India Inflation preview of last 3 month October to December 2013 . . . . WPI Wholesale Price Index and CPI Consumer Price Index
5 years after lehman Crisis …
This entry was posted in Banking , Central Banks ,Monetary Policy , Interest rate, North America Canada, Savings, Stock Market , Equity Market , Share Market, United State of America , US , America and tagged bankBorrowing, lehmanBros, leverage.
Gold prices today surged by Rs 640 to Rs 31,470 per ten gram in Mumbai on sustained buying by stockists and investors.
The rally in precious metals sparked after the rupee plunged to an all-time low of 61.65 against the American currency, raising fears that the dollar-denominated metal would become costlier and restrict supply into the market after RBI prohibited inward shipment of gold coins.
Market sentiment was further influenced as investors rushed to bullion as a safe haven following free fall in equities and rupee. A firm global trend was another positive factor.
Restricted supply after the Government increased the import duty on the metal to 10 per cent on August 13 and firm global cues supported the upsurge in the metal, he added.
The latest measures by RBI and the Government are part of a series of steps taken to curb gold import, a major contributor to the widening current account deficit.
Silver followed suit and shot up further by Rs 1,505 to Rs 51,485 per kg on increased demand from industrial units and coin makers.
In the Capital, gold of 99.9 and 99.5 per cent purity advanced by Rs 515 each to Rs 31,525 and Rs 31,325 per ten grams, respectively.
Sovereign followed suit and climbed by Rs 200 to Rs 24,900 per piece of eight gram.
Similarly, silver ready added Rs 1,365 to Rs 50,685 per kg and weekly based delivery by Rs 1,315 to Rs 50,535 per kg, after a steep rise of Rs 3,270 in the previous session.
Silver coins spurted by Rs 1,000 to Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.
India has the third largest base of internet users in the world, with a growing ‘digital high value’ consumer segment. According to a research report by Aviva and IMRB (Indian Market Research Bureau), India’s online search for financial services has grown four times in the last three years.
The survey was conducted across customers living in top 8 cities with annual incomes of Rs 6 lakh and above. These are customers who use internet atleast once in two weeks and have purchased a life insurance policy online in the last one year.
According to the report, almost 13 million searches a month are related to insurance. Within the segment of insurance, most internet users researched about retirement and pension related products.
The report further elaborates that some while some people research for financial products online, most of them still end up buying products offline. Reason: Offline mode of buying insurance is driven by assurance resulting in better credibility and perceptions.
Maximum sales of life insurance still happens through the offline mode. For instance, over 65% of the internet users bought health and life insurance products offline.
While the traffic of internet users is increasing year on year, what is stopping them from actually buying products online? According to the survey, physical absence of an agent holds back most customers in buying the product online.
Additionally, insurance being a complex product, customers feel it is important to have an agent explain the product or insurance policy. 21% of the internet users opine that, they avoid buying an insurance policy online because they don’t know the claim procedure. Reason: If you buy a policy offline, your insurance agent will act as an intermediary and help you in settling your claims
However, one should know that an insurance agent will only push product of a single company. hence, its important you do your search online, compare products and buy products accordingly.
Still, these are customers who contribute one third of their savings pool online. Additionally, some 27 million professionals hold a disproportionate part of the savings pool online.
This entry was posted in Business , Economic and finance related Information , Knowledge & Training, Business , Economic and Financial News, Emerging Markets, Financial Literacy, India, Insurance, Internet , Online , Website , Surfing, Investing, Investments, Mutual Fund, Personal Finance, Savings, Social Media, Technology , Computer , Digitalization and tagged financial services and products, googled, internet search, online search.
Egypt’s central bank raised its key interest rates by 50 basis points, saying inflationary expectations are more harmful to the economy over the medium term despite the risks to the outlook for growth.
The Central Bank of Egypt (CBE), which last raised rates in November 2011, said it was closely monitoring all economic developments and would not “hesitate to adjust the key CBE rates to ensure price stability over the medium‐term.”
Egypt’s headline consumer price inflation rose by a monthly 2.5 percent in February – the highest monthly rise since August 2010 – to an annual rate of 8.21 percent due to broad increases in food and non-food prices on the back of changes in the exchange rate and dielsel distribution bottlenecks across the country, the central bank said.
“While the probability of a rebound in international food prices is less likely in light of recent global developments, the re‐emergence of local supply bottlenecks and distortions in the distribution channels pose upside risks to the inflation outlook,” the CBE said, adding:
“Despite the downside risks to the GDP outlook, the MPC judges that disanchored inflation expectations are more detrimental to the economy over the medium term. Hence, a rate hike is warranted.”
The CBE raised its overnight deposit rate by 50 basis points to 9.75 percent, the overnight lending rate to 10.75 percent and the main operation rate to 10.25 percent. The discount rate was raised by 75 basis points to 10.25 percent.
