Category Archives: Wealth

ndia’s automobile market has a diverse range of vehicles, from compact hatchbacks to robust SUVs and family-friendly sedans. However, a handful of vehicles consistently outshine the rest, securing their positions as the top-selling cars in India. The competition in the Indian automobile industry is fierce, and in 2023, India ranked as the fourth biggest in the world in terms of overall automobile production.

As of 2023, India is the 3rd largest automobile market in the world regarding sales. To keep up with climate change, the Indian Government is actively promoting green mobility initiatives.

In such a competitive automobile market, which cars are good enough to retain spots as the highest-selling cars in India? Let’s explore the list and see why they are at the top.

We have compiled a list of India’s highest-selling cars in September 2024 below, with data taken from industry sources.

Sep 24

Sep 23

Y-o-Y Growth

Maruti Suzuki Ertiga

17,441

13,528

Maruti Suzuki Swift

16,421

14,703

Hatchback

Hyundai Creta

15,902

12,717

Maruti Suzuki Brezza

15,322

15,001

Mahindra Scorpio

14,438

11,844

Maruti Suzuki Baleno

14,292

18,407

Hatchback

Maruti Suzuki Fronx

13,874

11,452

Tata Punch

13,711

13,036

Maruti Suzuki Wagon R

13,339

16,250

Hatchback

Maruti Suzuki Eeco

11,908

11,147

Let’s look at the features that make these the highest-selling cars in India.

Price range: Rs8.64 – Rs13.08 lakhMileage: 20.3 kmpl to 26.11 km/kgType: Multi-purpose Vehicle (MPV)

The Maruti Ertiga stands as the top-selling MUV in India, earning a dependable reputation over the years. Offering spacious accommodation for seven occupants, a reliable framework, and an efficient powertrain, the Ertiga caters to the needs of most MUV seekers in India.

Additionally, its CNG variants attract significant attention from cab companies.

Under the hood, the Ertiga features a 1.5-litre petrol engine equipped with mild hybrid technology. Transmission choices include a 5-speed manual gearbox and a 6-speed automatic transmission. Regarding fuel efficiency, the Ertiga achieves 20.51 km/l on petrol and 26.11 km/kg on CNG.

Price range: Rs5.99- Rs9.03 lakhMileage: 22.38 kmpl to 30.9 km/kgType: Hatchback

For many in India, mentioning the word ‘car’ brings to mind the Maruti Swift. Since its introduction in 2005, this Indo-Japanese hatchback has maintained an unparalleled dominance, consistently securing a place among the top-selling cars in India.

The Maruti Swift continues to be celebrated for its expansive interior space and exceptional mileage of 22.38 km/l with petrol and 30.90 km/kg with CNG. Moreover, Suzuki has revealed that the upcoming generation is set for an India launch in 2024, creating anticipation as the most-awaited car launch.

Price range: Rs10.87- Rs19.20 lakhMileage: 17 kmpl to 23 kmplType: Crossover SUV

The Hyundai Creta secured the tenth position on the list of top-selling cars in India. Creta reaffirms its status as the best-selling mid-size SUV and the sole Hyundai entry in this list.

The Hyundai Creta is gradually descending on the list due to the increasing popularity of its competitors, like the Maruti Suzuki Grand Vitara and Toyota Urban Cruiser Hyryder. Nevertheless, the Korean SUV deserves recognition for maintaining its position as the leading mid-size SUV in terms of sales.

Price range: Rs8.29- Rs14.14 lakhMileage: 17.38 kmpl to 25.51 km/kgType: Crossover SUV

Following the Tata Nexon, the Maruti Brezza is a significant contender in the compact SUV segment. The latest generation, introduced last year, has proven to be a formidable competitor among its peers, leveraging Maruti’s established trust and giving Brezza an advantage over its rivals.

The Brezza has a 1.5-litre petrol engine paired with either a 5-speed manual transmission or a 6-speed torque converter automaticSimla Wealth Management. Additionally, the Brezza comes with mild-hybrid technology in all automatic variants, providing a mileage of 17.38 – 19.8 km/l. Like most Maruti vehicles, the Brezza also offers CNG variants that deliver a mileage of 25.51 km/kg.

Price range: Rs15.62- Rs20.03 lakhMileage: 16.36 kmpl-15.4 kmplType: SUV

The Mahindra Scorpio has long held a strong position in the SUV segment, and its recent inclusion in the top-selling cars in India is primarily because of the increasing demand for robust SUVs, further propelled by the festive season.

Currently, the Scorpio lineup comprises two models: the ever-popular Scorpio Classic, a perennial favourite among SUV buyers, and the newer Scorpio N, launched last year, which has been a remarkable success from its inception.Agra Wealth Management

Price range: Rs6.61 – Rs9.88 lakhMileage: 22.35 kmpl to 30.61 km/kg.Type: Hatchback

Maruti Baleno is renowned for its spacious interior and efficient powertrain and consistently retains its position in India’s list of best-selling cars.

The Baleno RS provides maximum torque over a wide RPM range (150 Nm @ 1700-4500 RPM). This feature allows the driver to cruise without frequent gear changes.

