How much is enough?

Chasing more doesn't make us happier.The thrill of new acquisitions fade quickly, while the paradox of choice leaves us drained and uncertain.Minimalosm is a grounded alternative - a way of living that protects attention, reduces stress,strengthens values.When we choose less, we make more space, clearer identity and a more meaningful use of our time and energy. Enough is NOT a number - it's a mindset.when you learn to notice that the pursuit of more is pulling you away from the life I actually want to live.This minimalism and the pursuit of it gives us the tools to step off the treadmill and reconnect with contentment that lasts. Step away from confusing 'more' with 'better'- and soon enough is enough!

The Pizza Story - courtesy Finshot

The Story There are usually two ways a company can capture a market. One, it can take the first-mover leap into uncharted waters, introducing a product no one’s seen before. It breaks in, learns the ropes, adapts, and grows with the market. Two, if the first mover has already nailed it, you still enter—only this time, you play the challenger, trying to win by doing things differently. And every industry has both kinds of players. In food delivery, Zomato set the pace, while Swiggy and Rapido came in later as challengers. In quick commerce, Blinkit took the early lead, followed by Zepto and Instamart. In ride-hailing, Ola was the pioneer, with Uber and Rapido following suit. But in today’s story, we’re zooming in on India’s quick service restaurant (QSR) market. More specifically the pizza game. Here, there’s no debate about who the first mover is. It’s Domino’s. The challengers? Pizza Hut, La Pinoz and a bunch of smaller regional brands. Now, whether you’re a successful first mover or a competitor, it’s not easy being either. Both need to fight hard to hold onto their slice of the pie. Because first movers don’t always stay on top forever. Except Domino’s in India has managed to do exactly that. It entered the country in 1995, right when India was opening up its economy to the world. Back then, most people weren’t exactly craving a foreign dish with bread, cheese and tomato sauce. But Domino’s figured out what mattered most — price and taste. So it created a range of affordable pizzas tailored to Indian palates. Vegetarian toppings. Tandoori flavours. Pocket-friendly meals. The formula clicked. Even Pizza Hut tried to play the same card, but Domino’s had already grabbed the first-mover advantage. And today, it controls more than half of India’s organised pizza market and nearly 70% of online pizza delivery. Everyone else is still trying to catch up. Which makes it all the more surprising that Papa John’s, another big American pizza chain, wants to return for another shot at India, despite failing miserably the first time. For context, Papa John’s is the world’s third-largest pizza chain. It quit India in 2017 after a disappointing decade-long run. But now it’s back. Its first new store will open in Bengaluru in a couple of months, with plans to launch 650 outlets across the country over the next few years. But why try again after burning your fingers once, you ask? To answer that, let’s rewind to why Papa John’s failed the first time around. The simplest explanation is this: everything Domino’s did right, Papa John’s didn’t. To begin with, when it entered India in 2006, its goal was to challenge Domino’s and Pizza Hut. It saw a booming middle class and aimed to ride the wave. But instead of adapting, it stuck to its American playbook. It positioned itself as a premium brand and stuck to the same US menu. That meant pizzas topped with red meats like pork and beef — items most Indians either don’t eat for cultural or religious reasons. Domino’s, meanwhile, had quickly realised that winning here meant bending to Indian tastes, not the other way around. Papa John’s also priced itself higher. But this was the era when India’s millennials — the first generation to spend a significant chunk of their food budgets, nearly 10% compared to just 3% for their parents — were discovering cheap Domino’s pizzas. Domino’s quickly became the go-to comfort food, while Papa John’s was seen as the overpriced outsider. And then there was expansion. By 2017, Papa John’s had only 66 stores in 11 cities, while Domino’s had over 1,000 outlets across more than 200 cities. It aggressively moved into Tier-2 and Tier-3 towns, becoming the first international food chain in many smaller places. Add to that its famous “30 minutes or free” delivery and consistent customer service, and Domino’s locked in loyalty across the board. Put all this together, and you’ll see why Papa John’s simply couldn’t keep up. With a weak strategy, slow expansion and managerial missteps, it was forced to bow out. And fast forward to today, things have changed even more. Domino’s has ballooned to over 2,240 outlets in India. Its nearest competitor, Pizza Hut, has less than half that number. And now, regional pizza chains have muscled their way in too, grabbing nearly 30% of India’s organised pizza market. India’s La Pinoz Pizza is even trying to take on the American giants at a national level. In other words, competition is tougher than ever. And conditions aren’t exactly favourable either. Discretionary spending has slowed, with India’s middle class saving less. Input costs for QSRs have gone up. And the price wars sparked by food delivery platforms offering steep discounts have further squeezed margins. Even Domino’s isn’t immune. When Papa John’s left India, its operating margin was just 4.6%, compared to Domino’s 9.7%. Today, Domino’s revenues are growing in double digits most years, and its operating margins have doubled to around 19%. But its net profit margins have actually fallen from 4.8% to 3.2%, over the last decade. Thanks to rising costs like rent and staff salaries. In short, even the market leader is struggling to protect its bottom line. So for Papa John’s, entering this battlefield will be anything but easy. Which brings us back to the question: why bother coming back? Well, maybe Papa John’s has been swept up by the “escape competition effect”. To understand what that means, imagine a race where runners are shoulder-to-shoulder. The pressure doesn’t make them drop out. Rather, it pushes them to run harder and find new techniques to win. Businesses often work the same way. Intense competition can force companies to up their game, adopt new models or simply do things better. And perhaps Papa John’s sees India not as a hopelessly saturated market, but as a place where innovation could give it an edge. And the lure is obvious. India’s pizza market is already worth ₹15,000 crores and is growing at 9.3% annually. The country has a massive, young population and pizza penetration is still low compared to other global markets. Which means there’s plenty of headroom for growth. The pie itself is getting bigger, even if Domino’s still hogs most of it. Plus, this time, Papa John’s is also entering with a new partner — PJP Investments Group, backed by Dubai-based Levant Capital. PJP already operates over 100 Papa John’s outlets across the UAE, Saudi Arabia and Jordan. In other words, they’ve got experience adapting the brand outside the US and dealing with diverse consumer bases. That might just help them avoid the mistakes of the past. And maybe that’s what it’ll take — knowing what not to do. Sure, it might sound like Papa John’s will have to copy Domino’s or Pizza Hut, but if it wants to compete, it can’t just copy-paste. Instead, it’ll have to carve out its own niche and offer something unique, just like its tagline: “Better Ingredients. Better Pizza”. Until next time… Don’t forget to share this story on WhatsApp, LinkedIn and X.

