Thanks to Patanjali boom and Pakistan terrorism, there is a common theme growing in general public about avoiding chinese products and buy “Desi”. This is easier said than done. But we will definitely more curious on what we are and will be making in India than ever.
The buzz word first introduced by Mr. Amitabh Bachchan, Kaun Banega Crorepati, in the beginning of this millennium had opened a dream world for the common Indians. However, it took sometime for us to sink in and consider the figure as a real achievable target. Until the early last decade till about 2005 to be precise, 1 crore was not even distant dream for most of us. Indian population was very happy with endowment plan for 1-5 lacs rupees and felt content with the ‘suposedly’ financial planning. Then came the disruption! hail the magic word Rs. 1 crore.
Insure for 1 crore
The two new words changed the financial services of India forever. The two words were ‘Term plan’ and ‘SIP’ – systematic investment plan.
The ‘term plan’ the true insurance product came in force in India in early 2000. The product came frill free sans the investment component. So, the newly formed private insurers began launching term-plans of 10 lakhs, 25 lakhs, 50 lakhs, 75 lakhs and 1 crore for a fraction of a cost which LIC sold its’ endowment policies and the newbie ULIPs. The country reacted in disbelief! It took a decade, but 1 crore has became a new normal of Indian middle class, thanks to to the term insurance plans.
SIP to 1 Crore
Not to forget the aggressive promotion of ‘SIP’ by mutual fund companies harping on ‘power of compounding’ often projected 1 crore as target figure. Be in advertisement on personal finance stories, saving a few thousand rupee every month for 20 years could yield 1 crore was used as a magic figure in numerable instances catching the fancy of Indian salaried class.
Now – Health cover for 1 crore
However, this wasn’t yet the case for health insurance industry until recently. Rs. 3 lakh to 20 lakh at the premium side was a common norm until about 2 years back. However, the healthcare cost of India has multiplied over last few years and surging way ahead of the inflation numbers. Incase of critical illness, one may have to cough-up upto INR 25-30 lakh easily only on the treatment procedure, let alone the aftercare and other financial loss causing a big dent on the resources. So, looking at the surging medical expenses and preempting the future trends, the insurance companies have launched premium insurance products with higher sum insured from 50 lakhs upto 6 crore even above. Though the product positioning may look premium, including very specialized services like global hospitalization benefits, maternity cover, organ donation etc. But eventually these services are aligining India with the global standards of healthcare. Though the premium of the products are on the higher side for now, the 1 CRORE is becoming a new normal for the health Insurance Industry too!
The few products in this category –
CARE Global – Religare Health Insurance
ProHealth – Cigna TTK
Apart from these, many companies do provide fixed benefit insurance for persona accident and insurance for critical insurance.
Happy Diwali n a prosperous new year 2073 friends. May God bless everybody with all the pleasures in life. With the new samvat we have new beginings, expectations and dreams. In this post, I decided to list down 10 important global and Indian events which will be closely watched by Indian investors.
1. Results of US Presidential election – The most anticipated event of the year set to unfold on 6th/7th November 2016. The fate of two presidential candidates, United States and economy worldwide is set to be deciding its new course. Though Hilary Clinton enjoying a better mindshare of audience, one never knows if Trump wins the battle at last moment and how investors react to it.
2. FED rates – This is one more game changer card US holding close to its chest. Its been long time that FED is holding rates at 0.5% and the bonds have started yielding negative returns, FED time and again promising to increase the interest rates to boost economy, push inflation upwards to 2% (In the US), if this happens, the funds may see a return to US moment. The event is set for a december date. Hoever, there are many constraints on the same owing to various economic restraints. One need to keep a close eye on this.
3. The BASEL III norm for Indian Banks – Basel III focuses on the capital adequacy of banks primarily on the capital requirements of the banks to deal with various risks potentially faced by the businesses. Banks have been trying various methods from issuing perpetual bonds to selling preferential shares. Having the dates set for attaining the requirements at 31st Macrh 2018, this samvat will give a clear picture as in how efficiently our banking system braces for it.
4. Defence Initiatives by India – This had been a priority for Mr. Modi for last year as well. Prime minister has been strengthening global alliances of all kinds. Be it developing and improving diplomatic associations or buying global arms and ammunitions. Modi is all set to corner Pakistan. India succesfully conducted surgical strike against terrorists as well as stopped a Hydel Dam project in Pakistan occupied Kashmir. This year Indians will eager to see consolidated action on thhe notorious neighbors.
5. UP Elections – The most populous state of India, with maximum MP seats and having PM’s constituency set for hottest election battle in 2017. The event is already a hot topic with a intternal spat in Samajwadi party, it also can be a game changer of central governement as they have failed in the last five polls.
6. Real progress @ Make in India – This has been a pureplay by our prime minister. The centre has gone all out, all major and developing economies has been approached to collaborate and set manufacturing units in last two years in India. This samvat will be eagerly watched out for the real results.
7. GST roll out– GST has been a parliament battle and with each states in terms of revenue sharing. This is a well covered topic by media. All indian states, industries, sectors and economists eagerly waiting for its implementation and the real outcome.
8. TATA &MISTRY Saga – This is just not a corporate battle, this will be a maker or breaker for Tatas, Will there be any change in the way the corporate history been written in India so far? How about investors Trust??
9. Reality check on avoiding Chinese goods – China is not sitting back. With chinese companies investmenting in Indian startups, PayTM, collaboration with OLA, China gradually but steadily entering India, now with Money. Just saying that “not to use chinese goods” is not at all a sensible talk. We are dependent on them from mechinaries to tubelights, mobile phones to door locks. It is much more deep rooted in our system than we can see. It will be a long time before we see a complete make in India. Matching their prices will be another ball game all together.
10. The Harvests – Voila! this cannot be the last topic. Definitely not in my mind. The raingod has been generous to India this year. Having doubled my money on Escorts, and the big run I missed on fertilises and fodder socks, there is still much story left. The coming year expected to be a gala for the agriculture Industry. The rural India is smiling again. And we hope for a joyous year ahead.
To conclude, the stocks in technology, banking, agriculture and defense will be on top of my mind.
Have a great year ahead. Wish you all a happy diwali and a prosperous new year. 🙂