Economy, Expert Views, Market News, Markets - January 8, 2024

Tesla Power India Launches ReStore: India's Premier Refurbished Battery Brand

Tesla Power India Launches ReStore: India’s Premier Refurbished Battery Brand

In a groundbreaking initiative towards fostering self-reliance, skill development, and advancing green technology, Tesla Power India proudly introduces ReStore, India’s inaugural refurbished battery brand. Headquartered in Gurgaon, Tesla Power India Private Limited, with its global headquarters in Delaware, USA, unveils a cutting-edge Electro-Chemical Battery Enhancement Process (EBEP) set to revolutionize the battery industry.

Strategic Expansion: 5000 “ReStore Battery Refurbishing Centers” by 2025:
In a significant stride, Tesla announces plans to establish 5000 “ReStore Battery Refurbishing Centers” across India by 2025, with over 500 centers already operational nationwide. This strategic move underscores Tesla Power India’s commitment to “Atmanirbhar Bharat,” “Skill India,” “Circular Economy,” and “Sustainable Environment.”

Proprietary Technology: Electro-Chemical Battery Enhancement Process (EBEP)
The proprietary EBEP technology marks a breakthrough in battery refurbishment, significantly extending the lifespan of various Lead acid batteries, including tall tubular inverter batteries and UPS VRLA batteries. This cost-effective solution enhances battery life by 1 to 2 years, providing customers with refurbished batteries under the brand name “ReStore” at nearly half the cost of a new inverter battery, accompanied by a warranty.

Compliance with Environmental Guidelines: Battery Waste Management Rules 2022:
Aligned with the “Battery Waste Management Rules 2022,” as recognized by the Central Pollution Control Board (CPCB), Tesla Power India embraces battery refurbishing as an approved business activity. This strategic move is anticipated to give rise to approximately 30,000 battery refurbishment centers, generating employment opportunities for over 1 lakh individuals. Addressing the annual disposal of around 10 crore lead acid batteries, costing Rs.40,000 crore to the Indian economy, ReStore’s launch mitigates economic strain and environmental hazards associated with improper disposal.

Mr. Kavinder Khurana, Managing Director’s Perspective:
Mr. Kavinder Khurana, Managing Director of Tesla Power India, expresses his enthusiasm for ReStore, stating, “It’s not just a refurbished battery brand; it’s a solution for employment generation in a new battery service industry. By offering affordable refurbished batteries with performance warranty, we aim to redefine the market and train micro and small entrepreneurs on our game-changing Electro-chemical battery enhancement process (EBEP) technology.”

ReStore: Pioneering Sustainable Solutions in Energy Storage:
ReStore emerges as the first refurbished battery brand in India, empowered by Tesla Power India. This launch reaffirms the brand’s commitment to delivering quality, reliability, and cutting-edge technology to the Indian market. Tesla Power India’s dedication to creating a positive impact on the environment, economy, and society is evident through ReStore’s offering of affordable and sustainable battery solutions, poised to drive significant change in the energy storage sector and beyond.

Conclusion:
Tesla Power India’s launch of ReStore not only introduces India’s premier refurbished battery brand but also signifies a commitment to sustainable practices, skill development, and environmental responsibility. With the innovative Electro-Chemical Battery Enhancement Process (EBEP) and plans for widespread expansion, ReStore is poised to revolutionize the battery industry, contributing to both economic growth and a greener future for India.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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RBI's Revised Co-Lending Norms Set to Transform NBFC Growth

Economy, Expert Views, Market News, Markets - January 5, 2024

RBI Introduces Revisions in Redemption Funds and CP Buyback Norms

On January 3, 2024, the Reserve Bank of India (RBI) implemented changes to the norms governing redemption funds and buyback of commercial papers (CPs). This move primarily impacts CPs and non-convertible debentures (NCDs) with original or initial maturity up to one year, reflecting adjustments based on market feedback.

Buyback Timelines Altered: Seven-Day Window Introduced:
Under the new guidelines, issuers of CPs are now permitted to initiate buybacks only after seven days from the date of issue. This represents a departure from the previous 30-day restriction outlined in the Operational Guidelines for Commercial Paper issued by the Fixed Income Money Market and Derivatives Association of India in 2020.

Uniformity in Buyback Offers Ensured:
The revised directives emphasize that the buyback offer must be extended uniformly to all investors in a specific issue, ensuring identical terms and conditions. Investors retain the option to either accept or reject the buyback offer, enhancing transparency and fairness in the process.

