तीन सप्ताह की लगातार गिरावट के बाद सोने और चांदी की कीमते पिछले सप्ताह पलट गई और एमसीएक्स में अगस्त वायदा सोना एक प्रतिशत और जुलाई वायदा चांदी दो प्रतिशत से अधिक तेज़ हुई है। घरेलु वायदा बाज़ार में सोने की कीमते 60250 रुपये प्रति दस ग्राम और चांदी 72800 रुपये प्रति किलो पर कारोबार करती रही। पिछले सप्ताह अमेरिका, यूरो ज़ोन और चीन से जारी हुए आर्थिक आकड़ो से मिले जुले संकेत दिखे जिससे कीमती धातुओं के भाव में तेज़ी देखने को मिली। अमेरिकी तकनीक, खुदरा और ऑटो क्षेत्रों में पिछले महीने छंटनी की खबरें रही, और 2016 के बाद से कुल भर्तियां सबसे कम रही जिससे डॉलर इंडेक्स में दबाव बना और यह 0.7 प्रतिशत फिसल कर 103.38 के स्तरों पर पहुंच गया। हालांकि, एम्प्लॉयमेंट ट्रैकर एजेंसी के सर्वे से संकेत मिलते हे की रोज़गार बाज़ार अभी मजबूत है और मुद्रास्फीति स्थिर रह सकती है। 16 महीनों में अमेरिका की ब्याज दरें 0.50 प्रतिशत से बढ़कर 5 प्रतिशत से अधिक हो गई है। जिससे यह उम्मीदे बढ़ने लगी है की मुद्रास्फीति को नियंत्रित करने के लिए ब्याज दर बढ़ोतरी के बदले अन्य उपाय किये जाने चाहिए। 14 जून को होने वाली फेड की बैठक में ब्याज दर बढ़ोतरी की सम्भवना कम है, लेकिन बाद की बैठकों में इस पर पुनः विचार किया जा सकता है।
इस सप्ताह कीमती धातुओं में तेज़ी रहने की सम्भावना है। एमसीएक्स जून वायदा सोने में सपोर्ट 59000 रुपये पर है और रेजिस्टेंस 61800 रुपये पर है। जुलाई वायदा चांदी में सपोर्ट 71000 रुपये पर है और रेजिस्टेंस 74500 रुपये पर है।
The Indian tax system underwent a major overhaul with the introduction of the new tax regime. The new tax regime offers lower tax rates but limits the number of deductions and exemptions available to taxpayers. While the old tax regime continues to exist, taxpayers have the option to choose between the two regimes. We will discuss the differences between the old tax regime and the new tax regime, and which one is better based on your income level and tax-saving investments.
The old tax regime is the traditional tax system that has been in place for many years. Under the old tax regime, taxpayers are allowed to claim various deductions and exemptions to reduce their taxable income. Some of the popular deductions and exemptions under the old tax regime include:
The new tax regime was introduced in the 2023 Union Budget with the aim of simplifying the tax system and offering lower tax rates to taxpayers. Under the new tax regime, taxpayers are not allowed to claim most deductions and exemptions available under the old tax regime. However, the tax rates under the new tax regime are lower than the old tax regime. The tax rates under the new tax regime are as follows:
Annual Income Income tax old slab regime Income Tax new slab regime (AY 23-24) Upto Rs.2.5 lakhNilNil2.5 lakh-5 lakh5%5%Rs.5 lakh-7.5 lakh20%10%Rs.7.5 lakh-10 lakh 20% 15% Rs.10 lakh-12.5 lakh 30% 20% Rs.12.5 lakh -15 lakh 30% 25% Rs.15 lakh & above 30% 30%
Income RangeRates as per New Tax Regime(AY 2024-25 onwards)Up to INR 3,00,000NilINR 3,00,001 – 6,00,0005%INR 6,00,001 – 9,00,00010%INR 9,00,001 – 12,00,00015%INR 12,00,001 – 15,00,00020%Above INR 15,00,00030%
The choice between the old tax regime and the new tax regime will depend on various factors such as income level, tax-saving investments, and deductions and exemptions available to taxpayers.
For taxpayers with a lower income level and without any tax-saving investments, the new tax regime would be more beneficial as it offers lower tax rates.
The old tax regime is the one that has been in place for many years and is the default option for most taxpayers. Under this regime, taxpayers can claim a variety of deductions and exemptions to reduce their taxable income. Some of the most popular deductions include those for investments in instruments such as Public Provident Fund (PPF), Equity Linked Saving Scheme (ELSS), and National Pension System (NPS). Taxpayers can also claim deductions for expenses such as home loan interest, medical expenses, and donations to charitable organizations.
The new tax regime was introduced in the Budget Under this regime, taxpayers cannot claim deductions for investments or expenses, but the tax rates are lower than those in the old regime. For example, under the new regime, taxpayers with income up to Rs. 15 lakh are subject to a tax rate of 25%, whereas under the old regime, they would be subject to a tax rate of 30%.
So, which regime is better? It depends on your individual financial situation. If you have a lot of investments and expenses that qualify for deductions and exemptions, the old regime may be better for you as it can help you reduce your taxable income and, therefore, your tax liability. On the other hand, if you don't have many investments or expenses that qualify for deductions, the new regime may be a better option as it offers lower tax rates.
It's important to note that once you choose a tax regime for a financial year, you cannot switch to the other regime until the following financial year. So, make sure to carefully evaluate your options before making a decision.
In conclusion, both the old and new tax regimes have their own advantages and disadvantages, and which one is better for you depends on your individual financial situation. If you're not sure which regime to choose, it may be a good idea to consult a tax professional who can help you make an informed decision.
