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Business Standard
22-05-2025
- Business
- Business Standard
SCSS vs NSC vs Debt Funds: Which fixed-income option is the best in 2025?
When it comes to generating stable, tax-efficient returns, investors in India often find themselves torn between traditional savings instruments like the Senior Citizens' Savings Scheme (SCSS) and the National Savings Certificate (NSC), or newer, more market-linked options like debt mutual funds. With interest rates, tax rules, and inflation all evolving, how do these options compare today? More importantly, which one should you pick based on your needs? The Contenders: What are they? Fixed-rate small saving schemes vs debt mutual funds. Source: Value Research 1. SCSS (Senior Citizens' Savings Scheme) For: Individuals aged 60 and above Interest Rate (April–June 2025): 8.2% p.a. (paid quarterly) Tenure: 5 years (extendable by 3 years) Tax Benefits: Eligible for Section 80C deduction (up to Rs 1.5 lakh) Interest is taxable, but TDS is applicable if interest exceeds Rs 50,000/year Best for: Retirees seeking regular income with government guarantee 2. NSC (National Savings Certificate) For: Any Indian citizen Interest Rate (April–June 2025): 7.7% p.a. (compounded annually, paid at maturity) Tenure: 5 years Tax Benefits: Principal qualifies for Section 80C Interest is taxable, but reinvested interest (except final year) also qualifies for Section 80C Best for: Conservative investors with a 5-year horizon, who don't need regular income 3. Debt Mutual Funds For: Investors of all ages Returns: 6–8% on average, can be higher/lower depending on type Taxation (Post-2023 rules): Gains taxed at slab rate (no LTCG benefit) No Section 80C benefit Indexation benefit abolished for debt funds Best for: Investors seeking liquidity and diversification, with some risk tolerance Comparative Snapshot Which one should you choose? For Senior Citizens: Value Research recommends SCSS Why: It offers high assured returns and quarterly payouts, ideal for retirees needing regular income. Example: Mrs. Rani, 65, invests Rs 15 lakh in SCSS. She earns Rs 30,750 every quarter, providing her with predictable income while her capital remains safe. For Salaried Taxpayers Saving for 5 Years: Choose: NSC Why: If you want a fixed return and tax savings under 80C but don't need liquidity, NSC fits the bill. Example: Sanjay, 35, wants a tax-saving investment but already maxes out EPF and PPF. He invests ₹1.5 lakh in NSC. In 5 years, he gets back ₹2.2 lakh, earning steady compounded returns without taking any market risk. For Working Professionals with Moderate Risk Appetite: Choose: Debt Mutual Funds Why: If you value liquidity and want to diversify with dynamic returns, debt funds (like low duration, short-term, or corporate bond funds) are suitable. Example: Priya, 40, keeps ₹5 lakh in a corporate bond fund yielding 7.2%. She holds it for 2 years and exits without penalty when she needs the money for her child's school admission. Caution: Tax rules have changed Post-April 2023, debt funds lost their long-term capital gains (LTCG) tax benefit and indexation advantage. Now, all gains — even after 3 years — are taxed as per slab rate. This reduces their edge over traditional instruments, especially for those in the highest tax bracket (30%). Tip: Tax-aware investors in higher brackets should lean toward SCSS or NSC unless they need liquidity. There's no one-size-fits-all answer. Your life stage, income needs, tax bracket, and risk appetite should drive the decision. As per Value Research:
Time of India
22-05-2025
- Business
- Time of India
MF Tracker: Can this mega largecap fund add stability to your portfolio in volatile market?
