Quarterly review – changes in Prime Funds, our mutual fund recommendations

We are living in strange times. No, I am not talking of Covid-19. Your one-year returns of equity funds (across categories), at an average 31% between January to March 22, 2021, zoomed to an average 69% since March 23, 2021. In other words, 1-year returns suddenly doubled from March 23, 2021. If you recall, March 23 2020 was a market low. So, 1-year returns from March 23, 2021, have started looking abnormally high. 

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This has caused an aberration in the return charts of mutual funds. Funds that languished in the third and fourth quartile of performance charts are competing at the top now. Though this ‘high return effect’ is tapering off slowly, it can still send you wrong signals. You will have funds that tempt you to invest, with their sky-rocketing 1-year returns pushing even their 3-year returns. 

More importantly, this phenomenon is also showing some of the otherwise steady performers in bad light, possibly pushing you to exit them. Decisions made at this juncture can therefore go wrong. 

This does not mean you should not participate in the kind of rally that we are witnessing.  The current rally is driving some of the bottom-rung stocks up. That means there are individual stocks that are moving up steeply, not necessarily buttressed by any sector trend. In such cases, it is best that you pick individual stocks to play such momentum. In other words, stick to MFs for the long term and use such stocks as you may ‘discover’ for any tactical plays, if you really wish to. 

In debt, the period of low return continues to linger, frustrating many into high-risk products such as covered bonds or risky NCDs that we wrote about recently. We are trying to balance your need to have higher returns without excessive risks. More about it later. We just set the context for what to expect from us in this quarter’s review of our funds 😊 Needless to say, we are not going by the current fancied funds because they still fare poorly when we run our internal research methodology.

About Prime Funds

Prime Funds is our list of best mutual funds across equity, debt, and hybrid categories. We use Prime Ratings, our fund ratings, as a first filter and then use qualitative analysis to design our fund recommendations. Prime Funds is an enduring list of funds that you can use, and you will find a fund that meets any goal you’re looking to meet. 

If you are new to PrimeInvestor, you need to know the following about Prime Funds: 

Different categories: Prime Funds are separated into buckets, based on risk level in equity & hybrid funds, and timeframe in debt funds. Each of these draws from different SEBI-defined categories. We do not go only by Prime Ratings but look at other factors as well. Our reasoning for this is explained here.

Different styles: In Prime Funds, we’ve aimed at providing funds that follow different strategies for you to mix styles and diversify your portfolio with ease. The ‘Why this fund’ for each Prime Fund will brief its strategy, why we picked it, and how to use it in your portfolio.

Direct plans: We have specifically given the direct plans in Prime Funds. We have observed that even in top-quality funds, the regular plan’s expense ratio can be significantly higher than the direct plan. In such cases, the direct would be the better option to go for. Check our MF Review Tool (and not just our ratings page) to know if you can go for the regular plan as well. Our reasoning is explained here.

Review: Our aim in reviewing the Prime Funds list every quarter is to ensure that we don’t miss any good opportunities that are coming up and we are not holding on to funds that are slipping. When we remove funds from the Prime Funds list, we tell you exactly what to do if you have invested in these funds. Funds we remove do not immediately call for a sell – it is just that they have slipped in performance marginally or there are better alternatives now. Unless our review tool says such funds are a ‘sell’, you can hold them (refer to our article on when to sell funds.)

Using Prime Funds: You do not need to hold every Prime Fund nor add any new fund we introduce to the list. Unless it fits your overall portfolio/strategy, or there is something lacking, there is little need for you to go on adding funds. Our idea of covering them in detail through some of our weekly calls is to let you know the strategy, style, and suitability in different portfolios. It is not a specific call to buy right away, unless we mention it is.

Equity funds

As mentioned earlier, the current wild market upswing has not pushed us into making significant changes to our equity fund list. Yes, there has been underperformance in some of our recommended funds. But we prefer to watch, given the market conditions, and not act in haste. The reasons for the underperformance can broadly be classified as follows:

  • A strategy/style is underperforming in the current market and impacting schemes across an AMC.
  • The funds did not fall steeply in the market hit of March 2020 and therefore do not have a low base to show high returns now. 
  • Many of the mid and small-cap stocks that have zoomed in recent months are part of the mid or small cap index, but are little held by mid and small-cap funds. This has therefore caused significant underperformance in the funds.

Let us look at some of the Prime Funds that we are watching for underperformance and their reason for lagging their benchmarks.

