#Aditya Birla Money Share Price

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Which Companies Under Aditya Birla Can You Look Forward to Investing in?

Which Companies Under Aditya Birla Can You Look Forward to Investing in?

The Aditya Birla Group is a household name in India. It maintains a large portfolio of companies listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). As an investor, it can be tough to choose between these companies on a share market app as they all come from a fundamentally strong base and are bound to attract your attention. So which companies under the Aditya Birla…

[vikingscareerstrategists-blog]

Career in Investment Banking

A Career in Investment Banking has got everything when it comes to an interesting career: good income, reputation, strength, anxiety, and fear. However, despite continuous success, a Career in Investment Banking doesn’t necessarily merit experience and hard work. It is a journey full of ups and downs, ups, and downs.

So before you decide to embark on the path of becoming a successful investment banker, first you should find out what Investment Banking is all about.

The main function of an Investment Bank is to operate as an intermediary between the companies, which want to raise the money by issuing securities or bonds and individual or institutional investors who can provide money in exchange for securities. Investment bankers handle every aspect of this process. Investment banks profit from charging rates and fees to offer such programs and other forms of financial and market advice. An Investment Bank is a financial institution offering a variety of activities, mainly:

RAISING CAPITAL SECURITY UNDERWRITING

MERGERS & ACQUISITIONS

SALES & TRADING

RETAIL & COMMERCIAL BANKING

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CAREER PATH IN INVESTMENT BANKING:

A Career in Investment Banking has got hiccups; however, it is full of opportunities. By showcasing hard work and talent, one can climb up the ladder of various roles in the career path of Investment Banking as given below:

ANALYST

ASSOCIATE

VICE PRESIDENT

DIRECTOR

MANAGING DIRECTOR

Suggested subjects in 11th and 12th:

To start with a Career in Investment Banking, subjects related to commerce i.e. Accounts, Economics and Mathematics will be very beneficial for potential Investment Bankers. You have to be good with crunching numbers and analyzing market study & trends, which you can start working on right from class 11th and 12th.

Suggested stream for bachelor’s degree:

Further, to pursue a career in Investment Banking, it is important to strengthen your current knowledge and develop stronger concepts in the domain of finance; you should consider getting a degree in the following:

CA (Chartered Accountant): They work for various sectors in the economy, managing all the finances of an entity and providing financial advice. You can do this either right after completing your 12th or after completing your graduation. But you must start by writing the ICAI exam. To know more about the exam, visit this website, icai.org.

Com (Bachelor in Commerce): This makes you learn about debits, credits, the flow of cash and loss and profit margins, total familiarisation of accounting. You can pursue this degree from any of the good colleges, such as SRCC(www.srcc.edu) , LSR(www.lsr.edu.in ), IPU(www.ipu.ac.in) etc.

BBA (Bachelor in Business Administration): This degree gives sound knowledge of the company’s management with finance as the specialization. You can pursue this degree from any good universities, such as NMIMS(nmims.edu ), Christ University(www.christuniversity.in ), etc.

If you are an Undergraduate, you can directly apply in banks to secure an analyst role in investment banking. If you’re doing well and interested in continuing, and there’s a need, some banks offer direct promotions from analyst to partner rather than asking you to go back and get your MBA done.

Suggested Master’s degree:

MBA (Master in Business Administration) in finance specialization helps in total understanding of the Finances, Investments, and Market Share Portfolios.

In recent days, the demand for business analysts in investment banking is also growing rapidly so Masters in Business Analytics with a finance background in graduation can be a good choice too.

If you are an MBA graduate, you can apply in banks for the purpose of landing into a position of Investment Banking Associate and surely aspire to move up the ranks to Managing Director someday.

Further studies:

A career in Investment Banking doesn’t stop here. To reach a senior position in investment banking early, you can opt for certifications, such as CFA (Chartered Financial Analyst). CFA is highly beneficial for a person pursuing a career in Investment Banking as it is a globally-recognized professional credential in Financial Management & investment offered by CFA Institute. It is also one of the most desirable designations for investment professionals.

Eligibility: So if you wish to go for a CFA certificate, you can apply only after completing your bachelor’s degree and you must have at least 4 years of experience.

If you are eligible for writing this exam, then you can apply for the exam. The CFA exam has three levels: CFA Level 1, CFA Level 2, and CFA Level 3. These exams are conducted in areas related to Economics, Accounting, Security Analysis, and Money Management.

Besides the CFA Exam, the CFA Institute offers two other programs: 1. CIPM (Certificate in Investment Performance Measurement), which has 2 Levels, & 2. Investment Foundations Program. To gain in-depth knowledge about all the programs, visit the website www.cfainstitute.org.

If you pursue any of these programs, you will gain in-depth knowledge of the investment industry which increases their probability of landing into a high paying job in the top companies given below.

Companies hiring Investment Bankers:

A Career in Investment Banking can be very thrilling when you get to work with the top companies such as:

JP Morgan Chase

Goldman Sachs

Citigroup

HSBC Holdings

Aditya Birla Capital

Skills Required:

Well, to get into such top companies is no stroke of luck. The role of an Investment Banker obliges some skills in a candidate. You should have the following skills to be a successful Investment Banker:

Analytical Skills: Employees should have strong analytical, numerical, and spreadsheet skills.

Team Player: Individuals must possess excellent team leadership and teamwork skills.

Interpersonal Skills: Candidates should have excellent communication and interpersonal skills.

Time and Project Management: Investment bankers must be properly able to manage both time and projects well.

Hard Work: The investment banking role requires a lot of commitment, dedication, and high energy.

Confidence: The job demands individuals to have self-confidence and an ability to make difficult decisions timely, usually while under a deadline.

Various Domains in Investment Banking:

A Career in Investing Banking is not limited to securities only; it has multiple domains:

Investment Banks are intermediaries between a Company that wants to sell new securities and the public, who wants to purchase those securities. And an Organization hires an Investment Bank anytime it needs to sell, say, new bonds to get funds to redeem an older bond, or to pay for an acquisition or new project. The Investment Bank then calculates the worth and expense of the company with a view of pricing, buying, and then selling the bonds.

The scope of the Merger and Acquisition(M&A) consulting services provided by Investment Banks typically applies to various facets of purchasing and selling businesses and assets, such as company valuation, negotiating, pricing and deal structuring, as well as procedure and execution. When Investment Banks counsel a buyer (acquirer) on a possible purchase, they often also help conduct due diligence to reduce risk and exposure to an acquiring company and concentrate on the true financial identity of the target. Due diligence essentially includes the compilation, review, and evaluation of the financial records of the aim, the study of the historical and expected financial results, etc.

Investment bankers advise the companies which stocks to buy, which stocks to invest in, at what time to invest in which instrument, and at what price they can yield maximum profits. They also take care of the placement of securities with investors which also called underwriting. Underwriting is the process by which an underwriter introduces the investing public a new security concern into an offer. The underwriter guarantees a certain price to the company (client), who issues the protection (in exchange for a fee) for a certain number of securities.

Career preparation for investment banker:

It’s necessary to have a solid understanding of the fundamentals of accounting. First, under your belt, you should do a good Excel crash course, which will show you the fundamentals of shortcuts, formulas, and functions. Then you should progress with financial modeling classes, which will form the base of your day-to-day IB work.

Future of Industry:

A Career in Investment Banking is expected to stay forever. There would always be a need for investment bankers in the market. The advancement in technology is opening up new possibilities to increase the profitability and efficiency of employees as well. With more and more start-ups coming in and increased competition in the market, Investment Bankers will play an important role in yielding better results.

