Mutual Funds Holding Over ₹10,000 Crore in Cash

Mutual funds, an essential vehicle for collective investment, allocate a portion of their portfolios to cash. This cash holding enables fund managers to cater to redemption requests, capitalise on potential investment opportunities, and maintain portfolio liquidity. In December 2024, mutual funds cumulatively held ₹1.87 lakh crore in cash, equivalent to 4.98% of their total assets under management (AUM), which stood at ₹36.29 lakh crore. Let’s explore the fund houses with significant cash allocations exceeding ₹10,000 crore during this period.

SBI Mutual Fund: Leading the Cash Holdings

SBI Mutual Fund, the largest fund house by AUM, reported the highest cash holdings of ₹31,767 crore in December 2024. This accounted for 4.61% of its total AUM of ₹6.57 lakh crore. 

HDFC Mutual Fund: Substantial Liquidity Reserve

HDFC Mutual Fund held ₹25,248 crore in cash, representing 6.74% of its total AUM. With an equity AUM of ₹3.49 lakh crore. 

ICICI Prudential Mutual Fund: Robust Cash Position

ICICI Prudential Mutual Fund maintained ₹23,477 crore in cash, which formed 5.86% of its total AUM. The equity AUM of ₹3.77 lakh crore. 

PPFAS Mutual Fund: Highest Percentage of Cash Allocation

Among all fund houses, PPFAS Mutual Fund held the largest percentage of its AUM in cash. The fund’s ₹18,247 crore cash holding accounted for 19.82% of its total AUM of ₹73,798 crore. 

Axis Mutual Fund: Maintaining Ample Liquidity

Axis Mutual Fund reported a cash holding of ₹15,052 crore, representing 7.69% of its total AUM. With an equity AUM of ₹1.80 lakh crore.

Why Do Mutual Funds Hold Cash?

Cash allocation in mutual fund portfolios serves multiple purposes, including:

  1. Redemption Management: Ensuring sufficient liquidity to handle investor redemptions without disrupting the portfolio.
  2. Market Opportunities: Providing flexibility to invest in lucrative opportunities as they arise, especially during market corrections.
  3. Risk Mitigation: Acting as a buffer to reduce the impact of market volatility on the portfolio.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Zen Technologies Share Price Jumps 4%; Here’s the Key Development

Zen Technologies Limited, a pioneer in defence training and anti-drone solutions, has achieved a significant milestone. The company announced the successful design registration of its state-of-the-art “60 mm Mortar Training Simulator” under the Designs Act, India. This breakthrough solidifies Zen’s position as a global leader in military training innovations.

The share price of Zen Technologies surged by nearly 4% on NSE as of 11:52 AM on January 16, 2025.

What is the 60 mm Mortar Training Simulator?

The 60 mm Mortar Training Simulator is a cutting-edge system tailored to provide an immersive training experience for mortar crews in infantry rifle platoons. By integrating realistic battlefield conditions, it enables trainees to enhance critical skills such as target acquisition, simulated firing, and fire corrections.

This simulator stands out due to:

  • Innovative Terrain Simulation: Offers diverse terrains and battlefield scenarios.
  • Customisable Training Options: Instructors can create endless training scenarios through a user-friendly scenario builder.
  • Year-Round Usability: Designed for indoor use, making it functional regardless of weather or logistical challenges.

Key Benefits

  1. Cost Efficiency: The simulator reduces expenses associated with live firing exercises.
  2. Enhanced Safety: Minimises risks compared to traditional training methods.
  3. Operational Efficiency: Ergonomic and user-friendly design ensures seamless operation.

Aligning with India’s Defence Vision

This achievement underscores Zen Technologies’ commitment to indigenous innovation. The company continues to align with India’s goal of becoming self-reliant in defence technology, with the simulator expected to gain significant global traction.

Zen’s dedication is evident in its portfolio, which includes over 1,000 training systems deployed worldwide and more than 155 patent applications. With over three decades of expertise, the company remains a reliable partner for armed forces worldwide. 

