressure on the industry’s
RoCE in the future. Here is how the
by Sameer Bhardwaj and improved relationships with electri- product approvals and performance valida- four listed players with decent analyst

T
cians, further supported the overall perfor- tion. The management commentaries re- coverage are placed.
he cable and wire companies mance of organised listed players. main optimistic about the sustained growth
reported a strong performance over the next few years. Polycab India
in the March 2025 quarter, aided Recent concerns Furthermore, strong demand is expected l I t reported a strong performance
by robust demand across catego- The announcement of the entry of Aditya to lead to a supply deficit. A PhillipCapital in the March 2025 quarter with
ries, improvements in channel Birla and the Adani group in the industry in report estimates an organised market supply revenue and net profit exceeding
inventories, and a pickup in infrastructure February-March this year created fears of deficit as the manufacturing capacity will Reuters-Refinitiv estimates by 5.6%
activities. The operating profit margins also increased competition and led to increased fall short of demand. It says that even the and 18.7%, respectively.
improved, supported by cost efficiencies, volatility in the share prices. unorganised market is unlikely to bridge the l The cables and wires segment re-
favourable product mix and operating lever- Experts believe that the near-term impact demand gap. However, the PhillipCapital re- ported a robust revenue growth of
age benefits. of new entrants is limited amid long gesta- port has raised concerns about the pressure 24% year-on-year, aided by a strong
Data compiled from the Reuters-Refinitiv tion periods and entry barriers involving on EBITDA margins (due to new entrants) demand from the real estate sector
database for six industry players showed
aggregate year-on-year revenue and PAT
growth of 22.5% and 24.9%, respectively—
significantly outpacing the Nifty 500 index,
A sharp increase in capex is expected in C&W industry is
which posted top-line and bottom-line 2025–26 to meet rising demand expected to grow
growth of 6% and 9%, respectively.
Cables & wires industry 142.9 at a CAGR of 13%
Historical industry perspective
Strong return ratios, market share gains,
annual capex (Y-o-Y%) between 2024-25
ability to generate healthy operating cash
flows and focus on deleveraging supported
and 2029-30
the performance of organised players in the
Market value (` crore)
last few years. While the unorganised play-
ers lost market share due to limited cash
81.9
flows and higher working capital require- 2019-20 57,000
ments, organised players strengthened their
52.3 2020-21 57,500
position through capacity expansion, says
2021-22 65,000
an Ambit Capital report of May 2025. Such 33.2
increased investments created the benefits 2022-23 70,000
of economies of scale. 16.2 2023-24 80,000
The scale benefits led to high cash flow
generation that supported deleveraging and -13 -17 -16.5 2024-25 90,000
reinforced organised players. These, coupled 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
with initiatives like focus on brand building, 2029-30 1,63,800
distribution expansion, campaigns creating SOURCE: Motilal Oswal report.
awareness around safety, loyalty programs SOURCE: Motilal Oswal report. 2025-26 and 2026-27 are estimates 2029-30 are estimates
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP5 User: shashi.bhushan4 Time: 06-20-2025 15:53 Color:

stocks
The Economic Times Wealth June 23-29, 2025 05

and a pick-up in government capex.

l The company gained market share and
Tenacious hold Stock price returns
reported stable margins in the wires and KEI Industries Havells India Name 6M 1Y 2Y
cables segment, aided by operating lever-
ANALYSTS’ ANALYSTS’
age benefits.
l While the exports fell by 24% year-on- Price (`)
RECOMMENDATIONS
Price (`)
RECOMMENDATIONS KEI Industries -19.2% -24.7% 26.9%
BUY HOLD SELL BUY HOLD SELL
year due to the roll-over of a large order to 3,613 14 4 0
1,529 25 9 4 Polycab India -17.7% -14.7% 30.0%
the June 2025 quarter, the management
expects steady growth in exports, aided
by a strong order book from Europe, the Polycab India RR Kabel Havells India -9.0% -16.9% 6.0%
Middle East and Australia.
l Other business segments—FMEG(Fast- ANALYSTS’
RECOMMENDATIONS
ANALYSTS’
RECOMMENDATIONS
RR Kabel -6.6% -24.3% NA
Moving Electrical Goods) and EPC Price (`) Price (`)
BUY HOLD SELL BUY HOLD SELL
(Engineering, Procurement and
Construction)—also registered a good rev-
6,042 20 4 3 1,330 7 1 0
Nifty 500 2.2% 3.5% 19.2%
Returns based on 17 June 2025 closing values.
enue growth of 33% and 20% respectively
Price as on 17 June 2025. Source: Reuters-Refinitiv. Returns greater than one year are CAGR returns.
on a year-on-year basis.
l A recent Centrum Broking report says addition and market share expansion. enue growth in 2025-26 and 20% thereaf- lT  he cables and wires segment revenue
that the growth prospects for the wires and lT  he company has planned a capex of ter, aided by improvement in domestic grew by 21% year-on-year, aided by
cables segment remain strong, led by ris- `12,000 crore, which will increase cable and export demand from sectors such as strong demand and channel restocking.
ing industrial, infra and real estate capex, capacity and support margin improve- renewables, transmission and distribu- On the other hand, Lloyd continues its
which will enhance the company’s market ment. Such capex is expected to be fund- tion and data centres. growth momentum with 39% year-on-
leadership. It lists a wide product portfolio ed by internal sources. l Furthermore, the margins are expected to year growth.
as one of the key positives of Polycab. l An Asian Markets Securities report says improve after the new greenfield Sanand l The company has commissioned its
that the company’s earnings momentum facility commences operations (expected greenfield facility at the Tumkur plant
RR Kabel remains strong, and the management’s in 2026-27). The facility will also support for power & flexible cables, and it has an-
l I t reported a robust performance in the long-term vision is intact, given its the growth of the extra high voltage cables nounced additional investments in the
March 2025 quarter with a 27% and 64% strong capex pipeline. However, the re- segment, which registered a muted perfor- plant for larger cables. Such investments
jump in revenue and PAT respectively on a port highlights increased competition as mance in the March 2025 quarter. are expected to manage capacity con-
year-on-year basis. The numbers exceeded a concern. l An Elara Capital report is positive on straints and will provide healthy growth
Reuters-Refinitiv estimates by 9.3% and KEI due to sectoral tailwinds, focus on opportunities.
43% respectively. KEI Industries exports and improved sales guidance. It l The other business segments, including
l The volume growth in the cables seg- l It reported a resilient performance in the highlights higher capacity utilisation, RACs and Lloyd (refrigerators), are also
ment was resilient at 13.6% year-on-year, March 2025 quarter with revenue and net continued margin improvement, strong doing well and are expected to contribute
aided by strong growth in both domestic profit surpassing Reuters-Refinitiv esti- cash flow generation and robust domes- to the growth in the future.
and export markets. On the other hand, mates by 7.6% and 12.4% respectively. tic demand as key growth catalysts. l A Motilal Oswal report lists R&D-led
the FMEG segment registered revenue l The cable segment reported healthy rev- innovation, omni-channel presence,
growth of 13.3% year-on-year. enue growth of 34% year-on-year, aided by Havells India manufacturing excellence and capacity
l The management has guided for a 25% a strong demand for low-tension and high- l Its revenue and net profit exceeded expansion as the key positives.
CAGR in the cables segment’s revenue tension cables and higher retail sales. Reuters-Refinitiv estimates by 5% and 11%
over 2024-25 and 2027-28, aided by capacity l The management has guided an 18% rev- respectively in the March 2025 quarter. [email protected]

Oil drops as Trump signals delay in Iran strike decision

Easing fears of immediate conflict pull Brent toward from the US over the weekend. Senior
American officials had been preparing
$77 amid a week of extreme market volatility. for the possibility of an attack, although
the situation was still evolving, according
Oil declined after President Donald to people familiar with the matter.
Trump signalled a decision on whether “Leavitt’s comment has taken some
to strike Iran will be made within two of the urgency out of the market,” said
weeks, easing fears about an imminent Robert Rennie, head of commodity and
attack from the US. carbon research at Westpac Banking
Brent tumbled toward $77 a barrel, Corp. “At least for the moment, we are set
trimming a third weekly gain, while West to remain very well supported in this su-
Texas Intermediate for August traded per volatile $70-$80 range.”
near $74. White House spokeswoman Israel has continued to attack Iran’s
Karoline Leavitt told reporters that the nuclear sites, but for now the country’s
decision would take some time due to crude-exporting infrastructure remains
the “substantial chance of negotia- unscathed. There are signs, however,
tions” with Iran, according to a dic- that the OPEC producer is racing to
tated message from Trump. She de- get its oil out into the world, as stor-
clined to elaborate on the timeline. age tanks at the critical Kharg Island
terminal brim with crude.
Instability in market The biggest concern for the oil
It’s been a turbulent week for the oil market centers on the Strait of
market, with futures swinging in a Hormuz, but so far there are no signs that
range of around $8, volatility spiking, Tehran is seeking to disrupt shipping
timespreads significantly widening, and through the narrow waterway at the en-
options at one stage more bullish than af- trance to the Persian Gulf. About a fifth of
ter Russia’s invasion of Ukraine. the world’s crude output passes through
Brent closed almost 3% higher on 19 the strait.
June on concerns over a potential strike — Bloomberg
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP6 User: shashi.bhushan4 Time: 06-20-2025 15:55 Color:

guest column
06 The Economic Times Wealth June 23-29, 2025

A practical guide on how

to use RBI’s e-rupee
Using the digital currency like NEFT or RTGS transfers
might attract unexpected tax, says Mayank Mohanka.

T Tax pitfalls
he launch of the e-rupee by the
Reserve Bank of India (RBI) in
2022 invited scepticism from many Using the e-rupee for the following restricted transactions may
quarters as mere optics. However, trigger the same tax provisions that apply to cash transactions.
the massive rise in its circulation
value in just three years has assuaged all ap-
MAYANK MOHANK A
FOUNDER, TA X A AR AM INDIA
prehensions. According to the RBI’s annual
AND PARTNER, report, as of March 2025, the value of e-rupee Section Restriction specified in
SM MOHANK A & A SSOCIATES in circulation has crossed the `1,000-crore Incom
e Tax Act for cash transa
ctions
mark. This is up from `234 crore as of March 40A(3) 100% disallowance of
expenditure made in cas
2024 and a mere `16 crore in March 2023. `10,000. h in excess of
What started as a pilot scheme, for a closed
Non-availability of tax
user group comprising merchant banks and 44AB audit relaxation of hig
turnover limit of `10 cro her threshold
participating customers in December 2022, re, if total payments and
business are in excess receipts of a
has now transformed into a full-scale, pan- of 5% of total payments
and receipts.
India implementation drive. Small businesses and
The e-rupee—India’s 44AD/ professionals are not
The e-rupee—India’s central bank digital increased threshold lim eligible for the
central bank digital 44ADA its of `3 crore and `75
currency (CBDC)—was launched both for tions 44AD and 44ADA lakh under Sec-
, respectively, if cash
currency (CBDC)—is wholesale transactions involving interbank 5% of their total turnov receipts exceed
er or gross receipts.
issued in the same transfers and retail transactions among the
80D Any mediclaim premiu
denominations as public. Its pilot use case in the wholesale seg- m paid in cash is not allo
wed as deduction.
coins and bank notes. ment was limited to the settlement of second- 80G Donations made in cas
h in excess of `2,000
ary market transactions in government secu- trusts or political party to charitable
Users may transact are not allowed as ded
rities. For the retail segment, it was limited to uction.
with it through a 269SS Prohibition on taking
four banks and a few volunteer customers. loans and deposits, for
of `20,000 in cash. a sum in excess
digital wallet offered By March 2025, the user base of e-rupee in
by participating banks the retail segment grew manifold to 17 major 269T Prohibition on repaying
loans and deposits, for
and stored on mobile banks and 60 lakh consumers. excess of `20,000 in cas a sum in
h.
phones or similar
devices. Unlike savings
Hard cash in digital form 269ST
Prohibition on receipt
of a sum of `2,00,000
or more, in cash,
in aggregate from a per
The RBI defines the CBDC as the sovereign son, in a day, in respec
bank account balance, tions relating to one eve t of transac-
legal tender issued by the regulator in digital nt or occasion.
the e-rupee does not
form. The e-rupee carries with it all the es- 271DA Levy of penalty equiva
earn any interest lent to the amount of
sential characteristics of physical currency: it excess of `2,00,000 in cash receipt in
a day.
income. is issued by the central bank and distributed
via intermediaries, i.e. banks. It is in the form TDS at 2% is applicable
on cash withdrawals exc
194N `20 lakh in a year by eeding
of a digital token and is not an account-based non-filers of income tax
past three years, and returns for the
transaction, thus different from the balance at 5% on withdrawals
`1 crore from a bank exceeding
in one’s current or savings bank accounts, account.
or UPI wallets. It is a fungible legal tender for
which holders need not have a bank account.
The e-rupee is issued in the same denomi-
nations as coins and banknotes. Users may of ‘capital assets’ under Section 2(14) and Act as an acceptable mode of payment (like
transact with it through a digital wallet of- virtual digital assets under Section 2(47A), ECS or UPI at present), there is a serious
fered by participating banks and stored on so there can be no ‘transfer’ of digital rupee concern that doing so would attract penal
mobile phones or similar devices, and a rea- to attract any capital gains tax liability. provisions, corresponding to these trans-
sonable degree of anonymity is provided in Similarly, in the GST Act, ‘currency’ has actions when done with cash. Undertaking
transactions involving the digital currency. been kept outside the purview of ‘taxable specific (see graphic) restricted transac-
Unlike savings bank account balance, the e- supply of goods or services’. tions with the e-rupee may actually be
rupee does not earn any interest income. However, the possibility of some unex- treated and considered as cash transac-
pected but serious tax implications can’t be tions, as per the Income Tax Act.
Not taxed like commodities ruled out. Certain provisions of the Income
A watershed moment in India’s digital cur- Tax Act restrict high-value cash transac- Need stakeholders on board
rency evolution, the e-rupee comes with its tions and impose penalties for exceeding The RBI’s well-intended move to make
fair share of intriguing tax considerations. the limits. The inherent characteristic the e-rupee functionally similar to physi-
To clarify, the e-rupee is a sovereign legal features of the e-rupee today make it akin cal currency must be clearly understood
currency and cannot be traded or sold for to hard cash. Using the e-rupee, thinking it and accepted by all stakeholders, includ-
consideration, as it serves solely as a mode of as the same as transferring money through ing tax authorities.
payment. Unlike shares, bonds, mutual funds, internet banking on the National Electronic Only with such clarity and conviction
or cryptocurrency, it is not a tradeable asset or Funds Transfer (NEFT) or Real-Time Gross can this digital avatar of sovereign cur-
investment. It won’t incur any direct income Settlement (RTGS) systems, may attract the rency achieve its intended impact.
tax or goods and services tax (GST) liability. same penalties. Hence, as long as using e-
As per the Income Tax Act, ‘currency’ is cat- rupee for such restricted transactions is not Please send your feedback to
egorically placed outside the scope and ambit categorically prescribed in the Income Tax [email protected]
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP8 User: shashi.bhushan4 Time: 06-20-2025 16:35 Color:

real estate
08 The Economic Times Wealth June 23-29, 2025

Registration of property

GETTY IMAGES
is not ownership, says SC
The ruling could spur greater due diligence by buyers and realtors,
and slash fraudulent transactions, but potentially increase costs.