वैश्विक अनिश्चिताओं के बीच बैंकिंग संकट पर सरकार के हस्तक्षेप और प्रमुख बैंको के सपोर्ट मिलने से बड़े ऋण संकट की सम्भवना को कम किया है जिससे पिछले सप्ताह सोने की कीमतों में मुनाफा वसूली हावी रही। हालांकि, कॉमेक्स वायदा बाजार में सोना 2000 डॉलर प्रति औंस के करीब बना हुआ है और चांदी के भाव 24 डॉलर के स्तरों पर स्थिर बने हुए है। पिछले सप्ताह अमेरिका से जारी बेरोज़गारी के दावों में बढ़त दर्ज की गई है और टेक्नोलॉजी कंपनी से छटनी की खबरों से, मुद्रास्फीति कम होने की अटकले बढ़ी है। अर्थव्यवस्था पर दबाव रहने के चलते निवेशकों को इस बात की उम्मीद है की फेड अब ब्याज दर बढ़ोतरी पर नरमी बरतेगा जिससे सुरक्षित आश्रय की मांग में मजबूती देखने को मिल रही है। बैंकिंग संकट पर नियंत्रण की खबरों के बीच, एमसीएक्स में जून वायदा सोने की कीमते पिछले सप्ताह फ्लैट रह कर 60000 रुपये प्रति दस ग्राम पर रही। जबकि चीन में पर्चेसिंग मैनेजर इंडेक्स 56.4 के स्तरों पर पहुंचने से सप्ताह में चांदी की कीमतों में 2 प्रतिशत की बढ़ोतरी दर्ज की गई है और भाव 72000 रुपये प्रति किलो पर रहे। कोवीड नीति से उभरने के बाद, चीन की अर्थव्यवस्था में लगातार बढ़त देखने को मिल रही है जिससे सोने की डिमांड वहा लगातार बढ़ रही है। शंघाई गोल्ड एक्सचेंज से सोने की निकासी में साल-दर-साल 76 टन की बढ़ोतरी हुई है, जो 2014 से अब तक सर्वाधिक है। एक्सचेंज से सोने की निकासी में बढ़ोतरी, थोक बाज़ार की मजबूत मांग की और संकेत कर रहे है। 2018 के बाद से चीन में सोने का आयात 2022 में सर्वाधिक रहा है। पीपुल्स बैंक ऑफ चाइना ने नवंबर में सोने की आधिकारिक खरीदारी शुरू की और यह फरवरी में भी जारी रही। शंघाई और लंदन में सोने की प्रीमियम में बढ़ोतरी देखने को मिल रही है, जो कीमतों में मजबूती के संकेत दे रहे है।
इस सप्ताह कीमती धातुओं में तेज़ी रहने की सम्भावना है। सोने में सपोर्ट 59000 रुपये पर है और रेजिस्टेंस 61000 रुपये पर है। चांदी में सपोर्ट 69500 रुपये पर है और रेजिस्टेंस 73500 रुपये पर है।
अमेरिकी मुद्रास्फीति कम होने के संकेतों के बाद सोने की कीमतों में लगातार चौथे सत्र में तेजी दर्ज की गई है, जबकि 2023 की मंदी की लगातार आशंका ने भी कीमती धातुओं की सुरक्षित आश्रय मांग को सपोर्ट किया है। हालांकि, वैश्विक अर्थव्यवस्था की धीमी गति का असर चीन के आकड़ो में दिखाई दिया है जिससे बाजार में डिमांड की चिंताए बढ़ने लगी है। पिछले सप्ताह चीन से जारी मुद्रास्फीति के आंकड़े अनुमान से कम रहे जिससे चीन की अर्थव्यवस्था को नए आर्थिक पैकेज मिलने की उम्मीद बढ़ गई है, और कीमती धातुओं के भाव को सपोर्ट मिल रहा है। अमेरिका से जारी मुद्रास्फीति के आंकड़े मार्च में साल -दर -साल 1 प्रतिशत घट कर 5 प्रतिशत रह गए है। पीपीआई और बेरोज़गारी के दावे के आंकड़े भी उम्मीद से कमजोर दर्ज किये गए है, जिससे आर्थिक मंदी की सम्भावना को बढ़ावा मिल रहा है और कीमती धातुओं के भाव में तेज़ी बनी हुई है। एफओएमसी मीटिंग के मिनट्स में बैंकिंग संकट के चलते इस साल के अंत तक आर्थिक मंदी आने और उससे अगले दो साल तक उसका प्रभाव रहने की सम्भावना व्यक्त की है। हांलाकि, फेड ऑफिशल्स अभी भी 0.25 प्रतिशत ब्याज दर वृद्धि के पक्ष में है क्योकि मुद्रास्फीति अभी भी उच्च स्तरों पर चल रही है। अमेरिका और यूरोप में आर्थिक मंदी के अनुमान और फेड का मौद्रिक नीति पर नरम रुख से डॉलर इंडेक्स और अमेरिकी बेंचमार्क ट्रेज़री यील्ड में गिरावट जारी है जिससे सोने की कीमतों को फायदा मिल रहा है।
इस सप्ताह कीमती धातुओं में तेज़ी रहने की सम्भावना है। सोने में सपोर्ट 60000 रुपये पर है और रेजिस्टेंस 61800 रुपये पर है। चांदी में सपोर्ट 74000 रुपये पर है और रेजिस्टेंस 78000 रुपये पर है।
The Production Linked Incentive (PLI) scheme is a government initiative aimed at increasing domestic manufacturing across various sectors of the economy. The scheme offers incentives to manufacturers who produce goods in India and meet specific criteria, including quality, innovation, and productivity. The PLI scheme is expected to boost the overall economy by promoting domestic manufacturing and reducing the country's dependence on imports. This blog will discuss the PLI scheme, its impact on the economy, and its gaps.
The PLI scheme was launched in March 2020 to encourage domestic manufacturing and increase India's share in global markets. The scheme offers financial incentives to eligible manufacturers who meet specific production targets. The incentives are linked to the incremental sales of goods manufactured in India, and they vary based on the sector and product category.
The PLI scheme covers various sectors, including electronics, pharmaceuticals, automobiles, textiles, food processing, etc. The government has allocated a budget of Rs. 1.97 lakh crore for the scheme over a period of five years, starting from 2020-21. The scheme aims to create employment opportunities and increase the country's manufacturing capacity.
The PLI scheme is expected to have a significant impact on the overall economy. It will promote domestic manufacturing and reduce India's dependence on imports. The scheme will also create employment opportunities and increase the country's manufacturing capacity, which will help in achieving the goal of making India self-reliant.
The scheme is expected to attract foreign investments and improve the country's trade balance. The PLI scheme will also help in developing a robust ecosystem for manufacturing in India. The scheme will encourage innovation, improve quality standards, and increase productivity.
The PLI scheme is expected to have a positive impact on various sectors of the economy. In the electronics sector, the scheme is expected to attract investments worth Rs. 11,000 crores and create employment opportunities for around 2.5 lakh people. In the pharmaceutical sector, the scheme is expected to attract investments worth Rs. 15,000 crores and create employment opportunities for around 20,000 people.
Although the PLI scheme is expected to have a positive impact on the economy, it has certain gaps that need to be addressed. One of the major gaps in the scheme is its focus on large manufacturers. Small and medium-sized enterprises (SMEs) are left out of the scheme, and they are the ones who need support the most.
Another gap in the PLI scheme is the lack of clarity regarding the eligibility criteria for incentives. The criteria are not clearly defined, which creates confusion among manufacturers. This lack of clarity may discourage manufacturers from participating in the scheme.
There is also a lack of transparency in allocating incentives under the scheme. The criteria for allocation are not transparent, which may create opportunities for favoritism and corruption.