Pricing and Information Dissemination Guidelines Established:
According to the updated norms, buybacks of CPs and NCDs are mandated to be executed at the prevailing market price. Issuers are also required to promptly inform the Issuing and Paying Agent (IPA) and Debenture Trustee about buyback details on the execution date, with payments routed through the IPA.

Redemption Fund Handling: Timely Submission to IPA Required:
Guidelines stipulate that issuers must make funds for redemption available to the IPA by 3:00 P.M. on the redemption date, shifting from the previous 2:00 P.M. requirement. This aligns with the norms set by the Fixed Income Money Market and Derivatives Association of India.

Effective Date and Applicability:
The RBI has announced that these directions will be applicable to all entities dealing in CPs and NCDs with original or initial maturity up to one year. The revised norms are scheduled to come into effect from April 01, 2024, allowing stakeholders a transition period to adapt to the changes.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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Markets Plunge as Middle East Tensions Erupt: Oil Soars, Aviation and Equities Suffer

business update, Economy, Expert Views, Market News, Markets - January 5, 2024

OPEC's Crucial Role in 2024: Navigating Production Policies Amidst Challenges

OPEC’s Crucial Role in 2024: Navigating Production Policies Amidst Challenges

Introduction:
Recent years have unfolded with unprecedented geopolitical events, including Russia’s invasion of Ukraine in 2022 and Hamas attacks on Israel in 2023. These events, coupled with ongoing challenges such as tensions between China and Taiwan and North-South Korea dynamics, have raised concerns about potential disruptions in oil markets. However, despite the tumultuous events, the oil market has displayed resilience, with the benchmark Brent oil price closing lower in 2023.

Shifting Dynamics: Shale Revolution and OPEC’s Response
The rise of the U.S. shale sector from 2010 disrupted traditional oil market dynamics, leading to Saudi Arabia’s initiation of the 2014-2016 Oil Price War to undermine the U.S. shale industry. The unexpected resilience of the U.S. shale sector created a new normal in oil price dynamics, prompting the establishment of an informal oil price range by the U.S. to maintain stability.

Political-Economic Nexus: Informal Oil Price Range and Global Implications:
The U.S. informal oil price range, from US$40-45 per barrel (pb) to US$75-80 pb, is rooted in political and economic considerations. The correlation between oil prices, election outcomes, and consumer spending on gasoline plays a crucial role, historically influencing U.S. presidential election results. Meanwhile, China’s role in the global oil market has evolved, and its economic vulnerabilities are linked to its reluctance to escalate conflicts in the Middle East.

Economic Interplay and Future Outlook:
Navigating the uncertainties of 2024 requires considering the delicate balance between global geopolitics, oil markets, and economic factors. The strategic responses of major players, particularly the U.S. and China, will continue to shape the trajectory of oil prices and the broader global economic order.

According to the Asset & Wealth Management Investment Strategy Group (ISG) at Goldman Sachs, the price of a barrel of oil is expected to trade between $70 and $100 for most of 2024. This forecast reflects slowing oil demand growth, tighter financial conditions, and elevated U.S. recession odds. Short-term volatility is anticipated due to macroeconomic uncertainties and heightened geopolitical risks, particularly amid ongoing OPEC+ negotiations on 2024 production quotas.

OPEC’s Role in 2024:
OPEC’s production policy and discipline, especially from key producers like Saudi Arabia and Russia, are crucial in supporting the oil price path in 2024. Despite the challenging task of balancing the market, both countries have committed to production cuts, surprising the market with their implementation.

Impact of Israel-Hamas Conflict:
The Israel-Hamas war introduces potential oil price volatility. If the conflict escalates, there may be sharp but transitory increases in spot oil prices. Possible disruptions include tighter oil sanctions on Iran, attempts to block the Strait of Hormuz, an Arab oil embargo, and production cuts by other Arab producers. However, the dynamics of the global oil market have changed since the 1970s, and the overall impact of such conflicts on oil prices has been neutral in recent years.

