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WEEKEND READINGS

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    Weekend Market Read
    Retail Investors Ruling The Indian Stock Market
      • Foreign portfolio investors are pulling out money, but domestic investors are keeping up market sentiment
      • Domestic investors, including retail investors, HNIs and domestic institutional investors, are driving the market
      • The share of domestic investors has overtaken FPI inflows in 2021-22

      The Indian stock market seems to be maturing day by day and so are the investors. The corrections after the 2021 rally did not deter the retail investors to invest in the market. Systematic investment plan (SIPs), a favourite with investors looking at investing in the equity market through mutual funds, have been witnessing high inflows. The inflows reached an all-time high in the month of March, at Rs 12,328 crore.

      So, while at one side foreign portfolio investors (FPIs) are pulling out money from the market, on the other, domestic institutional investors (DIIs) are pumping money in the market. The market direction, which used to be largely decided by the FPIs, seems to be dictated by domestic investors. This is evident from the limited market fall despite record FPI outflow. As per the Central Depository Services Limited (CDSL) data, FPIs have pulled Rs 1,75,198 crore from January 1, 2022 till May 28, 2022. They have pulled Rs 1,66,299 crore from equities alone over the same period.

      Increasing Share of Domestic Investors

      Research by Prime Database shows the emergence of an interesting dynamic in the market. According to Prime Database, the share of retail (individuals with up to Rs 2 lakh investment), high net-worth individuals (HNIs) and DIIs in companies listed on the National Stock Exchange (NSE) as a whole reached an all-time high of 23.34 per cent as on March 31, 2022, well above the FPI share of 20.15 per cent, showcasing the rise of domestic individual investors and the huge counter-balancing role they have played against foreign investors.

      To put this in perspective further, as on March 31, 2015, the FPI share was 23.32 per cent, while the combined share of retail investors, HNIs and DIIs was just 18.47 per cent.

      Interestingly, on the domestic front, the share of retail investor in companies listed on NSE is almost the same as the share of domestic mutual funds with 7.42 per cent and 7.75 per cent, respectively, as on March 31, 2022.

      More Demat Accounts, More Retail Money

      The multifold rise in the number of demat accounts in the last two years shows how retail investors are reposing their faith in the growth of the Indian economy.

      According to two depositories, NSDL and CDSL, the total number of demat accounts is 9.28 crore as on April 30, 2022. This number is almost three times the number recorded as of March 2020. According to CDSL, the total number of demat accounts was 2.12 crore in March 2020, which has grown to 6.50 crore in April 30, 2022.

      A higher number of demat accounts means there is more money from the retail investors in the stock market.

      The share of retail investors in companies listed on NSE reached an all-time high of 7.42 per cent as on March 31, 2022, from 7.33 per cent as on December 31, 2021, as per primeinfobase.com, an initiative of PRIME Database Group. In Indian rupee value terms, too, retail holding in companies listed on NSE reached an all-time high of  Rs 19.16 lakh crore from Rs 19.05 lakh crore on December 31, 2021, an increase of 0.56 per cent.

      MF Inflows Adding to DII Growth

      Equity mutual funds have been consistently attracting inflows amid a volatile stock market environment and continued FPIs outflow. This segment has seen net inflow in the last 13 consecutive months. The higher inflows have led to higher holdings in listed companies.

      The share of DIIs, which include domestic mutual funds, insurance companies, banks, financial institutions, pension funds and others, also increased to 13.70 per cent as on March 31, 2022 from 13.21 per cent as on December 31, 2021, on the back of net inflows from DIIs of a huge Rs 1,03,689 crore during the quarter. In rupee value terms, DII holding too went up to an all-time high of Rs 35.35 lakh crore as on March 31, 2022, an increase of 3.05 per cent over the last quarter.

      Conclusion

      The Indian retail investor has realised the importance of equity investing. Equity could be volatile in the interim but has the potential to deliver better returns in the long term. The early you start, there is a fair chance of making better returns in the long term.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. We are distributors of Insurance and Mutual funds, Corporate Fixed Deposits, NCDs, PMS and AIF products. The non-broking products / services like Demat, Mutual Funds, Insurance, FD/ Bonds, loans, PMS, Tax, Elocker, NPS, IPO, Research, Financial Learning etc. are not exchange traded products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism.

