Wednesday 28 June 2023

Discipline in Investments

In our previous edition, we spoke about how easy it is and how important it is to start your wealth creation journey. To take this further and how you can partially bring in more discipline and automate your investing.

We often say this; discipline in anything is the key to success.

How much do we really follow specially when it comes to our own self, may it be pertaining to our Health, personal life goals or may it be finance / investments.

I have been observing this since sometime that slowly people who are kind of beginners or freshers or who have been thinking since sometime and have taken there most important first step towards starting there wealth creating journey.

It’s important for a person to start their investment journey and then gradually when one gets on the train the ball gets rolling.

Best way is Mutual funds once started that too especially modes like SIP / STP...These modes of investments itself creates discipline...  To inch up further and add more solid approach towards increasing our investment amount gradually without us being much bothered periodically – STEP-UP SIP is the way to go.

How does step-up sip works? 

Basically while initiating your sip we need to opt for step-up sip which basically will lead to increase in your sip amount by a lumpsum amount or it can be increased by a specific % of your existing sip amount. Say for eg. You have an ongoing sip of rs.5000/- and you want to increase your sip amount from next year by 10% so from the next year the sip amount shall become 5500/- (5000 +10% = 5500). This shall automatically lead to an increase in the basic investment amount gradually and result of this over a longer period can be very beautiful. Also it is important to decide the amount which can be non hurting the cash flow and whatever is comfortable amount.

Small Illustration depicted below

Regular SIP

    §  SIP Amount: Rs.15,000

    §  Tenure of Investment: 20 years

    §  Expected rate of return (growth rate)%: 14% CAGR (Assumed)

Amount Invested

36 Lakhs


1.76 Crores



    §  Initial SIP per month: Rs. 15,000

    §  Tenure of Investment: 20 years

    §  Step- up investment: 10% every year.

    §  Expected rate of return (growth rate)%: 14% CAGR (Assumed)

Amount Invested

1.03 Crore


3.39 Crores

Disclaimer: The above calculations shown are for illustration performance only. Mutual fund investments are subject to market risk. Refer to the scheme related documents carefully.

Author: Mr. Bhavin Shah

Latin Manharlal Group

Tuesday 17 January 2023

Wealth Creation

Every person desires to create wealth since young age. Day in, day out we work and keep hunting for business opportunities to earn money, to meet our needs and desires. We might have often experienced this that by the time we are able to gather the required amount for a specific goal and we realise that the goal has become more expensive.  Hence it becomes important for us to understand that how better the planning can be done. Please remember unless it is not planned well the cost of the financial goal is going to increase faster than the value of your investment.

As quoted by Warren Buffet “Never depend on a single income. Make investment to create second source” Hence it becomes very important that we need to plan well and get our money start working for us simultaneous with our regular income.

We being a financial service provider often come across this question that what is the right time to start investing and how much should we invest? The answer is - there ‘no right or wrong time’ to start investing, what matters is to start investing with whatever investable surplus is left. You can start your investment with as low as 2000/- rupees. For e.g. one can do a SIP (Systematic Investment Plan) through Mutual Funds. What is more important is prioritising your expenses.

Every person should manage his cash flows i.e. review his earnings, calculate his expenditure and savings and invest accordingly based on his risk appetite, financial goal and liquidity needs. In the market there are many investment options available with different characteristics like, Debt, Gold, Real Estate, REIT’s.

For the purpose of ease it is always better to have some financial goal in mind and plan for the same. Any good Financial Advisor can guide and help you better to understand your goals and invest in the right avenue.

There is an old saying that “Time in the market is more important than timing the market”. For wealth creation just setting a financial goal and choosing right investment instrument is not enough you need to give your investments time to grow and there should be disciplined and consistency in your investing habit.

Review & Rebalancing is Important for Portfolio Management

Investment is not only the important point but at the same time, review and rebalancing plays a very vital role. Like we always say regular HEATH CHECK-UP is important, similarly REVIEWING our PORTFOLIO’S HEALTH is equally important.