by Riju Mehta

I
What was the Supreme 1982 by Bhavana Cooperative Housing
n April this year, a Supreme
Court ruling on the regis-
Q Court verdict? Society via an unregistered sale agree-
ment. It was validated in 2006 by the as-
tration of an immovable The Supreme Court ruled in the
case of Mahnoor Fatima Imran & others. sistant registrar but was not registered.
property rattled buyers and
versus State of Telangana & others, that The Society later sold this land to vari-
realtors alike. The verdict
sought to claim that simply reg- if a sale agreement for an immovable ous people, including Mahnoor Fatima
property was unregistered, any subse- Imran and others, who claimed posses-
Documents that
istering a property did not imply
ownership. This has far-reaching quent transaction that was registered or sion and approached the court.
The court ruled against Imran and oth-
boost proof of
consequences as it could reduce mere physical possession of the prop-
fraudulent property transactions erty would not result in a legal title. ers, claiming that possession or a trans-

ownership
and increase transparency, inten- The dispute related to some land in action based on an unregistered sale
sify due diligence by buyers and Telangana, which was purchased in deed could not prove legal ownership.
realtors, and also lead to higher
transaction costs and processing
TITLE DEED
time. Here we examine all aspects
This is a legal document clearly
of this ruling and its ramifications.
spelling out the title, or own-
Which documents can help What is the purpose
Q prove ownership? Q of registration?
ership, of a property. It’s the
primary and most reliable proof
“The documents leading up to the Registration ensures a legiti- of property ownership.
Why is registration transferer’s legal claim, which means the mate public record of the transac-
Q not considered transfers undertaken before registration,
will have to be considered,” says Rathi. For
tion of property and helps protect
the rights of both buyers and sell-
SALE DEED
This document is used to legally
sufficient proof
of ownership? instance, in transfer of property to legal ers. It also makes the process of transfer the title of a property
This is because you may regis- heirs, the documents allowing for succes- verification and certification of title from the seller to buyer in the
ter the property you buy, but sion, such as succession certificate, will, or of property simpler, reducing dis- presence of a registrar.
if the seller, from whom you letter of administration, can be combined putes and litigation.
purchased it, did not have a with registration as proof, he explains. “It attests that the ownership POSSESSION LETTER
“The sale deed and title deed are the transfer is legitimate, helps authori- This is provided by the devel-
clear legal title due to an ear-
basic legal documents needed to establish ties maintain up-to-date records, oper or seller to the buyer and
lier unregistered sale agree-
acts as evidence that the owner
ment or disputed transaction, ownership. Other documents can be the and is referred to when it comes
has taken possession of the
you will not be considered the encumbrance certificate, mutation certifi- to collecting tax on the property. It
property.
rightful owner. You will have to cate, property tax receipts, letter of pos- also ensures transparency and helps
boost your claim of ownership session, allotment letter, etc.,” says Puri. avoid fraudulent claims,” states Puri.
PROPERTY TAX RECEIPTS
through other evidence and “Sale deed, gift deed, certificate of sale “Registration provides safety This is another proof of owner-
documentation. granted to purchaser of any property sold and security to transactions even if ship as it shows the payment of
“The apex court has af- by public auction by a civil or revenue of- the document is lost or destroyed. municipal taxes by the owner of
firmed that registration is just ficer, can be used as proof of ownership, It also provides public exposure the property.
a step in the overall procedure but as per Section 17 of the Registration to documents, thereby preventing
of buying a property and by Act, 1908, these have to be compulsorily forgeries and frauds in regard to MUTATION CERTIFICATE
itself does not amount to a le- registered,” says Counsel Mansi Kaku, an transactions and execution of docu- A legal document that reflects
gal title or possession. Genuine dvocate practising at Bombay High Court. ments,” claims Kaku. the transfer of property in the
ownership necessitates that local land revenue or municipal
the buyer has all title docu- records.
ments and legally sanctified
possession,” says Anuj Puri, ENCUMBRANCE
What is the ruling’s impli- “Buyers need to conduct extreme CERTIFICATE
Chairman, ANAROCK Group.
Agrees Vivek Rathi, National Q cation for property buy- due diligence, ensuring not only that This document attests that there
Director, Research, Knight ers and realtors? the property is duly registered, but are no pending monetary dues
The ruling will offer a two-fold purpose: also titled, in possession, free from or legal liabilities, such as loans
Frank, India: “The Supreme
to provide deterrence to fraudulent encumbrances, and compliant with all or claims, ensuring the property
Court wants one to be cog-
transactions based on unregistered sale legal conditions,” elaborates Puri. has a clear title.
nisant of the chain of activities
deeds or disputed titles, and encourage Realtors, too, will have to undertake a
leading up to the registration. WILL/GIFT DEED
due diligence on the part of buyers and more complex process of documentation
Therefore, the registration These are inheritance instru-
real estate agents. It may increase the with buyers and increase legal scrutiny.
document alone may not be ments that specify the transfer
time taken to buy property, but is likely “This can potentially increase both
good enough to prove owner- of property to heirs or beneficia-
to cut down on litigation and lead to overall transaction costs and time taken
ship and may have to be com- ries, thereby showing ownership.
higher transparency. to complete the process,” says Puri.
bined with other evidences.”
[email protected]
NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP9 User: shashi.bhushan4 Time: 06-20-2025 16:08 Color:

guest column
The Economic Times Wealth June 23-29, 2025 09

Read the fine print before

you buy that startup stake
A recent court ruling could limit your exit options—unless your share
purchase agreement is airtight, cautions Abhishek Pai.

I
n the past few years, you’ve probably
watched with envy as friends and
colleagues struck it rich on the latest
hot initial public offer (IPO), turning
modest investments into crores over- S SH
night. It’s easy to wonder: what if I’d gotten in TUP AR
ABHISHEK PAI
R E
STA
PARTNER, on India’s next unicorn? That question has
IC UNIVER SAL LEG AL fuelled a booming market for pre-IPO shares,
where everyday investors—doctors, teachers,
small business owners—are staking serious
money on startups yet to hit the bourses. But
before you sign on the dotted line of a share
purchase agreement (SPA), there’s a little no-
ticed court ruling that could transform how,
and where, you seek remedy if things go awry.
A recent Karnataka High Court ruling in
In a recent ruling,
Bhaskar Naidu vs Aravind Yadav case has
the Karnataka High drawn a distinction between SPAs—con-
GETTYIMAGES

Court has drawn a tracts for buying/selling shares—and share-

distinction between holders’ agreements (SHAs) —contracts gov-
share purchase erning relationships among shareholders and
agreements (SPAs) the investee company, such as voting rights,
transferability of shares, exit rights, and Arbitration may help, but read the path from signature to settlement can be the
and shareholders'
dispute resolution—under the Commercial clause: A robust arbitration provision difference between a quick rebound on a sour
agreements (SHAs),
Courts Act, 2015 . The court ruled that only embedded in your SPA has the potential to deal and watching your capital slog through
noting that only a disputes pertaining to SHAs can be heard in bypass civil courts entirely. However, any ap- the backlogged civil court system.
dispute pertaining commercial courts because it qualifies as a plication or plea arising out of an arbitration So, as you line up those pre-IPO opportuni-
to the latter can be “commercial dispute” under the act. pertaining to a SPA shall have to be made be- ties, whether it’s the latest fintech darling or
heard in the speedier In other words, disputes arising from SPAs fore the regular benches of a high court (hav- a stealth mode biotech, you owe it to yourself
commercial courts don’t qualify as commercial disputes and ing original side jurisdiction) or any princi- to heed the fine print of your SPA. Make sure
must be filed in regular civil courts, not the pal civil court of original jurisdiction, and your contract doesn’t leave you stuck in the
because it qualifies as
speedier commercial benches. Thus, if you’ve not before the commercial division of such slow lane; demand clarity, carve out com-
a “commercial dispute”
been misled or defrauded in a share deal, you high court or before the commercial court mercial or arbitration corridors, and keep
under the Commercial won’t get the fast hearing or domain expertise exercising territorial jurisdiction over such those documents distinct. After all, a single
Courts Act. of a commercial bench and your case may lan- arbitration. A watertight arbitration clause overlooked provision can change the game,
guish for years in a civil court. which limits the rights of the parties to go for and your returns, forever.
But here’s the twist: it appears that the such applications or appeals may streamline
ruling overlooked Section 2(1)(c)(xviii) of the remedies of the disputing parties and also
the Commercial Courts Act, which explicitly expedite disposal of the dispute. Please send your feedback to
[email protected]
includes disputes arising from “agreements Draft with laser focus: Ambiguity is your
for the sale of goods or provision of services”. enemy. If an agreement is ambiguously word-
Under the Sale of Goods Act, 1930, “goods” ed, a court might not treat it as a commercial
include “stock and shares.” A combined read- dispute, delaying enforcement or recovery.
ing of these provisions suggests SPA disputes Keep share purchase and governance terms
should qualify as commercial disputes. Had in separate contracts. Build explicit language
the court applied this interpretation, it would into the SPA so as to recognise it as a “com-
have opened the commercial courts route to mercial agreement” and shares as “goods”.
expedite one’s SPA-related claims. Review your portfolio: If you hold stakes
How does it matter to investors? Because in startups via SPAs, revisit each agreement
time is money. Commercial courts were set up now. Engage a counsel to assess whether a
to deliver swift justice (even within a year) in retrospective amendment or side letter could
high value, complex business cases, while civ- bring your deal into the commercial courts’
il courts can take 2-5 years or more to reach a fold without jeopardising its enforceability.
decision. In a market as fast-paced as unlisted Watch the appeals: The aforementioned
startups, delays can mean watching share Karnataka High Court ruling may reach the
values evaporate, or worse, missing the win- Supreme Court, or prompt legislative clarifi-
dow to unwind or salvage a bad investment. cations. Stay informed, a favourable overturn
may unlock faster dispute resolution for cur-
What can investors do rent and past SPAs.
Be ready for delays: If your SPA claim ends
up in civil court, don’t expect outcome time- The bigger picture
lines in months. Factor in likely multi-year In the world of wealth creation, timing isn’t
waits while sizing up your investment risk. just important, it’s everything. The fastest
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP10 User: shashi.bhushan4 Time: 06-20-2025 16:39 Color:

banking
10 The Economic Times Wealth June 23-29, 2025

Time to rethink your home

loan repayment strategy
With tax breaks gone, est burden by `10-12 lakh, depending on your
lender’s terms. The earlier you prepay, the
end up paying far less in interest without
compromising your lifestyle.
year loan, the benefit of prepaying is
minimal in comparison to the early
prepaying your home more you save.
If lump sum prepayments aren’t feasible Utilise unattractive assets
years. “Continuing the loan may also
be better if the interest rate is low (e.g.,
loan could save you more for you, increasing EMI every year as your Prepayment doesn’t necessarily require 7.35%), or you have better investment
income grows is a practical alternative. big sacrifices. You can start by redirecting avenues yielding 10%+,” adds Ranu.
than you think. Raising your EMI by 5-10% annually has a windfalls like bonuses, maturing FDs, matu- However, considering the volatility
similar effect on your interest savings and rity proceeds from traditional life insurance in markets, prepaying a home loan
by Yasmin Hussain tenure. products or even proceeds from the sale of can be a more sensible use of surplus

E
For instance, increasing your EMI by 10% low-return assets. Setting aside a portion of funds. Market investments may offer
ven as the new tax regime simpli- every year on a 20-year loan can bring down your annual increment or incentive can also potentially higher returns, but they
fies income tax filing and offers your repayment period to under 10 years, build a healthy prepayment pool over time. also carry risk. On the other hand,
lower tax rates, it also comes with while reducing your total interest paid by The key is consistency. Setting a goal, such prepayment guarantees savings in the
the loss of several popular deduc- nearly 45%. Even a 5% annual step-up can as prepaying 5% of the loan amount every form of reduced interest payments,
tions. For home loan borrowers, help you repay the loan in 12-13 years instead year can help you stay disciplined and make something that’s fixed and risk-free.
this includes the `2 lakh deduction under of 20 (see table). This gradual strategy suits steady progress without straining your budg- Vipul Patel, Founder of mortgage-
Section 24(b) on interest paid and `1.5 lakh of younger borrowers who cannot commit to et.But remember that prepaying in the early world.in explains, “Prepaying your
principal paid, which earlier brought down a short tenure from the beginning but still years of the loan makes the most financial loan is like saving money at the same
the cost of borrowing. want to reduce their debt burden early. sense. This is when the interest component of rate as your loan interest. So, if your
“While earlier tax deductions justified The most effective repayment strategy is your EMI is at its peak, and reducing the prin- home loan rate is 8.5%, every rupee
holding on to loans, the new tax structure a combination of periodic lump sum prepay- cipal early translates to substantial interest you prepay helps you avoid paying
weakens that logic as the cost has gone up,” ments and annual EMI hikes. This dual ap- savings over the remainder of the tenure. 8.5% interest on it, which is as good
says Amar Ranu, Head- Investment Product proach not only accelerates debt reduction As your loan progresses, a larger share of as getting a risk-free return of 8.5%”.
& Insights, Anand Rathi Shares and Stock but also leads to significant interest savings. the EMI goes toward repaying the principal. That’s more than what most safe
brokers. This makes it a good time to reassess You cut your loan tenure nearly in half and So, if you’re already in the 15th year of a 20- investments offer right now. And a
your repayment strategy and consider pre- non-monetary benefit is peace of mind
paying to reduce the overall interest outgo. when you pay off your loan earlier than

Why prepaying works

How many EMIs can you decided. Remember that most banks

Home loans follow a front-loaded struc- save by prepaying a loan? now allow prepayments on floating-
rate loans but it’s still wise to double-
ture—in the early years, a larger portion of check for any hidden charges or
your EMI goes toward interest rather than
If you borrow a loan of ` 50 lakh for 20 years processing conditions. Also,
principal. When you prepay, the outstanding @8.5%, you will pay a total of 220 EMIs. maintain adequate liquidity.
principal comes down, and with it, the future You shouldn’t compromise your
interest liability. Even modest prepayments Annual increase Interest saved EMIs saved emergency fund or ongoing invest-
can lead to a sizeable reduction in the total in EMI (` lakh) (`) ments in the process. A healthy
interest paid and loan tenure. financial buffer should be in
Take a standard `50 lakh loan at 8.5% for
5% 16.1 80
place before you start chan-
20 years. Over this period, you’d pay over `48 10% 22.2 109 nelling excess cash into
lakh in interest alone, almost the same as the loan prepayment.
amount borrowed. A one-time prepayment 15% 25.6 125
of `5 lakh in the third year can shorten your
loan term by 3-4 years and reduce your inter-
20% 27.9 136 [email protected]
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP11 User: shashi.bhushan4 Time: 06-20-2025 16:09 Color:

financial planning
The Economic Times Wealth June 23-29, 2025 11

Split marriage, money amicably

If a couple is headed for divorce, both parties must agree on the principles that will guide their settle-
ment—being fair and equitable to each other, and providing for children’s future, says Uma Shashikant.

