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Mumbai: Global index services provider MSCI has included 13 Indian stocks in its Global Standard Index and removed three. That takes the total count of domestic stocks on the MSCI indices to 146, up from 136. The change is scheduled for May 31 and India could potentially witness an inflow of $2.5 billion from global passive funds, the highest among any emerging market in the current index rejig.Global passive funds, such as exchange-traded funds, structure their portfolios based on these indices. Any change in composition prompts these funds to adjust their allocations. The newly included stocks are JSW Energy, Canara Bank, Indus Towers, PB Fintech, Sundaram Finance, and NHPC. Berger Paints has been dropped, while Indraprastha Gas and Paytm's parent, One 97 Communications, have been downgraded to the small-cap index."India has once again achieved a major milestone in this rejig, as its representation in the MSCI EM Index is set to increase from the current 18.3% to closer to 19%," said Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research. "The adjustments slated for May 31 could witness a net inflow of upwards of $ 2.5 billion in FII passive flows."110161465 Weight raised for some stocks Online insurance aggregator PB Fintech, which operates Policybazaar, is likely to see an influx of ₹2,400 crore ($149 million) with the MSCI inclusion. Sundaram Finance and NHPC could attract an inflow of about ₹2,000 crore from passive funds. Similarly, Phoenix Mills, Indus Towers and Bosch's local unit are anticipated to receive between ₹1,500 crore and ₹2,000 crore.Berger Paints, Indraprastha Gas and Paytm are expected to see an outflow of over ₹2,500 crore.Also, some stocks such as AU Small Finance, Vedanta, Macrotech and Zomato have seen an increase in weight and, as a result, could see an inflow of ₹300 crore to ₹700 crore.Housing Urban Development Corp., Vendant Fashion, RR Kabel, Gillette India and Force Motors are among 29 stocks that have been added to the small-cap index. About 15 stocks, including Alok Industries, Brightcom, Polyplex and Greaves Cotton have been removed from the index.

Bain Capital has teamed up with Singapore’s Temasek to compete with Blackstone-led consortium for a controlling stake in Haldiram Snacks Food Pvt Ltd as large buyout funds vie for what could be the largest private equity acquisition in India so far.The Bain and Temasek combination submitted a non-binding offer late last week valuing India’s largest snack and convenience foods company at $8-8.5 billion (Rs 66,400-70,500 crore), after initially engaging with the founding family of the 87-yearold brand separately, said people aware of the matter.ET was first to report on May 14 that Blackstone, the world’s largest private equity fund, had teamed up with Abu Dhabi Investment Authority (ADIA) and Singapore sovereign wealth fund GIC for a bid to acquire up to 76% of the company.Temasek is a limited partner in Bain’s global funds, as are ADIA and GIC. Last November, Bain completed the final close of its fifth panAsia private equity fund at $7.1 billion, its largest for the region, exceeding its target by 40%. 110157193Bain was intermittently engaged in bilateral discussions with the Nagpur and Delhi factions of the Agarwal family that runs Haldiram to buy into the company over the last seven months as the group was finalising a pan-India restructuring plan. The discussions that picked up toward the end of 2023, along with factory visits and management meetings, were more focussed on a minority investment. But the founding family is now willing to offload a majority stake after merging its snacks business and hiving off its restaurant chain into a separate company that it will retain. The next generation of the Agarwal clan wants to pursue other interests.The suitors as well as the Haldiram family are aiming to time the transaction to coincide with the National Company Law Tribunal (NCLT) approved merger that’s expected in the next three-four months. The Competition Commission of India (CCI) had approved the merger plan last April.Depending on the final stake on offer and valuation, Bain may rope in other LPs and partners and form bigger consortiums, something that Blackstone may also do. “But both are clear that they want a change in management control,” said one of the persons cited.This is the first time Bain and Temasek are working together on a deal in India. In the past, Bain has often teamed up with GIC for coinvestments.Bain and Temasek declined to comment.Haldiram CEO KK Chutani told ET, “The company has no comments to offer.”Chutani, former chief executive of Dabur International, was appointed CEO of Haldiram last summer, putting a professional at its helm for the first time.The submission of nonbinding bids doesn’t mean final negotiations will be successful, said people involved in the transaction on condition of anonymity.Mint first reported on May 7 that Bain and Temasek are competing to buy a majority stake in Haldiram Snacks.“The biggest problem in this transaction is the size and the premium expectation by the Agarwal family,” said a PE executive who had evaluated the deal but passed on it.

Mumbai: It may not be advisable to change equity mutual fund schemes while investing through systematic investment plans (SIPs) based on recent best performers as occasional switching across products has resulted in underperformance.A study by Whiteoak Capital Mutual Fund for the last 19 years shows that an investor who started an SIP in a mid-cap or small-cap index fund in April 2005 and stuck to the category for 19 years earned higher returns than an investor who changed the SIP annually based on the best-return generating category in the previous year.An investor, who started with an SIP in a mid-cap fund in April 2005 and subsequently at the start of each financial year switched to the best-performing fund of the previous year across various categories till April 2024 would have earned an annualised return of 15.5% in the period. Now, if she remained invested through SIPs in the midcap index fund only during the period under review, she would have earned 18.1%."Investing based on past performance lead to suboptimal returns," said Vineet Nanda, founder, SIFT Capital. Nanda said investors should do SIPs for a long-term horizon of 5-20 years, as compounding benefits start trickling in only after 7-8 years. 110160931"These SIPs should be monitored regularly, and they should be changed if there is a problem in the quality of the portfolio or an abrupt change in style of management by the fund house," he added.Similarly, an investor who started with a small-cap fund and kept switching would have earned a return of 15.1% on an annualised basis. Had she stuck with the SIP in the small-cap index fund, it would have earned 16% per year.Retail investors often tend to chase the best-performing schemes of the recent past. Financial planners say in this process, they tend to chase investment themes that have already run up and often miss out on the best potential returns.For example, an investor, who chased performers, would have started an SIP in a midcap index fund in April 2005, moved to a large- cap fund in April 2007 then to a small-cap fund in April 2010, and again to a large-cap scheme in April 2011. The study shows from April 2005 to April 2024, SIPs in the large-cap segment, represented by the Nifty 50 TRI, have been the top performers seven times. SIPs in the smallcap, represented by the Nifty Smallcap 250 TRI, and the midcap index, represented by the Nifty Midcap 150TRI, have been top performers six times each.