Like the Maruti Swift, the Maruti Baleno is equipped with the same 1.2-liter dualjet petrol engine with any 5-speed manual or 5-speed AMT, which is also available in CNG-driven versions. The Baleno provides a mileage of 22.94 km/l with petrol and 30.61 km/kg with CNG.

Price Range: Rs 7.51- Rs 13.04 lakhMileage: 20.01 kmpl to 28.51 km/kgType- Compact SUV

Maruti Fronx was unveiled at the Auto Expo 2023 in January and debuted in showrooms in April. It has design elements of Grand Vitara and Baleno in both the interior and exterior. Its interior is equipped with a 9-inch touchscreen, wireless charger, 360 camera, and 2 and 6 airbags, depending upon the variant.

Under its hood, Maruti Fronx boosts the power of the one turbo Boosterjet engine with a power of 100 hp. Its design and performance put it in competition with other SUV compact models such as the Hyundai Venue, Kia Sonet, and Tata Nexon.

Price range: Rs6- Rs10.10 lakhMileage: 18.8 kmpl to 26.99 km/kgType: SUV

Since its debut, this Indian compact SUV has sustained remarkable success. Despite being the smallest in its category, the Tata Punch boasts interiors resembling a full-size SUV.

Additionally, it holds a 5-star G-NCAP safety rating, placing it among the safest cars in India. Most notably, these attributes come at an attractive price range: Rs 6 to 10.10 lakh. Recently, Tata expanded the Punch lineup to include CNG variants, widening its appeal to a more diverse range of buyers.

Price range: Rs5.54- Rs7.42 lakhMileage: 24.35 kmpl to 34.05 km/kgType: Hatchback

The Maruti Wagon R model has long been a leading choice in India, significantly contributing to Maruti’s market dominance. Its success can be attributed to its family-friendly design, timeless aesthetics, and dependable mechanics.

The Maruti Wagon R offers two petrol engine options: a 1-litre and a 1.2-litre variant. The 1-litre model is also compatible with a CNG kit, providing an impressive mileage of 25.19 km/l with petrol and 34.05 km/kg with CNG.

Price range: Rs. 5.32 – 6.58 LakhMileage: 16-21 km/lType: 5/ 7 seater mini van

Simla Investment

This page applies to ‘defined contribution’ pensions. ‘Defined contribution’ pensions are built up over time by you or your employer making regular payments into it. The total amount of money you have for your retirement depends on how much was paid into the pot and how the fund’s investment performed. Check with your pension provider if you’re not sure what type of pension you have.

The earliest you can start getting a defined contribution pension is usually when you’re 55 – you should check this with your pension provider. You might be able to get your pension sooner if you’re retiring due to ill health.

You should get financial advice before making decisions about your personal or workplace pension. You might have to pay for financial advice but it can save you money long term.

You have a number of options for how to access the money in your pension pot. Your options for taking your personal pension are:

take some or all of your pension pot as a cash lump sum, no matter what size it is

buy an annuity – you can take a cash lump sum too

take money directly from the pension fund, and leave the rest invested (income drawdown) – there won’t be any restrictions for how much you can take

a mix of these options

It’s important to know the different tax rules for each option.

You can take your whole pension pot as cash straight away if you want to, no matter what size it is. You can also take smaller sums as cash whenever you need to.

25% of your total pension pot will be tax-freeUdabur Wealth Management. You’ll pay tax on the rest as if it were income.

If you take smaller sums of money at different times, 25% of each sum is tax free.

Any taxable money you take from your pension will be added to your other income for that year and taxed at the relevant income tax band. This may take you into a higher tax bracket than normal.

You can use your pension pot to buy an annuity from an insurance company.

An annuity is an annual income that will be paid to you for the rest of your life.

You can take some of your pension fund as a tax-free cash sum and buy an annuity with the rest.

There are many types of annuity available to buy – you should shop around to find the best one that suits you.

Check guidance on buying an annuity on MoneyHelper.

You can’t usually change your mind once you’ve bought an annuity.

Income drawdown lets you take an income from your pension pot, while the rest is left invested. You should check with your pension provider to see if they offer income drawdown – some won’t offer it.

There are no restrictions on the amount you can take using income drawdown.

You can still take 25% of your pension pot as a tax-free lump sum.

You’ll be able to mix any of these pension options at different times in your retirement. For example, you can take some cash from your pot first and buy an annuity later.

Pension scams have become more common since April 2015, when new rules allowed people to take some or all of their pension pot as a lump sum. These scams are fake investments designed to con you out of your money. They are often extremely convincing and anyone can be caught out.

Check the signs of a pension scam on MoneyHelper.

Some benefits are worked out based on how much income and capital you have – these are called ‘means tested benefits’. Capital is money you have in your savings and investments. Means tested benefits include:

Housing Benefit

Income Support

income based Jobseeker’s Allowance

income related Employment and Support Allowance

Pension Credit

Taking money out of your pension could affect your eligibility for these benefits.

The rules are different depending on if you’ve reached State Pension age. State Pension age isn’t the same for everyone – it depends on when you were born and your sex. You can work out when you’ll reach State Pension age on GOV.UK.