I
s it even possible to be prepared for the
worst? Doesn’t ‘worst’ always come
unexpected and unannounced? One of
the readers of this column discovered
that her husband was cheating on her.
She wanted out of the marriage. Having been
married for 20 years, their assets, income,
expenses and savings were all intertwined.
How does one make a clean cut?
As we began sorting what was held and how,
UMA SHASHIK ANT we found that the couple owned property joint-
CHAIRPER SON, ly, but held other investments both individual-
CENTRE FOR INVES TMENT
ly and together. The single holdings arose out
EDUC ATION AND LE ARNING
of convenience. When an investment process
had to be completed, if one wasn’t available
to sign the papers, the other did it using their
name as a single holder and nominations were
made as one wished at that time.

At the end of the Sorting muddled finances

negotiations, it’s The source of funds for the assets was not
important to arrive clear. The husband paid the EMIs for the home
GETTY IMAGES

loan, but the wife managed the household

at a single summary
expenses from her salary. She had also paid
outlining the transfers a good chunk of his educational loan. Both
to be made, immediate had access to each other’s bank accounts and
payments, and future spending was based on trust. They did not
commitments. While have quarrels about spending on themselves contributions to further reduce any risks to before marriage and neither inherited
smaller details may and the household. Credit card spending was this corpus. wealth or owned significant physical assets,
done with great discretion and they did not Second, their largest asset is the house they they may have to let it go.
seem significant
verify or question one another’s expenses. live in. They are unable to agree on how to split At the end of the negotiations, it’s impor-
initially, consolidating They did argue a lot over spending on their it. The husband wants to retain it, while the tant to arrive at a single summary outlin-
everything into respective families. The husband felt she was wife prefers to sell it and use the proceeds as a ing the transfers to be made, immediate
a single net figure enabling her parents and siblings by spending down payment for a house of her own. The hus- payments, and future commitments. While
simplifies the process, on them and supporting them. The wife felt band should acknowledge her implicit contri- smaller details may seem significant ini-
making it more he was doing the same by repaying his fam- bution to the asset—even if he paid the EMIs— tially, consolidating everything into a sin-
ily’s car loans and covering travel and higher and compensate her for her share. This could gle net figure simplifies the process, making
efficient and
education costs as he deemed fit. Despite this, help them avoid taxes and stamp duties associ- it more efficient and cost-effective.
cost-effective. they managed to save and build assets for ated with a sale. The matter is currently under Both parties must agree on the guiding
themselves, given their comfortable level of negotiation between their lawyers. principles—fairness, equity, and securing
earnings. Third, they have to list and divide the the children’s future. They must remain
Now, she was contemplating how life would remaining assets, except her streedhan, that committed to the process, no matter how
unfold if she moved out, with two young chil- is, the gold and jewellery legally belonging to complex it becomes.
dren whose custody she hoped to get. They her. This might be a time-consuming process
were consulting their respective lawyers and involving sale and transfer, and payment of Work past negative emotions
hoped to reach a consensus on dividing their taxes while doing so. Listing the assets and When assets are fungible and income and
wealth, intending to approach the court with making the allocation is often a prolonged expenses have been co-mingled in good
mutual agreement on the terms of divorce. negotiation. faith, the animosity of separation makes
This would keep discussions and negotiations Fourth, they need to stop arguing about it difficult to apply a clear, rule-based divi-
private. How should she navigate this phase? how they earned and spent in the past. The sion. Emotions like greed, regret, suspicion,
wife resents her husband’s career growth, as vengefulness, remorse, and caution often
Apportioning assets he never had to take a break or pause it for the influence the settlement process. In the
First, the couple should agree on how to pro- children. The husband, in turn, blames her for absence of amicability, negotiations tend to
vide for the children—their upbringing, edu- excessive spending on her family and lifestyle, drag on.
cation, activities and associated expenses. The which he believes led to lower savings and Neither expected their marriage to end
bigger and more important shared costs must fewer assets. These issues can’t be resolved this way. Nor can either lay claim to the
come first, and they must find a way to amica- now—they are in the past and were acted upon other’s future income without a reasonable
bly split that. These costs are hard to estimate in good faith. They have no choice but to let basis. Lawyers, as third parties, can help
upfront, especially when their critical and go of these quibbles and focus on what they communicate each side’s perspective, but
costlier portions are yet to be incurred. have now and what they see in the future as it’s crucial to ensure both remain commit-
A simpler approach would be to earmark goals they must continue to jointly provide for. ted to the core principles of the settlement.
financial assets for children and continue There was no prenuptial agreement. They are The process may be long and painful, but it
investing in them to benefit from long-term unable to bifurcate the financial assets they is possible if both parties stay reasonable.
growth. They have equity-oriented mutual accumulated before their marriage. After so
funds that are held jointly, with SIPs being many years, trying to trace and attribute these
made regularly for the children. These must assets is futile. Please send your feedback to
continue. They can choose to fast-track these Since both had been earning for a few years [email protected]
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP12 User: shashi.bhushan4 Time: 06-20-2025 16:11 Color:

financial planning
12 The Economic Times Wealth June 23-29, 2025

Don’t let inflation shrink

your retirement dreams
S
aurabh Saraf has done all the right things by starting
Saurabh Saraf, 63, is looking early, saving regularly and keeping his retirement
forward to retiring in the corpus untouched. However, the adequacy of this cor-
next two years. He takes pride pus will depend not on his past savings, but on future
inflation. Assuming that Saraf might live for another
in having built a sizeable 30 years, his retirement income would be similar to his first sal-
corpus through disciplined ary—good to begin with, but too small as time goes by.
investments in the PPF, EPF It takes both math and a set of assumptions about the future
to estimate the adequacy of the corpus. Many retirees make the
and equity mutual funds. These mistake of comparing returns on safe investments with infla-
choices have been made after tion to reassure themselves. For example, Saraf might assume
careful research over the past that a government savings scheme with 8% per annum return,
and inflation at 7% should be enough to meet his post-retirement
25 years. While he feels a sense needs. This math ignores the fact that the interest income is a
of accomplishment, a lingering simple rate, while inflation compounds every year.
doubt remains—what if the What this implies is that Saraf’s large corpus will shrink in
real terms as the years pass. Therefore, he needs a
corpus falls short of his needs? two-pronged approach. First, he should ensure that
he withdraws only a small part of his retirement
corpus each year. For instance, if he
Content on this page is courtesy Centre for Investment needs around 5% of the total corpus
Education and Learning (CIEL). Contributions by Girija annually, he is in a strong starting po-
Gadre, Arti Bhargava and Labdhi Mehta. sition. Second, he must allocate a por-
tion of his funds to growth assets, such

smart things
as equity mutual funds, to counter
inflation. With a 15-year time horizon,

to know by the time inflation pushes up his ex-

penses, his corpus would have grown.
His retirement corpus must generate
Signs of a debt trap both income and long-term growth

1
to remain sufficient throughout his
lifetime.
Borrowers take
high-interest loans
to cover outstand-
ing debts.
PAPER WORK

2
:::::::::
New loans are used to
pay off old ones, creat- Merging Provident Fund
ing a cycle of borrowing. Activate UAN accounts Employer
verification

3
It is important to
Salaried employees often end up with
first ensure that your The previous
Universal Account
multiple Provident Fund (PF) accounts due
employer may
Number (UAN) is to job changes over the course of their
need to verify
active. This unique careers. Since each new employer creates your request
Total debt keeps number remains the a separate PF account, it becomes essential digitally. After
increasing due to same across jobs and to consolidate them into a single account. that’s approved,
increasing interest is used to link all This ensures accurate interest accumulation, the funds and
amount and penalties. your PF accounts. simplifies fund management, service details are
and prevents complications transferred to your
during final withdrawal or active PF account.
pension calculation.

4
Most of the borrower’s
income goes toward debt

5
repayment, reducing

:: Points to note
financial freedom.

• Only PF accounts
linked to the same
Borrowers are left
KYC details Initiate transfer on EPFO portal UAN can be merged.
with few options to
You need to ensure that KYC Visit the EPFO member portal and log in using UAN and password.
•It is crucial to ensure
raise funds and are previous employer’s
often vulnerable to details (like Aadhaar, PAN and bank Under the ‘Online services’ tab, select ‘One member–One EPF
exit dates are
predatory lenders. account) are updated and verified account (transfer request)’. Enter previous PF account details and
updated to avoid
in your current PF account. This is submit the request. The request is authenticated using Aadhaar-
transfer delays.
crucial for seamless transfer. based OTP. Once submitted, the EPFO initiates the merging process.
NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP13 User: shashi.bhushan4 Time: 06-20-2025 16:12 Color:

guest column
The Economic Times Wealth June 23-29, 2025 13

GETTYIMAGES
FIRE isn’t
always
DEV ASHISH
FOUNDER, S TABLEINVES TOR

about choice
It’s time to accept the
FIRE can also mean ‘Forced Into
reality. Instead of Retiring Early’. That’s why

R
assuming that you will
be working till 60, plan
ecently, I onboarded a 43-year-old
software engineer (let’s call him
professionals need to prioritise
as if you might need to
stop at 50. This means
Nitesh Verma) from Bengaluru. retirement over other financial goals.
He’s been with a reputed IT firm
you would have to for over a decade now, is earning
redo your retirement well, and like many parents, has a big dream
calculations to figure for his 13-year-old son, like a postgraduate What if, instead of retiring at 60 as you hoped, tion loans, or top-notch Indian institutions.
degree from a top university abroad. you’re forced to stop working at 50? This isn’t But an underfunded retirement? There’s
out how much more/
Verma has been diligently saving for his just a random worry, it’s a real possibility. no fallback and no loan for that. If you are
extra you need to save. son’s graduation (in India) and also for his Call it “forced retirement,” where you’re forced to retire early, an inadequate retire-
‘big dream’ of post-graduation abroad, put- pushed out of the workforce, not by choice, ment corpus means tough choices—cutting
ting away nearly 75% of his monthly invest- but by circumstances: a layoff, a health issue, back on essentials or leaning on your kids
ments towards his son’s higher education or whatever. for support, which is the last thing any par-
goals. This is in addition to his ongoing home I recently came across a Reddit post about ent wants.
loan EMI. a 48-year-old techie, laid off after 25 years at a This isn’t about giving up on your child’s
As a result, he has still not been able to top US tech firm. A computer algorithm, not aspirations. It’s about being practical in a
take a serious look at his retirement savings. a manager, decided his fate. Stories like these world that’s anything but predictable. Your
Including his provident fund and other in- are becoming all too common. In India’s IT kids have time, energy, and options to chase
vestments (that can be earmarked for retire- sector, where younger talent is often cheaper their goals. You, on the other hand, are rac-
ment at present), he has barely saved enough and AI is supposedly taking over repetitive ing against time. Prioritising your retire-
to cover for a decade after he stops working. tasks, mid-career professionals face a grow- ment savings isn’t selfish—it’s ensuring
And while Verma at 43 still has almost 15- ing risk. And if you’re thinking you’ll just you’re not a burden on your family later.
17 years till his planned retirement at 58-60, find another job and continue to work till 60,
the reality is a bit different. According to the reality is much harsher; unless you are a So, what can you do?
him, with AI and automation looming large, top performer, the opportunities dwindle as It’s time to accept the reality. Instead of
his job isn’t as secure as it once seemed. you cross 40, especially in tech. assuming that you will be working till 60,
I know this scenario is something that hits plan as if you might need to stop at 50. This
home for many in their 40s, especially if they Your kids have time, you don’t means you would have to redo your retire-
are in a field like IT, where the ground be- Let’s now circle back to Verma. His plan to ment calculations (your investment ad-
neath the feet feels shakier every day. fund his son’s foreign degree is noble, but it’s viser can help you) to figure out how much
built on a shaky assumption: that his income more/extra you need to save. You will now,
FIRE = Forced Into Retiring Early will keep flowing until he’s 60. If AI (or some- of course, have to invest much more than
Early retirement enthusiasts already thing else) makes his role redundant, or if a someone of a similar age who plans to work
know that F.I.R.E. stands for ‘Financial random health scare forces him to scale back, till 60. But that is okay. You are preparing
Independence + Retiring Early’. But even if his family’s financial stability could crum- for a slightly worst-case scenario of forced
someone like Verma doesn’t want to ‘retire ble. His retirement corpus, as it stands, won’t retirement. Naturally, if this means that
early’ and wishes to work for as long as possi- last long, especially with inflation and rising the leftover money available for your son’s
ble, there is another, darker version of FIRE, medical costs. And unlike his son, who has foreign post-graduation goal isn’t enough
which needs to be acknowledged here ( I high- time and options to pivot, Verma won’t have (and the goal needs to take a backseat), then
lighted this to him when I onboarded him), the luxury of starting over. so be it. It is okay. Remember your child can
i.e., FIRE = Forced Into Retiring Early! This brings us to the hard truth: funding easily secure a loan for higher studies but
If you’re in your 40s, working in a tech- your child’s international education, while you will not get a loan for your retirement.
heavy industry, and pouring your heart (and a worthy goal, shouldn’t come at the cost of
money) into your child’s future, this story your own financial security. A foreign degree
might feel like your own. But here’s the tough is great, but it’s not the only path to success. Please send your feedback to
[email protected]
question: What if life doesn’t go as planned? Your child can explore scholarships, educa-
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP14 User: shashi.bhushan4 Time: 06-20-2025 16:13 Color:

career
14 The Economic Times Wealth June 23-29, 2025

SHOULD
YOU TAKE A
DROP YEAR?
CHECK ‘WHY’

GETTYIMAGES
1 Every year, thousands
of aspirants wonder whether
they should take a drop year
and retake the exams. Question
yourself: Are you taking a drop
year because you know you
can do better, or due to peer
pressure, societal prestige, or
sunk costs? An honest internal
reason fuels your motivation
across the long prep cycle.

