While inflation remains a major concern for the US economy, another troubling situation that happened in the US was the collapse of the Silicon Valley Bank (SVB). The bank was crippled in 48 hours under the pressure of high withdrawals, which it was unable to meet due to an asset-liability mismatch, a classic case of a bank run. Although the FED and FDIC have assured that money will be returned to depositors in order to strengthen public confidence in the US banking system, it cannot be ruled out that many of these banks will be under pressure.

In the Eurozone, consumer prices were up 8.5% in February, down from a peak of 10.6% in October and the lowest since May 2022, but well above the European Central Bank’s target of 2.0 percent.

China’s inflation rate has decelerated sharply; the economy grew by 3% for FY22, missing the national target of 5%, and for FY23, they have set a modest target of around 5%, which is the lowest in a decade.

However, in Japan, the inflation rate is on the rise. The annual inflation rate in Japan rose to 4.3% in January 2023 from 4.0% in the prior month. This was the highest reading since December 1981.

Well, there are several factors contributing to inflation in different nations, but by and large, supply chain disruption due to the Russia-Ukraine war is one of the most common and major reasons.

In India, retail inflation slowed down to 6.44% in the month of February, compared to 6.52% in January. The inflation rate stayed above the Reserve Bank of India a target of 2-6% for a second consecutive month. The biggest contributor to such rises was the cost of cereals and spices. Consumer confidence, which is published by the RBI, saw an uptick for the month, suggesting higher confidence by the Indian household in the economy. Although consumption remains below the pre-pandemic level, urban demand witnessed growth, whereas rural demand lagged.

The good news is that economic activity in India is at an all-time high, and capacity utilization is above its long-term average. The PMI data suggests stronger momentum across the manufacturing and service sectors. The government’s focus on capital expenditure will further boost demand and generate employment; private capex is also likely to follow.

As we inch towards the midpoint of this year, we might encounter an unwanted guest knocking at our door, and it is said to bring along with it a poor monsoon, which is going to affect the agriculture sector. The effect of EL Nino can be observed across the country as temperatures soar. Poor Rabi and Kharif crop output can push food inflation further up and delay rural demand recovery. Lastly, higher temperatures will lead to higher power demand, which could add to higher coal imports and inflation woes for consumers.

The equity market will witness volatility in the near term, although the market is undergoing time correction, and the valuation remains elevated when compared to other emerging markets. Nifty, however, appears to be fairly valued when compared to its long-term average.  On the sectoral front, banking and auto look good for the near term, whereas infrastructure can be a good bet for the medium to long term. Mutual fund investors can prefer investing in Flexicap funds, which will provide diversification benefits at the same time, help the investors surf market volatility.

On the other hand, the debt market looks attractive, considering the current yield, which offers a great return. The yield curve has mostly flattened, which presents a better opportunity in the 3–7 year segment. Further, no rate cuts are expected this year, but as soon as rate cuts start, debt investors will benefit the most. For the short term, investors can invest in low-duration funds, while medium-term investors should prefer a short-term debt fund or a dynamic bond fund.

For more information, reach us at support@prudentwealth.in

Get your copy of PW INSIDER now!

Read Next: Millet goes mainstream: Why this ancient grain is making a comeback?

What is this journal all about?

Our journal “PW Insider” includes an in-depth analysis of the following:

1. Economic Outlook.
2. Open Banking and APIs
3. Insider top 50  
4. Stocks IN & OUT of Mutual Fund Portfolio
5. The Future of Work and Income Generation Across Generations
6. Debt Fund: Is this the best time to invest?
7. All you need to know about ITR, deductions, and the old and new tax regimes for (AY 23-24)

Do check it out!

Publisher Description:

This book is developed in collaboration with Prudent Wealth.

Prudent Wealth is a Professional Financial Planning and Chartered Wealth Management Firm. It is North Bengal and Sikkim’s fastest-growing Financial Consultant and Wealth Management Service Provider. 

We have served over 2,000+ clients and have an AUM of 250+ crores. Prudent Wealth was founded with a vision to provide complete wealth management solutions with professional expertise and the highest service standards to its clients. 

Our expertise, knowledge, years of experience, and thorough understanding of finance help the client achieve financial success. Our expertise, knowledge, years of experience, and comprehensive understanding of finance help the client achieve financial success. 

Get Your Free Journal Now!

