New Delhi, June 20 (HS): After increasing the MSP of 14 crops to provide relief to farmers, the central government is also going to provide relief to the middle income group. It is expected that in July this year, the central government may decide to increase the interest rates of small savings schemes (SSS).

The central government reviews the interest rates of small savings schemes on a quarterly basis. On this basis, a decision is taken to change the interest rates of these schemes. Earlier, in the last week of March, the interest rates of small savings schemes were fixed for April to June 2024. Now next week the central government can take a decision to increase the interest rates after reviewing the small savings schemes.

These small savings schemes include schemes like Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS) and Mahila Samman Bachat Yojana. Apart from this, schemes like Monthly Income Scheme and Kisan Vikas Patra are also very popular among the people.

Currently 8.2 percent interest is paid under Senior Citizen Savings Scheme. 7.4 percent interest is paid under Monthly Income Scheme, 7.7 percent under National Savings Certificate Scheme, 7.1 percent under Public Provident Fund Scheme, 7.5 percent under Kisan Vikas Patra, 8.2 percent under Sukanya Samriddhi Scheme and 7.5 percent under Mahila Samman Saving Scheme. It is believed that these savings schemes can be increased by up to 0.5 percent for the quarter from July to August.

New Delhi (India), April 11: Bright DiGi Gold, a pioneering digital gold and silver savings platform, is proud to announce its latest offering: the ability to save in precious metals, as well as buy, sell, gift, store and receive physical delivery of gold and silver coins right to your door without any hassle. 

Led by Mr. Ashish Gupta, Managing Director, Bright DiGi Gold sets a new standard in smart savings solutions, offering unparalleled convenience and security for customers across India. 

Since its inception in 2021, Bright DiGi Gold has been committed to customer satisfaction, aiming to simplify the process of saving in digital gold. With a mission to empower individuals to make sound financial decisions, the company ensures a hassle-free experience for buying, selling, and securely storing digital gold and silver. 

“At Bright DiGi Gold, we understand the evolving needs of our customers, especially in today’s digital era,” remarked Mr. Ashish Gupta. “Our platform is designed to provide access to 24 karat, 99.9% pure gold, and 99.99% fine silver, accompanied by certificates of purity, ensuring utmost trust and transparency.” 

With a focus on accessibility, Bright DiGi Gold allows individuals to start their savings journey with as little as ₹10, making gold investments inclusive and achievable for all. Additionally, the company guarantees the highest level of security for digital assets through the use of top-notch vault facilities. 

Key Features of Bright DiGi Gold’s platform include: 

• Digitalise Your Savings In 24k Pure Gold and Fine Silver in just a few clicks. 
• Best platform to make your savings grow in digital gold and digital silver. 
• We ensure the security of your digital transactions. 
• Share the gift of gold and silver to your loved and special ones. 
• For those who prefer the tangibility of physical assets, Bright DiGi Gold offers the unique option to receive physical delivery of coins directly to your doorstep. 

Catering to a diverse demographic, Bright DiGi Gold appeals to individuals aged 18-45 residing in urban and semi-urban areas of India. The platform prioritises convenience and security and targets financially literate, tech-savvy individuals with a propensity for investment and wealth creation. 

Bright DiGi Gold is a technology-driven company dedicated to revolutionising digital gold investments in India. Founded in 2021, the company offers a user-friendly platform for purchasing, selling, and securely storing 24-karat pure gold and 99.99% fine silver. With a focus on convenience, security, and transparency, Bright DiGi Gold aims to empower individuals to achieve their financial goals through smart savings strategies. 

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New Delhi (India), April 5:  Three young entrepreneurs from IIT Guwahati – Rounak Baral, Hardik Lodha, and Shubham Jain – have announced the launch of Savingz, India’s first AI-powered wealth-tech app.

Savingz: AI-Powered Wealth Management for All

Established in July 2023, Savingz empowers users to navigate the complexities of finance with a unique blend of AI technology and human expertise. The app offers various new features, including:

– India’s First AI Tax App: Savingz leverages AI to optimise tax filing and minimise liabilities. On average, they save upto 40% extra than conventional CAs and financial firms. Users get the extra money back if they can show otherwise.

– End-to-End Wealth Management: The platform offers personalised advice on investments, taxes, and alternative investment opportunities.

– Data-Driven Insights: Savingz utilises advanced data systems to provide users with actionable financial information.