REFLECT ON
2
Dealing with entrance exams
MISTAKES
Did you fail in your attempt be-
cause of less effort or motiva-
tion, poor conceptual under-
standing, time mismanagement,
or other distractions? A drop
For students and parents battling the high-stakes world of UPSC, CAT, NEET, and year makes sense only if you

other entrance tests, Devashish Chakravarty offers a survival guide. know why you failed and how
to fix it. Otherwise, it is another

E
12 months down the drain.
very year, over 10 lakh aspirants enjoy other experiences. Advanced burnout breakdowns. Remind your child that worth
sit for the UPSC Civil Services stages may include social withdrawal and is not tied to rank.
PLAN THE YEAR
exam. Over 2.5 lakh candidates try
their luck with the CAT, chasing
extreme swings between manic work and
total shutdown. The first step to recovery Alternate roads 3 Avoid your past strate-
gies. Start with streamlining
a few thousand seats at the IIMs. is becoming self-aware and acknowledging Every GATE candidate will not get into an
your material, scheduling mock
More than 2 lakh doctors compete in NEET- that burnout isn’t a weakness, but a warning. IIT, nor will every NEET aspirant become a
tests, and planning revision
PG to get into a handful of desirable MD/MS Structure breaks to reconnect with peers. surgeon. Many will join public sector jobs,
cycles. Add buffer months be-
programs. Add to that state PSCs, GATE, Consider therapy or speak with your mentor. build careers in public policy, consulting,
fore the exam dates. Whether
CLAT, CUET, RBI Grade B, IBPS/ SBI, SSC, As parents, resist the urge to push when your or academia after UPSC, GATE or RBI prep.
you want to move from CAT
international exams including GRE/ GMAT/ child needs recovery. Others will switch to management via CAT
92 to 98 percentile or crack
TOEFL and the massive funnel of CUET-UG, after NEET or engineering, or succeed in
JEE, NEET-UG, and it becomes clear. India What toppers do differently startups, freelancing, or content creation
UPSC Mains, your planning is
everything.
isn’t just a nation of exam-takers, but is in the Toppers in UPSC, CAT, and GATE rely on using the same self-discipline and focus. The
midst of an exam epidemic. You are compet- time-tested systems. They analyse every transferable skills developed during prepa-
BUDGET TIME,
ing not just with others, but with time, per-
sonal circumstances and limits. Here’s your
mock test, tagging errors and noting im-
provement areas. They prioritise deep
ration—grit, research ability and structured
thinking—are solid assets for any career.
4 MONEY AND
survival guide to this pressure cooker. revision over acquiring new material every Success in life is never linear and Plan A can EMOTION
week. They create repeatable daily schedules evolve into a solid Plan B. A drop year is not free. Can you
First attempt myth and create peer groups for mutual account- afford coaching, housing, or
Popular media glorifies that ‘first-attempt ability. They build small rituals like early Resilient systems, not routine living expenses? Are you emo-
topper’ with stories of those who cleared morning walks, art breaks, or journaling to Successful candidates may differ in tech- tionally prepared to go through
UPSC at 22 or got into AIIMS right after Class manage stress. One NEET-PG topper hand- nique, but all have built resilient systems. another high-pressure cycle?
12. However, behind the scenes, many suc- wrote old question papers every weekend to Think beyond total hours and consider sus- Discuss frankly with family and
cessful aspirants in exams like NEET-PG, build memory muscle. A UPSC AIR 12 capped tainability. Choose to sleep for a minimum of mentors to gauge their support,
CAT, or GATE, are second- or third-time can- study at seven focused hours a day because seven hours over all-night study marathons. both financially and psycho-
didates. They didn’t fail; they improved. This intensity matters more than duration. CAT Study in 90-minute focused periods, fol- logically.
cultural obsession with cracking it in ‘one toppers often peak by running three timed lowed by a 10-15-minute break. Walk, cycle or
clean shot’ creates pressure and breeds fear. mocks a week, reviewing each like a profes- stretch for at least 20 minutes each day to re-
A LIFE OUTSIDE
What’s the truth? Persistence matters more
than prestige. Equally successful is the can-
sional athlete analyses game footage. The
common secret? No panic. Only habits.
set your brain. Maintain a digital boundary
by either switching off devices or using apps
5 Can you create a parallel
journey—through freelancing,
didate who jumps from 94 to 99 percentile in like Forest or StayFocusd. Finally, build your
CAT in his second attempt, or one who shifts Parenting through pressure identity beyond your exam and recognise
part-time work, internships,
or other certifications? This
from a peripheral MD to a prestigious insti- For parents, the exam season becomes an that you are not just a ‘future IAS officer’ or
journey will hold up your
tution in NEET-PG after a drop year. Failure invisible personal test. Your desire to help ‘future doctor’. Tying your self-image to a
confidence, build your CV, and
is just another hurdle. often turns into constant monitoring, com- test result is dangerous and unnecessary.
generate future career alterna-
parisons with neighbours, worrying about
Prep burnout coaching fees or your return on investment. You’re not alone tives. Make your drop year an
investment, not a gamble.
Burnout is not a fancy word, but a lived-out This is counter-productive. Focus on effort, If you’re reading this and nodding in exhaus-
reality. Consider GATE aspirants working in not ranks and scores. Praise consistency tion, know this—you’re not weak. You’re part
jobs, NEET-PG doctor aspirants fresh out of and resilience, not perfection. Be concerned of a system that tests more than academic
intense internships, or UPSC hopefuls deep about your child’s well-being and his sched- skills. It tests patience, perspective, and
into their third year of preparation. You may ule. Offer a non-judgmental space where your mental strength. You’re not alone. Over 35
face chronic fatigue, anxiety, isolation, social child can safely vent without fear of conflict. lakh aspirants across UPSC, NEET, CAT THE WRITER IS A UPSC (NDA) AIR
1, A TWO-TIME CAT 100 PERCEN-
comparison and even depression. Watch out Finally, look for red flags, including change and other exams feel the same fear, the same
TILER AND A MENTOR TO COM-
for signs of irritability, emotional numbness, in sleep, mood swings, social withdrawal, or hope. What matters is how you prepare, not PETITIVE EXAM ASPIRANTS.
fear of falling behind, and an inability to excessive screen use, which could indicate just for the exam, but for life beyond it.
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP15 User: shashi.bhushan4 Time: 06-20-2025 16:44 Color:

The Economic Times Wealth

June 23-29, 2025

ET WEALTH TOP 50 STOCKS

Every week we put about 3,000 stocks through four key filters and rate them on a mix of factors. The end result
of this is the listing of the top 50 stocks based on the composite rating to help ease your f­ ortune hunt.
RANK PRICE ` GROWTH%* VA LUAT I O N R AT I O S R AT I N G

Current
Rank
Previous
Rank
Stock
Price
Revenue
Net
Profit
PE PB
PEG
(5-year)
Div
Yield (%)
No. of
funds
Value
Research 1 Fast growing stocks
Stock Rating

Can Fin Homes 1 1 777 10 14 12.1 2.0 0.8 1.6 32 ««««« Top 5 stocks with the highest
Aavas Financiers 2 2 1,813 17 17 25.0 3.3 1.3 — 21 ««««« revenue (1-year) growth (%)
HDFC Bank 3 3 1,935 19 3 21.0 2.9 1.0 1.1 304 ««««« AU Small 52.2
Finance Bank
Petronet LNG 4 4 291 -3 9 11.0 2.2 1.2 3.4 32 «««««
Cholamandalam 35.0
LIC Housing Finance 5 7 582 3 14 5.9 0.9 0.5 1.7 44 ««««« Investment

AU Small Finance Bank 6 6 790 52 23 27.9 3.4 0.8 0.1 49 ««««« Home First 34.5
Finance Company
Cholamandalam Investment 7 8 1,544 35 23 30.3 5.5 1.2 — 135 «««««
Muthoot Finance 34.2
REC 8 12 384 19 12 6.4 1.3 0.4 4.7 88 ««««
Epigral 32.2
ICICI Bank 9 10 1,411 17 14 19.7 3.3 1.0 0.8 303 «««««

The Federal Bank 10 11 204 19 2 12.0 1.5 0.7 0.6 103 «««««

Karur Vysya Bank 11 9 243 18 21 10.1 1.6 0.8 1.1 66 ««««« 2 Least expensive stocks
Bandhan Bank 12 13 178 16 23 10.4 1.2 0.8 0.8 22 ««««« Top 5 stocks with the lowest
DCB Bank 13 14 142 21 14 7.2 0.8 0.7 1.0 19 ««««« price-to-earnings ratio
City Union Bank 14 15 192 11 11 12.6 1.5 1.9 1.0 41 ««««« Ashoka Buildcon
3.3
National Aluminium Company 15 16 182 28 165 6.3 1.9 0.1 4.4 36 ««««
Power Finance
Corporation 5.6
Repco Home Finance 16 17 418 11 12 5.6 0.8 0.9 1.0 11 «««««
Repco Home
Indiamart Intermesh 17 18 2,442 16 65 26.6 6.8 0.9 2.0 29 ««««« Finance 5.6

Chambal Fertilisers 18 21 544 -7 34 13.2 2.5 1.3 1.8 13 ««««« LIC Housing
Finance 5.9
Epigral 19 22 1,715 32 79 20.7 3.9 1.1 0.3 14 «««««
National
Aluminium Co 6.3
KFin Technologies 20 19 1,198 30 34 61.8 14.6 1.8 0.6 41 «««««

Ashoka Buildcon 21 23 199 2 237 3.3 1.4 0.1 — 6 «««««

3 Best PEGs
KPIT Technologies 22 20 1,393 20 41 45.4 13.1 1.2 0.6 61 ««««

Indian Energy Exchange 23 28 179 19 21 37.2 14.0 2.1 1.7 31 ««««« Top 5 stocks with the lowest
Gulf Oil Lubricants India 24 24 1,204 8 17 16.2 4.0 1.4 4.0 15 «««««
price earnings-to-growth ratio
National Power
Hero MotoCorp 25 25 4,384 8 17 20.0 4.6 3.5 3.8 104 «««« Aluminium Co Finance Corp
Aadhar Housing Finance 26 27 436 20 12 20.7 3.0 1.0 — 31 «««««
Aditya Birla Sun Life AMC 27 30 735 25 19 22.9 5.7 2.0 3.3 20 ««««« 0.06 0.14 0.26 0.40 0.43
Just Dial 28 29 870 9 61 12.6 1.6 0.8 — 5 «««««

Muthoot Finance 29 26 2,637 34 23 19.8 3.6 1.4 1.0 69 ««««« Ashoka Natco REC
Buildcon Pharma
Sundaram Finance 30 35 4,741 17 31 28.0 4.0 2.1 0.7 23 «««««

Adani Ports and SEZ 31 32 1,338 16 37 26.1 4.6 1.1 0.5 52 «««««
4 Income generators
Coromandel International 32 37 2,304 9 26 32.8 6.1 2.2 0.7 68 «««««

Abbott India 33 31 31,030 10 18 46.5 15.5 2.5 1.5 59 ««««« Top 5 stocks with the highest
dividend yield (%)
Eicher Motors 34 33 5,494 14 18 31.8 7.1 1.6 1.3 86 «««««
Castrol India 6.3
Indegene 35 36 574 10 12 33.8 5.3 1.6 0.3 14 ««««« Gujarat Pipavav
5.2
Port
Castrol India 36 41 206 7 8 21.5 8.4 4.5 6.3 14 «««««
REC 4.7
Go Fashion (India) 37 34 855 11 13 49.4 6.6 1.3 — 28 «««« National
4.4
Aluminium Co
LG Balakrishnan & Bros 38 42 1,227 10 10 13.0 2.4 0.5 1.6 6 «««««
Power Finance
4.1
Alivus Life Sciences Ltd 39 40 1,001 5 3 25.4 4.4 5.0 0.5 13 ««««« Corporation

HCL Technologies 40 38 1,714 6 11 26.7 6.7 3.5 110

Most widely held
2.8 ««««

Home First Finance Company 41 39 1,290 35 23 34.8 3.6 1.1 0.3 39 ««««« 5
CMS Info Systems 42 44 479 7 3 21.3 3.5 1.1 0.7 20 ««««« Top 5 stocks held by the most
Natco Pharma 43 45 882 11 36 8.4 2.1 0.3 0.7 5 «««« number of mutual funds
HDFC Bank Cholamandalam
Gujarat Pipavav Port 44 51 157 0 16 19.0 3.2 5.5 5.2 10 ««««
Investment
Emami 45 48 563 6 12 30.4 9.1 1.5 1.8 58 ««««

Power Finance Corporation 46 50 390 17 16 5.6 1.1 0.4 4.1 112 ««««
304 303 135 117 112
Escorts Kubota 47 43 3,252 3 16 28.8 3.5 1.3 0.9 36 ««««
Cipla 48 46 1,484 7 28 22.7 3.8 0.8 1.1 117 «««« Power
ICICI Cipla Finance
APL Apollo Tubes 49 57 1,772 14 3 64.9 11.7 1.9 0.3 62 ««««« Bank Corp
CSB Bank 50 49 386 23 5 11.2 1.5 0.6 — 16 «««««
SEE NUMBER OF MUTUAL FUNDS HOLDING THE
*REVENUE AND EPS FIGURES BASED ON ONE-YEAR GROWTH. DATA AS ON 19 JUN 2025. PERCENTAGES & RATIOS ROUNDED TO ONE DECIMAL PLACE. SOURCE: VALUE RESEARCH STOCKS IN THE ADJACENT TABLE.
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP16 User: shashi.bhushan4 Time: 06-20-2025 16:15 Color:

smart stats
16 The Economic Times Wealth June 23-29, 2025

LAGGARDS & LEADERS

ETW FUNDS 100

Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five ­laggards (that may be a drag on your portfolio).

