Author: AasthaFinTech

CMP 856

Landmark Cars Limited :

Company has received approval from BYD India Pvt Ltd to open a showroom in South Mumbai, Maharashtra, solidifying its position in the electric vehicle space. This will be the company’s fourth BYD showroom, furthering its partnership with the top New Energy Vehicle manufacturer worldwide. Landmark Cars is a leading premium automotive retail business in India, with dealerships for various brands and a presence across the automotive retail value chain.

Landmark Car  Channel Partner 

1.MERCEDES 

2.JEEP

3.HONDA

4.VOLKSWAGEN 

5.RENAULT

6.BYD

7.MG

8.ASHOK LEYLAND

https://www.grouplandmark.in/

www.aasthafintech.com 

 

♻Solar Power EPC Companies

✍About the company:

🔷Waaree Renewables Technologies Ltd:

🔸Co operates in renewable energy, particularly solar PV, with a focus on solar pumps, solar parks, captive consumption, floating solar & rooftop solar.

✍Manufacturing Facilities:

🔸Co has its energy generation site located in Maharashtra, India. 

🔸The largest solar panel manufacturing capacity in India, boasting 12GW in Gujarat.

🔸Company has completed 10,000+ Projects in Pumps, Telecom & Rooftops.

✍Clientele:

🔸Arcelor Mittal

🔸Aditya Birla Group

🔸Bharat Petroleum

🔸Cello

🔸Larsen and Toubro

🔸Mumbai Metro MMRDA

🔸Mondelez International

🔸NTPC

 🔸Reliance Industries Limited

🔸MSL and others.

🔷Waaree:

🔸EPC Contract: 98.4%

🔸Power Sale: 1.6%

✍Key Metrics:

🔸M Cap:  ₹ 7,998 Cr.

🔸P/E: 75.4

🔸CMP: ₹ 3,840

🔸ROCE: 83.8%

🔸3 Years Sales Growth: 295%

✍Financials Highlights Q2FY24:

🔸Revenue at ₹150 Cr

🔹YOY:⬆24%

🔸Operating Profit at ₹28 Cr

🔹YOY: ⬆116%

🔸PAT at ₹18 Cr

🔹YOY: ⬆125%

✍Important Ratios/Metrics:

🔸Debt/Equity: 0.34

🔸PEG Ratio: 0.29

🔸EV/EBITDA: 51

🔸Working Capital Days: -33

✍Future Outlook:

🔸The company expects an EBITDA margin of around 15% to 25%. 

🔸Company is expected to generate O&M revenue of around ₹10-10.5 Cr for the full year.

🔸Installed capacity of solar and wind expected to double to 218 GW in the next five years.

🔸Company is setting up a 1 MW green hydrogen plant integrated with the ecosystem on a BOB basis.

✍Shareholding Pattern:

🔸Promoters:  74.46%

🔸DIIs: 0.09%

🔸Retailers: 25.43%

www.aasthafintech.com 

 

CMP – 117

✍🏻 Fundamental Analysis of Jamna Auto Industries:

Jamna Auto Industries – Future Plans

CMP – 117

✍🏻 Fundamental Analysis of Jamna Auto Industries:

 India’s infrastructure is growing at a rapid rate, led by an increase in consumer as well as government spending on infrastructure. This has increased the demand for goods to be transported throughout the country.

✍🏻 Company Overview:

Jamna Auto Industries was founded by Bhupinder Singh Jauhar in 1954. What began as a small shop in Yamunanagar selling springs now provides all kinds of suspension solutions for Commercial Vehicles (CVs). The Company is currently headed by Randeep Singh Jauhar, who serves as the Company’s Chairman and managing director.

Jamna Auto provides Leaf Springs, Parabolic Springs, Lift Axles, Trailer Suspension and Air suspension, and Allied components for the segments of Commercial Vehicles (CV). 

It has 8 existing plants, 2 newly launched & 2 plants under construction, spread across India. Its clients include the likes of Tata Motors, Force Motors, Ashok Leyland, Scania, Volvo, Isuzu, and Bharat Benz among others.

