Recently, Private sector insurer – Bharti AXA Life Insurance launched Aajeevan Anand plan. It provides guaranteed regular payouts after every 5 years and life cover until the age of 100 years.So, Aajeevan Anand Plan covers complete insurance of 100 years with guaranteed return after every 5 years.An online news portal about business and economy - economictimes.indiatimes.com, quotes a statement of Bharti AXA Life Chief Marketing and Operations Officer (CMOO) - Mark Meehan, “Aajeevan Anand is a powerful financial solution that provides guaranteed regular payouts to meet various life stage needs until the age of 100.”Aajeevan Anand of Bharti AXA Life Insurance is being recognized as a powerful financial solution also.Further he said to the ET, “In addition to these lifelong paybacks, the product provides customers with life...
ING Life India Launched ING Market Shield ULIP
Recently, ING Life India launched a new unique Unit Linked Insurance Product - ING Market Shield. It provides the customer the opportunity to participate in the equity market while protecting investments from its downside.An online news portal about business and economy - economictimes.indiatimes.com, quoted a statement of Rahul Agarwal, Chief Distribution Officer, ING Life India, “The new ULIP, ING Market Shield comes with unique benefits, allowing customers to maximize their returns and have adequate protection.”Further Agarwal said, “ING Market Shield is a one of its kind unit linked insurance product. It is designed such that our customers can benefit from market's upswaing due to high equality participation, but secures their investment from losses, when the market is volatile. The plan provides the customer a Guaranteed...
Pramerica Dynamic Fund Launched by Pramerica Mutual Fund
Recently, Pramerica MF introduced its open-ended dynamic asset - Pramerica Dynamic Fund. The Fund is launched using a proprietary tool - Pramerica Dynamic Asset Rebalancing Tool (Pramerica Dart).Pramerica Dynamic Fund scheme will invest in debt and equity instruments. The allocation to equity and debt of Pramerica Dynamic Fund will be determined by Pramerica Dart.An online news portal about business and economy - economictimes.indiatimes.com, writes about Pramerica Dynamic Fund of Pramerica MF, “The tool takes into account three key factors that influence the markets - fundamentals, volatility and liquidity and comes out with a score that tells how much of equity should be held in the portfolio. This can range from 100-30% in equity depending on market valuations. Fund managers will actively manage the portfolio within...
Classic ULIP Plan Launched by Reliance Life
Recently, Reliance Life Insurance launched a unit-linked insurance plan - Classic ULIP Plan. The policy provides policyholders the benefits of regular savings with enhanced protection and market-linked returns.Classic ULIP Plan would provide protection to policyholders in the age group of 7-65 years. An online news portal about business and economy - economictimes.indiatimes.com, quotes a statement of Reliance Life about Classic Ulip plan, “The unique proposition of Reliance Life Insurance Classic Plan is that it offers flexibility and triple benefit of savings, insurance and investment - all in one single plan.”The news portal quotes a statement of Malay Ghosh who is Executive Director and President in Reliance Life, “The new Ulip offers multiple benefits and protection - from helping policyholders plan their finances...
SIP Investments via NSE-MFSS Platform to be launched by UTI
Recently, UTI Mutual Fund announced the launch of SIP investments (Systematic Investment Plans) through NSE's-the Mutual Fund Service System (MFSS) platform.An online news portal about business and economy - economictimes.indiatimes.com, quotes a statement of the company, “UTI Mutual Fund was the first fund house to partner with the National Stock Exchange (NSE) for selling mutual fund schemes through the NSE-MFSS platform in the month of November 2009.Keeping with that tradition of bringing the most convenient way of investment to our investors through cutting edge technology, we are the first fund house now to launch SIP investments (Systematic Investment Plans) through this NSE-MFSS platform.”So, UTI Mutual Fund is bringing the most convenient way of investment. It offers cutting edge technology through the investment....
4 New Products Launched by DLF Pramerica Life
Recently, DLF Pramerica Life, a private sector insurer launched 4 new insurance products including two traditional plan.DLF Pramerica Life Insurance said in a statement, “The traditional non-linked products namely DLF Pramerica Assure Money Plus and DLF Pramerica Tatkaal Suraksha Gold provides saving as well as protection.”DLF Pramerica Assure Money Plus and DLF Pramerica Tatkaal Suraksha Gold are non-linked products of DLF Pramerica Life.Further it said, “Assure Money Plus provides minimum guaranteed earnings on maturity along with the advantage of high life insurance cover.Besides, it also launched two unit linked products namely DLF Pramerica Wealth Plus Premier and DLF Pramerica Ezee Wealth Plus with simplified underwriting.DLF Pramerica Wealth Plus Premier is a good product for high net worth individuals seeking potentially...