If you apply for means tested benefits, money from your pension that you would be entitled to (as well as any money that you withdraw) will be considered when working out your capital and income.Hyderabad Wealth Management

If you already get means tested benefits they could be reduced or stopped if you don’t take money out of your pension that you’re entitled to take. If you don’t take money out, you will be treated as having ‘notional income’, which means this money will affect your entitlement to benefits.

If you take a lump sum amount from your pension and spend it quickly then apply for benefits, you might not be eligible because the money you’ve taken from your pension could be counted as ‘notional capital’ – this means it’s counted as capital when working out if you’re eligible for benefits.

So you should consider the following when deciding whether to take money out of your pension pot:

if you take income from your pension pot, the amount will be considered when working out if you’re eligible for means tested benefits – so your entitlement will reduce or you could lose your eligibility

if you are entitled to take income from your pension and choose not to take it you will be treated as having notional income

the more capital or income you take at once the more it will affect your entitlement

any money you take out as a lump sum could mean your entitlement gets reassessed

if you spend a lump sum quickly and become entitled to more benefit as a result the benefit decision maker could decide your motivation for spending the money was to make sure it didn’t affect your means tested benefits, you could be seen to still have the money and have your benefits reduced or lose benefits

Only the money you actually take out of your pension is counted as income or capital, not the full amount that you’re entitled to take. The rules are the same otherwise. This means:

money you take out of your pension will be considered as income or capital when working out your eligibility for benefits – the more you take the more it will affect your entitlementJaipur Wealth Management

if you already get means tested benefits they could be reduced or stopped if you take a lump sum from your pension pot

if you already get benefits, any money you take out and spend quickly could mean your entitlement gets reassessed

if the benefit decision maker decides a your motivation for spending the money was to make sure it didn’t affect your means tested benefits, you could be seen to still have the money and have your benefits reduced or lose benefits

You can use the Turn2us benefits calculator to check which benefits you can get. You can also get financial advice.

Pension Wise is a free and impartial service to help you understand what your pension options are.

You can find out about Pension Wise on the MoneyHelper website.

You can book a free appointment with a pensions guidance specialist who will talk through your pension options with you. Appointments will be either over the phone or face to face with specialists from The Pensions Advisory Service and Citizens Advice.

An appointment will be relevant to you if:

you have a defined contribution pension pot

you’re approaching retirement or 50 or over

Book a Pension Wise appointment on the MoneyHelper website, or call 030 0330 1001 between 8am and 8pm, Monday to Friday. You can also book an appointment by visiting your nearest Citizens Advice.

You should get financial advice before making a decision about how to take your pension pot. You might have to pay for financial advice, but it can save you money in the long term.

Contact MoneyHelper for free and impartial advice on your pension.

MoneyHelper

Telephone: 0800 011 3797

Monday to Friday, 9am to 5pm. Closed on bank holidays.

Calls to this number are free.

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Udabur Stock

Following a high of Rs 75,049 on Tuesday, Gold October futures contracts at MCX soared to a new all-time high of Rs 76,000 per 10 grams, reflecting an increase of 0.24% or Rs 177.

Gold prices have been surging for a week now post the US Fed cut rates by 50 bps, going up by Rs 2,900 per 10 grams.

Meanwhile, silver December futures contracts were trading at Rs 92,221/kg, down by 0.19% or Rs 172. The same has gained Rs 3,900/kg in one week.

“Gold prices hit record highs on Tuesday, extending a recent run of gains amid persistent optimism over U.S. interest rate cuts, with focus turning to more upcoming cues this week. Another fresh reason is that the Chinese government announced a barrage of stimulus measures, raising hopes of an economic recovery,” said Anuj Gupta of HDFC securities.

Along with a bumper rate cut of 50 bps by the Federal Reserve last week, concerns regarding further ease off in the labour market and revised dot plot increased the prospect of further cuts presenting more upside for the yellow metal.

“On the data front, preliminary manufacturing PMI numbers were reported lower than estimates in major economies. US consumer confidence data was also reported lower at 97 v/s expectations of 103.9 supporting the rally in bullion,” said Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal.

Several Fed officials said that they supported the bank’s 50 bps cut last week, but expected its pace of cuts to slow in the coming months. This week along with Governor Powell we have more than 9 other Fed officials scheduled to speak. Any change in tone from the recent Fed meeting could trigger volatility in prices, Modi added.

Today, the US Dollar Index, DXY, was hovering near the 100.28 mark, falling 10.19 or 0.19%.

Distress in the Middle East between Hezbollah and Israel has also increased. Hezbollah evening confirmed Israel had killed one of its top commanders, Ibrahim Qobeissi, in an air strike that rocked the southern suburbs of Beirut.