    Weekend Market Read
    Five Destructive Money Habits You Should Avoid
    • Old habits die hard, especially when it comes to saving, spending and investing. At a young age, most people have less responsibilities and liabilities, and it may be difficult to understand the importance of saving enough. However, once people get into the habit of splurging all their income, it becomes difficult to grow out of it.

      As you grow older, these habits could put you in a bad financial shape. Remember that you can earn only a limited amount of money but there is no limit to spending, unless you control yourself. You need to balance this out in a better way so that you never fall short of money. There are many examples across the world which suggest that even billionaires go bankrupt because of destructive money habits or bad money decisions.

      Here are some bad money habits you should stay away from.

      Biting off more than you can chew

      Spending more than you earn is the most dangerous financial habit. It can easily lead you into a big debt trap. There are attractions all around.

      When you visit a mall, you will find goodies displayed near the checkout line of stores of the newest electronic good displayed prominently at another store. Such displays are not done just to decorate the store but are tactics to attract customer’s attention and interest. Such tactics can nudge you to spend more money than you planned before you leave the store.

      It’s also common to see people to buy things simply to impress others. For instance, a small family car may serve the purpose for you, but buying a big car, even if a big loan is required for that, may be an aspiration if your friends or colleagues have big cars.

      At times, people end up doing impulsive shopping either because they are bored or upset. Many a times these are done through online shopping apps. These apps may also lead you to splurge with offers and discounts.

      A lot of people fall into the trap and end up buying things they don’t really need. Avoid spending on unwanted things and save for future.

      Using credit card as a loan

      Have you ever given a thought how credit card issuers make money? Let us tell you how that happens. If you use a credit card for your shopping and pay off the credit amount, you are not a special customer for credit card company because you do not allow them to earn money. Credit card companies make money from those customers who either do shopping on EMI or keep revolving the credit balance.

      Typically, a credit card charges you 15-20 per cent if buy things on EMI. Similarly, if you do not pay the credit amount in full, they charge you 2.5-3 per cent monthly on the full amount. This 2.5 -3 per cent might look like a small amount, but if you calculate it on an yearly basis, it may work out in the range of 30-36 per cent.

      The late fee is charged if you delay the repayment. This late fee is in addition to the interest rate charged. If you are using a credit card, ensure that you pay your bills on time and in full.

      Living pay cheque to pay cheque

      Stop making the excuse of not earning enough to be able to save. If that is indeed the case, you need to start acting upon it and look at ways to increase your income and reduce your spending.

      This saving will help you at the time of crisis and to meet your financial goals. Some of the people who were laid off during the pandemic but had the habit of living pay cheque to pay cheque suffered. If anything, the period should be a lesson for people to start saving.

      Not investing at all

      Simply saving every month and letting the money lie in your bank savings account may not serve the purpose. It is important to invest the money. It’s true that money does not grow on trees, but money grows when you invest it. Considering the higher inflation and the lack of any social security in India, you should start investing in productive asset classes such as equity for your financial goals.

      Not buying insurance in time

      Distress does not come with an appointment. It may come at any point in time, so you need to be prepared. Many people keep procrastinating buying insurance thinking they don’t need it. The fact is that the need for an insurance may arise at any point of time. So, buy life and health insurance before any disaster comes knocking at your door.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. We are distributors of Insurance and Mutual funds, Corporate Fixed Deposits, NCDs, PMS and AIF products. The non-broking products / services like Demat, Mutual Funds, Insurance, FD/ Bonds, loans, PMS, Tax, Elocker, NPS, IPO, Research, Financial Learning etc. are not exchange traded products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism.

    Weekend Market Read
    Does It Make Sense To Have Multiple Credit Cards?
      • Different credit cards offer different benefits, including cashbacks, rewards and discounts
      • Some cards come for specific expenses such as on travel, food or shopping
      • Opt for multiple cards if you are sure you will use the different features and avail of the benefits
      • Remember to handle multiple billing cycles adeptly to avoid falling into a debt trap
      • Ideally, stick to two-three credit cards with different features, as per your usage and lifestyle

      The use of credit cards is steadily increasing with more and more people taking to digital transactions. During 2021-22, payment transactions carried out through credit cards increased by 27 per cent in volume and registered a rise of 54.3 per cent in terms of value, according to the Reserve Bank of India Annual Report 2021-22 released recently.