If you think, you are good with crunching numbers, passionate about mastering the complex accounting and finance skills involved in the role, you look forward to becoming an analyst with intentions of having a positive impact on the company, and have the ability to predict the market trends with reasonable assumptions, seeding the idea of becoming an investment banker might be the right career option for you.

We hope this is going to be helpful if you are planning to pursue a career in investment banking. For more guidance, feel free to connect with us and provide your feedback as well, so that we can also improve in the future.

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[santoshmajumdar]

Best Retail Stocks to Buy in India

Over the last few years, India's retail industry has experienced exponential growth. In addition to smaller tier II and tier III cities, big cities and metro areas can also see this parabolic expansion.

The steady increase in consumer spending, driven by strong economic development, shifting demographics, and the speeding up of urbanization, is what is responsible for the robust expansion in demand. And it's expected to keep growing at a rapid rate in the future.

Retail stocks are typically viewed as riskier and do better when the economy is doing well since the demand for them is correlated with economic growth. There are several alternatives for an investor with reputable corporate houses like Tata’s working via Trent and Titan and Birla’s functioning through Aditya Birla Fashion and Retail.

But before the best retail stocks of India are discussed, let's understand the four Rs of retail that help with evaluating the stocks.

The Four R’s of Retail Investing

Return on Revenues : The first R and the basis of every retail operation is the return on revenues (ROR). It indicates how much net income was generated by those top-line sales. The more money you make per unit sold, the easier and simpler it gets to generate bottom-line net profits.

Return on Total Assets : The return on total assets shows how much operational income is generated from the company's assets. Again, in this case, higher is better. This figure will change based on the type of firm in the retail sector. What matters is how a retailer's return on total assets stacks up against its rivals. A competitor across the street from it could be functioning more effectively if it generates a return on total assets of 10% while the rival does 20%.

Return on Invested Capital : The return on invested capital (ROIC), also known as the "four-wall cash contribution," measures the profit made by each store. The quicker the retailer can increase its total profitability, the faster each store can recover the cash needed to open it.

Return on Capital Employed  : This reveals the effectiveness with which retailers employ their money. It is calculated as capital employed (usually expressed as total assets less current liabilities) divided by profits before interest and taxes (EBIT). However, shareholders' equity plus net debt would be a better measure of capital used.

Best 3 Retail stocks to invest in India

Now, that the performance indicators are discussed, here's a list of best-performing retail stocks in India.

Trent : Trent is a member of the well-known Tata Group. It runs Westside, Landmark, and Star Bazaar, three significant retail brands. Trent has a market value of Rs. 37,658 crores. Its stock trades at about Rs. 1054. The firm is favored by the current market demography. Trent has converted its brands to an online strategy to capitalize on India's growth as one of the largest markets for internet users.

Avenue Supermarts Ltd. : Avenue Supermarts Ltd. has many chains of hypermarket outlets. The business uses the well-known brand "D-mart" to do business. With a market capitalization of Rs. 2,70,309 crores, Avenue Supermarts is a large-cap firm. The current market price of its shares is around Rs. 4,193. India has become one of the greatest markets to target because the company's client base consists of middle-class households. Avenue Supermarts is extremely lucrative, and all internationally recognized rating agencies have assigned it a AAA rating.

Bata India : In India, Bata India is a well-known shoemaker and retailer. When it comes to the Indian market for inexpensive shoes, the firm has a monopoly. Being one of the oldest and most well-known companies in the nation, it also has a tremendous amount of brand value. With an annual sales turnover of Rs. 1707 crores, it sells more than 31 million pairs of shoes annually. The company's market capitalization is Rs. 24,083 crores. It trades for about Rs. 1,867 per retail share. Due to its sizable young adult customer base, rising disposable income, and loosened FDI regulations, India has developed into a desirable market for fashion retailers.

[shlipayadavblog]

Aditya Birla Money allots 1.6 mn non-convertible preference shares

Aditya Birla Money has allotted 16 lakh non-convertible preference shares to its promoter Aditya Birla Capital for Rs 80 crore, the company said on Friday.

The board of directors of Aditya Birla Money has approved and allotted 16,00,000 (4 per cent) non-cumulative non-convertible redeemable preference shares at an issue price of Rs 500 per share, including a premium of Rs 400 per share aggregating to Rs 80 crore, to Aditya Birla Capital, promoter and holding company, it said in a regulatory filing.

"Post said allotment, the paid-up share capital of the company is over Rs 31.63 crore comprising of 5,63,74,998 equity shares of Re 1 each and 26,00,000 preference shares of Rs 100 each," it added.

[myequity2commodity]

Should I apply for the Aditya Birla Sun Life AMC IPO (ABSL AMC IPO)?ADITYA BIRLA SUN LIFE AMC IPO

ADITYA BIRLA SUN LIFE AMC IPO Aditya Birla Sun Life AMC is set up as a joint venture between ABCL and Sun Life AMC. The company managed a total AUM of ₹2,736.43 Bn under mutual fund (excluding domestic FoFs), portfolio management services, offshore and real estate offerings, as of December 31, 2020. The company managed 135 schemes comprising 35 equity, 93 debt, 2 liquid schemes, 5 ETFs, and 6 domestics FoFs as of December 31, 2020. The company’s Monthly average assets under management (MAAUM) from institutional investors was ₹1,412.43 Bn as of December 31, 2020, which was the fourth-largest among its peers, according to CRISIL. The company has automated and digitized several aspects of its operations including in relation to customer onboarding, online payments and other transactions, fund management, dealing, accounting, customer service, data analytics, and other functions. The company has 15 manufacturing facilities around India and one in Sweden. These facilities are state of the art and comprise specialist labs and dedicated inspection units to ensure the quality of the products. ADITYA BIRLA SUN LIFE AMC IPO OBJECTIVE · Achieve the benefits of listing the Equity Shares on the Stock Exchanges. · Carry out the Offer for Sale of up to 38,880,000 Equity Shares by the Selling Shareholders. POSITIVES · Largest Non-bank Affiliated Asset management company of India. · Well recognized and trusted brand with experienced promoters. · Rapidly growing customer base. · Well-Diversified product portfolio and innovative schemes NEGATIVES · The company is not getting any money from this IPO as it is completely OFS · There is very tough competition in this segment FINANCIAL REVIEW · Profit is increasing continuously for the last 3 years · Net Margin is above 40 that’s a very good sign · Overall Financial is attractive ADITYA BIRLA SUN LIFE AMC IPO VALATIONS Face Value = Rs 5 Earnings Per Share (EPS) = Rs 18.27 PE Ratio = 38.04 – 38.97 Return on Net Worth (RONW) = 30.87% Net Asset Value = 59.19 per share VALUATION REVIEW: · Valuation is slightly expensive ADITYA BIRLA SUN LIFE AMC IPO – SWOT ANALYSIS Strengths · Reputation: One of the major strengths of Aditya Birla Sun Life AMC is its market reputation. Being in this business for more than 20 years, the company has delivered consistent returns. This brand image creates a base for the company to scale further. · Strong distribution channel: The company has a vast distribution channel that helps it to cater to a larger demographic. · Strong investment team: The investment team behind the scene led by experienced fund managers rely on research and analysis to ensure expected returns. Weaknesses · Inconsistent growth in revenue: The revenue growth for ABSL AMC has been inconsistent at times, which can be a concern. · Heavy reliance on distributors: The operation relies heavily on distributors, which can sometimes be an issue. Opportunities · Low industry penetration: Aditya Birla Sun Life AMC operates in an underpenetrated business segment with considerable potential. Threats · Tough competition: Aditya Birla Sun Life is working in a segment where its rivals are already listed and hold a significant market share. Grey Market Premium of ADITYA BIRLA SUN LIFE AMC IPO Day by Day Grey market premium as on 26-09-2021 = Rs.45/Share Grey market premium as on 26-09-2021 = Rs.40/Share Grey market premium as on 25-09-2021 = Rs.40/Share Grey market premium as on 24-09-2021 = Rs.40/Share Grey market premium as on 23-09-2021 = Rs.40/Share Disclaimer: · IPO Grey Market Premium (GMP) mention is valid for the specific date as mentioned in the header. · We are not buying and selling IPO forms on IPO Grey Market. · Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies. FINAL TAKEAWAY · APPLY FOR BIG LISTING GAINS AND LONG TERM EXPERT OPINION · Updated Soon These are simple and effective steps that increase your IPO allotment chances. Check our page on how to improve IPO allotment

chances. I have a lot of other things that also need to be considered and those are something that I will cover in my next post. Happy investing! Equity2Commodity

[bivocalbirds]

How to invest money in your 20s in India

1. Mutual Funds

Mutual Funds are money that is pooled together by many investors and managed professionally by a fund manager. It's a trust that collects money on behalf of investors who share a common investment goal. The money can be invested in equities or bonds, as well as other financial instruments. Each investor owns a percentage of the fund's total assets.