Acknowledgment: 

We would like to thank Chandan Ghosh, founder-director of Prudent Wealth, for giving us this opportunity to develop the journal and share his valuable ideas. We would also like to thank the entire team of MyGoalMySip for their valuable input, which has helped us shape this journal.

• Editor PW Insider: Suraj Kar 
• Sub Editor PW Insider: Arpita Chatterjee 

Note to the readers:

This journal is solely developed to help the readers understand the necessity of financial planning and investing and its benefits and drawbacks. 

The contents of this publication do not necessarily represent or suggest Prudent Wealth’s endorsement, recommendation, or favoring. This publication is solely intended for educational and informational purposes. 

For more information, reach us at support@prudentwealth.in

Get your copy of PW INSIDER now!

Read Next: RBI’s Central Bank Digital Currency (CBDC)

Who are you?
I am ChatGPT, an OpenAI-trained natural language processing model. I’m here to help with queries and provide information on a variety of subjects. What can I do for you today?

ChatGPT

ChatGPT has created a lot of buzzes. So we thought, why not simplify it for our readers to understand?

It is a chatbot built by the non-profit research organization OpenAI, and it is one of the most advanced models of its kind. It can interpret and respond to a diverse set of natural language inputs, making it ideal for applications like language translation, text summarization, and conversation.

If you have an Android or iOS smartphone, you may have interacted with Siri, Google Assistant, or a device with Alexa in your home. This software/device is to help you with performing simple actions such as making a phone call, playing music, creating a reminder, and so on. While these virtual assistants generally do a good job, ChatGPT performs better in two ways:

1. ChatGPT is made to have back-and-forth interactions with users, whereas the traditional virtual assistant is made to give info and carry out activities when requested. As a result, it can respond to inquiries in greater detail and carry on more natural-sounding discussions.
2. ChatGPT’s ability to remember preceding chats. Voice assistants like Siri and Alexa are made to carry out specific duties when asked to do so; they do not keep track of prior encounters. Contrarily, ChatGPT can recall previous exchanges and draw on that knowledge to tailor its responses in following conversations.

What makes ChatGPT powerful?

It entails highly realistic communication abilities, such as the capacity to explain ideas and point out subtleties. In many situations, it’s difficult to identify whether a human or a computer-generated bot is interacting. Grammar and syntax mistakes are few, and written structures are logical and clear. It is well-suited for many applications, from straightforward chatbots to more complicated dialogue systems and question-answering, thanks to its capacity to “remember” previous discussions and scalability. ChatGPT and its similar models are probably going to play a bigger role in various industries as the field of natural language processing continues to develop.

Comment below with your thoughts.

Written by: CA Suraj Kar  

For more information, reach us at support@prudentwealth.in

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Read Next: Adani Group: Mutual Fund Holdings

The stock market underperformed in 2022; the S&P 500 had its worst year since 2008 when the global recession wiped out nearly 40% of the index’s value. Some economists and financial analysts continue predicting a looming economic recession that could increase market volatility this year.

It’s impossible to say what the market will do in the near future, so focus on your financial position and goals to evaluate the best course of action as the year unfolds. 

For instance, it probably doesn’t make sense to make rapid changes based on short-term volatility if the majority of your investments are in a retirement fund and you’re still relatively young. On the other hand, if your time horizon is shorter and you plan to retire in the next few years, capital preservation should be your top priority; it may be wise to shift your assets to low-risk investments.

In light of this, a wise question to ask yourself is: What should be your ‘SMART’ investment mantra for the year 2023?

Before you invest, set goals, and while you’re at it, think about inflation as well. The idea is to develop short- to long-term goals that are ‘SMART’ (specific, measurable, achievable, relevant, and time-bound). 

1. Take a quick overview: If you don’t know where you stand financially right now, you can’t make any significant changes in the new year. Your net worth, which is a snapshot of your whole wealth, is an excellent place to start. Subtract your liabilities from your assets. By doing so, you’ll be able to determine if you’re in the plus or the minus, plan and prioritize your spending, saving, and investing, and provide a baseline by which to gauge your success over time. It is also a good opportunity to check your credit report to ensure that your accounts and liabilities are appropriately recorded.
2. Prioritize and set goals: Ask yourself, what are your top priorities for this year? Prioritize your goals, whether you wish to save more, pay off debt, build an emergency fund, or help your family, so you know where to put your money first. 
3. Spend with caution: Make a budget that covers both your current living expenses and your long-term goals. List all of your monthly expenses, and put your goals into consideration when making spending decisions. Moreover, if you go over budget, act with caution and pay attention to how you’ll cut back on your spending in the future to avoid getting into more debt than you can handle.
4. Expect the unexpected: Be sure you’ve got proper insurance coverage. Don’t forget to create an emergency fund in an account that is simple to access, ideally with enough money to cover three to six months’ worth of living expenses in the event of an illness or job loss.