Now we will understand Jamna Auto’s segments individually

✍🏻 Segment Analysis

Original Equipment Manufacturers (OEMs): It currently comprises Conventional Leaf Springs, Parabolic Leaf Springs, and Z-Springs among others. It soon plans to launch Bogie Bracket, ATS Bracket, Hanger Shackles, Spring Pin & U-Bolt. 

Ashok Leyland, Bharat Benz, Force Motors are the OEM clients of Jamna. It also has collaboration with NHK Spring Co. Ltd, Japan for Tapered Leaf Springs & Ridewell Corporation, USA for manufacturing of Design & Manufacturing of Air suspension Axles.

✍🏻 Domestic : In this segment, the Company offers Brake Lining, Trailer Axle, Water Pump, and Clutch among others. Jamna has 300 + distributors, 11500+ stores, and 15000+ mechanics. The company is focusing on addressing market of highly consumable items.

✍🏻 International : Jamna currently exports 800 different items to over 15 countries across the globe. It aims to add approx. 40 new countries in the next 12 months. It has two domestically set up manufacturing plants that exclusively cater to its export requirement. It has also set up a dedicated team in United States, Latin America & Commonwealth of Independent States (CIS).

✍🏻 Agri-division: Under this division Jamna offers Rotavator, Cultivator, Fertilizer Broadcaster, Laser Land Leveller & 5 such other products. It is also set to launch a whole host of products such as the Sub soiler, Disc Plough, Trailer, Mulcher,

In FY2023, the Company also began to supply agricultural implements for the open market and it currently focuses on developing products for M&M’s export requirements. With the intent of increasing its content per vehicle, the company has commenced the supply of machined castings to Leyland in Uttaranchal for mining and heavy trucks.

✍🏻 Industry Overview:

The Indian auto ancillary industry is one of the crucial industries in India and contributes 2.3% to the total GDP, employing about 15 Lakh people directly and indirectly. The sector derives 61% of its revenue from OEMs, 18% from the aftermarket, and 21% from exports.

The Commercial vehicle demand grew as high as 34% in the previous year, close to the pre-COVID peak level of FY19. This led to an equivalent rise in its ancillary sector. The sector is estimated to grow by 14-16% this fiscal year. 

An increase in demand for Passenger & commercial vehicles in FY23 would help increase the demand from OEMs to grow by 18-20%. The demand growth for aftermarket products is estimated to be 7-8% this fiscal. The export business witnessed 40% growth in FY22 and is expected to increase 8-10% in FY23 owing to stable demand from the European and US markets.

Growth in infrastructure development spending, road construction projects, mining, E-commerce & construction activity is primarily driving demand for CVs.

The industry ended the year on a strong note, with impressive growth among OEMs as well as after-market. The implementation of the scrappage policy is likely to spur further demand for CVs. However, supply chain disruptions and fluctuation in commodity prices remain a challenge haunting the auto ancillary industry

✍🏻 Jamna Auto Industries – Financials:

Revenue & Net Profit Growth

Jamna grew its topline by 35.36%, growing from Rs. 1718 Cr. in FY22 to Rs. 2523 Cr. in FY23 to hit a 5-year high. Despite such high growth in revenue, the Company was able to increase its profitability by only 19.58%, from Rs. 141 Cr. in FY22 to Rs. 168 Cr. in FY23. 

However, the Company’s performance is really slow on a long-term basis recording a 5-year CAGR of only 2.16% & PAT of 5.2%.

The Company also reported a spectacular jump in Operating cash flow increasing by 343x over last year on account of conversions of Trade Receivables to cash. 

✍🏻 Profit Margins

The Company has reported 11.27% Operating Margins (OPM) & single digit Net Profit Margins (NPM) of 7.24%. 

The Company hit a 3 3-year low in terms of OPM. This goes to show how the industry as well as the Company operate on razor-thin margins.

