Investors are increasingly looking for structured strategies that offer balanced growth and long-term gains. In this example, we explore a five-year investment in HDFC Balanced Advantage Fund with an STP (Systematic Transfer Plan) to HDFC Mid-Cap Opportunities Fund, aiming to maximize returns through balanced fund growth and targeted mid-cap exposure. All calculations are based on the last 3 years’ CAGR as of October 27, 2024.

Fund types and growth rates:

1. HDFC Balanced Advantage Fund – Direct (Hybrid Fund): A hybrid fund combines equity (stocks) and debt (fixed income) investments to balance growth potential and risk. By diversifying into both types of assets, hybrid funds offer moderate risk, making them ideal for investors looking to grow their wealth with a controlled level of exposure to market fluctuations. The HDFC Balanced Advantage Fund, in particular, provides a 3-year CAGR of 23.42%.
2. HDFC Mid-Cap Opportunities Fund – Direct (Equity Fund): An equity fund focuses primarily on stocks to provide potentially high returns over the long term. In this case, the HDFC Mid-Cap Opportunities Fund emphasizes mid-cap stocks—companies that are not yet large-scale but show strong growth potential. With a 3-year CAGR of 29.68%, this fund aims to capture the growth of emerging mid-sized companies in the market, albeit with higher volatility than a hybrid fund.

Initial investment and STP setup

1. Initial Investment: ₹5 lakh is invested in the HDFC Balanced Advantage Fund, allowing the balance to grow while monthly transfers are made.
2. Monthly STP: ₹5,000 is systematically transferred to the HDFC Mid-Cap Opportunities Fund, allowing growth from both funds through compounding while maintaining a monthly drawdown from the Balanced Advantage Fund.

Investment breakdown and calculated returns after 5 years

1. Total investment:

• One-time initial investment: ₹5 lakh in the HDFC Balanced Advantage Fund.
• Total STP amount transferred: Over five years, ₹5,000 is transferred monthly to the Mid-Cap Fund, amounting to ₹3 lakh.

2. Returns from each fund:

• HDFC Balanced Advantage Fund – Direct:
  • Final balance after 5 years, post-STP deductions: ₹9.05 lakh.
  • Total earnings from this fund after factoring in STP deductions: ₹7.05 lakh.
• HDFC Mid-Cap Opportunities Fund – Direct (via STP):
  • Future value after 5 years: ₹6.09 lakh.
  • Total earnings in the Mid-Cap Fund from STP contributions: ₹3.09 lakh.

3. Final corpus:

• The total corpus after 5 years, combining both funds’ returns, amounts to approximately ₹15.14 lakh.

Detailed analysis of growth

The initial investment in the HDFC Balanced Advantage Fund not only grew independently at a rate of 23.42% CAGR but also facilitated the monthly STP to the HDFC Mid-Cap Opportunities Fund. The Mid-Cap Fund’s higher 29.68% CAGR maximized returns on the transferred amount, allowing both funds to compound and contribute to the overall corpus.

Conclusion

By leveraging the HDFC Balanced Advantage Fund as a primary investment vehicle with STP transfers to the HDFC Mid-Cap Opportunities Fund, investors can create a diversified growth portfolio that balances risk with potential high returns. The strategic combination of consistent mid-cap exposure and balanced fund stability allowed the investment to grow to approximately ₹15.14 lakh over five years, with clear gains from both funds.

Disclaimer: This example is based on the 3-year CAGR of these funds as of October 27, 2024. All calculations are hypothetical and intended for illustrative purposes only. Mutual Fund investments are subject to market risks, and past performance is not indicative of future results. Please consult with a financial advisor to understand potential risks and returns before investing.

As the Diwali season approaches, Motilal Oswal Wealth Management has released its top stock picks across various sectors, each showing potential for robust growth and profitability. These selections, targeting multiple industries, reflect the company’s insights into financial, digital, defensive, and industrial sectors, considering projected returns, competitive positioning, and market dynamics.