Conclusion:
As we navigate the complexities of 2024, the interconnectedness of global geopolitics, oil markets, and economic considerations will continue to shape the future of oil prices. OPEC’s decisions, the evolving role of major players, and the resolution of geopolitical conflicts will play pivotal roles in determining the stability and direction of the oil market in the coming year.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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Business, Economy, Editorials, education, Equities, Investor Forum, Market News - August 29, 2023

Wales government to discuss with welsh companies on investing in gift city in kochi:

The Kerala government has agreed on a student exchange programme and is sending the healthcare workers to Wales, which is held by the government. A Kerala chief minister has been on a tour of Europe, including a stop in London to promote a programme that will send health workers from Kerala to Wales, as well as student exchanges through the taith program.

The Taith programme is a five-year Welsh government initiative that brings students and educators from all over the world to Wales.with the aim of raising its benefits to the country’s international profile. Earlier, Kerala industries minister Veena George had been welcomed to Cardiff, in Wales.

ministerial delegation:

According to officials, chief minister Pinarayi Vijayans, who was part of the Wales ministerial delegation from Kerala, stated that the government will take the initiative to discuss with companies about investing in the gift city, which will be launched in Kochi, which is located in the southern state.

The chief minister officer stated in a statement that a decision was also made to sign a memorandum of understanding with the Welsh government for the purpose of sending health professionals from Kerala to the European country.and also said that the first batches of health professionals under the memorandum of association are expected to arrive in Wales by next year.

The discussion was held in between the Kerala delegation, which was held by the chief minister, Pinarayi Vijayan, and interaction with the first minister of Wales’ government, Mr. Mark Drake, as well as with the other members of his government, including along with the Welsh health minister and social service minister, Eluned Morgan.

Furthermore, the CMO stated that, according to a study conducted by the school of architecture, the problems highlighted by the port city of Kochi were noise pollution, water pollution, traffic, and other general pollution, among other things, faced by pedestrians.There should be a need to maintain biodiversity etc.

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UGRO Capital Acquires Profectus Capital in Ambitious ₹1,400 Crore Deal

Banking, Economy - July 5, 2022

Role of nationalized banks in promoting the Indian economy.

Role of nationalized banks in promoting the Indian economy.

Nationalization refers to the transfer from the State or Central Government of public sector assets to be operated or owned. The banks previously functioning under the private sector in India were transferred by an act of nationalization to the public sector. Therefore nationalized banks were established.

Following is the role of nationalized banks in promoting the Indian economy:

1. It helps in eradicating the shortage of capital formation:

Economic development is not possible in any economy unless an adequate level of capital formation exists. Banks remove the serious capital shortfall in developing countries. A sound banking system mobilizes small community savings and makes them available for productive company investment. Banks mobilize deposits through attractive interest rates and convert savings into active capital. If not, the funds will remain idle in the bank account. Banks distribute such savings through loans to productive companies that help build nations. It facilitates the optimal use of the financial resources in the economy.

2. To generate employment:

Banks help provide industries with financial resources and help generate employment opportunities automatically. Income and job generation are two very important contributions that successfully keep a strong lending line to both the industry and the economy. Nationalized banks will generate more jobs with the opening of more branches and having a reach in the deepest rural regions. In addition, the bank can also create more opportunities for employment by encouraging self-employment. It can provide loans to various projects that can promote employment opportunities directly and indirectly.

3. To keep a check on the enormous resources and give priority to a particular sector:

The takeover of commercial banks will allow the government to control huge resources from which large-scale factories can be established. It can also redirect funds to various main industries under the prevailing conditions in the world. Private sector banks did not give economic importance to industries such as the agriculture industry, small industries, cottage industries, and rural industries. The nationalization of the commercial banks could effectively enable the priority sector, in particular agriculture and small-scale industry, and encourage them to expand their businesses.

4. To develop the backward areas:

Banks from the private sector neglected rural and backward areas, and they focused on urban areas only. The nationalization of these banks and the opening of their branches in rural and retroactive areas will change this pattern. It would also allow banks to provide more credit for start-up industries in rural and backward regions. The above factors could also reduce the problem of regional disparities. People in poor and low-income underdeveloped countries do not have enough financial resources to buy sustainable consumer goods. Commercial banks provide loans to consumers to buy items such as houses, furniture, and refrigerators. They also help to improve the living conditions of people in developing countries by providing loan facilities for meeting their consumption needs.

5. To help in the implementation of monetary policy:

Nationalized banks contribute to a country’s economic growth by enforcing RBI’s monetary policy. RBI relies on Nationalised banks to ensure the effectiveness of its money management strategy, which is compatible with the needs of a developing economy.