Investment Tips for 2023:

1. Analyze the business model’s viability in the Indian context and whether the company is likely to profit from the macroeconomic forces affecting the Indian economy.
2. Invest in companies that have an increasing or consistent revenue stream, as momentum may take a backseat in 2023.
3. A concentrated portfolio with a business having a competitive advantage and available at a reasonable price will be far better.
4. Bonds and other debt securities that benefit from rising interest rates will be imperative in the future.
5. Corporate bonds issued by fundamentally sound corporations will yield higher returns.
6. The banking stocks are projected to gain from a pickup in credit growth and house sales.
7. The government’s infrastructure drive will most likely assist related businesses and subsectors.
8. Only invest in stocks if you can hold them for a medium- to long-term period. Better yet, invest your surplus funds in debt securities and completely shun equity.
9. Watch out for industries that are likely to undergo significant pushes or reforms.
10.  Think about “finding the next big trend”.

Which segments will shine brightly in 2023?

Note: The end of a fiscal year is critical for making long-term financial decisions. Irrespective of your current strategy, this could be a perfect moment to work with a wealth manager who can provide you with customized and impartial guidance on how to achieve your goals. Working overtime for fortune isn’t enough; your wealth should also work for yourself. Consequently, if you want your money to grow for you, invest it.

• Bonds and large-cap equities offer relative yield options that can help you secure your yield. Bonds and other debt securities that benefit from rising interest rates will be imperative in the future.
• Consider giving structural financial themes, domestic cyclical themes, and investment-driven themes long-term value.
• Using defensive assets, strengthen portfolios against the unexpected.
• Expand your horizons using non-traditional strategies.
• Think about “finding the next big trend”.

Written by: Arpita Chatterjee 

For more information, reach us at support@mygoalmysip

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Read Next: Economic Outlook: February 2023

Instagram took over two and a half years to reach 100 million users, but Tik-Tok took just nine months, and ChatGPT, which was released in November last year, took just two months. Now that ChatGPT is integrated with Microsoft Bing and Edge, it is challenging Google’s supremacy in the search engine space.

In this ever-changing economic world, where technology is constantly disrupting business practices, nobody can predict what will happen next. The leader of today will be a mere follower of tomorrow, and as humans co-exist with technology, another question pops up about the future of jobs and the economic situation. Although current layoffs can be attributed to the economic slowdown, for sure, as technology evolves, we will encounter further job losses.

The Russia-Ukraine war shows no signs of ending, and the rest of Europe has its own issues to deal with, but they have managed well so far, with Europe’s GDP growth exceeding that of the United States and China in 2022. Energy prices, which were one of the major concerns, are now down substantially, and a few European governments have provided subsidies to offset the high energy prices. But we cannot rule out the possibility of a recession, which can be a consequence of tightening monetary policy.

In the US, the real interest rate is at -1.19%, compared to 2.21% last year. Earlier this month, the FED hiked the interest rate by 25 basis points, which takes it to a target range of 4.5%–4.75%, the highest since October 2007. The Fed is targeting the hikes to bring down inflation that, despite recent signs of slowing, is still running near its highest level since the early 1980s.

In India, the sentiment for manufacturing and services is strong, as suggested by PMI data, as both indices are above their midway levels. Consumer sentiments as measured by CMIE also suggest improvement in both urban and rural areas. Inflation is likely to remain within the RBI’s upper tolerance band.

Budget 2023 emphasized capital expenditure; CAPEX was Rs. 7.5 trillion in FY23, which was increased by 33% to Rs. 10 lakh crore for FY24. The new outlay amounted to 3.3% of the GDP. Credit growth is also on the mend; retail and personal loan growth have returned to pre-covid levels. The bank’s asset quality has improved on account of the declining NPA. GNPA, which stood at 11.6% for FY18 and now is projected at 5% for FY23, The fiscal deficit is expected to contract by 50 bps to 5.9% of GDP, with an aim to bring it below 4.5% of GDP by FY26, a level similar to that of FY20.