      With the industry expanding, there are several types of credit cards available in the market now.

      However, so how many cards should a consumer ideally have?

      Different Cards, Different Benefits

      Some credit cards can be used only for general expenses, while some come with specific features or are meant for specific expenses such as travel, fuel or dining. Also, different credit cards come with different offers such as discounts, rewards, cashbacks, accumulation of air miles, access to airport lounges, club or gym memberships and more.

      For example, SBI Card Elite offers vouchers to its customers for shopping from premium brands. It also offers complimentary lounge access and claims to have higher reward points than other cards. Similarly, HDFC Regalia credit card also offers lounge access, apart from benefits on dining, travel and shopping.

      Some credit cards also have tie-ups with specific brands and even e-commerce websites. For example, Amazon Pay ICICI card offers you specific benefits if you shop from Amazon.

      How Many Cards Should You Have?

      If you are among those who like to enjoy different benefits and would want to use the various features offered by credit cards, you may end up with multiple credit cards offering different features.

      Having different cards can help you reduce expenses on specific categories such as fuel or air ticket purchase. Also, they can help you avail of cashbacks and other benefits if you organize your buying and spending well. Also, each card may have limited period offers and specific benefits—for instance a credit card from one lender may get you discounts for shopping from one grocer, but not at your favourite e-commerce website, and vice-versa. Moreover, you can also use the interest-free period to the optimum, but it will need careful planning.

      While you may keep as many credit cards as you can comfortably handle, there could be a catch if you slip up in terms of payments. Since handling too many credit cards can be a cumbersome process, you should have them only if you are highly disciplined in terms of repayment. If credit cards are not used smartly, you may end up missing some of the payments and accumulating debt in the long term.

      Also Read: Different types of credit cards in India

      According to experts, if you are unable to deal with different billing cycles of different credit cards in an effective manner, you should put a limit on the number of credit cards you use. For instance, if you are a frequent flyer, you may have two credit cards—for regular expenses and travel-related expenses—and no more. On the other hand, if you use your car to travel long distances for work on an everyday basis, you may prefer to have fuel and regular credit cards.

      Ideally, you should not have more than two to three credit cards, each with different features that align with your usage and lifestyle. But remember to pay your bills on time.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

      The non-broking products / services like Mutual Funds, Insurance, FD/ Bonds, loans, PMS, Tax, Elocker, NPS, IPO, Research, Financial Learning etc. are not exchange traded products / services and ICICI Securities Ltd. is merely acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism.

    Weekend Market Read
    Armed Forces Personnel Have Multiple Home Loan Options To Choose From
      • Armed forces personnel may get promotional offers but it makes sense to compare interest rates across lenders
      • Ensure you check the conditions related to prepayment as some of these need to be settled before retirement

      If you are an Armed Forces personnel and looking to buy a house, there are a number of home loan options you can choose from. While a normal individual has options of public and private sector lenders, Armed Forces personnel also get three options internally. Read on to know more.

      House Building Advance (HBA)

      The HBA facility is available not just to the armed forces but also to all government employees. They are usually available at a lower interest rate than the prevalent market rates. According to a notification from the Ministry of Housing and Urban Affairs, dated April 1, 2022, the interest rate on HBA for the financial year 2022-23 has been fixed at 7.1 per cent.

      With private and public sector banks raising rates following the Reserve Bank of India’s rate increase earlier this month, they may be cheaper options in the future. The repayment of these loans are linked to the salary and debited directly.

      These loans are available for construction of a house, buying a plot or a ready-to-move property and even for renovation of a property. It is also possible to migrate to this scheme if you have already borrowed from another lender.

      However, the amount of loan available under this scheme may be limited. You need to check the terms and conditions before availing this loan.

      Group Insurance Funds

      The respective group insurance funds of the three armed forces also provides loans to the personnel. The Army Group Insurance Fund (AGIF), for instance, provides home loans to the tune of Rs 80 lakh to officers and to a lesser amount to non-officers. The Navy and the Indian Air Force also extends such loans to its officers and men through the Naval Group Insurance Scheme (NGIS), and the Air Force Group Insurance Scheme (AFGIS), respectively.

      These loans can be availed for anything from buying a house, car or even white goods, such as computers. The only stipulation is that when someone takes premature retirement, they need to prepay the loan—either with their own funds or through a loan balance transfer to a bank.