1.      Helps maintain the original asset mix.

2.      Better risk management.

3.      Useful in implementing changes in investment strategy.

One must review their investment portfolio periodically to identify if any market changes have led to an immersion or rise in the value of your assets, thereby making your portfolio too risky or non-progressive. Over time, the risk-to-return ratios of assets might change. You might see your risk profile and financial needs change.

Re-balancing your portfolio helps to stay in line with your asset allocation strategy and implement any changes you make in your strategy. Some of the benefits of re-balancing your portfolio are listed below:

Author Mr. Bhavin Shah

Latin Manharlal

Thursday 27 January 2022

Current Market Outlook

Foreign portfolio investors have pulled out more than $2 bn from Indian equities so far in January. In the preceding three months outflows from FPI's were close to $5 bn.

Domestic Institutional Investors continue to show their conviction in Indian equities and have bought more than Rs 7000 cr in January so far.

The systematic investment plan SIP for December 2021 hit its highest level ever at Rs 11305 cr crossing Rs 11000 cr mark for the second consecutive month.

 Markets are looking forward to the Union Budget next week on Tuesday. The market is also anxious about geopolitical tensions between Russia and Ukraine and its impact on crude oil prices.

 In the current Q3FY22 earnings season, one of the major concerns voiced by companies is the rising input costs as well as higher energy costs. However most companies remain optimistic that input costs have peaked in Q3.

At current levels of 16877 we believe Nifty trades at 23 times FY23(E) EPS. We believe Nifty can drift till 16280 levels which could be a good opportunity to accumulate quality stocks like Infosys TCS Reliance Industries ICICI Bank.

 Latin Manharlal Group

Friday 15 January 2021

Budget Expects Scrappage Policy, PLI Scheme to Boost Automotive Sector

The domestic commercial vehicle (CV) segment witnessed a steep volume contraction of 29% in FY2020, as it battled multiple headwinds. Challenges such as overcapacity in the trucking system, subdued freight availability due to a weak macroeconomic environment, cost increases due to new emission norms (BS-VI), financing constraints, and stress on the cash flows of fleet operators, have all aggrevated with the onset of the pandemic, and the lockdowns imposed to contain the same. Accordingly, fleet operators cut back new vehicle purchases, resulting in the 85% and 55% contraction in CV retail volumes witnessed in Q1 and Q2 FY2021 respectively.


The Scrappage Policy, relevant for the CV industry, has been long overdue after its initial draft was proposed in May 2016 and actions may be expected this year. The benefit of the Scrappage Policy to the industry will depend on a) the age qualification for the scrapping vehicles and b) the extent of the incentive offered. In case the age qualification is kept for vehicles older than 15 years, the impact will be muted as only a limited number of vehicles would qualify for the scheme. The CV parc older than 15 years is estimated to be around 650,000 units only. Such older trucks are generally used in hinterlands for short-haul operations by the SFOs; hence, are unlikely to be replaced, without significant commercial incentives.

A well-defined vehicle scrappage policy in India can help create an industry of its own with a business opportunity of $6 billion (Rs 43,000 crore) a year. It could generate fresh employment and trigger economic growth, and also act as a critical factor to revive the automobile market that has been hit by a prolonged slowdown. The government expects recycling of metals like steel, copper and aluminium from the scrapped vehicles to help reduce their imports. Getting the roads rid of old vehicles would also help lower pollution and the government’s oil bill, as the new vehicles replacing the old ones would be more fuel efficient.

The policy can be a win-win for all as the consumer would benefit from the scrap value, GST savings and discounts, while a dealer would gain from demand for new vehicles. For a vehicle maker, recycled metals would be available at a cheaper rate, and the government could save forex because of lower imports of these raw materials as well as get tax revenue from new vehicle sales. Already the likes of Maruti Suzuki and Mahindra & Mahindra have ventured into the recycling business and there are another half a dozen companies in queue to enter the space, say people in the know. The challenge is that scrap yards will take time to build.