The Law of the Farm

The Law of the Farm is a concept that illustrates the importance of patience, discipline, and long-term thinking in investments. The law states: The Law of the Farm You reap what you sow. You reap later than you sow. You reap more than you sow. This law can be applied to investments in the following ways: *1. You Reap What You Sow* - The quality of your investments determines the quality of your returns. - Investing in high-quality assets, such as dividend-paying stocks or index funds, can lead to better returns over time. *2. You Reap Later Than You Sow* - Investments take time to mature. - It's essential to have a long-term perspective and avoid expecting quick returns. - The power of compounding works in your favor over time, but it requires patience. *3. You Reap More Than You Sow* - The magic of compounding helps your investments grow exponentially over time. - Small, consistent investments can lead to substantial returns in the long run. - The earlier you start investing, the more time your money has to grow. By applying the Law of the Farm to investments, you can: - Develop a long-term perspective - Focus on quality investments - Cultivate patience and discipline - Harness the power of compounding Remember, investing is a journey that requires time, effort, and perseverance. By following the principles of the Law of the Farm, you can set yourself up for success and achieve your financial goals.

Look before you leap

"Look before you leap" - mutual funds and wealth management savings in India: When it comes to investing in mutual funds or wealth management savings in India, it's essential to exercise caution and careful consideration. The age-old proverb "Look before you leap" couldn't be more apt. With numerous investment options available, investors must take the time to assess their financial goals, risk tolerance, and time horizon before making a decision. A well-informed decision can help avoid costly mistakes and ensure that investments align with one's financial objectives. In the Indian mutual fund landscape, there are various schemes catering to different investor needs. From equity and debt funds to hybrid and index funds, the choices can be overwhelming. Before investing, it's crucial to look at factors such as the fund's performance track record, expense ratio, and portfolio composition. Additionally, investors should consider consulting with a financial advisor or conducting their own research to ensure they're making an informed decision. By looking before leaping, investors can set themselves up for long-term financial success.

Financial Budgeting and well-being

WHY IS BUDGETING IMPORTANT FOR YOUR FINANCIAL WELLBEING? Budgeting is a crucial aspect of personal finance that plays a significant role in ensuring an individual's financial well-being. Here are some reasons why budgeting is important: Tracking Expenses 1. *Identify areas of overspending*: Budgeting helps individuals understand where their money is going, making it easier to identify areas where they can cut back. 2. *Prioritize spending*: By allocating funds to different categories, individuals can prioritize their spending based on their financial goals. Managing Finances 1. *Create a financial roadmap*: A budget serves as a roadmap for achieving financial goals, such as saving for retirement, paying off debt, or building an emergency fund. 2. *Make informed financial decisions*: With a clear understanding of their financial situation, individuals can make informed decisions about investments, loans, and other financial opportunities. Reducing Financial Stress 1. *Reduce debt*: Budgeting helps individuals manage debt by allocating funds towards debt repayment and avoiding new debt. 2. *Build an emergency fund*: By setting aside a portion of their income, individuals can create a safety net to cover unexpected expenses, reducing financial stress. Achieving Long-Term Goals 1. *Retirement planning*: Budgeting helps individuals save for retirement by allocating funds towards retirement accounts, such as 401(k) or IRA. 2. *Wealth creation*: By investing wisely and avoiding unnecessary expenses, individuals can create wealth over time. Improving Financial Discipline 1. *Develop a savings habit*: Budgeting helps individuals develop a savings habit, which is essential for achieving long-term financial goals. 2. *Avoid impulse purchases*: By prioritizing spending and allocating funds wisely, individuals can avoid making impulse purchases that can derail their financial progress. In conclusion, budgeting is essential for achieving financial well-being. By tracking expenses, managing finances, reducing financial stress, achieving long-term goals, and improving financial discipline, individuals can take control of their financial lives and secure a brighter financial future.

Stress Free!

