ebook img

The Economic Times Wealth - May 30, 2022 PDF

26 Pages·2022·8 MB·English
by  
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview The Economic Times Wealth - May 30, 2022

T E T HE CONOMIC IMES ARE BEST DAYS FOR IT STOCKS BEHIND US? P9 www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | May 30-June 5, 2022 | 24 pages | `8 5 foreign holidays @`2 lakh For couples planning their next foreign vacation, here are some destination picks and smart budgeting options. Know Telecom Money the real, poised for divide practical growth between asset after strong parents allocation quarter and kids P8 P11 P13 cover ssttoorryy 02 The Economic Times Wealth May 30-June 5, 2022 55 ffoorreeiiggnn hhoolliiddaayyss @@ `22 llaakkhh FFor couplles pllanniing tthheiir nextt fforeiign vacation, here are some destination picks and smart budgeting options. S E G A M tions and eating local food are some of the Y I ways tourists can holistically save money,” T T E says Sabina Chopra, Co-Founder and COO, G S: Yatra Online. O OT This is the reason we have chosen shoul- H P der season and budget accommodation for our destinations. Not only are the costs low If you are a couple planning a vacation during this period, but crowds too are less. in the near future, ET Wealth offers some “Consumers can also choose stay options suggestions for travelling abroad with closer to their choice of activity or attrac- By Riju Mehta Still, we expect these to stabilise as airlines a budget limitation of `2 lakh. Though tions. Another way is to book your travel increase capacity and routes in a phased there are several short-haul options in and stays with platforms that offer higher A s Covid loosens its grip and trav- manner,” says Daniel D’souza, President & Southeast Asia that you can try, we have flexibility, ease of cancellation and modi- el guidelines across the globe are Country Head, Holidays, SOTC Travel. tried to include some destinations that may fication of bookings in case of change in relaxed, Indians have begun to Indians are vacationing across the world have seemed infeasible, including Turkey, plans,” says the Oyo spokesperson. holiday with a vengeance. This, with visits ranging from 5-10 days. “The Austria, UAE, Jordan and Indonesia. Of course, the most effective way to re- despite a rise in travel-related favourite destinations this year include With tips on cutting costs and optimis- duce your costs is by planning and booking costs. While Yatra.com claims the foreign Austria, Switzerland, France and Italy ing your spending, we have provided a in advance. While plenty of travel packages travel costs have risen by 8-10% compared in Europe; Dubai and Abu Dhabi with budget breakdown that can serve as a online offer good value for money, planning to pre-Covid prices, SOTC Travel states 40-50% growth in demand; and Turkey guide while planning your trip. Whether your own holiday gives you freedom to cu- these have gone up by 25-40% across coun- and Egypt,” says Rajeev Kale, President it’s flights, accommodation, eating or rate your own itinerary. Whichever option tries. “With strong pent-up travel demand & Country Head, Holidays, MICE, Visa, sightseeing, you can slash your costs in you choose, we hope the following pages and demand-supply imbalance, coupled Thomas Cook (India). Among short haul various ways. “Travelling during off sea- help you arrive at a decision and pick a with an increase in ATF (aviation turbine holidays, Maldives, Mauritius, Indonesia son, living in pods, paying by hour, couch destination that suits your needs and style. fuel), there has been an uptick in air fares. and Thailand are being preferred. surfing, staying off the tourist-heavy loca- Happy holidaying! cover ssttoorryy The Economic Times Wealth May 30-June 5, 2022 03 TURKEY Duration: 6 Nights / 7 Days FLIGHT 6 hours, 45 minutes direct Delhi- TIME Istanbul one-way f light Reality check! Typically takes 7 hours and 30 minutes Visit in May or October Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OFF SEASON PEAK SEASON SHOULDER SEASON TEMPERATURE (OCTOBER) 15-20 degree Celsius CURRENCY 1 Turkish Lira AIR FARE (RETURN) STAY (TRY) = `5.01 `35,477 per person Istanbul (`4,000/night); (Pick f light depending on Cappadocia (`5,000); the time taken) Antalya (`5,000) TOTAL TOTAL `70,954 `28,000 14% A mong the most visited countries in the world, Turkey straddles 35.5% both Asia and Europe. Its histor- ITINERARY ical sites, natural wonders and BUDGET 10.5% DAY 1: Fly to Istanbul. rich culture make it an appeal- ing destination. For this reason, sightsee- ALLOCATION OF DAY 2: Visit Topkapi Palace, Hagia ing will take up a big chunk of your budget, `2 Sophia Church and other sites. coming second after air fare. LAKH FOOD DAY 3: Fly to Cappadocia (565 km). AIR FARE: While booking tickets to for- VISA FEE `1,500 per eign destinations, keep in mind the time it `4,000 person/ per day DAY 4: Take a hot air balloon ride. wstiolpl sta wkiel lt coo rseta mcho.r De itrheacnt ftlhiogshet st hwaitt htaokuet p`e8r p,0er0so0n 4% 25% T`O2T1A,L000 DAY 5: Move to Antalya (420 km). more time and have layovers. For instance, 11% DAY 6: Take a day trip to Pamukkale/ Hierapolis. Delhi-Istanbul flight