The automobile industry wants the policy to cover all segments, including cars and two-wheelers and not just commercial vehicles, to create a significant scale for new players to participate in this new market. A recent study has estimated the market for vehicle scrappage and recycling at $6 billion. According to it, if the policy is defined well, 9 million vehicles could go off roads by fiscal 2021 and 28 million by 2025, largely comprising two-wheelers. It would reduce carbon dioxide emission by 17% and cut particulate matter in air by 24%. Also, if half the Bharat Stage-II and III vehicles go off the roads, it would save 8 million tonnes of oil a year.

The other factor which has a significant bearing on the automotive industry over the medium-to-longer term is the recently announced PLI scheme. The scheme aims to make India a part of the global value chain in manufacturing and plans to attract fresh investments. It has allocated Rs 57,000 crore for the auto segment and another Rs 18,100 crore for the advanced chemistry cell batteries (Li-Ion battery). These incentives have the potential to kickstart significant investments in the coming years and help the industry achieve globally competitive scales in the chosen segments. The operational details of the scheme, however, would be known only in the coming years.


Exemption from import duties on coking /anthracite coal: The Basic Customs Import Duty on Anthracite/Coking Coal is 2.5%. Since it plays a vital role in the manufacturing of Steel, it is necessary to make coking /anthracite coal available at international competitive price to make Indian steel mills more competitive. It is therefore recommended that Customs duty on Anthracite/Coking Coal as mentioned above to be reduced to NIL.

Enhancement of export duty on pellets: There is severe shortage of Iron Ore in the country due to various reasons, impacting the production of Steel in the country. This exemption from export duty on pellets is causing further shortage of iron ore in the country due to enhanced export of pellets. Therefore, in order to conserve the iron ore / pellets for the domestic consumption, it is necessary that pellet exports are discouraged by imposing the same export duty as in case of iron ore i.e., 30% on the export of pellets having Fe Grade 60% or higher

Exemption from import duty on steel grade limestone and dolomite: While cement grade limestone reserves are adequate, SMS, BF and Chemical grade limestone (required by the steel industry) are not adequate and occur in selective areas. Increase in steel production in the country, has led to rising demand for SMS and BF grade limestone. Therefore, the limestone imports have been increasing consistently. So, it is requested to exempt the Customs Duty on the limestone (CTH 2521) and dolomite (CTH 2518) from 2.5% to NIL imported for Metallurgical use in line with similar imports from ASEAN countries, without any technical condition.

Alignment of rate of GST on services provided by Govt.: it is suggested that the tax structure relating to supply of services by Govt. in respect of mines be aligned with the rate of services under SAC 997337 @5% which is applicable to ores instead of 18% at present.

Latin Manharlal Group

Thursday 8 October 2020

What are 5G Networks?

When 5G mobile networks come to India, they will use a new radio technology and a different network architecture to deliver higher bandwidth and lower latency than 4G (LTE) and 3G networks we have today. 5G promises peak data speeds of up to 10 Gbps – up to 100 times faster than the 100 Mbps of 4G. Latency, a measure of the time it takes data to travel from the phone to the distant server, could be less than a millisecond in 5G networks, or 60-120 times better than 4G

·        *  Digital networks would need expansion to connect half of world’s population

·         * Nearly half of the world still remains un-connected in 2020

·        *  India still needs to connect 55% of its population

·         * Significant investment in digital network quality is required to support new applications

·         * 1.8 bn connections of 5G needed by 2025 for 20% penetration

·         * The digital network will need to reach everyone at scale and quality

·         * 4-5X Internet Mobile traffic more digital kilometres more digital lanes - With high capacity fibre cables, 5G

·         * Millions of new users - more digital kilometres - Connect every home, every enterprise