LAGGARDS LEADERS

BEST FUNDS TO BUILD YOUR PORTFOLIO Equity: Large cap 5-year returns
ET Wealth collaborates with Value Research to identify the top-performing 15.6 34.7
Nippon India ETF Nifty 50 Shariah BeES BHARAT 22 ETF
funds across categories. Equity funds and equity-oriented hybrid funds are
16.3 34.4
ranked on 3-year returns while debt-oriented hybrid and income funds are Axis Large Cap Fund - Regular Plan ICICI Prudential BHARAT 22 FOF
ranked on 1-year returns. 17.9 26.6
Value Net RETURNS (%) Expense PGIM India Large Cap Fund Nippon India Large Cap Fund
Research Assets Ratio
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year (%) 18.4 26.4
EQUITY: LARGE CAP Groww Large Cap Fund - Regular Plan SBI BSE Sensex Next 50 ETF
Nippon India Large Cap Fund ««««« 41,750 10.3 1.2 5.4 25.7 26.6 1.5 18.4 26.4
ICICI Prudential Large Cap Fund ««««« 69,763 9.4 2.7 6.7 22.9 23.8 1.4 25.7% Sundaram Large Cap Fund UTI BSE Sensex Next 50 ETF
DSP Nifty 50 Equal Weight Index Fund - Regular Plan ««««« 2,136 9.3 4.1 3.3 22.0 24.8 0.9 THE 3-YEAR
Invesco India Largecap Fund «««« 1,488 12.1 -0.6 5.5 22.0 21.4 2.1 RETURN
Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund «««« 396 9.3 4.0 3.2 21.7 — 1.0
OF NIPPON
INDIA Equity: Flexi cap 5-year returns
Sundaram Nifty 100 Equal Weight Fund «««« 106 9.6 0.2 -1.5 21.6 22.6 1.1 LARGE CAP
HDFC Large Cap Fund - Regular Plan ««««« 37,716 7.1 0.5 2.8 21.2 23.0 1.6 FUND IS 14.9 31.9
2,614 THE
Baroda BNP Paribas Large Cap Fund - Regular Plan «««« 8.5 -1.3 1.5 21.0 20.6 2.0 LIC MF Children’s Fund Quant Flexi Cap Fund
HIGHEST
526
JM Large Cap Fund «««« 8.4 -4.6 -4.3 20.7 18.4 2.4 IN ITS 15.2 30.0
Edelweiss Large Cap Fund - Regular Plan «««« 1,271 8.9 0.9 3.0 20.7 20.9 2.1 CATEGORY. Motilal Oswal Focused Fund HDFC Flexi Cap Fund - Regular Plan
Quant Focused Fund «««« 1,050 10.5 -1.2 -6.1 20.5 23.8 2.2
15.3 29.7
Canara Robeco Bluechip Equity Fund - Regular Plan «««« 16,027 8.7 1.1 6.9 20.3 20.5 1.7
Aditya Birla Sun Life Bal Bhavishya HDFC Focused 30 Fund - Regular Plan
EQUITY: LARGE & MIDCAP 15.6 29.6
Motilal Oswal Large and Midcap Fund - Regular Plan ««««« 10,840 19.3 -5.9 12.3 34.5 30.0 1.7 Axis Focused Fund ICICI Prudential Retirement Fund
Bandhan Large & Mid Cap Fund - Regular Plan ««««« 9,107 11.0 -1.1 6.4 29.7 28.5 1.7
16.2 28.4
UTI Large & Mid Cap Fund - Regular Plan ««««« 4,544 10.9 -0.7 6.9 27.1 28.1 1.9
Aditya Birla Sun Life Retirement Fund ICICI Prudential India Equity FOF
ICICI Prudential Large & Mid Cap Fund ««««« 21,657 10.5 5.1 8.1 26.7 29.2 1.7
HDFC Large and Mid Cap Fund - Regular Plan «««« 25,412 12.4 0.3 3.0 26.4 28.9 1.7
SBI Large & Midcap Fund «««« 31,296 9.0 0.7 5.3 22.8 25.6 1.6
Equity: Mid cap 3-year returns
EQUITY: FLEXI CAP
Invesco India Focused Fund - Regular Plan «««« 3,981 11.3 -4.4 7.8 28.9 — 1.9
18.6 36.0
JM Flexicap Fund «««« 5,917 7.8 -8.5 -4.5 28.8 27.2 1.8 28.9% UTI Nifty Midcap 150 Quality Motilal Oswal Midcap Fund
ICICI Prudential Retirement Fund - Pure Equity Plan «««« 1,214 15.9 3.1 6.5 28.1 29.6 2.1 THE 3-YEAR 19.2 32.7
HDFC Flexi Cap Fund - Regular Plan ««««« 75,784 9.2 3.3 10.1 28.0 30.0 1.4 RETURN OF DSP Nifty Midcap 150 Quality HDFC Mid-Cap Opportunities Fund
INVESCO
HDFC Focused 30 Fund - Regular Plan ««««« 19,578 8.7 3.7 10.0 27.6 29.7 1.7
INDIA
19.6 32.6
ICICI Prudential Focused Equity Fund «««« 11,667 12.2 4.1 9.9 27.4 26.4 1.7 FOCUSED PGIM India Midcap Fund Invesco India Mid Cap Fund
Bank of India Flexi Cap Fund - Regular Plan «««« 2,153 11.1 -8.1 -3.6 26.7 — 2.0 FUND IS THE 23.2 32.2
HIGHEST
HSBC Flexi Cap Fund «««« 4,940 14.0 -3.7 4.2 25.2 23.5 1.9 SBI Magnum Midcap Fund Kotak Nifty Midcap 50 ETF
IN ITS
Parag Parikh Flexi Cap Fund - Regular Plan ««««« 1,03,868 7.8 2.9 11.6 25.0 26.0 1.3 CATEGORY. 23.7 32.0
Mahindra Manulife Focused Fund - Regular Plan «««« 2,112 8.4 0.9 3.1 25.0 — 2.0
UTI Mid Cap Fund - Regular Plan Edelweiss Mid Cap Fund
Franklin India Flexi Cap Fund - Regular Plan «««« 18,679 10.4 -0.7 6.6 24.9 26.7 1.7
HDFC Retirement Savings Fund Equity Plan ««««« 6,474 9.7 0.2 3.8 24.1 27.5 1.8
Edelweiss Flexi Cap Fund - Regular Plan «««« 2,642 10.1 -3.5 2.5 23.9 24.6 1.9
ICICI Prudential Flexicap Fund «««« 17,484 11.0 -1.4 3.8 23.2 — 1.7 Equity: Small cap 3-year returns
360 ONE Focused Equity Fund - Regular Plan «««« 7,400 7.3 -1.3 -0.4 22.3 23.7 1.8
Franklin India Focused Equity Fund - Regular Plan «««« 12,147 9.0 -1.0 2.2 22.2 24.7 1.8
19.0 35.9
PGIM India Small Cap Fund Bandhan Small Cap Fund
EQUITY: MID CAP
21.7 33.1
Motilal Oswal Midcap Fund - Regular Plan ««««« 30,401 11.5 -11.8 8.4 36.0 36.5 1.6
SBI Small Cap Fund ITI Small Cap Fund - Regular Plan
HDFC Mid-Cap Opportunities Fund - Regular Plan ««««« 79,718 14.3 -0.8 6.0 32.7 32.8 1.4 36.0%
Edelweiss Mid Cap Fund - Regular Plan «««« 10,028 16.1 -2.5 8.7 32.0 33.4 1.7 THE 3-YEAR
22.1 32.3
Nippon India Growth Fund ««««« 36,836 15.1 -1.8 5.3 31.1 33.0 1.6 RETURN OF Kotak Small Cap Fund Aditya Birla Sun Life Nifty Smallcap
MOTILAL 22.2 31.9
Kotak Emerging Equity Fund - Regular Plan «««« 53,464 16.0 -2.8 4.5 27.4 30.8 1.4 OSWAL
SBI Magnum Midcap Fund «««« 22,406 9.3 -2.7 -0.2 23.2 29.7 1.7 MIDCAP Canara Robeco Small Cap Fund Invesco India Smallcap Fund
FUND IS THE 23.0
EQUITY: SMALL CAP HIGHEST
31.9
Quant Small Cap Fund ««««« 28,205 12.6 -5.3 -5.7 31.2 44.7 1.6 IN ITS Union Small Cap Fund Axis Nifty Smallcap 50 Index Fund
CATEGORY.
Nippon India Small Cap Fund ««««« 63,007 15.2 -6.6 -1.1 30.7 38.1 1.4
Tata Small Cap Fund - Regular Plan «««« 10,529 12.8 -8.1 3.6 28.0 33.8 1.7 Hybrid: Aggressive 5-year returns
EQUITY: VALUE ORIENTED
HSBC Value Fund «««« 13,325 15.1 -1.3 2.2 30.1 29.4 1.7 14.1 27.5
ICICI Prudential Value Fund ««««« 52,598 8.8 4.4 10.7 26.2 28.6 1.5 30.1% Aditya Birla Sun Life Retirement BOI Mid & Small Cap Equity & Debt
SBI Contra Fund ««««« 45,496 8.5 -1.2 1.7 26.2 33.7 1.5 THE 3-YEAR 14.4 27.2
RETURN OF Shriram Aggressive Hybrid Fund JM Aggressive Hybrid Fund
EQUITY: ELSS HSBC VALUE
Motilal Oswal ELSS Tax Saver Fund - Regular Plan «««« 4,360 18.0 -8.7 7.1 32.5 27.5 1.8 FUND 14.8 26.1
SBI Long Term Equity Fund - Regular Plan ««««« 29,667 8.6 -0.2 3.1 30.0 28.4 1.6 IS THE Axis Children’s - Regular Plan ICICI Prudential Equity & Debt Fund
HIGHEST
HDFC ELSS Tax Saver Fund - Regular Plan ««««« 16,454 10.2 3.3 8.0 27.1 27.4 1.7
IN ITS
15.1 26.0
JM ELSS Tax Saver Fund «««« 199 9.1 -4.5 -0.3 25.3 25.7 2.4 ­C ATEGORY. Axis Retirement Fund Quant Absolute Fund
DSP ELSS Tax Saver Fund - Regular Plan «««« 16,974 9.2 0.6 6.7 25.1 25.9 1.6
15.3 22.1
Franklin India ELSS Tax Saver Fund - Regular Plan «««« 6,719 10.1 -1.5 6.2 25.1 26.3 1.8
Parag Parikh ELSS Tax Saver Fund - Regular Plan ««««« 5,294 9.0 3.3 12.5 23.1 26.0 1.7
Axis Aggressive Hybrid Fund UTI Aggressive Hybrid Fund
Quant ELSS Tax Saver Fund «««« 11,329 11.0 -0.8 -10.3 21.6 31.8 1.6
ANNUALISED RETURNS IN % AS ON 18 JUN 2025
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP17 User: shashi.bhushan4 Time: 06-20-2025 16:17 Color:

smart stats
The Economic Times Wealth June 23-29, 2025 17

ETW FUNDS 100 Value

Research
Fund Rating
Net
Assets
(` Cr) 3-Month 6-Month
RETURNS (%)

1-Year 3-Year 5-Year

Expense
Ratio
(%)
1 Top 5 SIPs
HYBRID: EQUITY SAVINGS Top 5 equity schemes based
HSBC Equity Savings Fund «««« 655 5.2 -5.3 3.0 13.5 14.5 1.5 on 10-year SIP returns
SBI Equity Savings Fund - Regular Plan «««« 5,431 6.6 1.7 6.9 13.1 13.2 1.4 13.5% Quant Small Cap Fund
UTI Equity Savings Fund - Regular Plan ««««« 687 4.1 3.3 6.6 12.7 12.8 1.6 THE 3-YEAR
24.9
Kotak Equity Savings Fund - Regular Plan «««« 8,254 5.3 1.3 5.2 12.7 12.2 1.8 RETURN OF
Edelweiss Equity Savings Fund - Regular Plan «««« 639 4.1 3.4 8.1 12.1 11.3 1.6
HSBC Nippon India Small Cap Fund
EQUITY
ICICI Prudential Equity Savings Fund ««««« 13,555 3.6 4.0 8.5 9.4 10.4 1.0 SAVINGS 23.6
FUND IS Motilal Oswal Midcap Fund
HYBRID: AGGRESSIVE (EQUITY-ORIENTED) THE
JM Aggressive Hybrid Fund ««««« 822 7.8 -4.5 -1.7 25.6 27.2 2.2 HIGHEST 22.2
IN ITS Plan
SBI Magnum Children's Benefit Fund - Investment Plan ««««« 3,589 8.3 -5.7 9.7 24.7 — 1.9
CATEGORY. Edelweiss Mid Cap Fund - Regular
Bank of India Mid & Small Cap Equity & Debt Fund «««« 1,198 13.0 -4.6 2.5 24.1 27.5 2.2
21.5
ICICI Prudential Retirement Fund «««« 831 11.9 1.5 3.9 23.7 22.0 2.2
Quant ELSS Tax Saver Fund
ICICI Prudential Equity & Debt Fund ««««« 43,159 8.0 5.4 9.0 22.9 26.1 1.6
ICICI Prudential Child Care Fund - Gift Plan «««« 1,343 11.7 2.8 4.6 22.4 20.9 2.2
21.4
Edelweiss Aggressive Hybrid Fund - Regular Plan «««« 2,749 8.3 2.0 7.7 21.3 21.5 1.9 SIP: SYST EMAT IC % ANNU ALISE D RETU RNS
AS ON 18 JUN 2025
UTI Aggressive Hybrid Fund - Regular Plan ««««« 6,254 7.7 0.3 7.3 20.8 22.1 1.9 INVE STME NT PLAN
HDFC Children's Fund - Regular Plan ««««« 10,177 8.7 -1.1 4.5 19.5 21.1 1.7
HDFC Retirement Savings Fund - Hybrid Equity Plan «««« 1,657 8.3 1.0 4.6 18.9 20.1 2.0
Kotak Equity Hybrid Fund - Regular Plan