Raw material is the most significant cost driver for the Company, costing 68.3% of its Net Sales, while fuel & employee benefit expenses cost 7.32% & 6.24% respectively. 

✍🏻 Return Ratios

Despite tackling razor-thin margins, the company reports a RoCE of 27.95% & RoE of 23.02%, a 4-year high for the Company. Return ratios increased due to the increase in PAT of Rs. 168 Cr., which was a 5-year high for the Company. 

The fact that the Company is able to maintain a RoE above 20% despite single-digit margins shows that the Company is not focused on reinvesting its earnings rather than taking debt.

✍🏻 Debt Analysis:

Jamna Auto is virtually a debt-free Company, with a D2E of 0.02x. Its debt-to-equity ratio fell from 0.26x last year, on account of repayment of short-term obligations that came down from Rs. 178 Cr. to just about Rs 19 Cr. This led to even stronger fortification in the Company’s finances as the Interest Coverage ratio jumped from 46.85x to 67.45x.

✍🏻 Future Plans Of Jamna Auto Industries:

A new plant has been established in Jharkhand, which is anticipated to be fully operational by the second quarter of FY 24. The facility will manufacture parabolic springs for use in Heavy Commercial Vehicles (HCVs). This is in response to the growing need for lighter products, to comply with BS6 norms.

The Company has also increased its Capital Expenditure (CAPEX) from Rs. 37 Cr. in FY22 to Rs. 88 Cr. in FY23, a 139% increase.

The Company has set a target “Lakshya 50XT” which aims to earn 50% of its revenue from its new products segment, new markets, and Dividend Payout from the current 44%, 20% & 45% respectively. It has set a deadline of 2027 to achieve these targets.

✍🏻Conclusion :

After a thorough analysis of Jamna Auto Industries, we understand that the Company is poised for spectacular growth on the back of the Commercial vehicle segment.

The Company also increased dividend payout to its shareholders, by 80%, from Rs. 39Cr. To Rs. 72Cr. This resulted in the dividend payout ratio (DPR) increasing from 43% to 45%, it now targets to achieve a DPR of 50% in the upcoming 5 Years.

www.aasthafintech.com

𝗝𝗶𝗼-𝗕𝗹𝗮𝗰𝗸𝗥𝗼𝗰𝗸

𝗝𝗶𝗼-𝗕𝗹𝗮𝗰𝗸𝗥𝗼𝗰𝗸: 𝗔 𝗕𝗲𝗵𝗲𝗺𝗼𝘁𝗵 𝗶𝗻 𝘁𝗵𝗲 𝗠𝗮𝗸𝗶𝗻𝗴

✍🏻 Multiple analysts and fund managers are discounting Jio Fin as a stock to stay away from due to intense competition in the financial services space.

But I have a different opinion.

✍🏻 Let’s first understand the major players behind the partnership and bit of history.

✍🏻 Jio Fin comes from the stable of Reliance and headed by Isha Ambani – rumoured to be Mr. Ambani’s favourite. Assisting her is the legendary KV Kamath, a former chief of the BRICS NDB Bank.

Isha Ambani has stellar credentials – she’s a graduate of Yale and a postgraduate from Stanford. Those are literally the best business schools in the world.

✍🏻 KV Kamath was the successor to Narayana Murthy at Infosys and was the main architect behind ICICI Bank.

There’s no way Mr. Ambani is going to let her daughter fail, and will put his full force and support in making sure Jio Fin takes off the ground and flourishes.

✍🏻 The partnership with BlackRock is intended to help the firm go global once it finds its footing in India.

Now let’s look at BlackRock – the world’s largest asset management company (AMC).

It manages $9.42 trillion worth of assets, or 3x the GDP of India.

✍🏻 Their managers are on the board of every major corporation in the U.S influencing decisions.

An unparalleled corporate network.

