Understanding the Recent Stock Market Decline in India: Causes and Implications

 The Indian stock market experienced a significant downturn yesterday, sending shockwaves across investors and financial experts alike. This sudden decline has raised concerns and questions about the factors contributing to this downward trend and its potential implications on the economy. In this article, we will delve into the reasons behind yesterday's stock fall in India and explore its broader impact.

Market Volatility: Financial markets are inherently volatile, influenced by a myriad of factors ranging from economic data and geopolitical events to investor sentiment. India's stock market, like others globally, is susceptible to these fluctuations. Yesterday's stock fall can partly be attributed to this inherent volatility.

Global Economic Factors: Global economic events and decisions by major economies, such as changes in interest rates, trade policies, and geopolitical tensions, can significantly impact the Indian stock market. Trade disputes, economic slowdowns in key trading partners, or geopolitical tensions can trigger investor apprehension, leading to a sell-off.

Domestic Economic Indicators: Domestic economic indicators, including GDP growth, inflation rates, and employment figures, play a crucial role in shaping investor confidence. Any adverse data or unexpected shifts in these indicators can lead to market uncertainty, causing a decline in stock prices.

Corporate Performance: The performance of individual companies listed on the stock exchange also affects market dynamics. Disappointing earnings reports, management issues, or unanticipated losses can lead to a sell-off of company stocks, dragging down market indices.

Regulatory Changes: Changes in regulatory policies, tax reforms, or government initiatives can impact investor sentiment. Investors closely monitor government decisions and policies, as these changes can have far-reaching consequences on businesses and the overall economy.

Investor Sentiment: Investor sentiment plays a crucial role in shaping market trends. Positive sentiment can drive stock prices up, while negative sentiment can lead to a market sell-off. Factors like news reports, social media trends, and public perceptions can influence how investors perceive the market.

Implications and Precautions: A sudden stock market fall often prompts investors to reassess their portfolios and risk tolerance. Diversification, staying informed about market trends, and consulting with financial advisors are essential steps for investors to safeguard their investments during periods of market volatility.

Conclusion: While yesterday's stock fall in India may be disconcerting, it is essential to understand that financial markets are inherently cyclical. Ups and downs are part of the natural rhythm of the market. Investors, both individual and institutional, must remain vigilant, stay informed, and make well-informed decisions to navigate these fluctuations successfully. Additionally, policymakers and regulators must continue to monitor market dynamics and implement measures that promote stability and confidence within the financial sector.

Financial knowledge is not the problem in India, but financial attitude is

You might know a lot about finance, but that doesn't necessarily mean you have the right attitudes towards managing your money. That seems to be the message from the survey on financial literacy carried out by researchers from the Reserve Bank of India. The study, titled ‘Financial Literacy in India: Insights from a Field Survey', was published in this month's RBI Bulletin. The research studied three components of financial literacy—financial knowledge, financial behaviour and financial attitude. While the scores for the first two parameters are decent, the survey's respondents had a low score in financial attitude.

The financial knowledge tested was about basic financial concepts, such as inflation, the relationship between risk and return, portfolio diversification and about the RBI Ombudsman. The financial behaviour of those surveyed was assessed based on how they manage their household budgets, saving behaviour, managing the cost of living and evaluating options while selecting financial products.

Financial attitude, on the other hand, was measured by the response to three specific statements: 1) You tend to live for today and let tomorrow take care of itself, 2) You find it more satisfying to spend money than to save it for the long term and 3) You are prepared to risk some of your own money when saving or making an investment.

The researchers found that respondents scored 3.8 out of 5 in financial knowledge, which isn't bad at all, considering that a survey for 12 OECD countries in 2020 had a score of 4.6 out of 7. The OECD, or the Organisation for Economic Co-operation and Development is also known colloquially as the ‘rich countries' club.' Respondents in the RBI study had the lowest score in their understanding of the diversification concept. Educated and richer persons had better financial knowledge, as did those who resided in metropolises. That is hardly a surprise. Retired persons were financial savvy, perhaps because necessity forces them to be.