Index Fund Launched by Reliance Mutual Fund
Recently, Reliance Mutual Fund which is a leading asset management firm launched an open-ended index fund. It will invest in companies whose securities are covered in the Nifty and the Sensex.Reliance Mutual Fund said in a statement about Index Fund, “The scheme proposes to invest 95-100 per cent in equities and equity-related securities covered by the Nifty and the Sensex.” It was published in the ET.The scheme gives a chance to invest almost 100% in equities and equity-related securities. It is covered by the Nifty and the Sensex.About the Index Fund of Reliance Mutual Fund, economictimes.indiatimes.com writes, “Available in both growth and dividend option, the minimum investment amount is Rs 5,000. Adding, entry load is nil for the scheme, whereas the exit load is 1 per cent for holding period of up to 12 months and...
SBI Life Launches Smart Performer and Unit Plus Super
Recently, Private insurer SBI Life launched two Unit-Linked Life Insurance Policies (ULIPs) - Smart Performer and Unit Plus Super. These ULIPs plans are compatible with the new IRDA guidelines that are already effective.About the two new ULIPs, SBI Life said in a press release, “SBI Life has launched Smart Performer and Unit Plus Super... In compliance with the new IRDA guidelines, these newly launched ULIPs are equipped with enhanced features such as benefits of higher protection, multiple investment options and a wide range of riders.”So, the two new ULIPs - Smart Performer and Unit Plus Super are well-matched with the new IRDA guidelines also. These are equipped with enhanced features also such as benefits of higher protection, multiple investment options and a wide range of riders.Further MD & CEO M N Rao of SBI...
Reliance Capital Asset Management Plans to Launch Islamic Funds in Malaysia
Recently, a subsidiary of Reliance Capital Asset Management has announced to launch two Islamic funds in Malaysia by July. It will roll out products for retail investors in two years.About the Reliance Capital Islamic Funds, economictimes.indiatimes.com writes, “Reliance, India's largest asset management company, will launch a fund investing in Indian stocks next week and a quantitative global equity fund investing in the US, Europe and Asia in July. Both funds would be managed out of Malaysia.”Vikrant Gugnani who is the Reliance Capital's international businesses CEO said to ET, “The long-term objective is to target the retail sharia market in the region. We believe the retail story in Malaysia has yet to unfold and we want to be positioned well before to take advantage of (it).”Reliance Capital Asset Management is the...
ICICI Prudential Nifty Junior Index Fund Launched
Recently, ICICI Prudential AMC announced the launch of Nifty Junior Index Fund. It is an open-ended index fund that allows users to invest in companies whose securities are included in Nifty Junior Index.The New Fund Offer opens from June 10. It will end on June 21. It is declared in a statement by the company.The fund is being considered as the country's first open-ended index fund to track CNX Nifty Junior.About the ICICI Prudential Nifty Junior Index Fund economictimes.indiatimes.com, an online news portal about news and economy says, “Mutual fund major, ICICI Prudential AMC launched its ICICI Prudential Nifty Junior Index Fund, an open-ended index fund that will invest in companies whose securities are included in Nifty Junior Index.”So, it is an open-ended index fund. You are able to invest in companies whose securities...
Monetary Policy in Depression and in Inflation from Business Cycle
Monetary Policy in Depression:In the atmosphere of depression, there is a need to encourage investment and so the loans are made cheaper to stimulate investment and increase the demand by increasing income and employment because a cheap money policy will discourage saving and promote investment.It is said that the Monetary Policy has less scope in depression and fails to bring the economy out of depression, as the MEC is low and so the businessmen are scared to invest, even though the rate of interest is low. Rate of interest is the factor but not the only factor for investment.Businessmen borrow when the business is expanding not when it is declining. However, we cannot say it is totally useless because it can stimulate demand for durable goods and private investment. But open market operation can increase the liquidity...
Multiplier-Acceleration Interaction Principle of Business Cycle
Samuelson’s model is regarded as the first step in the direction of integrating theory of Multiplier and the principle of Acceleration. His model shows how the multiplier and acceleration interact with each other to generate income, to increase consumption and investment, demand more than expected and how this causes economic fluctuations.To understand Samuelson’s model, let us first understand derived investment. Derived demand is the investment in capital equipment, which is undertaken due to increase in consumption making new investment necessary. We will try to understand this interaction briefly. When autonomous investment takes place in a society, income of the people rises and the process of Multiplier start increasing the income, which leads to the increase in demand for consumer goods depending on the marginal...
