Gold loans: The “Titan” moment for Muthoot Finance

Gold loans: The “Titan” moment for Muthoot Finance Q1FY22 represented a perfect storm for the gold loan sector. Gold prices had crashed 15% towards the end of Q4FY21, lock-downs had impacted demand as well as ability of customers of earn & repay, and banks had to deal with additional problem of lowering LTVs from 83% to 68%. It was no surprise that most players witnessed de-growth in loan book, rise in NPAs and subdued profitability for the quarter. Tough times generally separate the men ...
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Microfinance (MFI) – Blame it all on COVID?

Just when the MFIs were trying to write-off the Covid losses and re-start their growth journey, the 2 nd wave came and hit them. Given that this wave has penetrated the depth of India’s hinterland, the MFI sector has been very vocal is demanding an emergency credit line of Rs.15,000crs, government relief through Partial Guarantee scheme and enhancement the lending rate. As investors, we may be tempted to think that last few quarters should be treated as “exceptional” due to cyclones, special ...
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Gold – Give your portfolio the golden touch!

It was refreshing to meet some old friends outside a popular sandwich joint; especially after being home confined for almost 7 months. An unsaid ritual of sorts, I was asked for a “stock tip”. This time, I shared that ‘Gold’ seems attractive for the next few years. On expected lines, one of them quickly retorted “Markets are on steroids, so many stocks are flying up 5% & 10% daily. Of all the stocks in the world, you want us to buy gold, which is already at Rs. 50,000!”. Surely, a lot...
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REITs – “Office” in your Demat account!

Exasperated of being confined to home since Covid-19 outbreak, Mr. Kapoor & family finally decided to take a break and drive down from Mumbai to Khandala, a popular weekend getaway. While driving through Mumbai, his eyes fell on the glittering office buildings, first at the Bandra Kurla Complex (BKC) and later at Airoli/Ghansoli. A simple thought crossed his mind: “This work from home (WFH) trend would have reduced the property prices here too. Once Covid is over, these offices will o...
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Fixed Deposits – Something’s Surely Not Fixed!

Fixed Deposits – Something’s Surely Not Fixed! Like many Indians, Sonali prefers to park most of her savings in bank fixed deposits (FDs). She is well aware that due to the safe nature of FDs, the returns on them are low. Yet, she was in for a surprise when she had to renew one of her maturing FD, and could hardly believe that long term FDs were just yielding ~5.0%, the lowest in her lifetime. What’s happening today has happened before! Most of us do know that post-Covid, Central Bank a...
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ULIPs – Smarter way for Tax Planning & Investing compared to Mutual Funds

As the year comes to an end, many of you would rush to make year-end investments for tax planning, while some of you may want to plan for the coming financial year. There are some important changes that have taken place over past year which should be included in your planning. • Change 1: Mutual funds will attract 10% Long term tax & 15% Short term tax from this year. • Change 2: ULIPs continue to remain exempt from long term tax. Some of you may remember that ULIPs had become a bad w...
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Gold Bonds – An Investment Opportunity

The lure of yellow metal for Indians has stood the test of time courtesy the well-entrenched cultural psyche of gifting gold during marriage, purchasing gold during auspicious occasions, etc. GreenEdge’s View on Gold Gold has been accepted as a store of value since the last ~5,000 years in the minds of human beings. No other currency can boast of such a feat. (We all know the fate of crytos, bitcoins today after the initial hoopla surrounding it. You can read our Bitcoin article here – Memo 22...
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What we learnt from our Customers’ Financial Planning?

“6 time Grand Slam champion Boris Becker was declared bankrupt.” “The famous Baywatch babe Pamela Anderson went from becoming a millionaire to going broke” These stories, though startling, are not uncommon. You can read Pamela Anderson’s story here - https://greenedgewealth.com/2016/10/25/what-pamela-anderson-teaches-us-about-investments/ Why should financial planning be done? Over last 18 months, we have completed financial planning for many clients. We were pleasantly surprised with th...
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GreenEdge Features in Mint

GreenEdge  Features in Mint Our story features in Mint newspaper today! The story of how GreenEdge Wealth is helping working professionals & young entrepreneurs participate in India’s growth story through a combination of stock markets and overall financial planning. Please find the link to the article below. The story of GreenEdge’s customer features in Mint newspaper Thank you for the love and support. Best Regards, Team GreenEdge  
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Why I Didn’t Heed My Father’s Financial Advice?

Wishing all the Dads – “A Very Happy Father’s Day” On the occasion of Father’s Day, the title may sound blasphemous. But let me clarify, like many of you, even my father is my hero and I am indebted to him for his priceless guidance, teachings, upbringing and unconditional affection.  Post my MBA, when I started working and getting my paychecks, he tried to indoctrinate me into believing his 4 hallowed cardinal principles of investing which are outlined below. In my role of Investment Advisor,...
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