About Zen Technologies

Zen Technologies Limited, headquartered in Hyderabad, is renowned for its cutting-edge defence training and anti-drone solutions. Backed by a dedicated R&D team recognised by the Ministry of Science and Technology, the company has consistently delivered strategic solutions tailored to the needs of global defence and security forces.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Kalyan Jewellers Share Price Falls 34% in 10 Sessions: What’s Next for Investors?

Kalyan Jewellers has been on a significant losing streak, with its share price declining over 34% in just 10 trading sessions. On January 16, 2025, the stock tumbled by more than 5%, extending its downward trajectory. The decline has occurred despite the company’s impressive Q3FY25 revenue growth, raising questions about the factors driving investor sentiment.

Q3FY25: Strong Revenue Growth Across Markets

In its business update for Q3FY25, Kalyan Jewellers reported robust consolidated revenue growth of approximately 39% compared to the same period in the previous financial year.

India Operations: A Festive Boost

  • Revenue growth in India surged by approximately 41%, driven by strong festive and wedding demand.
  • Same-store sales grew by an impressive 24%.
  • The company launched 24 new showrooms in India during the quarter, with more openings planned in the coming months.

Middle East Performance: Consistent Growth

  • Revenue growth in the Middle East stood at 22% year-on-year.
  • The region contributed ~11% to the consolidated revenue, showcasing its steady performance.

International Expansion: Entry into the US Market

  • Kalyan Jewellers launched its first showroom in the United States, following a Company Owned Company Operated (COCO) model.

Digital Platform: Candere’s Exceptional Growth

  • The company’s digital-first jewellery platform, Candere, recorded revenue growth of 89%.
  • During Q3FY25, 23 new Candere showrooms were launched, further strengthening its digital and physical presence.

Addressing Allegations: Management’s Clarifications

Despite strong operational performance, the company has been plagued by allegations, including inventory overvaluation, income tax raids, and bribery of money managers to buy shares.

During an analyst call on January 14, 2025, Executive Director Ramesh Kalyanaraman addressed these concerns:

  • No Aircraft Purchase Plans: Dismissing speculation, he clarified that the company has no plans to purchase an aircraft and currently holds a helicopter on its books.
  • No Income Tax Raids: Kalyanaraman denied reports of income tax raids, reaffirming the company’s commitment to operational transparency.
  • Inventory Valuation Integrity: He refuted claims of inventory overvaluation, stating that the company adheres to stringent standards.

Market Reaction: Investor Confidence Wanes

The strong operational updates have been overshadowed by these allegations, leading to a sharp fall in the company’s share price. The stock has declined for 9 out of the last 10 trading sessions, reflecting waning investor confidence amidst the ongoing controversy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

9-Year of Startup India: Building the World’s 3rd Largest Startup Ecosystem

On January 16, 2025, India celebrates 9-year of Startup India, a transformative initiative launched in 2016 to foster entrepreneurship and innovation. Designated as National Startup Day, this milestone highlights India’s remarkable journey towards becoming the world’s third-largest startup ecosystem.

Growth of the Startup Ecosystem

As of January 15, 2025, India proudly hosts over 1.59 lakh DPIIT-recognised startups, a monumental rise from just 500 in 2016. This ecosystem thrives on innovation, with over 100 unicorns shaping industries and contributing to global progress. Major hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR lead the way, while smaller cities increasingly bolster entrepreneurial growth.

Startups in sectors like fintech, edtech, health tech, and e-commerce have addressed local challenges and achieved global recognition. Companies such as Zomato, Nykaa, and Ola exemplify this transformation, driving job creation and economic progress.

Key Milestones of Startup India

The Startup India initiative has achieved significant milestones over the past nine years:

  • DPIIT-recognised startups grew from 500 in 2016 to 1,59,157 in 2025.
  • Women-led startups rose, with 73,151 having at least one woman director as of October 31, 2024.
  • Recognised startups created over 16.6 lakh direct jobs between 2016 and October 2024, contributing significantly to employment.

Industry Contributions to Job Creation

Startups have been pivotal in creating jobs across various sectors:

  • IT Services: 2.04 lakh jobs.
  • Healthcare & Lifesciences: 1.47 lakh jobs.
  • Professional & Commercial Services: 94,000 jobs.

