Business, Equities - July 7, 2022

How do stocks work?

Being mindful about stocks and how they function is essential for strong returns on investment. This will provide substantial financial benefits. Wisely spending your capital is extremely necessary to achieve monetary prosperity and financial goals. It is possible that if you are working on an investment strategy, it will probably include some form of stocks. The stock markets historical success makes this type of investment so common. The S&P 500 index recorded an average return of 9.7% between 1930 and 2013. Although, this includes years and exceptional years which are extremely tough. This high average return on investments in stocks provides a strong basis for buying them.

Stock market investment can look like a scary task. However, as soon as concepts are learned and the right strategies are implemented, the benefits are significant. While there are many vehicles for stock exposure such as mutual funds and ETFs which do not actually require investors to pick up their stocks from the market. However, it remains necessary to understand what stocks are and what they work to achieve when investing.

Straightforward meaning of equity stocks:

Stocks are equity investments that constitute a company’s ownership. If you buy the stock of a particular company, it includes certain rights.

Companies sell shares to collect substantial capital amounts. This capital is then used to fund various projects. This ultimately leads to the growth of business and generate a return for investors and revenue for the company. When a company wants to go public, it must also choose 1-4 separate letters for the distinctive identification called stock ticker symbols. Companies can sometimes even become creative when choosing their ticker symbols.

The stock price of a public company is simply a determination of the value of the company by the market. This value depends among other things, on its assets, current profits, and expected future profits. While raising capital, stock offerings is a great way for a business to grow quickly and expand rapidly. However, there are also disadvantages. In addition to the high charges paid for exchange listing, public firms have to disclose their financial reports as per the rules and regulations.

Categories of stocks viz. Common and Preferred:

Common stock offers you a part and voting rights of the company. With common stock, you aim for capital gains together with dividend collection. However, companies are not obligated to pay dividend to common shareholders. A dividend is a distribution of some amount from total revenue to shareholders or a kind of investment reward.

However, the preferred stock works somewhat differently. The preferential stock does not give you any voting rights. The preferred stock guarantees you more return as compared to common stock. For example, if a corporation pays a dividend, it must first pay its preferred shareholders. Dividends are first paid to preferred shareholders and then to common shareholders. Unless the company cannot pay the dividend in one year on preferred stock, it will proceed to pay it in the future years. They have a right to claim on firms assets in any uncertainty if the firm comes in a position of bankruptcy. Preferred share owners have more significance than common shareholders.

Common stocks are more riskier than preferred stocks. Portfolio must include a perfect blend of both common and preferential share.

Taxation on stocks:

After 1st September 2004, any buying and selling of securities will include the Security Transaction Tax (STT) applied to them. STT is payable on stock trading in India. Inventory income sold within 1 year from the date of acquisition is considered to be STCG. STCG is obliged to taxes and is taxed at 10%. If short-term capital losses are incurred, then it can be compensated for short-term gains in the same financial year. Benefit from stocks sold after 1 year comes in LTCG. Since 1st September 2004, long-term capital gains have been exempt from tax. Long term capital loss is considered to be a loss on inventories sold after one year from the date of purchase. Long term capital losses cannot be substituted with long term capital gains.

Adani Wilmar enters the coveted large-cap category by AMFI

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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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Microfinance sector recorded surge in NPAs to Rs. 50000 crore

Business, Editorials - July 5, 2022

What is an umbrella insurance policy?

What is an umbrella insurance policy?

Highlights:

• A policy that provides insurance cover beyond the primary insurance policies covering automobile, home, or watercraft.

• In order to own an umbrella insurance policy, you should first own standard homeowners, automobile insurance. When the insurance covers gets used up this policy opens like an umbrella.

• Individuals eligible for umbrella protection includes one who have significant resources or conceivably risky things, or who is involved in projects that could enhance their danger of being sued.

Umbrella insurance policy:

This policy provides insurance cover beyond the limits of the insured’s family members. It provides extra liability insurance coverage. This policy provides an added layer of safety for those who are at risk of getting sued for damages to other’s property, or injury caused in accident.
It additionally secures against criticism, vandalism and defamation.

How does this policy work?

The additional inclusion given by an umbrella policy is generally valuable to high net worth individuals who owns various properties or extravagant resources and are at huge danger of being sued. Private ventures also utilize this policy approach to safe guard themselves in case of potential money related cases or legal actions. The premium for an umbrella protection strategy might be affordable, if the same is brought from the same insurer that insured the primary automobile, home, or watercraft policy.