– Top-Notch Privacy and Compliance: Savingz prioritises user privacy and follows all regulatory guidelines.

Savingz boasts a loyal user base exceeding 1,000, with many achieving impressive returns exceeding 30% IRR post-tax. The company has gained a negative cost of acquisition, attracting a growing customer base through organic referrals and satisfied users who have even invested in the business.

Passionate About Finance From a Young Age

The founders’ journey began with a shared interest in startups and digital marketing. Rounak, fascinated by the field, started his first tech blog and internet marketing venture in eighth grade.

Coming from a business background, Hardik honed his leadership skills by heading marketing for Alcheringa, IIT Guwahati’s renowned college festival.
Whereas Shubham Jain, driven by a desire for experimentation, joined the founding team of Newton School.

Their paths converged at IIT, where they fostered a shared dream of entrepreneurship.

Shaping the Future of Finance

Savingz represents a paradigm shift in wealth management, making sophisticated financial tools accessible to all. With its user-centric approach, AI-powered solutions, and commitment to data security, Savingz is poised to empower a new generation of financially savvy Indians.

Contact Details:-

Email – hello@savingz.in

Website: – www.savingz.in

Phone Number – +918608600419

About Savingz

Savingz is India’s first AI wealth-tech app, offering a comprehensive platform for tax optimisation, wealth management, and investment guidance. Founded by three IIT graduates with a passion for finance and technology in July 2023, Savingz is committed to democratising access to financial tools and fostering a culture of informed investment decisions.

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New Delhi, Feb 18 (IANS) Financial savings by Indian households have shifted away from the conventional bank (including non-bank) deposits to capital markets, BofA Securities said in a report.

The former accounted for 39 per cent of total financial savings in FY2001 and capital markets could garner only 4 per cent of the total pie. In FY2023, corresponding figures stand at 37 per cent and 7 per cent respectively, the report said.

With improved financial literacy, savings parked into life insurance and provident and pension funds have risen steadily from 34 per cent of total in FY2001 to 40 per cent of overall financial savings in FY2023.

RBI’s latest data on quarterly movement of flow of financial assets and liabilities of households shows that in FY23, savings parked as currency has fallen from 12 per cent of total in FY22 to 7 per cent of gross financial assets in FY23. This is getting redistributed towards bank deposits which have risen from 22 per cent to 35 per cent of the total during the same period, the report said.

As of FY22, household savings in financial assets stand at Rs 28 trillion, twice the Rs 14 trn seen in FY12.

On an average, an Indian household holds 77 per cent of its total assets in real estate, 7 per cent in other durable goods (such as transportation vehicles, livestock and poultry, and machinery), 11 per cent in gold, the report said.

Share of physical savings in total household savings has steadily tapered from 69 per cent in FY2012 to 49 per cent in FY21. It, however, rose again to 61 per cent of total in FY22 and we expect to rise further in FY23 as well.

Accordingly, we expect total household savings in FY23 to surpass the level seen in FY22, owing to a further increase in physical savings, the report said.

Household sector plays a major role in the Indian economy as the supplier of financial resources in the form of savings, contributing 70 per cent to total gross domestic savings.

Household savings are broadly classified into financial and physical assets- accounting for 56 per cent and 44 per cent of total household savings respectively. Of the financial savings, bank and non-bank deposits account for 37 per cent and only about 8 per cent goes to shares & debentures.

Real estate is the largest component of physical savings at 77 per cent share and 11 per cent of total physical savings is in the form of gold, the report said.

Households are the mainstay of gross domestic savings, their contribution stood at 90 per cent of the total in FY2001. Household savings can be broadly classified into physical and financial assets. Physical savings account for 45 per cent of the total, the share has been trending down steadily from 55 per cent in FY2001.

New Delhi, Sep 20 (IANS) Household financial borrowings in FY23 surged to 5.8 per cent of GDP, the second-highest in the post-independence period, it was 6.7  per cent  of GDP in FY07, Motilal Oswal Financial Services said in a report.

According to the Reserve Bank of India (RBI), household net financial savings (HHNFS) collapsed to just 5.1  per cent  of GDP in FY23, marking the lowest level in 47 years since FY77, the report said.

Moreover, it was revised down to 7.2 per cent  of GDP for FY22 as well, from 7.6 per cent  of GDP (and as much as 8.3  per cent  of GDP, as per RBI’s first estimates released in Sep’22).