Egypt’s Gross Domestic Product expanded by 2.2 percent in the fourth quarter from the third quarter for annual growth of 2.2 percent, down from 2.5 percent in the third quarter.
The central bank said economic growth was suppressed by continuing weakness in the manufacturing sector and investment is low given heightened uncertainty.
“While the slowdown in economic growth has been limiting upside risks to the inflation outlook, there is a possible build‐up of upward pressures on inflation going forward for the previously mentioned reasons,” the CBE said.
This entry was posted in Banking , Central Banks ,Monetary Policy , Interest rate, Business , Economic and finance related Information , Knowledge & Training, Business , Economic and Financial News, Currency , Currency News , Forex, Global World International News and Institutions, Savings and tagged consumer price inflation, Egypt central bank, Gdp, Gross Domestic product, inflationary pressure, investments, key monetary policy rates.
Image Posted on
A lecture by Ms Sujata Kabraji on the ‘10 Financial Mistakes that Women Make and How to Avoid Them!’. Using her years of experience as a stock broker and financial planner, Ms Kabraji made matters clear to all those in the audience, no matter how financially inept. With her fun slides and honest advice, she managed to make a dull subject very interesting. Here’s what she said.
I’m young and I wanna have fun!
Ms Kabraji started her lecture by advising young women to think about what better use they could use their money instead of splurging on shopping and entertainment. She said, “In my early 30s, I used to go out with my friends about three times a week. It would cost me around Rs2800. I’m not here to tell you what you shouldn’t do, but if someone had told me what I would have earned if I had put aside that money at least some of the weeks, it would have an impact on my life.” Ms Kabraji said that it may be good to note what you’re spending on each week and then cross out the things you really need.
I’m smart, I have life insurance!
A lot of people believe that life insurance is for investment, not protection. However, insurance agents promote investment-oriented insurance policies, as these give them more commissions. Ms Kabraji says, “You only need to remember one type of insurancepolicy – term insurance. I would also advise you to only buy insurance if you have dependents. I think it’s good to ponder over whether you actually need insurance. A lot of us buy term insurance simply because it gives us tax benefits.”
Health can eat into your wealth
Health insurance is important. Unlike life insurance, all of us need health insurance. This goes for those covered by corporate plans, too. Ms Kabraji says, “A friend of mine, Sheetal, was insured by her company for Rs5 lakh. Her parents were also insured for Rs3 lakh. Then her company went through a rough patch and she was offered voluntary retirement. She took it and start a small business from home. When she then went to take her own medical cover, she was asked to do her medical. She was diagnosed with diabetes. Now, her policy doesn’t cover diabetes-related diseases and is costing her an arm and a leg.” Ms Kabraji, therefore, advised participants to buy health insurance early on.
Honey, tell me where to sign
Too many women sign wherever their husbands ask them to, no matter what the documents. This includes wills, property, cheques, and other important documents. Ms Kabraji said, “A dear friend of mine was left pennyless and husbandless after her spouse left for a younger woman, after not bothering to look at what she was signing.”
Dip your toe into the water, girl!
Women are often frightened of investing in anything but gold. Ms Kabraji advised participants to look at inflation-adjusted returns. She said, “Gold gives poor returns after inflation. Comparatively, equity delivers much better returns and is a way to beat inflation.” Ms Kabraji said that volatility is unavoidable if you want to grow your money.
Tax slab? I prefer chocolate slabs!
Ms Kabraji said that just because you’re saving money doesn’t mean you’re not making a mistake. She says, “A client of mine, when she was under 30, had saved over a crore. She had a high-paying job. She would also save her money. But she would only put in fixed deposits. Last year, she was earning 10% a year. But this would’ve made the tax department very happy. On Rs1 crore, she would have been paying Rs3 lakh to the tax department. When she came to me for help, I just moved her money to a product with a lower tax liability.”
Make sure you have the money to party on!
A lot of women think first about their husband and children, but forget that statistically they’re more likely to live longer than their husbands. She says, “You need to remember that you may live until well after everyone else is gone. A friend of mine spent all hermoney on her kids, without thinking about herself. When she quit her job, she had just Rs35 lakh, which she got as lump-sum on retirement. Surely, this won’t be enough for the next 30 years. Had she been smart about her money early on, she may not have been in the situation she is currently in.”
Both men and women have the tendency to avoid what requires even a little bit of paperwork. When paperwork is avoided, a lot of problems can crop up. Ms Kabraji says, “If we don’t do the paperwork, we’re bound to find ourselves in bad situations. There are bad and good stories related to avoiding paperwork. Let me tell you a happy one. A friend of mine had three cupboards full of papers that belonged to her parents. She didn’t go through them. When she did, though, she found that there were Tata shares worth crores just lying in the cupboard.”
Will? What’s that?