booked on 14 May threw up an option where the cheaper DAY 7: Fly back to Istanbul (480 km) flight for `35,477 per person took 20 hours, INTERNAL TRAVEL and then Delhi. while the more expensive flight costing INTERCITY: Istanbul- `41,234 per person took just 7.35 hours. So Cappadocia f light (`3,000 pick a flight depending on whether you per person); Cappadocia- SIGHTSEEING Istanbul want to sacrifice time or money. Antalya f light (`5,000); (cid:132) Istanbul (`15,000 with STAY: You can pick from hostels, bed & Antalya-Istanbul f light Welcome card) (`3,000) Cappadocia breakfasts, boutique and star hotels. In (cid:132) Cappadocia (`20,000) Antalya Istanbul, stay close to city centre, such LOCAL: Hire a car/ driver (cid:132) Antalya (`15,000) as in Sultanahmet, as most of the well- for `5,000-10,000 a day. TOTAL known tourist attractions like the Hagia TOTAL `50,000 Sophia Church and Blue Mosque are here. `22,000 Eminonu, Beyoglu and the more expensive Taksim Square are some other areas to Istanbul in a manner that you have the Tour. On Day 5, move to Antalya and relax Covid stay. In Cappadocia, Goreme is the centre entire day to move around. On Day 1, at the beach, then visit Hadrian’s Gate and guidelines of all action with many choices, but check visit the Topkapi Palace, Hagia Sophia Duden’s Waterfalls. The next day, take a Fully out the lesser touristy areas like Urgup and Church, Blue Mosque, Basilica Cistern, day trip to the famous calcite-laden waters vaccinated Uchisar as well. In Antalya, Kaleici and and Hippodrome, and in the evening, of Pamukkale and the nearby Hierapolis. travellers Belek are good areas to stay in. take a Bosphours cruise boat. The next LOCAL TRAVEL: Flights are a time- need to FOOD: Street food is your best option as day shop at Grand Bazaar and Egyption saving option for inter-city transfers. You submit negative RTPCR test report you get to sample local delicacies and spend market and eat out at the charming cafes. can cut cost by buying Welcome card in taken 72 hours before departure. Non-vaccinated tourists will have to less as well. Try out tantuni, lahmacun, In Cappadocia on Day 3, a hot air balloon Istanbul for two days, which cover the cost undergo mandatory quarantine for 10 kumpir, various types of kebabs, mezze and ride over fairy chimneys is a must even if of commute and tourist sites. You can also days in a hotel or a location mentioned baklava, among others. The average cost it is expensive. For rest of the sightseeing, hire a taxi for the day to see all attractions. in the declaration which includes should be `250-300 per meal, per person. including underground cities and valleys, In Cappadocia, it’s best to hire a taxi or children below 12 years. SIGHTSEEING: Plan your arrival in a good option is taking the full-day Red book a day tour in advance. cover ssttoorryy 04 The Economic Times Wealth May 30-June 5, 2022 AUSTRIA Duration: 4 Nights / 5 Days FLIGHT 8 hours, 30 minutes direct Delhi- TIME Vienna one-way f light Reality check! Typically takes 11-14 hours Visit in April or October Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OFF SEASON PEAK SEASON SHOULDER SEASON TEMPERATURE (OCTOBER) 5-15 degree Celsius CURRENCY AIR FARE (RETURN) 1 Euro = `41,844 per person STAY `80.68 TOTAL Vienna (`5,500/night); `83,688 Salzburg (`8,000); Inns- bruck (`8,000) TOTAL `27,000 T he tiny European country has 13.5% ITINERARY the shortest trip duration of 4 42% nights and 5 days as everything, DAY 1: Fly to Vienna and from flight and stay to sightsee- BUDGET check out the palaces. ing, is very expensive. In fact, VISA FEE the air fare is the highest among countries `6,500 per ALLOCATION OF DAY 2: Visit the museums and other sites. person in this list. Still, it will be money worth `2 12.5% FOOD spent to take in the luxurious palaces, old TOTAL LAKH `2,500 per DAY 3: Drive to Salzburg cathedrals and museums. You could re- `13,000 person, per day (300 km) duce your travel cost by staying in hostels TOTAL DAY 4: Move to Innsbruck and homestays, cutting on outside food, 6.5% `25,000 (140 km). and taking public transport and walking. DAY 5: Take a train back to AIR FARE: One of the best sites to book 5.5% 20% Vienna (388 km) and onward international flight tickets is Skyscanner to Delhi. as it offers cheap options, and also throws INTERNAL TRAVEL up good inter-city prices. Domestic players INTERCITY: Vienna-Salzburg Vienna like MakeMyTrip and Cleartrip are also of- train (`1,600 per person); fering discounts in their ongoing summer Salzburg-Innsbruck train sales. For instance, MMT is offering up to (`1,745); Innsbruck-Vienna SIGHTSEEING Salzburg `5,000 off on international flights, while train (`2,180) (cid:132) Vienna (`15,000) Innsbruck Cleartrip is giving a flat `1,250 per pas- LOCAL: If you buy passes, (cid:132) Salzburg (`15,000) senger off till 31 May. Combine these with this cost will be negligible. (cid:132) Innsbruck (`10,000) discounts on your credit cards to lower TOTAL TOTAL your flight cost. `11,000 `40,000 STAY: You can bring down this cost Covid by opting for cheaper hostels and ‘pen- guidelines sions’, which are essentially private menus around noon. many museums and churches in the city, rooms with