The downward revision in FY22 is in line with our calculations and the deterioration in FY23 is worse than our estimates. HHNFS is a function of gross financial savings (GFS) and financial liabilities (FL).

In GFS, the share of currency and small savings declined in FY23 (vs. FY22), while the share of deposits increased, the share of capital market investments (called shares & debentures, S&D) has quadrupled to an average of 0.8  per cent  of GDP in the past seven years (FY17-FY23) from just 0.2 per cent  of GDP in the years prior to demonetization.

Notably, household GFS was largely stable at 11 per cent  of GDP in FY23 vs. FY22, which means that lower HHNFS was a clear result of a sharp jump in household borrowings last year. GFS has six major components -- deposits, currency, insurance, pension & provident funds (P&PFs), capital market investments, and small savings. Deposits are, by far, the largest components of household GFS.

In the current financial year, as nominal GDP growth is likely to be only 8  per cent, household income growth is also likely to be similar. If so, either consumption growth will be very weak or household investments will weaken substantially, since a further fall in HHNFS looks very difficult, the report said.

Further, with a unanimous expectation of narrowing current account deficit (CAD), investments can increase only if savings rise faster.

Not only this, HHNFS play a crucial role as they are the principal means for financing the fiscal deficit. If HHNFS fails to pick up, it will become increasingly challenging to fund narrowing fiscal deficit, the report said.

Equity as an asset class comes with its set of high risks and volatile earnings. Yes, there is a very large element of multiple returns but the number of stocks which turn out to be multi-baggers is a low single digit from the universe.

Fixed deposit is another asset class which gives just the coupon rate and at times when the economy does well, fails to return the rising cost of inflation. Real estate comes with its mystique and is an asset class which has high returns but is cyclical, and entry and exit from this investment is a tedious process and above all requires very large investments.

Is there an alternative where one can get the best of almost all? Yes, REIT or real estate investment trust is a product which gives almost everything that one can think of. Readers would be aware that in the calendar year the returns from the benchmark indices in India were sub 5 per cent while returns from Dow and many leading global indices were negative.

Interest rates have been rising globally, yet they are in the region of 6.5 per cent in India and 4.75 per cent in the US. A fixed deposit would earn about 7 to 7.5 per cent depending upon the tenure, age of the investor and also amount. There is however no upside to this return in any manner whatsoever.

REIT is a product which has underlying real estate assets as its investments which are yielding rental income from commercial real estate, attached or stand-alone hotel properties and also retail assets like malls. These assets have a steady income in rentals which come up for renewals every three to five years depending on the contracts entered into. They ensure the appreciation or upside that one wants from an investment.

Expenses such as maintenance are added on and are charged on actuals or with an additional fee Take for example the two years of covid where office space was not fully utilised as people worked from home, while rebates were given to occupiers of commercial space, those who moved out and wanted to rehire have paid significantly higher for similar spaces.

When REIT as an asset class was introduced in the markets and available for trading, it was meant for the ultra-rich HNI as the ticket size was large. As time went by and the product became popular, people understood that this is a product meant for an investor and not necessarily the HNI. Looking at the need of the hour, the lot size was reduced and the product is now available for investment of one unit for an amount which is just about Rs 300.

How does the REIT work or generate returns for unit holders? The trust buys real estate assets of which the dominant part, minimum 80 per cent have to be completed and are income generating assets.

Unlike equity issue offerings, the trust gives forward guidance and projections of income and distribution to prospective investors. Income comes from rentals of real estate and other charges like car parking and some common facilities of food courts and such other facilities in commercial areas. There is an upside to all of this as a certain percentage of the total pool of assets comes up for renewal every year. This fetches higher returns to factor in appreciation of real estate, inflation and above all interest rates.

At the end of the day, rent is the sum and substance of real estate price which has demand supply and interest rates as key components. The yield from REIT is in the region of 7.5-8 per cent and varies upon the performance of the fund or the trust and the kind of underlying assets it holds.

Interestingly, land bank and residential houses are excluded form the ambit of REIT.

The icing on the cake is the discount to NAV that these instruments trade at. When there is an uptick in demand, the discount narrows which results in substantial capital appreciation as well. The discount to NAV varies from 18-24 per cent. The typical rental increase annually is between 3.5 to 5 per cent which ensures higher distribution.