✍🏻 When BlackRock started up in a single room office with 8 people in 1988, the AMC landscape in the US was already very mature. The biggest AMCs during that time:

1. Goldman Sachs

2. T.Rowe Price

3. Vanguard

4. State Street

5. SS&C Advent

6. American Century

7. Bessemer Trust

Even in such a crowded space, founder Larry Fink and team quadrupled their assets within ONE YEAR.

✍🏻 In 2006, just 18 years after founding, BlackRock crossed $1 trillion in AUM.

It’s safe to say that they know a thing or two about scaling up in the AM space.

Now let’s come back to Jio Fin. Their lending portfolio as of Jan 2024 are identified as follows:

1. Secured lending for electronics with a Device-as-A-Service (DaAS) model

2. Supply chain financing for trade & commerce

3. Lending against shares & mutual funds

✍🏻 All three are well risk-diversified and untapped for deep penetration.

Subsidiaries:

Insurance Broking – Non-brainer. Currently tied up with 27 insurance companies.

Payment Solutions – Consolidate ops under JPSL.

Reliance Strategic Holdings Ltd – Assets of ₹4.9 lakh crores ($6 billion) in 17.2 crores RIL shares

All looking solid.

✍🏻 The Jio-BlackRock JV partnership would be initially restricted to their mutual fund business for which the company has already filed applications with SEBI.

Initial investment will be a total of $300 million & will have its own management team overseen by the same BoD of JioFin.

There’s no question of efficiencies in both the companies as they’re both listed in their respective countries and have a great track record.

✍🏻 This will be BlackRock’s second outing in India after a failed partnership with DSP, and they’re set to make it count.

Jio Fin has ready access to a massive database of Jio Telecom users who are the largest pool of data consumers in the world.

✍🏻 Customer acquisition, stratification and service would be extremely cost-effective for Jio Fin vis-a-vis other AMCs/financial companies.

Not to mention the fact that they may even apply for banking and insurance license in the future making it fully backward integrated with the full might of the Reliance Group behind it.

✍🏻 It’s a very real possibility.

In summary, the opportunity of Jio Fin confluences with what Jio Telecom had in 2016, when everyone discounted their ability to perform in a saturated market – remember the jokes about how users will have the Jio SIM for data and another for calling?

Well, we all know how that worked out.

www.aasthafintech.com 

🔋High Energy Batteries (India) Ltd:

 A Micro-cap powering the Nation’s Defense and Mobility with Cutting-Edge Battery Solutions

✍Company’s historical background:

🔹Established in 1979 for manufacturing 45Ah Silver Oxide Zinc batteries for MIG Aircraft. 

🔹In 1981, expanded into missile battery systems in collaboration with DRDL, supplying batteries for PRITHVI, AGNI, and BrahMos.

🔹In 2009, diversified into Lead Acid Batteries for Auto and VRLA for Standby Applications in the consumer market.

✍About the company:

🔹Company is engaged in the business of manufacturing Hi-Tech batteries for use in Army, Navy, Airforce and Launch Vehicles and also commercial batteries for Auto and Standby VRLA applications and also exports products to various countries.

✍Market Share:

🔹Co is the sole supplier of silver-zinc batteries to the Indian Navy defense and holds a market share between 65% and 70%.

✍Products Portfolio:

🔹Co manufactures Aircraft Batteries, Torpedo Batteries, Missiles, and Helicopter Batteries.

👉EMS Ltd 

Business overview

EMS Limited is a multi-disciplinary EPC company, headquartered in Delhi that specializes in providing turnkey services in water and wastewater collection, treatment and disposal.

 EMS provides complete, single-source services from engineering and design to construction and installation of water, wastewater and domestic waste treatment facilities

👉 Revenue Split

⭐Water and Wastewater Treatment: 78.7%
⭐Electrical Transmission and Distribution: 13.2%
⭐Operation and Maintenance of Water and Wastewater Projects: 8.1%

👉 GROWTH STRATEGIES

⭐Entering new geographical markets: If they’re currently focused on a limited region, expanding into new countries or continents could unlock significant growth potential.
⭐Pursue new types of projects: Depending on their existing expertise, venturing into different infrastructure sectors, like renewable energy or water treatment, could offer fresh opportunities.
⭐Improve project management and execution: Implementing lean principles and optimizing project workflows can boost efficiency and profitability.

