Franklin India Low Duration Fund Files Draft with SEBI

Franklin Templeton Mutual Fund has submitted a draft to SEBI for the Franklin India Low Duration Fund (FILDF). This is an open-ended debt scheme that will invest in low-duration debt and money market instruments. The scheme will maintain a Macaulay duration of 6 to 12 months, categorising it as a short-term debt fund.

NFO Details

The New Fund Offer (NFO) opens on February 25, 2025, and closes on March 5, 2025. The scheme will reopen for continuous purchase and redemption on March 7, 2025. Units will be available at ₹10 per unit during the NFO period. The minimum investment amount is ₹5,000, with additional purchases allowed in multiples of ₹1.

The scheme aims to generate income by investing in debt securities, corporate bonds, PSU bonds, and money market instruments. The benchmark for this fund is the NIFTY Low Duration Debt Index A-I.

Risk Classification

As per SEBI guidelines, the fund falls under Potential Risk Class (PRC) B-III, which indicates moderate credit risk and relatively high interest rate risk. This classification means that while the fund will invest in relatively safer instruments, its value may be affected by fluctuations in interest rates.

Asset Allocation

The fund will primarily invest in debt and money market securities, with a securitized debt exposure of up to 50%. It may also use derivatives for risk management. The scheme does not propose to invest in foreign securities, REITs, or InvITs.

There is no exit load for this scheme. The expense ratio will be aligned with SEBI regulations, with a maximum cap of 2% on the first ₹500 crore of assets under management (AUM).

Redemption and Liquidity

Investors can redeem units on any business day, with proceeds expected within three working days. The fund aims to maintain sufficient liquidity to meet redemption requests. The scheme will be managed by Chandni Gupta and Rahul Goswami, who have experience in fixed-income investments.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Canara Robeco Multi Asset Allocation Fund Filed Draft With SEBI

Canara Robeco Mutual Fund has submitted a draft offer document to SEBI for its upcoming Canara Robeco Multi Asset Allocation Fund. This is an open-ended hybrid scheme that plans to invest in multiple asset classes, including equities, debt instruments, and commodities like gold and silver ETFs.

Asset Allocation Breakdown

The fund will follow a structured asset allocation model:

  • Equities and Equity-related Instruments: 65%-80%
  • Debt and Money Market Instruments: 10%-25%
  • Gold and Silver ETFs: 10%-25%

It also invests up to 10% in units issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The fund’s exposure to derivatives will be capped at 50% of net assets, mainly for hedging and portfolio balancing purposes.

Liquidity and Redemption Process

As an open-ended scheme, investors will be able to subscribe or redeem units on any business day. The fund will not be listed on stock exchanges. Redemption proceeds are expected to be processed within three working days, barring exceptional situations that may warrant additional time.

Benchmark Composition

To assess the fund’s performance, it will be benchmarked against a mixed index for exposure across various asset classes.:

  • 65% BSE 200 TRI
  • 20% NIFTY Short Duration Debt Index
  • 10% Domestic Gold Price
  • 5% Domestic Silver Price

Investment Objective

The scheme aims for long-term capital appreciation by diversifying across asset classes. However, as with any mutual fund, returns are not guaranteed. Investors should assess their risk appetite before investing.

Key Details

  • Minimum Investment: ₹5,000 for lump sum purchases
  • SIP Investment: ₹1,000 per month or ₹2,000 per quarter
  • Exit Load: 1% if redeemed within 365 days for amounts exceeding 12% of allotted units; Nil for redemptions beyond one year.

The equity portion will be managed by Ennette Fernandes and the debt segment will be overseen by Kunal Jain, who has experience in fixed-income securities.The fund’s launch date and subscription details will be provided once SEBI grants approval. 

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bandhan Hybrid Equity Fund Renamed To Bandhan Aggressive Hybrid Fund

Bandhan Mutual Fund has announced that the Bandhan Hybrid Equity Fund will now be called Bandhan Aggressive Hybrid Fund, effective March 19, 2025. The change is limited to the name, and there are no modifications in the investment approach or portfolio composition.

Structure and Exit Load

The fund requires a minimum investment of ₹1,000, with the same amount needed for additional contributions. SIP investments start at ₹100, while the minimum withdrawal limit is ₹500. Investors need to provide at least six cheques to initiate SIPs. The minimum balance requirement is ₹1.

The exit load structure remains unchanged. If investors redeem more than 10% of their units within a year, they will be charged 1% as an exit load. There is no lock-in period, making it flexible for those who may need liquidity.