·         * 3X Mobile Data speeds – superior speeds, response – Using software to manage network traffic (copper + wireless --à Fibre)

All Network Creators Investing Heavily in Digital Infrastructure

·         * May 2020 - China mobile to invest $14 Bn in building digital infrastructure enabling faster 5G Connectivity

·         * May 2020 - BT to invest $12 Bn in building 5G and next generation full fibre broadband across the UK

·         * March 2020 - Verizon to invest $18.5 Bn to accelerate its 5G plans globally

·         * June 2020 - Airtel to double its fixed line penetration in next three years

Cloud Companies

·         * May 2020 - Microsoft to invest $15 Bn to accelerate digital transformation in Italy including its first data center region.

·         * March 2020 - Google to invest $10 Bn in US offices and data centres in 2020 - Sets up a us $10 billion for India

Large Enterprises

·      * Enterprise spectrum sees huge demand in US, UK, Germany.

·     *  Many companies have applied to set up local 5G networks.

Citizen Networks

·         * Indian Govt. aims to provide 5,00,000 FTTH connections by Sept 2020 (part of BharatNet) FCC, US launched rural digital opportunity fund worth $20 bn.

PE Investment

·         * KKR in partnership with Telecom Italia to invest $7-8 Bn in Open Fibre deal.

       * EQT in partnership with OMERS to invest $4 Bn to acquire a fibre optic internet access company in Germany.

5G Network Rollouts Have Accelerated

Telcos continue to be bullish about 5G spend

·         * T-Mobile, US announced plans to spend $ 60 bn. on deploying 5G networks over the next 5 years

·        *  Chinese telecom companies have announced massive tenders for 5G rollouts in this Quarter (~ 10bn USD)

·        *  As of May 2020, there are approx. 300 operators investing in 5G commercial services

5G Rollouts have accelerated

·         * 11 operators have launched 5G in 2020 (till May).

·         * Bell Canada launched 5G in June.

·         * T-Mobile, Poland and Three, Sweden launched 5G in June.

·         * In HongKong, 3 operators have rolled out 5G post April 2020.

Customers are adopting 5G at unprecedented rates

·        *  Deutsche Telekom has reached 16 mn subscribers.

·        * Chinese Telecom Companies added 22mn 5G subscribers in 1 month (June 2020).

·        * South Korea has added more than half a million 5G subs in 1 month (May 2020).

Currenly, 5G is launched in few countries and under testing in many countries. According OpenSignal survey, US and Switzerland top the chart in 5G speed. U.S. users with 1,816 Mbps 5G speed which 2.7 times as fast as 4G users’ fastest speed. Switzerland came to the 2nd place with its early 5G adopters seeing speeds up to 1,145 Mbps which is 2.6 times fast than regular 4G users. Recently many smartphones makers has launched their 5G devices which are quite expensive.

How are Indian operators preparing for 5G

Reliance Jio launched its 4G service in 2016, skipping over the 2G and 3G technologies offered by rivals Airtel, Vodafone Idea and BSNL. Now it’s counting on its modern network infrastructure to make it one of the first to offer 5G service. Jio has the network and backhaul in place, needing only to invest in spectrum and equipment. Jio is also the only operator with an all-IP network, an important requirement for launching 5G services. It will conduct 5G trials with Samsung, the supplier of its 4G network, and has said it will extend its partnerships for 5G trials to include Huawei, Ericsson, and Nokia.

In July 2020, Google said it would invest Rs 33,737 crore  (USD 4.5 billion) in Jio to support the operator’s upgrade. Jio also has support from Qualcomm and Intel for its 5G plan. The latter two are Jio’s hardware enablers: Chipmaker Qualcomm is expected to offer deep technology know-how and insights to drive the 5G vision. Intel has advanced edge computing offering across processors and access to this technology can help Jio pace the 5G rollout. Google and Jio have come to a commercial agreement, where they would work together on an entry-level Android smartphone with 4G and possibly 5G capabilities.