The PLI scheme is a government initiative aimed at promoting domestic manufacturing and reducing India's dependence on imports. The scheme offers financial incentives to eligible manufacturers who meet specific production targets. The PLI scheme is expected to have a significant impact on the overall economy by creating employment opportunities, attracting foreign investments, and improving the country's trade balance. However, there are gaps in the scheme that need to be addressed, such as its focus on large manufacturers, lack of clarity regarding eligibility criteria, and lack of transparency in the allocation of incentives. If these gaps are addressed, the PLI scheme has the potential to contribute significantly to the country's economic growth and development.
The National Pension System (NPS) is a government-sponsored retirement savings scheme in India. It was introduced in 2004 and has become increasingly popular among investors looking for a low-cost, long-term savings option for their retirement. In this blog post, we will discuss the basics of NPS, its features, tax benefits, and rules, as well as the advantages and disadvantages of investing in it.
The National Pension System is a voluntary, defined-contribution retirement savings scheme that allows subscribers to accumulate savings for their retirement. Under this scheme, subscribers can contribute to their NPS account regularly, and the funds are invested in a mix of equity, debt, and government securities, based on their investment preferences. Upon retirement, subscribers can withdraw a portion of their savings as a lump sum, and the remaining amount is paid out as a monthly pension.
To open an NPS account, subscribers can visit the website of the National Pension System and register themselves by providing their personal and bank details. They can also choose a fund manager and select their investment preferences. Subscribers are given a Permanent Retirement Account Number (PRAN) which is used to manage their account and make contributions. Subscribers can also log in to their NPS account to check their balance, view their transactions, and make contributions.
The National Pension System offers several features that make it an attractive retirement savings option. Some of the key features include:
The NPS also has certain rules and regulations that subscribers must follow. For instance, subscribers must contribute regularly to their NPS account, and failure to do so may result in penalties. Additionally, subscribers must keep their contact details and bank account information up to date to ensure that they receive their pension payments in a timely manner.
The National Pension System is a popular retirement savings option in India, offering investors a low-cost, flexible, and tax-efficient way to build a retirement corpus. While there are certain disadvantages associated with the NPS, such as compulsory annuity and market risk, the advantages of the scheme outweigh the disadvantages, making it a good option for investors looking to build a retirement corpus over the long term. As always, investors should carefully consider their investment goals and risk tolerance before investing in any financial instrument, including the National Pension System.
लगभग दो वर्षों में पहली बार फरवरी में अमेरिकी नौकरियां दस मिलियन से नीचे गई है, यह एक संकेत है कि फेडरल रिजर्व के श्रम बाजार को धीमा करने के प्रयासों का प्रभाव दिखाई देने लगा है। अमेरिकी लेबर डिपार्टमेंट की जोल्ट्स रिपोर्ट में जॉब ओपनिंग घट कर 9.93 मिलियन रह गई जिससे एमसीएक्स जून वायदा सोने के भाव में 2000 रुपये प्रति दस ग्राम और चांदी के भाव में 3000 रुपये प्रति किलो की साप्ताहिक तेज़ी दिखी। फेड द्वारा मई 2022 से शुरू की गई ब्याज दर वृद्धि को अब रोकने के संकेत दिए है क्योकि अमेरिका में मुद्रास्फीति 41 साल के उच्च स्तरों तक पहुंच चुकी थी और इस पर नियंत्रण करने के लिए श्रम बाजार पर फेड का मुख्य टारगेट था। फेड पिछले एक साल में नौ बार ब्याज दरों में बढ़ोतरी कर चुका है जिसका का की कोई खास असर श्रम बाजार में अब तक देखने को नहीं मिला था। हालांकि, ब्याज दर बढ़ोतरी के कारण अमेरिका और यूरोप में आर्थिक मंदी आने की सम्भवना बढ़ गई है जिसका असर अमेरिका के आर्थिक आकड़ो में दिखाई देने लगा है। रिज़र्व बैंक ऑफ़ इंडिया द्वारा अप्रैल की मॉनेटरी पॉलिसी में ब्याज दरों में कोई बदलाव नहीं किया। श्रम बाजार पर बड़ रहे दबाव के चलते यह सम्भावना बढ़ने लगी है की फेड भी आगे ब्याज दरों में बढ़ोतरी नहीं करेगा जिससे कीमती धातुओं में तेज़ी बनी हुई है। अर्थव्यवस्था की विकास गति धीमी होने के कारण कॉमेक्स में सोने के भाव 2036 डॉलर प्रति औंस पर कारोबार कर रहे है, जो 2020 के उच्चतम स्तरों के करीब के भाव है। इस सप्ताह आईएमएफ की बैठक , अमेरिकी सीपीआई, एफओएमसी मीटिंग मिनट्स, रिटेल सेल्स और कंस्यूमर सेंटीमेंट के आंकड़े कीमती धातुओं की चाल पर असर करेंगे।
इस सप्ताह कीमती धातुओं में तेज़ी जारी रहने की सम्भावना है। सोने में सपोर्ट 60000 रुपये पर है और रेजिस्टेंस 61200 रुपये पर है। चांदी में सपोर्ट 72000 रुपये पर है और रेजिस्टेंस 76000 रुपये पर है।
The Reserve Bank of India (RBI) is the apex banking institution in India responsible for monetary policy formulation and implementation. It aims to maintain price stability and economic growth through various tools and instruments at its disposal. One such tool is the RBI policy, which can have a significant impact on the stock market. In this blog, we will discuss the impact of RBI policy on the stock market and how it affects different asset classes.
Monetary policy refers to the actions taken by the central bank to manage the money supply and interest rates in an economy. The RBI policy aims to achieve price stability and economic growth through changes in key policy rates, such as the repo rate, reverse repo rate, and the cash reserve ratio (CRR).
The stock market is a reflection of the economy's performance and future prospects. Changes in monetary policy can impact the stock market in many ways. If the RBI decides to tighten monetary policy by raising interest rates, it can lead to a decrease in consumer spending and investment, causing a decline in corporate earnings and ultimately affecting the stock market negatively. Conversely, if the RBI decides to loosen monetary policy by lowering interest rates, it can lead to an increase in consumer spending and investment, resulting in a rise in corporate earnings and potentially boosting the stock market.
The repo rate is the interest rate at which banks can borrow funds from the RBI. The RBI uses the repo rate as a tool to manage inflation and liquidity in the economy. A change in the repo rate can have a significant impact on the stock market.
If the RBI raises the repo rate, it makes borrowing costlier for banks, which can lead to an increase in lending rates for consumers and businesses. This can lead to a decrease in spending and investment, causing a decline in corporate earnings and ultimately negatively impacting the stock market.
On the other hand, if the RBI lowers the repo rate, it makes borrowing cheaper for banks, leading to lower lending rates for consumers and businesses. This can lead to an increase in spending and investment, boosting corporate earnings, and potentially having a positive impact on the stock market.
Liquidity refers to the availability of funds in the economy. The RBI manages liquidity in the economy through various tools such as open market operations (OMOs), CRR, and the statutory liquidity ratio (SLR).
