PrimeInvestor - Articles and Reports

Nifty 50: More bullishness ahead?
Stocks
B Krishnakumar

Nifty 50: More bullishness ahead?

The price action in the Nifty 50 index, and the broader markets in particular, have been extremely bullish. The overbought scenario in the short-term breadth indicator was resolved by a sideways consolidation in price. This is a major sign of strength indicating that prices could power higher. In a downtrend or a weak market environment, the overbought breadth would typically lead to a sharp price correction, which will in turn lead to a cool off in the breadth indicator.

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How are deposits, bonds and debt funds taxed?
Taxes
Pavithra Jaivant

How are deposits, bonds and debt funds taxed?

Deposits, bonds and debt funds are great ways to diversify one’s portfolio. But the taxation on these instruments can decide whether an option is attractive or unattractive on a post-tax basis. Taxation, though varies across instruments and can be quite complex. The fact that not all debt instruments are taxed in the same way compounds the decision making dilemma on which option to choose. This write-up will break down the taxation aspect of popular debt instruments for resident individuals.

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Prime Review: TN Power Finance and Infrastructure Fixed Deposit
Bonds & Deposits
Aarati Krishnan

Prime Review: TN Power Finance and Infrastructure Fixed Deposit

When interest rates on bank deposits hit rock-bottom in the last few years, the fixed deposit (FD) programme from Tamil Nadu Power Finance and Infrastructure Corporation (TNPFIC) turned quite a hit. This NBFC owned by the Tamil Nadu Government offers high interest rates of 7-8% on FDs and has a friendly online interface, making it very popular with fixed income seekers and seniors. We have received a number of queries from many of you, about this deposit.  

Premium article available only to subscribers.

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A consumer durables play gearing for a comeback
Stocks
N V Chandrachoodamani

Prime stock recommendation: A consumer durables play gearing for a comeback

Consumer durables, a key consumer category, bore the brunt of Covid as companies lost two business seasons in FY21 and FY22 to lockdowns and supply disruptions. As demand took a hit, the sector lost its sheen, especially white goods and small appliances, leaving investors disappointed over the last 2 years amid a soaring market.  

Premium article available only to subscribers.

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How to approach risky, but rewarding small caps
Categories
R Balakrishnan

How to approach risky, but rewarding small caps

Small caps are always alluring to the investor. Everyone knows that it is difficult to make quick money in large well-known and well-researched stocks. We all want to find that small gem which turns a lakh of rupees into crores. The most money is made in such cases when we can spot a company that will turn out to be a market-leading name in five to ten years. Today, the investor population has increased dramatically. Besides, information is available to everyone. This makes small cap investing both interesting and risky.

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When to use multi-asset allocation funds
Research Reports
Vidya Bala

When to use multi-asset allocation funds

Multi-asset allocation, by itself, is part of any portfolio building strategy. Both your portfolio’s return potential and its ability to contain downsides is determined by the asset allocation you choose. To this extent AMCS are trying to provide an all-in-one solution through a hybrid category of mutual funds called multi-asset allocation funds.

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Rakesh Jhunjhunwala - in the trail of a legend
Stocks
N V Chandrachoodamani

Rakesh Jhunjhunwala – in the trail of a legend

With an investment portfolio of $5 billion, Rakesh Jhunjhunwala (RKJ) has left a rich legacy behind him. While he started the journey with a modest capital that compounded over 3 decades, it is a record that may find it hard to be broken. In the words of his close aide Ramesh Damani, a proponent of compounding, it is over 50% CAGR in 35 years. 

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Prime Stock recommendation: A HOLD call on an auto stock

We are now moving the stock to a ‘hold’. That means it will no longer be in our buy list. This means you need not take further exposure to the stock. Do not sell it. Simply hold it. We will let you know if it is time to exit.

Premium article available only to subscribers.

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Consumer durables: On the comeback trail
Stocks
N V Chandrachoodamani

Consumer durables: On the comeback trail

Consumer durables is a category that stands between staples and lifestyle goods. This category has been hit on one hand by Covid-led lockdowns, and on the other by inflation eating into margins and hurting demand. The category has seen a more severe impact as it is neither buoyed by the non-discretionary nature of staples nor by the quick demand rebound that lifestyle consumption tends to see.

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6 ways to identify deposit scams
Bonds & Deposits
Aarati Krishnan

6 ways to identify deposit scams

Some folks still have a fatal fascination for ‘better-than-FD’ returns advertised by unregulated entities – whether it is cryptocurrency exchanges offering interest rates of 12-14% on staking one’s crypto holdings, or peer-to-peer lending platforms promising you a 14% return from becoming part of a lending club. Informal entities ranging from unregistered chit funds run to the street corner jeweller tempt you to ‘deposit’ money with them promising high returns. 

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Prime review: LIC’s Dhan Sanchay
Insurance
Bipin Ramachandran

Prime review: LIC’s Dhan Sanchay

LIC’s Dhan Sanchay offers a guaranteed income or a guaranteed lumpsum benefit, in return for either single or regular premium payments. It also provides life cover. This is a non-linked, non -participating, individual savings plan. This effectively means that the returns from this plan are not linked to the market or LIC’s own performance.

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Parag Parikh Flexi Cap – should you continue to invest?
Recommendations
Bhavana Acharya

Parag Parikh Flexi Cap – should you continue to invest?

Up until six months ago, Parag Parikh Flexi cap was an investor favourite. Its chart-topping performance and overseas investments served as the key attractions. These very same factors now appear to be doing the opposite, causing investors to worry over continuing investments. So, should you be concerned over Parag Parikh Flexi Cap’s performance? Is the restriction in investing abroad a game-changer for the fund? 

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