These contributions underline the importance of startups in driving economic growth and enhancing employment opportunities.

BHASKAR: Transforming the Startup Ecosystem

In September 2024, DPIIT introduced the Bharat Startup Knowledge Access Registry (BHASKAR) to centralise and enhance ecosystem interactions. Key features include:

  • Seamless Networking: Connecting startups with investors, mentors, and stakeholders.
  • Centralised Resources: Quick access to tools and knowledge for growth.
  • Personalised BHASKAR IDs: Streamlined interactions for stakeholders.
  • Global Outreach: Enabling international collaborations.
  • Regional Empowerment: Supporting startups in non-metro regions.

Startup Mahakumbh: Showcasing India’s Entrepreneurial Spirit

The Startup Mahakumbh serves as a flagship event to celebrate entrepreneurial innovation.

  • The 2024 edition drew 48,000 attendees, 1,300 exhibitors, and delegations from 14 countries.
  • The 5th edition, scheduled for March 7-8, 2025, in New Delhi, promises to bring together startups, unicorns, soonicorns, investors, and industry leaders, fostering collaboration and growth.

Conclusion: India’s Innovation Milestone

Nine years of Startup India signify a transformative journey that has solidified India’s position as the world’s third-largest startup ecosystem. With over 1.59 lakh startups and robust contributions to employment, innovation, and inclusivity, India’s entrepreneurial journey continues to inspire. Initiatives like BHASKAR and events like Startup Mahakumbh underscore the programme’s impact on driving economic growth and fostering a vibrant startup ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Swiggy Ventures into Sports: Launches Swiggy Sports Private Limited

Swiggy Limited, a household name in food delivery and quick commerce, is diversifying its portfolio with the incorporation of Swiggy Sports Private Limited. This strategic move reflects Swiggy’s ambition to expand its presence beyond its core business and venture into the sports and recreation sector.

The share price of Swiggy has gained over 1% on the NSE as of 10:55 AM on 16 January 2025.

Details of the New Subsidiary

On January 15, 2025, Swiggy announced the incorporation of Swiggy Sports Private Limited, its wholly owned subsidiary. Approved by the Ministry of Corporate Affairs, this entity will operate under Swiggy Limited’s control and explore business opportunities in the sports and recreation industry.

Key Facts About Swiggy Sports Private Limited:

  • Date of Incorporation: January 15, 2025
  • Ownership: 100% stake held by Swiggy Limited
  • Initial Investment: ₹1 Lakh as share capital
  • Sector: Sports activities and recreation

Objectives and Business Focus

Swiggy Sports Private Limited aims to establish a strong presence in the sports ecosystem by:

  1. Owning and Managing Sports Teams: Establishing partnerships and overseeing operations of sports teams across various disciplines.
  2. Talent Development: Nurturing athletic talent through structured programmes and resources.
  3. Event Organisation: Planning and executing sports events and related activities.
  4. Facility Operations: Managing sports venues and facilities.
  5. Broadcasting and Sponsorship Rights: Acquiring media rights and building sponsorship deals to promote sporting events.

Financial and Regulatory Details

  • Nature of Transaction: Related Party Transaction
  • Investment Type: Cash consideration
  • Industry Segment: Sports and Amusement Activities
  • Initial Turnover: As a newly incorporated entity, there is no turnover yet.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Persistent Systems’ Share Price Surges with Launch of AI-Driven Contract Management Solution

On Thursday, January 16, 2025, shares of Persistent Systems opened higher on the NSE, reaching an intraday high of ₹6,215. The surge followed the company’s announcement of ContractAssIst, an AI-powered contract management solution developed in collaboration with Microsoft. While the stock had gained an impressive 74.78% in CY2024 and 90.90% in 2023, it has lost nearly 5% so far in 2025.

Introducing ContractAssIst: Transforming Contract Management

ContractAssIst, powered by Microsoft Azure and advanced AI technologies like GPT-3.5 and GPT-4, aims to tackle the common challenges enterprises face in managing large volumes of contracts. Its features include:

  • Enhanced Workflows: Simplifies contract management processes by consolidating workflows into a centralised dashboard within Microsoft Teams.
  • AI-Driven Insights: Offers natural language processing capabilities for advanced contract analysis and intelligent suggestions.
  • Real-Time Collaboration: Integrates seamlessly with Microsoft 365 Copilot and Microsoft Teams, providing real-time communication tools and decision support.