All this talk of Stress Tests on mid cap and small cap funds....all because of the extra 'froth' that every good cup of coffee has...and attracts! My point is asset allocation is a function of your Risk Profile and Risk appetite. As per your portfolio plan, you would allocated funds into the asset class with time horizons proportionately. Surely, it could not have been looking at liquidity, days for liquidation of portfolio, when deciding on a mid cap or small fund! A pure overnight or liquid fund will be just right for that. So if a frothy coffee excites you, remember there is a Starbucks price to it, there is a doctor signoff based on your health condition...and most importantly why you are having the coffee?!! Is it time pass, grabbing a quick bit before you move on or it is a deliberate SIP ..before better things ahead?!! Life is not all about stress tests only....but health is! So healthy diet, healthy lifestyle and planned investments...the road to Stress free life. #joyofliving #joyofinvesting #stressfree

In Iraq’s book market, books remain on the street at night. Iraqis say, _the reader doesn’t steal, the thief doesn’t read._ Carrying a line of dichotomy in finance, let us say, _the one in a hurry doesn’t make money, the one making money is never in a hurry._ In the last 43 years of Sensex, across ~11000 trading days, here is the data proving this simple fact: Positive and negative returns were observed as follows: ♻️ Daily: 53% positive, 47% negative ♻️Weekly: 56% positive, 44% negative ♻️ Monthly: 61% positive, 39% negative ♻️ Quarterly: 64% positive, 36% negative ♻️ Yearly: 72% positive, 28% negative ♻️ 3 years: 89% positive, 11% negative ♻️ 5 years: 96% positive, 4% negative ♻️ 10 years: 100% positive, 0% negative #joyofinvesting #blueskypremiere #whatsapp8697729504 courtesy Axis AMC

Spending smartly during the festive season

*Spend smartly this festive season* In October, thanks to Durga Pujo, Navratri and Dusshera, e-commerce websites, retail chains, and independent neighbourhood stores are rolling out festive shopping offers. Make a budget and track your shopping expenses during the festival season. Prepare a list of gift items that you need to buy, use cards from partner banks for additional discounts and cashbacks. Redeem reward points for additional savings. Avoid shopping for things you may not use immediately, thus, avoiding impulsive spending and *redemption of investments.* Blue Sky Premiere introduces *LAMF (Loan against Mutual Funds)*. Lien your Debt/Mutual fund units and take short term credit against them. Instant disbursal of amount at low interest rate. To know more click here : https://rb.gy/f8y3j

The Ethical Blueprint: Embracing the ESG Mandate Overview: ESG stands for environmental, social, and governance. It is a framework used to assess an organization's performance on sustainability and ethical issues. It also provides a way to measure business risk and opportunities in those areas. ESG factors include climate change, pollution, human rights, labor practices, and corporate governance. ESG is becoming increasingly important for businesses and investors. A growing number of consumers and investors are demanding that companies take ESG factors into account. This is because ESG factors can have a significant impact on a company's long-term financial performance. Components of ESG – (A) Environmental: This refers to a company's impact on the environment. Key considerations under this pillar include climate change, deforestation, biodiversity, renewable energy, waste management, water conservation, and pollution. • Greenhouse gas emissions: Companies that emit a lot of greenhouse gases are contributing to climate change. This can lead to a number of negative consequences, such as rising sea levels, more extreme weather events, and food shortages. • Water usage: Companies that use a lot of water can put a strain on local water resources. This can lead to water shortages and other problems. • Waste disposal: Companies that produce a lot of waste can pollute the environment. This can lead to health problems and other environmental damage. (B) Social: This dimension revolves around how companies manage relationships with employees, suppliers, customers, and communities. It covers aspects like human rights, labor standards, health and safety, and community engagement. • Labor practices: Companies that have poor labor practices may exploit their workers. This can lead to a number of problems, such as low wages, unsafe working conditions, and child labor. • Human rights: Companies that violate human rights may harm their employees, customers, and suppliers. This can lead to a number of problems, such as discrimination, forced labor, and environmental degradation. • Diversity and inclusion: Companies that are not diverse and inclusive may have a negative impact on their employees, customers, and suppliers. This can lead to a number of problems, such as a lack of innovation, low morale, and poor customer service. (C) Governance: This refers to a company's internal controls and corporate structure and largely revolves around topics like corporate board diversity, executive remuneration, audits, internal controls, shareholder rights, and transparency in financial reporting. • Board composition: Companies with boards that are not diverse and independent may be more likely to make poor decisions. • Executive compensation: Companies that pay their executives too much may be less likely to invest in their businesses. • Shareholder rights: Companies that do not respect shareholder rights may be less likely to be accountable to their stakeholders. The three pillars of ESG are interconnected. For example, a company with poor environmental performance is more likely to have poor social and governance performance. This is because environmental problems can often lead to social problems, such as pollution and climate change. And poor social and governance performance can also lead to environmental problems, such as deforestation and water pollution. Why is ESG important for companies: Adherence to good ESG practices is important for companies for the following reasons- • Risk Management: Companies with strong ESG performances are perceived to have better risk management practices. This reduces the vulnerability to regulatory, legal, and societal changes. • Performance and Competitiveness: Studies suggest a positive link between ESG and financial performance. Moreover, companies that adopt ESG practices can attract and retain top talent, ensuring competitiveness in the market. • Long-Term Vision: ESG-focused companies and investors often think long-term, prioritizing sustainability and enduring value creation. • Stakeholder Trust: Companies that adhere to ESG principles tend to enjoy enhanced trust among stakeholders, including consumers, employees, and the community at large. Rating criteria: ESG scores are typically calculated by combining a company's performance on multiple ESG factors. The scores are then used to rank companies from best to worst in terms of their ESG performance. ESG scores can be used by investors and companies to make decisions about investments and business practices. Investors can use ESG scores to identify companies with strong ESG performance. Companies can use ESG scores to identify areas where they can improve their ESG performance. To assess a company's ESG performance, several rating agencies have emerged, each with its methodology. However, common criteria include: • Disclosure and Transparency: How openly a company shares its ESG data and practices. • Absolute Performance: Evaluation of a company’s ESG data in absolute terms. • Relative Performance: Comparing a company's ESG performance against its peers. • Direction of Change: How a company's ESG performance is evolving over time. Aditya Birla Money Ltd, a responsible research house have started publishing ESG score in their research reports. The reports use Crisil/Bloomberg ESG scores to benchmark the performance of companies on ESG parameters. The companies are assigned a score between 0-100 gauging a company's commitment and effectiveness in addressing sustainability and ethical practices. A score of 0 indicates a complete lack of ESG initiatives and possible neglect of environmental, social, and governance responsibilities, while a score of 100 represents an exemplary commitment to sustainable and ethical practices in all ESG domains. Companies that score closer to 100 demonstrate a higher dedication to sustainable business practices, stakeholder engagement, and governance transparency. These scores are further categorised in 7 grades ranging from Poor to Ideal for graphical representation on a colour scale as demonstrated below0-14 (Poor), 15-28 (Below Average), 29-42 (Average), 43-56 (Adequate), 57-70 (Above Average), 71-84 (Strong) and 85-100 (Ideal)