For financial behaviour, the researchers found the score to be 6.65 out of 9, well above the OECD score of 5.3 out of 9. With very little social security in India, people have to willy-nilly behave well financially.

The anomaly lies in financial attitudes. The average score for financial attitudes is a mere 1.97 out of a maximum of 5. Compare that to the OECD minimum score of 3 out of 5. In the RBI survey, only 25 per cent of the respondents scored 3 or more. Clearly, our financial attitudes are all wrong.

That is surprising, because behaviour is usually a result of your attitude. Surely, if your attitude towards finance is negative and reckless, your behaviour should reflect that. The OECD International Survey of Adult Financial Literacy says, ‘even if an individual has sufficient knowledge and ability to act in a financially prudent way, their attitudes will influence their decision of whether or not to act.' The RBI researchers do not say anything about the gap between attitude and behaviour.

Perhaps the clue lies in the questions being asked of respondents to gauge their financial attitudes. For instance, of course people will find it more satisfying to spend money than to save, they may prefer to live for today rather than worry about tomorrow and people may really be prepared to risk some of their money in investments. But when it comes to financial behaviour, they find that they cannot afford to do any of these things. That could be a reason for the gap between attitude and behaviour. Could it also be that having a reckless attitude towards finances may, sooner or later, affect financial behaviour as well?

The survey also shows that homemakers have little financial knowledge, but they have positive financial attitudes and good financial behaviour.

On the other hand, daily wage workers have some financial knowledge, but poor financial attitudes and behaviour. That only goes to show that, as long as you are financially constrained, financial knowledge can only get you so far.

The RBI researchers recommend, ‘FL (Financial Literacy) camps must target to enhance knowledge of female respondents and of those residing in semi-urban areas; and target attitude development for remaining respondents' groups so as to benefit the entire population in deprived areas.'

Government postpones higher TCS on overseas spends by 3 months to October 1

As per the latest clarification from the finance ministry, if a person is overseas and spends through the credit card, it would not count under LRS and therefore would not attract TCS. Further, if a person uses credit card while in India for permissible overseas transactions, then that would count under LRS and attract TCS if it exceeds Rs 7 lakh in a year.

Common ITR form for all taxpayers

The finance ministry on Tuesday proposed to come out with a user-friendly common income tax return form for all taxpayers, under which income from virtual digital assets will have to be disclosed under a separate head.

All taxpayers, except trusts and non-profit organisations, can file returns with the proposed new common ITR form, on which the Central Board of Direct Taxes (CBDT) has invited stakeholder comments by December 15.

Currently, there are 7 types of income tax return (ITR) forms which are filed by different categories of taxpayers.

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property/other sources (interest etc).

ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh and having income from business and profession.

ITR-2 is filed by people having income from residential property, ITR-3 by people having income as profits from business/ profession, ITR-5 and 6 by LLPs and businesses respectively, while ITR-7 is filed by trusts.

The CBDT, under the finance ministry, said that ITR-1 and 4 would continue, but individuals would also have the option to file returns of income in the common ITR form.

"It proposes to introduce a common ITR by merging all the existing returns of income except ITR-7. The draft ITR aims to bring ease of filing returns and reduce the time for filing the ITR by individuals and non-business-type taxpayers considerably," the CBDT said.

The taxpayers will not be required to see the schedules that do not apply to them. It will have a smart design of schedules in a user-friendly manner with a better arrangement, logical flow, and increased scope of pre-filling.

"It will also facilitate the proper reconciliation of third-party data available with the Income-tax Department vis a vis the data to be reported in the ITR to reduce the compliance burden on the taxpayers," the CBDT said.

The proposed ITR would be customised for the taxpayers with applicable schedules based on certain questions answered by them.

Once the common ITR form is notified, after taking into account the inputs received from stakeholders, the online utility will be released by the Income Tax Department.