breakfast. In Vienna, go for SIGHTSEEING: A good way to save money and take in the Spanish Riding School From 16 May, proof of these in the Neubau, Mariahilf, Weiden and time is to buy passes for various at- performance. The two popular options vaccination or Leopoldstadt districts; in Salzburg and tractions and public transport in advance, in Salzburg are the Mozart concert & or recovery Innsbruck, stay at Altstadt or Old Town, such as the Go City Explorer pass, Digital dinner, and the Original Sound of Music or PCR test are no longer needed for which has easier access to tourist sites. City Pass with public transportation and 24 tour. If you are not too keen on these, entry into Austria. FOOD: Since food is expensive in hour Hop-on, Hop-off bus trip, in Vienna. check out Mozart’s birthplace and visit Austria, carry your own water bottles and These are available for specific number the Hohensalzburg Palace and Mirabell TRAVEL: The cheapest option to travel finger food while travelling. Instead of hav- of days and tourist sites with entry tickets Palace, or just walk around the Old Town. within cities is to walk or take public trans- ing full meals outside, buy cheaper fresh included. So you save on commute while Since you only have a day in Innsbruck, port like trams, buses, metro or trains. food at Hofer supermarket like bread and avoiding queues at the site. In Vienna, visit visit The Hofkirche or Court Church and The national rail operator ÖBB has a coun- spreads, fruit, cold cuts and cheese. If you the Schonbrunn Palace and Gardens, the the Swarovsky Crystal Worlds. After this, trywide network of trains and its Railjet want to try local food, eat bigger meals at Hofburg Palace, Belvedere Palace and St you can walk around the Old Town and trains are the fastest for intercity routes. lunch since restaurants have cheaper set Stephen’s Cathedral. Also pick from the check out the Imperial Palace. Book in advance to lower your costs. cover ssttoorryy The Economic Times Wealth May 30-June 5, 2022 05 UAE Duration: 5 Nights / 6 Days FLIGHT 3 hours, 25 minutes direct Delhi- TIME Dubai one-way f light Reality check! Typically takes 3 hours and 40 minutes Visit in October Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PEAK SEASON OFF SEASON SHOULDER SEASON TEMPERATURE (OCTOBER) 24-35 degree Celsius CURRENCY AIR FARE (RETURN) 1 UAE Dirham `24,825 per person (AED) = `21.1 STAY TOTAL Dubai (`7,000); `49,650 Abu Dhabi (`5,000) TOTAL `31,000 15.5% O ne of the preferred holiday destinations for Indians, 25% ITINERARY the United Arab Emirates is VISA FEE DAY 1: Fly from Delhi to Dubai. continuing to pull tourists. It `6,000- BUDGET 15% makes up for its lack of natural DAY 2: Visit Burj Khalifa, Dubai 7,000 per beauty with loads of fun activities, adven- person ALLOCATION OF FOOD Mall, Aquarium and other places. ture and man-made marvels. The travel TOTAL `2 `2,500 per per- DAY 3: Go sand surf ing, visit time and cost is relatively less, but sightsee- `14,000 LAKH son/ per day old Dubai. ing is very expensive, and the visa fee is the 7% TOTAL DAY 4: Drive to Abu Dhabi (130 highest in this list of vacation destinations. `30,000 km). Visit Louvre & other sites. AIR FARE: It is best to book your tickets 4-5 months in advance for cheaper op- 12.5% 25% DAY 5: Spend the day at tions. However, while focusing on cheaper Yas Island. flights, don’t forget to check the time it DAY 6: Fly back to Delhi. Dubai takes to reach your destination, as well as the departure and arrival times. If you reach your destination in the afternoon or INTERNAL TRAVEL Abu Dhabi evening, you would have wasted an entire INTERCITY: Dubai-Abu Dhabi day. Also keep your dates flexible and opt taxi round trip (`10,000) SIGHTSEEING for fare alerts as you may get better prices. LOCAL: `15,000 `50,000 STAY: The best and most economical TOTAL TOTAL areas to stay in Dubai are Bur Dubai, `25,000 `50,000 Downtown and Deira, which are also close to most attractions. The Marina and Palm Jumeirah Beach areas are expensive and Covid far from most tourist sites. You can pick Hideout or other similar apps, which not Yas Island, which has the Ferrari World guidelines from a range of options from hostels and only allow you to pre-book any activity but theme park, the Warner Bros theme park Vaccinated apartments to hotels. In Abu Dhabi, a stay also offer discounts. The must-visits in and Yas Waterworld, among others. Since travellers are at the Yas Island will be expensive, and Dubai are Burj Khalifa, which also houses there are a lot of theme parks in both cities, not required cheaper stays are available in Downtown the Dubai Mall, Dubai Aquarium and all of which are expensive, costing `6,000- to present a or city centre area. Underwater Zoo, and the musical fountain 8,000 per person, pick only the ones that negative RT-PCR test. They have to FOOD: Local delicacies and street food outside, which can all be combined in a interest you. present a valid certif icate ref lecting are a must-try and these are cheap as well. single day. The next day, go on desert safari TRAVEL: The best way to move around that they are fully vaccinated with a vaccine approved by the WHO or Try out the kebabs, shawarma, shirin