 

What happens to your provident fund after early retirement?

EPF – Employees’ Provident Fund.

If you are a salary earner, you can choose to contribute 12 per cent of the basic income and dearness allowance to EPF each month due to the following reasons:

The monthly contributions are eligible for tax deduction (old tax regime only)

Your savings will earn tax-free interest The money deposited can come in handy during an emergency It can be a retirement corpus

When you withdraw your provident fund, the entire amount is exempt from tax .

 

Question 1: What will happen to the EPF account if you retire early? The account will remain operable for three years after retirement. For instance, if you retire today - August 2023 - at the age of 52, the EPF account will remain operable until August 2026.

 Question 2: Will my EPF money continue to earn interest? Yes, it will earn interest as long as the EPF account is operable. And as you know, the EPF account is operable for three years after you have retired. Just an added information, you'll earn an interest of 8.15 per cent this financial

Question 3: Is the interest I earn on EPF tax-free?
As long as you are employed and contributing to the EPF, the interest you earn is exempt from tax. However, once you retire, the interest you earn is taxable. In this case, the interest is added to your annual income and then taxed accordingly.

The last word
Don't forget to withdraw your money while your EPF account is still operable. Because if you fail to remember and your EPF account becomes inoperable after three years, your hard-earned corpus will stop earning further interest, and inflation will reduce the value of the savings gradually.

 

 Start that Emergency Fund...make a beginning!

One of the most famous adages about savings goes, ‘A penny saved is a penny earned’.

While emphasizing the importance of saving, what this saying means is that setting aside money from your existing funds is as good as earning it.

There are several reasons why one needs to save. Its merits include -- being prepared for emergencies, fulfilling your financial and material goals, and eventually building wealth over the long term.

Financial goals would typically include, but not be limited to, buying a house, securing funds for children’s education and marriage, funds for retirement, a dream car, vacations and adequate health care etc.

While saving is the primary step to all of these, one also needs to define their goals, how much money each of these goals would require, choose the relevant instruments and allocate funds accordingly.

Goals could be short-term or long-term in nature, but foremost is that one needs to build and maintain an emergency corpus.

What exactly is this corpus, and how does one work towards it?

As its name suggests, an emergency corpus is meant to come in handy in emergencies and should be strictly kept separate from regular savings or funds earmarked for specific goals.

These funds could ideally be about three-six months of your living expenses and can be invested or kept in an instrument where it is easily accessible. For instance, many investors prefer  these funds to be parked in a liquid fund or a savings account.

An unexpected medical expense is something you could dip into your emergency funds for. A loss of a job or any other unforeseen crisis is also something for which your emergency corpus could come in handy.

The need for money is inevitable for tackling these situations at most times, and not having the funds at that time may lead to one borrowing the funds at unfavorable rates, which is another burden to deal with.

 Zhou Daxin’s latest novel, “The Sky Gets Dark Slowly”. It is a sensitive exploration of old age and the complex, hidden emotional worlds of the elderly in a rapidly ageing population.

In it he writes, “…Many elderly speak as though they know everything, but of old age they are in fact as ignorant as children. Many elderly are in fact, completely unprepared for what they are to face when it comes to getting old and the road that lay ahead of them.

“In the time between a person turning 60 years old, as they begin to age, right until all the lights go out and the sky gets dark, there are some situations to keep in mind, so that you will be prepared for what is to come, and you will not panic.