HYBRID: CONSERVATIVE (DEBT-ORIENTED)

«««« 7,413 10.2 -1.2 5.4 18.9 21.5 1.8
2 Top 5 SWPs
SBI Magnum Children's Benefit Fund - Savings Plan ««««« 127 4.2 0.7 10.1 13.8 14.4 1.2 Top 5 conservative hybrid schemes
Parag Parikh Conservative Hybrid Fund - Regular Plan ««««« 2,665 4.2 4.9 9.3 12.7 — 0.6 10.1% based on 3-year SWP returns
ICICI Prudential Regular Savings Fund «««« 3,188 4.6 4.0 9.0 11.4 10.7 1.7 THE 1-YEAR SBI Magnum Children’s Benefit Fund
HDFC Hybrid Debt Fund - Regular Plan «««« 3,406 4.0 3.1 6.9 12.3 12.5 1.7 RETURN
OF SBI 13.5
SBI Conservative Hybrid Fund ««««« 9,643 4.6 3.1 6.8 11.4 12.0 1.5
MAGNUM Parag Parikh Conservative Hybrid
Kotak Debt Hybrid Fund - Regular Plan «««« 3,129 4.2 2.1 6.5 12.2 11.9 1.7 CHILDREN’S Fund
BENEFIT 12.1
HYBRID: DYNAMIC ASSET ALLOCATION FUND IS THE
SBI Retirement Benefit Fund - Cons
ICICI Prudential Balanced Advantage Fund «««« 63,787 7.4 5.0 9.0 15.2 16.1 1.5 HIGHEST ervative
IN ITS 12.0
Baroda BNP Paribas Balanced Advantage Fund «««« 4,304 9.7 1.6 7.0 18.3 17.1 1.9
­C ATEGORY.
HDFC Balanced Advantage Fund - Regular Plan ««««« 1,00,299 7.8 2.0 5.0 23.5 25.2 1.4 HDFC Hybrid Debt Fund - Regular
Plan
Tata Balanced Advantage Fund - Regular Plan «««« 10,227 5.5 1.2 3.6 13.7 14.0 1.7 11.8

DEBT: FLOATER Kotak Debt Hybrid Fund - Regular

Plan
Aditya Birla Sun Life Floating Rate Fund - Regular Plan ««««« 13,658 2.8 4.5 8.6 7.7 6.4 0.4 11.6

DEBT: BANKING AND PSU SWP: SYST EMAT IC % ANNU ALISE D RETU RNS
WITH DRAWAL PLAN
Aditya Birla Sun Life Banking & PSU Debt Fund «««« 8,991 3.5 5.0 9.3 7.6 6.4 0.7 AS ON 18 JUN 2025
ICICI Prudential Banking & PSU Debt Fund ««««« 10,485 3.2 4.8 8.9 7.9 6.6 0.7 9.3%
Bandhan Banking & PSU Debt Fund - Regular Plan «««« 13,580 3.1 4.8 8.9 7.3 6.1 0.6 THE 1-YEAR

3 ELSS : Cash Holdings

Franklin India Banking & PSU Debt Fund - Regular Plan «««« 550 3.1 4.7 8.9 7.5 6.0 0.5 RETURN
OF ABSL
ITI Banking and PSU Debt Fund - Regular Plan ««««« 36 2.9 4.6 8.4 7.1 — 0.7
BANKING
& PSU
DEBT: SHORT TERM
DEBT FUND
Axis Short Duration Fund - Regular Plan «««« 9,494 3.5 5.2 9.6 7.7 6.3 0.9 IS THE 17.7
HDFC Short Term Debt Fund ««««« 15,486 3.4 5.0 9.4 8.0 6.7 0.7 HIGHEST
IN ITS
SBI Short Term Debt Fund «««« 14,733 3.4 5.1 9.3 7.5 6.0 0.9 12.4 12.2
­C ATEGORY.
Sundaram Short Duration Fund «««« 214 3.2 4.8 9.2 7.5 8.0 0.9
8.7 8.1
Aditya Birla Sun Life Short Term Fund - Regular Plan «««« 9,193 3.3 4.9 9.2 7.8 6.9 1.0
ICICI Prudential Short Term Fund ««««« 21,284 3.2 4.9 9.1 8.2 6.8 1.0
UTI Short Duration Fund - Regular Plan «««« 2,822 3.3 4.9 9.1 7.6 7.3 0.8

DEBT: CORPORATE BOND Groww Taurus HDFC SBI Long

Parag
ELSS Tax ELSS Tax ELSS Tax Term
Nippon India Corporate Bond Fund ««««« 8,771 3.8 5.3 10.0 8.2 7.0 0.7 Parikh
Saver Saver Saver Equity
Axis Corporate Bond Fund - Regular Plan «««« 8,119 3.8 5.4 9.9 7.9 6.7 0.9 ELSS Tax
Fund Fund Fund Fund
Kotak Corporate Bond Fund - Standard Plan «««« 16,661 3.6 5.2 9.7 7.9 6.5 0.7
Saver
Expense as on 31 May 2025 Fund % OF ASSE TS AS ON 31 MAY 2025
HDFC Corporate Bond Fund - Regular Plan «««« 34,775 3.5 5.0 9.6 8.3 6.7 0.6
Returns as on 18 June 2025
Aditya Birla Sun Life Corporate Bond Fund «««« 28,436 3.3 5.0 9.6 8.2 6.8 0.5
Assets as on 31 May 2025
ICICI Prudential Corporate Bond Fund ««««« 31,264 3.2 5.0 9.2 8.2 6.8 0.6 Rating as on 31 May 2025
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Percentages rounded to one decimal place. 4 Debt: Corporate Bond
Did not find your fund here? Log on to www.wealth.economictimes.com for an exhaustive list.
0.55 0.55 0.57 0.58

FUND
Categories 0.51
Methodology Debt funds with less than
18-months performance Equity: Large-cap: Funds investing at Hybrid: Conservative: Funds investing

RAISER
The Top 100 includes only least 80% in large cap stocks. 10-25% in equity, and the rest in debt.
history and equity and
those funds that have a Equity: Large & MidCap: Funds investing Hybrid: Equity Savings: Funds investing
hybrid funds with less than
5- or 4-star rating from at least 35% each in large and mid caps. at least 65% in equity and equity related
three-years performance

54%
Value Research. The rating instruments, and at least 10% in debt.
track record are not rated. Equity: Flexi Cap: Funds investing at
of a fund vis-à-vis other least 65% in equity with no particular cap Hybrid: Dynamic Asset Allocation: Funds
This ensures that all the
funds in its category is on large, mid or small. which dynamically manage the asset
funds have existed long
determined by subtracting allocation between equity and debt.
enough to be tracked for Equity: Mid Cap: Funds investing at least
a fund’s risk score from its 65% in mid caps. Debt: Short Duration: Funds with Ma- of assets from T30 locations Aditya DSP Cor- Sunda- UTI Cor- Baroda
consistency of performance.
return score. The resulting caulay duration between 1 and 3 years at are in equity-oriented Birla porate ram Cor- porate BNP Pari-
Given the focus on Equity: Small Cap: Funds investing at
number is assigned stars least 65% in small caps.
the portfolio level.
schemes in May 2025. Sun Life Bond porate Bond bas Corpo-
long-term investing, we
according to the following Debt: Corporate Bond: Funds investing Corporate Fund Bond Fund rate Bond
have considered only the Equity: Value Oriented: Funds following Comparatively, 86% of the
distribution: at least 72% in AA+ and above-rated Bond Fund Fund
(Not cov- ‘growth’ plan of funds as value/contrarian investment strategy assets from B30 locations
and grouped under ‘Value’ or ‘Contra’
corporate bonds. Fund
Top 10% ered in ETW it reinvests interim gains
Funds 100 unlike ‘IDCW’ plan which categories as per SEBI. Debt: Banking and PSU: Funds investing are in equity schemes.
% AS ON 31 MAY 2025
Next 22.5% listing) at least 72% in the debt instruments of
offers periodic payouts to ELSS: Equity: With a lock-in of three years % EXPENSE RATIO IS CHARGED ANNUALLY.
Middle 35% banks, PSUs, public financial institutions Source: AMFI. T30 refers
investors, thereby reducing and tax benefit under Section 80C.
and municipal bonds. to the top 30 geographic METHODOLOGY OF TOP 100 FUNDS ON
Next 22.5% NAV. The fund categories Hybrid: Aggressive: Funds investing 65-
Debt: Floater: Funds investing at least locations in India. B30 refers WWW.WEALTH.ECONOMICTIMES.COM
Bottom 10% are: 80% in equity, and the rest in debt.
58.5% in floating-rate instruments. to locations beyond the top 30.
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP18 User: shashi.bhushan4 Time: 06-20-2025 16:18 Color:

loans and deposits

18 The Economic Times Wealth June 23-29, 2025

LOANS & DEPOSITS

ET WEALTH collaborates with ETIG to provide a comprehensive ready ­reckoner of loans and fixed-income
instruments. Don’t miss the information on investments for senior citizens and a simplified EMI calculator.

Top 5 bank FDs

TENURE: 1 YEAR
Interest rate (%) What `10,000 HOME LOAN RATES REPO
RATE
5.5%
compounded qtrly will grow to

Bandhan Bank 7.8 10,798

With effect from October 2019, all banks have made the transition
RBL Bank 7.1 10,729
to external benchmarks for pricing new home loans. Most banks
City Union Bank 7.0 10,719
have picked the RBI repo rate as the external benchmark.
DCB Bank 7.0 10,719 FOR SALARIED FOR SELF-EMPLOYED (%)
BANK RLLR (%) WEF
J&K Bank 7.0 10,719 FROM (%) TO (%) FROM (%) TO (%)

TENURE: 2 YEARS Indian Overseas Bank 8.4 7.4 8.4 7.5 8.5 12 June 2025
Bandhan Bank 7.3 11,545 Bank of Maharashtra 8.3 7.4 9.4 7.5 9.9 10 June 2025
RBL Bank 7.1 11,511 Union Bank of India 8.3 7.4 9.8 7.4 9.8 11 June 2025
Central Bank of India 7.0 11,489 Indian Bank — 7.4 8.8 7.9 9.3 Not available
City Union Bank 7.0 11,489 UCO Bank 8.3 7.4 9.0 7.4 9.0 09 June 2025
DCB Bank 7.0 11,489 Canara Bank 8.3 7.4 10.3 7.4 10.3 12 June 2025
TENURE: 3 YEARS SBI Term Loan 8.2 7.5 8.5 7.5 8.5 15 June 2025
Bandhan Bank 7.3 12,405 Bank of Baroda 8.2 7.5 9.0 7.5 9.1 07 June 2025
RBL Bank 7.1 12,351 Central Bank of India 8.5 7.7 8.9 7.7 8.9 Not available
YES Bank 7.1 12,351 Punjab & Sind Bank 7.6 7.7 10.8 7.7 10.8 09 June 2025
City Union Bank 7.0 12,314 J&K Bank 8.1 7.8 8.9 7.8 8.9 10 Feb 2025
DCB Bank 7.0 12,314 IDBI Bank 8.5 7.8 10.4 8.1 11.9 12 June 2025
TENURE: 5 YEARS Bank of India 8.9 8.0 9.1 8.0 9.1 09 April 2025
DCB Bank 7.0 14,148 Punjab National Bank 8.4 8.0 9.7 8.0 9.7 01 May 2025
RBL Bank 7.0 14,148 IndusInd Bank — 8.3 10.0 8.3 10.0 Not available
Dhanlaxmi Bank 6.8 13,975 South Indian Bank 9.8 8.3 10.6 8.3 10.6 Not available
IDFC First Bank 6.8 13,975 Bandhan Bank — 8.4 13.3 8.4 13.3 Not available
YES Bank 6.8 13,975 HDFC Bank — 8.5 9.3 8.5 9.3 Not available

Top 5 senior citizen bank FDs

Karur Vysya Bank 9.3 8.5 11.4 8.5 11.4 10 April 2025
YES Bank — 8.6 10.3 8.6 10.3 Not available
Interest rate (%) What `10,000
TENURE: 1 YEAR compounded qtrly will grow to Karnataka Bank — 8.7 10.9 8.7 10.9 01 June 2025
Bandhan Bank 8.3 10,851 ICICI Bank — 8.8 9.7 8.8 9.8 Not available
RBL Bank 7.6 10,782 Federal Bank — 9.2 10.0 9.2 10.0 Not available
IndusInd Bank 7.5 10,771
J&K Bank 7.5 10,771
Bank of Maharashtra 7.3 10,745 Your EMI for a loan of `1 lakh
TENURE: 2 YEARS TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
Bandhan Bank 7.8 11,659
IndusInd Bank 7.8 11,659 @ 7% 1,980 1,161 899 775 707
RBL Bank 7.6 11,625 @ 8% 2,028 1,213 956 836 772
Central Bank of India 7.5 11,602
J&K Bank 7.5 11,602 @ 9% 2,076 1,267 1,014 900 839
TENURE: 3 YEARS
@ 10% 2,125 1,322 1,075 965 909
YES Bank 7.9 12,627
FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
Bandhan Bank 7.8 12,589
FOR EXAMPLE, A `5 LAKH LOAN AT 10% FOR 15 YEARS WILL TRANSLATE INTO AN EMI OF `1,075 X 5 = `5,375.
RBL Bank 7.6 12,534
IndusInd Bank 7.5 12,497
Central Bank of India
TENURE: 5 YEARS
7.3 12,405
Post office deposits Interest (%)
Minimum
­investment (`)
Maximum
­investment (`)
Features
Tax
benefits