      All loans have to be settled before leaving the service. The rates are comparable with bank rates.

      Special Offerings

      Some banks have special home loan offers for armed forces personnel. Some of these offer a home loan interest rate lower than that available to civilian borrowers.

      For instance, the State Bank of India’s SBI Shaurya Home loan scheme is only available for defence personnel. There is no processing fee or prepayment penalty under the scheme and it offers lower interest rate, apart from other benefits, according to the SBI website. It also provides a concession to woman borrowers.

      Various other banks, including HDFC Bank, Bank of India and Axis Bank, offer loans especially designed for the defence personnel.

      Many banks also have tie-ups with individual services—the Army, Airforce and Navy—and offer promotional schemes to service personnel.

      It makes sense to compare the interest rates available under different schemes, internal and regular, before settling for one. Besides, you should also check the terms and conditions of repayment before borrowing.

       

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. I-Sec does not assure that the fund's objective will be achieved. Please note. NAV of the schemes may go up or down depending upon the factors and forces affecting the securities markets. Information mentioned herein is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Investors should consult their financial advisers if in doubt about whether the product is suitable for them. SEBI research analyst Registration no.-INH000000990. ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd., ICICI Home Finance Company Limited and various other banks / NBFC for personal finance, housing related services etc. & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc.

    Weekend Market Read
    Ride Market Volatility With Stock SIP
      • Can be initiated with a predefined sum or quantity of Shares
      • Makes you a disciplined investor
      • Stops you from timing the market
      • Steadily helps in building a meaningful corpus
      • Helps to better tackle volatility by capturing both the highs and lows of the market
      • Helps you balance risk by rupee cost averaging

      Investing in equities is inevitable today for investors who are looking for inflation-beating returns.

      But given equity’s notoriety for bouts of interim volatility, the key dilemma playing out in the minds of most of us these days is: should I wait, or should I take the plunge? The simple answer to this complex dilemma is to avoid going all in at one go. Having a systematic approach can help you turn market volatility in your favour.

      You may have heard of systematic investment plans (SIP) in mutual funds, but the SIP route is available in direct stocks too.

      Equity SIP

      You can invest in direct equity or the shares of your choice though SIPs. Several brokerage houses offer this option on their platforms, though they may have different names.

      For instance, ICICI Direct offers this option through Systematic Equity Plan (SEP). With SEP, you can invest a pre-specified sum of money or buy a pre-specified quantity of shares in a consistent manner. Let’s put it simply: If want to buy a stock worth Rs 5,000 on a monthly basis, you can do by selecting the pre-specified sum of money or you can choose the quantity of your choice, say, 15, 20 or 30 shares per month, week, or the period that you find suitable.

      This will help you automate your equity investments. You just need to select the stock, the frequency, the duration of SEPs, the commencement date and the rest shall be done by your brokerage platform.

      Sail Through Volatility

      Equities have known to outperform every other asset class in the long run, and it won’t be wise to miss investing in equities simply because it tends to be volatile in the interim. While the volatility of the equity markets can neither be predicted nor be tamed, a disciplined and systematic approach to invest in equities, through SIP, can surely help one sail through the equity market without worrying about the high and the low tides.

      Make Every Rupee Count

      By investing through stock SIPs you will avoid any temptation to capture the highs and lows of the stock price. Moreover, following this disciplined investment approach will average out your cost over a period of time. This is the most effective way to invest in equity, especially during volatile times that we are currently witnessing.

      In fact, apart from shielding you from the biggest risk of equity investing, which is timing the equity market, Equity SIP also gives you the freedom from tracking the stock market on a regular basis. This leaves you with ample time to hone your skills at your respective jobs or do the things of your choice.

      Makes Market Timing Irrelevant

      None of us would like to lose money and so we often try to get our timing (to invest in equity market) right. But what’s a good time? Stock markets are notorious for their volatile nature and so there is no such time as a good time to invest in equities. If you are investing for the long term, any time is a good time. In fact, long-term investors need not bother about daily or weekly market movements as the returns get averaged out in the long run even if they decline drastically or jump significantly in the interim.