6. To improve the efficiency in the banking sector:

The modernization and productivity of banks may be increased with more banks in the public sector. A better recruitment policy can be adopted that employs efficient men and women. Effective operations will improve and benefit banking services and consequently, it will benefit the economy.

7. To improve profits:

With the banking industry under government regulation, higher revenues will be generated. The government will reap all the income received by those banks.

8. To have uniformity in banking rules and regulations:

Banking operations could be uniform across the country. The interest rates in banks will also be the same. This will create unbiased competition in the banking sector. Banks will grant loans based on the borrower’s productivity rather than the borrower’s security. This will help to finance the ventures and industries effectively with the same norms and a standardized lending policy.

9. For better mobilization of Savings and money lenders prevention:

In the absence of a proper banking network, private financiers use the market to deliver competitive interest rates. In addition, interest earned from these banks is to some extent exempt from income tax. Banks may also promote various types of deposits for various sectors of the population.

10. To make aware of baking habits:

The Bank attracts depositors with competitive deposit plans and higher interest rates. Banks provide their customers with various forms of deposit schemes. With rising literacy in rural areas, rural people should realize the value of banking practice. This means that banks, like schools and hospitals, will also be a part of everyday life in rural areas. When maximum people adopt banking habits, there are more money transactions in the country. The need for capital or hard cash is diminishing gradually. The use of electronic media will easily move funds from one location to another. Economic development in the country will intensify. As a result, the government’s income will also increase.

Why do commodities Exchange Exist?

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India Readies Rs 25,000 cr boost for its electronics components industry

Automobile News, Autos, Business, Economy - June 27, 2022

How this pandemic will change the Auto Industry?

How this pandemic will change the Auto Industry?

Most car manufacturers are appearing brave even when some manufacturing facilities are shut down due to pandemic. The pressure to move to Bharat Norm 6 is escalating. People have reduced the travel when they’ve realized how much they can do it from home.

The automobile sector was bracing for a harsh year even before Corona virus wreaked havoc with their best laid plans.

The sector is set to reshape in ways that will have a significant effect on the eight million workers around the world who work for auto companies.

The effect due to COVID-19:

For the first time in history, the Indian automobile sector reported almost Nil monthly sales. Car producers disclose nil performance numbers on account of the closing of manufacturing plants in April 2020. This is because of a national lock down in the battle against the corona virus pandemic. Changes in consumer behavior and the effects of COVID-19 is expected to affect car sales. COVID-19 has resulted in disruptions in the supply chain and its effect on employment, wages, and so far most showrooms have seen few visitors. When sales tend to drop, closing down underutilized plants can be a concern of survival. According to Peter Wells, founder of the Center for Automotive Industry Research, several of the major plants in Europe are still going to struggle.

This will be challenging for companies that manufacture smaller cars that appear to be less competitive, such as Volkswagen, Renault, and Fiat. Nissan intends to slash about 300 billion Yen in annual operating expenses and book investment charges while the COVID-19 pandemic further disturbs the automotive industry’s revenues. According to Toyota Motor Corp, the terrible economic effect of the COVID-19 pandemic was almost over, vehicle sales can be recovered in its largest markets by the end of the year. Toyota has cash stockpiles of $74.4 billion, the result of a decade-long effort to cut costs. According to Frank Witter, Chief Financial Officer of Volkswagen AG, nobody has a clear understanding of the period and intensity of the crisis. Some auto manufacturers are collecting cash and slashing expenses to ensure that they will withstand a protracted downturn.

BS-VI:

The move to BS-VI standards is to put pressure on the auto sector. Besides, the effects of BS-VI emission regulations and job losses will affect sales. The problems of the automobile industry are growing. For the Indian car industry, FY20 has been a difficult year. After facing market crunch due to GST and the upcoming BS-VI standards, the corona virus desperately hampers vehicle production in all categories. Combined with the market restriction arising from BS-VI standards, this has generated a cascade impact for the sector that is unlikely to bounce back soon.

Electric vehicles:

Electric vehicle sales have been remarkably robust though, lock-down sales of petrol and diesel-driven automobiles have slowed. As much of Europe closed in March, auto sales in the continent dropped by more than half. However, the registration of Electric vehicles grew by 23 percent. Sales of electric vehicles fell 31 percent in April. This is nothing compared to the overall European automotive industry, which dropped by 80 percent. Auto producers may not be as inspired to market hybrid vehicles over the coming months. Alternatively, they will be forced to drive SUVs that yield much greater revenues and are cheaper to market now that fuel costs have collapsed. Everything is going to rely on policy opportunities and regulations.