Performance and Management

Launched on December 30, 2016, the fund has delivered a return of 12.84% since inception. It follows the CRISIL Hybrid 35+65 Aggressive Index as its benchmark. The assets under management (AUM) stand at ₹786 crore as of January 31, 2025, with an expense ratio of 1.03%. It falls under the very high-risk category according to the riskometer and is graded as above average in risk assessment.

 The fund is managed by Prateek Poddar, who oversees the allocation between equity and debt.

Portfolio and Dividend History

The scheme primarily invests in equity and equity-related instruments for long-term capital appreciation, along with debt securities and money market instruments. It follows an aggressive hybrid strategy, typically allocating a higher portion to equities while maintaining a debt component for risk management.

The most recent dividend payout under the IDCW plan was ₹0.337 per unit, recorded on December 30, 2024. While the name is changing, the fund’s core investment philosophy remains the same.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Policybazaar Partners with HDFC Life for a Term Plan with 100% Claim Assurance

Policybazaar has collaborated with HDFC Life to introduce a new term insurance plan, HDFC Life Click 2 Protect Ultimate. The plan comes with a 100% claim settlement guarantee, aiming to address concerns related to claim rejections and to help with financial security for policyholders’ families.

Features of the Plan

HDFC Life Click 2 Protect Ultimate includes features to provide flexibility and financial benefits to policyholders:

  • Return of Premium on Maturity – If the policyholder outlives the policy term, they receive all the premiums paid.
  • Smart Exit Benefit – Allows policyholders to exit the plan and get a refund of total premiums paid (excluding taxes).
  • Terminal Illness Benefit – If diagnosed with a specified terminal illness, the death benefit is paid out in advance. This comes with a six-month waiting period.

Target and Availability

HDFC Life Click 2 Protect Ultimate is available to salaried professionals earning ₹10 lakh or more annually. The plan requires a detailed medical underwriting process for approval. It is currently offered in major Indian cities, including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, and Pune.

Claims and Transparency

The 100% claim settlement assurance is one of the primary aspects of this plan. By ensuring that valid claims are honoured, the plan aims to remove uncertainty for beneficiaries. 

Santosh Agarwal, Chief Business Officer, Life Insurance, Policybazaar, mentioned that the plan is designed to simplify claim settlements for customers. Jatin Sabhani, Chief BroCA & Digital Alliances Officer, HDFC Life, stated that the partnership aligns with their goal of enhancing financial protection for policyholders.

With a focus on claim certainty, flexibility, and additional benefits, HDFC Life Click 2 Protect Ultimate is positioned as an option for those looking for structured financial security.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Tata Power To Expand Clean Energy Portfolio with Hydropower and Nuclear Projects

Tata Power is accelerating its clean energy initiatives by expanding hydropower capacity and exploring nuclear energy opportunities. The company is also working on international projects, particularly in Bhutan, while strengthening its renewable energy portfolio within India. 

According to a Bloomberg report, Tata Power CEO Praveer Sinha stated that the company is actively evaluating new clean energy projects, including hydropower and nuclear energy.

Hydropower Expansion and Domestic Growth

As of 31 December 2024, hydroelectric power accounted for about 10% of India’s total energy capacity. Tata Power is set to enhance this sector with two new hydropower projects. The first project, with a 1 GW capacity, is expected to be operational by March 2029, followed by a second 1.8 GW project a year later.

Additionally, the company is conducting feasibility studies on two more potential projects within its existing reservoirs. Tata Power currently has an installed capacity of 14.45 GW, with nearly 40% coming from renewable sources.

The company is also looking to capitalise on recent amendments to the Nuclear Power Act by exploring partnerships with the government for small modular nuclear reactors. This move aligns with India’s increasing focus on clean energy, despite financial challenges faced by utilities in upgrading their infrastructure.

International Expansion and Infrastructure Development

Tata Power has commenced work on a 600 MW hydropower plant in Bhutan and is seeking opportunities for two additional large-scale projects, with at least one expected to begin by the end of 2025.

Tata Power will look for opportunities to set up small modular nuclear reactors in partnership with the government following recent changes to the Nuclear Power Act.

Tata Power Share Performance

As of February 10, 2025, at 3:20 PM, the shares of Tata Power are trading at ₹358.10 per share down by 2.48% from its previous closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

New Income Tax Bill to be Tabled Soon – Here’s What You Need to Know!

The Budget Session of Parliament resumed on Monday, 10 February 2025, and one of the most anticipated developments is the tabling of the new Income Tax Bill. Cleared by the Union Cabinet last week as per reports, the bill is expected to be introduced in the Lok Sabha soon. Even if it is not presented today, discussions around the bill are likely to stir significant debate in Parliament.