RBL Bank 7.5 14,499 Sukanya Samriddhi Yojana 8.2 250 `1.5 lakh p.a. One account per girl child 80C
YES Bank 7.5 14,499
Senior Citizens’ Savings Scheme 8.2 1,000 `30 lakh 5-year tenure, minimum age 60 yrs 80C
IndusInd Bank 7.4 14,428
Punjab National Bank 7.3 14,358 Public Provident Fund 7.1 500 `1.5 lakh p.a. 15-year tenure, tax-free returns 80C
Axis Bank 7.3 14,323
Kisan Vikas Patra 7.5 1,000 No limit Can be encashed after 2.5 years Nil

Top 5 tax-saving bank FDs 5-year NSC VIII Issue 7.7 1,000 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS & ABOVE rate (%) will grow to Time deposit# 6.9-7.5 1,000 No limit Available in 1, 2, 3, 5 year tenures 80C#
Bandhan Bank 7.0 14,148 Single `9 lakh Nil
 ost Office Monthly Income
P
DCB Bank 7.0 14,148 Scheme
7.4 1,000 5-year tenure, monthly returns
Joint `15 lakh Nil
RBL Bank 7.0 14,148
Dhanlaxmi Bank 6.8 13,975 Recurring deposits 6.7 100 No limit 5-year tenure Nil
IDFC First Bank 6.8 13,975 Savings account 4.0 500 No limit `10,000 interest tax-free Nil
DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP (ETIGDB@
TIMESOFINDIA.COM). INTEREST RATES ROUNDED TO ONE DECIMAL PLACE. Data as on 19 Jun 2025 #Benefit available only for 5-year deposit
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP19 User: shashi.bhushan4 Time: 06-20-2025 16:19 Color:

market watch
The Economic Times Wealth June 23-29, 2025 19

ALTERNATIVE INVESTMENT
RETURNS MONITOR
The scope and attractiveness of alternative investments is increasing. Here’s a weekly tracker of returns
from such investments. But don’t compare these with returns from traditional investments since the
proportion and purpose of alternative investments is vastly different.

Gold (995) (`) Silver (`) Platinum WTI Crude

71,417 98,864 88,195 1,07,383 980.3 1,279.5 80.7 74.5
19 JUN 2024 19 JUN 2025 19 JUN 2024 19 JUN 2025 19 JUN 2024 19 JUN 2025 19 JUN 2024 19 JUN 2025
PRICE OF 10 GM GOLD PRICE OF 1 KG SILVER ($/ TROY OUNCE) ($/BARREL)
CHANGE

u 1 WEEK 1.9% 1.8% -1.2% 8.1%

u 1 YEAR 38.4% 21.8% 30.5% -7.6%

PENNY STOCKS UPDATE

Penny stocks as a recommended non-traditional investment? Not exactly. ET WEALTH
neither has the expertise nor does it recommend investing in such stocks. But since the
relatively ‘low’ cost of investment attracts some investors to penny stocks, we provide
a weekly snapshot of this most volatile and uncertain type of stock investing.

Top price gainers Top volume gainers

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHANGE (%) (` CR)

Reliance Home Finance 7.1 -9.3 114.2 26.8 296.8 344.9 Shangar Decor 0.8 14.1 14.1 114.6 2,492.2 39.7
Standard Capital Markets 0.7 — 78.4 270.6 -7.3 114.2 Mohite Industries 2.7 -8.6 -26.2 2.5 1,237.9 53.7
Onesource Industries 2.6 26.3 66.0 2.0 49.8 134.6 KMF Builders & Developers 9.2 3.7 -3.8 — 1,067.9 11.2
Sellwin Traders 5.2 23.7 58.3 35.0 417.0 116.0 Remedium Lifecare 0.9 -20.2 -45.8 90.5 981.4 81.5
Pro Fin Capital Services 6.8 9.9 57.8 10.7 61.6 216.2 Lypsa Gems & Jewellery 7.9 -5.1 17.1 1.4 913.5 23.4
Bisil Plast 1.6 22.1 56.6 0.6 79.3 83.8 ARC Finance 1.1 -21.1 5.0 248.2 764.3 95.4
Enbee Trade & Finance 1.0 24.1 50.8 178.2 78.3 56.0 Kaiser Corporation 7.8 -14.4 18.1 10.8 679.6 41.2
Meyer Apparel 2.6 15.3 48.8 0.3 55.0 20.6 Vas Infrastructure 7.4 14.6 -10.8 1.9 657.1 11.3
Setubandhan Infrastructure 1.0 9.0 47.0 0.3 75.0 12.2 Creative Eye 8.8 -22.4 32.0 0.5 544.0 17.6
Ladam Affordable Housing 8.2 -3.7 41.9 — 239.8 15.0 IFL Enterprises 1.2 7.4 41.5 138.6 487.4 144.4

Top price losers Top volume losers

Pulsar International 3.8 -22.3 -52.4 2.1 6.5 27.4 Quasar (I) 0.7 -7.0 -25.0 8.8 -95.3 31.8
Navkar Urbanstructure 1.7 -18.8 -52.0 5.0 119.5 189.6 Teamo Prodyction HQ 0.8 5.5 -10.5 3.6 -81.2 66.3
Remedium Lifecare 0.9 -20.2 -45.8 90.5 981.4 81.5 Kesoram Industries 6.7 -1.9 35.6 4.2 -78.0 207.2
Harshil Agrotech 1.4 -15.0 -39.6 99.7 -53.4 101.0 Maharashtra Corporation 0.5 -7.6 11.4 12.3 -75.6 30.4
SVS Ventures 8.0 0.8 -37.8 2.4 399.4 17.1 Consecutive Investments 1.2 -15.9 -18.1 8.7 -73.3 19.5
AF Enterprises 3.4 -6.6 -36.9 2.1 298.7 11.4 Growington Ventures India 2.1 8.4 24.9 4.6 -70.6 132.3
Vantage Knowledge Academy 8.2 -4.1 -35.1 1.8 68.2 278.7 GV Films 0.4 -2.8 -5.4 63.7 -67.3 32.0
Arunjyoti Bio Ventures 5.4 -20.7 -33.3 2.1 -20.1 99.9 Vakrangee 9.4 -8.1 -17.8 3.3 -65.7 1,021.5
GG Engineering 0.5 -7.6 -30.0 76.8 -51.7 57.3 Achyut Healthcare 3.3 -9 1.2 2.5 -65.3 78.2
Mohite Industries 2.7 -8.6 -26.2 2.5 1,237.9 53.7 IEL 4.7 -0.4 -6.8 4.2 -58.9 31.4

STOCKS HAVE BEEN SELECTED USING THE FOLLOWING FILTERS: PRICE LESS THAN `10, ONE-MONTH AVERAGE VOLUME GREATER THAN OR EQUAL TO 1 LAKH, AND MARKET ­C APITALISATION GREATER THAN OR
EQUAL TO `10 CRORE. DATA AS ON 19 JUN 2025. ALL FIGURES ROUNDED TO ONE DECIMAL PLACE. SOURCE: ETIG DATABASE AND REUTERS-REFINITIV
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP20 User: shashi.bhushan4 Time: 06-20-2025 16:21 Color:

trendmap
map
20 The Economic Times Wealth June 23-29, 2025

Germany’s DAX leads,

Nifty lags behind
Welcome to TrendMap, your quick visual guide to investment performance. This edition
tracks 11 years of global equity returns. In 2025, German markets rose on growth optimism,
while India faced earnings concerns and the US grappled with inflation and tariff uncertainty.
The key takeaway: no market dominates—diversification matters. By Sameer Bhardwaj. THE ECONOMIC TIMES

Rank 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025*

Japan Brazil India Brazil Germany Japan India Brazil Brazil Hong Kong Germany
Nikkei 225 Bovespa Nifty 50 Bovespa DAX Nikkei 225 Nifty 50 Bovespa Bovespa Hang Seng DAX
1 13.9% 81.0% 28.7% 4.4% 26.0% 26.4% 23.8% 26.3% 40.1% 23.3% 31.7%

China USA USA China USA USA

Hong Kong India Mexico Mexico Brazil
SSE NYSE NYSE SSE NYSE NYSE
Hang Seng Nifty 50 MXSE IPC MXSE IPC Bovespa
2 Composite
5.8%
Composite
12.8%
25.4% 4.1%
Composite
24.6%
Composite
23.0%
Composite
21.7%
7.1% 35.2%
Composite
16.3%
30.1%

USA China
Germany Germany Germany Germany Mexico India Germany Germany Mexico
NYSE SSE
DAX DAX DAX DAX MXSE IPC Nifty 50 DAX DAX MXSE IPC
3 5.3% 10.6% 19.7%
Composite
-3.4%
Composite
24.3%
15.6% 18.3% 2.7% 23.9% 15.9% 24.1%

USA China
Japan Brazil Japan Japan India UK UK Japan Hong Kong
NYSE SSE
Nikkei 225 Bovespa Nikkei 225 Nikkei 225 Nifty 50 FTSE 100 FTSE 100 Nikkei 225 Hang Seng
4 Composite
-2.0%
8.0% 19.6% -4.0% 23.6% 14.8% 14.2% -1.5% 23.2%
Composite
15.5%
21.8%

USA USA
Hong Kong Hong Kong Japan Hong Kong Brazil Germany India Japan UK
NYSE NYSE
Hang Seng Hang Seng Nikkei 225 Hang Seng Bovespa DAX Nifty 50 Nikkei 225 FTSE 100
5 -3.8% 5.2% 13.7% -7.3% 22.1%
Composite
6.2%
8.9%
Composite
-2.0%
19.4% 13.5% 16.7%

USA
UK India UK Mexico UK Hong Kong China Hong Kong India Japan
NYSE
FTSE 100 Nifty 50 FTSE 100 MXSE IPC FTSE 100 Hang Seng SSE Composite Hang Seng Nifty 50 Nikkei 225
6 -4.1% 2.8% 10.6% -9.3% 20.1% -1.9% 7.7% -5.6%
Composite
11.8%
8.8% 7.1%

USA China
India UK UK Hong Kong Mexico Japan Germany UK UK
NYSE SSE
Nifty 50 FTSE 100 FTSE 100 Hang Seng MXSE IPC Nikkei 225 DAX FTSE 100 FTSE 100
7 -4.1% 0.3%
Composite
7.4%
-9.4% 15.0% -3.8% -3.6% -8.4% 9.4% 7.4%
Composite
6.1%

China USA
Mexico Mexico Mexico Germany India UK Hong Kong Japan Brazil
SSE NYSE
MXSE IPC MXSE IPC MXSE IPC DAX Nifty 50 FTSE 100 Hang Seng Nikkei 225 Bovespa
8 -7.8% -7.6% 6.7% -14.3% 11.5% -9.5% -13.7% -12.4%
Composite
-6.6%
-25.8%
Composite
5.0%

China China China China

Brazil Mexico Brazil Brazil Hong Kong Mexico India
SSE SSE SSE SSE
Bovespa MXSE IPC Bovespa Bovespa Hang Seng MXSE IPC Nifty 50
9 -36.1%
Composite
-9.6%
Composite
5.5%
Composite
-22.5%
8.6% -20.2% -14.6%
Composite
-12.8%
-14.9% -27.5% 4.7%

Source: Reuters-Refinitiv. *2025 returns are YTD as of 17 June 2025 closing. Other years’ returns are based on first and last trading day closings. Returns are normalised to Indian rupee.

Strong investor sentiment, buoyed by positive steady interest rates and comparatively better The Nifty 50 underperformed its global
economic growth prospects, helped German valuations led to a surge in the Bovespa Index. peers in 2025 due to concerns over high valu-
markets outperform in 2025 year-to-date. This In contrast, interest rate uncertainty and mixed ations, weak earnings growth, and volatile FPI
was followed by Brazil, where expectations of economic signals limit gains in the US market. flows.
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDP21 User: shashi.bhushan4 Time: 06-20-2025 16:22 Color:

mutual funds
The Economic Times Wealth June 23-29, 2025 21

Early retirement possible PORTFOLIO

DOCTOR

due to high savings Not many

investors

BCCL
know
whether
Sujoy Nandy and his wife have a single goal of retiring next year at 46, which is achievable
they have
with minor tweaks in their portfolio. Here’s what the doctor has advised them. invested in
the right
1 2 funds and if
PORTFOLIO
RETIREMENT INCOME: 6 months their fund portfolio is on
CHECK-UP EMERGENCY FUND: IMMEDIATE
GOALS

CURRENT NEED: `11 crore track. The Portfolio Doctor

l The couple wants to PRESENT COST: `30 lakh
(`3 lakh a month) assesses the health of the
retire in six months, FUTURE COST: NA
CORPUS NEED: `11.39 crore fund portfolio, examines
and it is their only
goal so far. the schemes and their
l Early start and high suitability with regard to
risk appetite have AMOUNT EXISTING RECOMMENDED ACTION NEW SIP
INVESTMENT the goals and, if required,
INVESTED (`) SIP (`) (`)
helped them build a
massive corpus. recommends corrective
l However, quitting Continue holding these in liquid schemes or measures. The advice
work early means 1 Emergency funds 30,00,000 - low duration debt funds for high safety and - given is based on the
they must plan for 40 liquidity. performance of the funds,
years of retirement.
the risk profile of the
l Their 6% inflation
adjustment is very
Continue holding these deposits. Under the investor as well as his
Bank fixed deposits 40,00,000 - new tax regime, the income will not breach -
low and they should financial goals.
the tax-free limit.
consider at least 7%
rise in monthly ex-
penses every year.
Start reducing risk by gradually shifting Assumptions used
from equity funds to balanced advantage
l Almost 25% of the
in the calculations
Mutual funds 5,50,00,000 - funds and debt schemes. Start a systematic -
portfolio is in real transfer of `50,000 per month in debt INFLATION
estate and gold. schemes. Education For all
l Real estate provides expenses other goals
passive income, but Direct stock investment can be risky. Move
can be a problem in
old age. Gold offers
Stocks 80,00,000 - from stocks to index funds or balanced
advantage schemes.
-
10% 7%
stability, but returns
can be lumpy. RETURNS
Continue contributing to this assured return ​Equity funds Debt options
l PPF accounts for a PPF 96,00,000 25,000 25,000
major portion of fixed scheme to build a tax-free corpus.
income portfolio. 2 12% 8%
They should continue
investing in the NPS. Keep contributing to this assured return
Employee Provident Fund 3,00,000 20,000 scheme till retirement. After retirement, put 20,000
the corpus in short-term debt funds. PORTFOLIOS
ANALYSED BY
Note from
the doctor RAJ KHOSLA,
Managing Director
l The couple must start Keep contributing to this low-cost pension and Founder,
NPS 10,00,000 10,000 10,000
reducing risk by scheme till the age of 60. MyMoneyMantra
shifting from equity
funds to balanced
advantage funds and
Passive rental income from real estate is WRITE
debt schemes. Real estate 1,80,00,000 -
useful in retirement, but maintenance can be
a problem in old age. Liquidity is also an
TO US
l Direct stocks can be issue. FOR HELP
volatile. They should If you want your portfolio examined,
move to a balanced write to [email protected]
advantage fund or Gold has delivered good returns, but its with ‘Portfolio Doctor’ as the subject.
Gold 95,00,000 - - Mention the following information:
equity index scheme. performance is lumpy. Hold it for stability.
l N  ames of the funds you hold.
l They must continue l  Current value of the investment.
contributing to the , l  I f you have SIPs running in any
The goals can be reached using the mutual
NPS after retirement TOTAL `10,84,00,000 `55,000 funds marked in the same colour. `55,000 of them.
l  T
 he financial goals for which you
and hold till 60 years. invested.
l  H
 ow much you need for each
financial goal.
l  H
 ow far away is each goal.
 NG 3.7 PubDate: 23-06-2025 Zone: ETWealthDelhi Edition: 1 Page: DETWDP22 User: shashi.bhushan4 Time: 06-20-2025 16:32 Color:

your feedback & more...