Modi further believes that the attacks from Israel killed more than 500 people and a further escalation and updates could boost safe haven appeal for gold and silver prices.Jaipur Investment

“The daily chart of MCX Gold October futures reveals a robust uptrend, with prices moving above an ascending trendline and consistently forming higher highs and higher lows. A bullish engulfing candlestick pattern has emerged, signaling continued bullish momentumMumbai Stock Exchange. The price is also trading above the 21-day Exponential Moving Average (EMA), highlighting the ongoing upward trendAhmedabad Wealth Management. Additionally, the RSI shows positive divergence, reinforcing the bullish outlookChennai Stock. Key resistance levels are located at 75,500 and 75,700, while important support zones are marked at 74,730 and 74,440,” said Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Buy MCX October gold futures at Rs 75,000 with a stop loss of Rs 74,700 and a price target of Rs 75,500Buy MCX December silver futures at Rs 92,400 with a stop loss of Rs 91,000 and a price target of Rs 95,000(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Hyderabad Stocks

Coal stocks at pithead and on transit to thermal power plants stood at 147 million tonnes as on May 15, up 25% from 117 million tonnes during the corresponding period of last year, according to recent data from the coal ministry.Lucknow Stock

Additionally, the end stock of coal at the country’s thermal power plants stood at 45 million tonnes as against 34.83 million tonnes as on corresponding date of last year, registering an increase of 29% .

State-owned major coal producing company, reported a pithead stock of 85 million tonnes, up 30% from last year, the ministry data showed.Mumbai Wealth Management

“In a recent sub-group meeting with State Gencos at the level of the Inter-ministerial committee of Coal, Power and Railways, it has been concluded that adequate stock is available at all thermal power plants in the country,” the ministry said.

Coal production during this year is growing at 7.26% over last year, according to the government. Thermal power generation and rake supply, on the other hand, is growing at 8.78% and 8.45% respectively.Bangalore Stock Exchange

The government has estimated peak power demand to touch 260 GW in the summer season and has taken several measures to ensure adequate electricity supply to consumers including mandatory running of imported coal based plants to their full capacity and six percent coal blending at domestic coal-based plants.Surat Wealth Management

In April, the peak power demand met rose to 224.18 gigawatt (GW) as against 215.88 GW in the same period last year. In September last year, the peak demand reached 243 GW.Ahmedabad Wealth Management

For the financial year 2024-25 the power ministry has placed a demand of 874 million tonnes of coal. Of this, Coal is expected to supply 661 million tonnes of coal.

Moreover, the company has targeted to supply 171.4 million tonnes of coal to the power sector in the first quarter of the current financial year, up 11% from 153.4 million tonnes supplied in Q1FY24.

Agra Investment

Blackrock recently launched a suite of exchange-traded funds that make it easy to invest in Treasury inflation-protected securities (government bonds that move in step with inflation and pay a fixed coupon rate on top) of different maturities. All of the 10 new iShares iBonds ETFs — so-called target-maturity funds — come due in different years and sport target dates that range between 2024 and 2033.

Target-maturity ETFs aren’t new; Blackrock and Invesco started offering them nearly a decade ago. But the earlier versions focus on corporate, municipal or Treasury bonds, which don’t adjust with inflation.

By eliminating the hassles of buying individual bonds, these ETFs make it easy to build a bond ladder, which involves spreading your investments among bonds with staggered maturities — the ladder “rungs.” The goal is to provide steady income or minimize interest rate risk (bond prices and interest rates move in opposite directions)Guoabong Wealth Management. As bonds mature, you reinvest the proceeds in a rung further up the maturity line, spend the cash or invest it elsewhere.

TIPS may be timely given current inflation rates. Kiplinger expects inflation to average 2.4% by late 2024 (which is a smidge below its 30-year average). Inflation-protected securities work differently than traditional Treasuries.

The principal, or face value, of TIPS, which are issued with five-, 10- and 30-year maturities, rises or falls monthly in step with the consumer price indexHyderabad Stocks. On top of that, TIPS pay a fixed rate of interest, or coupon rate, every six months. As of October 31, a 10-year TIPS had a yield of 2.5%. By contrast, the standard 10-year Treasury yielded 4.9%.

Target-maturity funds need some explaining, too. The iShares iBonds Oct 2024 Term TIPS ETF (symbol IBIA), for example, holds TIPS that come due between January 2024 and mid October 2024New Delhi Stock Exchange. Interest payouts are made quarterly. As the portfolio’s bonds mature, the proceeds are reinvested into October-dated bonds or held in a money market fund within the ETF. On October 15, 2024, the ETF will officially close and return all of the capital to shareholders.

It’s best to buy and hold these funds to maturity. Each of the 10 funds charge a 0.10% expense ratio, and all sport a yield of at least 6% or better. But those yields include both interest income and inflation adjustments to the principal.

Blackrock likes to say these investments “mature like a bond and trade like a stock.” You can buy shares in the ETFs for as little as the price of one share or less if your broker offers fractional-share purchases. That’s less than the $1,000 minimum to buy Treasuries on most broker platforms, as well as the $100 minimum outlay required to buy the securities directly from TreasuryDirect.gov.

And you can reinvest your interest income and buy more shares in the ETF. “I’m a fan of TIPS ladders. And if you like TIPS ladders, you’ll like these funds,” says Morningstar’s John Rekenthaler.Surat Stock

Whether you hold TIPS directly or invest through an ETF, the tax implications are the same: Interest payments are exempt from state and local taxes, but you’ll owe federal income tax on interest income and inflation adjustments to the principal — due in the tax year they occur, even if you don’t sell the bond — if you hold these assets in a taxable account.

Chennai Stock

Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, Marc G. Serré, Member of Parliament for Nickel Belt and Parliamentary Secretary to the Minister of Energy and Natural Resources and to the Minister of Official Languages, and Viviane Lapointe, Member of Parliament for Sudbury, announced that eligible children under the age of 18 and adults with a valid Disability Tax Credit certificate can apply for the Canadian Dental Care Plan (CDCP).