polo, with dune bashing, camel riding, quad bik- Dubai and Abu Dhabi is to hire taxis, by the UAE, and including a QR code. fatteh, shish tawouk sandwich, and among ing and barbeque dinner. Other places to just hailing them off the street or using Those who are not vaccinated must desserts, try the mahalabiya, knafeh and visit are the Marina beach, Atlantis resort car apps like Careem, which are cheap and present a valid, negative result of luqaimat. You can have most of these from and water park, old Dubai for souvenirs efficient. Even for inter-city travel, cabs RT-PCR test conducted within 48 hours `120 to `1,000. and shopping, as well as the Gold Souk. In are a good option, though buses are avail- before arrival or a recovery certif icate SIGHTSEEING: A good way to go through Abu Dhabi, visit the Louvre, the Sheikh able. You could also use the Metro, which is (containing a QR code) issued within 30 days of departure. various activities in Dubai is to download Zayed Grand Mosque, Corniche beach, and cheap and time-saving. cover ssttoorryy 06 The Economic Times Wealth May 30-June 5, 2022 JORDAN Duration: 5 Nights / 6 Days FLIGHT 7 hours, 30 minutes direct Delhi- TIME Amman one-way f light Reality check! Typically takes 8.5-10 hours Visit in September-October Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PEAK SEASON OFF SEASON SHOULDER SEASON TEMPERATURE (SEP-OCT) 12-27 degree Celsius CURRENCY AIR FARE (RETURN) 1 Jordanian `35,264 per person STAY Dinar = `107.89 TOTAL Amman (`8,000); Petra `70,528 (`8,000) TOTAL `40,000 20% A tiny oasis of stability in the ITINERARY region that has seen constant DAY 1: Fly to Amman. unrest, Jordan lies at the cusp Tour the city. of Asia, Africa and Europe 35.5% BUDGET on the banks of Jordan river. DAY 2: Visit ruins of Jerash Oozing ancient history that dates back to VISA FEE ALLOCATION OF 12% (50 km). Paleolithic period and a run of several em- `4,500 per `2 FOOD DAY 3: Visit Aqaba and/or Wadi pires, it is a popular tourist destination. person LAKH `2,000 per Rum (330 km). AIR FARE: Instead of booking through an `9,000 person per day agent, do it yourself as you can bring down TOTAL DAY 4: Visit the Dead Sea (60 km). Take a bus to Petra (230 km) the cost via discounts, frequent flier miles, `24,000 choosing right dates and airline combina- 4.5% 18% DAY 5: Visit the historic sites of tions, and comparing prices on aggregator Petra. 10% sites. If you are doing it through an online DAY 6: platform, factor in the service charge that INTERNAL TRAVEL Take is typically tagged at the end of transaction INTERCITY: Amman-Petra a bus as it will escalate your price. bus (`1,100 per person, back to STAY: Besides hotels, hostels, such as return) Amman Amman SIGHTSEEING The Wanderers Hostel, and guest houses Amman-Jerash (bus is `250 and (cid:132) Amman (`4,000 for 2 are a good budget-friendly option in per person, return) or (drive then f ly Amman. While you can find cheap accom- a rental car for `2,800 a persons) to Delhi. day) or (taxi is `3,500-4,000 (cid:132) Jerash (`2,700 for 2 Petra modation in Old Downtown area, swanky one way) persons) places like Abdoun can also throw up good Amman-Dead Sea (bus is `1,300 per (cid:132) Dead Sea (full day tour budget stay options. person, return), or (taxi is `4,400 `5,000 per person) FOOD: Try out the neighbourhoods around Amman to sample traditional fare return), or (private driver is `8,000) (cid:132) Wadi Rum (`4,000) Petra Amman-Aqaba/Wadi Rum (f light is (`5,500 & `6,000 per and street food such as mansaf, maqluba, `15,000 per person, return), or (drive person for 1 & 2 days) falafel, shawarma, among others. You can visit the low-budget hummus parlours or a rental car for `3,500 a day) TOTAL Covid Lebanese restaurants for these, while an- TOTAL `36,000 guidelines other must-try is Arabic coffee in the funky `20,000 It is no longer cafes and restaurants on the Rainbow required to bring a Street in Amman. A meal will typically Roman Theatre. Spend some time at the Petra and spend the next day going through negative PCR cost `1,000 per person, but snacks will cost Rainbow Street and visit some museums the historic sites. test from the country of departure. much lesser. and art galleries. For the next three days, TRAVEL: Buses are the cheapest mode However, tourists are required to f ill SIGHTSEEING: On the first day in take full- day tours to Jerash to see the of inter-city travel, but you could hire a a declaration form and obtain a free Amman, take a city tour and visit the historic ruins, the Dead Sea which is actu- car with driver if the distance is less, such QR code that shall be presented on Amman Citadel to see the Temple of ally a salt lake, and indulge in desert fun as that to Jerash from Amman. Yellow boarding. Wearing a mask and gloves is mandatory in public places such as Hercules and Umayyad Palace. Then 20 at Wadi Rum, or take in the cool beaches at taxis and ride-hailing apps like Uber and malls and public gathering places. minutes away from the citadel, visit the Aqaba. On the fourth evening, take a bus to Careem are the best for travel within cities. cover ssttoorryy The Economic Times Wealth May 30-June 5, 2022 07 INDONESIA Duration: 6 Nights / 7 