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Tag: Economic Growth

  • Mufin Group bags LKP Finance in Rs 370 crore all-cash power move

    Mufin Group bags LKP Finance in Rs 370 crore all-cash power move

    MUMBAI: Mufin Group just made a big-money move. In an all-cash deal that sent ripples through the financial sector, Mufin Group has acquired a majority stake in LKP Finance Limited, boosting its net worth by a hefty Rs 370 crore. More than just an acquisition, this is a power play-one that positions Mufin as a dominant force in the lending industry.

    Mufin Group MD Kapil Garg described the move as a strategic game-changer, “This acquisition is a pivotal step in our journey to scale and transform our business. By leveraging LKP Finance’s capital base alongside Mufin’s expertise in lending, we will drive financial inclusion, enhance liquidity, and introduce cutting-edge financial products. Our vision is to empower businesses and individuals with seamless access to credit, fuelling sustainable economic growth.”

    The acquisition is not just about numbers; it’s about reach. LKP Finance brings with it a strong western India market presence, a deep-rooted financial legacy, and an established reputation. By absorbing LKP’s network and credibility, Mufin Group is gearing up to scale lending operations, expand financial services, and drive sustainable economic growth across key regions.

    With this deal, Mufin Group’s capital base swells by Rs 370 crore, giving it a significant liquidity boost to fuel expansion. LKP Finance’s industry experience, paired with Mufin’s aggressive lending approach, creates a formidable financial powerhouse. The acquisition is set to accelerate Mufin’s mission of providing accessible, innovative, and tailored financial solutions to businesses and individuals alike.

  • Where dreams take flight: ABP Live’s Future Forward Startup Conclave 2024

    Where dreams take flight: ABP Live’s Future Forward Startup Conclave 2024

    MUMBAI: In a land brimming with ideas and untamed ambition, startups are the modern-day dreamers charting a bold path through challenges and uncertainties. Their journey is fueled by an insatiable hunger for recognition—the kind that cements their place in the nation’s story. And what could be more exhilarating than earning a spotlight on a national platform?

    This 17 December, ABP Live raises the curtain on Future Forward Startup Conclave 2024 in the heart of New Delhi. A celebration of grit, innovation, and the audacious spirit of Indian entrepreneurship, this premier gathering promises to be a melting pot of ideas and possibilities. It’s not just an event; it’s where visionaries meet their moment, where leaders, innovators, and changemakers converge to script the next chapter of India’s startup saga.

    Anticipation runs high. The stakes are real. The spotlight is waiting. Are you ready to be part of the revolution?

    The event will begin with a keynote address by Union minister of state for Commerce, Industry, and Electronics & IT, Jitin Prasada. This will be followed by engaging discussions led by some of the country’s most innovative leaders, including:

    1   Daalchini co-founder & CEO, Prerna Kalra

    2   The Cinnamon Kitchen founder, Priyasha Saluja

    3   Flyrobe CEO, Aanchal Saini

    4   Classplus co-founder & CEO, Mukul Rustagi

    5   Clovia co-founder, Neha Kant

    6   AppMySite founder, Vikas Nangia

    7   Zostel co-founder & CEO, Dharamveer Singh Chouhan

    8   JiViSa founder & CEO, Sarika Pancchi

    9   Farmley co-founder, Abhishek Agarwal

    10  Vertex Venture executive director, Nikhil Marwaha

    11  Bluetea founder, Nitesh Singh

    12   Blackhat Syncidus chairman & MD, Sachin Salunkhe

    13   IvyCap Ventures founder & MD, Vikram Gupta

    14   Acclaimed author, Harsh Pamnani

    As of May 2024, India has solidified its position as the world’s third-largest startup ecosystem, boasting a valuation of $349.67 billion. With over 1.25 lakh startups and 110 unicorns, the country has emerged as a global leader in innovation, particularly in sectors such as fintech, healthcare, and technology.

    According to the Confederation of Indian Industry (CII), Indian startups are projected to contribute an additional $1 trillion to the nation’s economy by 2029-30. The CII further anticipates the emergence of 300 new unicorns between 2024 and 2035, underscoring the sector’s significant potential for growth and its role in shaping India’s economic future.

    Initiatives like Startup India and Atmanirbhar Bharat have played a pivotal role in propelling India to the forefront of global innovation, creating jobs, driving economic growth, and earning international recognition.