Equity funds – divergence from index

Equity – Moderate: Kotak Flexicap’s performance has lagged the Nifty 500 TRI from about August last year. The fund has marginally underperformed the index before. This time, though, the gap between the fund and the index has been higher. This lag can be explained by the nature of the market movement in this rally as well as stock choices that the fund made. Top stocks in the fund’s portfolio, though quality names, have not been among those that soared high.

So, while Kotak Flexicap did benefit from the high returns clocked by the likes of State Bank of India, Infosys, or ICICI Bank, it was also weighed down by sedate returns of HDFC Bank, Hindustan Unilever, Petronet LNG, L&T, and TCS. The fund has begun to narrow the gap by which it trails the Nifty 500 TRI. We’re watching the fund for continued improvement in performance before taking a call on the same.

Funds from Axis AMC, such as Axis Bluechip (and other funds not in our list) have seen slower performance as their growth-focused strategy has underperformed. A similar story panned out in Mirae Asset Large Cap as well. At this juncture, we are not too worried about these downswings. 

Equity – Aggressive:  In the mid and small cap space, there is a significant divergence between funds and their indices, with the former undershooting indices by a mile. Such underperformance is in the range of 10-25 percentage points (on the 1-year return) since March end. Funds such as DSP Midcap, Axis Small Cap and even the top returning SBI Small cap have underperformed. This kind of divergence (underperformance) from the index is best ignored at this stage as the nature of stocks that have rallied in the mid and small cap space are not the ones that would enter the filters of mid and small-cap funds, either due to liquidity, quality, or governance issues.

Equity funds – additions

We have made minimal additions to our recommended funds list, for the reasons mentioned above. The funds we’ve introduced are as follows.

Equity – Passive funds

We have not added new funds in the moderate or aggressive space. We have instead added one index fund – HDFC Index Fund – Sensex Plan to our ‘Equity – Passive funds’ list. This is more an effort to complete the passive large-cap space. Some of you have asked us why Sensex funds are not available and whether Nifty outperforms Sensex or vice versa. We’ve included the index now.

As far as the second question goes, the truth is this – past data shows that it does not matter one way or the other if your holding is five years or more. The Nifty has beaten the Sensex by an average 0.15 percentage points if you take 5-year rolling returns for the past 15 years. However, if you take the last 8 years, the same 5-year returns of Nifty underperformed the Sensex by 0.3%. 

Hence, to keep it simple, we had stuck to one index, the Nifty 50. However, for those who like the compact portfolio (30 instead of 50) and therefore higher weight to individual stocks in the Sensex, we are providing an option that has low tracking error and reasonable expense ratio. We are neutral to whichever index you opt for. You can go for either.

Strategy/thematic funds

We note that our addition of a commodities fund worked well. Now, we are adding one more cyclical sector – infrastructure – through Invesco India Infrastructure. Currently, IDFC Infrastructure is an outperformer in this space. However, we have chosen Invesco India Infrastructure for two reasons.

One, while the IDFC fund has outperformed due to its overweight position in construction and allied activities, we prefer the diversified exposure in Invesco as its portfolio is more spread out over construction as well as engineering and capital goods. It does not hold banking & finance. We prefer this diversification at this stage to capitalize on capex stories outside infra and prefer an infra fund without banking, given that it is available in all other fund categories. 

Two, the Invesco fund has been a highly consistent performer beating the infrastructure category average 85% of the times when 1-year returns were rolled daily for the past 3 years. This is significantly higher than the just 14% outperformance proportion of peers by IDFC Infrastructure. If you decide to go with the Invesco fund, keep exposure limited to under 5%. You can invest in lumpsum and use market dips to accumulate. Otherwise use short SIPs of 6-9 months.

Debt funds

In the debt funds space, neither have funds managed great accrual returns nor has any duration played out constructively. Even as the rising inflation has put pressure on yields, RBI operations to keep rates under check have resulted in a lesser-than-expected pace in yield rise. To this extent, your ultra-short or short or corporate bond funds have not seen a sharp climb in their yield to maturity (YTM) resulting in returns languishing. 

Debt funds - additions

We have introduced a couple of funds to improve your return prospects. We have not removed any fund.

Debt – Medium term 3-5 years

We introduce ICICI Pru Corporate Bond fund – a consistent fund at par in performance with ABSL Corporate Bond and Kotak Corporate Bond. This fund too can go between 1-4 years in average maturity and will hold top quality bonds as required by SEBI for this category. While we already have 3 funds in this space, we introduced this one primarily because its average maturity is marginally higher than the other 2 mentioned above and closer to HDFC Corporate Bond fund but with less volatility. 