"In such a utility, a customised ITR containing only the applicable questions and schedules will be available to the taxpayer," the CBDT said.

Nangia Andersen LLP Partner Sandeep Jhunjhunwala said taxpayers filing return of income in Forms ITR-2, ITR-3, ITR-5 and ITR-6 would not have an option to file the old forms, once the new common form and related utility are notified.

"Contemporary reporting requirements such as pass through income or loss under various heads, income from virtual digital assets, declaration and details of Business Connection, Permanent Establishment and Significant Economic Presence in India for non-residents, and details of foreign equity and debt interest held remain key highlights of the new common ITR form," Jhunjhunwala added.

Block UPI Apps if the phone is stolen or lost or lost your SIM Card

For Paytm

Step #1: Call 01204456456 to the PayTM Payments Bankh helpline

Step #2: Choose the "Lost Phone" option. 

Step #3 Select "Enter a different number" and then, type the phone number you lost. 

Step #4: Select the option to log out from all the devices using the samel ogin credentials.

Step #5. Go to PayTM's website (www.paytm.com) and select the option "24x7 help" 

Step #6: You need to choose "Report a Fraud" from among the other options available onboard. 

Step #7: Once you select the appropriate issue, tap on "Message

Step #8: The next screen will asky ou to prove the ownership of thea account by submitting a debit or credit card statement, email, or SMS confirmation, as well as some  documentation such as a police report proving that your phone was lost or stolen 

Step #9: Once all the information is confirmed and verified, you will receive a message confirming that your PayTM account and UPI have been temporarily blocked unless you unfreeze it.

Google Pay

Step #1: Firstly, dial 18004190157

from any smartphone to reach out to

customer service Step 

#2: Talk to the respective customer service representative to answer their queries and ask them to block your Google Pay account.

Step #3: Repeat the following procedure based on if you are using Android or iOS 

PhonePe

Step #1: Dial numbers  02268727374 or 08068727374 

Step #2: Next, you need to mention the phone number associated with the PhonePe account to report it

Step #3: Enter the OTP when required if you have the SIM card or else, select 'report the loss of a SIM or device.

Step #4. You will be connected to a customer service representative where you can report the incident or fraud and ask them to block your PhonePe account.

Step #5: Verify that your PhonePe account has been blocked. You can now seek out a new phone and port your old phone number to a new SIM card and re-active all the services just like the ones that were available previously.

Big EPFO news! Pension to shopkeepers too!!!

The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 will have to be reformed to remove the salary limit of Rs 15,000 and 20 employees. After this change, self-employed people will also be able to join the EPFO ​​scheme.

Employees’ Provident Fund Organization ie EPFO ​​is working on an important proposal. EPFO is considering a proposal to abolish the salary and the limit of employees in the company. This proposal is being considered to be implemented for all types of formal workers and self-employed people. This means that people whose salary is less than Rs 15,000 and a company that does not have 20 employees can be included in the retirement scheme of EPFO.

To implement this new proposal, EPFO ​​is talking to different parties and its point has also been conveyed to the states. At present, only people whose salary is Rs 15,000 can take advantage of the EPFO ​​scheme. Also, only the company which has at least 20 employees can add their employees to the EPFO ​​scheme. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 will have to be reformed to remove the salary limit of Rs 15,000 and 20 employees. After this change, self-employed people will also be able to join the EPFO ​scheme.

Once this amendment is done in the rules of EPFO, then the rule of salary and mandatory number of employees will be abolished. Then any company with any income or salary and any number will be able to join EPFO. At present, the benefit of the retirement scheme of EPFOs available to the same employee or worker whose salary is more than Rs 15,000. EPFO provides a provident fund, pension and insurance facility to its members. These facilities are provided under EPF, Employee Pension Scheme and Employee Deposit Linked Insurance Scheme.

