QUOTE OF THE WEEK:
"We can’t expect people to sit idle at their homes and the projected growth rate to be achieved. There is a general misconception that all the ills of the economy can be cured by RBI or by the financial system" - KC Chakrabarty, Deputy Governor, Reserve Bank of India
YOUR FINANCE DEMYSTIFIED:
World Savings Day: The importance of savings
Right from our childhood days, our parents teach us that a penny saved is a penny earned. The phrase highlights the importance of savings. While growing up, our elders constantly tell us that we should spend less than we earn and save some portion for future use. They also teach us to spend money according to our income, and our expenses should not exceed our income.
Saving is the path to success. The money saved can be used in tough times such as any emergency medical situation. It can also be used to create more money by the way of investment. That is why it is said a penny saved is a penny earned because you start earning more with your saving. Most of us know the importance of saving. However, not many of us are aware about World Savings Day, its history and World Savings Banks Institute among others... Read more
World Savings Day on 31st October
Power of compounding…A motivating story
Long back, when the inventor of the chess showed the game to an Indian king, the king was so impressed by the new game, that he wanted to reward the inventor. At that time, the inventor replied, “My wishes are simple. I only wish for one grain of rice for the first square of the chessboard, two grains for the second square, four grains for the third square, eight for the fourth square and so on for all 64 squares.”
The inventor said, “Please double the number of grains in the next square compared to the earlier square.”
The king was amazed to hear that the investor had asked for such a small reward. He happily agreed to the inventor’s request. However after a week, the king’s treasurer informed him that the reward would add up to a huge number—far greater than all the rice that could possibly be produced in many centuries!... Read more
Good habits to manage your finances
DID YOU KNOW?
Trigger facility in mutual funds
The trigger option provided by various asset management companies (AMCs) ensures that investors are able to complete the sale or redemption of their mutual fund units smoothly and without any disruption. The trigger facility helps investors not to miss an opportunity and make the most of market movements without the hassle of constant tracking... Read more
TERM OF THE WEEK
Subsidy: A subsidy is the benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public. The securities lending and borrowing allows long-term investors to loan out their securities to those who may wish to borrow securities to cover a short-position or hedge their exposure in the derivatives segment. It allows those lending the securities to increase the yield on their long term holdings.
IN THE NEWS THIS WEEK
Stock exchanges to include list of active clients in report: SEBI
SEBI relaxes share transfer norms for deceased holders' accounts
RBI’s second quarter Review of Monetary Policy 2013-14
Expert views on RBI policy: 25bps hike in repo rate to 8% by Mar 2014
FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.
In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.
Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.
This portal is but one of the various IIFL initiatives that would be part of FLAME.