With this addition, we would have corporate bond funds across the maturity curve. If you were to hold more than 1 corporate bond fund, you could use a combination of ABSL Corporate Bond or Kotak Corporate Bond (for lower duration) along with HDFC Corporate Bond or ICICI Pru Corporate Bond.

Debt – Long term – above 5 years

For the first time since our platform launch, when the credit environment was not conducive, we are now cautiously approaching the credit space for those who seek additional returns. Here again, our aim is to keep risk at bay, even if this is a credit risk space. 

Here, the contenders were ICICI Pru Credit Risk and HDFC Credit Risk. Between these two, we preferred ICICI Pru Credit Risk  for 2 reasons: one, its YTM is higher without significantly higher credit exposure, providing better prospects. Two, its worst returns (over 1-year periods for the last 4 years) were 5.86% as opposed to 3.9% for the HDFC Fund suggesting better downside risk management. ICICI Credit’s risk-adjusted return is also superior, hinting at lower volatility. 

Please note that this is not a fund for those who are looking for FD substitutes or for low-risk debt investments. This is a high-risk fund and any of the credit issues of 2018-20 can play out in this fund as well. Hence, having a very long-term horizon and ability to take hits is an absolute must. Use it only to buttress returns from the debt component of your portfolio, to tide over low-return times such as the case currently. Exposure should be curtailed to under 10% of your portfolio. Else, please stick to our corporate bond recommendations. (Kindly don’t read too much into the choice of 2 funds from the same fund house. It is merely coincidental 😊)

You can view the full list of Prime Funds here.

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28 thoughts on “Quarterly review – changes in Prime Funds, our mutual fund recommendations”

  1. Dear Vidya
    Motilal Oswal Nifty Midcap 150 index fund is a prime recommended fund under passive strategy. The fund has underperformed its index by 5% for one year. Isn’t the underperformance significant for an index fund? The TER is reasonable at 0.2%.
    Why does PI still retain it as a recommended fund? Is it for want of competition in index funds? Where and how did they attain the underperformance (impact cost?)?

    1. The differential is not 5%. On a 1 year return basis, the maximum the differential has been against the Nifty Midcap 150 TRI is 3.2%. The differential has since narrowed and is now 2.3%. On a daily basis, there were a series of days earlier this year where the fund lagged the index by a margin of 0.06 to 0.13%, that could have led to the return lag. While we cannot pinpoint the exact reason, it is inevitable that in the mid-cap space where there will be liquidity issues, there may be an impact on performance sometimes. – thanks, Bhavana

      1. Dear Bhavana, thanks for your inputs. As per VRO, the one year trailing return of the direct scheme is 59.34%. Whereas, the return from S&P BSE 150 Midcap TRI is 64.43%. That is a 5% underperformance.

        1. An index fund’s performance can be compared only to the index it’s meant to track. The BSE Midcap 150 and Nifty Midcap 150 are not the same index. They are constructed differently. There’s no fund tracking the BSE Midcap index. This apart, it’s best not to be influenced only by current performance. The BSE Midcap 150 is a newer index, and data available starts from end-2017 only. There’s no way to know how good the index is as an investment option. – thanks, Bhavana

          1. Thanks Bhavana, that explains. I could not get one year index returns from PrimeInvestor site under the Motilal Midcap 150 scheme particulars (shows as ‘N/A’). So I had to go to VRO which uses only S&P BSE index.

  2. Mohanasundaram R

    Hello Ms. Vidya \ Ms. Bhavana,
    PGIM funds (mainly the flexicap, then the midcap) seem to be doing very well. Why are their AUM so small? Is it safe to add them to one’s portfolio?
    Thanks,
    Mohan

  3. Hi,
    Can you’ll also publish the risk metrics being using for fund reviews and selection? – Assuming you’ll are using sharpe, downside/upside capture etc? Will help in fund comparison.

  4. Just like you have mentioned on possible gain in infra funds , other theme that looks promising in future is EV space. Do we have fund that focuses in this theme. What is prime investors take on this theme and recommendation.

    1. There isn’t fund, given the limited opportunities at this point. Best to play through stocks and we have. thanks, Vidya

  5. Dear PI team
    Some thing is confusing to me which needs clarification. Recently updated (July 21) gives me the list of several funds, I will take Large & Midcap for example, rated 4* and above which gave me 5 funds. When I want to invest in this category , the “prime rating” gives 4.5 for both Edelweiss and Invesco funds. However, when I went to fund review tool, they both are under HOLD, meaning fresh purchase is not recommended. Same goes for Kotak Opps & Tata as well which are 4* rated. So what is the use of best rating but if we the recommendation is HOLD? This is a point to be clarified and perhaps you might even consider adding a “current recommendation” column in the prime list which will save a lot of time.