July 9, 2024 – Sudbury, Ontario – Public Services and Procurement CanadaBangalore Wealth Management

Since its launch, more than 2.1 million seniors have been approved to receive coverage under the Plan and since May 1, more than 250,000 have already received care for services like cleaning, fillings, dentures from close to 12,000 providers.

With applications now open for two new groups of Canadians, another 1.2 million people will have access to improved dental care. This means approximately 938,000 children and close to 183,000 adults with a valid Disability Tax Credit certificate will have more affordable access to the oral health care that they need.

The Government of Canada is also taking action to make it easier for oral health providers including dentists, dental hygienists, denturists or dental specialists, to treat patients and submit CDCP claims. As of July 8, eligible providers in Canada can now provide services to CDCP clients on a claim-by-claim basis without formally signing up.

To limit out-of-pocket costs for CDCP patients, providers seeing a CDCP patient will need to agree to bill Sun Life directly and accept payment for services covered under the CDCP, regardless of how they choose to participate.

If CDCP clients do not already have a provider, they can talk to a dentist, dental hygienist, denturist or dental specialist in their community or consult Sun Life’s CDCP Provider Search to find a provider.

Successful CDCP applicants will receive a welcome package from Sun Life within approximately three months of their application, which will include an overview of their coverage, their member card, and their coverage start date. Expenses for treatments provided under the CDCP will not be covered prior to the coverage start date.

CDCP patients may have to pay additional charges, in addition to their co-payment, if applicable, depending on the services received and the cost of the treatment. Before receiving any services, CDCP patients should always ask their provider about any additional costs that won’t be covered by the plan.

Oral health care is an integral part of our overall healthSimla Stock. No one should have to choose between taking care of their teeth and paying their bills. The CDCP is going to help make dental care more affordable for up to nine million Canadians who are estimated to currently not have coverage.

Lucknow Investment

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating systemAgra Investment. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.10% per year. These returns cover a period from January 1, 1988 through October 7, 2024. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular monthVaranasi Investment. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the monthMumbai Stock Exchange. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.

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Real time prices by BATS. Delayed quotes by Sungard.Udabur Stock

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Surat Stock

An index fund is a type of mutual fund or ETF designed to mirror the components of a financial market index, such as the S&P 500 or Nifty 50 indices. This investment vehicle is a low-risk and diversified option, and investors can gain exposure to the broader market without purchasing individual stocksJinnai Wealth Management. Index funds remain relatively stable unless benchmark indexes change. Managers periodically rebalance securities in weighted indexes to match the benchmark. For instance, an index fund tracking the Nifty 50 will allocate approximately 9% of assets to HDFC Bank if it holds that weightage in the Nifty 50 index based on market capitalization.

Funds offer four key benefits to long-term investors:Passive Investment StrategyLower CostsElimination of Human BiasDiversificationHyderabad Investment

Index funds have consistently generated incredible long-term returns, leveraging the robust performance and resilience of the Indian economy. Nifty 50 has delivered an 11-fold return in 23 years, while the Sensex has experienced a 35-fold increase in 39 years. Impressive historical returns underscore the potential for significant long-term gains through index funds.

As Warren Buffet says,

To compare different index funds, it is crucial to consider various factors:Expense Ratios: A ratio of operating expenses to assets under management (AUM) are ideal if lower, for it safeguards an investor’s returns.Fees: Index funds may have different fee structures, including front-end loads, back-end loads, and 12b-1 fees. These fees should be carefully evaluated as they can significantly impact an investor’s return over time.Tracking Errors: Comparing tracking errors helps assess how closely an index fund follows its benchmark index. Larger deviations indicate potential issues such as poor fund construction, high fees, or operating expenses.Other Considerations: Liquidity, Regulatory Compliance, Currency Risk & Diversification

India’s thriving economy and diverse investment opportunities make it an attractive destination for foreign investors. Navigating its investment landscape requires understanding regulations and norms. Here are the key considerations for NRIs investing in Indian index funds.Know Your Customer (KYC) Norms: Indian regulations require investors to complete the KYC process, providing identity and address proof to comply with anti-money laundering and terrorism financing laws.Taxation: Investors should understand the tax implications, including long-term and short-term capital gains tax, as well as dividend distribution tax, associated with their investments in Indian index funds.Foreign Currency Restrictions: Compliance with SEBI regulations prohibits asset management firms from accepting foreign currencies. NRIs must convert and transfer their foreign funds into Indian rupees through an NRO or NRE account.Reporting Obligations under FATCA: NRIs should be aware of FATCA’s reporting obligations on Indian mutual funds. FATCA requires certain fund houses to disclose foreign assets held by U.S. residents for tax purposes.Lucknow Wealth Management

Below is a breakdown of the top-performing index funds to take part in India’s growth story:

Benchmark: BSE SensexAUM (cr): ₹4636Expense Ratio: 0.4%Fees: Entry Load: NA, Exit Load: NA, Management Fees: NAReturns: YTD Return: 2.04%, 1-Year Return: 16.34%, 3-Year Return: 27.45%, 5-Year Return: 13.07%Tracking Error: 1-Year Difference: -0.49%, 3-Year Difference: -0.59%, 5-Year Difference: -0.62%e