Key Features of ContractAssIst

  1. Streamlined Navigation and Automation:
    • Reduces operational complexity.
    • Consolidates communication through an AI-powered chatbot, enabling conversational queries and intelligent recommendations.
  2. Advanced Tracking and Notifications:
    • Provides real-time version tracking and instant notifications.
    • Facilitates faster approvals with automated summaries.
  3. Observability and Scalability:
    • Built-in tools like Elastic and Application Insights ensure secure, scalable, and transparent operations.

Addressing Enterprise Challenges

Many businesses struggle to manage contracts from diverse vendors, leading to inefficiencies and lost productivity. ContractAssIst addresses these issues with:

  • Secure Data Handling: Advanced security measures ensure compliance with regulatory standards.
  • Cost Optimisation: Reduces annual licensing costs and operational overheads.
  • Improved Productivity: Saves an estimated 20–25 minutes per user daily.

Distinctive Advantages Over Competitors

Unlike standalone tools, ContractAssIst leverages Microsoft’s robust ecosystem, offering:

  • Deep integration with Azure AI and Microsoft Teams.
  • Transparent, auditable workflows for better risk mitigation and compliance.
  • Up to 95% reduction in email communication overhead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Senco Gold Announces Stock Split With Record Date January 31

Senco Gold, a BSE Small Cap-listed jewellery retailer, has announced its maiden stock split with a 1:2 ratio. The corporate action is scheduled for 31 January 2025 as the record date.

What is a Stock Split

A stock split is a corporate action where a company divides its existing shares into multiple units, reducing the share’s face value while maintaining the same total market capitalisation. In Senco Gold’s case, each equity share of ₹10 face value will be split into 2 equity shares of ₹5 each. This process does not alter the shareholder’s ownership percentage but increases the number of shares held, making them more affordable and liquid in the market.

Details of the Stock Split

The 1:2 stock split will divide each equity share of face value ₹10 into two equity shares of ₹5 each. Shareholders listed as of 31 January 2025 will be eligible for the split, which is expected to conclude within three months, pending regulatory approvals. This move is Senco Gold’s first stock split since its listing on the stock exchange in July 2024. The company originally disclosed plans for this split in October 2024, attracting significant investor interest.

Senco Gold Share Performance

As of January 16, 2025, 1:05 PM, the shares of Senco Gold are trading at ₹1,047.90 per share with a surge of 0.35% from its previous day’s closing price. Over the last month, the stock has seen a decline of 8.90% and over the last year it has surged by 35.90%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

RVNL Share Price Rise on Securing ₹3,622 Crore BharatNet Contract from BSNL

Rail Vikas Nigam Limited, a leading infrastructure development company, has been awarded a ₹3,622 crore project by BSNL under the BharatNet initiative. The project focuses on Middle Mile Network development, aiming to strengthen India’s digital infrastructure. This significant contract highlights RVNL’s expertise in executing large-scale network projects.

Contract Award Details

Bharat Sanchar Nigam Limited (BSNL) has awarded a contract for the development, upgradation, and operation & maintenance of the middle mile network under the BharatNet project. The contract is based on the Design, Build, Operate, and Maintain (DBOM) model. It is a domestic entity award, with BSNL being the awarding authority.

Key Terms and Financials

The contract spans a construction period of 3years, with a subsequent maintenance period of 10 years. During the maintenance phase, the contract stipulates an annual fee of 5.5% of the capital expenditure (capex) for the first five years and 6.5% for the next 5years. The total consideration for the order amounts to ₹36,22,14,47,414.08 (approximately ₹3,622 crore), which includes both operational and maintenance costs over the 10-year period.

Involvement of Entities and Related Party Transactions

The contract has been awarded to a consortium consisting of RVNL (Lead Member), HFCL and ATS (Consortium Members). There is no interest from the promoter or promoter group in the entity that awarded the contract. Additionally, the order does not fall under related party transactions and is conducted at arm’s length.