Mutual funds can be a great investment option for early-stage investors, as they are easy and affordable to research and purchase. Most mutual funds require a minimum lump-sum investment of Rs. 1000 to Rs. Investors can invest as little as Rs. These funds allow investors to start a SIP for as low as Rs.100 each month. High-risk Mutual funds can offer annualized returns up to 30-35%. Section 80C allows mutual funds to be exempt from tax.

These are the top Mutual Funds that you can invest in.

ICICI Prudential Focused Bluechip Equity Fund

Aditya Birla Sun Life Small & Midcap Fund

Tata Equity PE Fund

HDFC Monthly Income Plan- MTP

L&T Tax Advantage Fund

2. Life Insurance Policies

The younger and more healthy you are, the less expensive life insurance will be. Because you get older, your chances of developing health problems that can increase the cost or make you uninsurable are higher. Life insurance policies are essential in your 20s.

Life insurance can be a smart financial decision. It provides a safety net for your loved one and beneficiaries in the event of your death. Your family might be dependent on your income, and you may have large educational loan debts. Your premium will not change if you purchase a policy for more than 30 years when you are still in your 20s. If you wait 15 years, your premium will increase. It is a good idea to buy insurance policies as soon as possible. You should have the following insurance plans in your portfolio:

Life insurance

Health Insurance

Personal accident/Disability coverage

Financial experts recommend against investing in Life Insurance policies as they have had poor returns.

3. Shares/ETFs

Simply put, investing in shares is like investing in businesses. You buy shares in a company and invest your money in its business. In return, the company pays dividends. Your investment in the company will increase as the company performs well.

Your 20s is a great age to learn about the share market and how you can invest in shares of different companies. Although the stock market can be volatile, it is crucial to identify the best companies to invest in. This is done by performing fundamental analysis as well as technical analysis of the company’s share price over time.

The right company can be very profitable over the long-term if you invest in it. For example, if 1 Lakh INR was invested in HAVELLS shares back in 2005, it would have grown 100x to 1 Crore by 2021. This is why it's important to invest in the right stocks in order to get more returns.

ETFs, also known as Exchange Traded Funds, are security products that track an Index sector or commodity. However, they can be bought or sold on the same stock exchange as regular stocks. NIFTY 50, a benchmark Indian stock exchange index, is the weighted average 50 largest Indian companies that are listed on the National Stock Exchange. These indexes can be invested in just like shares of any other company. Indexes are used to measure the performance of a particular sector, commodity, or asset and therefore are less risky than investing in shares.

4. Purchasing a House/ Investing in Real Estate

Buying a house is probably the biggest life goal for Indians between the ages group 22 to 45. A 2019 survey by Aspiration Index found that Indians aged 22 to 45 consider buying a house and saving money for their children's education to be the top long-term goals. A house is a good investment choice. A home is the most tangible asset that you can invest in, given India's obsession with tangible assets. Owning a home has the obvious financial advantage of price appreciation, which builds home equity. A home purchase can also bring tax benefits. Section 24 of the I-T Act allows interest deductions up to Rs 2 Lakh, which includes 1/5th interest earned during construction.

Although buying a home in your early years of working life can seem overwhelming, as you may not have sufficient capital to make a downpayment on a house during this time, it is possible to save enough money in your late 20s and start saving up for the down payment so that you can consider purchasing a house.

5. Fixed Deposits (FDs) and Recurring Deposits

Fixed deposits are a great way to increase savings while maintaining maximum safety. You can make a lump sum deposit with your bank/financier, and then choose the tenure that suits you best. The tenure ends and the deposit earns interest for the duration of the term at the rate you have set.

Like an emergency fund, it is always a good idea to have a short-term savings plan. You can keep an RD for 6 months to one year, which will ensure you have enough cash on hand. Many banks offer interest rates between 6% and 7%.

If you are looking for low-risk investment options that offer both security and liquidity, FDs or RDs can be a good option. You can begin investing in these instruments as early as your 20s.

6. Investing in Precious metals – Gold/Silver

India's people love to invest in precious metals such as Gold and Silver because they are a sought-after commodity for centuries. The rare and highly liquid asset of gold is unique. It is used to hedge currency risk and protect against inflation losses. Gold is a better investment than Silver because Silver prices are constantly under the shadow of the Gold market.

Let's compare the prices of 10 grams of Gold back in 2000 and 2021 to put the situation in perspective. The price for 10g of 24K gold in 2000 was as low as 4400 INR. In 2021, the price is almost 50,000 INR. This represents a gain of 1036% over 21 years (CAGR 12.27%). You can see that Gold is a smarter investment option than fixed deposits in Banks (7%) and low-risk mutual funds (8-10%).

If you are looking for an investment that is safe, liquid and offers decent annual returns, then Gold can be considered. Investing in Gold comes with storage risks and theft risks. Therefore, one should be careful and plan for safety and storage before investing.

7. PPFs

The central government has created the PPFs, a long-term retirement savings scheme that currently offers 7.6% interest per year. It is best to start investing at the beginning of FY (beginning at Rs. To reap maximum benefits, you should invest between 500 and 1.5 lakhs. It can be extended in five-year increments after maturity. All interest, capital, and proceeds are exempt from tax (also known as EEE benefits).

If you don't want to take greater risks with your savings, but still wish to invest for tax benefits and average returns, PPFs might be a good option.

8. Cryptocurrencies

Cryptocurrencies are a popular, but risky, investment option that is gaining popularity. Cryptocurrencies can offer higher returns over a shorter period of time. BITCOIN is becoming a popular buzzword and investors are increasingly interested in investing in it.

Cryptocurrencies are digital currencies that use cryptography to protect their privacy and security. Blockchain technology is the basis of security. It is simply a shared digital ledger that is linked in blocks and then made available to the public in a shared network. Due to the complexity of interbank transactions globally, exchange rates must be considered. This can lead to higher transaction costs. Because they accept the same rate globally, cryptocurrencies solve the problem and allow transactions to be completed much quicker than the existing process. Cryptocurrencies will be used to make transactions quicker and easier for larger businesses as well as people who need to travel frequently to other countries.

It is important to learn about the various projects and understand the importance of cryptocurrency before you decide to invest. Bitcoin is the most widely used cryptocurrency and has the highest market capitalization. Ethereum and Binance Coin are close behind.

The 20-year-olds are the most risk-averse and have some money after other investments. Keep in mind that cryptocurrency prices can fluctuate and one should only put money that they are willing to risk in the event that things don't go according to plan.

[seedfinance]

Zomato’s express delivery

Well that was quick. Zomato, which launched an Indian startup unicorn’s first domestic IPO last week, will be listed on India’s stock exchanges starting tomorrow.