      Lighter On The Wallet

      The other fascinating beauty of SIPs is that it can help you accumulate a meaningful corpus over the years, without pinching your pocket. Let’s assume you start with buying 10 units of Tata Consultancy Services on a monthly basis and assume the share price grows at 15 per cent per annum. In 10 years, you can accumulate a wealth of Rs 91.62 lakh, according to data provided by the ICICI Direct calculator.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. I-Sec does not assure that the fund's objective will be achieved. Please note. NAV of the schemes may go up or down depending upon the factors and forces affecting the securities markets. Information mentioned herein is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Investors should consult their financial advisers if in doubt about whether the product is suitable for them. SEBI research analyst Registration no.-INH000000990. ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd., ICICI Home Finance Company Limited and various other banks / NBFC for personal finance, housing related services etc. & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc.

    Weekend Market Read
    What To Look For In A Stock Research Report
      • Start with looking for basic information
      • Don’t miss information about valuation and financials
      • Look for commentary on the company’s future prospects
      • It usually also contains information about peers
      • Look for possible risk factors to assess the suitability

      “Never invest in a business you cannot understand,” goes one of the famous quotes by Warren Buffett. You cannot understand a business and its true potential without doing proper research. Considering the vast number of companies listed on the stock exchanges, it is impossible for investors to research them individual.

      In this scenario, research reports published by financial institutions, including brokerage firms, come handy. This is because research reports are prepared by research analysts who are professionally qualified to do this.

      Here is what research reports contain and how you can use them to make informed investment decisions.

      Basic Information

      Typically, a research report begins with some basic information about the company. This includes the company name, its ticker symbol, the primary sector and industry in which it operates, the current stock price, market capitalization and so on.

      These reports also contain the financial institutions’ investment recommendation on whether you should buy, hold or sell the stock of the company.

      But the key thing to see here is the target stock price. This gives you an idea about how the stock price will move in the future. For instance, if it is a buy call, the target price would be higher than the current price. On similar lines, if it is a sell recommendation, the report will suggest you a target price that is lower than the current price, indicating that the stock is likely to fall in the future.

      These recommendations are based on through analysis of company financials using various models, sector outlook and market trends.

      Industry Overview

      This section of the report includes an overview of the industry dynamics, including a competitive analysis of the industry.

      Most research reports carry the overall industry trends and discuss the competitive environment, including the performance of the peers. For instance, a research report of a company working in the Information Technology space will give you an idea about how the company is seeing an increased demand for “as-a-service” model, and how digital, cloud and transformation programs continue to have robust demand as clients spend on value initiatives. This part may also contain the commentary given by the management for future growth.

      Valuation And Financial Analysis

      The valuation section includes a thorough valuation analysis of the company using conventional valuation metrics and formulas. This gives you an idea about the company valuation in relative terms compared to its peers in the industry.

      The financial analysis section gives you detailed analysis of the company’s historical financial performance and a forecast of future performance. This section is mostly represented by charts and graphs for better understanding of the readers. With the help of all these pictorial representation you get to know the companies past and likely future performance.  

      Investments Risks

      This section addresses potential factors or causes that could pose a risk to the investment thesis given in the report. These risks could be of any type such as  operational or financial or related to regulatory issues or legal proceedings.

      Research reports give you a broad perspective about the company. You should prefer research reports that come from reliable sources and those that contain actionable.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. I-Sec does not assure that the fund's objective will be achieved. Please note. NAV of the schemes may go up or down depending upon the factors and forces affecting the securities markets. Information mentioned herein is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Investors should consult their financial advisers if in doubt about whether the product is suitable for them. SEBI research analyst Registration no.-INH000000990. ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd., ICICI Home Finance Company Limited and various other banks / NBFC for personal finance, housing related services etc. & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc

    Weekend Market Read
    Finding A Place to Stay Is A Struggle For The LGBTQ Community
      • Due to social taboo, a lot of homeowners refuse to give their houses to the LGBTQ community on rent
      • Often, they have to pose as relatives or cousins to be able to get a home on rent
      • Joint home loans are not available to most same sex couples
      • Submission of marriage certificate is a must, but same sex marriages are not legal in India
      • One of the partners can become a loan guarantor to share the responsibility of loan repayment

      The unfriendly laws and society in India make it tough for the LGBTQ (lesbian, gay, bisexual, and transgender, questioning and others) community. Recently, the increasing focus of filmmakers and artists on the community have brought to the fore some of the issues they face. On the ground, however, issues remain.