Jio has designed its end-to-end 5G solutions from scratch using homegrown technologies. While it hasn’t given out details of its 5G solution, it expects to position itself to be an exporter of 5G systems as complete managed services in the near future.According to telecom experts, Jio could theoretically have a 15% cost advantage in 5G rollout if it uses self-built software. But there is a high possibility that Jio will extend partnerships with existing Indian providers in the 5G space to offer these solutions.

Airtel has said it will work with Huawei, ZTE, Ericsson, and Nokia on its trials. It has deployed 100 hops of 5G technology transmission equipment supplied by Huawei, improving its backhaul capacity by a factor of four, and has struck deals withCisco and Ericsson to speed up its core network in readiness for 5G service.

Vodafone Idea will conduct its trials with Huawei, ZTE, Ericsson, and Nokia, and is already using 5G AI technology from Huawei to boost the capabilities of its 4G network

Several Indian companies across software and technology solutions have already been rolling out their own global 5G solutions. From Tech Mahindra, Cyient, ITI Ltd to Sterlite Technologies Ltd and Saankhya Labs, these companies have built 5G expertise across core telecom solutions such as virtual radio access networks (VRAN), Open RAN (ORAN), chipsets and hardware, which Jio can possibly tap into for its homegrown solutions.

In fact, Jio’s Japanese peer Rakuten is already in talks with a number of Indian providers for their 5G solutions and experts estimate Jio will also onboard additional solutions from these companies.According to a UBS Evidence Lab survey from December 2019, 59% of telcos were already using network virtualization and 51% were willing to work with non-traditional vendors, suggesting these trends are opening ways for niche players, such as Jio, to get a share of global telco capex spend.

Network virtualization solutions can only work with a strong optical fibre cable (OFC) backbone. One of the leading OFC manufacturers globally, Sterlite Technologies Ltd (STL), has evolved from core manufacturing to digital networks services through acquisitions across software solutions over the past years to include solutions for virtualized access, network software products and system integration services.

Another homegrown company, Saankhya Labs, also owns intellectual property and provides radio units and chipsets for VRAN deployments

Tech Mahindra has a 17% stake in telecom software provider Altiostar, which is already rolling out cloud-based solutions for Japanese telco Rakuten. Globally, the company has been offering solutions across software-defined and cloud native networks, adoption of disaggregated networks and VRAN, among others, across markets in US, Europe and Japan.

Recently, Tech Mahindra announced a partnership with ITI, which has large manufacturing facilities, to enable manufacturing of 4G equipment and work on building capabilities for 5G equipment for the Indian market.

Another Indian company that has been present in this space is Cyient which provides intelligent network solutions for global telcos and is closely involved in 5G rollouts across Australia, South Korea, US and Europe among others apart from multiple telecom carriers globally.

Tuesday 9 June 2020

How Reliance Industries Plans to become Debt Free

8th deal for Jio Platforms in less than seven weeks – Successfully Cruising Towards Zero Debt Status –Tieups to accelerate the process of Digitization