Pure Monetary Theory of Business Cycle from Managerial Economics
According to Prof. R. G. Hawtrey, a British economist, there is direct relationship between volume of money supply and the economic activity. Wherever there is change in the flow of money or money supply changes, there will be business fluctuations. Here, he means the credit creation by the banking system i.e., expansion in bank credit leads to demand and so the upswing of business cycle starts. On the other hand, when there is decrease in money supply through contraction of bank credit, it leads to down swing and thus leads to depression.Expansion of bank credit happens when interest rates are reduced, which means, the loans are cheaper. Due to liberal loans, the profit margins change as they are very sensitive to the change in interest rate.Thus, investment increases and so the employment, which in turn increase the...
Over-Investment Theory of Business Cycle from Managerial Economics
A.F. Hayek assumes economy in equilibrium. Whenever this equilibrium is disturbed then there is expansion or contraction. This theory says that when the economy is in equilibrium, the rate of interest is such that Saving = Investment there is no unemployed resources.Suppose the bank credit expansion takes place, then the equilibrium rate of interest is disturbed. This low market rate of interest will tempt the businessmen to borrow more and invest in new ventures. This leads to upswing in business cycle; as a result employment, output, profit and demand increases.But then this phase does not continue indefinitely. Due to scarcity of resources, this expansion phase cannot go on and on. But due to increase in price, the people are forced to decrease consumption and start saving more. This forced saving due to high price...
Schumpeter Theory of Business Cycle in Managerial Economics
Joseph Schumpeter has explained the expansion and contraction through industrial innovation. Innovation is an actual application invention; whereas invention is discovery of something new.Invention converts into innovation. In this theory, the innovation can be introduction of new product, market source of raw material, opening of new market in business. An entrepreneur is an innovator, he has the knowledge to do something new, daring and foresight to go ahead of others and in this process he demands funds from banking system. Now, we will examine how innovation causes business fluctuations. In this theory, Schumpeter says, any innovation causes business fluctuations. In this theory, Schumpeter says, any innovation can move the economy to disequilibrium from equilibrium and this will continue till the new equilibrium position...
Phases of Business Cycle in Business and Financial Market
After understanding what are business cycle and their characteristics, we will take each phase of business cycle in detail.Prosperity or Expansion:This phase of business cycle is called the upswing. This phase is in the upper half of the cycle. To start with, we will try to see how this phase begins. It starts from equilibrium position. When the demand increases, the demand of raw material also increases and so the employment which again leads to increase in employment in other industry. As the consumption increases, general employment also increases. The wages, salaries, interest rates, taxes and the cost do not increase in the same proportion and consequently profit margins go up. There is a general feeling of optimism, and the production capacity of the economy is fully utilized. The rise in general price is marked...
Business Cycle and Characteristics of Business Cycle
Business cycle is also called Trade Cycle. The business is never steady. There are always ups and downs in economic activity. This cyclical movement both upwards and downwards is commonly called Trade Cycle. This is a wave like movement in regular manner in business cycle. In business, there are flourishing activities, which take economy to prosperity and growth whereas there are periods when there is recession, which leads to decline in the employment, income and output. When the economy goes into downswing then there is a stage of recovery to reach a new boom.Definition and characteristics of business cycle:Definition:According to Keynes, “Trade Cycle is composed of periods of good trade characterized by rising price and low unemployment percentage altering with periods of bad trade characterized by falling price and...
Marginal Efficiency of Capital and Investment in Business
Marginal efficiency of capital and rate of interest are the main factors which affect investment. Demand analysis is the basic aspect of investment.Marginal Efficiency of Capital (MEC) – Any investment decision depends not only on rate of interest but also whether or not the expected rate of returns on the investment is greater than cost of borrowing the funds. In these two factors, the MEC is an important factor because MEC is the expected rate of returns from the investment. If the returns expected are low, then the investment is not profitable because in short run, rate of interest is stable. In MEC, capital means the real productive assets. MEC depends on expected rate of returns of a capital asset over its life time which is also called Prospective Yield and the supply price of capital assets. Any business man will...
Consumption Function and Law of Consumption from Managerial Economics
Consumption function is the basic theories given in Macro economics. We already have discussed about the theory of consumers surplus and analysis of market structure. Now, we will raise a debate on consumption function and law of consumption. The theory is taken from Managerial Economics book of SMU. It is MB0026 book code of Sikkim Manipal University for MBA.Psychological Law of Consumption:Consumption means using goods and services for satisfying current wants. We spend major portion of our income on consumption. Consumption expenditure means house hold spending, which satisfies our immediate wants. Under this section, we will study...
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