On the other hand, a committee has suggested to increase the salary limit of EPF from Rs 15,000 to Rs 21,000. According to the existing rules, only an employee can join EPFO ​​whose salary is up to Rs 15,000. The rule says that it is necessary to give the benefit of the EPF scheme on behalf of the company to an employee with a monthly salary of Rs 15,000. If the recommendation of the committee is accepted, then the salary limit can be Rs 21,000. Earlier in 2014, the salary limit was increased. EPF was set up in the year 1952 and the 9th increase was done for the last time in 2014.

The money deposited in EPF is for retirement facilities. But in adverse circumstances or subject to certain conditions, money can be withdrawn from PF. During the Corona period, the government had given permission to withdraw advance money from PF. As soon as the limit of Rs 21,000 is fixed, about 75 lakh employees of the country will come under PF.

At present, the benefit of EPF is given to 6.80 crore people. But if the EPFO ​abolishes the rule of the salary limit, then people working in the formal sector and self-employed will also benefit. Under EPF, the benefits of provident fund, pension and insurance schemes are given to the employees.

Multibagger Stocks

A stock is referred to as a "multibagger" if its value increases by multiples after an initial investment. These stocks might be inexpensive but have solid fundamentals and can increase an investor's return on investment by a factor of multiples. Multibagger stocks promise excellent corporate governance and quickly scaleable businesses.

The important features of multibagger stocks are :-

• Low-debt:-A low-debt company is a Zero to a multibagger stock. While the definition of a low-debt company varies by industry, it is generally accepted that debt that is less than 30% of equity value is healthy.
• Sources of income:-Look at the sources that contribute most to the company's income. The stock may merit being a multibagger in the future if the revenue sector appears to be rising at a macro level and the operations seem easily scalable.
• Quarter-on-quarter performance:-Pay attention to the company's(Quarter on Quarter) QoQ revenue multiples. Low multiples could be a sign that the company has a significant upside potential.
• Earnings and price multiples:-Check the price-/-sales and PE ratios based on the revenue and trailing 12-month EPS Increasing the PE level above the stock price more quickly shows multibagging.Based on the trailing 12-month EPS and revenue, check the current PE and price/sales ratios. Being a multibagger is indicated by a faster increase in the PE level over the stock price.The management history, corporate strategy, and yearly reports may all significantly affect stock growth

Difference between Mediclaim and Health Insurance.

When it comes to Mediclaim and health insurance, people often get confused between the two, but one should understand that there is a fine line of difference between them.

A Mediclaim insurance includes the points mentioned below:

• Expenses that are covered due to an accident
• Cost of expenditure due to any emergency

But it is essential to know that a Health insurance policy covers only the hospital's expenses. If there are any other expenses related to your health, it does not come under Mediclaim insurance. The policyholder himself is supposed to deal with the extra expenses.

Now, let us get to see what health insurance is.

Health insurance is nothing but an insurance policy. It, too, just like Mediclaim, covers all the expenses, including medical and surgical. Once you issue health insurance, you get protection against every medical emergency.

The payment system takes place in one of the two processes. One is that the payment can be made directly by the insurer. The bill is directly settled between the hospital and the insurer. And if anyone follows the second method, then the insured can pay the insured bill out of their own pockets and later ask for its reimbursement.

But it is to be noted that health insurance is much costlier than Mediclaim as it covers the policyholder's cost extensively. Now, let us see the fundamental difference between Mediclaim and health insurance:

• Mediclaim does not cover the extra cost other than the hospital expenses, whereas health insurance covers the add-ons other than the hospital expenditure.
• A Mediclaim plan is not flexible, unlike health insurance. Health insurance has a sound planning system. Our expenses and add-ons are covered according to the plan that we choose.
• A Mediclaim plan covers only an amount of 3 lakhs, whereas health insurance covers an amount of 5 lakhs.

Now, the question lies, which one is better and to know that you should consider three things:

1. The financial state you are in
2. The flexibility you require in your health plan
3. You should always check on your medical history

Now, it depends upon you which one is better for you after considering these factors.

Is bear rally over?