The Union Budget 2025 had already indicated that the Ministry of Finance would present the new tax bill to the Union Cabinet this week. At a press conference following the Budget, Finance Minister Nirmala Sitharaman expressed optimism that the bill would pass without major hurdles. The government has assured that the new legislation will be 50% shorter than the existing tax code, with improved clarity and simplified provisions.

What is the New Income Tax Bill?

The proposed Income Tax Bill aims to replace the Income Tax Act of 1961 with a modern and streamlined version of tax laws. The primary goal is to eliminate ambiguity, reduce legal complexities, and improve transparency in tax regulations.

One of the most notable aspects of the bill is its concise structure—the government intends to halve the length of the current tax legislation while ensuring that its provisions remain comprehensive. This simplification will make it easier for taxpayers to understand their obligations without relying heavily on tax professionals.

According to Finance Secretary Tuhin Kanta Pandey, the new bill will remove complex legal jargon, making interpretation simpler and reducing the scope for tax disputes. The initiative aligns with the government’s broader vision of improving the ease of doing business in India.

Key Highlights: How the New Bill Simplifies Tax Laws

1. Removal of Outdated Provisions

The current Income Tax Act of 1961 consists of 298 sections spread across 23 chapters. Over the years, multiple amendments have been made, leading to overlapping provisions and redundant taxes. The new bill aims to eliminate outdated sections and streamline the tax framework.

Notably, India has already abolished several taxes such as:

  • Wealth tax
  • Gift tax
  • Fringe benefit tax

These removals have simplified tax compliance, and the upcoming bill is expected to continue in this direction by discarding provisions that no longer serve a practical purpose.

2. Clarity Through Simplified Language

A major challenge with existing tax laws is their complex wording and extensive cross-referencing, which makes interpretation difficult. The new bill seeks to:
Use clear and direct language to make tax laws more accessible.
Reduce legal disputes caused by misinterpretation of provisions.
Ensure taxpayers can independently understand their liabilities without excessive dependence on legal professionals.

3. Lower Legal Disputes and Tax Litigation

The government aims to address long-standing tax disputes by providing greater certainty in tax provisions. Currently, many corporate and individual taxpayers are engaged in litigation due to unclear tax laws. With simplified rules and fewer ambiguous provisions, the new Income Tax Bill is expected to minimise tax-related court cases.

4. Alignment with Global Best Practices

Several developed economies have shifted to simpler tax regimes that encourage compliance and reduce tax evasion. The new bill is expected to align India’s tax structure with global standards, making it easier for both domestic and foreign investors to navigate the system.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Reliance Infrastructure Resolves ₹6,503 Crore Dispute with CPL

Reliance Infrastructure Limited has settled its dispute with CLE Private Limited (CPL) through mediation under the Bombay High Court. The resolution involves a total amount of ₹6,503.13 crore, bringing an end to the long-standing legal matter between the two companies.

Breakdown of the Settlement

As part of the settlement, ₹5,777.13 crore worth of assets and economic interests from CPL will be transferred to Reliance Infrastructure. Additionally, ₹726 crore, which was previously a decreed amount, will now be converted into a secured loan. The company has stated that the agreement includes standard legal provisions such as warranties and indemnities in its favor.

Mediation Process

The settlement was filed under the Mediation Act, 2023. Both parties submitted the agreement to the Bombay High Court’s mediation center. The company has confirmed that this is a full and final resolution of all claims and disputes between them.

No Related-Party Involvement

Reliance Infrastructure has clarified that it does not hold any shareholding in CPL, and the transaction does not qualify as a related-party transaction. The company also confirmed that the agreement does not involve any special rights related to shareholding, directorships, or capital structure changes.

Impact on Financials

The settlement allows Reliance Infrastructure to gain control over assets previously held by CPL, which could impact its financial position. However, the company has not disclosed how or when these assets will be utilized.

Company Overview

Reliance Infrastructure operates in the power, roads, and metro sectors with a focus on engineering, procurement, and construction (EPC) projects.

  • YTD Price Performance: -10.18%
  • Average Trading Volume: 201,794
  • Market Capitalization: ₹113.4 billion

As of February 10, 11:37 AM, Reliance Infrastructure Ltd is trading at ₹288.70, up ₹2.20 (0.77%) today, showing a 27.71% gain over the past six months and a 42.74% rise in the past year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Nifty Financial Services Index: HDFC Bank & Bajaj Finance Drag

The Nifty Financial Services Index (FINNIFTY) represents the performance of India’s financial sector, encompassing banks, financial institutions, housing finance companies, insurance firms, and other financial services providers. It is composed of 20 stocks listed on the National Stock Exchange (NSE) and is computed using the free float market capitalisation method, ensuring a representation of market trends based on publicly traded shares.