OMOs involve the buying and selling of government securities in the market. When the RBI purchases government securities, it injects liquidity into the market, which can lead to an increase in spending and investment, potentially boosting the stock market.
Similarly, a decrease in the CRR or SLR requirements can also lead to an increase in liquidity in the market. This can lead to an increase in spending and investment, potentially having a positive impact on the stock market.
G-Secs or government securities are bonds issued by the central government to finance its fiscal deficit. These securities are long-term investments that offer a fixed rate of return. The RBI policy can impact G-Sec funds in many ways.
If the RBI decides to tighten monetary policy by raising interest rates, G-Sec funds may offer higher returns, making them a more attractive investment option for investors. This can lead to an increase in demand for G-Secs, causing their prices to rise.
Conversely, if the RBI decides to loosen monetary policy by lowering interest rates, G-Sec funds may offer lower returns, making them a less attractive investment option for investors. This can lead to a decrease in demand for G-Secs, causing their prices to fall.
The RBI's policies also impact fixed-income securities, such as bonds and government securities. When the RBI lowers interest rates, the yield on fixed-income securities also falls, which can lead to higher demand for the bonds in the market. Conversely, when the RBI raises interest rates, the yield on fixed-income securities increases, which can lead to lower demand for the bonds in the market. Overall, the RBI's policies can impact the returns on fixed-income securities, making them an important consideration for investors seeking stable returns.
Table showing the Impact of RBI policy on the Stock Market
Repo Rate
Increase in repo rate: Increase in borrowing cost, decrease in stock prices.
Decrease in repo rate: Decrease in borrowing cost, increase in stock prices.
Reverse Repo Rate
Increase in reverse repo rate: Decrease in liquidity, decrease in stock prices.
Decrease in reverse repo rate: Increase in liquidity, increase in stock prices.
Cash Reserve Ratio
Increase in the cash reserve ratio: Decrease in liquidity, decrease in stock prices.
Decrease in the cash reserve ratio: Increase in liquidity, increase in stock prices.
Statutory Liquidity Ratio
Increase in statutory liquidity ratio: Decrease in liquidity, decrease in stock prices.
Decrease in statutory liquidity ratio: Increase in liquidity, increase in stock prices.
Open Market Operations
Purchase of securities by RBI from the market: Increase in liquidity, increase in stock prices.
Sale of securities by RBI to the market: Decrease in liquidity, decrease in stock prices.
Inflation Targeting
Increase in interest rates: Decrease in borrowing and spending, decrease in stock prices, and a slowdown in economic growth.
Decrease in interest rates: Increase in borrowing and spending, increase in stock prices, and boost in economic growth.
Fiscal Policy
Increase in government spending and decrease in taxes (Expansionary): Increase in economic growth, increase in stock prices.
Decrease in government spending and increase in taxes (Contractionary): Decrease in economic growth, decrease in stock prices.
Note: The above chart represents the general impacts of RBI policy changes on the stock market, and actual impacts may vary depending on various factors and market conditions.
Alternative Investment Funds (AIFs) are privately pooled investment vehicles that collect funds from sophisticated investors, both Indian and foreign and invest in accordance with a defined investment policy for the benefit of their investors. The Securities and Exchange Board of India (SEBI) regulates the AIFs, which are categorized into three categories based on their investment strategies and levels of risk. In this article, we will discuss the three categories of AIFs in detail.
Invest in start-up or early-stage ventures, social ventures, SMEs, infrastructure, or other sectors or areas that the government or regulators consider socially or economically desirable. They are typically long-term investors, and the funds raised are used to provide capital to such ventures. These funds also provide business and operational support to help these ventures grow. Venture capital funds, SME funds, social venture funds, and infrastructure funds fall under the Category 1 AIFs.
They are those AIFs that do not fall under Category 1 or Category 3 and do not undertake leverage or borrowing, other than to meet day-to-day operational requirements, and as permitted in the SEBI (Alternative Investment Funds) Regulations, 2012. Various types of funds such as real estate funds, private equity funds (PE funds), funds for distressed assets, etc. are registered as Category 2 AIFs.
They employ diverse or complex trading strategies and may employ leverage, including through investment in listed or unlisted derivatives. These AIFs are the riskiest of the three categories and may invest in a wide range of assets, including stocks, bonds, currencies, and commodities.
Hedge funds, PIPE (Private Investment in Public Equity) funds, and other funds that employ complex trading strategies fall under the Category 3 AIFs.
Alternative Investment Funds provide a new avenue for investors to diversify their portfolios beyond traditional investments such as stocks and bonds. They offer the potential for high returns, but they also come with higher levels of risk. As a result, it is essential for investors to carefully consider their investment objectives, risk tolerance, and investment horizon before investing in AIFs.
Two common ways of investing in the stock market are through IPOs (Initial Public Offerings) and regular stock investments. Although both of these investment options involve purchasing stocks, there are some significant differences between them.
An IPO is the first time a company offers its shares to the public. Before this, the company's shares were privately held by the founders, investors, and employees. When a company goes public, it raises money by selling its shares to investors. The sale proceeds go to the company, which can then use the money to expand its operations, pay off debt, or make acquisitions.
Regular stock investments refer to buying stocks of companies that are already publicly traded. These stocks are traded on the stock exchange, and their prices fluctuate based on supply and demand. Regular stock investments can be made through an online broker like Swastika Investmart
One of the key differences between IPOs and regular stock investments is the availability of information. When a company goes public, it is required to file a prospectus with the Securities and Exchange Commission (SEC). The prospectus contains detailed information about the company's financials, management, and operations.
This information is not available for regular stock investments. However, once a company goes public, it is required to file regular reports with the SEC, which provides investors with a lot of information about the company's financials and operations.
One can also access reports on Regular stock investments about publicly traded companies, including earnings reports, analyst reports, and news articles.
IPOs are generally considered riskier than regular stock investments. This is because IPOs are often for new companies or companies that are not well-established in the market. As a result, there is often a lot of uncertainty surrounding the company's prospects, which can make it difficult to determine its true value. This uncertainty can lead to significant price volatility in the short term.
On the other hand, regular stock investments in established companies are generally considered less risky. These companies have a track record of financial performance, and their stocks tend to be less volatile than IPOs. However, this also means the potential for high returns may be lower than with IPOs.
Another difference between IPOs and regular stock investments is the cost. Investing in an IPO typically requires a larger investment than investing in regular stock. This is because IPOs are often priced higher than the company's actual value, and there is usually a lot of demand for shares.
Regular stock investments, on the other hand, can be made with as little or as much money as the investor wants. There are also fewer fees associated with regular stock investments, as there is no need to pay for underwriting or other IPO-related costs.
IPOs are available to the general public and other investors in different proportions. They are first typically offered to institutional investors, such as banks and hedge funds, or high-net-worth individuals. And then comes the chance for retail investors.