👉Role of company in clean india segment

⭐Providing EPC services for Clean India projects: Even if they don’t directly develop Clean India solutions, EMS LIMITED could be involved in building
⭐Partnering with other Clean India initiatives: They could collaborate with government agencies, NGOs, or private companies to bring their expertise to Clean India projects.
⭐Developing and adopting clean technologies: By implementing sustainable practices within their own operations and projects, they can contribute to the Clean India mission.

👉 Fundamental ratios

⚡Market Cap : ₹ 2,512 Cr.

⚡Current Price : ₹ 452

⚡Stock P/E : 23.4

⚡ROE : 24.8 %

⚡OPM : 27.7 %

⚡ROCE : 32.7 %

⚡Qtr Profit Var : 53.7 %

⚡Qtr Sales Var : 73.9 %

⚡ROIC : 24.1 %

⚡Return on assets : 19.0 %

⚡Debt to equity : 0.07

www.aasthafintech.com 

👉 HFCL Limited 🆚 RITES

🌟 Both Company Analysis👇

👉HFCL Business overview

HFCL Ltd (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high end telecom equipment, Optical Fiber and Optic Fiber Cable (OFC).

👉Rites ltd Business overview

Established in 1974, RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach.

The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).

👉HFCL Revenue Split :-

⭐Telecom Products:67%
⭐Power Projects : 14%
⭐Services: 19%

👉Rites ltd Revenue Split :-

⭐Consultancy Services: 45.5%
⭐Turnkey Projects : 23.9%
⭐Leasing : 4.5%
⭐Manufacturing : 34.1

👉HFCL Product portfolio :-

⭐Fiber Optics
⭐Telecommunication
⭐Defense
⭐Railway Communications
⭐System Integration Services

👉Rites ltd Product portfolio :-

⭐Rolling Stock
⭐Railway Equipment
⭐Software Solutions
⭐Technology Transfer

👉HFCL Order book

HFCL’s total consolidated order book stood at ₹7,009 crore

👉Rites ltd Order book

The order book of RITES Ltd was ₹5008 crore

👉HFCL Client

⭐Vodafone Idea, Airtel, Jio, Bharti Airtel, BSNL, MTNL,
⭐Indian Armed Forces: Army, Navy, Air Force
⭐DRDO
⭐Indian Railways
⭐Metro rail

👉Rites ltd Clients

⭐Central Government
⭐State Governments
⭐Public Sector Undertakings (PSUs)
⭐Multilateral Agencies
⭐Private companies

👉HFCL Manufacturing facilities

⭐Solan, Himachal Pradesh: This state-of-the-art electronics manufacturing plant
⭐Gurgaon, Haryana: This facility focuses on the production of optical fiber cables and related products.
⭐Goa: Another optical fiber cable and product manufacturing facility.
⭐Chennai, Tamil Nadu: This is HFCL’s newest plant, which started commercial production of optical fiber in November 2023
⭐Hosur, Tamil Nadu: This facility manufactures cable reinforcement solutions.

👉Rites ltd Manufacturing facilities

It has a wide range of experience in the manufacturing sector, having provided consultancy services for the setting up of new manufacturing facilities, as well as for the modernization and upgradation of existing facilities.

👉HFCL Key projects

⭐5G network rollouts: HFCL is playing a key role in the rollout of 5G networks in India.
⭐Railway communications: HFCL has implemented various communication networks for the Indian Railways
⭐Open-source Wi-Fi 7 Access Point: HFCL developed the world’s first open-source Wi-Fi 7 Access Point

👉Rites ltd Key projects

⭐Railway Infrastructure: Third line from Pendra Road to Anuppur, PMC work for railway electrification across 2200 KM
⭐Highway Development: PMC for KIIFB-funded road and bridge projects in Kerala,
⭐Airports: Design and PMC for development of airports at Chitrakoot and Raichur.
⭐Urban Infrastructure: Detailed engineering & project supervision for development of ICD at Karambeli, Vapi.