    1. Bhavana Acharya

      Not sure what you mean by ‘current recommendation’…in the ratings page, if you’re logged in, you will see the call we have given on a fund in the last column called Buy/Sell/Hold. The scheme details page also has the recommendation. The reason behind the call will be available in the MF Review Tool.

      As far as ratings goes – you should use it to see where your fund’s performance stands compared to its peers. You will know whether it has been performing well or whether it is delivering lower than it ideally should be for you. It’s also a starting point for picking funds to invest in, but it cannot be the sole metric. There are a number of aspects that ratings do not cover. We have explained it in This article: https://www.primeinvestor.in/mutual-fund-ratings-not-a-recommendation-to-buy/ Hope this clarifies. – thanks, Bhavana

      1. Thanks for clarification.
        I am taking about the PDF download page where only rating is available. If I had to only go with the ratings, I would straight away go to with the “top rated” funds. Th question I was referring to is: A fund top-rated in the PDF file named “Top-funds-July-21” is not a straight forward buy, but we have to go inside the tools page and check if it suits for investment as on date. Then it may not be 5* rated it could well be 3* rated in the rated funds list. Hope I made my query clear. “Current recommendation” is a suggestion to be added to downloadable funds list which is revised quarterly basis.

        1. Bhavana Acharya

          Understood the point, thank you. The Top Funds PDF was originally meant for trial users and we didn’t give the review call there because it is a premium feature. We’ll look at introducing a ratings Excel download feature instead of just the top ratings pdf for subscribers, so you can get comprehensive data. – regards, Bhavana

          1. Thank you, I think thats a good idea will save a lot of time for subscribers like me.

    2. Where can I find the complete list of prime recommend funds category wise and not as moderate and agressive equity type?

      Regards.

      1. We don’t split the recommendations based on each fund’s category because of overlaps in fund categories. We go by a fund’s suitability for a particular purpose. We therefore do not have Prime Funds recommended in every fund category, and do not build portfolios based on category. Our reasoning is explained in detail here: https://www.primeinvestor.in/prime-funds-our-philosophy/. If you want to know which category a Prime Fund belongs to, please click the fund name and check the scheme details page. – thanks, Bhavana.

  6. Hi Team, Thanks for the article as always. An observation on Invesco India Infra fund..AUM is only 179 crores..Is this not very low ? Thanks

    1. Bhavana Acharya

      It is low, but it is not a concern. Sector/thematic funds generally tend to have lower AUMs, and Invesco is an AMC that tends to fly under the radar in most categories. – Bhavana

  7. How do we know whether and when the Prime Funds list is updated? It just says ‘updated quarterly’ without mentioning date. Can you please add the date of review at the top?

    1. HellO Sir, mentioning the date is not the issue but let me try and understand why it is needed. Our Prime funds is a list of funds one can ‘buy’ today. We have stated that. If there is any change, it is alerted. And even if you missed the alert, our review tool will always let you know whether a particular fund is a buy/hold or sell. Unlike stocks, funds’ entry or exit point is not relevant imho. In stocks, for eg, we clearly give the date of call and price. On the other hand, in my experience, when we mention the date, many investors tend to ask whether the all is valid now since it was given 3 months ago. Should that matter? Just trying to understand. thanks, Vidya

      1. Hi Vidya, For e.g., today I don’t know whether what I see on your site is still last quarter update or whether I am seeing your June quarter latest update. Same situation tomorrow and day after and next week. Isn’t it? Most of the times the change is not obvious since very few recommendations change. Credit goes to S/V/B/A for maintaining consistency!
        We don’t check the list only when we have to buy a fund. Every quarter, after your update, I check them against my holding and decide how my fund managers are performing 😀. So, I want to know when can I trigger that quarterly check. Keep up with the good work.

        1. Hello Sir, got it. We will work to make it clear. Thanks again for taking time to explain. Vidya

  8. Excellent quarterly review, the follow up of the existing recommendation is something which really adds value to the services. Really appreciate all your efforts. I was wondering if it is a bit too late in the day to invest in Invesco India Infrastructure fund??

    1. Bhavana Acharya

      Yes, the theme has run up a good bit. But we’ve added it because if economic growth has take root, it will show up in the infra theme. The government has also earmarked good spending on infra, and as a theme it can cover several segments. So it is a cyclical, but still somewhat longer-term play. – thanks, Bhavana

  9. Hi, Are you recommending investing in the invesco fund at current markets as a tactical call ? Investment horizon will be ?
    Missed the Tata digital fund.. is it a good time to add this fund now ?