Benchmark: Nifty 50AUM (cr): ₹10615Expense Ratio: 0.3%Fees: Entry Load: NA, Exit Load: NA, Management Fees: NAReturns: YTD Return: 1.45%, 1-Year Return: 15.47%, 3-Year Return: 27.68%, 5-Year Return: 12.61%Tracking Error: 1-Year Difference: -0.36%, 3-Year Difference: -0.39%, 5-Year Difference: -0.39%

Benchmark: BSE SensexAUM (cr): ₹754Expense Ratio: 0.75%Fees: Back Load Fee: 0.25%, Redemption Fee: 0.25%Returns: YTD Return: 2.05%, 1-Year Return: 16.36%, 3-Year Return: 27.37%, 5-Year Return: 13.10%Tracking Error: 1-Year Difference: -0.90%, 3-Year Difference: -0.89%, 5-Year Difference: -0.96%

Benchmark: Nifty 50AUM (cr): ₹3829Expense Ratio: 0.5%Fees: Entry Load: NA, Exit Load: NA, Back Load Fee: 1.00%, Redemption Fee: 1.00%Returns: YTD Return: 2.43%, 1-Year Return: 15.45%, 3-Year Return: 27.59%, 5-Year Return: 12.42%Tracking Error: 1-Year Difference: -0.60%, 3-Year Difference: -0.81%, 5-Year Difference: -0.94%

Benchmark: BSE SensexAUM (cr): ₹954Expense Ratio: 0.27%Fees: Entry Load: NA, Exit Load: NAReturns: YTD Return: 1.91%, 1-Year Return: 16.14%, 3-Year Return: 27.06%, 5-Year Return: 12.86%Tracking Error: 1-Year Difference: 0.47%, 3-Year Difference: 0.71%, 5-Year Difference: 0.60%

When comparing top Indian index funds, here are some key factors to consider:For the BSE Sensex benchmark:HDFC Index Fund – S&P BSE Sensex Plan has consistently higher returns (27.45% and 13.07% over 3 and 5 years) and a higher AUM of ₹4636 crores.Nippon India Index S&P BSE Sensex has similar returns (27.37% and 13.10%) but a lower AUM of ₹754 crore. It also has a higher expense ratio of 0.75%ICICI Prudential S&P BSE Sensex Index Fund has slightly lower returns (27.06% and 12.86%), a low AUM of ₹954 crores, and an expense ratio of 0.27%.For the Nifty 50 benchmark:UTI Nifty Index Fund offers competitive returns (27.68% and 12.61%), a lower expense ratio of 0.3%, and a substantial AUM of ₹10,615 crore.SBI Nifty Index Fund has slightly lower returns (27.59% and 12.42%), a higher expense ratio of 0.5%, and an AUM of ₹3,829 crore.

HDFC Index Fund is a strong choice for the BSE Sensex benchmark, with a low tracking error and consistent returns. UTI Nifty Index Fund stands out for the Nifty 50 benchmark, offering strong returns, a lower expense ratio, and a substantial AUM.

Investors should evaluate long-term returns, expense ratios, and fees to compare index funds. They are an attractive choice for those seeking to benefit from India’s emergence as an economic powerhouse.Nagpur Investment

Inri, backed by Y Combinator, is an investment platform dedicated to NRIs & OCIs to invest in Indian markets. Inri is like Wealthfront for India, making investing in India fast and hassle-free.

Chennai Investment

Q. You have built a formidable and respected brand in Indian aviation. It is going to integrate with a much bigger and older brand (Air India), which has so far not been celebrated for service excellence. How do you see the merger shaping the new Air India brand?

In the aviation business, you need scale, and if you look at the Air India order book, it gives us a chance to expand and grow pretty fast. That is the rationale and it makes perfect sense.

Yes, we (Vistara) have managed to have a good standing in the Indian consumer space. If you look at it objectively, as you mentioned, Air India has so far not come to that level of excellence. But the good thing is that now we have competition approvals, our people can discuss and share knowledge and experience. And the intention and plan is to bring Air India up to the same levels as Vistara. I would say that the expertise at Vistara is crucial for that to happen, because we’ve actually burnt our fingers, we’ve learnt things the hard way, and it’s only fair that we transfer that knowledge since the shareholders are the same.

Yes, that’s the process, it could be a bit tough in the short to medium term because any integration is complicated. But the shareholders ( and Singapore Airlines), myself, Campbell (Air India CEO Campbell Wilson), are all on the same page that Air India should, and will get to that level, if not better.

QKanpur Stock. What is the current status of the integration and merger between Vistara and Air India?

The first set of approvals is competition-related and the CCI (Competition Commission of India) has already approved the merger, and so have most other jurisdictions. We have a few pending, Singapore being one of them. I think that is the last one pending, which we hope to get latest by March. The next one is NCLT (National Company Law Tribunal), which is the official merger approval from the Ministry of Corporate Affairs, and that process is also ongoing. We are confident that that should also come through by the first quarter or the first half of this year. The last one is the DPIIT (Department for Promotion of Industry and Internal Trade) approval. We expect all the approvals to come by the middle of this yearPune Investment. Once all these legal approvals are in, the operational merger will start. If all goes right, and subject to further approvals from the ministry (of civil aviation) and , we expect things to take another 12 months or so. So roughly, the timeline for the merger is 2025.