Falling inflation is good for any economy  Inflation in July has fallen for 4 straight months, from 7.79% in April to 6.71% in July. That said, it is still above the RBI's 6% comfort zone.

Three major factors over the next three months will determine if this is the formation of a bull rally or if this is another bear rally. And all these three factors are locked in a circle.

Inflation: Falling inflation will cause central banks around the world to go easy on rate hikes.

Rate hikes: If inflation falls and a recession is averted, central banks will limit rate hikes.

Earnings: If central banks limit rate hikes, credit becomes cheaper and people's spending capacity will go up, which bodes well for corporate bottomlines.

Some things to know before closing your credit card

1) While closing your card, consider the age of the card. Closing the oldest card that you hold may harm your credit score, as it can cause your credit history to appear shorter.

2) Before closing your credit card, cancel all auto payments linked to that credit card. If you do not cancel all your auto bills, the establishments requesting payment to that already closed credit card would levy a penalty if the pending money is not paid within the due date.

3) The credit card provider company will only close a credit card if all the dues are cleared. Hence, clear your dues before applying for cancellation or in the next cycle.

4) Also, before closing your card make sure to redeem its benefits. For instance, check for your reward points balance and redeem them before you apply for cancellation of the card.

5) Be sure and make up your mind while opting to close a credit card. Many times, credit card providers give attractive offers especially to you for continuing. If you really want to close your credit card, do not fall for those offers.

6) While applying for cancellation, always follow-up in writing. One should make sure that they have it in writing that they want to close/cancel their credit card account. Also, try to get a written confirmation from the credit card provider, stating that the credit card was closed.

7) Lastly, check your credit report to make sure that the credit card provider reports that the credit card as closed.

Scan & Withdraw: Soon, You May No Longer Need Debit Cards to Draw Cash From ATMs!

Following the historic demonetisation drive in 2016, the pace at which monetary transactions shifted to the digital mode in India was not just swift but also quite astounding!

Today, almost all of us will be quite familiar with the QR (Quick Response) code and have probably used this mode to enable payments at least once.

But did you know that soon, ATMs across the country will no longer be dependent only on debit cards and that you can withdraw money from them through the QR codes generated by your bank?

Yes, you read that right! Just the way you have probably made instant payments using QR codes through payment interfaces, and gateways like UPI, Paytm and Tez, ATMs will also have the same process incorporated in its money withdrawal mechanism soon enough.

At this point, the app will generate the QR code that will be scanned by the teller machine and, lo and behold, you will have your money in hand.

The best part about this new facility is that people can choose the currency notes that they would prefer to withdraw amongst the denominations of ₹100, ₹500 or ₹2,000 as well! Additionally, they can also avail demand drafts from ATMs instead of banks through this facility.

Alongside, upping the digital transaction game is India Post Payments Bank (IPPB), whose new mode of retail banking is not only hassle-free but also quite innovative. By launching ‘QR cards’ that work on the same scan-and-pay mechanism, IPPB intends to do away with the requirement of both ATM and debit cards and PIN-based system for cash and digital transactions.

For security reasons, this system would require either a biometric authentication or fingerprint scan from the customers. Interestingly, this provision also frees people from searching for ATMs.

Instead, all they need to do is reach out to their post office, postman or Gramin Dak Sevak (GDS), who will then send their functionaries to the desired location and give the customer the required amount at the cost of ₹25 per transaction. As for digital transactions, a nominal fee of ₹15 would be charged, 

Even here, the system is same. The QR card will be scanned by the postman or GDS, either at your home, post office or any other IPPB access point using a smartphone app or a QR code scanning machine. This way the risk that comes with forgetting the PIN or misuse of ATM cards can be easily ruled out, as all the postman will only need from you is your fingerprint!

Interestingly, IPPB is also planning bring the unorganised retail sector on board. This means, you would soon be able to purchase groceries at any local kirana shop using a QR card.

