Queries
16 Outlook Money March 2018 http://www.outlookmoney.com
A jAY
Please tell me about the
future prospects of Arrow
Green Tech Ltd. I want to
invest in this company for
the long-term.
According to available details, Arrow
Green Tech Ltd is a manufacturer
of water soluble films in India.
Currently, the shares of the company
having face value of `10 are trading
on NSE at around `475 per share
and the 52 week high/ low is ` 715
and `415, respectively. At current
price, the stock is available at P/E of
20.79 and the market cap is `554.
crore. The company’s revenues
and EPS have gradually increased
from `48.89 crore (EPS `19.51) in
FY 2014-15 to `51.48 crore (EPS
`26.44) in FY 2015-16 and `53.
crore (EPS `28.72) in FY 2016-- As per announcements, the
company is understood to have plans
to increase its water soluble films
capacity from 150 tonnes to 450
I have a PPF account with
SBI. In 2015, I opened a
Sukanya Samriddhi Account
(SSA) in SBI for my eight-
year-old daughter, with me
as natural guardian. Her
PPF account was opened in
2010 in Andhra Bank, with
my wife as the guardian. Isthere any rule that says a
girl child cannot have both
PPF and SSA accounts? If
I invest `1.5 lakh per annum
in the SSA account and my
wife invests `1.5 lakh in my
daughter’s PPF account,
would both the accounts
earn interest? What are thetax implications, if any?
There is a clear guideline that
says a girl child can have both
SSA and PPF accounts. This
way you can deposit a total
of `3 lakh in a financial year in
her name. SSA was launched
for the social security of the
girl child, whereas, PPF can
be opened by any citizen of
India, except NRIs. There is
no conflict in having both the
accounts as long as her status
is non-NRI. Both accounts
will earn interest as per the
applicable interest rate without
any implication. However, you
cannot invest more than `1.
lakh in a financial year between
the guardian and minor.
Interests earned from both the
accounts are tax-free.
Neeraj Chauhan, CEO,
The Financial MallNaGarajaN raOtonnes. Considering the prospects of
the company and the fundamentals
discussed, you may take an informed
decision on investment in the said
company.
suresh surana , Founder
rsM astute ConsultingAKASH SHAH
As a beginner, I want to
invest `3,000 per month in
mutual funds through SIP
only. I have three funds in
mind – Franklin India Prima
Plus, Kotak Select Focus
Regular, HDFC Balanced
Fund. I can wait for five to six
years. Will these funds give
good returns?
You have selected one large-cap,
one multi-cap and one balanced
fund in your portfolio. Considering
your time horizon, I suggest you to
replace Franklin India Prima Plus
Fund with Franklin India Prima
Fund. You can expect good returnsfrom these schemes in the long term.
Neeraj Chauhan, CEO,
The Financial MallDEEPAK TANWAR
I want to invest in the share
market via SIP. Is two to
three years a good time
horizon for returns?
SIP is a great way to invest in
equities/ share market. Start
investing in equity mutual funds
via SIP, so that your portfolio is
managed by a professional fund
manager, is diversified and you are
averaging out your costs by investing
on a monthly basis. Second, equity
investments are subject to market
risks, so you will see volatility of
value of your portfolio. Two to three
years isn’t long enough to make good
returns. Stay invested for five to
seven years, and you will definitely
reap the rewards.
shweta jain, CFP, Founder,
investography Pvt Ltd