The distribution to unit holders has to be a minimum of 90 per cent of the net distributable cash flow. This ensures a healthy pay out for unit holders. For the layman investor, he gets an opportunity to do a check on the value of the underlying assets every quarter when the company declares its results and its NAV. This NAV is nothing more than the mark to market value of its asset.

Appreciation in NAV happens when the market value of the property goes up. Every asset of a manufacturing company has a shelf life or life of the plant and equipment. In the case of real estate, land is lifelong and buildings on the same have a life in excess of 35 years. With regular maintenance, this life gets extended and over a longer time span the entire building can be rebuilt.

The trust sells units of the trust to investors and raises capital. With this it invests in buying real estate assets. As a sponsor it may allocate assets to the trust and pay for the same by allotting units to itself. The earnings from a REIT come in three parts as a combination or either or. They are dividend, interest and return of capital.

In conclusion, REIT is an asset which gives better yield than a fixed deposit return, has an upside in real estate appreciation and also reduction in discount to the NAV. There are currently three listed REITs in the form of Mindspace Business Parks, Embassy Office Parks and Brookfield India Real Estate Trust which are traded at the bourses.

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)

New Delhi, April 6 (IANS) Around 74 per cent of Indians are concerned about their personal financial situation, as opposed to 50 per cent globally, while 63 per cent of Indian consumers are cutting back non-essential spending altogether, a new report said on Thursday.

According to the 2023 PwC Global Consumer Insights Pulse report, most Indian consumers expect to reduce their expenditure across all surveyed categories over the next six months, a significant decline in planned spend across all categories since the previous pulse survey in June 2022.

"Consumers will continue to demand world-class buying experiences in both physical and digital channels with work cut out for brands to reduce costs, enhance availability, and for 'going local'. The silver lining here remains the unequivocal growths in adoption of digital channels and the desire to spend more on travel in the coming months," said Ravi Kapoor, Partner and Leader - Retail & Consumer, PwC India.

Moreover, the report mentioned that the industries, including luxury and premium products, travel, and fashion, expect to see the greatest portion of consumer spending reductions over the next six months, whereas the groceries segment is expected to decline the least.

About 47 per cent of Indian consumers say they will shop with retailers that offer free/discounted product delivery.

The report further said that half of the Indian consumers (50 per cent) said rising prices remain the most frequently experienced issue when shopping in-store, supply chain issues also dominate with larger queues and busier store locations (35 per cent), along with product availability (28 per cent), which is also impacting consumer behaviour.

In spite of a planned cut in spending and challenging economic conditions, Indian consumers say they are still willing to pay more for sustainable products.

Over 88 per cent of respondents say they would pay more for a product produced or sourced locally, made from recyclable, sustainable, or eco-friendly materials (87 per cent), or produced by a company with a reputation for ethical practices (87 per cent).

New Delhi, March 31 (IANS) The Centre on Friday raised the interest rates of small savings schemes, effective from April 1, 2023. At the same time, the government also raised the deposit limits for monthly income scheme (MIS) and senior citizen savings scheme.

Through a gazette notification, the government raised the maximum deposit limit for senior citizen savings scheme to Rs 30 lakh from Rs 15 lakh.

Similarly, the maximum deposit limit for MIS has been enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account, and from Rs 9 lakh to Rs 15 lakh for a joint account.

Meanwhile, the interest rate for senior citizen savings scheme has been hiked from 8 per cent to 8.2 per cent. For MIS, the interest rate has been raised from 7.1 per cent to 7.4 per cent.

All changes announced in deposit limits and interest rates are effective from April 1, 2023.

New Delhi, March 31 (IANS) The Government has effected significant hike in interest rates of small savings schemes, like senior citizen saving schemes, national saving certificate (NSC), Sukanya Samriddhi Yojana and monthly income scheme (MIS). The new rates will be effective from April 1, 2023 till June 30, 2023, i.e the first quarter of 2023-24.

However, savings deposit interest rates and PPF interest rates have been kept unchanged at 4 per cent and 7.1 per cent respectively.

The interest rate of Sukanya Samriddhi Yojana has been significantly hiked to 8 per cent from the existing 7.6 per cent, while interest rate of NSC has been hiked from the existing 7 per cent to 7.7 per cent.