👉HFCL Growth strategies

⭐Dedicated 5G business division: HFCL has established a specific division to capitalize on the immense opportunities in India’s 5G rollout. This division focuses on product development, in-system integration, and O-RAN solutions.
⭐Developing 5G-ready products: HFCL is actively innovating and launching new products compatible with 5G networks, like Access Points, Wi-Fi Access Points, and Unlicensed Band Radio.
⭐Focus on R&D: HFCL continuously invests in research and development to stay ahead of the curve. This includes collaborations with global tech giants and initiatives like the 5G Lab-as-a-Service and open-source Wi-Fi 7 Access Points.
⭐Adopting transformative technologies: HFCL is actively embracing new technologies like AI, IoT, and cloud computing to enhance their product offerings and internal processes

👉Rites ltd Growth strategies

⭐RITES Videsh: This initiative aims to tap into opportunities in international markets, particularly in Africa and Southeast Asia. They have already secured several projects in these regions and are actively looking for more.
⭐New-age areas: RITES is also exploring new areas of growth within the transport sector, such as intelligent transportation systems, logistics, and urban mobility.
⭐Railways: RITES has a strong presence in the Indian Railways sector and is looking to further capitalize on the government’s focus on railway infrastructure development.
⭐Other infrastructure sectors: The company is also expanding its presence in other infrastructure sectors, such as roads, highways, ports, and airports

👉HFCL Future initiatives

⭐Emerging Technologies: HFCL is constantly exploring new technologies to be future-ready. They are actively involved in research and development activities related to next-generation technologies like AI, IoT, and cybersecurity solutions.
⭐Social Responsibility: HFCL has a strong commitment to corporate social responsibility (CSR). They carry out preventive healthcare initiatives across India and support community development projects.
⭐Financial Performance: HFCL plans to further improve its financial performance by focusing on operational efficiency, margin improvement, and debt reduction.
⭐Defense Equipment Manufacturing: HFCL is setting up a greenfield facility for manufacturing defense equipment. This aligns with the “Make in India” initiative and aims to cater to the increasing demand for domestically produced defense electronics

👉Rites ltd Future initiatives

⭐Green Infrastructure Solutions: Integrating sustainability into all infrastructure projects, focusing on renewable energy, energy efficiency, and carbon neutrality. This could involve developing green airports, railways, and roads, as well as implementing carbon capture and storage technologies.
⭐ESG Compliance: Aligning operations and projects with Environmental, Social, and Governance (ESG) principles, potentially leading to improved stakeholder engagement and attracting environmentally conscious investors.
⭐Circular Economy Practices: Promoting resource efficiency and waste reduction through initiatives like reuse, recycling, and upcycling in infrastructure projects.

👉HFCL  Fundamental ratios

⚡Market Cap : ₹ 14,245 Cr.
⚡Current Price : ₹ 99.7
⚡Stock P/E : 46.6
⚡ROE : 10.2 %
⚡OPM : 13.4 %
⚡ROCE : 15.2 %
⚡Qtr Profit Var : -15.2 %
⚡Qtr Sales Var : -5.28 %
⚡ROIC : 13.0 %
⚡Return on assets : 5.97 %
⚡Debt to equity : 0.25

👉Rites ltd  Fundamental ratios

⚡Market Cap : ₹ 15,115 Cr.
⚡Current Price : ₹ 629
⚡ROE : 21.3 %
⚡OPM : 27.4 %
⚡ROCE.: 29.7 %
⚡Qtr Profit Var : -23.6 %
⚡Qtr Sales Var : -11.6 %
⚡ROIC : 24.2 %
⚡Return on assets : 9.64 %
⚡Debt to equity : 0.00