    Audiences can witness the event live on www.abpLive.com on 17 December from 11 AM.

  • Exploring the impact of macroeconomic factors on mutual fund performance

    Exploring the impact of macroeconomic factors on mutual fund performance

    The performance of mutual funds is intricately linked to a variety of macroeconomic factors. These elements, ranging from inflation rates to government policies, play a crucial role in shaping the returns and risks associated with mutual funds. By understanding these influences, investors can make more informed decisions and optimise their investment strategies

    The role of inflation in mutual fund performance

    Inflation is a critical macroeconomic factor that can significantly impact the performance of mutual funds. As the general price level rises, the purchasing power of money decreases, affecting the real returns of investments. Mutual funds that invest in fixed-income securities, such as bonds, are particularly sensitive to inflation. When inflation is high, the fixed interest payments from bonds may not keep up with the rising cost of living, leading to lower real returns. Conversely, equity-focused mutual funds may benefit from inflation if companies can pass on higher costs to consumers, potentially boosting their revenues and profits.

    Interest rates and their influence on mutual funds
    Interest rates, set by central banks, have a profound impact on mutual fund performance. When interest rates rise, the cost of borrowing increases, which can affect corporate profits and consumer spending. This, in turn, influences the stock market and the performance of equity mutual funds. Moreover, rising interest rates can lead to a decline in bond prices, negatively impacting fixed-income mutual funds. On the flip side, a decrease in interest rates can boost economic activity, potentially driving up stock prices and benefiting equity mutual funds. Understanding the relationship between interest rates and mutual fund performance is crucial for investors seeking to align their portfolios with changing economic conditions.

    The impact of economic growth on mutual funds

    Economic growth, measured by metrics such as GDP, plays a pivotal role in shaping mutual fund performance. A robust economy often leads to increased corporate earnings, higher employment rates, and improved consumer confidence, all of which can enhance the performance of equity mutual funds. In contrast, during periods of economic slowdown, mutual funds may face challenges as companies struggle with declining revenues and profits. Additionally, economic growth can influence the demand for commodities, affecting commodity-focused mutual funds. Investors need to consider the broader economic environment when evaluating the potential returns of mutual funds.

    Government policies and their effect on mutual funds

    Government policies, including fiscal measures and regulatory changes, can have a significant impact on mutual fund performance. Tax policies, for example, can influence the after-tax returns of mutual funds, affecting investor decisions. Changes in regulations can also impact the sectors in which mutual funds invest. For instance, stricter environmental regulations may affect energy-focused mutual funds, while policies promoting renewable energy could benefit funds investing in clean technology. Additionally, government spending and infrastructure projects can create opportunities for mutual funds invested in related sectors. Investors should stay informed about government policies to assess their potential impact on mutual fund performance.

    The influence of global events on mutual funds

    Global events, such as geopolitical tensions, trade agreements and natural disasters, can introduce volatility into financial markets and affect mutual fund performance. Geopolitical tensions may lead to market uncertainty, impacting investor sentiment and causing fluctuations in mutual fund returns. Trade agreements can affect the profitability of companies with international operations, influencing the performance of equity mutual funds. Natural disasters can disrupt supply chains and affect industries such as insurance and agriculture, impacting sector-specific mutual funds. Investors need to consider global events when assessing the risks and opportunities associated with mutual funds.

    Using an SIP calculator for informed mutual fund investments

    To navigate the complex landscape of mutual fund investments, tools like the SIP calculator can be invaluable. An SIP calculator helps investors estimate the future value of their systematic investment plan contributions, considering factors such as expected rate of return and investment tenure. By inputting different scenarios, investors can assess how macroeconomic factors might influence their investment outcomes. For instance, by adjusting the expected rate of return based on inflation projections or interest rate changes, investors can better plan their investment strategies and set realistic financial goals.

    To sum up

    Understanding the impact of macroeconomic factors on mutual fund performance is essential for making informed investment decisions. Additionally, utilising tools like the SIP calculator can enhance investment planning by providing insights into potential future returns. As the economic landscape continues to evolve, staying informed about macroeconomic factors will empower investors to navigate the complexities of mutual fund investments and achieve their long-term financial goals with less hassles.