Driving licences to be uniform across India

From next July, new driving licences (DLs) and (RCs) issued by all states and union territories will be uniform in look, colour, design and will have the same security features.

The 'smart' DLs and RCs embedded with microchips will have QR codes. They will also be enabled with the near-field communication (NFC) feature, just like that of Metro and ATM cards, so that traffic enforcers with hand-held devices can easily access details stored in the cards.

The new DL will have details of a driver's declaration to donate organs and mention if he/she is driving a specially designed vehicle meant for the physically challenged.

SBI's Basic Savings Bank Deposit Account

State Bank of India (SBI) offers certain accounts where average monthly balance (AMB) rule is not applicable. SBI's basic savings bank deposit (BSBD) account is a type of zero balance savings accounts and does not require customers to maintain any particular minimum average balance. 

This account can be opened by any individual provided he/she has valid KYC (Know Your Customer) documents. SBI's BSBD account is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees, said SBI.

Here are 5 things to know about SBI's basic savings bank deposit (BSBD) account:

1) SBI's basic savings bank deposit (BSBD) account offers the same rate of interest as applicable to savings bank account, according to SBI's website - sbi.co.in. SBI currently offers a rate of interest of 3.5 per cent per annum on deposits up to Rs 1 crore in savings bank accounts.

2) SBI's BSBD account can be opened singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility.

3) The customer cannot have any other savings bank account, if he/she has a basic savings bank deposit account, said SBI.  If the customer already has a savings bank account, the same will have to be closed within 30 days of opening a basic savings bank deposit account.

4) SBI's basic savings bank deposit (BSBD) account comes with a Basic RuPay ATM-cum-debit card, issued free of cost. The account holder can use this card at ATMs or use the withdrawal forms at branches to withdraw cash, as mentioned on SBI's portal.

5) Maximum of 4 withdrawals in a month is allowed in a BSBD account, which includes ATM withdrawals at own and other bank's ATMs and transactions through other mode including RTGS/NEFT/clearing/branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. 

Your Debit/Credit Card Won’t Work After December 31

RBI’s Notification On Existing Debit/Credit Cards

In 2015, RBI had issued a notification under 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), which covered all existing debit and credit card holders. As per the notification, RBI has stated that all debit and credit cards have to be chip based, which are called EMV Debit/Credit Card. Also known as ‘Chip n Pin’ cards.

Which Debit Cards/Credit Cards Needs To Be Changed?

Majority of debit and credit cards being used today are magnetic stripe only cards, which process greater security risks.

In case your existing debit and credit cards are magnetic stripe only cards, then they will be useless after December 31st.

Every magnetic stripe only credit/debit cards need to be changed to EMV Chip based cards before December 31st, 2018.

Has Banks Started Informing Users?

Yes. Since last few days, bank customers must have received SMS from their respective banks, suggesting them to replace their existing magnetic stripe only cards with EMV based cards.

Most of them must have deleted the SMS, assuming it to be spam. But this time, it’s not.

How Much Charge For Replacing The Cards?

Several banks have announced that they will replace the magnetic stripe cards with EMV based cards for free.

All you need to do is, visit your nearest bank branch, and request for the replacement.

What Is So Special About EMV Cards?

EMV or Europay-Mastercard-Visa cards are globally accepted as a standard for authenticating transactions using a chip, which holds the vital information related to your account.

In the current magnetic stripe based cards, the vital information is stored in the single magnetic stripe, which makes its cloning easier. Fraudsters can easily close the magnetic stripe, as the information is static.

However, EMV based cards are not only secured by chip which is dynamic information, but also a password which needs to be entered everytime for authenticating a transaction.

These two major features make EMV based based more secured, and this is the reason RBI wants every card to be EMV.

Earlier, September 1, 2015 was the deadline, which has been extended gradually to December 31, 2018 now.

Does baba Ramdev planning to enter in politics

Does baba Ramdev planning to enter in politics!? It is a big question which only time can give proper answer. 