QJaipur Investment. Air India is an older brand that has a strong recall value globally, while Vistara is seen as the better brand in India. Would it not be better to have all international operations under the Air India brand and domestic under Vistara, instead of merging the brands as well?

If you have separate AOCs (Air Operator Certificates) or separate airline registrations, you have to have separate machinery—post holders, specific safety and operational apparatus, etc. It is a lot more efficient if you combine these together instead of having two airlines. Also, one brand makes it a lot more seamless for the customer, particularly on the domestic-to-international connections. So, those are some of the considerations. In the grand scheme of things, with India growing so fast, you will have a lot of feed into the international segment from domestic. So, it makes even more sense to have a single entity.

Q. Mergers can be quite messy when it comes to people integration. How is the morale among Vistara employees about what the future holdsChennai Stock? Are there concerns and anxieties around possible staff restructuring and their roles in the merged entity?

The communication from me, Campbell, as well as the board and the shareholders has always been that this is a merger for growth. We are not merging to cut costs. In fact, if anything, the costs are going to go up 3X because the number of aircraft are going to go up that much. So, there is not going to be a dearth of opportunities in the bigger scheme of things. We hope that that message goes through.

Q. Have you started the process of charting out growth paths for your crew in view of the integration, considering there will be more opportunities to transition to wide-body aircraft in the merged airline?

Wherever it’s possible legally and from a compliance perspective, those things have happened. We’ve had town halls with pilots to tell them what is the progress path as everyone wants to ultimately fly on the wide-body aircraft. If you look at the world today, there are not many airlines that give you this opportunity. We have a mix of wide and narrow-body aircraft, and everyone gets a chance, subject to requirement and skill, to move to the wide-body fleet. The principles have been charted out and I think the process and the operational transfer of the pilots will start once we have the approvals.

Q. Despite the integration with Air India under works, Vistara has not slowed down in terms of flight launches and taking aircraft deliveries. Could you talk us through the strategy?

AS I mentioned earlier, the shareholders are the same and the aircraft are here, so you need to deploy them. You cannot keep them on ground. And there is demand, especially for international travel. In fact, around 35 per cent of our capacity is deployed for international flights and that is what we are focusing on. That process will continue. We have three more aircraft that are to be delivered by March or April of 2024, taking the Vistara fleet to 70 aircraft.

The credit goes to my team, because despite all the so-called anxieties, thankfully, they have not let the ball down. They have not let any of us down.

QKanpur Wealth Management. The government has come out with new FDTL (flight duty time limitations) guidelines that are slated to take effect from June 1. How many additional pilots would be required to meet the new norms without affecting the network? Do you foresee capacity cuts?

The rough calculation across the industry is that, as an industry, we need 15 to 20 per cent more pilots, assuming you want to maintain the same network. It could be a scenario where, if you need to comply with these rules by June 1 with the same number of pilots, you will have to shrink your network. For us (Vistara), the impact may be slightly lesser because we are not a low-cost carrier, so we don’t operate so many flights in the midnight hours. But having said that, given the current mandate of compliance by June 1, it basically means that you will have to cut back on capacity. So, there might be aircraft sitting on the ground, or it basically means you have to ramp up the pilot situation, which is something we are all working towards.

The usual lead time (for getting newly-hired pilots ready to operate flights) is about six months. The process (of onboarding more pilots), in fact, had started before (the new were announced). So, we will have to see to what extent we are successful.

Q. Any clarity yet on what your role might be in the merged airline? Or are you looking to go back to Singapore Airlines?

Agra Investment

India is now towards the end of its six-week long general election process. The 543 Lok Sabha seats, along with the mandates of four state governments, are subject to change, with the election results to be finalised on the 4th of June. The policy platforms of both the incumbent governing coalition, the National Democratic Alliance (NDA), and its major opponent, the Indian National Developmental Inclusive Alliance, are both more reformist and forward looking. Apart from the possibility of one of these two parties winning absolute majority, there is a third possible election outcome of a mixed mandate, which could bring about uncertainty in the political scenario. Markets as of now seem to be discounting a third consecutive win for the Modi-led NDA.

Historically, Indian election results tend not to impact bond markets in a significant manner, though it is possible that we may see some volatility in currency and rates around election time. India’s bond markets benefit from a macro framework that has been strengthened by continuing reforms over the past three decades – some recent examples include the Goods and Services Tax, digitalisation of payments, establishment of the Monetary Policy Committee (MPC) and its inflation-targeting regime, and an increasing fiscal emphasis on infrastructure development. Given the strong macro backdrop, any volatility in markets can be an opportunity for a consolidation of positions.

Inflation trending lower

There are some favourable signs indicating that inflation is already trending lowerMumbai Investment. A notable encouraging factor is the Indian Meteorological Department’s prediction of an above-average monsoon rainfall in 2024, estimated to be 106 per cent of the long-term average, which brightens up prospects for good harvest and is thus helpful for food inflation. Also, the El Nino and La Nina effects of the current year might not be as disruptive as previously projected. As seen in Fig. 1, food and eatables are the most substantial component of consumer price inflation.

