NEW NORMAL

Interesting things are going on around us. Normally after Diwali, industrial production starts contracting for a few months. Again starts after the budget or financial year closing. But this year new normal is emerging  even after Diwali there is no slow down in industrial activity Experts are saying that recovery is going to be V-shaped. If we go through the recent news of various periodical also the annual summit of different Industry body we find an interesting fact that the recovery is faster than expected. Few are giving credit to the package which was given to the MSME sector. Spending on infrastructure and so on. It is also true that the total infrastructure pipeline created and under execution is very robust. If we go through the PMI or purchase manager index from JULY2020 to NOV2020 it is over and above 50 which denotes expansion in business activity. Bank credit and NPA creation data is  showing an increase in credit  to industry less NPA forming This means ther...

 Whenever we talk to any financial expert he will give us a few data point presentations that our economy is working in a certain direction either expansion or recession. Fundamentally barometer of the economy is similar to what we learned in the pre-covid-19 era, but few are changing. Just like the current account deficit, inflation, the fiscal deficit is the same. But economic activity had one barometer. That sale of the new commercial vehicle was the easiest way to tell the audience about expansion in the economy. New barometers like e-way bills are added to the list. Post covid-19, market contraction is getting squeezed rapidly but the sale of commercial vehicles is lagging. The no. of e-way bills are generated showing upper trends. Month on month it is increasing, so the digital payment. Inflation is rising  (CPI), but WPI is not matching. After Diwali there used to be a slow down in the economy, the sale goes on till mid-December but factory output gets slow down. It is,...

 After pandemic which is continuing, at present, has changed the dynamics of every business across the world. The meaning of life has changed never before. As everything has changed so has real estate. Particularly in the Commercial segment is more painful than residential. We are listening that a good number of  IT and ITES company are leaving the premises and adopting Work From Home (WFH)  also a lot of other segments like Hospitality, Restaurant and construction part of the industry is in deep trouble. But going from data from government agency there is the transaction that is going on despite uncertainty in every segment and market. "Whats for me" Is there anything on which we can take a call as a retail customer? Is there is an opportunity for us? There is a lot of thing in the market where we can invest and earn. There is demand in the residential sector,  which we thought will diminish due to pandemics but it's not the case. The commercial property where maxim...

Usually, we take health insurance with or without an advisor. Here we are going to take look at major points.      1. Normally we do not declare disease at the time of first policy purchase which is called a pre-existing disease. It takes usually 24 months to 48 months to cover (as per policy wording) If we declare  PED, there is a distinct possibility that we get the following option:- Outright policy reject. Policy insurance with or without loading. A policy with a specific time period waiting But if we do not declare it at the time of inception, at the time of need your claim can be rejected by the company.      2. Consumable is another item which is costing more than treatment (check).     3. Another major point in health insurance is organ donors & critical illness. Major surgery & critical illness are covered by the insurance companies.     4. Dental IPD & OPD are covered.     5. Child cover ( New Born Ba...

Rather my Contribution to Atmanirbhar Bharat. Right now we are listening to this nation or chorus on Atmanirbhar Bharat. But Bharat will be Atmanirbhar when each & everyone will be self-dependent or will have financial freedom. Getting freedom from worry, is it possible??? Yes, it is, we have to check our balance sheet. How much liability we have taken on our self. How many assets do we have & cash flow to manage both? If we check all these in minutely, we will know our mismatch is manageable. In general, many liabilities can be avoided or differ as per our requirements. Also, a lot of assets that have been created are also to be trimmed for matching both sides of the Balance Sheet. If we check our daily expenses & cut them by 1/10th  it will resolve many issues which we are facing. To become Atmanirbhar we have to look for contingency. If anything happens we change our track to avoid or face a real-time issue that is in front of us. Getting our conti...

Nowadays we are seeing a continuous drop in the saving rate. As of 1/4/2020 rates of postal saving like NSC, PPF, MIS, Kissan Vikas Patra are reduced. After Repo rate cut by RBI during CY 2020 made FD rate unattractive. Repo rate & Reserve repo rate has been reduced continuously, though rates are reduced in FD continuously but not the lending rate. Leading rates are not affected that much. Now again SBI reduced its FD rate which is equivalent to or less than saving banks' accounts. This phenomenon will continue as govt. & Financial Institution wants cheap money. If we look at the Govt. The bonds rate, it is the highest in the world. Our total govt. borrowing is significant due to our population & low tax base. But it is going to stay here. We cannot ignore it. In the future, we can see some differences. Then what is the answer for it? Here comes Corporate Fixed Deposit. It is the same product as that of bank fixed deposits. In banks, we do daily transac...

The pandemic is given each of us a unique opportunity to revisit our financial planning, to do course correction &  its execution. In general, all of us get a tailor-made solution. Which is similar in composition for everyone. It's true. Every individual has a different aspiration & that aspiration needs to be checked out & considered in planning. In financial planning, family plays a big role. As normally we take the discussion on the basis of a short period. Instead, if we take the life span of complete 100 years the planning becomes easy. As at every step of life, the requirement is different & its goals to get deviated or changed altogether. To foresee 100 years is not that feasible or it's very difficult. Here we change our 100 years in parts by dividing them into 10 years each. So, adjustment & alignment can be done quickly & easily. As our heading suggests " Thoda Saving & Thoda Investment" is the mantra that will make...