    1. Bhavana Acharya

      No, it is not a very tactical call. It can have a relatively longer run if the growth and government spending story is to play out, and if markets continue to pay attention to cyclical, lower-valued plays. Please see the Why this fund on the Prime Funds page to know more. Tata Digital – yes, you can, it remains part of our recommended list. – thanks, Bhavana

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    • Purchase or receive securities of the issuer before the issuer's initial public offering, if the issuer is principally engaged in the same types of business as companies that the research analyst follows or recommends.

Disclosures with respect to Research and Recommendations Services:

  1. The RA or its directors or any of its officer/employee does not trade in securities which are subject matter of recommendation.
  2. The RA, or any of its officers, directors, employees, or subsidiaries have not received any compensation/ benefits whether monetary or in kind, from the AMC, company, government, bank or any other product manufacturer or third party, whose products are the subject of its Research Services or investment information.
  3. The Research Analysts who have prepared the research reports that form part of the Research Services (“Research Analyst”) certify that all of the views expressed in the research report accurately reflect their views about the subject company or subject security.
  4. The RA or directors or employees or Research Analyst certify that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
  5. The Research Analyst has not served as director, officer or employee in the subject company, AMC or insurance company of the mutual fund or insurance policy that is the subject of this report, or company whose bonds, NCDs, fixed deposits or other savings products that is the subject of this report.
  6. The Research Analyst or their relatives do not have any known direct or indirect material conflict of interest including long/short positions in the subject company.
  7. The Research Analyst may hold investments in the stocks, mutual fund schemes, bonds, fixed deposits, insurance policies, or other products that are the subject of the recommendations provided as part of the Research Services. The Research Analyst certifies that they will not act in a manner contrary to their views on these securities except in the event of significant news or event or change in personal financial circumstances and without formal approval from the directors of PrimeInvestor Financial Research Pvt. Ltd. or the compliance officer.
  8. There are no actual or potential conflicts of interest arising from any connection to or association with any issuer of products/ securities, including any material information or facts that might compromise its objectivity or independence in the carrying on of the Research Services. Such conflict of interest shall be disclosed to the client as and when they arise.
  9. The RA or its directors or its employee or its associates have not managed or co-managed the public offering of any company. The RA or its directors or its employee or its associates have not received any compensation for investment banking or merchant banking of brokerage services from the subject company. The RA or its directors or its employee or its associates have not received any compensation for products or services other than above from the subject company. The RA or its directors or its employee or its associates have not received any compensation or other benefits from the Subject Company or 3rd party in connection with the research report/ recommendation.
  10. The subject company of its research recommendations was not a client of the RA or its directors or its employee or its associates during twelve months preceding the date of recommendation services provided.
  11. The RA or its directors or its employee or its associates has not served as an officer, director or employee of the subject company. Research Analysts has not been engaged in market making activity of the subject company.

PrimeInvestor Financial Research Pvt. Ltd., its Associates, the Research Analysts or their relatives holds ownership of 1% or more, in respect of the said issuer company(ies)? – NO

8. Termination of service and refund of fees:

The RA may terminate or suspend rendering of Research Services to the client in the following circumstances:

  1. On account of suspension/cancellation of registration of RA by SEBI. In case of suspension of certificate of registration of the RA for more than 60 (sixty) days or cancellation of the RA registration, RA shall refund the fees, on a pro rata basis for the period from the effective date of cancellation/ suspension to end of the client’s subscription period.
  2. The RA voluntarily chooses to terminate its Research Service. In the event of such termination of the Research Service, the RA shall refund the fees, on a pro rata basis for the period from the date of such termination of research service to end of the client’s subscription period.

9. Grievance redressal and dispute resolution:

Any grievance related to:

  1. nonreceipt of research report, or
  2. missing pages or inability to download the entire report, or
  3. any other deficiency in the research services provided by RA

shall be escalated promptly by the client to the person/employee designated by RA, in this behalf as under:

Name: Bhavana Acharya
Designation: Director & Compliance Officer, PrimeInvestor Financial Research Pvt Ltd
Email: [email protected]

The RA shall be responsible to resolve grievances within 7 (seven) business working days or such timelines as may be specified by SEBI under the RA Regulations.

RA shall redress grievances of the client in a timely and transparent manner. Any dispute between the RA and his client may be resolved through arbitration or through any other modes or mechanism as specified by SEBI from time to time.

