Online Survey : 10 stocks which you would like to invest for long term in 2021.

 Hi All , 

Similar to last year, We are conducting an Online Survey of 10 stocks that you would like to invest for the long term in 2021.

Request you to share your responses with fav. stocks. Please share the response details in the comments section of the post.

The survey will be open from 1-Jan-2021 to 3rd-Jan-2021. The survey details will be consolidated and published in the following week.

We will also share the result of the annual performance of stocks identfited 2020 stock survey.

Happy Investing.

Other Reads: Six Months performance of the survey stocks survey 2020

Why You Do Not Need to Worry about Investments in HDFC MF Schemes Post Milind Barve’s Tenure

 

HDFC Mutual Fund on November 16, 2020, informed stock exchanges about the appointment of Navneet Munot as the MD and CEO of the company. Munot will be succeeding Milind Barve, the current and longest-serving CEO and MD, when his term ends on January 31, 2021.

Barve’s current term officially ended on October 31, 2020, and he had expressed his desire to turn down a term extension because he is turning 63 this year. However, he agreed to an extension of term for an additional three months to provide adequate time to identify a suitable successor and ensure smooth transition and functioning of business operations.

Barve who has served as MD of HDFC Mutual Fund (MF) since its inception about two decades ago has played a key role in the growth and success of its business. Over this period, the fund house grew considerably to become one of the largest and most popular in the mutual fund industry.

During his term, the company was listed on stock exchanges, becoming only the second asset management company in India to do so.

HDFC Mutual Fund’s popularity grew leaps and bounds in the minds of investors due to strong performance of its various schemes in the past. Its asset under management now stands at Rs 3.7 trillion (as on October 31, 2020), second only to SBI Mutual Fund.

Should investors in HDFC mutual fund schemes worry about Barve's exit?

Over the past couple of years, numerous HDFC MF schemes that were once popular have been struggling to keep pace with the benchmark and have lagged many category peers. A change in senior management team could prove to be beneficial for the fund house.

Navneet Munot, stepping into the shoes of Barve, brings with him an immense experience of over 25 years in the fund management business. Munot has been the CIO of SBI Mutual Fund for the past 12 years and was previously associated with Aditya Birla Sunlife Mutual Fund as the CIO of Fixed Income and Hybrid Funds.

Munot took charge as CIO of SBI MF in December 2008 when the fund house was adversely impacted following the global financial crisis. He was successful in steering the fund house and its investment process to stability. SBI MF now manages assets worth Rs 4.3 trillion (as on October 31, 2020), the largest in the industry.

During his term, SBI won the mandate to manage funds of EPFO which coupled with decent performance across categories helped it become the largest asset manager. SBI MF became among the first to adopt the environmental, social, and corporate governance (ESG) as well as passive themes of investing during this term.

Munot's entrance in the HDFC team can therefore be seen as a positive development and is not likely to affect the robust investment process and systems that HDFC MF has in place.

Notably, HDFC MF still has star fund managers in Prashant Jain (CIO & ED) and Chirag Setalvad (Senior Fund Manager), known for their superior long-term performance record and high conviction investment bets.

What does it mean for investors in SBI MF schemes?

SBI MF has not yet announced a replacement for Munot, but the fund house seems to be well prepared to deal with his exit. Vinay Tonse, MD and CEO, SBI Funds Management in an address to media said, "The fund management structure at SBI Funds Management will continue to remain the same, as the company over a period of time has built a very capable second line with strong vintage."

What should investors do in the event of change in management?

A change in management team does not warrant any portfolio action. You should only look for alternatives if you find the performance of a fund unsatisfactory over a longer duration, based on qualitative and quantitative parameters.

Apart from the consistent underperformance of the scheme, listed below are the other circumstances when one can consider exiting their equity mutual fund scheme:

• Your investment has grown to the desired corpus
   
• To gradually shift to safer avenues when your financial goal is approaching
   
• During portfolio rebalancing to maintain the desired asset allocation
   
• The fund objective changes and is no longer in congruence with your own objective
   
• The fund risk profile changes and doesn't match your current risk appetite
   
• In case of a financial emergency when you have no other option
   
• You wish to adopt change in investment style (value, growth, blend, aggressive, conservative, etc.)

It is important to understand the investment philosophy of the fund house and investment processes they follow. Only process-driven fund houses can give you consistent performers over the long term.

