Posts Tagged ‘fixed deposits’

Consumer Confidence In India?? Excellent & On Upswing ;)

Indian COnsumers Most Confident

Despite below average monsoon, INDIA has emerged as the second most optimistic nation across the world in terms of consumer confidence level.

Majority of people have expressed their positive opinion about job prospects, personal finances and their willingness to spend in the next 12 months. 🙂

A survey conducted by global consultancy firm Nielsen throws light in this regard.

🙂

According to the survey, consumer confidence in India is on upswing, registering a 13-point rise to 112 index points in the second quarter, second only to Indonesia (113 points).

🙂

“The recent elections in India have had a positive effect on Indians’ sentiments towards its economy.

With the UPA government back in power for the second-term, consumers are more confident that political and policy continuity will help recover the Indian economy,’’

🙂

The consumer confidence in India witnessed an uptrend on three parameters—

Job Prospects,

Personal Finances and

Willingness to Spend.

🙂

In terms of job prospects, Over half of Indian consumers are optimistic that job prospects will either be excellent (13%) or good (55%) in the next 12 months.

India ranked second after Indonesia in this regard. 🙂

🙂

When it comes to spending habit, about 4% Indians think this is an excellent time to buy the things they want and need, and 39% think it is a good time to buy things.

🙂

Regarding personal finances, Indians are the most optimistic globally as about 9% of Indians think their personal finances would be excellent in the next 12 months and 65% consider they would be good.

🙂 😀

“A stable economy has refurbished Indian outlook on the job market and their personal finances. Indians are relaxing their hold on money and are spending more than they were willing to spend in the last eight months,’’ an expert from Neilsen quoted.

🙂

However, more or less consumer sentiments are positive all across the world, with the Global Consumer Confidence Index, rising to 82 points from 77 points in March.

😀 🙂

Despite below average monsoon, India has emerged as the second most optimistic nation across the world in terms consumer confidence level, with a majority of people having bullish opinion about job prospects, personal finances and their willingness to spend in the next 12 months, a survey conducted by global consultancy firm Nielsen, said on Tuesday.

According to the survey, consumer confidence in India is on upswing, registering a 13-point rise to 112 index points in the secondquarter, second only to Indonesia (113 points). “The recent elections in India have had a positive effect on Indians’ sentiments towards its economy. With the UPA government back in power for the second-term, consumers are more confident that political and policy continuity will help recover the Indian economy,’’ The Nielsen Company associate director (consumer research) Vatsala Pant said. The consumer confidence in India witnessed an uptrend on three parameters—job prospects, personal finances and willingness to spend. In terms of job prospects, India ranked second after Indonesia. Over half of Indian consumers are optimistic that job prospects will either be excellent (13%) or good (55%) in the next 12 months.

Regarding personal finances, Indians are the most optimistic globally as about 9% of Indians think their personal finances would be excellent in the next 12 months and 65% consider they would be good.

“A stable economy has refurbished Indian outlook on the job market and their personal finances. Indians are relaxing their hold on money and are spending more than they were willing to spend in the last eight months,’’ Pant said. When it comes to spending habit, about 4% Indians think this is an excellent time to buy the things they want and need, and 39% think it is a good time to buy things.

Globally consumer sentiments are positive, with the Global Consumer Confidence Index, rising to 82 points from 77 points in March.

Shape your child’s future through MF investment

child investement plans

Retirement and children’s education are the biggest worry of young parents in metros these days. 🙂
Financial advisors say most queries they receive are related to these two crucial issues.

It is rare to find a parent who hasn’t thought of or bought a children’s insurance plan.

🙂

Children’s education is one of the top priorities of urban couples these days. They rightly believe education will be a costly affair, especially if the kid wants to study abroad.

However, when it comes to planning for the event, only some get it right. Most people buy the wrong products without realising that they won’t be able to achieve their goals.

Wrong products may range from fixed deposits and public provident fund to insurance plans.

Interestingly, these experts are unanimous that the equity route, especially via mutual funds (MFs), is preferable to fund the child’s long-term needs.

🙂

We get long queries from parents who want to plan for their children’s future. Though many people opt for insurance products, there are several others who go for mutual funds,’’ says an expert.

“We ask them to take the equity route generally if it is a newborn baby or a very small child. This is because they can benefit from the possibility of higher returns and power of compounding during the accumulation phase,’’ he adds.

🙂

There is a number of schemes in the equity domain. How does one go about it?

For example, you have the option of large-cap funds, mid-cap funds, diversified schemes, index schemes, sectoral and thematic schemes among others under the equity umbrella.

A diversified large-cap scheme is also recommended. One should also avoid thematic schemes that may not last longer as we are talking about 15-20 years here.

🙂

Other experts too advocate index schemes as an option for novices in the stock market.

Since many of these young parents don’t have the experience of investing in stocks, they can go for index schemes with low tracking error (the difference between the index and scheme’s performance) and lower cost.