22 The Economic Times Wealth June 23-29, 2025

Readers’ response, online and in print, to ET Wealth stories has been ­enlightening.
We pick some that add information and perspective to our articles from previous issues.
The cover story is an eye-opener for The article, ‘Tenants and landlords: Rules for a
young Indians like me. While early re-
tirement is a great ambition, the reality
Staying grounded hassle-free lease’ was informative, especially
for laypersons seeking to understand common
of lifestyle expenses, EMIs, and limited The cover story, ‘Financial Independence disputes between landlords and tenants in India.
savings throws the math completely Retire Early (FIRE): Great idea. Tough However, one key aspect was missing—a format
off. The article rightly highlights the reality’, was a captivating read. Early re- or template for rent agreement that could help
importance of reverse planning, strict tirement hinges on a strong foundation of avoid litigation. Including such a framework,
expense control, building an emer- savings and disciplined financial planning. along with a brief summary of the relevant Act
gency fund, and allocating heavily to It entails a strategic approach involving in- that is likely to be followed in the future, would
equities. The truth is that it takes a vestments in stocks, mutual funds, post of- greatly benefit readers.
significant corpus to generate passive fice schemes, and other government saving Rajagopalan R.
income for 30-40 years. The article is a options. Consistency in monthly savings
much-needed reality check for anyone and patience are crucial. FIRE is achievable Ajay Awtaney’s article, ‘Your credit card can
dreaming of early retirement without a through meticulous execution and the right take you places, just swipe right’, was excel-
solid, detailed plan. mindset. lent—well-researched, thought-provoking and
Pratik S. Lunavat full of practical insights. Credit cards, used
Darshan Godbole
responsibly, can be powerful financial tools.
Apropos of the cover story, it is insight- Today, many credit cards offer travel rewards
ful, but FIRE is best suited to patient, also grappling with the loss of work identity, and health—for retiring early, one must across categories like shopping and dining.
disciplined and risk-tolerant individuals. boredom and lack of purpose. A semi-retire- remember that the retirement corpus, no Some even offer ‘travel now, pay later’ options
Retiring early lets you escape the 9-to-5 ment model with part-time work is better as matter how large, may prove inadequate and zero-cost EMIs. Certain card apps provide
grind, pursue hobbies, and live life on one can supplement living expenses while over a 20-30-year horizon due to inflation free travel itineraries, visa assistance and ex-
one’s own terms. However, it demands enjoying the freedom of early retirement. and uncertainties. As a nation that has clusive perks for top spenders as well.
planning, flexibility and a strong financial Mani Bhushan been striving to be productive for decades, Rishi Ahuja
cushion. Young people remain vulnerable early retirement should be seen as the last
to economic uncertainties and may need While the cover story lays out compelling resort. Please send your feedback to
to make drastic lifestyle changes while reasons—burnout, stress, poor appraisals Vinod Johri [email protected]

Top-down & bottom-up investing

If you are confused by personal finance terms, jargon and calculations, here’s a series to
simplify and deconstruct these for you. In the 56th part of this series, Riju Mehta explains
how the two strategies for picking stocks work.

discover under-valued companies business model, governance and

In their quest to Top-down investing demand-supply situation, etc.
or hidden gems that are rewarding management, while using key
find winning stocks, Evaluating company: Finally,
individuals and As the name suggests, this bird’s one narrows down to individual for those with a longer investing metrics like earnings per share, price
wealth managers eye-view approach starts with the companies and evaluates their horizon. to earnings ratio, return on equity,
deploy various general and moves to the specific. performance using several The analysis is used to check etc., to understand how well it is
investing strategies It involves analysing the macro- parameters. its revenue and profit growth, likely to perform.
like value, growth economic data first and eventually
and momentum.
Another popular
zeroing in on the micro data,
that is, a stock or company. The
Bottom-up investing How these approaches differ
ploy used for stock- following steps explain how this This approach is the exact reverse
Top-down Bottom-up
picking comprises strategy works. of the top-down style, wherein the
two contrasting Analysing economy: The investor investor starts with the evaluation It moves from broader It first considers an individu-
techniques. These considers the prevailing and future of an individual company, then Approach economic picture to a al company and then moves
are known as top- economic situation, domestic or analyses the industry and sector specific stock. up to look at macro data.
down and bottom-up global trends by using macro data, eco-system, and finally considers
investing. Here’s how Domestic or global
such as gross domestic product the macro-economic situation. Fundamental analysis of
these work and differ economic trends, GDP,
(GDP), direction of interest rates, The focus here is on the Focus area company with metrics like
from one another. interest rates, inflation,
expected inflation, employment, fundamental analysis of the PE ratio, EPS, ROE, etc.
employment.
among others. company, making it an intensive
Studying industry or sector: After and time-consuming process It’s best suited to short- It’s better for longer invest-
Time horizon
studying the broader economy, because every single aspect of the term investing. ing time frames.
one moves to the industry that is company is put under the scanner
The investing pool is The investing pool is much
likely to perform well under the to observe its potential and scope Investing pool much wider with many smaller because of focus on
given conditions, and evaluates for growth in the long term. The options to choose from. individual companies.
its growth potential, challenges, buy-and-hold strategy can help

The Economic Times Wealth is available at an invitation price of ` 8/issue. To book your copy, contact your newspaper vendor or call 1800 1200 004.
The Economic Times Wealth, published by Bennett, Coleman & Co. Ltd. exercises due care and caution in collecting the data before publication. In spite of this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this newspaper, The Economic Times Wealth will not be held
responsible or liable. The content hereof does not constitute any form of advice, recommendation or arrangement by the newspaper. The Economic Times Wealth will not be liable for any direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers
are recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions.

Published for the proprietors, Bennett, Coleman & Co. Ltd. by Rajeev Yadav at Times House, 7, Bahadur Shah Zafar Marg, New Delhi-110 002, Phone: 011-23322000, Fax: 011-23323346 and printed by him at The Times of India Press, 13 & 15/1, Site IV, Industrial Area, Sahibabad, UP. Regd. Office: Dr Dadabhai Naoroji
Road, Mumbai 400 001. Editor: Kayezad Edul Adajania (Responsible for selection of news under PRB Act). © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved.RNI No. DELENG/2011/37994. MADE IN NEW DELHI
 QA
NG 3.7 PubDate: 23-06-2025 Zone: ETWealth Edition: 1 Page: ETWDPBP User: shashi.bhushan4 Time: 06-20-2025 16:26 Color:

your queries

&
The Economic Times Wealth June 23- 29, 2025

I booked a flat in February for `1.5 crore. I plan to take We want to start SIPs of `1,000
a home loan of `1.1 crore and cover the balance by each in three mutual funds for
selling stocks across 2024–25 and 2025–26. While I our son, who is currently in Class
don’t intend to use mutual fund investments for other IX. We are looking at an
expenses, does it make sense to sell them purely for investment horizon of 8-10
tax harvesting and then repurchase the same units? years. Please suggest 2–3
Also, while filing my income tax return for 2024–25, suitable funds for this goal.
how should I report the LTCG if the proceeds were
used to buy the house? Can I claim an exemption
Our panel of experts will
under Section 54F or any other applicable Section? answer questions related to For a 10-year time horizon, you can
look at investing `1,000 each in the
From an income tax perspective, tax harvesting—
any aspect of personal following funds: Kotak Flexi Cap Fund,
where mutual fund units are sold to realise long-term finance. If you have a query, HSBC Value Fund, and Mirae Asset
capital gains (LTCG) up to the exemption limit or to Nifty MidSmallcap400 Momentum
reset the acquisition cost—is a permissible strategy, mail it to us right away. Quality 100 Fund. This portfolio will
provided the transactions are genuine, executed at give you a good blend of different
market value, and not intended to avoid tax through QUESTION OF THE WEEK strategies and market capitalisations
as well.
artificial losses or wash sales.
As for exemption under Section 54F of the Income No amount is considered small, but
Tax Act, 1961, it can be availed of on LTCG arising to give you an estimate, `3,000
from the sale of a long-term capital asset other than a invested per month at 12% CAGR will
I’m a Hindu and need legal advice on yield around `6.97 lakh after 10
residential house if the net sale consideration is in-
vested in purchasing or constructing a house within drafting my will. I own two ancestral years. I don’t know if this amount
the prescribed timeline, that is, a year before or two properties inherited from my would be sufficient for your goal,
years after the date of transfer (or three years in case grandmother and mother. I want my especially after factoring in inflation.
of construction). As the flat was booked in February wife to be the sole and absolute With inflation in mind, I suggest you
and the mutual fund sales are spread across 2024–25 make an annual systematic
owner of these after my death, with investment plan (SIP) top-
and 2025–26, you may be eligible for exemption un-
der Section 54F for the portion of the net considera- no claim from my sons or their legal up of 10-20% so that
tion used toward the purchase of your flat, provided heirs. I’ve received conflicting you can accumulate
you meet other conditions too. suggestions. One says a clear will is more.
While filing your 2024–25 return, you must report enough to exclude my sons, another
the LTCG from mutual fund redemptions in the Capital
recommends notarised NOCs from Rushabh Desai
Gains Schedule. Thereafter, you can claim
the proportionate exemption under them, and a third suggests a Founder, Rupee With Rushabh
Investment Services
Section 54F based on the actual in- relinquishment deed in favour of my
vestment made toward the property. wife. I need clear guidance on the
most effective way to ensure my
I am 46 years old, with 24 years of
wife inherits these properties
Amit Maheshwari work experience, and recently quit my
Tax Partner, AKM Global without any disputes. job. I need a monthly income of
`70,000 to cover my expenses. Could
you advise on the corpus required to
I have recently acquired foreign citizenship and will generate this income through system-
be applying for an OCI (overseas citizen of India) card atic withdrawal plans (SWPs), and
soon. I would like to know if I can become a co-owner It is assumed that since you inherited the
how I should allocate the funds to
for my mother’s property in India. two ancestral properties from your meet this goal?
grandmother and mother, the ownership
As a foreign citizen, you can become a co-owner for has been legally transferred to your
name and is reflected in the official If you want this income for, say, the next
your mother’s property in India only through in-
one year (assuming you get back to work
heritance or as a gift. There is no need for a sepa- records. While a will is the most
by then) without disturbing your corpus,
rate government approval if your resident Indian straightforward way to pass on property, you would need roughly around `1.2
mother transfers residential or commercial proper- it can still be challenged. Its strength lies crore to generate `8.4 lakh of income
ty to you via a registered gift deed or will. Howev- in how clearly and legally it is drafted. per year (`70,000 per month). We have
er, until you receive your OCI card, you are not per- A clear title in your name is essential. not considered inflation here and as-
mitted to purchase immovable property in India.
You should create a legally sound will in sumed a return of 7% from debt funds or
Even after obtaining the OCI status, you are re-
stricted from acquiring agricultural land, planta-
simple language, clearly stating that both deposits. If you simply plan to withdraw
properties are to be inherited solely and funds, then you can just park `9 lakh and
tions, or farmhouses.
absolutely by your wife. It’s also keep withdrawing the amount monthly
Once you have been granted an OCI card, you
important to include a fallback plan in for about a year. Or, if your intention is
will have the same property rights as non-resident
not to work anymore, then assuming an
Indians (NRIs) for purchasing residential and com- case your wife predeceases you—specify
inflation of 4.5%, return of 7.5% on the
mercial property, again excluding agricultural and who should inherit the properties in that
corpus, and a lifespan of 80 years, you
plantation lands. To proceed, complete your OCI scenario. To strengthen your will, need around `1.8 crore to generate in-
application and wait for approval. If your mother register it with the sub-registrar’s office. come with annual inflation.
intends to transfer her share, she can do so through Also ensure standard formalities— For either of these objectives, you
a registered gift deed. It is advisable to engage a lo-
include a doctor’s certificate may use a combination of short duration
cal property lawyer to ensure that the transfer
and have two independent funds and equity savings funds to gener-
complies with the Registration Act and
witnesses (with no benefit ate the required cash flow
FEMA regulations. This will help you
from the will), preferably through SWP.
formalise co-ownership in full
compliance with Indian property younger than you, who
laws. are likely to outlive you.
Vidya Bala
Co-Founder, PrimeInvestor.in
Rajat Dutta
Founder & Initiator, Inheritance
Umesh Kumar Jethani Needs Services
Please send your feedback to
Founder, ApkiReturn [email protected]