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Franklin Templeton Fallout pg 54 Falling Interest Rates pg 72 MAY 2020, ` 50 OUTLOOKMONEY.COM AN OPPORTUNITY BECKONS IN A CRISIS India’s consumption story will revive and become a critical driver for the long-term GDP growth, say experts 8 904150 800027 0 5 www.outlookmoney.com May 2020 Outlook Money 1 Contents MAY 2020 VOLUME 19 ISSUE 5 FIGHT COVID-19 WITH FACTS, NOT FEAR As the economy remains chained down by the virus, it is important to take calculative measures to flatten the spread curve pg 16 Regulars 8 Talk Back 12 Queries 15 News Roll 83 Dear Editor Cover Design: VINAY DOMINIC HEAD OFFICE AB-10, S.J. Enclave, New Delhi 110 029; Tel: (011) 71280400, Fax: (011) 26191420 OTHER OFFICES Bangalore: (080) 43715021 Kolkata: (033) 46004506, Fax: (033) 46004506; Chennai: (044) 42615225, 42615224; Fax: (044) 42615095; Mumbai: (022) 50990990, Printed and published by Vinayak Aggarwal on behalf of Outlook Publishing (India) Pvt. Ltd. Editor: Arindam Mukherjee. Printed at Kalajyothi Process Pvt. Ltd. Sy.No.185, Sai Pruthvi Enclave, Kondapur – 500 084, R.R.Dist. Telangana and published from AB-10 Safdarjung Enclave, New Delhi 110029 For Subscription queries, please call: 011-71280462, 71280400 or email: [email protected] Published for the month of May 2020; Release on 1 May 2020. Total no. of pages 83 Outlook Money does not accept responsibility for any investment decision taken by readers on the basis of information provided herein. The objective is to keep readers better informed and help them decide for themselves. www.outlookmoney.com May 2020 Outlook Money 3 Contents pg 76 Clearing The Anju Bobby George Mary Kom Jeje Lalpekhlua Complexity Athlete Boxer Footballer RBI’s announcement of EMI moratorium facility can be a massive relief for one section of the population, and a burden for the other section Impact Of Falling Interest72 Rate To mitigate the risk, one should explore the alternative class and Bhaichung Bhutia Virender Sehwag Sanjay Manjrekar stay safe Footballer Cricketer Cricketer Crisis Of Confidence A Shock For A New Form Of 54In Market 64The Insurers Finance74 Franklin Templeton Mutual Fund’s Removal of tax exemptions under ZestMoney has been successfully voluntary closure of six debt Section 80 C might put some in a lending out required financial schemes comes as a rude shock to severe financial risk support to lakhs of millennials investors and GenZ 68 Restructuring Finance 56 Stock Pick Amid Crisis 80 My Plan Focusing on a strong track record It is important to be financially safe Current portfolio valuation might with Hindustan Unilever and by setting aside some reserve as not be high, but will grow once the HDFC Bank liquid assets market recovers Rani Rampal Mithali Raj Pullela Gopichand 58 Morningstar Hockey Player Cricketer Badminton Player In focus: Nippon India Dynamic Bond Fund, ICICI Pru Value Discovering Fund, Franklin India Equity Fund pg 52 Where The Economy Stands Arun Lal Harbhajan Singh Mehrajuddin Wadoo What the global agencies Cricketer Cricketer Footballer have to say about the future of India’s GDP Columns Ajay Bagga, Devangshu Dutta, Sandip Mukherji, Susmit Patodia 4 Outlook Money May 2020 www.outlookmoney.com Anju Bobby George Mary Kom Jeje Lalpekhlua Athlete Boxer Footballer Bhaichung Bhutia Virender Sehwag Sanjay Manjrekar Footballer Cricketer Cricketer Rani Rampal Mithali Raj Pullela Gopichand Hockey Player Cricketer Badminton Player Arun Lal Harbhajan Singh Mehrajuddin Wadoo Cricketer Cricketer Footballer www.outlookmoney.com May 2020 Outlook Money 5 Chapter One Firms Rejig On Liquidity Crisis he second phase of the nationwide hopefully, liquidity will start improving. lockdown on account of the But thankfully, all is not lost at the stock COVID-19 crisis has brought in markets at least. The markets have been Tmore difficult times for investors. While the behaving quite erratically of late, losing most markets have behaved erratically leading to of the time and experiencing moderate gains considerable loss of investor money, there from time to time. Ever since the pandemic has been a liquidity crisis in the market set in, the Sensex and the Nifty have dropped Rebuilding wealth wiped which is leading to many financial companies by an average of about 30 per cent, which, out in bouts of turbulence as rethinking on their existing products and though a huge loss, is not the maximum markets see huge outflow schemes. Indian investors have seen. Experts feel that Last week the biggest news that came in Indian investors, at least a