Parag Thakkar of ICICI Prudential – PMS says quality midcaps and smallcaps are likely reward handsomely over the next 3-4 years. Edited excerpts from an interview with ET NOW: Your big call which was very often discussed in the market was when you called out the peak for smallcaps and midcaps. What were those signs that made you say this is time to stop investing? And now have you changed your stance back to lean towards them? We looked at the PE multiple of the smallcap index. The PE of smallcaps in January 2018 was 25, and it was at a premium to largecaps and midcaps both. And if you see from August 2007 to January 2018, all smallcaps were rallying madly. There was a crazy run, and it was complete euphoria with many stories getting sold. So that was what I called a perfect top. Of course, I give this credit to my entire team, my colleagues and other fund managers. It was a collective call to return Rs 700 crore to investors and after that we saw 42 per cent correction in … [Read more...] about The fund manager who called smallcap peak in 2018 says it’s time to buy them
When Ajoy Ghosh opened an National Pension System (NPS) account last month, his basic objective was to save tax. Ghosh has opted for the NPS benefit offered by his company, under which Rs 5,200 is put in the scheme on his behalf every month. He has invested an additional Rs 50,000 under Section 80CCD(1b) of the Income-tax Act, 1961. The total investment of Rs 1.12 lakh in the scheme will reduce his annual tax by Rs 35,000. “I have exhausted all other tax-saving avenues. The only way I can save tax is by investing in NPS,” says the Kolkata based telecom engineer. In many ways, investors like Ghosh miss the wood for the trees. They are so focused on saving tax that they don’t consider other aspects of the investment. Ghosh did not assess the pension fund he has invested in. Nor did he consider the asset mix he should opt for. “I just went with what the investment adviser from the bank told me,” he says. NPS helps save tax in 3 ways: Sec 80CCE: Rs 1.5 … [Read more...] about Best performing NPS funds for different asset allocations at the start of FY 2018-19
Since his election in May, London’s new mayor Sadiq Khan has been consulting on plans to tackle air pollution – including an ultra low emissions zone in central London and a toxicity surcharge for more polluting vehicles. He has also pledged to pedestrianise Oxford Street, starting with car-free days and weekends along the busy shopping area, although firm plans have yet to be agreed. Greenwich, in south-east London, also looks set to get occasional car-free days. … [Read more...] about Paris is banning traffic from half the city. Why can’t London have a car-free day?