Business News

Can a monthly SIP of Rs 20,000 turn your investment into Rs 1 crore? Yes. ETMutualFunds did some data crunching and found that a small cap fund actually managed to do just that.Quant Small Cap FundQuant Small Cap Fund turned the monthly investment of Rs 20,000 to Rs 1 crore in a 10-year horizon. If an investor invested Rs 20,000 monthly in this small cap scheme starting from May 15, 2014, then the investor would have earned an XIRR of 27.24% in a 10-year period. Quant Small Cap Fund manages an asset base of Rs 20,164 crore as of April 2024. The scheme invests 64% in small cap, 25% in large cap, and 10% in others (including cash and cash equivalents). The scheme is managed by Ankit Pande, Vasav Sahgal, and Sanjeev Sharma. <iframe title="Equity Mutual Funds: 10 year performance" aria-label="Table" id="datawrapper-chart-tcL4y" src="https://et-infographics.indiatimes.com/graphs/tcL4y/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="518" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script>ETMutualFunds further analysed how other small cap schemes that have completed 10 years of existence managed to grow the monthly investment of Rs 20,000. Also Read | Want to know how many years will your investment take to double? Use Rule 72There were around 13 small cap schemes that have completed 10 years of existence in the market. These 13 schemes delivered an XIRR ranging between 15.79% - 25.49%. A monthly investment in these 13 schemes would have grown between Rs 54.53 lakh - Rs 91.78 lakh in a 10-year period. Nippon India Small Cap Fund, the largest scheme in the small cap category, turned the monthly investment of Rs 20,000 to Rs 91.78 lakh with an XIRR of 25.49%. HSBC Small Cap Fund turned the monthly investment into Rs 77.54 lakh with an XIRR of 22.36%Axis Small Cap Fund and Kotak Small Cap Fund turned monthly investments into Rs 72 lakh each in the last 10 years. Aditya Birla Sun Life Small Cap Fund turned the monthly investment of Rs 20,000 into Rs 54.53 lakh with an XIRR of 15.79%We considered all small cap funds that have completed 10 years in the market, including both regular and growth options. Also Read | PPFAS Mutual Fund: ITC, Power Grid, and Coal India among top 10 stock holdings in AprilNote, the above exercise is not a recommendation. The above exercise was done to find which small cap scheme turned a monthly investment of Rs 20,000 to Rs 1 crore in the last 10 years. One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goal before making investment decisions.(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@timesinternet.in alongwith your age, risk profile, and twitter handle.

In a volatile May when S&P BSE Sensex has slipped 566 points or 0.75%, silver has outsmarted not just the headline index but also its shinier peer gold, and Bitcoin. The white metal has jumped by nearly 11.29% or over Rs 9,580 per kg in this month so far as its industrial appeal returns along with renewed hopes of at least two interest rate cuts, this year.Silver's rally over the first fortnight in the ongoing month accounts for nearly 60% of the gains it has recorded in 2024 so far. It is up by 21% or Rs 16,000 per kg. On Friday, July silver futures on the MCX hit a lifetime high of Rs 90,391. In contrast, Sensex started May at 74,482.78 and on Friday, May 17 finished at 73,917.03. Gold in this period has gained 4.45% or Rs 3,135 per 10 grams and its year-to-date gains have surmounted to 16.38% or Rs 10,359. Bitcoin, which trails silver and gold, has fared better than Sensex with gains of 4% or $2,605 in the same period. Silver surge factorsAnuj Gupta, Head Commodity & Currency at HDFC Securities lists Street's Fed rate cut anticipation along with improving global manufacturing activity as top triggers. "Following a period of consolidation in industrial metals, there has been a notable uptrend in recent times as global manufacturing activity has improved. This is a positive development, contributing to the upward movement of silver prices," Gupta said. The new all-time highs dwell on expectations that the metal is headed for a fourth year of structural deficit while demand is expected to rise to 1.20 billion ounces in 2024 owing to its use in green economy applications, particularly in the photovoltaic sector, Naveen Mathur, Director - Commodities & Currencies, at Anand Rathi Shares and Stock Brokers said as he sees the demand uptick by around 20% in 2024.Mathur recounted stockpiles tracked by the London Bullion Market Association (LBMA) falling to the second-lowest level in April and leading to bullish buying. “For the rest of the year we anticipate this bull run to remain amid intermittent corrective price moves with the US Fed resorting to rate cuts in the second half of the year along with a weakening dollar index could drive higher investment demand in white metal,” Mathur added.