The trade deficit increased to USD 23.76 billion in December 2022, up from USD 21.68 billion in the same month last year and compared to the revised number of USD 23.89 billion in November. India’s exports fell 12.2% year-on-year to USD 34.48 billion in December 2022, owing to decreasing global demand caused by rising interest rates and persistently high inflation. The domestic demand was impacted by increasing cost pressure and rising borrowing prices, which resulted in a 3.5% drop in imports to USD 58.24 billion in December 2022 compared to the same month the prior year. Wherever possible, we must significantly cut back on imports to reduce the trade deficit.

The market appears to be fairly valued, and there are a lot of opportunities in the small-cap space. Going forward, value style will be the driver and growth will take a back seat. Investors can consider banking for near-term investment; also, investment in information technology can be done in a staggered manner. Debt Market looks equally attractive, it’s time to realign the investment portfolio to take benefit of both asset classes.

Team, MyGoalMySip

For more information, reach us at support@prudentwealth.in

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Read Next: Biggest Money Mistakes in Indian Weddings

What is this journal all about?

Our journal “PW Insider” includes an in-depth analysis of the following:

1. Economic Outlook.
2. What is ChatGPT?
3. Insider Top 50 Stocks.
4. Top News of The Month.
5. What’s Your Investing Mantra For 2023?
6. Exclusive Interview with Pintso Gyatso, Co-Founder Our Guest.
7. A Step-By-Step Guide to Your Financial Success.
8. Insider Top Hybrid Funds.
9. Stocks In & Out of Mutual Fund Portfolio.

Do check it out!

Publisher Description:

This book is developed in collaboration with Prudent Wealth.

Prudent Wealth is a Professional Financial Planning and Chartered Wealth Management Firm. It is North Bengal and Sikkim’s fastest-growing Financial Consultant and Wealth Management Service Provider. 

We have served over 2,000+ clients and have an AUM of 250+ crores. Prudent Wealth was founded with a vision to provide complete wealth management solutions with professional expertise and the highest service standards to its clients. 

Our expertise, knowledge, years of experience, and thorough understanding of finance help the client achieve financial success. Our expertise, knowledge, years of experience, and comprehensive understanding of finance help the client achieve financial success. 

Get Your Free Journal Now!

Acknowledgment: 

We would like to thank Chandan Ghosh, founder-director of Prudent Wealth, for giving us this opportunity to develop the journal and share his valuable ideas. We would also like to thank the entire team of MyGoalMySip for their valuable input, which has helped us shape this journal.

• Editor PW Insider: Suraj Kar 
• Sub Editor PW Insider: Arpita Chatterjee 

Note to the readers:

This journal is solely developed to help the readers understand the necessity of financial planning, and investing, and its benefits and drawbacks. 

The contents of this publication do not necessarily represent or suggest Prudent Wealth’s endorsement, recommendation, or favoring. This publication is solely intended for educational and informational purposes. 

For more information, reach us at support@prudentwealth.in

Get your copy of PW INSIDER now!

Read Next: RBI’s Central Bank Digital Currency (CBDC)

Earlier in 2022, Russia announced that it might ban cryptocurrency operations, and in July 2022, Russian President Vladimir Putin signed a law banning digital payments across the nation. Not, only in Russia, but even in China, cryptocurrencies have been banned since September 2021.

The interest rate hikes are also one of the biggest reason behind the falling price of crypto as, the Central Bank all around the world hikes interest rates as a result squeezing away the liquidity from the market the markets are natural to react but the ferocity of reaction will depend on how much of it is actually artificially inflated and as we all know that cryptos generally don’t have any underlying assets from which it derives value, more the money pumped in, more the demand and hence the price hike, but as soon as the plug of liquidity is pulled off the demand dries and price falls.

Remember the Terra Luna crash, in the mid of 2022? LUNA fell over 95% in a day, while the Terra network and its leader, Do Kwon, rose to prominence in the cryptocurrency world over the course of four years, all ending in a disastrous fall from grace. The Luna crypto network collapsed in what is considered the largest crypto crash ever, with an estimated $60 billion wipeout, shaking the global digital currency market.  Besides that, sources claim that the crash of the cryptocurrencies Terra USD and LUNA caused losses to about 2.1 lac Indians.