Regular stock investments, on the other hand, are available to anyone with a demat account. This makes regular stock investments more accessible to retail investors who may not have the resources to invest in IPOs.
Finally, the timing of the investment is another difference between IPOs and regular stock investments. IPOs are typically available for a short period of time, usually a few weeks or months. After this, the shares are available for trading on the stock exchange. This means that investors who want to participate in an IPO need to act quickly and may not have enough time to conduct thorough research on the company.
Regular stock investments, on the other hand, can be made at any time. Investors can choose to buy or sell stocks based on their investment goals and market conditions. This flexibility allows investors to adjust their portfolios as needed and take advantage of market opportunities.
In conclusion, both IPOs and regular stock investments have their advantages and disadvantages. IPOs can offer high potential returns, but they also come with higher risk and cost. Regular stock investments, on the other hand, are generally considered less risky and more accessible to retail investors. Ultimately, choosing between IPOs and regular stock investments depends on an investor's risk tolerance, investment goals, and financial resources.
Health insurance is an important investment in protecting your health and finances. It covers a variety of medical expenses, from hospitalization to surgery and even medication. However, it is important to know how to claim health insurance to reap the benefits of your policy. In this blog, we will discuss the types of health insurance claims, the documents required to claim health insurance, and how the health insurance claim process works.
There are two types of health insurance claims - cashless and reimbursement claims.
In cashless claims, the policyholder has to get treatment from a network hospital that has a tie-up with the insurance company. The policyholder can inform the insurance company about the planned hospitalization, and the insurance company will provide a pre-authorization letter to the hospital. This letter mentions the approved amount for the treatment. After the treatment is completed, the hospital sends the bills directly to the insurance company for payment. The policyholder does not have to pay anything, except for non-medical expenses like food or telephone charges. Policyholders can get reimbursement for pre and post-hospitalization expenses by submitting actual bills to the insurance company.
Reimbursement claims are applicable when the policyholder gets treated at a non-network hospital or if the policyholder cannot get cashless treatment due to certain reasons. In this case, the policyholder has to pay for the treatment upfront and then claim reimbursement from the insurance company later. The policyholder has to submit all the required documents to the insurance company within a specified time period. Once the documents are verified, the insurance company reimburses the approved amount to the policyholder.
The documents required for health insurance claims vary depending on the type of claim. However, there are some common documents that are required for both cashless and reimbursement claims. These include:
The first step in the health insurance claim process is to inform the insurance company about the hospitalization. If it's a planned hospitalization, then the policyholder should inform the insurer in advance. In case of an emergency, the policyholder should inform the insurer within 24 hours of hospitalization.
Once the policyholder has informed the insurer, the next step is to file the claim. The policyholder can either opt for a cashless claim or reimbursement claim, depending on the circumstances.
For a cashless claim, the policyholder needs to fill in the pre-authorization form provided by the insurer. This form needs to be submitted to the hospital's insurance desk, which will verify the policy details and send it to the insurer. Once the insurer approves the claim, the hospital will provide cashless treatment to the policyholder.
For a reimbursement claim, the policyholder needs to submit the claim form along with the necessary documents to the insurance company. The claim form is available on the insurer's website or can be obtained from their office. The policyholder needs to ensure that the form is filled out correctly and all the necessary documents are attached to it.
The documentation process is an essential part of the health insurance claim process. The policyholder needs to submit the following documents along with the claim form:
Once the insurer receives the claim form and necessary documents, they will verify the details and approve the claim. In case of a cashless claim, the insurer will settle the medical bills directly with the hospital. In a reimbursement claim, the insurer will verify the expenses incurred and reimburse the policyholder for the same.
The health insurance claim process can be a little complex, but it's essential to understand it to avail of the benefits provided by the policy. The policyholder needs to ensure that all the necessary documents are submitted to the insurer to ensure a smooth and hassle-free claim settlement process.
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General insurance is a type of insurance that provides coverage for various risks and uncertainties that may occur in everyday life. It can include coverage for health, home, motor, travel, and other types of insurance policies. In the event of an unfortunate incident, it is important to know how to claim your insurance to get the coverage you deserve. In this blog, we will discuss the steps you need to follow to claim your general insurance policy.
The first step to claim your general insurance policy is to inform your insurance company about the incident immediately. This process is known as the intimation of a claim. You can do this by calling the toll-free number provided by the insurance company, sending an email, or visiting their website. Make sure you provide accurate details about the incident and your policy number. The insurance company will assign a claim number and a claims representative to assist you in the process.
Once you have informed the insurance company about the incident, you will need to submit the necessary documents to support your claim. The documents required may vary depending on the type of insurance policy you have and the incident you are claiming for. Below are the standard documents that may be required:
After receiving the claim intimation and necessary documents, the insurance company will assign a surveyor to assess the damage or loss. The surveyor will visit the location of the incident, examine the damage, and prepare a report. The surveyor's report is an important document as it helps the insurance company determine the extent of the damage and the compensation that needs to be paid.
Based on the surveyor's report and the documents submitted, the insurance company will process your claim and settle the amount due. The settlement may be made in the form of cashless settlement or reimbursement, depending on the terms and conditions of your policy.
Cashless Settlement:
In a cashless settlement, the insurance company directly pays the hospital or service provider for the expenses incurred by the policyholder. This option is available for health insurance policies and motor insurance policies.
Reimbursement:
In a reimbursement settlement, the policyholder pays the expenses incurred and then submits the bills and receipts to the insurance company for reimbursement. This option is available for most general insurance policies.
After submitting your claim, make sure to follow up with the insurance company regularly to get updates on the status of your claim. You can also check the status of your claim online through the insurance company's website. In case of any discrepancies or delays, you can contact the claims representative assigned to you for assistance.