Days FLIGHT 9 hours, 10 minutes direct Delhi- TIME Bali one-way f light Reality check! Typically 11 hours Visit in April or October Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OFF SEASON PEAK SEASON SHOULDER SEASON TEMPERATURE (OCTOBER) 24-33 degree Celsius CURRENCY AIR FARE (RETURN) 1 Indonesian `17,981 per person STAY Rupiah = `0.005 TOTAL Bali (`10,000); `35,962 Yogyakarta (`10,000) TOTAL `60,000 L ying between Indian and Pacific 19.6% ITINERARY oceans, the world’s largest is- 32.6% land country has nearly 17,500 BUDGET DAY 1: Fly to Bali and islands, including Sumatra, take a city tour. Java, Sulawesi, Nusa Tenggara, VISA FEE ALLOCATION OF DAY 2: Full-day tour of Kintamani Borneo and New Guinea. These are brim- No visa `1.84 FOOD Volcano and Ubud in Bali. ming with pristine beaches, marine life, needed for `1,500 per corals and reefs, flora and fauna, komodos less than 30 person per day DAY 3: Indulge in water sports and and orangutans. Since travel to most of days. LAKH visit temples. TOTAL tkheepste t hiselsaen odust i os fv oeurry peuxrpveineswiv.e, we have TNOITLAL 22.9% 11.4% `21,000 DAY 4: Visit Nusa Dua, Seminyak. DAY 5: Fly in to Yogyakarta. AIR FARE: This country costs the least in terms of air fare, but the travel time is long. DAY 6: Take a full-day tour to So focus on getting direct flights without 13.5% Borobudur and Prambanan temples. stops that take the least time even if you DAY 7: Fly back to Bali and then to have to pay slightly more. INTERNAL TRAVEL Delhi. STAY: As you will have money to spare, INTERCITY: Bali-Yogyakarta you can stay in 4-star hotels in Bali and f light (`9,000 per person, return) Yogyakarta, even though cheaper options LOCAL: `3,000-5,000 (8-10 SIGHTSEEING are available. You could also opt for vaca- hours) or `2,000 a day with `25,000 (with water tion rental villas or homes if you don’t cheaper car apps per trip sports) like crowds. Ubud, Seminyak, Nusa Dua, TOTAL TOTAL Uluwatu, Canggu, among others, are all `42,000 `25,000 good places to stay in, and you can visit the others as day trips depending on what you want to do: chill on beaches, surf and sports. If you have the time and money, you indulge in water sports, visit temples, or could also visit other islands like the Gili Covid enjoy the nightlife. Islands, Nusa Lembongan, Nusa Penida, guidelines FOOD: Eating in Indonesia is cheap, with Lombok, and Komodo Island, which are far Negative RT- a good meal easily available for `600-700 from Bali. PCR test result per person. Try out the local delicacies like TRAVEL: The best way to travel in cit- required within sate, babi guling, mie goreng, lasi campur, ies is to take ride-hailing apps, Grab and a maximum of and pepes ikan, among others. Gojek, which are cheap and reliable. You 48 hours before departure. Quarantine of 5 days for those not vaccinated or SIGHTSEEING: Start your trip with a could also hire a car and driver for the day without f irst dose. Need to present city tour and follow it up in subsequent to go sightseeing. Driving yourself will valid printed or digital international days by visiting nearby areas like Ubud, be a hassle due to traffic and taxis are ex- certif icate for full vaccination. The f inal Seminyak, and Nusa Dua, or most famous pensive, with the only reliable taxi service dose should have been administered at being the Tanah Lot temple. None of these being the Blue Bird company. For travel least 14 days before departure. activities is expensive, except for water between cities, take a flight. Note: All prices are indicative and may vary; Currency exchange rate as on 14 May 2022; Flight rates for 1-6 October 2022, as on 14 May 2022; Some figures are rounded off. guest ccoolluummnn 08 The Economic Times Wealth May 30-June 5, 2022 The real, practical asset allocation Asset allocation is vital but hard to do for individuals. Here’s a simple, easy, yet effective substitute, says Dhirendra Kumar. S ince February 2020, so much has changed in the world that one would automatically assume that DHIRENDRA KUMAR everything would have changed for CEO, VALUE RESEARCH investors as well. Now, just as the money covid virus is winding down, we have this war in Europe. While the war itself could mysteries have been a little regional affair like so many that go unnoticed, the US and its camp followers have made a determined effort to globalise its impact. We have raging global inflation, currency upheavals, falling equity markets, central banks jacking up rates, the western sanc- For most investors, tions, China’s continuing covid travails, having a large chunk slackening demand and an unpredictable of their money in recession in the western countries. Surely, Aggressive Hybrid everyone’s investing strategy must change? funds will do the job. Well, yes and no. These funds keep To understand why, look at the various phases of the virus reaction. Starting in 65 to 80% of your February 2020, first came a great big crash money in equity when it looked like the sky was falling. A and the rest in f ixed lot of people sold and rushed out of equities. income. After that it’s been a roller coaster of dif- ferent sectors and sizes of companies, with investors frantically hunting for clues to