Varying from company to company, the policyholder who wishes to add an umbrella policy is required to have a primary insurance of nearly 250,000 USD for automobile coverage and of around 300,000 USD with respect to homeowners insurance. Umbrella policy in general connotation is known as additional coverage insurance policy. In case an umbrella policy holder gets sued for damages that exceeds the limit of car insurance or home or others. This policy enables them to pay what you owe. This implies when the primary coverage limit gets exhausted. The policy will open like an umbrella and protect the insured. The holder will be tension free as he will not need to plunge into investment funds and different resources.

Individuals who have purchased to jump a signal accelerates and bumps into a car. In this situation, there might be several riders who may have got injured. Now supposing the car repairs amounted to 45,000 USD and the treatment of injuries tallied to 400,000 USD. In this case, the driver may be held liable for damages that may far exceed the limits of insurance cover. Hence, this is the moment when the policy provides additional cover over the primary car insurance.

Important points to consider, while making a will

What are MIPs and Balanced funds

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Banking, Business, Editorials - June 30, 2022

What Happens when Businesses go Bankrupt.

How India handles Bankruptcies:

In recent years, India has changed the way it handled bankruptcy. From a bad bankruptcy system to one where simple laws and regulations are in a position to assist promoters, company owners, businessmen, and other stakeholders to deal with bankruptcy in an organized manner. For example, the new Insolvency and Bankruptcy Act specifically outlines how bankruptcies can be managed and how companies can be liquidated to benefit all stakeholders in the process of bankruptcy rather than tackling losses. The law was enforced due to huge pressure from small companies. Since the government had a perception of the very relaxed process towards large promoters and well-known industrialists.

What is the process of Bankruptcy:

Towns Insolvency Act of 1909 will be the rule if you live in Chennai, Mumbai, or Kolkata. However, the Provincial Insolvency Act of 1920 applies to other places in India. You can apply for insolvency under Provincial Insolvency Act if you don’t repay the debt of more than ₹500. You need to fill out an application. The court may approve or reject the request after evaluating the criteria for filing. A temporary recipient will take possession of the debtor’s property until any decision. The court is entitled to stay in legal proceedings against the debtor’s property or assets if the application is accepted. In other words, creditors may order you to be against further recovery efforts.

Once your request is accepted, the property will be handed, to the receiver’s designation by the court. The representative will then distribute the assets to creditors. The debtor will be released from bankruptcy after the process is completed by the courts. There will be no restrictions to establish and live with no concern for previous creditors. One can ask for a minimum maintenance charge for your survival as a result of the ongoing court proceedings. However, several restrictions apply to you until released from the case. The unreleased insolvent under existing law cannot act as a director, public servant, elected or sit or cast a vote as a representative of any local authority. However, you are not completely free if you have government debt or involvement in any fraudulent activity.

Righteousness to all the stakeholders:

Although, there is no reason to worry when companies go bankrupt. However, bankruptcy does not give a good experience for promoters, employees, or shareholders. The employees are dismissed immediately after fraud. While the shareholders risk losing their money. The rules around the world often fail to protect shareholders. As per corporate law, shareholders are paid only, if money is left after the payment of the creditors.

The debtholders are assisted to recover their money and the legislation focuses to ensures that the assets are disposed to the new owner. Moreover, there are no explicit guarantees in the legislation specifically to protect employees. Although, provisions exist for the fair disposal of the assets and the payment of dues to the employees. Hence, it is always important that shareholders and employees must exercise their proper research before investing or joining the companies.

Cases of the bankruptcies in the Aviation sector:

After reviewing the Indian aviation industry, which can show how bankruptcies can become messy and trigger pleasant turnarounds. For instance, Kingfisher is an example of how bankruptcies can turn the company if not managed. For the last decade, the case has dragged on, without an end to the afflicted creditors or the former staff. The former promoter lives abroad. The case of Spice Jet is, on the other hand, an example of how to deal with severe financial distress well. To turn the companies around somewhere is the main objective of Jet Airways, which seems to be trying to move towards some kind of resolution after a prolonged fight to tide the crisis. In a nutshell, all stakeholders should make sure that they do not rest when companies go bankrupt and focus instead on discovering their feet again.