Financials stocks to buy this Diwali

1. ICICI Bank: ICICI Bank’s steady quarter stands out in a challenging environment, showing a 15% YoY growth in net earnings. The bank’s focus on a high-yielding portfolio across business banking, SME, and secured retail segments is expected to maintain its growth trajectory. Target Price: ₹1,400; Upside: 12%.
2. Five Star Business Finance: With a projected 35% AUM growth for FY25 and a competitive lending rate, Five Star is well-positioned to capture market share. Its focus on operational efficiency and digital collection is expected to ensure sustained profitability. Target Price: ₹1,200; Upside: 13%.
3. Angel One: Diversifying into credit products and wealth management, Angel One has leveraged strong cost control to deliver a 39% YoY PAT increase, maintaining a CI ratio of 50.1%. Target Price: ₹4,100; Upside: 43%.

Digital stocks to buy this Diwali

1. HCL Tech: HCL Tech revised its FY25 growth guidance to 3.5%-5%, driven by deal wins and its focus on data/SAP modernization. Positioned for growth in GenAI and digital platforms, HCL is expected to benefit from recovery in client spending. Target Price: ₹2,300; Upside: 25%.
2. Zomato: Zomato aims to strengthen its brand across food delivery, groceries, and dine-out services. With Blinkit’s growth, Zomato is projected to achieve a revenue CAGR of 55% through FY24-27. Target Price: ₹330; Upside: 30%.

Defensives stocks to buy this Diwali

1. Titan: Titan continues to outperform due to its strong brand recall and business moat. Plans to open new Tanishq and CaratLane stores add to its growth outlook. Target Price: ₹4,300; Upside: 29%.
2. IPCA Laboratories: IPCA, focusing on APIs and formulations, expects earnings growth with a 14% CAGR in the domestic market. Key drivers include improved operational efficiency and synergies from recent acquisitions. Target Price: ₹1,950; Upside: 23%.

Industrials stocks to buy this Diwali

1. L&T: Larsen & Toubro is expanding into offshore wind, green hydrogen, and nuclear projects, with a significant order backlog of USD100m. This, coupled with an RoE target of 18%, makes L&T a top pick in the industrial space. Target Price: ₹4,250; Upside: 23%.
2. Amber Enterprises: With a stronghold in the RAC market, Amber’s focus on consumer durables and electronics projects a 21% revenue CAGR over FY24-27. Target Price: ₹7,350; Upside: 18%.
3. Zen Technologies: As a leader in anti-drone technology, Zen Technologies holds 150+ patents and is poised for market expansion, particularly in defense and surveillance sectors. Target Price: ₹1,900; Upside: 8%.

Motilal Oswal’s Diwali picks reflect a comprehensive approach to high-potential stocks across diverse sectors. From ICICI Bank’s stable growth to Zen Technologies’ innovative defense solutions, these recommendations aim to capture market opportunities across the board. Investors may find these picks beneficial as they align with growth trajectories, competitive advantages, and sectoral tailwinds for the coming financial years.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.

Afcons Infrastructure Ltd, a prominent player in the Indian infrastructure sector and a subsidiary of the Shapoorji Pallonji Group, has launched its Initial Public Offering (IPO) aiming to raise approximately ₹5,430 crores. This article delves into the key details of the IPO, the company’s background, its ongoing projects, associated risks, and market expectations.

Afcons Infrastructure IPO Details

• Opening and Closing Dates: The IPO opened on October 25, 2024, and will close on October 29, 2024.
• Price Band: The shares are priced between ₹440 and ₹463 per share.
• Lot Size: Investors can apply for a minimum of 32 shares, requiring a minimum investment of approximately ₹14,816.
• Total Issue Size: The IPO consists of a fresh issue of shares worth ₹1,250 crores and an offer for sale (OFS) of shares aggregating up to ₹4,750 crores from existing shareholders.
• Listing: Shares are expected to be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 4, 2024.

Afcons Infrastructure’s Parent Company Overview

Afcons Infrastructure Ltd is part of the Shapoorji Pallonji Group, which has a rich history dating back to 1865. Established in 1959, Afcons has evolved into one of India’s leading engineering and construction companies. The firm specializes in various sectors including:

• Marine and industrial projects
• Surface transport
• Urban infrastructure
• Hydro and underground developments
• Oil and gas initiatives

With over 76 completed projects across 15 countries and a current order book valued at ₹34,888 crores, Afcons has established itself as a key player in both domestic and international markets.

Notable Projects by Afcons Infrastructure

Afcons has been involved in several landmark projects:

• Chenab Bridge: The world’s tallest single-arch railway bridge.
• Atal Tunnel: The longest highway tunnel above 3,000 meters.