However recently he told a leading new Chanel that "if geovernment lets me, and gives some relief in tax, I can give petrol diesel to India at Rs 35-40 per litre. Fuel needs to brought under GST and not the 28 per cent rate."

Rising prices of things can cost the Modi government very dearly. He will have to act.

Frustration is a huge problem for the youth. They think they have no opportunities. That's not true. I did not have any godfathers and yet I set this huge enterprise (Patanjali).

I don't run after money. Money runs after me.

People who criticise PM Modi - it is their fundamental right. But he has done good work. Launched the Clean India mission, not allowed any major scam. Yes, some political questions are being raised about the Rafale deal.

I have withdrawn myself politically. I am with all parties and I am with no parties.

I am a scientific sanyasi. We have more than 300 scientists at Patanjali. Put a very high premium on quality of our products.

People who are making the cow a religious animal are wrong. Cow has no religion.

I not saying at all that LGBTQ people should be beaten up with sticks but it is against the order of nature.

My mantra is don't fall sick. If you fall sick, your entire family suffers. Yoga helps your body's structure and character. A person who does yoga stays fit.

Passenger car boom in Indian market.

Cars in India are no longer a luxury as they were almost 10 years ago. A 22 years old person fresh into his/her first job can easily own a car.

He/she might not have the money to buy it outright but he/she has no dearth of financing options at his/her disposal. Therefore, it is no wonder that the Indian passenger vehicle market grew the most in 2017 as compared to any other country in the world.

While the USA market actually shrunk by 11%, Indian market registered a growth of 9.15% as it expanded to 2.98 million units in 2017-18 from 2.73 million units in 2016-17. With the four-wheeler market enjoying this boom, it is no wonder that there are so many car loan options for the customer today.

The processing time and loan disbursal time for these car loans have come down significantly in the recent years. Most of the banks in India take just about 24 to 48 hours to disburse the desired car loan amount. The quality of service has increased significantly too. These banks have also made it easy for customers to access loan information easily through the Internet.

*RULE 72*

*What is Rule 72?*

In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..
Eg: if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.

*INTEREST:* We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal.
Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years.

*INFLATION:*
This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide 72 by 5.5% the answer is 13.09 years.  That is to say, if you have 100k in your kitty today, it would take around 13.09 years for the value of the money to be halved..

Hope it helps you in your day to day investments and other finance related activities.

12 golden rules of investing

Whether you’re an old timer or are planning on buying your first share, these 12 rules will help you learn how to become an investor who is knowledgeable, disciplined and successful.


1. Diverse Portfolio


Your asset allocation should be diverse, and should ideally not be more than 10% in one single investment instrument. So distribute your capital between a variety of funds and stocks, in order to spread out your risks.


2. Don’t Invest if You Don’t Understand


Most people tend to ignore all financial jargon, and invest their money into products of which they do not understand the risks. Understand the terms and conditions clearly before you make an investment.


3. Invest Long Term


In long term investments, compounding interest on your capital makes a big difference to your profits over time. Whereas, playing the market to make quick profits usually doesn’t turn out to be as favourable.


4. Invest Regularly


Investing periodically throughout the year can help you take advantage of the market highs, while keeping you from getting hit too hard by the lows.

5. Stay Updated


The more you keep yourself abreast with the latest happenings, the more knowledge you will have about how to increase the value of your investment portfolio. Read the newspaper, watch the business channels on TV, and browse the internet for the latest news.


6. Beware of Herd Mentality
You will come across people making money rules without having done much research. Don’t follow the herd. Don’t invest in a stock just because all your friends are. Always make an informed decision, before taking any action.


7. Don’t Invest Only to Avoid Tax


Many people invest in products solely because they want to save on taxes. However, in doing so they completely overlook the disadvantages of investing in that sector. Paying taxes is much cheaper than paying unreasonably high fees and charges!


8. Be Disciplined


If you want to be a successful investor,  then you must follow a disciplined investment approach. It is critical to keep the long term picture in mind and don’t let the everyday volatility of the market freak you out.