Furthermore, before making an investment decision, evaluate your investment objective, risk appetite, and investment horizon to select the appropriate scheme based on unbiased research.

Next Read : Teachers Day 2020-Five books from investment gurus every young investor should read

Teachers' Day 2020: Five books from investment gurus every young investor should read

 Teachers' Day 2020: Five books from investment gurus every young investor should read.

The celebrations for Teachers’ Day 2020 is abuzz. While everybody is using this occasion to thank their teachers for their valuable contributions in their life. Besides, there are few investment gurus, who through their books have given invaluable advice to people to help them grow into a successful investor. Certainly, these books would help young investors to understand better the rough and tumble of the stock, currency and commodity markets. Here are five such books from investment gurus that every young investor should read. 

1) "Rich Dad, Poor Dad" by Robert Kiyosaki

One can never grow rich by earning more unless and until he saves more and invests that amount properly. Where you spend your money decides your financial fate. "Rich Dad, Poor Dad" is a book that will teach you the basics of investing, assets, liabilities and how you can make your money work for you. Robert Kiyosaki, who himself has been a seasoned investor has advocated investments that will produce regular income for investors and will help him in achieving financial freedom. This book is a must-read for every young earner who wants to  create an alternative stream of income by making proper investments.

2) "The Intelligent Investor"  by Benjamin Graham

Author of this book Benjamin Graham is considered as the "father of value investing". This book advocates the purchase of stocks that appear cheap relative to its underlying value. This book discusses various ways of managing your investment portfolio. The author has given the example of many companies to illustrate his views. Warren Buffett, the value investing guru has even hailed the book as the best investing book ever written.

3) "The Dhandho Investor" by Mohnish Pabrai

The book will tell you how to create wealth through low–risk, high–return approach. This book has given the example of Patels, a small business community from India, who first began arriving in the United States in the 1970s as refugees with little education and capital and now own over $40 billion in assets in the United States and pay over $725 million a year.  This book tells you to use the techniques used by the Patels in making stock market investment

4)"Think and Grow Rich" by Napoleon Hill

This book conveys important insights into the psychology of success and abundance, and should be considered a priority read given the current time period's emphasis on shock-value entertainment and negative news. The author of this book Napoleon Hill has conducted extensive research based on his association with wealthy individuals during his lifetime and has published 13 principles for success and personal achievement from his observations and research. These include desire, faith, specialized knowledge, organized planning, persistence and the "sixth sense." 

5) "Beating the Street" Peter Lynch

Author of this book Peter Lynch started his carrier as an intern at Fidelity Investments in the mid-60s and became one of the most successful stock market investors and hedge fund managers. By reading this book you can peek into Lynch's mind and thought process in terms of deciding whether to buy or sell a stock. According to Lync, an individual investor can exploit market opportunities better than Wall Street. He has encouraged investors to invest in what they know.

Next Story : CAMS IPO

CAMS IPO

What is CAMS?

Incorporated in 1988, CAMS provides services to both mutual fund companies and investors. It provides services for verification, processing and receipt of non-financial and financial transactions for the BFSI sector, more prominently for the mutual fund industry. It also provides services to investors like consolidated account statement (CAS) generation, changing mandate and more.

The company is currently headquartered in Chennai. 

Few of its subsidiaries include:

• CAMS KRA
• CAMS Insurance Repository Services Ltd.
• Sterling Software Pvt. Ltd.
• CAMS Financial Information Services Pvt. Ltd.

IPO DETAILS

Particulars	Description
IPO Subscription Dates	September 21-23
Listing Date	On or about October 1, 2020
IPO Price Band	Rs 1,229-1,230 per share
Number of shares on offer	1,82,46,600
Face Value	Rs 10 per share
Minimum Bid Quantity	12
Leading Book Managers of the Issue	1) Kotak Mahindra Capital Company Ltd. 2) HDFC Bank Ltd. 3) ICICI Securities Ltd. 4) Nomura Financial Advisory and Securities (India) Private Ltd.

Share Portions Reserved For Different Investor Categories

There are different kinds of investors: retail, institutional, non-institutional who can participate in the IPO. There is some portion reserved for the employees as well.