🙂

Index schemes invest in stocks that form a particular index, that too in the exact weightage each stock has on the index. It is a passive form of investing and considered a cost effective option.

🙂

There are a few things experts want you to remember while investing for children.

🙂

One, always pick up a scheme that has been around for at least five years and been a consistent performer during bull and bear phases.

Also take the money out of equity investments and park it in a safer avenue at least three years before the actual event.

Once you have accumulated the corpus, you should focus on preserving it till the actual event.

You can use the entire corpus if you have to make lump sum payment or use the proceeds from it to fund regular fees.

🙂

Child’s higher education is top priority for urban parents.

Many parents rely on wrong products to achieve the goal.

Equity route is considered best if you have at least 10 years.
You can consider investing in diversified equity scheme or index scheme

Make sure you are picking up a consistently performing scheme.
Transfer money to safer avenues three years before the actual event.

🙂

Retirement and children’s education are the biggest worry of young parents in metros these days. Financial advisors say most queries they receive are related to these two crucial issues. It is rare to find a parent who hasn’t thought of or bought a children’s insurance plan. “Children’s education is one of the top priorities of urban couples these days. They rightly believe education will be a costly affair, especially if the kid wants to study abroad,’’ says a wealth manager, who doesn’t want to be named. “However, when it comes to planning for the event, only some get it right. Most people buy the wrong products without realising that they won’t be able to achieve their goals,’’ he adds. Wrong products may range from fixed deposits and public provident fund to insurance plans. Interestingly, these experts are unanimous that the equity route, especially via mutual funds (MFs), is preferable to fund the child’s long-term needs.

“We get long queries from parents who want to plan for their children’s future. Though many people opt for insurance products, there are several others who go for mutual funds,’’ says Hemant Rustagi, CEO, Wiseinvest Advisors, a wealth management firm. “We ask them to take the equity route generally if it is a newborn baby or a very small child. This is because they can benefit from the possibility of higher returns and power of compounding during the accumulation phase,’’ he adds.

There is a plethora of schemes in the equity universe. How does one go about it? For example, you have the option of large-cap funds, mid-cap funds, diversified schemes, index schemes, sectoral and thematic schemes among others under the equity umbrella. “I would recommend a diversified large-cap scheme. One should also avoid thematic schemes that may not last longer as we are talking about 15-20 years here,’’ says Rustagi. Other experts too advocate index schemes as an option for novices in the stock market. “Since many of these young parents don’t have the experience of investing in stocks, they can go for index schemes with low tracking error (the difference between the index and scheme’s performance) and lower cost,’’ says the wealth manager. Index schemes invest in stocks that form a particular index, that too in the exact weightage each stock has on the index. It is a passive form of investing and considered a cost effective option.

There are a few things experts want you to remember while investing for children. One, always pick up a scheme that has been around for at least five years and been a consistent performer during bull and bear phases. “Never go for ‘flash in the pan’ kind of performance. You should make sure the scheme is actually looking to generate long-term returns rather than taking unnecessary risks to post huge returns during a particular phase,’’ says the wealth manager. Hemant Rustagi also wants you to take the money out of equity investments and park it in a safer avenue at least three years before the actual event. “Once you have accumulated the corpus, you should focus on preserving it till the actual event. You can use the entire corpus if you have to make lump sum payment or use the proceeds from it to fund regular fees,’’ he says.

NO KIDDING WITH JUNIOR’S EDU

Child’s higher education is top priority for urban parents

Many parents rely on wrong products to achieve the goal

Equity route is considered best if you have at least 10 years

You can consider investing in diversified equity scheme or index scheme

Make sure you are picking up a consistently performing scheme

Transfer money to safer avenues three years before the actual event

Banks push for more attractive FDs.

Banks push for more attractive FDs

Banks push for more attractive FDs

The banks are lobbying with the finance ministry to get their share of the pie. According to the sources, Indian Banks Association (IBA) wants some incentives in order to keep the fixed deposits attractive.

On one side the Finance Minister wants bankers to charge less for their loans while on the other hand, the bankers also want their share from him, including a proposal to make fixed deposits more attractive.

According to sources, the IBA is suggesting to treat the fixed deposits at par with sec 80 C instruments like Employees Provident Fund (EPF) as well as Public Provident Fund (PPF) and National Savings Scheme (NSS). Besides this, it also wants the minimum lock in period for long term Fixed Deposits (FD) to 3 years from 5 years currently.

Banks that witnessed funds flying in during the stock market meltdown are worried that the reverse could be happening right now with competition from equity driven investments like mutual funds.

However, the debate to bring down the interest rate on small saving schemes is still going on, the banks are gearing up for the competition from the equity market instruments as and when the market sentiment improves. To make FDs more attractive is critical to ensure the lone term availability of long term funds for banks.