China and Europe are more encouraging than the United States to embrace electric vehicles. Electric Vehicles are also much more costly than petrol and diesel-driven. In this crisis, few customers will be able to buy it without subsidies. The government will create a scrapping program to promote battery-driven cars with tax cuts to subsidies. The emphasis needs to be on investing in regional manufacturing around the supply chain, upgrading skills, and building up EV Infrastructure throughout the nation.

About the stock:

The Nifty auto index has under-performed the market since January as it is not hopeful of any near term improvement in the sector prospects. Mahindra & Mahindra has a Market cap of Rs.47,402.93 crore. Its 52 weeks low is Rs.245.40 and its 52 weeks high is Rs.683. M&M’s closing price was Rs.381.30 and was 4.78 percent low. Maruti Suzuki’s 52 weeks low is Rs.4,001.10 and its 52 weeks high is Rs.7,758.70 having a market cap of Rs.1,54,032.08. Maruti Suzuki’s closing price was Rs.5100.40 and was 0.27 percent low.

Auto sector seeks special package to save industry from Covid-19 crisis

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Expansion of capex to tackle global issues and decline in economic growth

Economy, Market News, Markets - November 10, 2020

How to invest in Insurance sector with tax planning.

How to invest in Insurance sector with tax planning.

Investment in insurance tools is a major part of everyone’s investment planning exercise. Although, it is important for people to be covered by certain risks, it is equally important that they buy insurance in which they accomplish their long term financial goals and helps them in tax planning. In recent years, the insurance sector has been at the forefront since the government opened it for private companies. Private insurers launched many new products and a healthy competition. This is good for investors because they have more options and a range of investments, but on the other hand it’s just as bad as it creates more uncertainty and the possibility of losing money occasionally.

All insurance products have their own pros and cons, so before making an investment decision investors should carefully understand all the aspects of the policy. Diversification and the development of a multi-product portfolio is one way to fix this challenging situation. Investors need to have knowledge of the various insurance products offered in the market and the positive or negative implications of these products. A stable insurance basket should contain Life Insurance cover, Medical Insurance cover, and Retirement/ Pension plans.

Life insurance:

The policy is available in 3 broad categories viz. endowment plans, life insurance plans, i.e. term plans and ULIPs. Endowment policies provide insurance and have some maturity returns. In this plan, maximum of the funds are invested in corporate bonds, Government securities, and various instruments from the money market. They deliver a healthy and stable return from 5% to 8%.

Term insurance is basically an insurance scheme. The premium covers the risk factor (mortality charges), revenue, and operating expenses in this package. This is why the premium paid for insurance policies is low as compared to the endowment plans. The premium charged in term insurance has no savings element and therefore no maturity benefits are paid to the individual.

Funds in the ULIPs scheme are mostly invested in the stock market and corporate bonds. The main distinction between ULIPs and standard insurance policies is the allocation of funds in stocks. These schemes pledge better maturity benefits, as stock markets have historically produced better returns over the long term. Nevertheless, investments in stocks are likely to lose money to a certain degree. Investors should opt for life insurance policies as soon as possible as age is one of the key determinants of the risk premium decision. As the income of an individual rises, they should increase their cover. It is normally said that the cover must be approximately 4 to 5 times of the annual income. An individual must fusion all three plans to limit the cash outflow and also to get the balance returns and reduce the risk.

Medical Insurance cover:

Medical compensation plans cover the massive medical expenses that occur in the care of an illness. As daily medical treatment is expensive, every person must have a medical insurance policy. Until accepting a policy, most health insurance plans do not cover chronic illnesses. It is therefore necessary to comprehend your medical policy in depth and invest early to offset the policy’s full grievances.

Future Provisions with Pension and retirement plans:

Insurance pension schemes offer life insurance to the investors when they are in the earning stage and monthly retirement benefits once they retire. ULPP is a type of pension plan where the funds are invested in market instruments. Investors can invest in ULPPs early, say at the age of 20, because they can afford to lose equity funds. Later, they can transfer their funds slowly into capital security schemes.

Tax planning:

While the majority think of tax planning as a process which reduces their tax liabilities, investing in the right instruments at the right time is also important in order to reach your financial goals as per your maturity period i.e. short, medium, and long. Basically, four different forms of tax planning exist.