Employee Reserve Portion	Up to 182,500 Equity Shares
Anchor Investor Portion	Up to 5,419,230 Equity Shares
Net QIB Portion	3,612,820 Equity Shares
Of the net QIB Portion: Mutual Fund Portion	Up to 1,806,410 Equity Shares
Non-institutional Portion	Not less than 2,709,615 Equity Shares
Retail Portion	Not less than 6,322,435 Equity Shares
Equity Shares outstanding prior to and after the IPO	48,786,800 Equity Shares

What is an RTA?

RTA’s aid asset management companies in record maintenance. They also provide services to mutual fund investors as a single-window reference point for all their mutual fund investment-related information.

CAMS IPO Employees Reservation

A discount of ₹122 per Equity Share is being offered Eligible Employee Bidding in the Employee Reservation Portion. up to 182,500 Equity Shares are reserved for employees. Note:

When using UPI as a payment method, the primary account holder in the bank and demat should be the same person. Use of 3rd party UPI ID or 3rd party bank account is not allowed.

When using ASBA, up to 5 CAMS IPO applications can be applied from the same bank that offers the 3rd Party ASBA IPO application.

HUF and Minors can only apply using ASBA from the banks that offer the 3rd Party ASBA IPO application. i.e. SBI, Axis bank. 

IIFL: Subscribe
The brokerage said at the upper limit of the price band, the issue is priced at 35 times FY20 EPS, which is a 10-15 per cent discount to listed AMCs, exchanges and depositories. It expects the stock to trade in-line with other comparables and further re-rate.

YES Securities: Subscribe

YES Securities values the issue at 26 times FY22 P/E and believes it is reasonable.

The brokerage said that the given CAMS would be a direct beneficiary of low MF penetration, but the growth would be lower given that fees are generally tiered in nature.

Choice Broking: Subscribe with caution

Based on its conservative estimate, Choice is expecting a 2.7 per cent CAGR rise in the topline growth for the company over FY20-23 to Rs 757.91 crore in FY23. 

It sees Ebitda and PAT to grow at 1.5 per cent and 6.4 per cent, respectively.

Risks to Investors

The 4 Lead Managers associated with the Offer have handled 17 public issues in the past three years out of which 6 issues closed below the issue price on the listing date.

The PE ratio based on diluted EPS for FY 2020 for the Issuer at the upper end of the Price Band is as high as 34.61.

Average cost of acquisition of Equity Shares for the Selling Shareholder namely NSE Investments Limited is Rs 187.86 per Equity Share and the Offer Price at the upper end of the Price Band is Rs 1,230 per Equity Share.

Weighted Average Return on Net Worth for Fiscals 2020, 2019, and 2018 is 31.40%

Next Story : Six Months performance of the survey stocks

Six Months performance of the survey stocks

 

Looking at the six months performance of the survey stocks, it looks like most of them have done well during last 2 quarters from March-2020 to August 2020. The returns percentage are approximated and may vary with actuals.

Sr no	Stock Name	votes	6-M returns in %	Comments
1	RELIANCE	27	138	does not include partly paid shares and dividends
2	HDFCBANK	23	41.46	does not  include dividends
3	TCS	16	40	does not include  dividends
4	DMART	16	27	does not  include dividends
5	BAJAJ FINANCE	15	54	does not  include dividends
6	LARSEN TUBRO	14	42.8	does not  include dividends
7	INFY	13	73.94	does not  include dividends
8	IRCTC	12	39.22	does not  include dividends
9	HDFC	12	18.40	does not  include dividends
10	HDFCAMC	12	16.66	does not  include dividends
11	ICICIBANK	10	32	does not  include dividends
12	BAJAJ FINSERVE	10	53	does not  include dividends
13	ITC	10	36	does not  include dividends
14	SBI	10	33	does not  include dividends
15	KOTAK BANK	10	18.18	does not  include dividends
16	HDFC LIFE	10	72	does not  include dividends
17	MOTHERSON SUMI	< 10	122	does not  include dividends
18	ASHOK LEYLAND	< 10	112	does not  include dividends
19	HUL	< 10	16	does not  include dividends
20	TATA MOTORS	< 10	45	does not  include dividends
21	ASIAN PAINTS	< 10	30	does not  include dividends
22	M&M	< 10	127	does not  include dividends
23	BIOCON	< 10	70	does not  include dividends
24	AXIS BANK	< 10	46	does not  include dividends
25	IGL	< 10	38.66	does not  include dividends
26	BATA	< 10	30	does not  include dividends
27	YES BANK	< 10	-6.66	does not  include dividends
28	ICICI PRU.	< 10	87.88	does not  include dividends
29	HERO MOTORS	< 10	89.88	does not  include dividends
30	NBCC	< 10	93	does not  include dividends
31	ICICI LOMBARD	< 10	34	does not  include dividends
32	KEC INTL	< 10	102	does not  include dividends
33	BRITANNINA	< 10	87	does not  include dividends
34	ADANI SEZ	< 10	71	does not  include dividends