ONE. The people by your side will only continue to grow smaller in number. People in your parents’ and grandmothers’ generation have largely all left, whilst many of your peers will increasingly find it harder to look after themselves, and the younger generations will all be busy with their own lives. Even your wife or husband may depart earlier than you, or that you would expect, and what might then come are days of emptiness. You will have to learn how to live alone, and to enjoy and embrace solitude.

TWO. Society will care less and less for you. No matter how glorious your previous career was or how famous you were, ageing will always transform you into a regular old man and old lady. The spotlight no longer shines on you, and you have to learn to contend with standing quietly in one corner, to appreciate the hubbub and views that come after you, and you must overcome the urge to be envious or grumble.

THREE. The road ahead will be rocky and full of precarity. Fractures, cardio-vascular blockages, brain atrophy, cancer…these are all possible guests that could pay you a visit any time, and you would not be able to turn them away. You will have to live with illness and ailments, to view them as friends, even; do not fantasize about stable, quiet days without any trouble in your body. Maintaining a positive mentality and getting appropriate, adequate exercise is your duty, and you have to encourage yourself to keep at it consistently. 

FOUR. Prepare for bed-bound life, a return to the infant state. Our mothers brought us into this world on a bed, and after a journey of twists and turns and a life of struggle, we return to our starting point – the bed –and to the state of having to be looked after by others. The only difference being, where we once had our mothers to care for us, when we prepare to leave, we may not have our kin to look after us. Even if we have kin, their care may  never be close to that of your mother’s; you will more likely than not, be cared for by nursing staff who bear zero relation to you, wearing smiles on their face all whilst carrying weariness and boredom in their hearts. Lay still and don’t be difficult; remember to be grateful.

FIVE. There will be many swindlers and scammers along the way. Many of them know that the elderly have lots of savings, and will endlessly be thinking of ways to cheat them of their money through scam phone calls, text messages, mail, food and product samples, get-rich-quick schemes, products for longevity or enlightenment… basically, all they want is to get all the money. Beware, and be careful, hold your money close to you. A fool and his money are soon parted, so spend your pennies wisely.

Before the sky gets dark, the last stretches of life’s journey will gradually get dimmer and dimmer, naturally it will be harder to see the path ahead that you are treading towards, and it will be harder to keep going forward. As such, upon turning 60, it would do us all well to see life for what it is, to cherish what we have, to enjoy  life whilst we can, and to not take on society’s troubles or your children’s and grandchildren’s affairs for yourself. Stay humble, don’t act superior on account of your own age and talk down to others – this will hurt yourself as much as it will hurt others. As we get older, all the better should we be able to understand what respect is and what it counts for. In these later days of your lives, you have to understand what it means, to let go of your attachments, to mentally prepare yourself. The way of nature is the way of life; go with its flow, and live with equanimity.

For all of us, a nice read, very beautiful, very true!

Hardly the day started and … it is already six o’clock in the evening.

Barely arrived on Monday and it’s already Friday.

… and the month is almost over.

… and the year is almost up.

… and already 50 or 60 or 70 years of our lives have passed.

… and we realize that it is too late to go back…

So…Let’s try to take full advantage of the time we have left …

Let’s not stop looking for activities that we like…

Let’s put color in our grayness…

Let’s smile at the little things in life that put balm in our hearts.

And yet, we must continue to enjoy serenely the time that remains.

Let’s try to eliminate the ‘after’…

I do it after…

I will say after…

I will think about it after…

We leave everything for ‘later’ as if ‘after’ was ours.

Because what we do not understand is that:

after, the coffee cools…

after, priorities change…

after, the charm is broken…

after, health passes…

after, the children grow up…

after, the parents get older…

after, the promises are forgotten…

after, the day becomes the night…

after, life ends…

And all that ‘after’, we find it’s often too late…

So… leave nothing for ‘later’…

Because in always waiting for later, we can lose the best moments,

the best experiences,

the best friends,

the best family…

The day is today…The moment is now…

We are no longer at the age where we can afford to postpone until tomorrow what needs to be done right away.

So let’s see if you’ll have time to read this message and then share it.

Or maybe you’ll leave it for…’later’…

And you will not share it “ever’ ’’

Even share with those who are not yet ‘seniors’.

May you be well and happy…

Russia plays hard ball..US Recession in the offing?

 Kitco News) Russia's central bank resumed its gold purchases from local banks on Monday, but it set a fixed price on the precious metal.

Starting this week, the Russian central bank will pay a fixed price of 5,000 roubles ($52) per gram between March 28 and June 30, the bank said on Friday. This is below the current market value of around $68.

The central bank added that the resumption in buying will ensure supply and uninterrupted production of local gold.

Two weeks ago, Russia's central bank announced that it was halting its official gold purchases from local banks due to a surge in demand from regular consumers. This is because Russians went on a gold buying spree in March to protect their savings as the ruble collapsed. Major banks in Russia reported a rush of consumers investing in bullion and coins.

Sberbank, Russia's largest financial institution, reported that demand for gold and palladium has quadrupled in the last few weeks. Meanwhile, Russia's Ministry of Finance also referred to gold as an "ideal alternative" to the U.S. dollar.Setting fixed price for gold reminds some analysts of what the U.S. did during the “gold standard” years. The period between 1879 and 1914 is known as the classical gold standard era, during which one ounce of gold would represent $21. Then in the 1930s, the U.S. banned gold ownership and raised the value of the dollar in gold from $20.67 to $35 per ounce.