      Taking A House On Lease Is A Problem

      It’s never easy for the community to rent out houses, as a result of the associated taboo and prying eyes of the houseowners and neighbours.

      Often, couples have to come up with inventive ways to be able to live together. The movie, Badhaai Do, took up the issue. The movie shows that the protagonists chose to pose as heterosexuals in order to get married and be able to pursue their own interests, while ensuring that they had a roof over their heads. When the female protagonist’s partner moves in, she has to pose as her cousin to settle neighbours’ curiosity.

      No Joint Home Loans Available

      Buying a house in their names also becomes a challenge as there is no facility for them to own a property in joint names. Often, they need to pose as cousins or distant relatives to be able to buy a house together. Otherwise, they have no option but to buy a house only in the name of one partner.

      Joint home loans are available mostly to married couples. Usually, borrowers need to fulfil know your customer (KYC) norms at the time of application. This involves submission of various documents such as proof of income and marriage certificate. At this stage, it gets clear whether a couple is legally married or not. Naturally, same sex couples are unable to provide such certification as their marriages or partnerships are not legally recognized.  

      In some cases, joint loans are also available to relatives or cousins after valid documents to support the relationship are provided.

      However, one of the ways they can take a loan jointly is by becoming a guarantor. While this is not exactly like taking a joint loan, the responsibility of repaying lies with both partners in such a case. A guarantor is, typically, held responsible for the repayment of a loan in case the primary borrower defaults.

      Change is happening in pockets, but only to a limited extent. For instance, some employers have LGBTQ -friendly policies. Benefits such as life insurance and maternity leave are applicable to everyone, including “partners” and adoptive parents. Moreover, some banks now allow same sex couples to open joint accounts. However, the industry needs to take bold steps ahead before the LGBTQ community is financially empowered.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

      The non-broking products / services like Mutual Funds, Insurance, FD/ Bonds, loans, PMS, Tax, Elocker, NPS, IPO, Research, Financial Learning etc. are not exchange traded products / services and ICICI Securities Ltd. is merely acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism.

    Weekend Market Read
    Why to Invest in Mutual funds
      • Mutual funds can be used for short- as well as long-term goals
      • From funding the down payment of your home loan to retirement, MFs can be used to cater to all your goals
      • MFs help you invest in various asset classes such as equity, debt and gold
      • A professional manages your money, which increases the likelihood of success
      • You don’t have to worry yourself in terms of tracking daily movement of stocks and scrips

      It is true that money can’t buy happiness. But let’s be honest, more money does not exactly make us unhappy either. While it may be easy for the rich, most of us have to work really hard to make enough money to not worry about our finances in the future. The unfortunate part is that no matter how much you earn, there is always that inflation monster lurking nearby. The taxman just adds to this misery. In this scenario, how does one get ahead and become wealthy?

      The easiest way out is investing in financial instruments, according to your financial goals. The most convenient way to invest in different assets is through mutual funds (MFs).

      Why Should You Choose Mutual Funds?

      This question may arise considering the availability of a plethora of financial products in the market. The simple answer to this question is that mutual funds are professionally managed financial products that pool money from different individuals and invest it on their behalf in various asset classes such as equity, debt or gold.

      The investment decisions are handled by expert fund managers, depending on the scheme objective and market conditions. They take all the hassle and not the investor directly. MFs are attractive because they are flexible, affordable, professionally managed, give room for diversification and offer liquidity.

      Different investors may have different needs and varied level of risk appetite. You may be a conservative, aggressive or a very aggressive investor based on your financial goals. MFs are tailor-made for all your investment needs. Right from parking your money for the short term to investing for long-term future goals such as retirement and children’s education, MFs offer a wide range of products from equity to liquid funds.

      Here are the top three categories of mutual funds that investors can consider for various goals: Equity, Debt and Hybrid.

      Equity Mutual Funds

      Mutual fund schemes that invest your money into equity shares of different companies are called equity mutual funds. As an asset class, equity funds have the capability of giving you higher returns in the long run with an acceptable level of risk. If you look at the long-term performance of equity funds, say 10 or 15 years, they have delivered superior returns. Equity is a must-have asset class in your portfolio if you have long-term financial goal in mind. Equity MFs come in multiple variants, their category depending on the type of stocks invested in to build a portfolio.