Also in this letter:

🦄 BlackBuck is going to be a unicorn 🏦 Digital rupee “in phases”, says RBI 🚨 CCI says Amazon was hiding facts in the Future Group deal

Zomato will go public tomorrow

July 23rd will mark a historic day for India’s startup ecosystem as Zomato food delivery platform makes its highly anticipated debut on the domestic stock exchanges.

The Gurugram-based firm originally planned to record on July 27, but has now postponed it until tomorrow, ET reported Wednesday evening.

More than 40 times oversubscribed: Last week, Zomato launched the first domestic IPO of an Indian startup unicorn. The issue was subscribed 40.38 times and generated demand of Rs 2.13 lakh crore, the highest for a domestic IPO in 11 years and the third highest in the history of the Indian capital market.

The IPO, which opened on July 14 and completed on July 16, also set a record for anchor investors and attracted the second highest number of registrations of all time. The allocation of the IPO share allocation to investors took place today (June 22nd).

IPO offer: The issue included fresh equity valued at Rs 9,000 billion and an Selling Offer (OFS) valued at Rs 375 billion from existing investor Info Edge (India). At the high end of the price range, the company will have a market cap of nearly Rs 64,500 billion. Prior to going public, Zomato had raised Rs 4.197 billion from 186 anchor investors by allocating 552.2 million shares at Rs 76 each.

India’s startup ecosystem has been closely watching Zomato’s IPO performance as it could set the tone for a number of other companies including Paytm, Policybazaar and Mobikwik.

Read our in-depth look at Zomato’s IPO, what it means for other startups and the company’s path so far.

BlackBuck goes to the unicorn club

The online trucking platform BlackBuck became the newest member of the Indian startup unicorn club.

Push the news: BlackBuck raised $ 67 million in a round led by Silicon Valley-based venture fund Tribe Capital, IFC Emerging Asia Fund, and VEF, which valued the startup at over $ 1 billion. The company was previously valued at approximately $ 850 million on its last fundraising in 2019.

BlackBuck has increased nearly $ 300 million since it was founded through a mixture of equity and debt financing. Investors also include Accel, Apoletto Asia, B Capital, Flipkart and Goldman Sachs.

Where should the money go? The company will use the money to expand its customer base and introduce new services. Rajesh Yabaji, co-founder and CEO of BlackBuck, said the company will invest heavily in product and data science capabilities to achieve better freight matching efficiency for the Indian trucking ecosystem. The startup will also be scaling its financial services and insurance offerings through partnerships.

This funding comes as a company sees a shift in demandwith most of it no longer coming from large corporations but from small businesses, brokers, and large corporations. “In the past two years, digital adoption has increased … we’ve seen 20x growth on the supply side and 10x growth in demand,” said Yabaji.

big picture: It’s been a record year for domestic startups, raising $ 12.1 billion from venture capitalists and private equity firms in just the first six months. India’s startups cost $ 11 billion in all of 2020, according to Venture Intelligence.

The continued flow of cash amid high valuations has also helped catapult a record number of startups into the Unicorn club.

Tweet of the day

RBI says the digital rupee will be rolled out gradually

The Reserve Bank of India (RBI) is working on a “phased introduction” of the Central Bank of India’s (CBDC) digital currency and a pilot project to test a general purpose digital currency is possible in the near future, RBI Deputy Governor T Rabi Shankar said on Thursday.

What is a CBDC? CBDC is a form of virtual currency issued by a central bank as an alternative to physical currency. In contrast to cryptocurrencies such as Bitcoin and Ethereum, CBDCs are covered by the state reserves of nation states and are therefore not subject to the same volatility.

Enable legal framework: In order to launch India’s CBDC, RBI is reviewing several legal frameworks, including amendments to several sections of the RBI Act, the Coin Act 2011, the Foreign Exchange Administration Act, and the Information and Technology Act.

What are the advantages? Shankar said a CBDC would reduce reliance on cash, lower the cost of printing cash, and provide a more robust settlement mechanism. Another key benefit is the elimination of “time zone differences” in foreign exchange transactions, which could pave the way for a cheaper and smoother international settlement system.

meanwhileAt the other end of the world, Tesla CEO Elon Musk said on Wednesday that they will likely accept Bitcoin as a payment option again after carefully considering the amount of renewable energy used to mine the currency.

Musk noticed that too he and his space company SpaceX also own Bitcoinapart from Tesla. Musk also owns Ethereum and Dogecoin in his personal capacity.

Catch up quickly: Tesla bought about $ 1.5 billion in Bitcoin in February and announced it would accept the digital coin as a payment option. But in May, Musk announced on Twitter that Tesla would end this initiative, citing concerns about the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions.”

That move had triggered a bitcoin route, with the cryptocurrency falling nearly 17% within hours of the tweet. It also sparked allegations of “price manipulation,” which Musk denied last month.

On Wednesday, Musk said, “I could pump, but I’m not caving in … I definitely don’t believe in pushing the price up and selling or anything like that. I want to see Bitcoin successful. “

CCI accuses Amazon of hiding facts about the Future Group deal

In a notice to Amazon, India’s competition regulator accused the company of hiding facts and providing false information while seeking approval to invest in a Future Group unit, Reuters reports.

The deal: Amazon had agreed to acquire a 49% stake in Future Coupons, a promoter of Future Retail, for around 1,500 billion rupees in August 2019. The firm is currently involved in a lawsuit with Future Group and Reliance Industries after the latter took over Future Group’s retail and wholesale business.

Amazon has argued in court that the terms of its 2019 deal prevent Future Group from selling Future Retail to Reliance.

CCI notice: The Competition Commission of India (CCI) announced in a June 4 announcement that the US e-commerce major had failed to disclose its strategic interest in Future Retail when it applied for approval for the 2019 deal. “The representations and behavior of Amazon before the Commission represent false information, false information and the suppression and / and concealment of essential facts,” it says in the communication.

CCI has now asked Amazon why it shouldn’t punish the company.

What is Amazon saying? Amazon confirmed to Reuters that it has received the notice and will extend its full cooperation to the CCI. The company said it was “confident that we can address the concerns of the Chamber of Commerce”.

What’s next? If CCI isn’t happy with Amazon’s response, it could fine the company and also review its deal with the Future Group, Vaibhav Choukse, partner at J Sagar Associates, told Reuters.

Large retailers are seeing a 2- to 9-fold increase in online sales

India’s largest brick and mortar retailers are seeing a huge shift in consumer behavior as more people shop online amid the pandemic.

What’s happening? Reliance Retail, DMart, Croma, Aditya Birla Fashion & Retail and Spencer’s Retail increased their online sales by 2 to 9-fold in 2020-21, although many of their stores either remained closed due to Covid-19 restrictions or had restricted their operations. This is based on disclosures made in their annual reports and presentations to investors.

For India’s largest retailer Trust retail, accounted for the e-commerce business about 10% of sales by the end of FY21, down from almost zero last year. The growth was led by the company’s own platforms Jiomart and Ajio.com as well as acquired startups such as Netmeds, Urban Ladder and Zivame.

Devendra Chawla, managing director of Spencers Retail and Nature’s Basket, said online sales accounted for up to 30-40% of their total sales during the peak months of the lockdown.

