The Economic Times Wealth - May 30, 2022

26 Pages·2022·8 MB·English

T E T
HE CONOMIC IMES ARE BEST

DAYS FOR
IT STOCKS
BEHIND
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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
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02 The Economic Times Wealth May 30-June 5, 2022
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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!
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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.
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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.
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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.
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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.
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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.
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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