Live Events Fund manager comment on performance Experts take on performance With the market being volatile and experts are recommending large cap funds for investment of which one fund is ICICI Prudential Bluechip Fund . The fund is the largest fund in the category and had an AUM of Rs 68,033 crore as on April 30, on May 23, 2008, the large cap fund is given five star rating by ValueResearch and on trailing returns, the scheme has outperformed its benchmark and category average in the last six months, nine months, one-,three-,five years. On the other hand, it has outperformed against its benchmark and underperformed the category average in the last three large cap fund offered 0.66% return in the last nine months against a loss of 1.61% by the benchmark (NIFTY 100 - TRI) and a loss of 2.02% as the category average. In the last one year, it offered 10.38% against 8.51% by the benchmark and 8.04% as the category the last three years, the scheme gave 20.74% compared to 16.53% by the benchmark and 17.25% as the category average. The scheme in the last five years offered 26.07% against 23.56% by the benchmark and 22.40% as the category the basis of daily rolling return in the last five years, the scheme has offered 14.55% return and based on the same parameter, in the last three years, the scheme gave 19.47% return.'The success of ICICI Prudential Bluechip Fund can be attributed to the disciplined approach we follow in portfolio construction. Our primary focus is on avoiding significant mistakes—specifically, steering clear of stocks that could land in the bottom third of the performance curve,' commented Anish Tawakley , Co-Chief Investment Officer – Equity, ICICI Prudential AMC'We adopt a barbell strategy for stock selection. On one end, we invest in value opportunities—companies that may be under near-term pressure but offer meaningful potential for mean reversion. On the other end, we back businesses with strong growth prospects and robust fundamentals. This balanced approach helps us build a resilient portfolio that can deliver consistent, long-term performance across market cycles,' he added,An expert believes that since its inception in 1993, ICICI Prudential Bluechip Fund has had a track record of strong performance and being an actively managed large-cap category fund, it has a higher expense ratio.'The fund has generally outpaced the benchmark, which is BSE 100 TRI. The 3-month returns have been slightly below par; however, such short-term aberrations are normal in actively managed funds. The fund demonstrates resilience and consistency over the long term, reflecting the manager's disciplined approach and stock picking skills,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial RadianceLooking at the yearly returns for the last 10 years, the scheme has offered negative returns in 2015 and 2018 of around 0.21% and 0.81% respectively. Across the 10 calendar years, the fund gave the highest returns in 2017 of around 32.75%.If an investor invested Rs 10,000 via monthly SIP in the scheme since its inception, the current value would have been Rs 89.25 lakh with an XIRR of 15.69%. In the last five years, the value of the same monthly SIP would have been Rs 9.66 lakh with an XIRR of 19.36%.In the last three years, the value of the same monthly SIP would have been Rs 4.73 lakh with an XIRR of 19.01%.If an investor made a lumpsum investment of Rs 1 lakh in the fund at the time of its inception, the current value would have been Rs 10.81 lakh with a CAGR of 15.03%. The value of the same investment in the last five years would have been Rs 3.16 lakh with a CAGR of 25.89%. In the last three years, the value of the same investment would have been Rs 1.76 lakh with a CAGR of 20.76%.The large cap fund had 90.66% in equity, 1.60% in debt, and 7.74% in others as on April 30, 2025. In comparison to the large cap category, the scheme is overweight on debt and others whereas underweight on equity. The category on an average had 94.10% in equity, 0.73% in debt, and 5.16% in a large cap fund, the scheme invests 84.33% in large caps, 5.86% in mid caps, 9.66% in others and 0.15% in small the allocation by the fund and being the large cap fund, Minocha advices that investors looking for active management in the large caps and who can endure some volatility, as compared to passive variants like a Nifty 50 index fund, can choose this fund and in today's market situation with high valuations across the board, there may be value in looking for more flexible options toward risk-adjusted adds that investors who have a horizon of five years or more may want to look at flexi-cap or large & mid-cap funds, where fund managers consider their allocation into different market caps depending on the valuation comfort. That being said, ICICI Pru Bluechip can still be considered for some exposure exclusive in the large-cap PE and PBV ratio of the small cap fund were recorded at 31.81 times and 5.96 times respectively whereas the dividend yield ratio was recorded at 4.89 times as of April fund had the highest allocation in the bank sector of around 24.07% compared to 26.45% by the category. The scheme is overweight on automobile & ancillaries, crude oil, infrastructure, construction materials, telecom, insurance, and top 10 stocks of the fund constitute 54.39% of the total portfolio as on April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.44 and an alpha of 0.42. The sortino ratio of the scheme was recorded at 0.81. The return due to net selectivity was recorded at 0.41 and return due to improper diversification was recorded at 0.02 in the last three investment style of the fund is to invest in growth oriented stocks in large cap market from ICICI Prudential Bluechip Fund, there are 27 funds in the category who have a track record of three years. Nippon India Large Cap Fund gave the highest return of 22.90% in the last three years, followed by DSP Large Cap Fund which gave 21.54% return in the same Bluechip Fund gave the lowest return of around 13.83% in the last three years in the large cap at the performance of the large cap funds, Minocha mentioned that when markets are volatile, there is a tendency to lean towards safety in large caps and the bigger upside offered by mid and small caps during a rally, however, can be offset by the fact that large caps tend to offer better downside protection and quicker recoveries during market corrections.'Investors with the temperament for low volatility and predictable returns are best placed with a stake in large-cap funds, which have given returns over inflation over time. Hence, a balanced investment approach combining the relative safety of large caps with selective exposure to the mid/small-cap funds can prove to be a reward in terms of returns for taking on risk,' he should always choose a scheme based on risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Economic Times
22-05-2025
- Business
- Economic Times
MF Tracker: Can this mega largecap fund add stability to your portfolio in volatile market?