     

  • Rural, tier 2 & 3 cities to drive the next leg of growth: Ashish Bhasin, DAN

    Rural, tier 2 & 3 cities to drive the next leg of growth: Ashish Bhasin, DAN

    NEW DELHI: After the sluggish growth in the previous few quarters, which is now further worsened by the Covid2019 pandemic, DAN CEO APAC and chairman India Ashish Bhasin is now bullish about the economic possibilities of the country. He feels that the worst has already happened and from here on it is going to be a month-on-month recovery path for the industry, he shared with Indiantelevision.com during a virtual fireside chat with founder CEO and editor-in-chief Anil Wanvari. 

    Bhasin noted that he doesn’t see a V-shape recovery happening but there are certain markets, which have already started signs of growth and will continue to do so, including automobile and FMCG.

    “FMCG was doing well during the lockdown too as it came under the essential services category and then also a function of sales-and-demand, managed pretty well. Another sector that has started showing signs of recovery is the automobile industry. I feel that post-pandemic more people will be preferring own transport and I see a rise in sales of motorbikes happening. Tractor sales did pretty well too, over the past few months and that will continue to do so,” he insisted. 

    He is also pinning his hopes for growth in rural and tier 2, tier 3 areas. “The harvest has been good this time and also the sowing season was pretty positive. Though the agriculture sector just contributes to the 15-16 per cent of the GDP, it will play a significant role in pulling the numbers up in the coming quarters. Also, more dispensible income in the hands of people will create a good supply-demand cycle. I see rural areas and tier 2, tier 3 cities driving the next leg of our growth.”

    Bhasin pointed out that in the rest of the industries, demand might not be a big problem but the struggles will be on the part of restoring the supply side logistics that have been badly hurt because of the pandemic. He sees sectors like cinema, real estate, and non-digital education entities taking quite some time to revive from here. 

    “It’s not like a switch that goes off during the lockdown and is suddenly up as the restrictions are lifted. One, it will take its own time for the labourers to come back, the production to start, and then supplies picking up. Even then, it is not going to be a straight way, there will be hiccups with cases spiking up or maybe demand going down,” he elaborated. 

    He stated that the pandemic has pushed the country behind by 2-2.5 years and it will take time till 2022 for the economy, as a function of various markets cumulatively, to reach 2019 level. 

  • India fourth most economically confident country: Ipsos Study

    India fourth most economically confident country: Ipsos Study

    MUMBAI: Little did anyone know that the Modi sarkar that had vowed to boost growth, control inflation and restore investor confidence will actually work wonders at such a short span.

     

    According to the study conducted by Ipsos, India’s economic confidence has got a major boost primarily due to a landslide victory of the business-friendly government led by Narendra Modi.

     

    ‘Ipsos Economic Pulse of the World’ survey reports that the country’s economic confidence shot up by six points to 66 per cent in May 2014 compared to April 2014, making it the fourth most economically confident country in the world after Saudi Arabia, Germany and China.

     

    Indians are the most optimistic people in the world and are very confident of good time coming soon. For the very first time India (60 per cent) tops the list of countries whose citizens expect that its economy will be stronger in next half year. Marginally less than a half of Indian citizens (43 per cent) believe their local economy which impacts their personal finance is good, a significant rise of five points.

     

    “All the data points in the Ipsos report indicate that India’s economic confidence has shot up substantially, which is also corroborated by the fact that India’s current account deficit has significantly eased, the currency has stabilised, inflation has substantially pulled back, stock market had a dream run so far and corporate earnings are improving,” said Ipsos CEO Mick Gordon in India.

     

    “However, recent high food inflation, conflict in oil-producing Iraq and the fear of a below normal monsoon is big challenge for the new government,” added Gordon.

     

    The online ‘Ipsos Economic Pulse of the World’ survey was conducted in May 2014 among 19,242 people in 25 countries. For the results of the survey herein, a total sample of 19,242 adults aged 18-64 in US and Canada, and aged 16-64 in all other countries, were interviewed between 1 and 15 April 2014.

     

    For a second month in a row, the average global economic assessment of national economies surveyed in 25 countries remains unchanged as 39 per cent of global citizens rate their national economies to be good.

     

    Although down two points since last round, Saudi Arabia (87 per cent) is in the lead once again, with Germany (75 per cent), China (66 per cent), India (66 per cent), Canada (65 per cent), Sweden (64 per cent) and Indonesia (59 per cent) following behind. European countries dominate the bottom of the global average: France (9 per cent), Italy (9 per cent), Spain (10 per cent), Romania (10 per cent), Hungary (18 per cent) and Argentina (18 per cent).

