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Showing posts from December, 2019

Gold ETF: Smart investment in Gold

Gold E xchange  T raded  F und Hello readers, We Indians, specially women love gold. Our cultural functions are opportunity for women to show off their gold jewelry. Most of people think invest in gold is safe and give good returns. But it is not true because your 'making charges' eats your returns. You are paying 10 to 15 % amount as 'making charge' on every time  when you purchase gold. In long run you make get some returns on gold but it will so less as we consider time period. In Fintech (new tech that seeks to improve and automate the delivery and use of financial services)  era, it is very simple to invest in pure gold without paying 'making charges' and get attractive return by investing in gold. Investment in Gold Vs. Equity-   As we see above image we identified how we get low returns when we invested in gold rather than equity. I am not suggesting that, you should not to invest in gold but suggest way to invest in gold

Is Stagflation near far?

Inflation high, growth slow, is stagflation n ear? Change in retail prices of both Goods and Services consumed by defined population in given area known by Retail price inflation. In India Nov. 2019 observe 4.5% Inflation rate which highest in last 40 month. IIP (Index of Industrial Production) Oct. 2019 output fel 3.8% YOY, dropping for 3rd straight month. Country could be entering into a stagflationary phase. Stagflation is a combination of stagnant economic growth, high unemployment and high inflation. Its the perfect storm. In our country inflation measured by 'Consumer Price Index'(CPI). CPI for Nov. 2019 noticed as 5.54% because of recent rise in food prices. RBI fixed 4% as medium term target  for Inflation. Recent Monetary policy came out with unchanged REPO rate.  According to NSO(National Statistical Organization) costlier vegetables, pulses and other protein rich food items pushed the CPI based retail inflation.  IIP's Oct 2019 data show