      Debt Mutual Funds

      Debt MFs invest in debt securities such as government bonds, corporate bonds, commercial papers, and other money market instruments. There are various types of schemes in the debt fund category. These are classified on the basis of the type of instruments they invest in and their duration in the portfolio.
      For instance, a long-term debt funds will invest in various types of bonds such as corporate, government and money market instruments with longer maturity.

      Hybrid Mutual Funds

      This category invests in a mix of asset classes such as equity, debt and, in some cases, gold. Broadly, it is further divided into three sub-sections depending on equity allocation. They are equity-oriented hybrid funds, debt-oriented hybrid funds and dynamic allocation hybrid funds. It can be used for a variety of investment functions such as asset allocation and diversification, portfolio rebalancing and the primary one of earning equity-linked returns with lower volatility than pure equity funds.

      Conclusion

      MFs offer solutions for all your financial needs, right from funding the down payment for your home loan to funding your sunset days. You just need to choose one that suits your financial needs.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism

      Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. I-Sec does not assure that the fund's objective will be achieved. Please note. NAV of the schemes may go up or down depending upon the factors and forces affecting the securities markets. Information mentioned herein is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

      The information provided is not intended to be used by investors as the sole basis for investment decisions, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific investor.The contents herein above shall not be considered as an invitation or persuasion to trade or invest. Investors should make independent judgment with regard suitability, profitability, and fitness of any product or service offered herein above. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

    Weekend Market Read
    5 factors you must consider before investing in ULIPs
      • Look at the costs and decide if you are willing to pay those
      • Assess if the sum assured is enough to cover the needs of your family or dependants
      • Look at the performance and investment objectives of the funds the Ulip invests in
      • Keep your risk profile in mind when choosing the fund categories for investment
      • Don’t forget to check the insurance company’s track record and compare the options in the market

      Unit-linked insurance plans or Ulips are among the most common insurance products that are pushed by agents. They offer twin benefits of insurance and investment, but it is important to see the cost attached in these instruments.  

      What Are Ulips?

      Ulips are insurance plans that provide a cover and also invest the a part of the premiums on your behalf. One part of the premium goes into paying for the life cover, and the other is invested in the fund of your choice from a variety of options, including equity and debt. You can even choose to invest in a combination of both, as per your risk appetite and financial goals.

      Ulips also offer tax benefit under Section 80C of the Income-tax Act, 1961, up to Rs 1.5 lakh.

      Things To Consider

      Ulips are not simple products as they combine two aspects—investing and insurance. Here are five things you should consider before investing in Ulips.

      Extra Costs: There are additional costs involved with Ulips such as existing governance charges, funds and investment charges, management charges, top-up costs, rider charges, changing fees, mortality costs and premium termination charges, among others. Not all insurance companies include all these charges in the premium cost. Hence, before contacting any insurance company, you must clarify all the charges associated with Ulips.

      Sum Assured: In the event of a misfortune, the insurer will pay the sum assured to the policyholder’s nominee. It's worth noting that the greater the sum assured, the higher the premium paid. It is important to go for an optimum sum assured that can cover all the needs of your family. Ideally, Ulip products with a mortality charge should be preferred, as they offer the benefit of the return of mortality premium in the event of the death of the policyholder.

      Asset Allocation of Funds: Be careful about the asset allocation of the funds in which the Ulip invests on your behalf. This must depend on your risk tolerance. While risk-averse policyholders can put their investments in debt funds, aggressive investors can opt for equities. One could also select a balanced approach by investing in a fund that offers a hybrid option, which is a mix of both equities and debt.

      Compare Before Buying: It is important to compare the Ulip you have chosen with others available in the market. Before zeroing on any particular one, you must analyse the funds the Ulip invests in, including their objectives and track records. Also, look at the past performance, though that should not be the only consideration.

      Insurer’s Credibility: Since Ulips are long-term investments, it is important to do a thorough scrutiny of the insurance provider’s authenticity and track record before making a purchase. It is also important to check the solvency standards of the insurance firms. As insurance firms are highly regulated, they have to maintain a set of solvency standards. The solvency ratio is a good measure of an insurer’s financial health as it assesses an organisation’s ability to fulfil long-term financial commitments.

      While there are a lot of Ulips available in the market, you must evaluate all the features of a plan before investing in one.

      Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No: 022 - 2288 2460, 022 - 2288 2470. Composite Corporate Agent License No.CA0113. Insurance is the subject matter of solicitation. ICICI Securities Ltd. does not underwrite the risk or act as an insurer. Insurance is the subject matter of the solicitation. The advertisement contains only an indication of the cover offered. For more details on risk factors, terms, conditions and exclusions, please read the sales brochure carefully before concluding a sale. ICICI Securities Ltd. is act as a distributor of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism.

    Weekend Market Read
    Which Mutual Fund Is Suitable For You
      • Mutual funds should be chosen according to the risk profile of the investor
      • Income and liquid funds can serve the needs of conservative investors
      • Semi-aggressive or moderate investors can choose hybrid funds
      • Aggressive investors should go for a combination of equity and sector funds

      There is a plethora of mutual fund schemes in the market and all of them serve different needs of different sets of investors, according to their risk profile. Here is a list of funds that are suitable for investors with different risk profiles.

      Conservative Investor

      The prime objective of a conservative investor is to protect capital. For this additional safety, they may be willing to settle for modest returns. Therefore, their investment universe is likely to be restricted to debt funds. Here are the funds that they can consider.

      Income fund for Returns: Typically, conservative investors put 70-80 per cent of their corpus in income funds and the balance in short-term funds. Since income funds invest primarily in corporate papers (highest-yielding papers in the market), they have the potential to yield the highest returns among debt funds in the long run. So, income funds serve the returns objective.

      Remember that some income funds try to squeeze out greater returns by investing in low-rated papers (credit rating of ‘A’ and below). A conservative investor should avoid them, as the chances of a default are higher. A default will erode your portfolio value as well as your capital.

      Liquid fund For liquidity: Liquidity should be provided for by investing in short-term funds like liquid funds and short-term plans. Because of their focus on shorter-tenure papers, short-term funds show greater stability in returns compared to, say, income funds.

      Semi-Aggressive or Moderate Investor

      The semi-aggressive investor seeks a mix of steady returns and capital appreciation, for which he is willing to take on moderate risks. Hence, though he maintains a bias towards debt in his portfolio, he diversifies into equity to boost his overall returns.

      Debt and equity combination: For such investors, hybrid funds work well as they offer the best of both the worlds—equity and debt. Those who are willing to do asset allocation on their own can invest in debt funds and equity funds separately. For the debt component, a mix of long- and short-term debt funds can be considered. For the equity portion, they can stay near the lower end of the equity risk ladder and allocate between index funds and actively managed diversified large-cap funds. For a new investor, hybrid equity funds could be a better starting point.

      Aggressive Investor

      The aggressive investor desires market-beating returns and is, therefore, overweight on equity. They are more interested in high capital appreciation rather than steady returns.

      Combination of equity funds: Among equity funds, a mix of conservative and aggressive schemes work for such investors. Under conservative schemes come diversified funds and index funds, which offer broad market exposures. Aggressive schemes, on the other hand, target a relatively narrower universe among stocks or follow an investment style that is inherently riskier. Among the current crop of schemes in the market, three categories stand out—small-cap, mid-cap and large-cap funds.

      Sector funds, which invest in a particular sector, can also be used. The first three types of funds give a broad-based exposure, which makes them less risky than sector funds, which restrict themselves to just a particular sector. An aggressive investor can invest a part of his corpus in sector funds, but only if he understands the sector.

      Conclusion

      The most important thing is to know your risk appetite. If you know your risk appetite, it will help you select the funds according to your risk profile. If you are not sure about your risk profile and need help to make a decision, you may refer to Lifey from ICICI Securities or other websites that offer similar risk profiling tools.

      Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

      Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. I-Sec does not assure that the fund's objective will be achieved. Please note. NAV of the schemes may go up or down depending upon the factors and forces affecting the securities markets. Information mentioned herein is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

      The client agrees and acknowledges that the LIFEY tool / facility provided by ICICI Securities are not intended to supply investment, financial, tax or legal advice. It is not investment advisory service and any observations concerning any security or investment advisory is not a recommendation to buy, sell or hold such investment or security or to make any other investment decisions. Client acknowledges and agree that any use of the services, any decisions made in reliance on the aforesaid services, including any trading or investment decisions or strategies, are made at your own risk. It is entirely client’s responsibility to assess the appropriateness, suitability, and practicality of the investment. The said services is just incidental to the distribution of mutual fund.

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