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पिछले सप्ताह मौद्रिक नीति पर फेड के कम आक्रामक रहने से सोने की कीमतों में तेजी आई। ब्याज दर बढ़ोतरी की सीमित गुंजाइश की प्रत्याशा में, अमेरिका और यूरोप में हाल के बैंकिंग संकट ने कीमती धातुओं की मांग को बढ़ा दिया है, और डॉलर इंडेक्स को सात सप्ताह के निचले स्तर पर खींच लिया। फेड ने संकेत दिया कि वह आगे की आर्थिक प्रतिकूलताओं को रोकने के लिए अपनी तंग मौद्रिक नीति में नरमी पर विचार कर सकता है।
जबकि फेड ने उम्मीद के मुताबिक ब्याज दरों में बढ़ोतरी की और कहा कि यह मुद्रास्फीति को रोकने के लिए प्रतिबद्ध है, फेड की भाषा में बदलाव से बाजार को उम्मीद है की ब्याज दर बढ़ोतरी का पीक निकट है। डॉलर इंडेक्स में गिरावट रहने से सोने -चांदी के साथ अन्य कमोडिटी के भाव को भी फायदा मिल रहा है। फेड ने पिछले सप्ताह उम्मीद मुताबिक 0.25 प्रतिशत ब्याज दरें बढ़ाई है और अर्थव्यवस्था को नुकसान से बचाने के लिए लिए मौद्रिक नीति में नरमी रखने के संकेत दिए है। फेड ने अभी ब्याज दर कटौती से इंकार किया है। लगातार ब्याज दर वृद्धि होने के कारण अमेरिका के कुछ बैंक दिवालिया हो गए है और कई बैंको की वित्तीय हालत ख़राब होने से आगे ब्याज दरों में बढ़ोतरी बैंकिंग संकट को बढ़ा सकता है। वित्तीय संकट की सम्भावना के चलते निवेशकों में निवेश के लिए सुरक्षित आश्रय की मांग बढ़ी है जिससे सोने और चांदी की चमक लगातार बढ़ती दिख रही है। फेड के अतिरिक्त यूरोपियन सेंट्रल बैंक ने 0.5 प्रतिशत और बैंक ऑफ़ इंग्लैंड ने 0.25 प्रतिशत ब्याज दरों में बढ़ोतरी की है। हालांकि, पिछले सप्ताह प्रमुख बैंको की मौद्रिक नीति रहने के चलते सोने के भाव में उठा-पटक देखि गई और सप्ताह में सोना मामूली बढ़त दर्ज करते हुए 59500 रुपये प्रति दस ग्राम पर रहा, जबकि चांदी के भाव में 3 प्रतिशत की साप्ताहिक बढ़त दर्ज की गई है और इसके भाव 70400 रुपये प्रति किलो के स्तरों पर पहुंच गए है।
इस सप्ताह कीमती धातुओं में तेज़ी रहने की सम्भावना है। सोने में सपोर्ट 58000 रुपये पर है और रेजिस्टेंस 60000 रुपये पर है। चांदी में सपोर्ट 68000 रुपये पर है और रेजिस्टेंस 72000 रुपये पर है।
सोने और चांदी की कीमतों में पछले सप्ताह ग्लोबल बैंको में संकट बढ़ने के कारण, हैवन डिमांड देखि गई। एमसीएक्स में सोना पिछले सप्ताह 3.8 प्रतिशत तेज़ हो कर 58250 रुपये प्रति दस ग्राम के स्तरों पर रहा, जबकि चांदी वायदा सप्ताह में 7 प्रतिशत तेज़ हो कर 67200 रुपये प्रति किलो पर रहा। बैंकिंग संकट की आशंकाओं और मौद्रिक नीति पर अनिश्चितता ने कीमती धातुओं की सुरक्षित आश्रय अपील को बढ़ाया है। अमेरिका सिलिकॉन वैली बैंक दिवालिया होने के बाद स्विस बैंक क्रेडिट सुइस भी वित्तीय संकट का सामना कर रही है। हालांकि, क्रेडिट सुइस को मदद मिलने, और यूरोपियन सेंट्रल बैंक द्वारा ब्याज दरों में 0.5 प्रतिशत की बढ़ोतरी से कीमती धातुओं में पिछले सप्ताह के अंत मे मुनाफा वसूली रही। बैंकिंग संकट के चलते निवेशकों को उम्मीद है की फेड मौद्रिक नीति पर नरमी रखेगा। फेड के दर-वृद्धि चक्र में किसी भी रुकावट से सोने को फायदा होगा और डॉलर के मुकाबले सोने की मांग बढ़ेगी, और गैर-उपज वाली संपत्ति रखने की अवसर लागत भी कम रहेगी। बैंकिंग संकट और ब्याज दर बढ़ोतरी पर अनिश्चितता कीमती धातुओं को सपोर्ट कर रही है। हालांकि, मुद्रास्फीति स्थिर रहने के कारण फेड मौद्रिक नीति पर कठोर रह सकता है। मार्च में होने वाली फेड की बैठक पर निवेशकों की नज़रे रहेंगी जिसमे ब्याज दर बढ़ोतरी कितनी होगी, यह स्पष्ट नहीं हुआ है।
इस सप्ताह के आर्थिक आंकड़े कीमती धातुओं के लिए महत्वपूर्ण रहेंगे जिसमे फेड की बैठक, ब्रिटैन की मॉनेटरी पॉलिसी और यूरोप के मैन्युफैक्चरिंग आंकड़े शामिल है।
इस सप्ताह कीमती धातुओं के भाव में अस्थिरता रहने की सम्भावना है। सोने में सपोर्ट 57000 रुपये पर है और रेजिस्टेंस 59000 रुपये पर है। चांदी में सपोर्ट 65400 रुपये पर है और रेजिस्टेंस 69000 रुपये पर है।
बुलियन, कमोडिटी, बेस मेटल्स, एग्रीकल्चरल कमोडिटीज से जुडी हुई एक्सपर्ट रेकमेंडेशन्स के लिए आज ही अपना फ्री डीमैट अकाउंट खोले
The Indore Municipal Corporation (IMC) in Madhya Pradesh will issue green bonds as a public issue on February 10 to raise funds for building a solar power plant. This will be a first of its kind in India.
The green bond issue will open on February 10 and close on February 14. the bond is expected to list on the National Stock Exchange after February 22.
A green bond is a type of debt security that a company issues to finance or refinance projects that have a beneficial impact on the environment and the climate. A climate bond is another name for a green bond.
The chief municipal corporation for the city of Indore is the Indore Municipal Corporation (IMC). The Commissioner (Nagar Aayukt) of the Issuer is Smt. Pratibha Pal, an IAS, and the Mayor are Shri Pushyamitra Bhargav. IMC is secured under the AMRUT Scheme of the Indian Government. Additionally, Indore Municipal Corporation owns 50% of Indore Smart City Development Limited (ISCDL), a Special Purpose Vehicle established under the Companies Act of 2013 to carry out Indore Municipal Corporation's Smart City Mission plan to build a smart city (SCM). ISCDL has contributed to the successful execution of a number of projects.
According to DRHP, the corporation would issue four individually transferable and redeemable principal parts non-convertible debentures (NCDs) with a face value of Rs 1,000 each (STRPP). Each NCD of Rs 1,000 will include one STRPP A, one STRPP B, one STRPP C, and one STRPP D, each with a face value of Rs 250. The duration of STRPP A is 3 years, STRPP B is 5, STRPP C is 7, and STRPP D is 9 years.
The green bond issue would need a minimum application size of Rs 10,000 (or 10 NCDs), with subsequent applications coming in multiples of Rs 1,000.
India Ratings & Research gave the proposed green bonds an AA+ rating with a stable outlook. Care Ratings has given the issue an AA rating with a stable outlook, nonetheless.