That price remained fixed until 1971 when Richard Nixon put a halt on the U.S. dollar's convertibility into gold, which meant that other countries could no longer redeem dollars for gold. In 1973 the gold standard was scrapped.

"I am reminded of what the U.S. did in the middle of the Great Depression. For the next 40 years, gold's price was pegged to the U.S. dollar at $35. There is a precedent for this. It leads me to believe that Russia's intention would be for the value of the ruble to be linked directly to the value of gold," Gainesville Coins precious metals expert Everett Millman told Kitco News. "Setting a fixed price for rubles per gram of gold seems to be the intention. That's pretty important when it comes to how Russia could seek funding and manage its central bank financing outside of the U.S. dollar system."

Gold is one of the most logical international currencies to use when you are trying to get around sanctions, Millman added.

Sanctions against Russian gold- Last week, the U.S. Treasury banned all gold transactions with Russia's central bank.

"U.S. persons are prohibited from engaging in any transaction -- including gold-related transactions -- involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation," the Treasury said on its website.These types of sanctions could be effective to an extent, said Millman. "It can have a significant impact if for no other reason than to force other partners to shy away from doing transactions with Russia in gold. At the same time, knowing that the global gold market can be rather opaque, it would be much more difficult to enforce that type of restriction or regulation," he explained.

In response to escalating sanctions from the West for Russia’s invasion of Ukraine, Moscow said that "unfriendly" countries could be required to pay for Russian gas in rubles or gold, according to the chair of Russia's Duma Committee on energy."If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us; this is the national currency," Pavel Zavalny said at a news conference on Thursday.

Russia is also considering accepting Bitcoin for its oil and gas exports and being more flexible in general regarding payment options with "friendly" countries.

"We have been proposing to China for a long time to switch to settlements in national currencies for rubles and yuan … With Turkey, it will be lira and rubles," Zavalny said. "You can also trade bitcoins."

This coincides with the fact that the US yield curve, especially between the 2Y and 5Y tenure is getting inverted which has indicated onset of recession in their economy in the past.

Win With SIP ... especially with summer round the corner!

 

 Systematic Investment

Plan (SIP)

A SIP is nothing but a method of investing in mutual funds.

It involves investing a fixed amount of money at regular intervals in the selected mutual fund scheme.

Its core premise is that it ensures money is invested in a consistent and regular manner in mutual fund/s of investors’ choice.

Investors can set up one or several SIPs across different schemes, directed at different goals as per their convenience, affordability and preferred frequency.

Why opt for SIPs?

Choosing the SIP mode of investing offers several benefits to investors, such as:

• • Slow & Steady Wins the Race

  
  

  When market is at a low or making new highs, investors either get wary and exit the market or rejoice with the booming market. SIP investing keeps you steady on your financial roadmap by ensuring investments are made consistently towards your goals.

  
  

• • Removes the Need to Time the Market

  
  

  Through an SIP, an investor invests smaller amounts across several dates instead of investing a big amount on a single date. So, for the same investment amount he gets more units when the market is falling, and get fewer units when market goes up, ultimately averaging out the cost of his investment. This helps him navigate market volatility without the need to time the market.

• • Multiple SIPs for Multiple goals

  
  

  Investors can have different goals at different points of their life – be it smaller goals such as buying a car or funding a holiday or larger, more critical goals like retirement. In fact, you may even have separate goals for each of your family members. SIP can be used to achieve these multiple goals. Investors can set up different SIPs in different funds to suit different goals.

• • A Small Gateway to a Huge Universe

  
  

  SIP enables investors to invest across different asset classes like equity, debt, gold etc. with small investment amounts. SIP can be started with monthly investments of as low as INR 500.




SIP can easily be considered a small package that packs a big punch in our long term goals. And with dedicated SIP for every goal, we can all aim for a fulfilling and enriched life as every dream comes alive and we can #WINWITHSIP

 

Buy on Dips....

While it is prudent to brace for some more short-term weakness, the key question is whether investors should run away amid the softness or invest more amid correction. Investors should use this opportunity to buy on decline and the reasons are not hard to find.

Unlike the past when FIIs used to rule the bourses, the long-term journey of Indian markets will ride on domestic liquidity. India’s changing demographics with a young population having no social security benefits coupled with negative real interest rates, augur well for domestic inflows to equities. The record number of new demat account openings and the soaring monthly contribution to SIP (systematic investment plan) stand testimony to the same. This domestic liquidity should provide downside support to equities.

On the other hand, earnings, which is the ultimate driver of equities irrespective of myriad noises, is looking stronger than ever before. The revival from Covid’s deadly second wave has been sharp and swift in India. Growth is looking up and the impact of Covid has been positive for organised players who have pushed efficiency to the hilt and managed their houses well despite extreme gross margin pressure due to a rise in raw material prices.

Do not expect any major negative earnings impact on Nifty in the next couple of years, as the two heavyweight sectors, namely financials and technology look to be in fine fettle. Riding on recovery and better asset quality, we expect financials to manage the marginal pressure on interest margins. The unprecedented demand for digitisation and the gradual easing of talent shortage augur well for technology earnings, and the currency depreciation could be a feather in the cap. The diversified heavyweight conglomerate Reliance Industries should continue to benefit from recovery in all its businesses. With very little weight of cyclicals, we rule out  meaningful downgrade to Nifty earnings.