Tax planning under Short Range:

It is a term used for tax preparation, which is used and conducted at the end of the financial year. Investors use this strategy to find ways to shrink their tax payments officially at the end of the financial year. Suppose if you decide at the end of the financial year that your taxes are high relative to the previous year, you might want to diminish it. Assessments can be done to get benefits under Section 88. Short-term tax planning does not require long-term obligations, though substantial tax savings can also be promoted.

Tax planning under Long Range:

The long range tax strategy is one that the taxpayer implements over the year. This policy does not provide immediate tax relief benefits as short-term plans do, but maybe beneficial in the long term. Typically you will begin investing at the start of the new financial year and continue to invest for a period of more than one year.

Tax planning under Permissive Measures:

Permissive tax planning means managing investments under different terms of India’s taxation legislation. There are various legal provisions in India that include exemptions, deductions, and benefits. Like Section 80C provides various types of exemption on tax savings investments.

Tax planning under Purposive Measures:

Purposive tax planning states planning of your investments for specific purposes thus ensuring that you can make the most of your investments. This includes the correct selection of investment instruments, the creation of an appropriate plan to substitute (if necessary), and Revenue and business assets diversification depending on your residential status.

In a nutshell, spending on Income tax is a moral and financial obligation which we all bear as citizens of India. The taxes we pay are used for our country’s growth. In a way, the taxes we pay are used for our benefit. According to the different income slabs, we each pay a different percentage of taxes, but all Indian people are entitled for the benefits equally.

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Why gold funds saw a record weekly inflow — and what it signals for Indian investors

Business, Commodities, Economy, Equities, Expert Views, Investor Forum, Markets - July 31, 2020

What are Gold funds and what are the benefits?

What are Gold Funds and what are its benefits?

Gold funds are unique type of mutual funds, through which investors can invest directly or indirectly in Gold Reserves. They can invest in the gold producing stocks, mining company stocks or in physical gold. Gold funds are the most convenient asset to invest, without the risk of theft or paper work as they are in digital form. This fund is kind of an open ended investment, where investor can issue or redeem at any point of time based on the units which they hold. However, their price directly depends on the metal (gold). Some investors use gold funds to hedge and diversify their portfolio and protect against uncertain economic condition. Many investors diversify around 10 to 20 percent of their portfolio by investing in gold funds. Golds funds are regulated by the SEBI and it is ideal for investors who are risk averse.

Types of gold funds available across globe for investors:

Gold Mining Funds:

In this, funds are invested in stocks of the mining companies and returns depends on the performance of these stocks. However, investment does not get affected due to any fluctuation in economy as gold price is affected mainly due to the fluctuation in demand and supply of gold. Gold exchange traded funds were first introduced by Benchmark Asset Company in India. This funds basically invest in the gold through Demat account. Returns and value of the investments totally depend on the price of gold. Investment in Gold Fund of Fund is same as exchange traded funds as in this, investments are made in particular unit of the Exchange traded funds without opening the Demat account.

Main purpose of Gold Funds:

Main purpose for investors to invest in gold funds is to grow their investment value and create wealth in whatever period the investment is made with protection against the market fluctuation. Price of Underlying asset varies according to change in demand of gold and at the time of maturity returns are calculated on current gold price. If gold price is increased, it gives more returns at the time of redemption.

What are tax charges for Gold Funds?

Normally, the tax which is charged on the Gold Jewellery is applicable to the Gold Mutual Funds schemes. But, taxes also vary according to the tenure. If investments are made for less than three years than revenue is added to the total gross income and considered as short term. But if investments are made for more than three years than 20 percent tax is applicable with indexation norms and CESS charges. However, if capital gains is through exchange traded funds (Gold ETFs), tax exempt is given. No TDS is applicable to Golds Mutual funds. During the time of buying or selling of funds, same tax is applicable as on Gold Jewellery.

Benefits of Gold Funds:

Flexibility in investment:

Gold funds allows investors to invest according to their convenience, comparing to the physical purchase of the gold. Investment can be made as low as Rs 500 and even small income class can also invest in this fund rather than purchasing physical gold which costs higher than these funds and gives flexibility. Gold mutual funds are one of the safest investment as these funds are regulated by Security exchange board of India and they continuously monitors the performance of this type of funds so that investors can analyse their future returns. Gold Funds are also safer than holding physical assets (Gold) as it is in de-materialized form.