Today’s ETtech Top 5 was written by Vikas SN in Bengaluru and published by Zaheer Merchant in Mumbai.

source https://seedfinance.net/2021/07/22/zomatos-express-delivery/

[moneycafe]

HCL Tech share price: Stocks in the news: HCL Tech, SAIL, PVR, HFCL, SpiceJet and Dixon Tech

HCL Tech share price: Stocks in the news: HCL Tech, SAIL, PVR, HFCL, SpiceJet and Dixon Tech

Nifty futures on the Singapore Exchange traded 40 points, or 0.27 per cent, lower at 14,583, in signs that Dalal Street was headed for a negative start on Friday. Here are a few stocks which may buzz the most in today’s trade: HCL Tech, PVR: HCL Tech, PVR, Shoppers Stop, L&T Finance Holdings, Hathway Cable and Aditya Birla Money are some of the companies which will disclose their December quarter…

[wowhealthfitness20]

aditya birla-flipkart deal: Flipkart to buy 7.8% stake in ABFRL for Rs 1,500 crore; preferential allotment price set at Rs 205

aditya birla-flipkart deal: Flipkart to buy 7.8% stake in ABFRL for Rs 1,500 crore; preferential allotment price set at Rs 205

NEW DELHI: Aditya Birla Fashion and Retail (ABFRL) would raise Rs 1,500 crore from Flipkart, the company informed stock exchanges on Friday. The money would be raised through preferential allotmentof shares to Flipkart, who will own 7.8 per cent stake in ABFRL. The issue price of the preferential allottment is set at Rs 205, which is 33.63 per cent higher than Thursday’s closing price of Rs…

[tradeniveshinvestmentadvisor]

Why Do These Big Investors Want To Buy A Stake In Yes Bank?

Trade Nivesh  Many big funds including England hedge fund Marshall Wes, Discovery Capital, Carlyle and Farallon want to buy a stake in Yes Bank. According to sources related to the case, Yes Bank wants to raise $ 1.3 billion of new capital.

Aditya Birla Mutual Fund and HDFC Mutual Fund are also keen to buy stakes in Yes Bank. On the condition of anonymity, the sources said that this bank is engaged in the exercise to get rid of the problem of subordinated debt and improve on the corporate governance front.

In addition to the interest of these portfolio investors, a family in North America is also ready to buy a $ 1.2 billion stake in Yes Bank. SSG Capital has also expressed a desire to buy a stake in Yes Bank.

In such a situation, Yes Bank CEO Ravneet Gill has the chance to negotiate on better terms and reach the final result. However, in this regard Yes Bank and potential investors have not opened their cards yet.

Last week, Gill said, "After hard work, we've had strong bids from eight top global private equity firms and some domestic firms. If you look at these eight bids, they reach $ 1.5 billion."

Yes Bank is trying to overcome the difficulties led by Gill. The strong growth in submerged debt and management changes shaken investor confidence. This bank gave loans to many disputed and troubled companies, which increased its problem.

The bank has given loans to companies like CG Power and Cox and Kings. Also, the Reserve Bank had refused to give another term to its former CEO Rana Kapoor. After this, Kapoor regularly sold bank shares. Gill was made CEO for three years in January.

This bank is considering giving a stake of $ 20 to $ 40 crore to all these potential investors. Apart from this, a large stake can be given to the family of North America. Yes Bank may also include some investors in the board.

In a chat with ET last week, Gill said that he hopes the bank will complete the capitalization by the end of this year. On Monday, billionaire investor Rakesh Jhunjhunwala bought 1.29 crore shares of this bank at a price of Rs 67.1 per share.

Gill said, "My guess is that by the end of this year, the capital raising will be over. We want to have good partners with us. We want partners who will strengthen the business and who can make the Yes Bank image a Please help install again. "

Yes Bank had a net loss of Rs 600 crore in the September quarter. The bank's bad loans rose to 7.4 per cent, from 5 per cent in the June quarter. In August, Yes Bank raised money by selling shares worth $ 27.5 million to some domestic investors, which improved its capital adequacy ratio.

[mylucky137276]

Vodafone Idea's Rs 25,000 crore rights issue opens. Is it worth your money?

Vodafone Idea’s Rs 25,000 crore rights issue opened on Wednesday. The country's largest telecom firm is offering 2,000 crore shares at a price of Rs 12.50 apiece. The entitlement ratio of the issue, which will close on April 24, has been fixed at 87 rights shares for every 38 currently held by shareholders. On Tuesday, the stock settled at Rs 16.90 apiece on BSE.

By definition, a rights issue is an invitation to the existing shareholders of the company to buy additional shares at a discounted price in proportion to their holding of old shares. In this offering, the companies grant shareholders the right, but not the obligation, to buy new shares at a discount to the current market price.

The Promoter shareholders, Vodafone Group and Aditya Birla Group have confirmed their participation of up to Rs 11,000 crore and up to Rs 7,250 crore, respectively in the rights issue, the company said in its press release.

Most analysts advise existing shareholders to subscribe to the rights issue, as they feel it is attractively priced. That apart, things may be slowly turning for the sector and the issue provides a good opportunity to those who wish to stay in the sector for the long term.

[toldnews-blog]

New Post has been published on https://toldnews.com/business/finance/mutual-funds-zee-group-exposure-hits-investors/

Mutual funds' Zee group exposure hits investors

BENGALURU/MUMBAI: Financial troubles at the Zee (Essel) group have started to hurt investors in fixed maturity plans (FMPs) of leading mutual fund (MF) houses. On Monday, Kotak MF told its investors that it would not be able to pay those who are invested in FMPs, which matured this week, because of exposure to debt papers issued by companies belonging to the Zee group. HDFC MF, which also has exposure to Zee group’s debt papers, told investors in some of its FMPs that it was extending the date of redemption by a little over a year to April 29, 2020.

As the name suggests, an FMP is an MF scheme that indicates a fixed return to investors after a pre-set time period, which could vary from a few months to a few years. FMPs of more than three years also offer lucrative post-tax returns and hence a large number of investors use these schemes as a substitute for bank fixed deposits. The last time FMPs had faced a problem in paying back investors at maturity was about a decade ago, towards the end of the global financial crisis.

According to a report by domestic ratings and analytics major ICRA, as of end-February, the MF industry’s total exposure to Zee group’s debt papers was nearly Rs 7,000 crore. Of the top fund houses, Aditya Birla Sun Life MF’s exposure was Rs 2,588 crore, followed by HDFC MF (Rs 1,152 crore), Franklin Templeton MF (Rs 994 crore), ICICI Prudential MF (Rs 782 crore), Reliance MF (Rs 430 crore), Kotak Mahindra MF (Rs 372 crore), SBI MF (Rs 371 crore) and Baroda MF (Rs 284 crore).

On Monday, Kotak MF told some of its FMP investors that it will not be able to pay them full maturity amount since it has Zee group’s debt papers. Kotak’s FMP series 183 matured on April 10, which has a Rs 108-crore exposure to the Zee group’s debt, while the fund house’s FMP series 127, which matured on April 8, had a Rs 81-crore exposure. Currently, all the fund houses are working with Zee group officials to resolve the situation and protect the interest of MF investors.

According to industry estimates, about 55 FMPs have between 10% and 20% of their total funds invested in Zee group’s debt papers. Of these, about 40 FMPs are set to mature between now and June.

On its part, HDFC MF sent out a letter to investors that it was extending redemption date for its series 35 FMP, which is due for maturity on April 15. “The purpose of rollover/ extension is due to current interest rate scenario and portfolio positioning, the yields prevailing in the short maturity bucket present an option for investors to lock in their investments at current prevailing yields,” HDFC MF said in a notice.

A spokesperson for Kotak MF said that the fund house has taken personal guarantee of Subhash Chandra, the main promoter of the Zee group, over and above the shares of Zee group companies that the promoters had pledged for better security of its debt papers. “We have also secured upside sharing on a graded basis on stake-sale in Zee over and above the coupon rate of existing debentures. We are better secured and better rewarded than before by allowing more time to Essel group promoters to repay our debt,” the spokesperson said.