locate some kind of a map of the near future vis-a-vis the near and far term impact of the virus. Even in the phases when stock prices are rising, investors have been shaky in their beliefs and have made more of their de- It’s awfully hard to actually monitor, correct and maintain asset S E G A allocation, that too in a M YI T tax-efficient manner. ET G cisions based on short-term guesswork and The reason is that almost no one can markets swing around, these funds shift fear. As the virus receded, wars and sanc- really do it as an individual. This is a real assets and rebalance your money in a man- tions started. world observation that may be contrary to ner that’s tax-transparent for you. The bet- One side effect has been that investors’ the general advice but this is what actually ter ones (look up Value Research Online) asset allocations have gone seriously out of happens. It’s awfully hard to actually moni- do a decent job at it and certainly far better whack. There are investors who have rushed tor, correct and maintain asset allocation, than any individual investor would. in and out of equity and then rushed back that too in a tax-efficient manner. In fact, Is that all that there is to it? No, but this is in a great hurry. On top of that, there have it’s pretty much impossible for a casual indi- the minimum you can get away with, with been these distractions of the IPOs. First vidual investor to do so. Equity and debt in- one exception. Money that might be needed came the ‘digital IPOs’ and then LIC. On herently grow at very different rates, with over the next three to five years from your top of that, inflation is now running higher equity swinging wildly. The theoretical savings and investments must be in fixed than the returns from almost all fixed in- approach means that most of the time, you’ll income. Add up your emergency fund come assets, which creates a different set have to switch some money from equity as- and this amount and keep it in something of problems. The conventional response to sets to fixed income or back. There will be that’s safe and sound. Between this and the this—something that I have advocated in mistakes made, and there will be taxes to be hybrid funds, this is all the asset allocation the past—would be that investors should paid. The benefit, if any, will be minimal. you might need, and all you can take out work on fixing their asset allocations. That’s So what should the investor do, that is the time and the effort for—but it’s quite an almost automatic reaction to anyone practical and effective? For most inves- enough. who analyses investments. Asset allocation tors, having a large chunk of their money wrong? Equity and fixed income propor- in Aggressive Hybrid funds will do the job. tions different from what they should be? Fix These funds keep 65 to 80% of your money in Please send your feedback to [email protected] it. Simple. But not really. equity and the rest in fixed income. As the stocks The Economic Times Wealth May 30-June 5, 2022 09 Are best days for IT term pay-offs from technology invest- ments. However, a prolonged recessionary scenario dents business confidence,” out- lines a report by Kotak Securities. As per a Bloomberg survey in May 2022, probabili- stocks behind us? ties of a recession over the next 12 months are now 30%—double the odds economists predicted three months ago. Another area of concern for IT com- panies is the persistently high attrition Euphoria around IT stocks has dimmed, but correction provides good entry point. rates. With the demand for skilled talent in the digital space ballooning post-Covid, the sector has seen unprecedented levels of attrition. Infosys’ attrition rate climbed to 27.7% in January-March 2022 from 15.2% a year earlier. As companies rush to attract and retain talent, their hiring costs have shot up sharply. This in turn has started reflecting in softer operating mar- gins. The top four IT companies—TCS, Infosys, Wipro and HCL Technologies— reported sequential decline in operating margins for the March quarter. With the twin effect on revenues and margins, some feel strongly that the wind- fall days for the sector are over. “Rising ES margin headwinds in the near term and G A revenue headwinds in the medium term M YI from a potential macro slowdown will T ET mean that the sector’s earnings upgrade G cycle is behind,” says JPMorgan in a note to clients. “We see peak revenue growth behind us and EBIT (Earnings Before by Sanket Dhanorkar Interest Taxes) margins trending down from inflation, mean reversion.” This is T he posterboys of the markets in also partly because the base effect, which 2020 and early 2021, IT stocks lent a gloss to IT companies’ financials for are now taking a sound beat- the past two years, is now turning unfa- ing. The BSE IT index has been vourable. Favourable bases are over for the worst performing index both EBITDA (operating profit) and PAT over the past three months. Recently, (profitability). What is weighing down the JPMorgan downgraded its IT sector rat- IT basket further are stretched valuations. ing to ‘underweight’ from ‘neutral’, on the The IT index is currently trading at about belief that peak revenue growth is