If the client is not satisfied with the response of the RA, he/she can lodge his/her grievances with SEBI at scores.sebi.gov.in. Alternatively, the client may also write to any of the offices of SEBI. For any queries, feedback or assistance, please contact SEBI Office on Toll Free Helpline at 1800 22 7575 / 1800 266 7575

Details on grievances are available on the Website as follows: https://primeinvestor.in/ra-grievance/

10. Additional clauses:

Scope of the Research Service: The Research Services will be limited to providing independent research recommendation and shall not be involved in any advisory or portfolio allocation services. The Research Services are not meant to be tailor-made or customized solutions that specifically apply to each client based on his/her risk profile.

The RA never guarantees the returns on the recommendation provided. Investor shall take note that investment/trading in stocks/Index or other securities is always subject to market risk. Past performance is never a guarantee of same future results. The RA shall not be responsible for any loss to the Investors.

This service is not directed for access or use by anyone in a country, especially the USA, Canada or the European Union countries, where such use or access is unlawful or which may subject PrimeInvestor Financial Research Pvt Ltd or its affiliates to any registration or licensing requirement.

The Research Service, including recommendations, research reports, updates, and other information will be accessible through the RA’s website https://primeinvestor.in only. Such recommendations and updates will not be provided over phone calls.

Fees: Our current fee structure, the term and duration of our subscription for our Research Service, can be viewed on our website: https://primeinvestor.in/prime-pricing. Eligibility for any discounts is ascertained at the time the client subscribes. Any such discount and its tenure shall be at the discretion of the RA.

Subscription and access to content services fall under the purview of Goods and Services Tax (GST) as per the current indirect taxation policy, Government of India. Unless otherwise indicated, prices stated on our website are exclusive of applicable GST, any applicable value added tax (VAT) or other sales taxes. We are a business-to-consumer (B2C) service provider and we do not commit to provide any input tax credit on GST charged on subscription to our Research Service.

We may change the Subscription Fees and charges then in effect, or add new fees or charges which will take effect at the end of the client’s subscription period, by giving notice in advance and an opportunity to cancel renewal of the subscription.

Subscription Access & Renewal: Subscription to the Website commences immediately on the realisation of payment of the Subscription Fees. Subscriptions are set to be renewed automatically at the end of the subscription period.

Unless the client notifies us before the end of his/her subscription period, or the client cancels the auto-renewal mandate within the period specified by law, that the client does not wish to renew his/her subscription, the client’s subscription will renew for the period defined by the client’s subscription plan. We will charge the subscription using the same payment method that you previously used.

Although the client may notify to us his/her intention to his/her subscription, such notice will only take effect at the end of his/her then current subscription period, and he/she will not receive a refund other than as set out under Clause 8 in these Terms.

The client may notify us of his/her wish to cancel his/her subscription by sending an email to [email protected]. The client must provide at least 5 business days advance notice for this to be implemented.

Refunds: There can be no cancellation and refund of subscription fee paid once the subscription is active, other than as stated in Clause 8 of these Terms. If the client is entitled to a refund as specified under Clause 8 of these Terms, the RA will credit that refund to the card or other payment method used by the client to submit payment, unless it has expired - in which case the RA will contact the client to proceed with the refund. If we do issue a refund or credit due to circumstances outside the obligations specified under Clause 8, we are under no obligation to issue the same or a similar refund in the future.

General disclaimers: The recommendations made herein in the Research Services are expression of views and/or opinions and should not be deemed or construed to be advice for the purpose of purchase or sale of any security, nor a solicitation or offering on any investment/ trading opportunity on behalf of the company, AMC, insurance company, or issuer of security referred to herein.

The content and research reports generated by the RA does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities.

The information/ opinion/ views mentioned in research reports or by the RA are not meant to serve as a professional guide to the client or recipients of this Report. The research report, recommendation, or any other content published by the RA do not assure or guarantee any minimum or fixed returns to the client or recipients of the reports/ recommendations/ content.

Use of this information is at the client’s own risk. The client must make his/ her own investment decisions based on his/her specific investment objective and financial position and using such independent advisors as he/she believes necessary. The services rendered by the RA are on a best-effort basis. All information in the content or research report of the RA is provided on an as is basis. Information is believed to be reliable but the RA does not warrant its completeness or accuracy and expressly disclaim all warranties and conditions of any kind, whether express or implied.