For senior citizens saving scheme, the interest rate has been hiked from 8 per cent to 8.2 per cent, while for Kisan Vikas Patra (KVP) it has been increased from 7.2 per cent to 7.5 per cent. However, the existing KVP interest rate is for a maturity period of 120 months, while the new rate is for KVP maturing in 115 months, a notification issued by the finance ministry said.

For MIS, the rate has been hiked from the existing 7.1 per cent 7.4 per cent and for five-year recurring deposit, the interest rate has been raised from the existing 5.8 per cent to 6.2 per cent.

For one-year time deposit, the interest rate has been hiked from 6.6 per cent to 6.8 per cent, while for two-year time deposit, it has been raised from 6.8 per cent to 6.9 per cent.

Similarly, for three-year time deposit scheme, the interest rate has been increased from 6.9 per cent to 7 per cent and for five-year time deposit scheme, the interest rate has been hiked from 7 per cent to 7.5 per cent.

The Government revises interest rates of small saving schemes after every quarter.

Chennai- Gold has turned into a more bankable asset and its prices going up as several American banks are going down, say experts.

On Monday, the yellow metal shone brighter at the markets with gold at the MCX crossing the Rs 60,000 mark.

"Gold prices have risen almost 7-8 per cent in the past month. The rally in the yellow metal is primarily due to the banking crisis in the west. The liquidity infused by the central banks and the expectations of lower to no rate hikes is pushing gold prices up. Gold is a safe haven, historically it has gained in periods of uncertainty," Colin Shah, MD, Kama Jewelry, said.

Gold prices hitting a fresh high is a sign of slower economic growth and lower interest rates with ample liquidity to help the system steer of the current situation.

According to Shah, the current situation globally may take some time to clear out. Globally, central banks have been adding gold reserves.

"We expect gold to gain further and touch new highs in the next few months. Domestically, it is expected to trade in the range of Rs 61,000-62,000/10gm. Internationally, it may scale levels of $2,050-2100/oz," he added.

Navneet Damani, Senior VP, Commodity Research at Motilal Oswal Financial Services, said: "Bullions continue surge, with gold on domestic front hitting a new life time high of over Rs 60,000, as a wave of banking crises shook global markets and put bullion on track for its biggest weekly rise in three years, while bets solidified for a less aggressive Fed in its fight against inflation.

"The collapse of Silicon Valley Bank in the US has highlighted banks' vulnerabilities to sharply higher rates, while a rout in Credit Suisse shares has added to the market turmoil. On other hand, after ECB announced a 50bps rate hike last week, all eyes are now on Fed's policy meeting scheduled later this week.

"Fed is expected to raise rates by 25bps, however probability for a pause is increasing sharply supporting the move in safe haven assets. Over the weekend, there were quite a updates regarding the US banking concerns which slightly weighed on the safe haven assets. UBS agreed to buy 167-year-old Credit Suisse for $3.23 billion and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023. Meanwhile, major central banks including Fed, ECB, BOJ, BOE announced a co-ordinated central bank action to enhance liquidity via USD-Swap line. These updates are likely to keep the volatility high."

"Broader trend on COMEX could be in the range of $1985- 2015 and on domestic front prices could hover in the range of Rs 59,800-60,600 could be expected," Damani added.

(IANS)

As recent stock market turbulence has led to significant losses for investors, many people are now turning to safer investment options, benefiting the postal department. The Department of Posts' Sovereign Gold scheme, which offered digital gold from March 6 to 10, witnessed 23 kg of digital gold worth Rs 13 crore sold in just five days. Families with daughters set to marry in 8 to 10 years or with children requiring funds for higher education were among the top purchasers of digital gold.

Compared to the stock market, mutual funds, or other investments, digital gold has attracted significant interest from those seeking to secure their investments. Surat ranked first in the state, with residents purchasing 4775 grams of gold worth Rs 2.67 crore under the Department of Posts' Digital Gold scheme. Kheda in central Gujarat followed in second place, with 1978 grams of gold sold for Rs 1.10 crore.

Investors purchased gold ranging from 2 grams to 500 grams through the Sovereign Gold Scheme, viewing it as a safe investment in anticipation of future expenses. Many people who had invested their savings in the stock market experienced losses due to market volatility, prompting some to explore safer investment options like digital gold offered by the post office.

Neeraj Chinoy, PRO of Surat Head Post Office, expressed pride in Surat Division's performance, noting that the division alone sold as much gold as North Gujarat. He added that people's trust in the postal department is increasing.