large number of was that of Franklin Templeton, one of the them, have seen larger losses when the Sensex earliest global financial companies to launch had tanked by a larger amount. This includes operations in India, to take the inevitable and the Harshad Mehta scam, the dot com bubble unprecedented decision of closing down six burst and the Ketan Parekh episodes when of its high performing fixed income and credit the markets had tanked by around 50 per risk funds in its India unit with a total AUM cent. If the market had dropped by a similar of over `30,000 crore. Ostensibly, the decision amount now, the Sensex ideally should have came in because of a lack of liquidity in the come down to around the 17,000-18,000 bond market. It is also true that India’s debt level. The fact that the Sensex is still ruling market has been feeling the pinch ever since at around 31,000 despite the repeated falls the COVID-19 pandemic started and created a shows that the markets are still pretty resilient liquidity crisis as people stayed home. as compared to their historical past and can While this is the first big fund house to withstand these developments and pressures. withdraw major schemes from the market, If things proceed as expected, we should see the move is certain to prompt other big fund the Sensex getting back to the 35,000-36,000 houses to follow suit and withdraw schemes level by October. from the market because of lack of liquidity. The other good news is that Foreign Obviously, this will make matters worse and Portfolio Investors who had exited the market aggravate the situation as liquidity is not couple of months ago, have started making expected to improve in the market or at least inroads into the Indian markets again. This until the lockdown is lifted and normalcy should give a booster shot to Indian investors returns to the markets. This will considerably and bring back investor confidence. As and dent investor confidence and narrow down when the government opens up various options for investors, especially in the debt sectors and the lockdown is lifted gradually, market. the market is expected to become more Most people are hoping that things will resilient and bring in gains for investors. start getting normal from May-June, if, at The next few weeks would be defining for all, the government lifts the lockdown and Indian investors and would determine how people start getting back to their regular the markets behave and what happens to routines. However, things are still grim on investors’ money. The government has come the COVID-19 front and it is highly possible out twice in the last one month to provide that the lockdown will either get extended a booster package to lift sentiments. It is nationwide or at least in several pockets in expected to further announce packages for various states, which means that things will investors and the economy which will bring in not return to normal till coronavirus infection good tidings for all. In the meantime it would cases start going on a decline noticeably. So a make sense to stay invested in the markets as ARINDAM MUKHERJEE realistic estimate would be to look at June-July profit booking in these times could bring in [email protected] for normalcy to return to the markets when, less than expected results. Please stay safe. 6 Outlook Money May 2020 www.outlookmoney.com Always You First. Open a Savings Account and get up to 7% interest p.a. Because for us, it’s Always You First. Introducing IDFC FIRST Bank, a bank that always puts you first. It’s why we offer 7% interest p.a. with an assured 6% interest p.a. on our Savings Account. Open an account and get returns better than the prevailing banking industry deposit rates, with access to your money at all times. So bank with us, and see what it’s like to always be first. Up to `1 Lakh - 6.00% p.a. > `1 Lakh - 7.00% p.a. Rates are applicable for domestic, NRE and NRO Savings Accounts. Frequency of interest payout will continue to be on quarterly basis. Open an IDFC FIRST Bank account NOW idfcfirstbank.com 1800 419 3332 Talk Back COVID-19 Volatility For An MF Investor I would like to compliment this cover EDITOR Arindam Mukherjee story of Outlook Money EQUITIES AND MARKETS EDITOR for putting up such an Yagnesh Kansara important thought before SENIOR ASSISTANT EDITORS Aparajita Gupta, the investors. Amid the Anagh Pal pandemic, the investors SPECIAL CORRESPONDENTS are surely befuddled, and Himali Patel, it is important to ingrain Vishav the concept of SIP and PRINCIPAL CORRESPONDENT Nirmala Konjengbam STP in such situations.