Experts highlight its disciplined approach and stock-picking skills, making it a suitable option for investors seeking stability in volatile markets. With the market being volatile and experts are recommending large cap funds for investment of which one fund is ICICI Prudential Bluechip Fund. The fund is the largest fund in the category and had an AUM of Rs 68,033 crore as on April 30, 2025. Launched on May 23, 2008, the large cap fund is given five star rating by ValueResearch and Morningstar. Also Read | NFO Insight: Can Motilal Oswal Services Fund help you gain stability and long-term growth potential? Based on trailing returns, the scheme has outperformed its benchmark and category average in the last six months, nine months, one-,three-,five years. On the other hand, it has outperformed against its benchmark and underperformed the category average in the last three large cap fund offered 0.66% return in the last nine months against a loss of 1.61% by the benchmark (NIFTY 100 - TRI) and a loss of 2.02% as the category average. In the last one year, it offered 10.38% against 8.51% by the benchmark and 8.04% as the category average. In the last three years, the scheme gave 20.74% compared to 16.53% by the benchmark and 17.25% as the category average. The scheme in the last five years offered 26.07% against 23.56% by the benchmark and 22.40% as the category average. On the basis of daily rolling return in the last five years, the scheme has offered 14.55% return and based on the same parameter, in the last three years, the scheme gave 19.47% return. 'The success of ICICI Prudential Bluechip Fund can be attributed to the disciplined approach we follow in portfolio construction. Our primary focus is on avoiding significant mistakes—specifically, steering clear of stocks that could land in the bottom third of the performance curve,' commented Anish Tawakley, Co-Chief Investment Officer – Equity, ICICI Prudential AMC'We adopt a barbell strategy for stock selection. On one end, we invest in value opportunities—companies that may be under near-term pressure but offer meaningful potential for mean reversion. On the other end, we back businesses with strong growth prospects and robust fundamentals. This balanced approach helps us build a resilient portfolio that can deliver consistent, long-term performance across market cycles,' he added,An expert believes that since its inception in 1993, ICICI Prudential Bluechip Fund has had a track record of strong performance and being an actively managed large-cap category fund, it has a higher expense ratio. 'The fund has generally outpaced the benchmark, which is BSE 100 TRI. The 3-month returns have been slightly below par; however, such short-term aberrations are normal in actively managed funds. The fund demonstrates resilience and consistency over the long term, reflecting the manager's disciplined approach and stock picking skills,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance Also Read | 27 equity mutual funds offer over 25% CAGR in both 3 and 5 years. Have you added any to your portfolio? Looking at the yearly returns for the last 10 years, the scheme has offered negative returns in 2015 and 2018 of around 0.21% and 0.81% respectively. Across the 10 calendar years, the fund gave the highest returns in 2017 of around 32.75%. If an investor invested Rs 10,000 via monthly SIP in the scheme since its inception, the current value would have been Rs 89.25 lakh with an XIRR of 15.69%. In the last five years, the value of the same monthly SIP would have been Rs 9.66 lakh with an XIRR of 19.36%. In the last three years, the value of the same monthly SIP would have been Rs 4.73 lakh with an XIRR of 19.01%.If an investor made a lumpsum investment of Rs 1 lakh in the fund at the time of its inception, the current value would have been Rs 10.81 lakh with a CAGR of 15.03%. The value of the same investment in the last five years would have been Rs 3.16 lakh with a CAGR of 25.89%. In the last three years, the value of the same investment would have been Rs 1.76 lakh with a CAGR of 20.76%.The large cap fund had 90.66% in equity, 1.60% in debt, and 7.74% in others as on April 30, 2025. In comparison to the large cap category, the scheme is overweight on debt and others whereas underweight on equity. The category on an average had 94.10% in equity, 0.73% in debt, and 5.16% in others. Being a large cap fund, the scheme invests 84.33% in large caps, 5.86% in mid caps, 9.66% in others and 0.15% in small the allocation by the fund and being the large cap fund, Minocha advices that investors looking for active management in the large caps and who can endure some volatility, as compared to passive variants like a Nifty 50 index fund, can choose this fund and in today's market situation with high valuations across the board, there may be value in looking for more flexible options toward risk-adjusted adds that investors who have a horizon of five years or more may want to look at flexi-cap or large & mid-cap funds, where fund managers consider their allocation into different market caps