 

 Courtesy : Finshots

Food for thought...I thought you might want to ponder over...

What is the Inflation data really telling us?

Last week, everybody had a chance to look at India’s Wholesale Price Index for November and lo and behold, it was at a 30-year high! So in today’s Finshots, we explain inflation and see what the numbers are really telling us.

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Economy

The Story

To understand inflation in India, we need to go over a couple of things. First, there’s the Wholesale Price Index (WPI). It measures how prices are changing at the wholesale level — when goods are traded in bulk between businesses. Then, there’s the Consumer Price Index (CPI). It tells us about the change in prices of goods and services that we consume on a daily basis.

In other words, WPI affects businesses and CPI affects consumers. And while there is an obvious interplay between the two, they offer distinct insights. Take for instance India’s WPI figure at the moment. It stands at a whopping 14.2% — meaning prices have increased by a staggering 14% in November 2021, compared to the same period last year. In fact, we haven’t seen such highs since 1991!

And while some people would brush this off as an aberration, that assessment isn’t entirely accurate either. WPI has been heading upwards for a while now while CPI is still hovering at a modest 4.9%. Sure, the CPI figure isn’t something to boast of either, but it’s still not rising exponentially like the wholesale price index. Which means we need to look at this and ask — “Why the divergence?”

Well, truth be told, there’s still a lot of debate on why this is happening. Typically, whenever WPI and CPI diverge, everyone points to how the indices are constructed. Let’s take food for instance. 50% of the CPI is attributable to food prices alone. However, in the WPI index, food contributes only 15% to the final figure. The largest weights are assigned to “manufactured products”. This includes a lot of things that businesses use — like textiles, chemicals, cement, metals, etc.

So, a quick reading of the numbers will tell you that it’s the raw materials doing all the damage. And one popular theory explaining this figure goes something like this — Businesses are recovering faster from the pandemic. So, they’re demanding raw materials to produce more goods. And more demand inevitably leads to higher prices. But there have been disruptions in the supply chain as well. And when these disruptions don’t ease quickly, prices start climbing some more.

However, if businesses in India are experiencing high prices, why aren’t they passing it along to consumers? Why aren’t we feeling the pinch?

Well for starters, we are feeling the pinch. FMCG companies have slowly been hiking prices. Paint companies are revising their pricing structure. And cooking oil is on a tear. However, they haven’t been able to pass on all of their costs because they’re still tentative about demand. If people are still holding on to their purse strings, they have little incentive to hike prices. If they go against the grain and hike prices nonetheless, it may affect their business some more.

But make no mistake, companies can’t keep absorbing costs forever. Even on the services side (classified under miscellaneous), prices are rising. Telecom companies have hiked prices by 25% after a long hiatus. Recreation and amusement inflation is also at its highest since 2012. And restaurants are also taking a good hard look at their prices.

However, these don’t reflect all that well in the CPI, because as we noted, food and beverages dominate that index. If you remove food & beverages, as well as fuel, and measure the variation in prices elsewhere (called core CPI) — then you’ll see that figure is at a 5-month high — at 6.08%. So prices are rising across the board. It’s just that we have to be a little bit careful in drawing our conclusion from CPI and WPI index at such a time.

And here’s hoping that WPI inflation eases up in 2022. Because if it doesn’t it is likely that we will feel the pinch much harder soon enough.

The Sky Gets Dark Slowly

 Zhou Daxin’s latest novel, “The Sky Gets Dark Slowly”. It is a sensitive exploration of old age and the complex, hidden emotional worlds of the elderly in a rapidly ageing population.

In it he writes, “…Many elderly speak as though they know everything, but of old age they are in fact as ignorant as children. Many elderly are in fact, completely unprepared for what they are to face when it comes to getting old and the road that lay ahead of them.

“In the time between a person turning 60 years old, as they begin to age, right until all the lights go out and the sky gets dark, there are some situations to keep in mind, so that you will be prepared for what is to come, and you will not panic.

ONE. The people by your side will only continue to grow smaller in number. People in your parents’ and grandmothers’ generation have largely all left, whilst many of your peers will increasingly find it harder to look after themselves, and the younger generations will all be busy with their own lives. Even your wife or husband may depart earlier than you, or that you would expect, and what might then come are days of emptiness. You will have to learn how to live alone, and to enjoy and embrace solitude.

TWO. Society will care less and less for you. No matter how glorious your previous career was or how famous you were, ageing will always transform you into a regular old man and old lady. The spotlight no longer shines on you, and you have to learn to contend with standing quietly in one corner, to appreciate the hubbub and views that come after you, and you must overcome the urge to be envious or grumble.

THREE. The road ahead will be rocky and full of precarity. Fractures, cardio-vascular blockages, brain atrophy, cancer…these are all possible guests that could pay you a visit any time, and you would not be able to turn them away. You will have to live with illness and ailments, to view them as friends, even; do not fantasize about stable, quiet days without any trouble in your body. Maintaining a positive mentality and getting appropriate, adequate exercise is your duty, and you have to encourage yourself to keep at it consistently. 