While due care has been taken to ensure that the disclosures, information, and opinions given are fair and reasonable, PrimeInvestor Financial Research Pvt Ltd and/or none of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information/ opinions/ views contained in the research report and recommendations that form part of the Research Service, and/or mails, social media or notifications issued by PrimeInvestor Financial Research Pvt Ltd or any other agency appointed/authorised by PrimeInvestor Financial Research Pvt Ltd. Returns and performance figures mentioned in the research report represent past performance and should not be constituted to be future returns or guaranteed returns.

Any agreements, transactions or other arrangements made between the client and any third party named on (or linked to from) the Website are at your own responsibility and entered into at your own risk. Any information that you receive via the Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. Market price information may be rounded up/down and therefore may not be entirely accurate.

The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research Services before onboarding.

History, present business and background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services.

Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made thereunder against the Research Analyst relating to Research Analyst services.

Details of the RA's associates: No associates.

Usage of Website Content: This Website is controlled and operated by the RA. All material, including research reports, recommendations, portfolios, ratings, lists of financial products, illustrations, statements, opinions, views, photographs, products, images, artwork, designs, text, graphics, logos, button icons, images, audio and video clips and software (collectively, “Content”) are protected by copyrights, trademarks and other intellectual property rights that are owned and controlled by the RA or by other parties that have licensed their material to us.

Except where otherwise agreed in writing with the RA, material on the Website is solely for the client’s personal, non-commercial use. Except as provided below, the client must not copy, reproduce, republish, upload, post, transmit or distribute such material in any way, including by e-mail or other electronic means and whether directly or indirectly and the client must not assist any other person to do so.

Without the prior written consent of the RA, modification of the materials, use of the materials on any other web site or networked computer environment or use of the materials for any purpose other than personal, non-commercial use is a violation of the copyrights, trademarks and other proprietary rights, and is prohibited. Any use for which the client receives any remuneration, whether in money or otherwise, is a commercial use for the purposes of these Terms.

The client may occasionally distribute a copy of a research report, or a portion of the same, from the Website in non-electronic form to a few individuals without charge, provided the client includes all copyright and other proprietary rights notices in the same form in which the notices appear, original source attribution, and the phrase “Used with permission from PrimeInvestor Financial Research Pvt. Ltd.”

While the client may occasionally download and store research reports or information from the Website for his/her personal use, he/she may not otherwise provide others with access to the same. The foregoing does not apply to any sharing functionality we provide through the Website that expressly allows the client to share Content or links to Content with others. In addition, the client may not use Content he/she has downloaded for personal use to develop or operate an automated trading system or for data or text mining.

The client agrees not to rearrange or modify the Content available through the Website. The client agrees not to display, post, frame, or scrape the Content for use on another website, app, blog, product or service, except as otherwise expressly permitted by these Terms. You agree not to create any derivative work based on or containing the research products and Content. The framing or scraping of or in-line linking to the Services or any Content contained thereon and/or the use of webcrawler, spidering or other automated means to access, copy, index, process and/or store any Content made available on or through the Services other than as expressly authorized by us is prohibited.

The client further agrees to abide by exclusionary protocols (e.g., Robots.txt, Automated Content Access Protocol (ACAP), etc.) that may be used in connection with the Research Services. The client may not access parts of the Research Services to which he/she is not authorized, or attempt to circumvent any restrictions imposed on your use or access of the Services.

As a general rule, the client may not use the Content, including without limitation, any Content made available through one of our RSS Feeds, in any commercial product or service, without our express written consent.

The client may not create apps, extensions, or other products and services that use our Content without our permission. The client may not aggregate or otherwise use our Content in a manner that could reasonably serve as a substitute for a subscription to the Website.

The client may not access or view the Services with the use of any scripts, extensions, or programs that alter the way the Services are displayed, rendered, or transmitted to you without our written consent.

The client agrees not to use the Services for any unlawful purpose. We reserve the right to terminate or restrict the client's access to the Website if, in our opinion, the client's use of the Services may violate any laws, regulations or rulings, infringe upon another person's rights or violate these Terms.

Prohibited content: The Website includes comments sections, blogs and other interactive features that allow interaction among clients and between clients and the RA. We call the information posted by or contributed by users “Contributed Content.” In the course of availing of the Research Services or uploading any post or comment on the Website, the client shall not post any Contributed Content that (i) contains nude, semi-nude, sexually suggestive photos, (ii) tends or is likely to abuse, harass, threaten, impersonate or intimidate other users of the Website and/or Research Services, (iii) is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely to use or have access to the Website and/or Services, or (iv) otherwise violates, is prohibited or restricted by applicable law, rule or regulation, is offensive or illegal or violates the rights of, harms or threatens the safety of other users of the Website and/or Services (collectively “Prohibited Content”).