A month before, news flashed all over social media that one of the largest crypto exchanges, FTX, had filed for bankruptcy. The entire crypto community was stunned and shocked. Now, the former CEO of failed crypto firm FTX, Sam BankBankman-Fried, has been arrested in the Bahamas at the request of the U.S. government and charged with defrauding investors and diverting proceeds from investors to buy real estate on behalf of himself and his family. According to reports, he could face life in prison. What is more important is that he was once viewed as a white knight in the cryptocurrency community and is now a con man.

These are some of the significant events that have contributed to the downfall. If you look at the top 10 cryptocurrencies by market cap, you will notice that they have all seen massive wealth destruction.

On the other hand, Blockchain, the technology underlying cryptocurrency, has seen increased acceptance by the Indian government in a variety of sectors, most notably:

The Telecom Sector: 

The Telecom Regulatory Authority of India (TRAI) has directed that all telecom companies begin implementing blockchain technology. The use of blockchain technology in the telecom sector will aid in the reduction of spam calls. Through blockchain technology, authorities will be able to track down unregistered telemarketing companies. Telecom companies believe that using blockchain technology in conjunction with artificial intelligence (AI) will help to eliminate most of the telecom industry’s shortcomings.

The Tea Board of India:

The Tea Board of India intends to use blockchain technology to improve traceability throughout the whole supply chain. They have been dealing with a decline in the quality of tea produced as a result of adulteration. The use of blockchain technology throughout the supply chain will aid in the keeping of records at each stage. It will help to increase accountability while also allowing authorities to identify and eliminate problem areas.

Blockchain for secured voting:

Three students from Malla Reddy Engineering College for Women have created a novel idea that demonstrates how blockchain technology can be used to safeguard our nation’s electoral system. A pilot project conducted by these students in gated communities and housing estates demonstrated that implementing the concept in real life would be extremely beneficial.

Securities and Exchange Board of India (SEBI):

SEBI has directed all depositories to use blockchain technology to keep records. It will increase transparency in the record-keeping process, as well as in the monitoring of the creation of securities and covenants on non-convertible securities.

Blockchain for Land Records:

India: In 2018, the Uttar Pradesh government announced plans to introduce a blockchain-based record-keeping system to secure land registries and revenue records. Similarly, another state, Andhra Pradesh, is also working with private firms to secure land records in its new capital, Amaravati, using blockchain.

Blockchain for Police Records:

The police force of Goa, a state in western India, has signed a memorandum of understanding (MoU) with blockchain startup 5ire to adopt a blockchain-based record-keeping system. The Goa Police has taken this step to go paperless as well as improve security and transparency to provide better-policing services to citizens.

Although blockchain is a revolutionary technology, as an investor, you might probably be better off reducing your exposure to this highly risky asset. If you are highly optimistic about crypto, then you can limit your investment to at most 10 percent of your investment portfolio. In days to come, we might witness some great use cases and opportunities; till then. Sit tight!

There are numerous other industries where the Indian government plans to implement blockchain technology, aside from those in which it has already been adopted or is in the process of adoption. The Indian government also plans to establish a national blockchain framework that will help transform the future of as many as forty-four sectors, including education, pharmaceuticals, farming, energy, e-governance, and others. Blockchain technology has many potential applications in India, and the government is prepared to make it easier for this new technology to be incorporated and adopted there.

Blockchain technology is certain to change the game for India shortly. It will help in redesigning and eradicating all of the significant issues in the majority of the crucial government services. According to projections, blockchain technology will be worth $176 billion by 2050. Therefore, in the future, India’s adoption of blockchain technology is going to take it to a whole new level and help it move up significantly in the rankings among the countries.

Written by: CA Suraj Kar  

For more information, reach us at support@prudentwealth.in

Get your copy of PW INSIDER now!

Read Next: RBI’s Central Bank Digital Currency (CBDC

What is this journal all about?

Our journal “PW Insider” includes an in-depth analysis of the following:

1. Economic Outlook.
2. How UPI has revolutionized the way we transact?
3. Stocks IN & OUT of Mutual Fund Portfolio. | Laggards & Leaders
4. Insider top 50
5. Entrepreneur of the Month: Shri. P.K. Pradhan – Chairman of Citizen Urban Co-operative Bank Ltd.
6. How to invest in Gold?
7. Upasana Taku: Making Waves in the Indian Fintech?
8. Travel Insurance.