Next Story CAPS IPO

Next Story : Six Months performance of the survey stocks

Meghmani Organics Limited Corporate action update

Meghmani Organics Limited (MOL) hereby informs that a Scheme of Arrangement for Amalgamation amongst Meghmani Finechem Limited (MFL) a Subsidiary and Meghmani Agrochemicals Private Limited (MAPL), a wholly-owned subsidiary of MOL is proposed.

The Proposed Scheme shall be subject to the approval of National Company Law Tribunal, Ahmedabad. Sub: Meghmani Organics Limited (Meghmani): Outcome of Board Meeting Held on 29th-January, 2020

Ref:-Intimation under Regulation 30 of SEBI [Listing Obligations and Disclosure
Requirements) Regulations. 2015 ("Listing Regulations")

The Board of Directors of Meghmani Organics Limited (Meghmani “or "the Company") on
recommendation of its Audit Committee at its meeting held on 29th January, 2020 has
considered and approved a Composite Scheme of Arrangement amongst Meghmani
Organics Limited (MOL 1’) and Meghmani Organochem Limited (“MOL 2’) and
Meghmani Finechem Limited (“MFL”) and their respective shareholders and creditors
(the ‘Scheme’)under Sections 230 to 232 and other relevant provisions of the Companies
Act, 2013 and the Rules made thereunder, which interalia provides for :-

1. Demerger of Agrochemical and Pigment Undertaking from MOL1 into MOL2, on a
going concern basis.
On Scheme being effective, the name of MOL 2 will be changed to Meghmani
Organics Limited or any other name as may be approved by ROC.

2. Amalgamation of Remaining Business Undertaking of MOL 1 with MFL and
The Board of Directors of MFL (a material subsidiary of the Company) and MOL2 have
approved the Scheme at their respective board meetings.

The Scheme is subject to requisite statutory and regulatory approvals of Central
Government, Reserve Bank of India, Singapore Stock Exchange ((SGX-ST’), National Company
Law Tribunal (NCLT), Indian Stock Exchanges (NSE & BSE), SEBI and/or any other
regulatory approvals and sanction by the respective Shareholders and Creditors of each of
the Companies, involved in the Scheme.
Attachment for reference.

Next Story : Online survey result 10-stocks for 2020.

Online Survey Result : 10 stocks which you would like to invest for long term in 2020.

Online Survey Result: 10 stocks which you would like to invest in for the long term in 2020.

We conducted an Online Survey from 31st-Dec-2019 to 2nd-Jan-2020, 
To understand from Retail Investors that in 2020, which 10 stocks they would like to invest in for the long term.

Results :
Over a period of 3 days, We received  436 stock names from the participants.
There were total 65 vote entries ( 1 vote can have up to 10 stocks).
In total, There were 150 unique stock entries that were received from the participants.
These stock range from large-cap, midcap, small and microcap space.

Here is the graph of the top 10 stocks which were voted most by the participants.


Looking at the top 10 stocks, it looks like Large caps are favorite among retail investors.
However, There is mix interest in good companies from midcap, small-cap and mico caps as well.

Here is the list of all 150 stocks along with their votes:

1. RELIANCE=27
2.  HDFCBANK=23
3.  TCS=16
4.  DMART=16
5.  BAJAJFINANCE=15
6.  L&T=14
7.  INFY=13
8.  IRCTC=12
9.  HDFC=12
10.  HDFCAMC=12
11.  ICICIBANK=10
12.  BAJAJFINSERVE=10
13.  ITC=10
14.  SBI=10
15.  KOTAKBANK=10
16.  HDFCLIFE=10
17.  MOTHERSON=7
18.  ASHOKLEYLAND=5
19.  HUL=5
20.  TATAMOTORS=4
21.  ASIANPAINTS=4
22.  M&M=4
23.  BIOCON=4
24.  AXISBANK=4
25.  IGL=4
26.  BATA=4
27.  YESBANK=4
28.  ICICIPRUDENTIAL=3
29.  HEROMOTOCORP=3
30.  NBCC=3
31.  ICICILOMBARD=3
32.  KECINTERNATIONAL=3
33.  BRITANNIA=3
34.  ADANIPORTS=3
35.  HIMADRI=3
36.  AUROBINDOPHARMA=3
37.  AMARARAJABATTERY=3
38.  IDFCFIRSTBANK=3
39.  EDELWEISS=3
40.  RELIANCENIPPONASSETMANAGEMENT=2
41.  TATAELXI=2
42.  MEGHMANI=2
43.  TATAELXSI=2
44.  BEPL=2
45.  AVANTIFEEDS=2
46.  VENKEYS=2
47.  NIFTYBEES=2
48.  TATASTEEL=2
49.  STERLITE=2
50.  MARUTI=2
51.  LTFOODS=2
52.  SRF=2
53.  JUBILANTFOODWORKS=2
54.  ASSOCIATEALCOHOL=2
55.  PIDILITE=2
56.  IOC=2
57.  ULTRATECH=2
58.  PRAJINDUSTRY=2
59.  MGL=2
60.  EXIDE=1
61.  MARUTISUZUKI=1
62.  PNBHOUSING=1
63.  BANDHANBANK=1
64.  CEAT=1
65.  LTTECHNOLOGY=1
66.  MAXVENTURES=1
67.  UPL=1
68.  LTFINANCE=1
69.  FEDERALBANK=1
70.  PETRONETLNG=1
71.  LUPIN=1
72.  NTPC=1
73.  TATAPOWER=1
74.  GRAPHITE=1
75.  ALPHAGEO=1
76.  TGB=1
77.  JKCEMENTS=1
78.  GUJARATGAS=1
79.  KOTAKMAHINDRA=1
80.  EXCELINDUSTRIES=1
81.  NOCIL=1
82.  PAGEINDUSTRIES=1
83.  IRCONINTERNATIONAL=1
84.  BEML=1
85.  MANNAPURAM=1
86.  MRF=1
87.  INDIANBANK=1
88.  VARROC=1
89.  HATSUN=1
90.  ORIENTELECTRIC=1
91.  NALCO=1
92.  LLOYDSSTEEL=1
93.  HPCL=1
94.  ABBOT=1
95.  OLECTRAGREENTECH=1
96.  BALRAMPURCHINI=1
97.  OILINDIA=1
98.  BERGERPAINT=1
99.  NMDC=1
100.  MSSL=1
101.  GAIL=1
102.  NIPPON=1
103.  GRAUERANDWEIL=1
104.  CDSL=1
105.  BEL=1
106.  HIL=1
107.  NAVINFLUORINE=1
108.  AMBUJACEMENT=1
109.  MOLDTEKPACKAGING=1
110.  CAMLIN=1
111.  REC=1
112.  DIXON=1
113.  BHEL=1
114.  AMBER=1
115.  NESCO=1
116.  GPPL=1
117.  COAL=1
118.  ADVENZ=1
119.  HSCL=1
120.  WIPRO=1
121.  EMAMILTD=1
122.  DEEPAKNITRATE=1
123.  TORRENTPHARMA=1
124.  PHILIPSCARBONBLACK=1
125.  BANKBEES=1
126.  TATAGLOBALBEVERAGE=1
127.  KINGFA=1
128.  SESHAYEE=1
129.  MPHASIS=1
130.  SBILIFE=1
131.  VEDANTA=1
132.  CARBONDUM=1
133.  RADICO=1
134.  GNFC=1
135.  FORTIS=1
136.  PNCINFRA=1
137.  RITES=1
138.  RNVL=1
139.  JSWSTEEL=1
140.  SAIL=1
141.  NESTLE=1
142.  ANDHRASUGAR=1
143.  HINDZINC=1
144.  ENGINEERSINDIA=1
145.  RBLBANK=1
146.  PEL=1
147.  BHARATFORGE=1
148.  UJJIVANSAMLLFINANCE=1
149.  CHAMANLALSETIA=1
150.  ASTRAL=1

This suvey is informative in nature and does not provide any recommendations .
A big thanks to all participants for contibuting yo suvery .
Happy Investing :-).
Next Story : Adani ports to acquire Snowman Logistics after majority stake purchase.

Next Story : Six Months performance of the survey stocks