The Zee group said in a statement that it had entered into an arrangement with the lenders for a resolution deadline of September 2019. The group is working towards the same, which in turn had also saved losses to public. The Zee group reiterated that its lenders have shown immense trust and confidence, keeping the intrinsic value and core fundamentals of Zee Entertainment Enterprises as a company in mind.

The spokesperson from Kotak group also said that it was in the interest of financial prudence that it did not sell Zee shares in the open market. “We didn’t exercise the right to sell shares to recover our dues on January 25, 2019. A liquidation of about Rs 200 crore worth of Zee shares resulted in a price drop of more than 30%. In the collective wisdom of over 40 lenders who have lent more than Rs 13,000 crore, it was decided that if all of us exercised the option of selling the shares, the likely recovery of our dues will be far lower than actual dues. By panic-selling, we will convert notional loss to actual loss. All the lenders have collectively decided to give time to Essel group promoters for making an orderly exit of their assets to repay our debt,” the spokesperson said.

Investors, meanwhile, have expressed concerns. Financial adviser Manoj Nagpal took to Twitter to state, “FMPs have a maturity date and hence if it cannot liquidate their portfolio on the maturity date, they don’t have money to pay.” Nagpal expressed hope that investors would get paid. “Mutual funds will pay back — if and as much — when they get their money back. As of now, it is a delay but it is contingent if (Zee group) promoter pays back on resolution of problems. Ideally (and theoretically), the MF should have invoked pledge of Zee shares and returned investor’s money. But they have an unwritten understanding with promoter that they will not do this and give him six months,” he said.

Some people from the MF industry described the steps taken by the fund houses as a kind of “course correction” due to developments that were not under their control. “The rollovers and extensions are being thought about with the expectation that the Essel group would be able to pay back the fund houses and, in turn, investors will be able to realise the value of the investments that they were expecting when they had invested initially,” said an official with a top fund house. “If they rush to redeem, they may have to incur some losses and not realise the full value of their investments,” the official said.

[boldlykeenblizzard]

health insurance: Do you really need family health insurance of Rs 1 crore?

A few years ago, general insurance companies started offering large-sized family floater health insurance policies (of more than Rs 1 crore), aimed primarily at high net worth individuals (HNIs). However, nowadays insurers have started selling these big-ticket insurance covers to middle income people as well.

For many, taking such a big-ticket health insurance policy ends up being a financial burden. So, is it worth buying a family floater health insurance cover of Rs 1 crore or more?

How much does a Rs 1 crore health insurance cover cost? Health insurance policies with a sum insured amount of Rs 1 crore can provide sufficient coverage to a family of 4 members (assuming Male: 36, Female:35, Child 1: 4 years, Child 2: 1 year), but at a premium which might not be affordable for a middle-class family.

Amol Joshi, Founder, Plan Rupee Investment Services, said, “Having a higher cover is good but also be mindful of the fact that it costs money (premium), especially when you have a set household budget and your pocket doesn’t allow you to make discretionary expenses beyond a certain limit.”

Here are the premium rates of family floater health insurance policies with higher sum insured offered by insurers. These policies do not have any top-up plans in the combination. (Male: 36, Female:35, Child 1: 4 years, Child 2: 1 year)

Insurance Company Plan Name Sum Insured Premium (Annually in Rs) Max Bupa Health Insurance Health Companion 1 Cr 51,565 Star Health Insurance Star Comprehensive 1 Cr 51,572 Aditya Birla Health Insurance Active Assure-Diamond 1 Cr 62,036 Manipal Cigna Health Insurance ProHealth-Premier 1 Cr 73,357

As on March 16, 2020| Source: Policybazaar.com

Naval Goel, CEO, PolicyX.com said that public sector insurers do not offer a sum insured of Rs 1 crore under a family floater insurance plan. The maximum sum assured that you can get is Rs 50 lakh from National Health Insurance Company and the premium for the same is around Rs 63, 678 + GST yearly (assuming Male: 36, Female:35, Child 1: 4 years, Child 2: 1 year). “Rest of the PSU insurers offer family floater plan with a maximum sum insured of Rs 15 lakh- 25 lakh only. The premium of the same would vary from person to person,” Goel added.

However, the income level of a person generally increases as his/her age increases, but one must remember that the premium rates for health insurance plans also increase with age.

Adhil Shetty, CEO, BankBazaar.com said, “Getting a health insurance cover of Rs 1 crore may not be possible for a common man. Therefore, while buying any form of family floater health insurance, compare your options. Look at the premiums, exclusions, inclusions, waiting periods, sub-limits etc. Don’t sign on the dotted line before you have understood the scenarios in which the insurance policy will help you.”

Do you really need a Rs 1 crore health cover? Many financial planners believe that Rs 1 crore is probably too much health insurance coverage.

Suresh Sadagopan, Founder, Ladder7 Financial Advisories said, “We need to be realistic about how much cover is needed and take that much cover only. Don’t forget for such a high health insurance cover, the premium will be huge. Hence, you should only take that much insurance which will cover most of the risks at a reasonable cost. We need to be practical and learn to live with some amount of risk,” he said.

Hence, the family floater health insurance coverage amount should be adequate based on the place where you stay (cost of medical care depends on this to some extent), medical expenses that one may incur in case of hospitalisation, and so on.

Harsh Gahlaut, CEO, FinEdge said, “The ‘right’ cover is whatever makes you feel secure and comfortable, subject to a bare minimum floor of around Rs 10-15 lakh for a typical family of 3-4 people. Those living in metro cities with higher healthcare costs may opt for a number that is 25-30 per cent higher.”

Understand the math when buying high health insurance cover Note that family floater health insurance pricing is nonlinear, which sharply tapers off in terms of incremental cost per additional rupee of the sum insured, once you go past the Rs 15-20 lakh sum insured mark.

Gahlaut said, “A Rs 1 crore health insurance cover does seem like a bit of an excess coverage. However, having said that, there is no fixed formula for one’s ‘optimal’ health insurance coverage. Given the underlying math, the cost of a Rs 1 crore health insurance cover will, in most cases, be just 25 per cent or so higher than the cost of a Rs 50 lakh health insurance cover, and probably around twice the cost of a Rs 25 lakh health insurance cover. So, if you are aiming for a Rs 50 lakh health insurance cover and you feel that a Rs 1 crore health insurance cover will help you sleep better at night, it certainly makes financial sense to go for it.”

Though it appears that a Rs 1 crore health insurance cover might be an overkill for most people, there can be at least one reason to go for a higher sum insured.

Reasons to go for a higher health cover Nowadays, the advancement in medical technology has made it possible to cure diseases that were once considered incurable. However, at the same time, thanks to medical inflation, the cost of treatment is also sky rocketing.

Therefore, in a situation like this, if you do not have adequate health insurance cover, then arranging huge sums of money for getting the right treatment can become a big issue for you.

Amit Chhabra, Business Head – Health Insurance, Policybazaar.com said, “The medical inflation in 2018-19 increased at the rate of over 50 per cent, i.e., from 4.39 per cent in 2017-18 to 7.14 per cent.”

Apart from this, one must also know that a family floater health insurance policy extends the coverage to the entire family, rather than just an individual, where every family member gets benefits under the same sum insured.

Shetty said, “You can go for higher health insurance cover primarily because your family shares the sum insured of your family floater health insurance policy. So, in the case of multiple claims in the same year, higher health insurance cover with an adequate sum insured would never fall short.”

What should a policyholder do? Healthcare expenses are rising exponentially. A regular-sized coverage, for instance, a health insurance family floater cover with a sum insured of Rs 5-10 lakh may prove grossly inadequate once the illness strikes. Hence, having an inadequate cover can put families at financial risk as well. However, one should go for higher family floater health insurance cover only after assessing their needs. Take the help of a financial adviser before availing such high ticket-size health insurance policy.

Joshi said, “There is an argument that as time goes by the treatment costs will go up, this is true, but for that purpose, periodically, one may opt for additional cover or top-up or super top-up covers,” he said.

Therefore, if you think that your current health insurance policy seems to be inadequate, you can opt a base health insurance policy and a super top-up plan from the insurer of your choice.

Rakesh Goyal, Director, Probus Insurance said, “There are health insurance plans offered by a few insurers that have an in-built option of having Rs 1 crore sum insured.”

Having an in-built option in health insurance means the plan is not just a basic health plan, it is a combination of a base health plan and super top-up plan to have a total sum insured of Rs 1 crore. A customer doesn’t have to opt super top-up plan additionally to increase the sum insured. Such plans offer a higher sum insured at a reasonable rate, because it has an additional feature of a super top-up plan along with a base health plan.

However, Goyal further said, “Since all insurers do not yet provide in-built health insurance policies offering Rs 1 crore cover, you can even opt for a combination of a base plan and super top-up plan from the insurer of your choice. You can simply buy a base health insurance policy, having a cover of Rs 10 lakh and opt for a super top-up plan having a cover of Rs 90 lakh and Rs 10 lakh as the deductible amount.”

Also read: Should you buy health insurance with higher sum insured or add top-up policy?

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The post health insurance: Do you really need family health insurance of Rs 1 crore? appeared first on Investium.

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[ainvestops]

health insurance: Do you really need family health insurance of Rs 1 crore?

A few years ago, general insurance companies started offering large-sized family floater health insurance policies (of more than Rs 1 crore), aimed primarily at high net worth individuals (HNIs). However, nowadays insurers have started selling these big-ticket insurance covers to middle income people as well.

For many, taking such a big-ticket health insurance policy ends up being a financial burden. So, is it worth buying a family floater health insurance cover of Rs 1 crore or more?

How much does a Rs 1 crore health insurance cover cost? Health insurance policies with a sum insured amount of Rs 1 crore can provide sufficient coverage to a family of 4 members (assuming Male: 36, Female:35, Child 1: 4 years, Child 2: 1 year), but at a premium which might not be affordable for a middle-class family.

Amol Joshi, Founder, Plan Rupee Investment Services, said, “Having a higher cover is good but also be mindful of the fact that it costs money (premium), especially when you have a set household budget and your pocket doesn’t allow you to make discretionary expenses beyond a certain limit.”

Here are the premium rates of family floater health insurance policies with higher sum insured offered by insurers. These policies do not have any top-up plans in the combination. (Male: 36, Female:35, Child 1: 4 years, Child 2: 1 year)

Insurance Company Plan Name Sum Insured Premium (Annually in Rs) Max Bupa Health Insurance Health Companion 1 Cr 51,565 Star Health Insurance Star Comprehensive 1 Cr 51,572 Aditya Birla Health Insurance Active Assure-Diamond 1 Cr 62,036 Manipal Cigna Health Insurance ProHealth-Premier 1 Cr 73,357

As on March 16, 2020| Source: Policybazaar.com

Naval Goel, CEO, PolicyX.com said that public sector insurers do not offer a sum insured of Rs 1 crore under a family floater insurance plan. The maximum sum assured that you can get is Rs 50 lakh from National Health Insurance Company and the premium for the same is around Rs 63, 678 + GST yearly (assuming Male: 36, Female:35, Child 1: 4 years, Child 2: 1 year). “Rest of the PSU insurers offer family floater plan with a maximum sum insured of Rs 15 lakh- 25 lakh only. The premium of the same would vary from person to person,” Goel added.

However, the income level of a person generally increases as his/her age increases, but one must remember that the premium rates for health insurance plans also increase with age.

Adhil Shetty, CEO, BankBazaar.com said, “Getting a health insurance cover of Rs 1 crore may not be possible for a common man. Therefore, while buying any form of family floater health insurance, compare your options. Look at the premiums, exclusions, inclusions, waiting periods, sub-limits etc. Don’t sign on the dotted line before you have understood the scenarios in which the insurance policy will help you.”

Do you really need a Rs 1 crore health cover? Many financial planners believe that Rs 1 crore is probably too much health insurance coverage.

Suresh Sadagopan, Founder, Ladder7 Financial Advisories said, “We need to be realistic about how much cover is needed and take that much cover only. Don’t forget for such a high health insurance cover, the premium will be huge. Hence, you should only take that much insurance which will cover most of the risks at a reasonable cost. We need to be practical and learn to live with some amount of risk,” he said.

Hence, the family floater health insurance coverage amount should be adequate based on the place where you stay (cost of medical care depends on this to some extent), medical expenses that one may incur in case of hospitalisation, and so on.

Harsh Gahlaut, CEO, FinEdge said, “The ‘right’ cover is whatever makes you feel secure and comfortable, subject to a bare minimum floor of around Rs 10-15 lakh for a typical family of 3-4 people. Those living in metro cities with higher healthcare costs may opt for a number that is 25-30 per cent higher.”

Understand the math when buying high health insurance cover Note that family floater health insurance pricing is nonlinear, which sharply tapers off in terms of incremental cost per additional rupee of the sum insured, once you go past the Rs 15-20 lakh sum insured mark.

Gahlaut said, “A Rs 1 crore health insurance cover does seem like a bit of an excess coverage. However, having said that, there is no fixed formula for one’s ‘optimal’ health insurance coverage. Given the underlying math, the cost of a Rs 1 crore health insurance cover will, in most cases, be just 25 per cent or so higher than the cost of a Rs 50 lakh health insurance cover, and probably around twice the cost of a Rs 25 lakh health insurance cover. So, if you are aiming for a Rs 50 lakh health insurance cover and you feel that a Rs 1 crore health insurance cover will help you sleep better at night, it certainly makes financial sense to go for it.”

Though it appears that a Rs 1 crore health insurance cover might be an overkill for most people, there can be at least one reason to go for a higher sum insured.

Reasons to go for a higher health cover Nowadays, the advancement in medical technology has made it possible to cure diseases that were once considered incurable. However, at the same time, thanks to medical inflation, the cost of treatment is also sky rocketing.

Therefore, in a situation like this, if you do not have adequate health insurance cover, then arranging huge sums of money for getting the right treatment can become a big issue for you.

Amit Chhabra, Business Head – Health Insurance, Policybazaar.com said, “The medical inflation in 2018-19 increased at the rate of over 50 per cent, i.e., from 4.39 per cent in 2017-18 to 7.14 per cent.”

Apart from this, one must also know that a family floater health insurance policy extends the coverage to the entire family, rather than just an individual, where every family member gets benefits under the same sum insured.

Shetty said, “You can go for higher health insurance cover primarily because your family shares the sum insured of your family floater health insurance policy. So, in the case of multiple claims in the same year, higher health insurance cover with an adequate sum insured would never fall short.”

What should a policyholder do? Healthcare expenses are rising exponentially. A regular-sized coverage, for instance, a health insurance family floater cover with a sum insured of Rs 5-10 lakh may prove grossly inadequate once the illness strikes. Hence, having an inadequate cover can put families at financial risk as well. However, one should go for higher family floater health insurance cover only after assessing their needs. Take the help of a financial adviser before availing such high ticket-size health insurance policy.

Joshi said, “There is an argument that as time goes by the treatment costs will go up, this is true, but for that purpose, periodically, one may opt for additional cover or top-up or super top-up covers,” he said.

Therefore, if you think that your current health insurance policy seems to be inadequate, you can opt a base health insurance policy and a super top-up plan from the insurer of your choice.

Rakesh Goyal, Director, Probus Insurance said, “There are health insurance plans offered by a few insurers that have an in-built option of having Rs 1 crore sum insured.”

Having an in-built option in health insurance means the plan is not just a basic health plan, it is a combination of a base health plan and super top-up plan to have a total sum insured of Rs 1 crore. A customer doesn’t have to opt super top-up plan additionally to increase the sum insured. Such plans offer a higher sum insured at a reasonable rate, because it has an additional feature of a super top-up plan along with a base health plan.

However, Goayal further said, “Since all insurers do not yet provide in-built health insurance policies offering Rs 1 crore cover, you can even opt for a combination of a base plan and super top-up plan from the insurer of your choice. You can simply buy a base health insurance policy, having a cover of Rs 10 lakh and opt for a super top-up plan having a cover of Rs 90 lakh and Rs 10 lakh as the deductible amount.”

Also read: Should you buy health insurance with higher sum insured or add top-up policy?

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The post health insurance: Do you really need family health insurance of Rs 1 crore? appeared first on Invest Ops.

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[mygirlthursdaycom-blog]

Financial planning for dummies – 1 By Yolanda Alphonso

Image source - http://www.carbone4.com/sectors/finance/?lang=en

So it’s 9.30pm tonight and I decided that I’d been done with procrastinating on managing my finances. I needed to take charge of following through with a plan that most of my age-mates dread getting into. I realised that not many of us, who fall into the age bracket (early and late 20‘s ) take financial planning seriously and hence, we neither really look into planning for our retirement, insurance nor do we take inflation into consideration.

As we make our way into our mid 30’s, only then do we realise the importance of taking savings seriously. I am going to do a series on - Financial planning for dummies, which will cover various methods of savings like stock options(equity markets) , SIP/Mutual funds,   EPF/PF, gold bonds etc for those of us living in India.

Today I will write on investing in the stock market(equities) – as of today the Nifty (NSE or National stock exchange) is trading at  10,124.90 and SENSEX (BSE or Bombay stock exchange) being at 33,690.09. Over the last month, markets have been receding and have taken on a bearish mode – which is actually great news for us, as  the prices in shares have considerably fallen making them cheaper as compared to last month. The basic idea is to purchase shares at a lower price (price being low makes the shares affordable).  Like the saying goes, ‘opportunity only knocks once’ you need to take it up and invest your money so when markets are high, you can reap the benefits in multitudes. Now that I’ve cleared  up this aspect of when to invest, lets learn how to make your money work for you!

How to invest?

Investing is just like a relationship! The more efforts you put into getting to know the company(which you want to invest in) the better rewards you reap. While investing in any company, you need to check its performance for the last five years. See the progress report, do a little fact checking – like a mini research on what is the current status of the  company (is there any change in the leadership or any policies that are effecting the company). As a lay person, you can even read the Economic times or go through different websites like money control or Economic times  which will help you purchase your stock options. In case you do not get  the time to do your own research you can open a Demat account with either your bank or financial services like Aditya Birla my universe and Funds India(Both of which I have used  and have found them to be quite helpful) the financial advisors there are very helpful and can cater to your needs and answer any queries that you have.

You can even choose your stocks from the Nifty 50 list - The NIFTY 50 is National Stock Exchange of India's a diversified index comprising of 50 stocks from 12 sectors. Another important advise to follow through here is do not lay all your eggs in one basket. While choosing your stocks, see that you choose them from different sectors. They say Variety is the spice of life, here too you need to diversify your portfolio. Take into account stocks from sectors like – pharma, cement, food and beverage, power etc.

How do I open a demat account?

1.      You will need the following documents to open a demat account -

2.      Proof of Identity (POI) (Eg.: Driving license)

3.      Proof of Address (POA) (Eg.: Passport)

4.      Proof of Bank Account (Eg.: Cancelled cheque)

5.      PAN Card

6.      1 to 3 passport size photograph

Which institution do I select for opening a Demat account?

The main objective of opening a Demat account is to consolidate and simplify transactions being made -   Mutual Funds or be it trading under on roof. This being said  - let me tell you that this is the best thing ever to have happened in the past year. Totally hassle free and you can invest or redeem your mutual funds online with the click of a button( your redemption can take 3-7 days, depending on your broker.

Besides this, you need to check the brokerage fees of the financial institutions. There are several institutions offering really  competitive brokerage – Zerodha, angel broking share khan etc.

 So Folks that’s all I’ve planned  for todays’ lesson. Hope you guys have picked up something valuable! Stay tuned for more info on Financial planning in next Thursday’s article.

Signing out, yours truly

[mysiponline-blog]

Why Pharma Funds a Choice of Investors Now?

Pharma mutual fund invests in stocks of Healthcare and Pharma sector. The Pharma sector has performed well until 2016, but after that, due to specific reasons, the pharmaceutical companies are in distress now. As the Pharma mutual funds are only dependent on the performance of pharmaceutical  companies, this involves a high risk in Pharma funds. In the last three years, the Pharma funds have gone down by approximately 40%. Then, why Pharma funds have become a choice of investor now? Let’s find out!

Here Are the Important Points Making Investors to Invest in Pharma Funds

Revival Phase of Pharma Funds Since 2015, the Pharma industry is not performing well due to a slowdown in domestic and international business. Concerning domestic hit, there was intensified pressure on pharmaceutical companies to reduce the prices at home seeking the high competition in the market. Meanwhile, the companies are not able to do good business overseas due to FDA inspection. But now, the companies have taken some remedial actions to improve the condition. Due to the improving condition of the Pharma sector, it is expected that Pharma funds are in reviving phase. It is one of the reasons why investors are taking an interest in them.

Low Share Valuation According to the fund managers, the share valuation of the Pharma funds is trading low due to the lack of performance in the past few years. A few months ago, NFO of the Pharma schemes had been offered by the ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund and Mirae Asset Healthcare Fund. Further, Aditya Birla Sun Life Mutual Fund has also applied with SEBI to launch Aditya Birla Sun Life Pharma & Healthcare Fund. The increasing number of NFOs in the market show that there is growth potential in Pharma funds to improve in future time. Moreover, the Pharma NFOs and product purchase will make the industry to improve and reduce the price fall impact.

High Chances to Grow in Future Experts at MySIPonline too believe that Indian Pharma sector may record high growth as multinational companies are now investing in the Indian Pharma industry and the outsourcing services are also gaining momentum. Besides, the distribution network of the medicines is also increasing in rural and tier-3 areas.

Recovery in the US Business Previously due to US FDA inspection, the overseas business of the Indian pharmaceutical companies is highly affected which lead to slowdown growth of the Pharma funds in the market. With the systematic approach to factor this problem and increasing FDA plant resolutions, it is expected that the US business will improve significantly. US pricing policy is also in favour of Indian pharmaceutical companies as Indian companies produce generic medicines, not a patented drug. Analysing the scenario, the financial analysts believe that the Pharma funds will grow significantly with recovery in the US business.

Past Performance

Till 2015 end, the Pharma fund was performing extremely well, and it had generated exceptional returns for investors as well. From 2012 to 2015, some funds have generated unmatched profits and tripled the money of investors. Seeking the performance of the fund in the past, most of the fund managers suggest that with reviving conditions of pharmaceutical companies, they will start performing well again.

Overall, the stocks of pharmaceutical companies have gone down and are available at cheap valuation now. With the improving conditions of the Pharma sector, the chances of Pharma funds to perform are also high. Considering all the future bets, investors are now more interested in Pharma funds, and it has become a choice of investors. If you have any query regarding Pharma funds and any regular mutual fund plan, you can contact expert at MySIPonline at below-provided link to get assistance. https://goo.gl/WofRJm