Do check it out!

Publisher Description:

This book is developed in collaboration with Prudent Wealth.

Prudent Wealth is a Professional Financial Planning and Chartered Wealth Management Firm. It is North Bengal and Sikkim’s fastest-growing Financial Consultant and Wealth Management Service Provider. 

We have served over 2,000+ clients and have an AUM of 250+ crores. Prudent Wealth was founded with a vision to provide complete wealth management solutions with professional expertise and the highest level of service standards to its clients. 

Our expertise, knowledge, years of experience, and thorough understanding of finance help the client achieve financial success. Our expertise, knowledge, years of experience, and thorough understanding of finance help the client achieve financial success. 

Get Your Free Journal Now!

Acknowledgment: 

We would like to thank Chandan Ghosh, founder-director of Prudent Wealth, for giving us this opportunity to come up with the journal and share his valuable ideas. We would also like to thank the entire team of MyGoalMySip for their valuable inputs, which have helped us shape this journal.

• Editor PW Insider: Suraj Kar 
• Sub Editor PW Insider: Arpita Chatterjee 

Note to the readers:

This journal is solely developed to help the readers understand the necessity of financial planning, and investing, and its benefits and drawbacks. 

The contents of this publication do not necessarily represent or suggest Prudent Wealth’s endorsement, recommendation, or favoring. This publication is solely intended for educational and informational purposes. 

For more information, reach us at support@prudentwealth.in

Team, MyGoalMySip.

Some recent news headlines reflect the Western world’s troubled and bleak state. One report states that “millions of people in the UK were forced to skip meals or go a whole day without eating in recent months.” 

In France, workers are on strike, demanding better pay amid swirling warnings of a tough winter ahead in Europe. A panel of economic advisers in Germany suggested that energy relief measures be tightened because the benefit should be received by those who actually need it and high-income individuals should bear the costs; raising the top income tax rate or imposing an energy solidarity tax on high-income individuals would help the government fund relief measures. The ongoing crisis also led to four German companies, some over 125 years old, declaring insolvency. 

However, the eurozone witnessed economic growth in the third quarter, but at a slower pace. The real GDP was up by 0.2% QoQ and 2.1% from earlier years. The chaos can be well understood in terms of policy conflicts among the European nations. The European Central Bank (ECB) continues to tighten policy in order to tackle inflation and limit credit growth, while many eurozone governments, on the other hand, are rolling out subsidies to offset rising energy prices and stabilize household purchasing power.

In the USA, the annual inflation rate slowed for a 4th month to 7.7% in October, the lowest since January, and below forecasts of 8%, a sign of slowing inflation in October sparked speculation the Federal Reserve might become less aggressive with interest rate hikes. The interest rate on a 30-year mortgage now exceeds 7%, and as a result, mortgage demand drops sharply. Although interest rates have risen, they remain historically low and below the rate of inflation. Thus, it will likely take further rate hikes to slow the economy. 

Huge numbers of tech employees have lost their jobs in recent days as tech behemoths like Meta, Twitter, Salesforce, and other companies reduce manpower as the year comes to an end. At least 20,300 US tech professionals were laid off in November, with more than 100,000 laid off since the start of the calendar year.

Although in October the US job market continued to perform better than expected, demonstrating a surprising degree of resilience for the US economy in the face of severe headwinds, China has become less transparent, considering the slowing GDP growth. The number of economic indicators released by China’s National Bureau of Statistics has sharply declined, resulting in less clarity about the actual state of affairs. Global funds also paused investment in Chinese equities due to demand for ex-China emerging market strategies. MSCI China has delivered nil returns in the last 30 years, back to where it began.

Economic monthly updates:

• According to FADA, vehicle sales increased by a massive 57 percent in Navratri 2022 on a YoY basis.
• Retail inflation is above expectation at 7.41 percent in September.
• GST collection stood at Rs. 1.52 Lac Cr. For the month of October 2022
• Consumer Confidence in India increased to 80.60 points in September from 77.30 points in July 2022.
• The S&P Global India Manufacturing PMI increased to 55.3 in October 2022 from 55.1 in September
• Services PMI was up to 55.1 in October 2022 from September’s six-month low of 54.3
• September saw the generation of 8.3 crore e-way bills, which is significantly higher than 7.7 crore e-way bills generated in August.
• Data from GSTN showed that over 76.8 million e-way bills were raised in October, compared with more than 84 million electronic permits raised in September.
• Currency with the public rises 71.84% within six years of demonetization in India.