9. Keep Emotions at Bay


Often investors end up losing money because of their inability to keep their emotions in check. In order to make sound investment decisions, it is important to not let your emotions cloud your financial judgements.


10. Only Invest Your Surplus Funds


It is always better to stay on the safe side, so only invest if and when you have surplus funds. Don’t dump in your retirement money or your children’s college savings into the stock market. Though you’re investing money for profits, remember that these are funds that you cannot afford to lose.


11. Monitor Your Portfolio


Make it a point to frequently compare your portfolio’s performance with a standard benchmark. This will help you detect the funds or stocks that are not doing well, and the ones that are. You can accordingly sell the bad ones, and buy more of the profitable ones.


12. Seek Professional Help


If you don’t have the time or the knowledge to review your profile and make sound investment decisions, then it is important to hire an expert. Take professional help from financial firms who provide professional wealth management services for your investments.


These 12 rules will help you make decisions that will benefit you in the long run. Follow them diligently, and be rest assured that you’re on the path to financial success.

LIC drive to for Growth push and recast policies

The LIC is planning to redesign 12 policies by the end of this year to comply with the revised life insurance guidelines laid down by the IRDA in February.

The country’s largest life insurer is facing the dual challenge of having an adequate number of policies that adhere to the revised guidelines and sufficient trained agents to sell them.

The Insurance Regulatory and Development Authority (IRDA) had initially set a deadline of September 30 to life insurers to come up with policies conforming to the new guidelines. The deadline was later extended to December 31.

The LIC had 50 saleable policies at the beginning of the year. Almost all of them need to be revised following the IRDA directive.

At present, the LIC’s Jeevan Arogya and Jeevan Akshay meet the new guidelines. The challenge that lies before the LIC is to retain the agents on the policy changes within a short time….. with new plans, new conditions… for all those things they have to spend a lot of time and money. The LIC has more than 1.4 lakh agents in the eastern zone, which serves 3.36 crore policyholders through various branches and satellite offices.

The LIC is also looking to strengthen alternative channels such as bancassurance, which involves the sale of policies through banks. Bhargava said the insurer had tied up with 19 banks, of which nine are PSU lenders and the rest gramin and state co-operative 

Sebi frown on WhatsApp

Dealing room activities of brokers, fund managers and other institutional investors have come under regulatory scanner for possible manipulations through use of Web-based social networking apps and messaging platforms such as WhatsApp and BlackBerry Messenger (BBM).

While the use of personal mobile phones are already prohibited inside dealing rooms — where trades are executed on behalf of clients — some brokers and fund managers have been found to be active on social networking and other Web-based groups and messaging platforms while placing orders, sources said.

This has brought to fore significant risks of insider trading, front running and other manipulative activities with regard to key client trade information being shared with outside investors or even among the dealers possibly working as a cartel, they added.

Brokers and fund managers are not allowed to use their personal mobile phones inside dealing rooms to receive orders from clients, while fund houses and brokerage firms are required to store records of all client calls for future inspections by the Securities and Exchange Board of India (Sebi).

Sebi is considering further tightening its norms with regard to dealing room communications, given the fast emergence of social networking and other Web-based messaging platforms. Those likely to be affected include entities dealing in stocks, derivatives and currency trading.

In a global probe into suspected rigging of forex rates, including those involving rupee as well, foreign regulators already suspect the use of intra-bank and Web-based messaging platforms among currency traders. Subsequently, many large global banks have already started clamping down on the use of such platforms inside their dealing rooms and similar action can be expected with regard to Indian markets as well.

The market watchdog is already mulling steps to check risks posed by the use of new-age smartphone messaging services such as BBM and WhatsApp by manipulators to spread sensitive information about their target stocks.

Messages through applications such as WhatsApp and BBM are difficult to monitor, given the multi-level difficulties faced in tracking the source and spread of market-sensitive information through these platforms.