Highly liquid:

Gold funds are high liquid funds as investors can redeem them in short term and are also protected against the uncertain economic situation. However, during market hours only, it can be buy or sell and net asset value of previous day is considered at the time of selling and trade is offset in one or two working day. To balance the overall portfolio, investor may always choose gold funds. Gold price is not directly affected to one investor’s overall investment and stocks in which investment is made. Gold fund is considered as one of the safest investment with good returns.

Some finest Gold Mutual Funds in India:

Axis Gold Funds has given return in a year up to 26% and for 3 to 5 year period 4%.
SBI Funds has given returns up to 22% in a year and 6% in 5 years.
HDFC Gold Fund has given returns of 22% in a year and 6% in 5 year period.

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HUDCO Q3FY25 Results Update: Robust Performance Drives Strong Growth

Business, Economy, Equities, Investor Forum, Market News, Markets - July 26, 2020

Importance of Financial Literacy. Why it is a must have today

Importance of Financial Literacy.

One of the main concern is Financial literacy in this present situation, as it is directly affects the country’s economic development. India stands way behind in financial literacy level comparing to other countries. As per the media reports, India accounts for nearly 20% of the world’s population, but 76% of India’s adult population is not even mindful of the simple financial theories. It discloses that financial literacy is very low in India vs. the rest of the world.

Financial literacy, like other developed nations, has still not been a priority in India. The lack of basic financial knowledge contributes to deprived investment and decision-making. Thus a maximum of Indian people invest in plans which have short maturity and physical assets to achieve their personal goals, which offer fewer benefits and do not contribute to the country’s economic growth.

As per the media reports, nearly 76% of Indian adults do not grasp the fundamental financial principles and are thus financially illiterate. The studies suggest that India always had a low rate of financial literacy relative to the rest of the world. In fact, we are still far behind other countries and now is the time for developing countries like India to realize the value of financial literacy.

Why it is Important?

It is important because it will help us to know how money is to be invested and handled and how it can be used in ways that makes a person financially more secure in the future.

Justification for its importance is as follows:

Value of money:

Firstly, it is very imperative for all of us to know the value of money. This will help us to handle our finances efficiently. Financial literacy will teach us the importance of saving and appropriately budgeting the funds. We should not waste our money on unnecessary and expensive products. We can understand better, the difference between our wishes and needs and we should prioritize things in our daily lives according to our quintessence.

Keep the Debt in Control:

Being financially literate will help us to have a proper check-in our debt. Too much debt will make us profoundly troubled. If we are financially competent, we can decide how debt can be afforded and will be able to pay off timely, especially if we have mortgage and insurance bills. This will teach us to plan for the education and future needs of our children as well as medical and hospital expenses without the need to lend money.

Imparting financial Knowledge among Youngsters:

Being financially aware will enable us to protect the future of the coming generation. We should teach them how to make budgets and save for years to come. They will also understand how their parents work hard to fulfill all their needs, even at their young age. In making them understand the importance of financial literacy, responsibility and reverence for their parents will also be taught. This will also help them realize that they will be financially secure as soon as they age. Imparting financial knowledge will help them to be more responsible and street-smart.

To be ready for any kind of uncertainties and to add other income streams:

We face emergencies that need cash, or resources to sustain or overcome our financial and emotional crises. In times like these, being financially educated saves us the trouble of borrowing money, which only brings us more problems. Financial literacy will benefit us to invest in stocks and develop more income sources besides our salaries. The creation of multiple revenue streams gives us the buoyancy that financial crises can survive.

Assistance in old-age:

If you are financially literate at a young age, you will be stress-free for the rest of the life, as all the provisions to secure the future would be initiated earlier itself. An appropriate retirement and pension plan at the age to 30 will be rewarding for an entire life.

Works as a helping hand:

If we spend a certain amount of money for instance we invest in stocks, we assist the company’s business to expand. This will generate more jobs and will help the company to generate more profits. This results in improving jobs and helps to create a more progressive nation. Being financially stable gives us the opportunity to share our blessings with the poor. Helping others brings us an overwhelming feeling of fulfillment.

How co-working spaces can restart post lock down.

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Bosch Ltd Q2 FY26: Auto Demand Boosts Sales, Profit Inches Up Despite Higher Costs

Automobile News, Autos, Business, Economy - June 1, 2020

Trends transforming the automotive industry.