     

    Countries with the greatest improvements in this wave: South Africa (28 per cent, 10points), Indonesia (59 per cent, 9 points), Russia (58 per cent, 8points), India (66 per cent, 6points), Great Britain (43 per cent, 6points), Poland (31 per cent, 6points) and Belgium (42 per cent, 2points).

     

    Countries with the greatest declines: Australia (53 per cent, -7pts), Hungary (18 per cent, -6pts), Brazil (20 per cent, -6pts), South Korea (19 per cent, -4pts), Sweden (64 per cent, -2pts), Saudi Arabia (87 per cent, -2pts) and China (66 per cent, -2pts).

     

    Up three points since last sounding, Saudi Arabia (67 per cent) leads the local economy assessment which impacts their personal finance, followed by Germany (55 per cent), Sweden (51 per cent), China (48 per cent), India (43 per cent), Canada (42 per cent), and Indonesia (39 per cent). Ranked the lowest in this measure this month is Italy (9 per cent), followed by Spain (11 per cent), Romania (12 per cent), Hungary (13 per cent), France (13 per cent), Japan (14 per cent) and Argentina (15 per cent).

     

    New leader emerges, as for the first time India (60 per cent) tops the list of countries that predict their local economies will be stronger in the next six months. The rest of the highest-ranking countries are: Brazil (56 per cent), Saudi Arabia (53 per cent), Indonesia (50 per cent), China (39 per cent), Mexico (31 per cent) and Argentina (31 per cent). Only 6 per cent of those in France expect their future local economies will be “stronger” in the next half year, followed by South Africa (11 per cent), South Korea (13 per cent), Hungary (14 per cent) and Japan (14 per cent).

  • Microsoft’s Xbox 360 unveils ‘Viva Piñata’ in US

    Microsoft’s Xbox 360 unveils ‘Viva Piñata’ in US

    MUMBAI: Microsoft Corp. will celebrate the launch of Viva Piñata on Xbox 360, with a multi-city tour in the US, by presenting children’s activities and video game demonstrations at six launch events in New York, Miami and Los Angeles. It will also provide parents with information about online safety and Viva Piñata-related educational programs for children.

    The Xbox 360 video game follows the debut of the Viva Piñata Saturday morning animated television series on 4Kids TV Fox, states an official release.

    “The Xbox 360 game Viva Piñata inspired us to take the spirit of the game and expand the concept to create learning tools to help kids experience more about their Hispanic heritage in a fun and engaging way,” said Microsoft director of Xbox marketing Chris Di Cesare. “One example is a Viva Piñata digital desktop pet piñata that people can download to their computer. Every day the piñata will share new information about Hispanic culture from key holidays to Spanish vocabulary.”

    Children attending the events can enjoy piñata-making workshops, interactive video game demonstrations and the opportunity to be photographed with the characters from the Viva Piñata animated TV series. A traditional piñata breaking game will also give children an opportunity to win an Xbox 360 and Viva Piñata game.

    Viva Piñata, which translates to “long live the piñata,” invites gamers of all ages and skill levels to create an immersive world where living piñatas inhabit an ever-changing environment. Beginning with a few basic tools, players build and take control of this environment, using their creativity and imagination to attract, protect, nurture and manage more than 60 piñata species that can visit their world and make it their home.

    With the launch of Viva Piñata, Microsoft extends the Xbox 360 brand to younger gamers and more diverse audiences. The tour is one of several Microsoft marketing efforts aimed at attracting more U.S. Hispanic consumers, and acknowledgement of the growing influence of Hispanic culture.

    According to a report published by the Selig Center for Economic Growth at the University of Georgia’s Terry College of Business, U.S. Hispanics will control more disposable personal income than any other U.S. minority group by 2007. Hispanic consumer spending power is expected to top $863 billion, a 300 percent increase in disposable spending power from 1990, adds the release.

    “The video game is one of several initiatives that Microsoft has created in an effort to promote diversity through innovative products,” said Microsoft director of Multi-Cultural Marketing José Piñero. “Microsoft’s initiative around Viva Piñata is a clear indication of the company’s support and interest in the Hispanic community.”