depending on the valuation comfort. That being said, ICICI Pru Bluechip can still be considered for some exposure exclusive in the large-cap category. Also Read | Nearing retirement and want to invest Rs 50 lakh? Consider these investment options The PE and PBV ratio of the small cap fund were recorded at 31.81 times and 5.96 times respectively whereas the dividend yield ratio was recorded at 4.89 times as of April fund had the highest allocation in the bank sector of around 24.07% compared to 26.45% by the category. The scheme is overweight on automobile & ancillaries, crude oil, infrastructure, construction materials, telecom, insurance, and top 10 stocks of the fund constitute 54.39% of the total portfolio as on April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.44 and an alpha of 0.42. The sortino ratio of the scheme was recorded at 0.81. The return due to net selectivity was recorded at 0.41 and return due to improper diversification was recorded at 0.02 in the last three years. The investment style of the fund is to invest in growth oriented stocks in large cap market from ICICI Prudential Bluechip Fund, there are 27 funds in the category who have a track record of three years. Nippon India Large Cap Fund gave the highest return of 22.90% in the last three years, followed by DSP Large Cap Fund which gave 21.54% return in the same Bluechip Fund gave the lowest return of around 13.83% in the last three years in the large cap at the performance of the large cap funds, Minocha mentioned that when markets are volatile, there is a tendency to lean towards safety in large caps and the bigger upside offered by mid and small caps during a rally, however, can be offset by the fact that large caps tend to offer better downside protection and quicker recoveries during market corrections.'Investors with the temperament for low volatility and predictable returns are best placed with a stake in large-cap funds, which have given returns over inflation over time. Hence, a balanced investment approach combining the relative safety of large caps with selective exposure to the mid/small-cap funds can prove to be a reward in terms of returns for taking on risk,' he should always choose a scheme based on risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Mint
20-05-2025
- Business
- Mint
Global Investing for Indians: Secure Your Future & Fund Foreign Education
In an age where borders are porous but portfolios remain parochial,Mint Horizons came to Delhi with a bold proposition: it's time Indian investors stopped thinking domestically and started planning globally. If you want Mint Horizons to come to your city, register here. The evening began with Neil Borate, Deputy Editor at Mint, setting the tone by framing global investing as more than just a financial decision — it's a mindset shift. "We're no longer living in an economy isolated from global trends. Whether it's higher education, market volatility, or technological innovation — every decision has a cross-border implication," he said. From navigating market risk to funding international education, the Delhi edition brought together a diverse group of experts: Dhirendra Kumar , Founder & CEO of Value Research , Founder & CEO of Value Research Piyush Gupta , Co-founder & CTO of Zinc Money , Co-founder & CTO of Zinc Money Elizabeth Roche , Associate Professor at OP Jindal Global University , Associate Professor at OP Jindal Global University Ambassador Dr. Mohan Kumar , Former Indian Ambassador to France , Former Indian Ambassador to France Ajay Srivastava, Founder of Global Trade Research Initiative Kicking off the keynote was Dhirendra Kumar, who reflected on how Indian investors — and his own portfolio — have evolved. Kumar shared that nearly 25% of his total assets are now globally allocated, predominantly in Nasdaq 100 and FANG+ ETFs. 'I've always invested in what I understand — and I understand technology,' he said. His decades-long conviction in the U.S. tech ecosystem has paid off, delivering returns far superior to his Indian mutual fund holdings. Mint Money Editor Neil Borate with Dhirendra Kumar, CEO of Value Research But despite his strong advocacy for global diversification, Kumar cautioned against immediate enthusiasm. Many international ETFs available to Indians today, like FANG+ and Nasdaq 100, trade at a 10–25% premium to their NAV, making them inefficient entry points. You can watch Kumar's segment and others in the video below, Piyush Gupta, Co-founder & CTO of Zinc Money, presented an alternative, make global investing systematic and aligned with life goals — especially children's foreign education. Gupta explained that higher education abroad is no longer a distant aspiration. With over 1 million Indian students studying overseas, the need tosave, invest, and even borrow in USD has become urgent. Zinc Money — a Gift City-based fintech — helps Indian parents do just that. Using their regulatory licenses (RIA, broker-dealer, PSP), they offer goal-based portfolios, dollar wallets, and even international education loans — all within a SEBI-equivalent framework. Their flagship innovation: aGlobal Target Savings ETF (2031–34) that mimics the lifecycle of an education goal. The ETF starts with higher equity exposure and gradually de-risks toward debt as the education date nears — with no dividend payouts and tax efficiency due to in-ETF rebalancing. 