behind 27 times earnings compared to the past 10 IT stocks have taken a us and margins are likely to trend down. year average PE of 18. So is the party really over for the IT pack? Despite the multiple headwinds from beating in last few months For IT-related businesses, the onset of macro environment, analysts are con- the pandemic in 2020 marked a seismic vinced that the IT sector will withstand Big names have seen steep declines in stock prices. shift. The big digital transformation pie the turbulence. While overall tech spend that Indian IT had been nibbling into in growth will come down from current Company Market cap (`cr) 3-month returns (%) PE the pre-covid years suddenly took a new expectations, it may remain reasonable dimension. Large businesses all over the because clients are still in the early phase Coforge 22,661 -16.3 34.2 world realised the need to speed up digiti- of cloud adoption with further spending zation of operations to meet the challenges required to fully capture value of cloud presented by the reshaped environment. investments. Further many are undertak- Zensar Technologies 6,417 -17.3 15.4 Overnight, the pie grew bigger. Earnings ing a core transformation that is a multi- of big players leveraging digital technolo- year journey. The ongoing depreciation in Infosys 6,04,336 -17.3 27.3 gies grew by leaps during and after the the rupee also provides some respite to IT pandemic. IT stocks quickly became the services firms’ revenues amidst concerns darlings of the market. The strong surge over clients’ tech spending. Firstsource Solutions 7,217 -18.2 13.4 lifted the weightage of the IT sector in the The sharp pull-back in stock prices has Nifty50 index to a multi-year high. taken away some of the earlier exuberance Wipro 2,51,278 -18.9 20.6 However, multiple factors are threaten- around the IT basket. Over the past three ing to disrupt the good times. A highly months, some of the biggest names in this inflationary environment and tighter space have seen declines of 15-30% in their Mphasis 46,714 -19.9 32.6 monetary conditions globally are stok- share prices. The correction should be ing fears of a slowdown. Leading global used as an entry point in select names, feel tech giants have faced a rout in the stock analysts. “Stock prices are attractive even L&T Technology Services 36,853 -20.8 38.5 markets, which has had a rub-off effect assuming a moderate demand slowdown,” on Indian counterparts. Increasing costs find analysts at Kotak Securities. Infosys Tech Mahindra 1,06,405 -22.3 19.1 will make clients resist pricing increases. and HCL Technologies are their top picks. Management commentary so far has not Among mid-caps, Mphasis and L&T indicated any signs of moderation in tech Infotech look interesting after the recent Mindtree 47,511 -23.8 28.7 spends by clients. However, analysts say correction. the current growth assumptions have Larsen & Toubro Infotech 70,090 -32.2 30.5 not yet factored in a prolonged slowdown. “Companies are willing to accept short Please send your feedback to [email protected] Data as on 23 May. Source: Value Research. term pressures on bottomline for longer review pprreevviieeww 10 The Economic Times Wealth May 30-June 5, 2022 Sacked Axis Bring key MF execs NEWS IN BRIEF manager starts Hallmark must for all gold legal f ight back to office: AMFI jewellery of any purity Effective 1 June, jewellers will Viresh Joshi, ex-fund manager and not be able to sell any gold jewel- Move aimed at closer monitoring for wrongdoings. chief dealer at Axis Mutual Fund, lery before it is hallmarked by has sent a legal notice to the fund BIS. Hallmarking is manda- house against his ‘unlawful termi- The Association of Mutual Funds of India tory for all gold jewellery and nation’. “We are in communication (AMFI) has advised all asset managers to gold artefacts irrespective of with Axis Mutual Fund on behalf of ask executives holding key responsibilities the purity grade of gold bought. our client Mr Viresh Joshi and have to start working from office by 10 June. Hallmarking boosts the trust fac- duly replied to the unlawful termina- The move is aimed at greater vigilance tor for the customer as it ensures tion notice,” said Chirag M. Shah, against wrongdoing and comes in the wake that the gold that they are buying Counsel, Mansukhlal Hiralal & Co. of allegations of front running by two fund has exactly the same purity as mentioned in the hallmark. Joshi has hired Mansukhlal managers at Axis Mutual Fund. Hiralal & Company, a law firm based One of the reasons why the alleged activities in Mumbai, to fight his case against by the Axis executives had gone unnoticed is Vegetable prices Axis Mutual Fund. He was terminat- said to have been the investment team working Rising prices of tomatoes ed from his role at Axis MF following from home for over two years on account of and green vegetables are an internal investigation on allega- Covid-related movement restrictions. jeopardising the common man’s tions of front-running. “Flexibility given to employees to work kitchen budget. In the national Axis Mutual Fund released a state- from home, especially those handling critical capital, tomatoes are being sold ment on 19 May which