According to the Income Tax Act of 1961, NCD holders are not entitled to any special tax benefits. If the NCD is held for less than 12 months the holder must pay short-term capital gains on interest income or for more than 12 months, the holder must pay long-term capital gains on interest income.
The book-running lead managers for the issue are AK Capital Services Limited, SBI Capital Markets Limited, and Vistra ITCL (India) Limited, while KFin Technologies is the registrar.
According to the source, the civic corporation of the nation's cleanest city hopes to raise at least Rs 245 crore through green bonds that will be utilized to build a 60 MW solar power at the villages of Samraj and Ashukhedi in the Madhya Pradesh district of Khargone and the electricity from it will be used to pump water to Indore from the Narmada river in Jalud village, which is located in the nearby Khargone district and is around 80 km distant.
The official projected that Rs 300 crore will be needed to build up the solar power facility.
A solar power plant building tender has already been announced, and once it is approved, construction will take two years, the municipality will save Rs 25 crore per month after the projected solar power facility at Jaludis constructed.
The corporation's revenue income for the financial year 2021–2022 was Rs 1,739.95 crore as compared to Rs 1,508.10 crore in the same time the previous year.
While the corporation expenditure was Rs 1,107.88 crore in FY22, excluding interest and depreciation.
The total debt in 2021–22 was Rs 579.43 crore, down from Rs 648.45 crore in the same time the previous year.
The Green Bonds Issue offers an effective return of 8.42% annually and a coupon rate of 8.25% p.a. payable every six months. the NCDs are intended to be listed on both NSE and BSE. CARE Ratings Limited and India Ratings & Research Private Limited have rated the Green Bonds as "CARE AA: Stable" and "IND AA+/Stable," respectively.
To Invest in IMC green Bond Issue with the Swastika app or visit the link or apply through the Indore 311 App.
Investing in the stock market is a great way to grow your wealth over time, but it can be intimidating to many people who don't have experience with it. Fortunately, there's a type of investment that is specifically designed for beginners: the Equity Linked Savings Scheme (ELSS). In this blog post, we'll take a closer look at what ELSS is and the benefits of investing in it.
ELSS is a type of mutual fund that invests primarily in stocks. It is designed to help individuals save on their taxes while also earning a return on their investment. The primary feature of an ELSS fund is that it offers tax benefits for the FY 2022-23 under section 80C of the Indian Income Tax Act, which allows you to claim a tax deduction of up to Rs. 1.5 lakh on your taxable income.
ELSS funds come with a lock-in period of three years, which means that you can't withdraw your money before that time period. However, this is actually a good thing for investors because it encourages them to hold onto their investments for the long term, which can help them earn higher returns.
Diversified Portfolio - ELSS funds invest in a diversified portfolio of stocks across different sectors, which helps to reduce the risk associated with investing in equities.
Lock-in Period - ELSS has a mandatory lock-in period of 3 years, which means that investors cannot redeem or sell their investment before the completion of the lock-in period.
Tax Benefits - ELSS offers tax benefits for the FY 2022-23 under Section 80C of the Income Tax Act, which allows investors to claim a deduction of up to Rs. 1.5 lakh in a financial year. This deduction is available to all individual taxpayers, including salaried individuals, self-employed individuals, and Hindu Undivided Families (HUFs).
Growth Potential - ELSS funds have the potential to provide higher returns than other tax-saving investments such as PPF, NSC, and FDs, as they invest in equities (depending on market conditions), which have the potential to generate higher returns over the long term.
Tax Benefits - ELSS offers tax benefits for the FY 2022-23 under Section 80C of the Income Tax Act, which allows investors to save taxes up to Rs. 46,800 in a financial year.
High Returns - ELSS has the potential to provide higher returns than other tax-saving investments such as PPF, NSC, and FDs, as they invest in equities, which have the potential to generate higher returns over the long term.
Diversification - ELSS invests in a diversified portfolio of stocks across different sectors, which helps to reduce the risk associated with investing in equities.
Easy to Invest - ELSS can be invested through SIPs (Systematic Investment Plan), which makes it easy for investors to invest small amounts of money regularly.
Tax Benefits - ELSS offers tax benefits under Section 80C of the Income Tax Act, which allows investors to save taxes up to Rs. 46,800 in a financial year.
High Returns - ELSS has the potential to provide higher returns than other tax-saving investments such as PPF, NSC, and FDs, as they invest in equities, which have the potential to generate higher returns over the long term.
Diversification - ELSS invests in a diversified portfolio of stocks across different sectors, which helps to reduce the risk associated with investing in equities.
Lock-in Period - ELSS comes with a mandatory lock-in period of 3 years, which helps investors to stay invested for the long term and benefit from the power of compounding.
Market Risk - ELSS invests in equities, which are subject to market risk. This means that the returns on ELSS can be volatile and unpredictable, and investors may experience losses in the short term.
Lock-in Period - ELSS comes with a mandatory lock-in period of 3 years, which means that investors cannot redeem or sell their investment before the completion of the lock-in period. This can be a disadvantage for investors who may need liquidity in the short term.
Performance - The performance of ELSS depends on the performance of the underlying stocks in the portfolio. If the stocks do not perform well, the returns on ELSS may be lower than expected.
Fees and Charges - ELSS comes with various fees and charges such as fund management charges, exit load charges, and expense ratio charges, which can reduce the overall returns on the investment.
Investment Objective - Before investing in ELSS, investors should identify their investment objective and risk appetite. ELSS is a high-risk investment option and is suitable for investors who can bear the volatility and risk associated with investing in equities.
Lock-in Period - Investors should consider the lock-in period of ELSS before investing. If investors may need liquidity in the short term, ELSS may not be the best investment option for them.
Past Performance - Investors should consider the past performance of the ELSS before investing. However, past performance does not guarantee future returns, and investors should not solely rely on past performance while making investment decisions.
Fund Manager - The fund manager plays an important role in the performance of the ELSS. Investors should research and evaluate the fund manager's track record and investment strategy before investing in ELSS.
Fees and Charges - Investors should consider the fees and charges associated with ELSS before investing. High fees and charges can significantly reduce the overall returns on the investment.
Asset Allocation - Investors should consider their overall asset allocation before investing in ELSS. ELSS is an equity investment option, and investors should ensure that their overall asset allocation is balanced and diversified across different asset classes.
ELSS is a popular investment option for those seeking tax-saving benefits along with growth opportunities. While ELSS comes with several advantages such as tax benefits, high returns, and diversification, investors should also consider the disadvantages and factors before investing in ELSS. By considering these factors, investors can make informed investment decisions and achieve their investment objectives.
The Indian stock market timing is currently set at 3:30 pm, but there is talk of extending it to 5 pm. The move is being considered for a variety of reasons. One of the primary reasons is to align India's market timings with that of other major global markets, which will enable traders to calculate all their losses at once. Another reason is to increase liquidity and trading volumes. Longer trading hours provide more opportunities to transact, which can lead to more trading volumes. Additionally, the longer time frame can also help traders manage overnight market risk more effectively, which can attract more market participants eventually.