Despite the Fed raising interest rates, the Indian equity market crossed the 18,000 mark on the last day of October and has continued to rise. FIIs, who were net sellers a year ago, are now net buyers. Nifty 1 Year Forward PE stands at 19.6x against its long-term average of 18.5x, and Nifty 1 Year Forward PB is at 31.x against its long-term average of 2.7x. 

The world market cap to GDP ratio is at 97.8%, down from its high in FY22. MSCI India has outperformed MSCI Emerging Markets by a wide margin and delivered superior returns as compared to its peers. A mixed bag of results for the July-September quarter by the Indian Inc. As per Motilal Oswal, the profits of 32 Nifty companies slipped 2% year-on-year, led by global cyclical industries such as metals, oil, and gas. Excluding these, it estimates that the profits grew 25% YoY, led by the BFSI pocket.

Going forward, the market will remain volatile, largely driven by inflation data (global and domestic) and the US Fed and RBI’s decisions to counter the same and geopolitical factors. Furthermore, the possibility of recessions in developed countries cannot be ruled out. The banking and auto sectors look good for the near term.

For more information, reach us at support@prudentwealth.in

Team, MyGoalMySip.

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Read Next: What is a Travel Insurance?

Do you know you can avail of travel insurance at a dirt-cheap price?

If you don’t believe it, you may check the prices online. However, this article is not about a cheap sales tactic, but rather a piece of information that could save your day.  According to the IRDAI study, 3.04 lakh policies for international travel insurance protected 8.27 lakh lives between 2020 and 21.

As we all know, life is unpredictable, and insurance is the best way to protect ourselves from these uncertainties. This insurance is a one-of-a-kind product that provides financial support if something goes wrong while you are on the move. It covers a variety of emergencies, such as unexpected medical or dental needs, theft of belongings or loss of passports, canceled flights, and misplaced or lost luggage.

The Benefits of Travel Insurance Plans:

• This Insurance policy provides compensation for delayed flights or trips when individuals make long trips abroad.
• This insurance policy often covers expenses related to trip cancellation.
• Medical treatments, hospitalization, and hotel accommodations for medical emergencies are also included in this insurance.
• Customers can purchase plans that are customized solely for their trips. The premium amount varies depending on the destination.
• Personal liability, accidental death, legal bills, dental treatments, repatriation, and emergency reunion are all covered by these insurance policies.
• Insurance companies all around the nation provide policyholders with round-the-clock customer service assistance, providing them with the necessary support for loss of documents, accidents, etc.

What are the types of plans available?

1. Overseas tour plans are divided into categories based on the location of the journey, such as special itineraries for Asia, Schengen, the Middle East, America, Canada, Australia, New Zealand, etc.

There are two policies that cover specific regions:

1. Schengen travel insurance: Individuals going to the Schengen area for a maximum period of 90 days must compulsorily obtain this insurance policy or a health insurance plan along with the Schengen Visa.
2. Asia Travel Insurance: Except for a few exceptions, these insurance packages specific to Asian countries provide full coverage for tourists visiting most Asian and Southeast Asian countries.

1. Senior citizen’s plans are designed exclusively for elderly citizens to allow them to transit without concern to any location in the world.
2. A single round trip plan can also be obtained by individuals who want travel insurance for a single journey to a single destination for a specific period.
3. Annual multi-trip plans offer travel insurance protection for a year that covers many overseas trips. Most yearly multi-trip plans provide insurance coverage for trips lasting 30, 45, or 60 days.
4. Family Travel Insurance can be used for a single family that includes the policyholder, his or her spouse, and up to two kids. The majority of these insurance policies include floater benefits for each family member under a single policy.
5. Domestic travel insurance is available to anyone traveling within India.
6. Group Travel Insurance can be used if a group of at least 20 people is traveling together to a single destination.
7. Other plans include
   1. Student Travel Insurance Plan
   2. Corporate Travel Insurance Plans
   3. Extension of Travel Insurance plans

Now that you are aware of the advantages and differences of insurance available in the market, you can compare them online or by calling your agent to find the best offer and get the plan that suits you the best. Ready for the trip?

Writer: CA Suraj Kar 

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