It’s easy to disregard what is yet to come. So we constantly postpone making a will. But this is far from the right decision. Ms Kabraji says, “My parents did a wise thing by telling their three daughters how the family wealth would be split while they were alive. We were told to raise our objections while they were alive, not after. Making a will may not be prevent problems later on, but it does at least put your foot in the door.” Sujata Kabraji then went on to explain which relatives the Indian Succession laws let come after your money.
Numbers make me cross-eyed
It’s easy to be confused by numbers, but there’s no point running away from these calculations. Ms Kabraji said, “I am a statistics major, but I can’t do any mental math. I need a calculator. The solution is not avoiding the complications of a financial product. All you need to do is ask the right questions.”
link : http://www.moneylife.in/article/ladies-heres-how-to-manage-your-money/31509.html?utm_source=PoweRelayEDM&utm_medium=Email&utm_content=Subscriber%2383625&utm_campaign=Today%27s%20Exclusives
This entry was posted in Business , Economic and finance related Information , Knowledge & Training, Financial Literacy, India, Insurance, Investing, Investments, Personal Finance, Savings, Women and tagged Gold , Silver , Precious Metals, insurance, investing, investment, money, saving, Women.
You know lot of planners recommending you to invest in PPF. It is the best and wonderful product of investment. But knowing half is dangerous than knowing nothing. Hence let us understand the features of PPF in full.
Public Provident Fund (PPF) is the scheme floated under the PPF Act 1968 by central government. PPF is the wonderful product for all who looks for safe, government backed and tax beneficial investment. Below are the features of PPF.
- Tenure is 15 years. But in reality it is more than 15 years. For example, suppose you opened the account on 5th March 2013 and 15 years will complete on 5th March 2028. But this is not the maturity date of this account. Instead it will be 1st April 2028 (which will be first working day of immediate FY).
- Current interest rate is 8.80% compounding annually.
- Minimum investment is Rs.500 and Maximum investment is Rs.1,00,000. Amount invested more than Rs.1,00,000 will not be eligible for interest and for tax benefit under Sec 80C.
- Amount invested in PPF will be eligible for deduction under Sec 80C and maturity interest is tax exempt.
- You are eligible to open only one PPF account in your name. But if found to be you have more than one account then your second account will be deactivated. You will receive only principal of what you paid.
- You can’t open PPF in joint holding.
- But you can open PPF account in your spouse or minor child name.
- You can’t invest more than 12 installments in a year. Means if you planned for contribution of Rs.1,000 then maximum contribution you can make is 12. Not more than that.
- This account can’t be attached for your debt or liability. So this is totally safest form of investment.
- You can open PPF account by visiting your nearest Post Office or select nationalized banks, now with ICICI bank too.
- Read my post “PPF-When to contribute to get higher returns?” to know more about the way of calculation of interest and which way of contribution is best.
- Read my post “PPF-Loan and Withdrawal” to know more about the eligibility of loan and withdrawal.
- If you forget to contribute the minimum amount in any year then the account will be deactivated. To activate you need to pay Rs.50 as penalty for each inactive year also you need to pay Rs.500 for each inactive year’s contribution.
- NRIs can’t open account. But they can continue their existing account till it maturity only. No extension is possible for them.
- In case death of account holder then the balance amount will be paid to his nominee or legal heir even before 15 years too. So nominees or legal heirs are not eligible to continue the deceased account.
- If balance amount is more than Rs.1,00,000 then deceased nominee or legal heir has to prove the identity to claim the amount.
- PPF can be transferred from one place to another place or among the PPF service providing institution. But can’t be transferred from one name to another.
Once your account completes 15 years then what options do you?
a) You can withdraw your whole amount.
b) You can extend for a 5 years block as many times as you wish.
c) You can continue earning interest without contributing or extending the term.
So is it worth to invest for all? No it is not. Because it depends on your goal and risk appetite.
Look at the below interest rate trend of PPF.
1st April 1986 to 14th Jan 2000-12%
15th Jan 2000 to 28th Feb 2001-11%
1st March 2001 to 28th Feb 2002-9.50%
1st March 2002 to 28th Feb 2003-9%
1st March 2003 to 30th Nov 2011-8%
1st Dec 2011 to 31st March 2012-8.60%
1st April 2012 to till date-8.80%
What above table indicates? This shows that even though it is government backed but interest risk is always their. So thinking the same interest will get in future too may harm your financial goal.
Eventhough loan and withdrawal is available but conditions attached with them make it less liquidate.
So this is suitable for investors who are risk averse or to those who want to park some % of their portfolio into this fund. In terms of taxation it seems wonderful also advantage over other investment is, this account is free from your debt or liability. So blindly opening account think twice and if this product really suites your need then go ahead.
This entry was posted in Banking , Central Banks ,Monetary Policy , Interest rate, Business , Economic and finance related Information , Knowledge & Training, Emerging Markets, Financial Literacy, India, Investing, Savings and tagged india ppf, india saving, saving.