However, it is important to note that the volume in the market is concentrated towards the first and last hour. Despite the extension of trading hours by an hour in 2010, there has been a negligible effect on volume growth in the markets. Furthermore, India has lost a chunk of its trading volume to Singapore and Dubai due to taxes and risk hedging, and not due to trading hours.
The extension of trading hours can also help in hedging the risk in domestic markets, but it may not be beneficial for active retail F&O traders in the long term. Tracking P&L for long hours can be stressful and may affect their mental health. Additionally, active traders do not make money primarily due to over-trading, and longer hours may accentuate this problem.
While the move could boost revenues for the capital markets business in the short term, it may lead to lower participation and liquidity in the long run, which will affect everyone. Therefore, it is important to consider all the factors before extending the trading hours.
With its high salary and stable jobs, the technology sector is frequently regarded as one of the most profitable and secure industries in the world. This illusion has been dispelled for many employees, however, by the current trend of tech layoffs. Numerous IT firms announced significant layoffs in 2023, leaving thousands of employees scrambling to find their next position. This article will describe how tech layoffs are now happening in 2023 and offer advice on how employees may deal with layoffs and look for new opportunities.
The global recession is one of the main causes of the present trend of IT layoffs. The COVID-19 pandemic has significantly slowed down the world economy, which has resulted in a decline in the demand for technological products and services. In an effort to reduce costs, several businesses that are struggling to preserve their profitability have turned to layoffs. In addition, the rapid rate of technological advancement has led to the automation of many jobs, which has rendered them redundant and left employees without work.
The impact of tech layoffs is far-reaching, affecting not just the employees who lose their jobs, but also their families and the local communities in which they live. While the employees may receive some financial support in the form of severance packages or unemployment benefits, they still face the stress of finding a new job in an uncertain job market.
What can employees do to deal with layoffs in the IT industry and discover new opportunities? Here are some suggestions:
IT layoffs are a reality in today's market, and they can be challenging to manage. You may improve your chances of landing a new job by staying positive, networking, updating your resume, exploring new opportunities, and staying current. Just keep in mind that your talents and experience will help you thrive in your future position and that your layoff is not an indication of your ability level.
Any organization must prioritize recruitment since it affects both the talent pool and the business's ability to develop. But finding the proper candidates is frequently difficult for the HR department. Let's examine some of these difficulties and how to get beyond them.
The search for people with the necessary skills and qualifications is one of HR's biggest challenges. To find the best applicants, HR might use pre-employment evaluations and competency testing. Additionally, they can work with educational institutions to find suitable applicants and offer training courses to help current employees improve their abilities.
which occurs when an applicant abruptly ceases responding to communications from a potential employer, is a regular problem that HR must deal with. This delays the hiring process because HR must locate a substitute. Finding and hiring a new employee can be expensive, especially if the hiring process is starting from scratch. Ghosting can lead to the loss of potentially excellent applicants who might have been a good fit for the business.
The recruitment process can be time-consuming and expensive.
Solution: Automation of the recruitment process can reduce the time and cost involved. By using online job portals, resume databases, and applicant tracking systems, HR can streamline the recruitment process.
Once the right candidates are recruited, retaining them is another challenge faced by HR. To retain top talent, HR can offer competitive salary packages, flexible work arrangements, and opportunities for professional growth.
Another challenge faced by HR is ensuring diversity and inclusion in the recruitment process. HR can implement diversity and inclusion policies and conduct bias training for all employees involved in the recruitment process. They can also use blind resume screening to eliminate unconscious bias. In conclusion, recruitment is a challenging process for HR departments, but with the right solutions, it can be made smoother and more effective. Automation, collaboration with educational institutions, implementing diversity and inclusion policies, and offering attractive employment packages can help HR overcome the challenges of recruitment and bring in top talent.
Economists deal with ups and downs in graphs for a living, but when the Yield Curve gets toppled on its head, it causes all the mayhem. Its inversion is the stuff of nightmares for economists and this aversion towards its inversion isn’t without a reason. If we turn our clocks and look back to the past, we can see the flip of the curve has preceded every single recession, notably in the US, for the past half-century or so.
But before we dive deeper into why it is such a big deal for policymakers and investors alike, and how it helps them predict the state of the economy, first let's wrap our heads around what a yield curve is.
First and foremost, the yields in the discussion here are yields from Bonds, more specifically the highest rated Bonds of any country, like the treasury bills in the US or Government bonds in India.
All these bonds offer a fixed coupon payment (Interest) to the holder. However, Yield and Coupon rates are entirely different. While Coupon Rate is applied on the face value of the bonds, Yield is the rate of return an investor gets on the price he paid for such bonds.
For Instance,
Face Value of a Bond- Rs. 1000/ -
Interest Rate- 6% p.a.
Current Market Price- Rs 1200/ -
Yield=Interest/Current Market Price
Yield= 60 /1200=5%
Thus, if the market price decreases, the yield increases, and vice versa, establishing an inverse relationship between the market price of a bond and its yield. For those who stick with the bond till its maturity, this yield won't matter much, but for people who buy and sell bonds at market prices, Yield is a quintessential parameter in deciding whether the bond is worth investing in or not.
Now that we have gone over what Yield means, let’s figure out what yield curve is. When the maturity period of different bonds (say from 3 months to 10 years) are plotted on X- Axis and their corresponding yields are plotted on the Y-axis, we get a ‘yield curve’.
Here is the yield curve of Indian Government bonds, from Overnight Bonds to Bonds with 40- Year Bonds.
The rationale behind this is called 'Liquidity Premium Theory'. Investors who are investing their money for longer periods will obviously demand higher coupon payments and at the same time, are willing to pay a lower price.
These two factors result in a higher yield for long-term bonds, thus giving the yield curve is rising slope.
But when this curve gets inverted, it can get all tipsy-turvy. The inversion is caused when Long Term Yield is lower than the Short term Yield.
This happens when Investors start investing in long-term Bonds resulting in an increase in their prices, which consequents in a decrease in the long-term yield.
This isn’t a good situation for an Economy to be in, because a preference toward long-term bonds indicates that investors don’t have strong confidence in the economy’s short-term prospects and want to secure their long-term payments, at the cost of earning better returns.
And, this preference toward bonds over equity results in a decline in equity investments. As a consequence, economic activities plummet, which ultimately worsens the blow to the economy, as it spirals down toward a gloomy spell of recession.
Make no mistake, the inversion of the yield curve is not the cause of a recession, but it's merely a predictor of it and a very good one at that. Economists all over the globe have long ago recognized it as one of the crucial indicators of economic health, and now that you have apprehended why it is so highly regarded, keep an eye out for the next inversion. It might be closer than you think…Until next time.
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