These projects underscore Afcons’ capabilities in handling complex engineering challenges.

Financial Performance of Afcons Infrastructure

The financial health of Afcons Infrastructure is notable:

• Over the last decade, the company has completed projects with a total executed contract value of ₹52,220 crores.
• As of September 30, 2023, it had an order book worth ₹34,888 crores with 67 active projects ongoing.

Risks Associated with Afcons Infrastructure IPO

Investors should be aware of several risks:

1. Bidding Risks: The company has faced challenges in securing contracts; for instance, it won only six projects in recent bidding rounds.
2. Dependency on Government Contracts: Approximately 68.42% of its order book relies on government contracts, exposing it to potential payment delays and policy changes.
3. Capital Intensity: High working capital requirements can strain liquidity; as of September 30, 2023, working capital loans stood at ₹1,390 crores.
4. Receivable Delays: Significant overdue receivables amounting to ₹2,100 crores could impact cash flows.

Grey Market Premium (GMP)

As of the latest updates prior to the IPO launch, the Grey Market Premium (GMP) for Afcons Infrastructure shares was reported at around ₹20 to ₹25 per share. This indicates positive sentiment among investors regarding the stock’s potential performance post-listing.

The Afcons Infrastructure IPO presents an intriguing opportunity for investors looking to tap into India’s burgeoning infrastructure sector. With a solid track record of executing complex projects and backing from the Shapoorji Pallonji Group, Afcons is well-positioned for growth. However, potential investors should carefully consider the associated risks before participating in this offering.

Quant Small Cap Fund Direct Plan-Growth is a Small Cap mutual fund offered by Quant Mutual Fund. This fund was established on January 1, 2013, making it 11 years. As of now, Quant Small Cap Fund Direct Plan-Growth has assets under management (AUM) of ₹24,530 Crores, making it a medium-sized fund in its category.

The majority of the fund’s money is invested in the services, energy, financial, healthcare and consumer staples sectors. Compared to other funds in the category, it has a lower level of exposure to the energy and services sectors.

Quant Small Cap Fund Performance

The growth returns for the previous year’s Quant Small Cap Fund Direct Plan are 57.69%. It has produced returns of 20.56% on average year since its start. Every two years, the fund doubles the amount invested in it.

The Quant Small Cap Fund Direct Plan-Growth strategy outperforms other funds in its category in terms of its ability to consistently provide returns.

Quant Small Cap Fund Returns

Quant Small Cap Fund Top 5 Holdings

Quant Small Cap Fund Suitability

When you decide to invest for seven years or longer, you can expect profits that outperform both inflation and fixed income returns.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Quant Large and Mid Cap Fund Direct-Growth is a Large & MidCap mutual fund offered by Quant Mutual Fund. This fund was established on January 1, 2013, making it 11 years. As of now, the assets under management (AUM) of Quant Large and Mid Cap Fund Direct-Growth is at ₹3,573 crores, making it a medium-sized fund within its category.

The majority of the fund’s assets are invested in the consumer staples, energy, healthcare, automobile and insurance sectors. Compared to other funds in the category, it has less exposure to the Consumer Staples and Energy sectors.

Quant Large and Mid Cap Fund Performance

The last year’s direct growth returns for Quant Large and Mid Cap Funds are 61.84%. It has produced returns an average of 21.57% annually since launch. Every three years, the fund doubles the amount invested in it.

The Quant Large and Mid Cap Fund Direct-Growth strategy outperforms the majority of funds in its category in terms of returns. It has a strong capacity to control losses in a sinking market.

Quant Large and Mid Cap Fund Returns

Quant Large and Mid Cap Fund Top 5 Holdings

Quant Large and Mid Cap Fund Suitability

As long as you invest for five years or longer, you are likely to see gains that outperform both inflation and fixed income returns. However, you can expect your investment value to fluctuate along the way.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Quant ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme offered by Quant Mutual Fund. This fund was launched on January 1, 2013, making it 11 years. As of now, Quant ELSS Tax Saver Fund Direct-Growth has assets under management (AUM) of ₹11,065 crores, making it a medium-sized fund in its class.