Jio, with 388 million users, combines all of RIL’s digital and telecom initiatives, including Jio digital services, mobile and broadband, apps, tech capabilities such as artificial intelligence, Big Data, and Internet of Things, and other investments such as in Den Networks, Hathway Cable, and Datacom. Reliance’s plans are not just instruments for clearing debt and the company has now opened up to a host of global investors.For instance, the tie-up with Facebook may help accelerate the process of digitising Reliance’s retail businesses.By bringing together JioMart, which is Jio’s business initiative with Whatsapp, Facebook plans to connect people with businesses, shops and purchase products, giving them a chance to discover new products.
The collateral benefits of the Reliance Jio-Facebook deal are many.
Firstly, Facebook, which includes WhatsApp and Instagram, caters to about 400 million users. Reliance Jio also has about the same number of clients, with some overlap. But since JioMart has been formed by RIL, the company is planning to enter in a big way to start the e-commerce business and e-payment services.The Jio-Facebook combine can compete with others in the e-commerce and e-services areas for which the vast WhatsApp and Instagram subscribers will add to JioMart’s reach to compete, reduce margins, and, therefore, prices for the consumers.
Secondly, already JioMart has begun trial runs in Navi Mumbai, Thane, and Kalyan besides RIL ownership in 6,700 big and small cities of 10,900 retail stores, employing 1,25,000 people. WhatsApp is also connected to small businesses, taking orders from customers, and promoting offerings through internet and cellphones. Thus, Facebook and Jio combined will have huge market reach and consumer convenience.
Thirdly, households will be able to reach by cellphones the nearest kirana stores and place orders for home delivery, Here too, Jio-Facebook can reach this way millions of traders and kirana merchants on the cellphones and internet and thus save consumers from having to make the trip physically for purchase.
Fourthly, the Jio-Facebook combine can now easily explore, with government concurrence, the introduction of a cryptocurrency network. The government of India has already approved block chain technology. The final step of digital currency may have to wait because the regulatory infrastructure has not yet been set up. When that happens, black money will become impossible to use as legal currency in circulation. Illegal transactions via cryptocurrency and block-chain will be impossible without detection.

The potential investors will not only help in bringing down the company’s debt but also offer technological advances that can be integrated for better monetization. Therefore, it is safe to say that the company's 'zero-debt' strategy, involving leading technology companies is part of a larger plan in progress -- a technology-first vision that allows the company to expand in future.
With the recent ADIA investment, Jio Platforms has raised Rs 97,886 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks.

How Reliance Industries Plans To Become Debt Free
Name Of The Investor
% stake
Amt (Rs crore)
Silver Lake Partners
Silver Lake Partners
Vista Equity Partners
General Atlantic Partners
Mubadala Investment Co
Abu Dhabi Investment Authority
Total Stake Sale In Rel Jio
Stake Sale In Fuel Retailing Unit

Rights Issue (Rs 53125 cr)

Cash Profit Generation FY21 - Exp

Total Amount To Be Generated

Net Debt Of RIL 31.03.2020


The pursuit of 5G: Reliance Jio's ‘AatmaNirbhar’ self-dependent plan Launch of 5G-enabled technologies will unlock various disruptive new technologies; Reliance Jio has been making all-out efforts to step-up its 5G game in India. Reliance Jio has sought the government's permission to undertake 5G trials in India using its own technology and design. With this, Jio has emerged as the first Indian telecom major to seek 5G trials based on self-designed technology.

Apart from Reliance Jio, three global telecom service providers, Huawei Technologies, Ericsson, and Nokia Networks, are also vying to cash in on India's 5G plan. If trials are successful, this will also end Reliance Jio's dependence on Samsung, which was earlier its sole equipment supplier for 4G technology.

The development comes amid Reliance Jio's long-drawn plan to solidify its design and technology base in the country. From Rancore Technologies to US-based Radisys -- Reliance Jio has been making all-out efforts to step-up its 5G game in India.

The launch of 5G-enabled technologies is expected to be transformative in the telco and other industries by unlocking various disruptive new technologies. Global investment in the 5G industrial chain over 2020-2035 is likely to reach $3.5 trillion.

On the 5G front, the biggest roadblock for Jio, or for that matter any operator, is going to be steep spectrum prices. The base price of the 5G spectrum (in 3,300 megahertz to 3,600 megahertz band) is highest in India. At TRAI's recommended reserve price of Rs 492 crore per MHz, operators will have to pay around Rs 50,000 crore for 100 MHz pan-India spectrum - that's the minimum spectrum required to deliver 5G services (in sub-6000 MHz bands) as per global body ITU. The government has also said that it's not planning to reduce the base price for the 5G spectrum.

Latin Manharlal Sec. Pvt. Ltd.
Image & Data Source: Google