Market Update: FINNIFTY Trades Lower

As of 3:24 PM on February 10, 2025, the Nifty Financial Services Index is down by 0.63%. Market sentiment remains weak, with 17 out of 20 stocks in red, while only three stocks are trading in the green.

Key contributors to the decline include HDFC Bank and Bajaj Finance, which have acted as draggers for the index. However, Kotak Bank and ICICI Bank have provided some support, helping the index recover from its intraday low.

Valuation Insights: Price-to-Book Ratio Below Averages

The price-to-book (PB) ratio of FINNIFTY currently stands at 2.84, which is lower than its short-term and long-term averages. Specifically, it is below:

  • 1-month, 3-month, and 6-month averages
  • 1-year, 2-year, and 5-year averages

The PB ratio is a key valuation metric for financial stocks, offering insights into whether the index is trading above or below its intrinsic value. A lower PB ratio may indicate potential undervaluation or weaker market sentiment in the financial sector.

Performance Overview: Outperforming the Nifty50 in 2025

Despite the recent decline, FINNIFTY has outperformed the broader Nifty50 index in CY 2025, registering a 0.55% decline so far. The index delivered a nearly 10% gain in CY 2024. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Nifty Smallcap 100 Index Drops Over 2%: How Does the Valuation Look After an 11% Fall in 2025?

The Nifty Smallcap 100 Index, which tracks the performance of the small-cap segment on the National Stock Exchange (NSE), witnessed a significant decline on February 10, 2025. As of 3:08 PM, the index was down by over 2%, breaching the Budget Day low. Market breadth remained extremely weak, with 92 stocks in red and only 8 stocks trading in green.

Adding to the pressure, nearly 20 stocks in the index were seen trading down between 3% and 5%. This suggests a broad-based sell-off, significantly impacting investor sentiment in the small-cap space.

Smallcap 100 Index Underperforms 

The downturn in the Nifty Smallcap 100 Index is not an isolated event. The index has consistently underperformed the broader market in 2025 so far. On a year-to-date (YTD) basis, the Nifty Smallcap 100 Index has declined by 11.25%, while the benchmark Nifty 50 has fallen by a relatively smaller margin of 1.51%.

This underperformance highlights the heightened volatility and risk associated with small-cap stocks.

Valuation Check: How Does the Smallcap Index Compare to Historical Averages?

Despite the recent decline, valuation metrics suggest that the index is still trading at relatively higher levels. As of February 7, 2025, the price-to-earnings (PE) ratio of the Nifty Smallcap 100 Index stood at 29.79. While this is below its 1-year average PE of 30.56, it remains above the 2-year and 5-year averages, which are 26.34 and 28.15, respectively.

Performance Recap: Strong 2024 Gains Versus 2025 Decline

The recent downturn comes after a stellar performance in CY2024, when the Nifty Smallcap 100 Index outperformed the Nifty 50 by delivering a 24% return. This rally was driven by strong earnings growth, liquidity flows, and increased retail participation. However, in 2025, the trend has reversed, with small caps facing steep corrections amid shifting market conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Nifty Bank Breaks RBI Policy Day Low, Dragged by HDFC Bank and Axis Bank

The Nifty Bank Index is a benchmark that tracks the performance of the most liquid and large Indian banking stocks. Comprising a maximum of 12 banks listed on the National Stock Exchange (NSE), it serves as a key indicator for investors and market intermediaries to assess the capital market performance of Indian banks.

Nifty Bank Performance on February 10, 2025

On February 10, 2025, the Nifty Bank Index opened lower at 50,052 and continued to decline through the trading session. It slipped below the critical 50,000 mark, touching an intraday low of 48,703.10. As of 2:38 PM, the index recovered from its lows but remained under the 50,000 level, down by 0.50%.

Key Contributors to the Decline

Most of the banking stocks within the index were trading in the red, except for Kotak Mahindra Bank and ICICI Bank, which provided some support. However, HDFC Bank and Axis Bank emerged as the biggest draggers, pulling the index lower. Despite the slight recovery, selling pressure continued to weigh on the banking sector.

RBI’s First Rate Cut in 5 Years

The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points (bps) to 6.25%, marking the first rate cut in five years. Alongside this decision, the Standing Deposit Facility (SDF) rate was lowered to 6%, and the Marginal Standing Facility (MSF) rate was adjusted to 6.5%. While the move aimed to stimulate economic growth, the central bank maintained a neutral policy stance.

Despite the cut, the Nifty Bank Index slipped below the lower levels recorded during the RBI’s first-rate reduction.

Year-to-Date Performance of Nifty Bank

Since the beginning of CY 2025, the Nifty Bank Index has declined by 1.84%. However, on February 10, 2025, it exhibited relative resilience compared to the broader Nifty50 index, which saw a steeper decline.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing