Indholdsfortegnelse for October 2023 i Outlook Money

“This festive season, be the choice architect for yourself by creating your own nudges, but ensure they are easy to follow, too In their insightful book, Nudge: The Final Edition, authors Richard H. Thaler and Cass R. Sunstein talk about individuals who can be labelled as “choice architects” because of the power they wield through simple actions. They explain by giving the example of a director of food services for a chain of schools, who could affect the food choice of children by simply rearranging the food items at the display counter of the cafés. In a way, she could nudge children into eating certain food items. This festive season, when you will no doubt go out with your shopping bag or log into your favourite app, be ready to…

Exploring the ghats of Varanasi and visiting its temples has long been a cultural attraction. Now, a new chapter of tourism significance has unfolded in this historic city. Prime Minister Narendra Modi inaugurated die world's longest river cruise, covering a remarkable 3200 kilometres from Varanasi to Dibrugarh. The Ganga Vilas River Cruise offers a blend of culture, art, spirituality, and modem comforts. It boasts five-star amenities, including comfortable berths, chairs, tables, yoga rooms, lounges, a gym, bar, swimming pool, and a dining hall. The upper deck provides a walkway and sunbathing areas. Through the French windows and roof, the passengers can enjoy picturesque views of villages, ghats and other places during this exciting journey. Operated by the Inland Waterways Authority of India, this cruise connects Uttar Pradesh, Bihar, Jharkhand, West…

How Much You Pay After Adjusting Cost of Old Jewellery?** ₹20,267 Note: Table only for illustrative purpose. Making charges may vary between different jewellers and the type of jewellery bought *As per the closing rate mentioned in MCX (for 5 Feb 2024 expiry) on September 15, 2023 **Assuming that jeweller offers the same buying and selling rate on gold jewellery, and the exchange is happening at the same jeweller…

At the outset, I would like to start with an innocuous fact—the number of folios in small-cap funds has accelerated by more than two-and-a-half times over the last couple of years. That number stands at 13 million at this juncture. And now, a deeper interpretation beyond the apparent innocence of the statement. Small caps have not only generated an enormous interest, they have surpassed their previous records. For the first time, the number of small-cap folios is almost equal to that of large-caps, and in fact, higher than that of mid-caps. So, how do we interpret this in the current context? What inference, if any, should investors draw from this phenomenon? What strategy must they follow if some of them are overexposed to the “smallies”? We will find out the…

The Finance Act, 2023, has taken away the indexation benefit from debt mutual funds. It states that the gains from the growth option of funds with equity allocation of less than 35 per cent will be taxed as short-term capital gains (STCG), irrespective of the holding period. STCG from non-equity funds are taxable at the marginal slab rate. At the highest tax bracket, it is 30 per cent plus surcharge and cess. It effectively means that the indexation benefit, which was there for a holding period of three years, is not available anymore. The taxation of equity funds remains the same as before. Gains from equity funds held for more than a year in the growth option will be taken as long-term capital gain (LTCG), and will be taxed at…

IDFC FIRST Bank has transformed itself into a digital-oriented retail bank and invested in digital capabilities. How have you helped reshape customers and how are they reshaping you as a bank? We have been in banking for almost two-and-a-half decades, and there has been a dramatic change over this period. There was a time when people used to flood into branches, and the core idea was to open new branches and have more people to service them. Those days, innovation used to be around physical services like navigating people to the right counter, ensure prompt service etc. Today, customers do not walk into branches. All of us have 100-150 apps on our phones because that's the way people have started interacting. Today, your day-to-day life is driven by digital interface…

I have a house that I wanted to sell to buy another house. My old house is not yet sold, but I got a good property offer which I managed to secure by taking a home loan. Will the sale proceeds from my old house, whenever it is sold, be taxable as I don't plan to buy more properties to invest the sale proceeds? If a housing property is held for less than 24 months, it is considered a short-term capital asset. Gains made on selling such assets are short-term capital gains (STCG), and taxed as per the income slab. There are no exemptions available on STCG. If a housing property is held for more than 24 months, it is a long-term capital asset and gains from it are called…

The state's largest runway, measuring 3200 meters in length and 45 meters In width Kushinagar International Airport Spread across 589 acres,Lord Budda's Mahaparinirvana Site in Kushinagar constructed at a cost of ₹260 crore Stata'a Longest Runway Kushinagar Airport boats the longest runway among all the operational airport in Uttar Pradesh, measuring 3,200 metres in length and 45 meters in width, in terms of runway length Varanast Intranational Airport is in second place: Incorporated into spiceJet's Network SpiceJet has included Kushinagar Airport as one of its flight destinations, connecting kushinagar to Delhi,Mumbi, and Kolkata. Flight on these routes have already commenced and opetate four days a week, specifically on Mondays, Wednesdays,Fridays, and Sundays. Ease of Travel to Thailand and Gulf Countries The operation of Kushinagar Airport has made it convenient for…

>> Jeweller will ascertain the approximate value of the gold jewellery using acid tests and gold purity analyser machines >> The customer is informed about the approximate value of gold based on its purity, weight and the prevailing gold rate >> If the customer wishes to exchange gold at that value, the jeweller will melt the piece in a furnace to ascertain its actual purity. >> After melting, the jeweller will determine the final exchange value of the gold and inform the customer of the exact value of the old gold item >> The jeweller will expect the customer to buy a gold item from their store and will adjust the exchange price of the old jewellery at the time of the final billing…

Asset allocation has long been considered the fundamental principle of smart investing, but it's only recently that multi-asset allocation funds have captured the spotlight. Six multi-asset funds have already been launched this year and more are on the horizon, awaiting the regulatory green light. The recent emergence is not without reason. In 2022, the two critical asset classes—equity and debt—saw tepid returns, and commodities, such as gold proved to be beacons of hope, providing a sanctuary to the investors. On the equity side, the broader tracked equity indices, Sensex and Nifty, posted lower single-digit returns with 4.44 per cent and 4.32 per cent, respectively, while on the debt side, Crisil Composite Bond index posted merely 2.46 per cent. In comparison, gold gave 14 per cent return over the same period.…

In an ever-evolving market, where the dynamics of investment choices change with every season, mid- and small-cap indices have taken the centerstage now. In the last three years, they have delivered stellar returns, and funds tracking them have also followed suit. The BSE Small Cap-TRI index, which serves as a barometer for the small-cap segment, posted an impressive compounded annual growth rate (CAGR) of 36 per cent in the last three years. In the last six months also, they have rewarded investors with impressive returns. So, if you think you have missed your chance, you can still start with your investment now and make gains. If you are thinking of adding a small-cap flavour in your portfolio, you may like to consider SBI Small Cap Fund. The fund has a…

Our digital payments revolution in the form of the Unified Payments Interface (UPI) took centre stage at the recently concluded G20 summit. Just before global leaders came to attend the summit, Reserve Bank of India (RBI) Governor Shaktikanta Das announced the launch of new UPI products built by the National Payments Corporation of India (NPCI). At the summit, delegates and leaders were encouraged to use UPI transactions while in India. Growing UPI Transactions 10 billion The number of UPI transactions in August 2023, up from 9.96 billion in the previous month 75% Percentage of retail digital payment volume that UPI handles The latest buzz in this space is the launch of the first UPI ATM, built and operated by Hitachi Payment Services, in association with NPCI. The UPI ATM offers…

Afriend called me the other day with a very interesting query. He wanted to purchase a home espresso machine, and after much back-and-forth narrowed down on the gold standard. The two Italian models were Lelit Bianca 2.21 and La Marzocco Linea Micra. The first would set him back by ₹2.21 lakh, while the other by ₹3.41 lakh. My friend is passionate about baking and coffee. I suspect that he surreptitiously nurtures the dream of running his own café, or a co? ee bar. And he had set his heart on this purchase. So what was holding him that he kept wavering on this decision for the past year? Well, the tug of war between his heart and mind was because he could not justify the cost to himself. Somewhere in…

Fixed-income mutual funds play a crucial role in retirement planning by providing a relatively stable and predictable source of income. They can be an important component of a diversified investment portfolio, especially for retirees who want to minimise risk and preserve capital while generating returns. Here are some key roles debt funds play to achieve retirement planning goal. ASSET ALLOCATION Effective asset allocation involves investing across asset classes like equities, fixed income, and possibly real estate. This diversication helps in reducing the impact of market volatility on overall returns. Besides, it helps align one's risk tolerance with financial objectives, whether it is growth, income, or a blend of both. Asset allocation allows retirees to plan for the long term, as their financial needs and risk tolerance changes with time. Proper…

As human beings, we are all born free. However, as time passes, we all feel constrained, unable to live our lives as we choose. This is why, as individuals, we are always seeking freedom—freedom to follow our passion, freedom to travel the world anytime, freedom to decide when to retire, and freedom to live the life we have always imagined. But as they say, there is no such thing as a free lunch. Everything, including our freedom, has a cost. Different people need freedom for different purposes. No matter what stage of life you are at, your desire for freedom does not abate. • Young college pass-out: If you are a young college pass-out then you primarily have two paths that lie ahead of you—you either dream of pursuing a…

Being a smart and responsible investor is crucial in today's ever-changing world. Making informed decisions and actively managing one's investments ensures financial success and contributes to the economy's overall growth. You must arm yourself with knowledge, exercise caution, and act responsibly to minimise risks and become a successful investor. Here are some tips to help you become a smart and responsible investor. First and foremost, educate yourself about various investment options and strategies. Stay updated on financial news, read books about investment principles, or take online courses to enhance your knowledge. A well-informed investor is better equipped to evaluate potential investment opportunities and make sound decisions that align with their financial goals. Investor resilience, financial planning, and mutual funds are closely interconnected when it comes to achieving your long-term financial…

Teachers have a major role in the lives of most of us. Teachers impart many life lessons to us, from setting educational and other goals to being patient and consistent towards whatever we do. On the occasion of Teachers Day, Outlook Money in association with Aditya Birla Sun Life Mutual Fund organised a panel discussion on “Financial Lessons To Learn From Teachers”. The members of the panel were K.S. Rao, head of the investor education and distribution development at Aditya Birla Sun Life AMC; Amit Trivedi, an author, speaker, blogger and trainer; and Vinayak Sapre, a financial coach, author, blogger and public speaker. The panel was moderated by Nidhi Sinha, editor, Outlook Money. Here are some edited excerpts: MEMORABLE FINANCIAL LESSONS Rao, who comes from a family of teachers, highlighted…

In the world of investing, a realm often dominated by numbers, graphs, and forward projections, there rests a pivotal yet underemphasised cornerstone: Behaviour. The significance of behaviour in financial decision-making cannot be overstated, as it often steers the ship in turbulent waters of market volatility. “Psychological research had a great impact on shaping the theories of behavioural finance. One such remarkable series of experiments was the Asch Conformity Experiments conducted in the 1950s by Solomon Asch.” These experiments highlighted the tendency among individuals to conform to a group's incorrect consensus, illustrating the perilous ‘herd behaviour'. This form of cognitive bias, among others, plays a crucial role when individuals engage with financial markets. Investor behaviour, according to multiple studies, is a linchpin to long-term investment success. Dalbar Associates, a notable US-based…

Outlook Group announces the launch of its highly anticipated retirement planning event, “40After40”, in association with IDFC FIRST Bank. A one-of-its-kind platform, “40After40” is a two-day event and expo, which will be held at Jio Centre in Mumbai on January 23-24, 2024. It's a one-stop shop for all conversations around timely retirement, panel discussions, chats, masterclasses, interactions with planners, product presentations etc. The Need For 40After40 Event The event is an extension of Outlook Money's drive towards spreading awareness and creating conversations around the important but often-ignored need for retirement planning, making it the only media house with a dedicated website https://retirement.outlookindia.com/ on editorial content around retirement. It aims to provide invaluable insights and expert guidance to individuals, helping them make informed decisions to secure a prosperous retirement. In this…

ANKUR KAUL, LUDHIANA Last year, I suffered a stroke, and spent a lot on treatment. I am a teacher and was in the school when it happened. My school does not offer group health insurance. Is it not mandatory for employers to offer a health cover? I want to get cover for my entire family now. Could you suggest a good health insurance plan, given my medical condition? Most companies do not give health insurance after a stroke. However, there are companies that may offer you health insurance excluding the pre-existing diseases (PED). However, you can buy health insurance cover for rest of the family members where you can be the proposer/payer for tax benefit purpose. You can buy a family floater insurance policy covering each member for at least…

A Vanguard study reveals that asset allocation dictates up to 90% of long-term portfolio returns, dwarfing security selection at a mere 10%. The dynamic world of investing encompasses a plethora of assets: equity, debt, gold, mutual funds, silver, REITs, INVITs, and more. Such diversity further underscores the impossibility of predicting a consistent winner. The solution? Diversification across asset classes via multi-asset mutual fund schemes. Benefits of Diversifying Across Multiple Assets Every asset class boasts its unique market cycle and reaction to global events. The COVID-19 pandemic, for instance, saw equities plummet while gold surged, and debt held firm. By spanning multiple asset classes, investors harness the dual advantages of diversification and reduced portfolio volatility. Predominantly, multi-asset funds comprise equity (65% for tax benefits), with the remainder distributed among debt instruments…