SEBI’s Proposal for a New Investment Product Between Mutual Funds and PMS Sub: Eco Sec: Capital markets SEBI’s New Proposal: Introduction: SEBI is considering a new investment product that lies between mutual funds (MFs) and portfolio management services (PMS). Objective: To provide investors with a new avenue to diversify their portfolios by investing […]

    S&P 500’s 7 Shooting Stars Sub: Eco Sec : Capital markets High Interest Rates and Stock Performance: Typical Correlation: Historically high interest rates are generally associated with poor stock performance. Reason: Higher interest rates lead to higher borrowing costs and lower business profits. Risk-Free Rate Impact: As the risk-free rate rises, the expected […]

    PPF Returns Still Languishing Lower than Formula-Based Rates Sub: Eco Sec: Monetary Policy Interest Rates Below Formula-Based Rates: The Public Provident Fund (PPF) and five-year recurring deposits (RD) are earning rates lower than the formula-based system adopted since April 2016. PPF Rate Static at 7.1% since April 2020. Five-Year RD Rate gradually increased […]

    Shift of Household Savings from Banks to Mutual Funds and Capital Markets including in futures and options (F&O) Sub: Eco Sec: Financial market Change in Consumer Behaviour: Traditional Preference: Historically, households preferred banks for their savings. Current Trend: Increasing shift towards capital markets and other financial intermediaries. Impact on Bank Deposits: Decline in […]

    Flare-Up in Vegetable Prices Stalls Overall Disinflationary Trend Sub: Eco Sec: Inflation and Unemployment Consumer Price Inflation: Consumer price inflation rose to 5.1% in June from 4.8% in May. The increase in inflation was primarily due to a surge in vegetable prices. The 28 basis points (bps) rise in inflation stemmed from a […]