A significant portion of the fund’s money is invested in the energy, financial, consumer staples, healthcare and automobile sectors. Compared to other funds in the category, it has less exposure to the energy and financial industries.

Quant ELSS Tax Saver Fund Performance

The past year’s Quant ELSS Tax Saver Fund Direct-Growth returns were 53.27%. It has produced returns an average of 23.32% annually since its start. Every three years, the fund doubles the amount invested in it.

The Quant ELSS Tax Saver Fund Direct-Growth plan can deliver returns that are comparable to most funds in its category. Its capacity to manage losses in a declining market is below average.

Quant ELSS Tax Saver Fund Returns

Quant ELSS Tax Saver Fund Top 5 Holdings

Quant ELSS Tax Saver Fund Suitability

If you choose to invest for five years or longer, you can expect gains that outperform both inflation and fixed-income returns. However, keep in mind that the value of your investment may fluctuate over time.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Quant Mid Cap Fund Direct-Growth is a Mid Cap mutual fund from Quant Mutual Fund. This fund was established on January 1, 2013, making it 11 years. Quant Mid Cap Fund Direct-Growth has ₹9,283 Crores in assets under management (AUM), making it a medium-sized fund in its class.

The majority of the fund’s money is invested in Healthcare, Services, Metals & Mining, Energy and Consumer Staples sectors. It has less exposure to the Healthcare and Services sectors than other funds in the category.

Quant Mid Cap Fund Performance

Quant Mid Cap Fund Direct-Growth returns over the last year are 58.40%. It has produced returns of 20.70% on average year since launch. Every two years, the fund doubles the amount invested in it.

The Quant Mid Cap Fund Direct-Growth scheme’s track record of regular return delivery is similar to most funds in its class. It has an average capacity for managing losses in a declining market.

Quant Mid Cap Fund Returns

Quant Mid Cap Fund Top 5 Holdings

Quant Mid Cap Fund Suitability

When you choose to invest for seven years or longer, you are likely to see gains that outperform both inflation and fixed-income returns.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Quant Infrastructure Fund Direct-Growth is Quant Mutual Fund’s sectoral infrastructure mutual fund scheme. This fund has been operating for 11 years. The assets under management (AUM) of Quant Infrastructure Fund Direct-Growth is at ₹4,104 Crores, making it a medium-sized fund within its category.

The majority of the fund’s money is invested in the energy, construction, metals and mining, financial and consumer staples sectors. It has less exposure to the energy and construction industries than other funds in the category.

Quant Infrastructure Fund Performance

The last year’s direct growth returns for Quant Infrastructure Funds are 70.62%. It has produced returns of 20.49% on average year since its start. Every two years, the fund doubles the amount invested in it.

The Quant Infrastructure Fund Direct-Growth scheme’s track record of regular return delivery is similar to that of the majority of funds in its class.

Quant Infrastructure Fund Returns

Quant Infrastructure Fund Top 5 Holdings

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Shares of Poly Medicure Ltd. increased by about 2% following the company’s successful ₹1,000 crore QIP (qualified institutional placement). On Thursday, the board approved the allotment of 53.19 lakh equity shares to qualified institutional buyers (QIBs), completing the institutional share sale.

The company set the QIP issue price at ₹1,880 per share, representing a 12.8% discount to Thursday’s closing price. The QIP was launched on August 19 and drew strong interest from large funds.

Of the shares offered in the QIP, Lighthouse India Fund IV AIF acquired 20.5% of the total. SBI Mutual Funds, Nomura Funds, ICICI Prudential, Kotak Mahindra Life Insurance, Quant Mutual Fund and Max Life Insurance are a few other well-known investors.

As of 12:52 pm, Poly Medicure shares were trading 1.97% higher at Rs 2,192.00 on the NSE.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Following the signing of the Securities of Supplies Agreement (SOSA) between the US and India on Friday during the visit of Defence Minister Rajnath Singh, shares of Hindustan Aeronautics Ltd. (HAL) are up about 2%.

Rajnath Singh is now in the United States, where his primary focus was to address the delivery in General Electric’s F2404 engines, which are a critical component for HAL’s Tejas Mark-1A fighter jets.

HAL shares fell earlier this month on reports of execution issues at the company.

As of 12:35 pm, HAL shares were trading 1.36% higher at Rs 4,833.00 on the NSE.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.