Oil and energy prices is another component that is crucial to inflation numbers, given India’s current reliance on imports to meet 80 per cent of its national oil demand. To note, is India’s focus on expanding its renewable energy capacity to fulfill 50 per cent of national electricity demand by 2030, potentially reducing its reliance on oil imports in the longer-term.

Given that the RBI projects that inflation will be around 4.5 per cent for FY2025, we expect the Indian central bank to remain watchful on the inflation trend. We expect the RBI to hold off on any rate cuts until headline inflation has trended below the mid-point of the target band. Core inflation (excluding food and fuel) has already been trending below 4 per cent. The RBI is expected to remain patient on rate easing and may only act in the last quarter of FY2025.

Fig. 1: Food is a major component of inflation

CPI inflation components

JPMorgan’s index inclusion is a pivotal event for India’s bond market, which is expected to result in about USD 25bn of inflows into the asset class through index tracking passive funds.1 Bloomberg Emerging Market Local Currency Government Index is also confirmed to add India in early 2025, leading to another estimated USD 5bn of inflows. We believe the potential inclusion of India bonds by Bloomberg Global Aggregate Index could also materialize in the next few years and lead to another USD 20-25bn of inflows.

Apart from these passive inflows, we are seeing more interest from active investors in India bonds as increasingly more investors are discovering an under-explored market. This may easily match the passive fund activity and we expect to see similar (about USD 50 billion) flows into active funds as wellBangalore Investment. Thus, the increased interest in India bonds from both passive and active investors may add another USD 100bn of flows into the asset class over the next 3-5 years. From the perspective of a global investor, index inclusion of India bonds could become a catalyst for strategic allocations.

We believe that there is a strong case for strategic allocations into India bonds. The asset class offers portfolio diversification benefits and value. The India bond market is adequately large – in fact, India’s government bond market, sized at USD 1.4 trillion, is amongst the largest within emerging markets2 – and is also reasonably liquid, with daily liquidity varying from USD 2-4bn of market volume for government bonds. Importantly, the market operates against a backdrop of macroeconomic stability and conducive monetary policies.

While this inclusion is only applicable to government bonds, it should be noted that the large positive inflows are expected for the rest of the bond market. Since the index inclusion announcement in September 2023, the India bond market has already attracted USD 11bn of net foreign inflows3 – well before the official start date of index inclusion. Index inclusion should bring about medium-term support for various segments, including corporate bonds.

Fig. 2: Net demand and supply of government bonds (ex of RBI)

Index inflows are also expected to benefit the demand and supply dynamics of India government bonds. The demand supply equation has shifted towards more demand (ex of RBI) than supply in FY2024 and FY2025. We estimate that the demand supply wedge has widened due to index related bond demand as well as lower fiscal deficit (lowering the supply of bonds). This should lead to a downward move in bond yields.

In the HSBC India fixed income strategy, we have increased duration in our India government bond holdings, which we believe will be the first among India bonds to reap the benefits from the widening demand-supply gap. We have also added to our position in USD bonds out of the expectation that US rates may ease in the medium term from the recent spikes. We have not increased our position in corporate bonds as spreads in this space are relatively unattractive.

Policy credibility leading to rates trending lower: The investment case for India bonds remains compelling over the medium to long term. While in the period between 2010-2016, India 10-year government bond yields traded above 8 per cent with occasional spikes into the 9 per cent plus range, the recent 7-year period since 2017 has seen yields hardly move even above 8 per cent – in contrast US 10-year government bonds moved from 0.5 per cent to 5 per cent in the same period.4 Hence, the spread between India and US 10-year government bond yields has drifted down to about 265bp now.4 In our view, this is a trend that is here to stay and can be ascribed to increased policy credibility.

Performance: With the index inclusion around the corner, it is noteworthy to compare the performance of India with emerging market bonds as well as global bonds. India has meaningfully outperformed both of these markets on a USD unhedged basis, in the past 10 years (Fig. 3).

Fig. 3: India bonds have outperformed global and EM bonds (unhedged USD)

Index performance: 30-Apr-2014 = 1005

Low correlations: An advantage that India bonds offer is that of portfolio diversification, as they exhibit low correlations with other asset classes – all the more valuable in the heavily correlated world we are in. India bonds’ correlation against global bonds in the past 10-year period is only 0.11.6

Relatively high yields: India government bonds yield 7 per cent-7.50 per cent and are among the highest yielding bond markets, barring a few markets such as Brazil. Stable currency outlook: The other critical leg of the value proposition is the currency. Our outlook on the Indian rupee is positive, supported by a strong macroeconomic environment and healthy FX reserves buffer. Moreover, the increasing prevalence of manufacturing and continuing strong services exports, along with growing investment flows (including those driven by index inclusion), will lend long-term support to the strength of the rupee. In the more immediate time horizon, the RBI has shown proactiveness in stabilizing the rupee, using its ample FX reserves.

We believe that these factors combined with macroeconomic support and robust regulatory framework form a strong investment case for standalone and strategic allocations into India bonds.

Chennai Stock