“The industrial demand is expected to improve from China in H2 and the latest industrial production of 6.7% for April gives us confidence that the silver rally will sustain this year,” analyst Jigar Pandit, Head Commodity & Currency Business at Sharekhan by BNP Paribas said. Silver's May rise also comes on the back of Akshaya Tritiya (May 10), an occasion when gold and silver purchases are considered auspicious.Fed factorMathur is of the view that the US Fed resorting to rate cuts in the second half of the year along with the weakening dollar index could drive higher investment demand in the white metal, notwithstanding two downward revisions instead of three anticipated at the beginning of the year.Precious metals tend to run higher in lower interest rate regimes due to the availability of liquidity and there are 80% chances of September rate cuts, Pandit of Sharekhan said, adding that silver was finding support from the broader rally in base metals as supply side concerns loom. "Silver market itself is expected to show a deficit for the 3rd straight time in 2024," Pandit opined.OutlookThe domestic prices are expected to take cues from the international rates. On the Comex, silver futures are hovering near the $29.97 mark. Gupta of HDFC Securities expects silver to rally toward $34 to $36 per ounce in the short term and states that a decisive breakout above the $36 level will open further upside to the $42 level. In his view, the support lies at $26-24.80. He remains the most bullish on silver while placing the long-term target at Rs 1,10,000 per kg. Mathur of Anand Rathi estimates a target of Rs 1,00,000.Strategy Analysts, though bullish, are quick to point out that minor corrections cannot be ruled out.Pandit expects silver to trade between Rs 85,000 and Rs 88,300 in the near term and recommends buying on dips, with the next resistance seen at Rs 92,700.Meanwhile, Mathur sees a dip around Rs 85,000–84,000 on MCX July futures. He expects this to be a short-term buying opportunity, with 15–20 % returns likely in the next 1–2 years.A 15% to 20% allocation in silver should be done by aggressive traders while 10% and 5% by moderate risk takers and conservative investors, respectively, Gupta recommends.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Mumbai: The Shapoorji Pallonji Group (SP Group) is offering ₹400 crore more to the bondholders of group company Goswami Infratech, in exchange for their consent to extend the deadline to meet certain covenants on ₹14,300 crore of borrowings.The company, which has to pay ₹1,400 crore in interest this month, has sought a four-month window to allow it to sell some assets and ensure the payment at 18.75%.In a letter seeking consent from bondholders on May 18, Goswami Infratech has requested them to extend the deadline to September 30, 2024. This involves updating the agreement to push back the date when extra costs or higher interest rates would apply under the original agreement. The extension will give it more time to manage the debt without facing immediate financial penalties."There was a pushback from some holders of the bond and, therefore, the SP Group has tried to sweeten the deal for them," said a person in the know. Large private credit funds including Varde Partners, Davidson Kempner, Canyon Capital, Cerberus Capital and Deutsche Bank had invested in the rupee-denominated bond, borrowed primarily against the SP Group's shares in Tata Sons and Afcons. Goswami Infratech has informed its bondholders that the SP Group is in the process of securing a loan facility from a new lender through its main investment vehicle, Sterling Investment Corp. "However, even upon consummation of the transaction with the new lender, it shall only be possible to repay a part of the existing sterling indebtedness as the amount available from the new lender shall be less than the outstanding Sterling indebtedness," it said.On May 10, it had written to the bondholders seeking to tweak a debt covenant. Unlike that letter, the company has now offered a higher payout to push back the trigger date when higher interest rates would apply.In June 2023, Goswami Infratech raised ₹14,300 crore through zero-coupon bonds maturing in April 2026, offering an 18.75% redemption premium. These bonds included a so-called 'most favoured nation' (MFN) clause, suggesting that if any SP Group affiliate borrows at a higher rate after May 26, 2024, Goswami Infratech must offer the same return to its bondholders. The date, May 26, 2024, is referred to as the 'trigger date'.According to the debenture trust deed, the MFN trigger event is defined as the earlier of May 26, 2024, or the date of raising sterling indebtedness. However, the company has indicated that it may not be able to fulfil this obligation as specified.Also, the bond terms stipulate that yields will rise by 200 basis points if Goswami Infratech fails to raise funds by listing its affiliate company, Afcons Infrastructure, by the end of June. The SP Group was to repay part of its debt by monetising Afcons Infrastructure, which has already filed a draft prospectus with the market regulator for listing. Earlier it had to monetise Gopalpur Port by December 2023, which it monetised in March 2024 by selling it to Adani Ports.