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Which Are the Best Investments One Can Make to Expand One's Wealth This New Year?

Professor of Financial Economics and Part-time Value Investor, Transfin.
Dec 30, 2019 1:25 PM 5 min read

Government may assume real GDP growth of 6-6.5% for Budget 2020. Airtel nearly doubles its minimum recharge plan. SBI cuts external benchmark rate by 25 basis points.




Government may assume real GDP growth of 6-6.5% for Budget 2020.

Numbers Game: Budget 2020 is almost upon us and the government will reportedly assume a growth rate of 6-6.5% in real GDP for the upcoming fiscal. Along with assuming a deflator of around 4%, this could take the nominal GDP outlook for FY21 to around 10%.


It is this nominal GDP forecast on the basis of which the finance ministry is calculating key Budget targets like the fiscal deficit as a percentage of GDP and tax revenue growth for the coming year. More details here.

Centre and States set to discuss GST overhaul after Budget presentation.

Coalition of the Unwilling: After the Union Budget is presented on February 1st, the Central and State Governments will reportedly hold fresh negotiations to overhaul the Goods and Services Tax (GST). Restructuring GST slabs and rates, dealing with revenue shortfall, and managing GST compensation to the states are topics that could be on the table. Livemint



BSNL says Voluntary Retirement Scheme will save it ₹600cr per month.

State-run telco BSNL will reportedly be able to save up to ₹600cr per month following the roll-out of its Voluntary Retirement Scheme (VRS) for employees in November 2019. More than 78,000 staff opted for the scheme (1L were eligible, out of the telco's total staff strength of c. 1.5L).


Apart from the money the crisis-hit telco will be able to save on salary payments, BSNL is also reportedly planning to monetise the company's land assets which are estimated to be worth about ₹73,000 crore to turn the loss-making telco profitable. Firstpost

Airtel nearly doubles its minimum recharge plan.

Price Up: Bharti Airtel has increased its minimum recharge validity plan from ₹23 to ₹45, a 95% increase. The new base price will be effective from December 29.


This move is indicative of the fact that India's second-largest telco is not hesitant to raise tariffs for consumers to improve its revenue and its balance sheets. Meanwhile, Reliance Jio's minimum recharge plan stands at ₹75 and for Vodafone Idea it is ₹23. ET Telecom News



SBI cuts external benchmark rate by 25 basis points.

Cut the Rate: The State Bank of India (SBI) today announced reduction in its External Benchmark Based Rate (EBR) by 25 basis points to 7.80%. The revised rates will come into effect from January 1, 2020.


To calculate its lending rate, the SBI charges a spread of 265 basis points over the RBI's repo rate, which is currently at 5.15%, in addition to a premium of 10-75 basis points. The change in EBR will mean new homebuyers will get loans at an interest rate starting from 7.90% per annum from 8.15% earlier. ToI

Reliance Capital shares hit upper circuit.

On a High: Shares of Reliance Capital hit their 5% upper circuit of ₹14.05 on BSE today after the company said that the Insurance Regulatory and Development Authority of India (IRDAI) has cancelled pledge enforcement of Reliance General Insurance Company Ltd's (RGICL) shares by Credit Suisse and Nippon India MF. The company's shares ended the day up 4.85%.


"The IRDAI, on December 27, 2019, has held that the pledge/transfer of shares of Reliance General Insurance Company Limited, a 100% subsidiary of Reliance Capital (RCAP), was in violation of the applicable provisions of law," the company said in a media release on December 29. Moneycontrol



Data-crunching investments by insurers rise 20% in 2019.

Data is King: 20%. That's the amount of increase of investments in data crunching systems by insurers in 2019. Most of this is toward subscription of data, build stronger data architecture and for updated technology towards better systems to crunch data. The driving force is the need to organise unstructured data in order to better utilise it.


In the life insurance business, as in any major business today, data is indispensable. It is usually used in customer acquisition, where one uses external data sources to run digital marketing campaign, media optimisation, and better understand the needs and desires of customers. More details here.

The best investments you can make to expand your wealth.

Wealth is Wealth: 2020 is knocking, and as are New Year Resolutions. Many of us make resolutions to work towards our aspirations and dreams - some or at least one of which is likely to be related to accumulating more wealth and affluence.


But wanting more wealth is easier said than done. Investing and growing your wealth is a skill that requires precipitous planning and discipline. Here's a list of top 10 investment options that can help you become rich.



Beijing ready to roll out digital yuan.

All Ears: In a move that could disrupt both traditional banking and the post-Bretton Woods system of floating exchange rates, after being in the works for more than five years, the second largest economy in the world - China - is set to roll out the digital Yuan as early as 2020.


Tell Me More: As per sources, the digital Yuan will be “tokenized” money fully backed by the central bank of China. It will be a private blockchain, a peer-to-peer network for sharing information and validating transactions, with the People’s Bank of China in control of who gets to participate. The currency will be supplied via the banking system and replace some part of physical cash. More on this here.


Co-Existence: Rise of Artificial Intelligence (AI) is touted to kill jobs - primarily those which are repetitive in nature, say for instance the work done in a warehouse. However, in a rather surprising turn of events, the very same warehouse workers once predicted to be losing their jobs because of the onslaught of AI are now working with robots. 


E-retail giant Amazon now has more than 200,000 robotic vehicles it calls “drives” that are moving goods through its delivery-fulfillment centers around the US as it is increasingly pushing its warehouse employees to get used to working with robots. Its rivals have also taken notice, and many are adding their own robots in a race to speed up productivity and bring down costs. A win-win for all? AP


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