'We're not just enabling investing,' Gupta said, 'we're building a structure around purpose.' The event concluded with a power-packed geopolitical panel moderated by Elizabeth Roche, featuring Ambassador Dr. Mohan Kumar and Ajay Srivastava. Dr. Kumar warned that global trade, once built on multilateral trust and WTO rules, is now shifting towards reciprocal, strategic deals driven by tariff wars and geopolitics. 'President Trump's trade policies have brought a wrecking ball to the WTO,' he said. 'But if India acts decisively, this crisis could be our 1991 moment — a chance to reform and plug into disrupted supply chains.' Srivastava added a reality check. 'Last time the U.S. imposed tariffs on China, it ended up importing even more — just rerouted via Mexico and Vietnam. China's exports rose by $1 trillion. So this strategy doesn't work. But everyone's adjusting to Trump anyway.' The panel also examinedIndia's recent FTAs with the UK and EU, noting improvements in market access (for textiles, seafood, and whisky), but warned that without deep reform in areas like agriculture, manufacturing, and disinvestment, India risks missing the boat — again. From Kumar's personal portfolio strategy to Zinc's education-linked investing, and finally to the macro lens of geopolitics, the message was clear:global investing is no longer a luxury — it's an essential tool for risk management and future planning. As Neil Borate closed the session, he reminded the audience that discipline, not complexity, drives returns. And in today's world, thinking beyond borders might just be the simplest step toward financial resilience.
Mint
09-05-2025
- Business
- Mint
SBI Small Cap Fund: 5 key things to know before you invest in 2025
The SBI Small Cap Fund has emerged as a prominent investment choice for retail investors opting for high growth through equity markets. As of May 2025, the fund has displayed impressive performance making it a compelling option for long term investors. In the last 5 years the SBI Small Cap Fund direct plan growth has given an absolute return of 284.68%. Now, this translates to an annualised return (CAGR) of 28.44%, meaning the fund grew by an average of 28.44% per year over five years. Here are five key factors to consider before thinking of investing in this fund: The SBI Small Cap Fund has delivered strong returns over various time frames. As of 8 May 2025, the fund's performance is as follows: Time Period Annualised Returns 1 year -0.67% 3 year 14.86% 5 year 28.44% Since Inception 19.35% These figures indicate the fund's consistent ability to churn out returns, aligning with the primary goal of long term capital appreciation. SBI's objective behind the creation of these small cap funds is to provide investors with considerable wealth generation over a longer period. These funds generally also carry more risk, volatility and possibility of underperformance in comparison with large cap funds. The fund's expense ratio is approximately 1.58% for the regular plan, which is competitive within the industry. For investors opting for Systematic Investment Plans (SIPs), the returns are as follows: SIP duration Return 1 year -6.88% 3 year 18.49% 5 year 55.78% 10 year 164.56% These figures highlight the potential benefits of long-term SIP investments in the fund. The SBI Small Cap Fund has shown better performance than the Nifty 50 benchmark in the last five years, with the benchmark index giving an absolute return of 163.75% in comparison to the SBI Small cap fund that has given an absolute return of 284.68% during the same duration. Given the performance of SBI Small cap fund has been significantly better than the Nifty 50 benchmark, still it is important to acknowledge the fact that these funds come with increased risk of capital depreciation and volatility especially in economic downturns and recessions. According to Value Research, as of May 2025, the fund's asset allocation is as follows: Equity : 88.03% : 88.03% Cash & Cash Equivalents : 8.99% : 8.99% Debt: 2.98% Source: Value Research This allocation clearly reflects the fund's focus on equity oriented investments, adjoining with its target of capital appreciation. This equity mutual fund is suitable for investors who have a long term horizon of 5 to 7 years. It also comes with a potential of higher returns with high risk. This fund is particularly appropriate for those looking to diversify their portfolio with small-cap equity exposure. Therefore, prudent investors should carefully consider the above discussed returns and data, and post the same discuss their financial goals and aspirations with a certified financial advisor before thinking of investing in this fund. As investments in equity markets carry its own set of risks. Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