Trends transforming the automotive industry.

The automobile market is undergoing a profound transition in terms of its far-reaching effect on business and its customers. This estimates the structural transformation of the automobile sector in terms of timescale, complexity, and quantity. One of the industries that has been under extreme stress over the past two years is heading for another turbulent year of falling revenue, growing costs, and ever-present government regulations. Driving is going to be convenient, simpler, cheaper, and safer. At the very same point, the revolution in personal transportation will push the automobile industry to redefine itself to some degree.

Electrified:

The move to emission-free transition will become a universal necessity. Electric power used to power cars will gradually come from renewable power to maintain carbon dioxide-free mobility. The shift to emission free human autonomy will not be feasible without the electrification of the running rail. Firstly, there is the problem of local materials. The reality is that vehicles are still producing very small amounts of toxic contaminants, noise, and air pollution. It also suggests that the emission-free effort will be a regional one. The energy used to power cars should come from green sources to guarantee CO2-neutral mobility. After all, the vehicles of tomorrow will not only be a subject of mutual and autonomous proportions but will also be wired and electrified. Owing to the accelerated growth of electric cars, it can be concluded that the overwhelming majority of automobiles will be e-vehicle.

Autonomous:

The development of cars that do not need human interaction will reduce the usage of shared transportation systems and give personal transportation to different consumer groups. The exponential advances made in fields such as machine learning and artificial intelligence make it easier to accomplish that appeared impossible – i.e. the creation of automated cars, which do not need human interaction except in complicated traffic scenarios. This will redefine the usage of human mobility channels. It is probably attribute to the reality that the electrified and autonomous aspects are equally compatible. The proportion of shared and automated vehicles in the total road network will improve dramatically.

Car sharing:

Properly operated fleets of autonomous cars can lower the cost of transport dramatically by allowing more effective usage of costly mobile infrastructure. Over several years, many metropolitan areas have provided car-sharing services. Although, these are still mostly conducted as pilot projects or citizens’ programs. Exchanging ideas may become commercially feasible with the advent of automated vehicles. It will no longer be appropriate to look for a shared car in the local area. It will be possible to request vehicles anywhere the customer might be via a flexible on-demand platform. Although, station-based ride-sharing indicates that cars will only be obtained from predefined locations. The region of distribution for car-sharing represents the supplier’s market field. Ride-hailing is about taking a ride. This definition is increasing in prominence and will no longer be considered a fringe trend.

Demand for smaller cars:

Possible pay reductions, work shortages, declining wages, and no incentives will all cause Indian customers to be suspicious of investing mega-money on new cars. After the lock down is removed, the market for smaller cars like Tiago, Santro, Celerio, and WagonR, etc. will rise. Citizens will usually be suspicious of commuting through public transit if and when they are accessible to the public because of worries of being infected. They will like to drive in their automobiles and will opt to purchase a 2-wheeler or smaller vehicle without needing to pay so much on luxury SUVs, hatchbacks, or sedans. Maruti Suzuki will be the major winner of all of this and will undoubtedly improve its market share by new product releases and price cuts to target the middle-class community.

Used cars:

Used vehicles will be the kind of the post-COVID-19 world. A survey revealed that the inquiries for pre-own vehicles multiplied during the lock down time frame. Purchaser viewpoint appeared to be more rounded among the individuals who enquired about used vehicles. 77% of them were happy to proceed with their buy after the lock down. It was noticed that an impressive level of respondents liked to purchase old vehicles because of budget restrictions. The used car would profit most as people switching from a public vehicle to a private vehicle. With India’s auto industry is facing depression for more than a year and the Covid-19 shutdown now expected to deepen and the financial pressure of the mid-income class, used cars might end up being a go-to option.

Online portal:

The auto sector registered a major decrease in sales due to COVID-19 and BSVI. In the past few months, several automotive makers have switched to the online platform to improve demand. Hyundai, Honda, BMW, Maruti Suzuki, and others consider that this is an opportunity to reach out to potential customers as additional support to dealers. Automobile manufacturers are offering schemes to help customers easily buy their vehicle in the middle of the lock down. Auto OEMs try to concentrate further on the digital world to boost demand. Most dealerships and retailers will focus on expanding their digital presence, providing pick-up and delivery of cars for service and sale, and giving consumers a smooth shopping interface to achieve loyalty.

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