About RVNL

Rail Vikas Nigam Limited (RVNL), a Navratna CPSE under the Ministry of Railways, was established in 2003 to develop and implement rail infrastructure projects, including new lines, electrification, and bridges. It operates on a turnkey basis, mobilises extra-budgetary resources through equity and debt, and collaborates with central and state governments to fast-track projects and enhance rail infrastructure capacity.

RVNL Share Performance 

As of January 16, 2025, 10:55 AM, the shares of RVNL are trading at ₹402.40 per share with a surge of 8.20% from its previous day’s closing price. Over the last month, the stock has seen a decline of 14.36% and over the last year it has declined by 6.10%. The stock has a 52-week high and 52-week low of ₹647 per share and ₹213 per share respectively. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Empowering Urban Development: SEBI and NISM’s Initiative on Municipal Bonds

The Securities and Exchange Board of India (SEBI), in collaboration with the National Institute of Securities Markets (NISM), has introduced an innovative e-learning course on municipal bonds. Designed to foster knowledge and skills, this initiative aims to help municipal corporations, urban local bodies, and other stakeholders understand how to leverage municipal bonds for urban infrastructure development.

SEBI’s Efforts to Promote Municipal Bonds

As part of its ongoing capital market development efforts, SEBI has been conducting outreach programs on municipal bonds across various Indian cities. These programs encourage the issuance of municipal bonds as an alternative funding mechanism for urban infrastructure projects. Recently, at a program held at the Indian Institute of Management (IIM) Lucknow, SEBI and NISM unveiled a self-paced e-learning course tailored for officials involved in urban development. Available free of cost until March 31, 2025, the course is a step towards empowering stakeholders with the necessary expertise to fund development projects effectively.

Course Features and Target Audience

The course spans 10 hours and is designed to educate participants about alternative funding mechanisms, regulatory provisions, compliance for issuing municipal bonds, and investor outreach strategies. It also covers topics like escrow mechanisms, credit ratings, green municipal bonds, and social impact bonds. While primarily targeted at municipal and urban local body officials, the course is equally valuable for policymakers, finance department officials, and advisors. Upon successful completion, participants receive a certification validating their knowledge in this domain.

Conclusion

The SEBI and NISM e-learning initiative on municipal bonds equips key stakeholders with practical tools to fund urban infrastructure projects. With its comprehensive curriculum, the course is a significant step towards fostering sustainable urban development through innovative financial instruments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Key Income Tax Reforms Under FM Sitharaman’s Previous Budgets

Over the last four years, Finance Minister Nirmala Sitharaman has brought transformative changes to India’s income tax framework. With a focus on simplifying processes and enhancing benefits, her policies have shaped a more taxpayer-friendly system. Here are five major reforms from her recent budgets that highlight this evolution.

Streamlined Tax Regime and Simplified Capital Gains Structure

The introduction and enhancement of the new tax regime have been pivotal since Budget 2020. Taxpayers under this regime enjoy no tax on incomes up to ₹7.75 lakh (salaried) and ₹7 lakh (others), with high earners benefiting from a reduced maximum tax rate of 39%.

Capital gains taxation has been overhauled for simplicity. Holding periods have been consolidated to just 12 and 24 months for all assets. Long-term gains are taxed uniformly at 12.5%, while short-term gains are at 20%. However, gains from debt investments are taxed according to individual slab rates.

Improved NPS Benefits, TCS Reforms, and Digital Taxpayer Services

The National Pension System (NPS) has seen considerable improvements, particularly for private-sector employees under the new tax regime, who can now claim a deduction of up to 14% of their basic salary. The NPS Vatsalaya scheme was also launched to encourage early participation.

Tax Collection at Source (TCS) has been enhanced, allowing credits to be adjusted against TDS on salaries, and simplifying tax computations for employees.

Technological advancements have improved the overall taxpayer experience, reducing income tax refund processing time to 10 days and enhancing data transparency with AIS and TIS. A next-generation Common IT Return Form is also in development to streamline compliance further.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.