had stated functions that deal with the markets, such as for `60-80; while in many cities that “Axis AMC has been conducting investments, dealing, operations, compliance its prices have reached `100 amid shortfall in supply. Apart from a suo moto internal investigation / risk management etc. may be withdrawn,” Joshi and fund manager Deepak Agarwal tomatoes, green vegetables have since February 2022, using reputed said the AMFI communication. “This may be to leave the firm after an investigation by a also become costlier. external advisors to assist with this implemented at the earliest, but no later than forensic auditor appointed by the fund house ongoing investigation. Further to 10 June 2022,” it said. found “suspected irregularities.” The fund our investigation, his conduct and Sebi may have nudged AMFI to ask managers— mainly Joshi —were alleged Cooling job market following the decision to suspend mutual funds to end work from home for to have been involved in front running and The job market frenzy is likely to him, the employment of Viresh Joshi employees handling critical functions, said received kickbacks from brokers. Axis is said see some tapering off, partly be- has been terminated with effect from senior industry officials. This could not be to have sent its findings to Sebi. cause of a cooling-off process, as 18 May 2022.” independently verified. “The incident at Axis MF might be a catalyst well as inflationary pressures, According to a report published Sebi and AMFI didn’t respond to queries. to this advisory from the industry body,” said the Russia-Ukraine conflict and in ET, Axis Mutual Fund has hired Industry executives said various lapses Dhirendra Kumar, Founder of Value Research, rising interest rates. HR experts said the second half of the year Deloitte as a second investigator in in quality control, trade execution and risk a mutual fund tracker. “Fund management may see a 10-20% slowing down the front-running case after the fund management in the past two years have come and dealing are market-sensitive exercises from current levels. widened the scope of the probe. to light in recent months. Axis MF recently and is difficult to supervise it if not done from —Shivani Bazaz asked chief dealer and fund manager Viresh the office.” —Prashant Mahesh Third party insurance Radhakrishna Damani’s rates for EVs out wealth falls by a quarter The Centre has approved the revised base premium rates for third-party Radhakrishna Damani, a veteran market has fallen 25% year-to-date. motor vehicle insurance. From 1 June, investor and owner of retail company VST Industries, where he, directly and these new rates will come into effect. Avenue Supermart (DMart), has seen his through Derive Trading And Resorts These rates were last updated for the wealth fall nearly a quarter in 2022 so far, Bright Star Investments, held 32.5% 2019-20 fiscal. in a year marked by selloff in growth stake as of 31 March, has risen 1% this A new private electric vehicle (EV) stocks globally. Damani owned calendar. Damani’s stake in this with a power output of less than 30 over 1% stake in at least 14 company is worth `1,619.20 KW can be insured for three years for listed companies as of crore. `5,543. If the EV has a power output 31 March, which are India Cements, his of more than 30 KW but less than 65 valued at `1.55 lakh third biggest holding, KW, the three-year premium would be crore today, down has plunged 17 % this `9,044. Larger EVs with more than 65 23% year-to-date, as calendar. Damani KW will be insured for three years for per Trendlyne. This holds shares worth `20,907 each. will attract a premium of `1,780. included the value `632 crore. If they do not exceed 3 KW, new two- Private cars exceeding 30 KW but not of his ownership in Among his other wheeler EVs can be insured for `2,466 exceeding 65 KW will attract a pre- DMart. holdings, as per under a five-year single premium. EV mium of `2,904, and cars exceeding 65 Data showed Damani Trendlyne, Trent had two-wheelers with a power output of KW will be at `6,712. owned stocks worth `2.02 fallen 2%, United Breweries more than 3 KW but less than 7 KW Two-wheelers not exceeding 3 KW lakh crore as of 31December. has shed 6%, Sundaram will be insured for `3,273, while those would command a premium of `457, Damani did not tinker with Finance has slumped 33% while with a power output of more than 7 KW vehicles exceeding 3 KW but not ex- his holdings in the March quarter on a 3M India had tanked 32% so far this year. but less than 16 KW would be covered ceeding 7 KW will have a premium of sequential basis. The steepest drop has been seen in for `6,260. Higher-capacity EV two- `607. The premium for two-wheelers Among his top holdings, his 65.2% stake shares of Metropolis Healthcare, which wheelers having a capacity greater exceeding 7 KW but not exceeding 16 in DMart, as per Trendlyne, is worth have fallen 53% year-to-date. than 16 KW will be insured for five KW is `1,161 and for vehicles exceed- `147,966.8 crore today. The growth stock —Amit Mudgill years for `12,849 each. ing 16 KW premium is `2,383. Private cars not exceeding 30 KW —Sneha Kulkarni

See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.