👉HFCL Shareholder Pattern

⭐Promoters ; 37.84%
⭐FIIs : 8.18%
⭐DIIs : 4.55%
⭐Public ; 49.37%
⭐Others : 0.08%

👉Rites ltd Shareholder Pattern

⭐ Promoters : 72.20%
⭐FIIs : 3.22%
⭐DIIs : 12.27%
⭐Public : 12.31%

www.aasthafintech.com

        Solar Industries

 CMP –  6715                               

It all began in 1995 Founded by visionary Shri Satyanarayan Nandlal Nuwal, Solar Group has evolved from a single site manufacturing company in 1995 to a globally recognised *Industrial Explosives 🧨 manufacturer today.  With our extensive experience, expertise and potential founded on our years of experience in the Industrial Explosives segment, we have entered into Defence and setup one of the world’s most integrated facilities for Ammunition.

Perfect Recipe for MultiBagger :

✅Sales is growing at rapid pace 

✅Margins are increasing or stable 

✅Capex through internal accruals

✅Low Retail shareholding 

✅Consistent Cash generating machines

Intelligent Advisory Portfolios (IAP) are third party products which are offered by SEBI Registered Investment Advisors(RIA).

•Pre packaged equity portfolios offered by Registered Investment Advisors (RIA).
•Range of Product offering to suit all customer profile.
•100% Automated advice by RIAs & Online Investment process.
•24X7 portfolio monitoring basis product Rules.
•Realtime portfolio tracking for clients.

Why do you require investment? How to choose the best mutual fund investment? Why mutual fund is important? How does mutual funds advisor in Surat help a common investor? These and many other relevant questions will be answered in this blog. 

Before we take a deep dive into the subject, it makes sense to clear the picture about investment and mutual funds. 

Why do you require investment?       

Investment means saving money for future emergencies if any. Investment helps you to stay independent and don’t rely on others in case of financial hardship. The money saved in the form of investment helps in meeting crises, like an accident or supporting wedding expenses. Investing is a perfect way to allow your money to work for you by building wealth. For further information, you can connect with an investment advisor.   

From the basics, let’s now shift our focus to the core issue.    

The mutual fund helps the investor          

Over the years, the mutual fund has emerged as one of the best ways to secure your future. This is one of the practical ways to outpace inflation and increase your wealth. The market is flooded with plenty of mutual funds. How to choose the best mutual fund? Getting help from mutual funds advisor in Surat is the right step. What are those tips? Here are a few important tips that you can follow while choosing a mutual fund: 

Tip 1: History of the company               

It has been observed that good funds have the capability to outperform market risks and conditions. Learn about the history of the company, and its past performance, before you choose the mutual fund for investment. Getting guidance from an investment Consultant in Surat will be perfect  

Tip 2: Consistent performance 

How does the mutual fund, you are all set to buy have been performing for the last couple of years? This parameter shows the consistency of the mutual fund; you are all set to buy. Consistency matters as a fund that has been generating 12%, 13%, and 15% returns over the last 3 years are likely to give good returns in the future, compared to another fund of a different company that has generated 10%, 7%, and 9% returns over the last three years. For in-depth information, you can connect with mutual funds advisor in Surat.    

Tip 3: Fits your financial budget            

Another important quality of winning a mutual fund is that it fits well into your long-term financial plans. It should be best in terms of returns, liquidity, and tax efficiency. Mutual funds advisor in Surat holds the expertise to help you choose the perfect funds for investment. 

Tip 4: Risk associated with the funds 

According to experts, before buying the funds for future investment, don’t forget to discover various risks associated with the funds. A fund that offers 14% returns with 10% volatility is far better than a fund that offers 18% returns with 40% volatility.   

Tip 5: Monitor your fund                                           

Mere choosing the fund and making an investment doesn’t mean, your job is done. It’s important to monitor funds regularly.    

Conclusion 

Never jump in haste when choosing the mutual funds for your investment needs. Follow these tips properly to choose the best mutual funds for your future. Feel free to connect with a leading mutual funds advisor in Surat.