Analysing the law on Airline Insolvency in India

Easy Steps to File a Bankruptcy Petition in India

Stamp duty and registration laws for rentals in Maharashtra

How this pandemic will change the Auto Industry?

How co-working spaces can restart post lock down

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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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Navigating the New FDI Landscape: ITC's Strategic Advantage

Business, Expert Opinions, Health, Health Experts, Real Estate, Real Estate News - July 5, 2020

How co-working spaces can restart post lock down

How co-working spaces can restart post lock down.

Most co-working spaces are now outlining radical steps to reopen their company post lock down, maintaining participants’ health and sanitation at the maximum standard of premises. The risk and uncertainty of COVID-19 pandemic is increasing each day. Although, policy measures are in full swing to stem the dramatic effects of this pandemic, which is quickly tolling human lives. There is also little clarification as to when regular business resumes. This is well known that the lock down cannot stay in effect permanently.

Measures to implement:

When the lock down is ended and firms can function out of their office buildings, several innovative initiatives and procedures will need to be enforced in all working settings to take care of the possibility of contracting the infection. The organizations will have to introduce improved protection procedures higher than a conventional workplace to maintain business-as-usual and guarantee strong organizational interest into co-working work spaces.

Work from home:

Indian IT industry allowed workers to Work From Home according to policy order during the lock down. As a result, nearly 90 percent of workers operated from home, with 65 percent from urban areas and 35 percent from small-town areas. The IT industry moved to the Work from the home system during the lock down very smoothly offering operational continuity to consumers without reducing efficiency or profitability, shocking both major companies and customers. So several workers operating from home amid reports that a substantial portion of them will continue even once the condition returns to normal life. Companies will now need to reconsider their approach particularly in office, interior and architecture real estate, to make the segment more appealing to customers.

Post COVID:

When the job continues after the lock down, optimizing the use of workspace is a concern. The workplace will entail large-scale behavioural and physical room changes. Organizations would now take advantage to revaluate their working course of action to give more adaptability to their staff, particularly thinking about the advantages of profitability and commitment, This will push up the demand for co-working space.

Opportunities:

Risk reduction must now be an essential part of organizational decision-making, particularly as businesses follow their business continuity plans. Organizations will intend to make decent variety in the geography, expanding the opportunities for adaptable workspaces in Tier 2 and Tier 3. They may likewise observe a piece of organizations moving to Tier2 and 3 urban areas to keep away from a shutdown during emergency. Expanding activities through geographies is intended to work well with the co-working group.

Co-working space:

Co-working facilities have often provided an advantage in terms of cost-efficiency. The world hopes to see the quickest post-lockdown recovery. At the point when the pandemic hazard facilitates, more organizations look to continue their business. Co-working spaces is the main decision for some organizations since they are more flexible in the time of the rent agreement. Businesses cannot afford to operate from home for so long, because many of them have tasks needing a high degree of direct control that are only possible in a structured office environment. These enterprises are heavily reliant on the office facilities to work efficiently.

Looking on, co working spaces will continue to restructure their work environments, such as relying mostly on activity-based workplace and collaborative zones. The co-working space team will have to focus on other things, such as ramping up hygiene procedures with daily sanitization of premises, beginning shift-based jobs, simulated meetings, even sanitizing the hands of each participant entering the property, and sitting in offices in compliance with social distance norms. It may include the supply of hand sanitizers and the substitution of bio-metrics with card access.

Workspace administrators will have to enable participants to make the most possible use of their collective senses when allowing the use of community resources in co-working spaces since sanitation is the highest priority. They will also have to make sure that members comply with shift-based systems to eliminate the possibility of congestion. They will also be expected to establish a new regulatory structure or regulations. People should maintain social distancing and carry face masks for good effect. Co-working spaces will be required to re-plan their work areas and make sure their encounters do not lead to infection.

Drawbacks:

For all the undoubted upsides of co-working spaces that are primarily funded by companies, freelancers, small to medium-sized organizations and start-ups. They also have drawbacks and constraints. Besides most of them missing independent canteens they often prevent businesses from holding activities in local places. Trying to maintain these services is another problem. While several major businesses utilize co-working spaces, these drawbacks have usually driven some others away from the possibility of adopting them due to lower rentals.

How to Plan Invest In Insurance Sector and Tax Planning.

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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.

Importance of Financial Literacy.

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