We reserve the right to cease to provide the client with the Research Services or access to the Website, or terminate your subscription, with immediate effect and without notice and liability, for violating these Terms, applicable law, rules or regulations and reserves the right to remove Prohibited Content which is in violation of these Terms, or is otherwise abusive, illegal or disruptive. The determination of whether any content constitutes Prohibited Content, violates these Terms, or is otherwise abusive illegal or disruptive, is subject to the sole determination of the Firm.

Changes to Research Services: We are constantly endeavouring to improve the quality of Research Services provided to our clients. Due to this, the form and nature of the Research Services provided may change from time to time without any prior notice to the client. We reserve the right to introduce and initiate new features, functionalities, components to the Website and/or Research Services and/or change, alter, modify, or discontinue existing ones without any prior notice to the client.

Warranty and liability disclaimer: The Website, Research Services, and all the materials and services, included on or otherwise made available to the client through this Website is provided by the RA on an “as is” and “as available” basis without any representation or warranties, express or implied except otherwise specified in writing. Without prejudice to the foregoing paragraph, the RA does not warrant that:

  • This Website and/or Research Services will be constantly available, or available at all;
  • The information on this Website or provided through the Research Services is complete, true, accurate or not misleading; or
  • The quality of any products, services, information, or other material that you obtain through the Website or Services will meet your expectations.

The RA, to the fullest extent permitted by law, disclaims all warranties, whether express or implied, including the warranty of merchantability, fitness for particular purpose and non-infringement. The RA makes no warranties about the accuracy, reliability, completeness, or timeliness of the Website, Research Services, Content, Contributed Content, Services, software, text, graphics and links.

The RA does not warrant that this Website, Research Services, information, content, materials, or any other material included on or otherwise made available to you through this Website, their servers, or electronic communication sent by the RA are free of viruses or other harmful components.

Nothing on this Website constitutes, or is meant to constitute, advice of any kind.

Indemnification: The client:

  1. Represents, warrants and covenants that no materials of any kind provided by him/her will:
    1. Violate, plagiarise, or infringe upon the rights of any third party, including copyright, trademark, privacy or other personal or proprietary rights; or
    2. Contain libellous, Prohibited Content or other unlawful material;
  2. Hereby agree to indemnify, defend and hold harmless the RA and all of the RA’s officers, directors, owners, agents, customers/clients, information providers, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable advocate’s fees, incurred by the Indemnified Parties in connection with any claim arising out of any breach by the client of these Terms or the foregoing representations, warranties and covenants. The client shall cooperate as fully as reasonably required in the defence of any such claim. The RA reserves the right, at its own expense, to assume the exclusive defence and control of any matter subject to indemnification by the client.

Applicable law: This Website, including the Content and Contributed Content and information contained herein, and the provision of Research Services shall be governed by the Securities and Exchange Board of India, laws of the Republic of India and the courts of Chennai, India which shall retain exclusive jurisdiction to entertain any proceedings in relation to any disputes arising out of the same. As such, the laws of India shall govern any transaction completed using this Website.

Information gathered and tracked: Information submitted or collected on the Website or pursuant to the use of the Services is stored in a database. Specifically, we store the username, name, e-mail address, contact number, as submitted or collected on our Website or through the provision of the Research Services. We may use such information to send out occasional promotional materials, including alerts on new Services available, or other promotional and marketing material relating to our clients and customers.

In accordance with the Information Technology Act 2000, the name and the details of the Grievance Officer at PrimeInvestor is provided below:

Mr. Srikanth Meenakshi
PrimeInvestor Financial Research Pvt. Ltd., Registered office: 659, 4th Avenue, D-Sector, Anna Nagar Western Extension, Chennai 600 101.
Email: [email protected]

11. Mandatory notice:

Clients shall be requested to go through Do’s and Don’ts while dealing with RA as specified in SEBI master circular no. SEBI/HO/MIRSD-POD-1/P/CIR/2024/49 dated May 21, 2024 or as may be specified by SEBI from time to time.

12. Optional Centralised Fee Collection Mechanism:

SEBI has operationalized a centralized fee collection mechanism for IA and RA. Under this mechanism, clients shall pay fees to IAs/RAs through a designated platform/portal administered by a recognized Administration and Supervision body. This is an optional mechanism for the registered entities. At this time, PrimeInvestor has opted out of this fee collection mechanism. Therefore, all subscription payments for the Research Services will be through the modes as specified in Clause 5 of these Terms.

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