FOUR. Prepare for bed-bound life, a return to the infant state. Our mothers brought us into this world on a bed, and after a journey of twists and turns and a life of struggle, we return to our starting point – the bed –and to the state of having to be looked after by others. The only difference being, where we once had our mothers to care for us, when we prepare to leave, we may not have our kin to look after us. Even if we have kin, their care may  never be close to that of your mother’s; you will more likely than not, be cared for by nursing staff who bear zero relation to you, wearing smiles on their face all whilst carrying weariness and boredom in their hearts. Lay still and don’t be difficult; remember to be grateful.

FIVE. There will be many swindlers and scammers along the way. Many of them know that the elderly have lots of savings, and will endlessly be thinking of ways to cheat them of their money through scam phone calls, text messages, mail, food and product samples, get-rich-quick schemes, products for longevity or enlightenment… basically, all they want is to get all the money. Beware, and be careful, hold your money close to you. A fool and his money are soon parted, so spend your pennies wisely.

Before the sky gets dark, the last stretches of life’s journey will gradually get dimmer and dimmer, naturally it will be harder to see the path ahead that you are treading towards, and it will be harder to keep going forward. As such, upon turning 60, it would do us all well to see life for what it is, to cherish what we have, to enjoy  life whilst we can, and to not take on society’s troubles or your children’s and grandchildren’s affairs for yourself. Stay humble, don’t act superior on account of your own age and talk down to others – this will hurt yourself as much as it will hurt others. As we get older, all the better should we be able to understand what respect is and what it counts for. In these later days of your lives, you have to understand what it means, to let go of your attachments, to mentally prepare yourself. The way of nature is the way of life; go with its flow, and live with equanimity.

For all of us, a nice read, very beautiful, very true!

Hardly the day started and … it is already six o’clock in the evening.

Barely arrived on Monday and it’s already Friday.

… and the month is almost over.

… and the year is almost up.

… and already 50 or 60 or 70 years of our lives have passed.

… and we realize that it is too late to go back…

So…Let’s try to take full advantage of the time we have left …

Let’s not stop looking for activities that we like…

Let’s put color in our grayness…

Let’s smile at the little things in life that put balm in our hearts.

And yet, we must continue to enjoy serenely the time that remains.

Let’s try to eliminate the ‘after’…

I do it after…

I will say after…

I will think about it after…

We leave everything for ‘later’ as if ‘after’ was ours.

Because what we do not understand is that:

after, the coffee cools…

after, priorities change…

after, the charm is broken…

after, health passes…

after, the children grow up…

after, the parents get older…

after, the promises are forgotten…

after, the day becomes the night…

after, life ends…

And all that ‘after’, we find it’s often too late…

So… leave nothing for ‘later’…

Because in always waiting for later, we can lose the best moments,

the best experiences,

the best friends,

the best family…

The day is today…The moment is now…

We are no longer at the age where we can afford to postpone until tomorrow what needs to be done right away.

So let’s see if you’ll have time to read this message and then share it.

Or maybe you’ll leave it for…’later’…

And you will not share it “ever’ ’’

Even share with those who are not yet ‘seniors’.

May you be well and happy…

 

Is the end of the charge of the bull brigade round the corner? 

"never time the market" - is it then time to ease up on fresh investments? 

wait and watch is the policy ahead.

patience pays.

#joyofinvesting

 #thejoyofInvestmemts

#blueskypremiere

#thejoyofinvesting

21 Pearls of financial wisdom

1) Bonds are for storing wealth and equities are for creation of wealth.

 2) In my opinion, the biggest asset one can have is zero debt. 

3) The greatest discipline in personal finance is living below your means.

 4) As Ben Carlson says, emotions cannot be back tested. That’s why past bear market always looks like opportunities and future ones scary. 

5) Early financial independence and early retirement are completely different. To me, the former is a blessing and the latter is a curse.

6) Don’t think how it would have been if you’ve started 10 years ago. Start today and visualise how you would feel 10 years from now. 

7) The neighbourhood we live determines our life style & spending. Need to be careful in choosing one which matches our goals and personality.

8) Paying minimum balance regularly on credit card is the maximum sign that you’re getting into debt trap.

9) Many are long term investors till next bear market. 

 10) Don’t take aggressive bets. Take measured risk. Remember one blunder can push you back by a decade or more in terms of wealth. 

 11) Big money can be made through high savings, wise investing and lots of patience. 

12) Trying to get rich fast is a foolproof way to lose what we have.

 13) Losing opportunities is far better than losing money. Don’t invest in fads. 

14) “Making as much money as quickly as possible” is not an investment strategy. Unfortunately for most of us that is the strategy.

 15) Aggressive strategy cannot be a substitute for high savings. Save high and take moderate risk than saving less and taking high risk. 

 16) The day we realise not losing is as important as winning; we would stop blindly chasing returns. 

 17) Good periods are more than bad periods. By not timing, though we go through bad periods, do not miss even a single good period. 

 18) We’ll stop looking for quick money the moment we consider stocks as businesses and realise that our wealth grows in line with business growth.

19) There are periods of high returns, low returns, no returns and negative returns. We need to go through all these to get long term returns.

20) Listening to market forecasts is not only useless but can be very harmful too; if you start acting on them.

21) The hard truth is only around 3% of our population are in a position to aspire for financial independence. Don’t waste this rare privilege.

Sharing!

 http://avayshukla.blogspot.com/2021/02/the-fine-art-of-losing-friends.html