The Indian summer monsoon has a major impact on agriculture, and therefore the economy, in India. It is responsible for 80% of the country's annual rainfall. Farmers rely on this seasonal rain to grow essential crops.
The Indian Summer Monsoon is influenced by the El Nino Southern Oscillation (ENSO), which causes extreme weather in different parts of the world, as stated by researchers. The ENSO is mainly caused by fluctuations in sea surface temperature around central to east tropical Pacific Ocean. There are two opposite phases: El Nino and La Nina.
The findings could allow government and policymakers to make more informed decision. The outlook will drastically change for April and May.
Read more at economictimes.indiatimes.com/news/science/researchers-improve-monsoon-forecast-in-india/articleshow/53224797.cms.
Large disposable incomes, still struggling to find the right investments to park excess fund?
Sky high salaries are more a norm than an exception in the emerging Indian economy. Majority of people are unaware that customized products can be built with the guidance of Investment Advisors to meet the specific needs of different people.
Portfolio Management Service (PMS): This Service is offered by brokerages and Mutual Funds that are registered with SEBI, and the person handling the portfolio is Portfolio manager. This is usually offered to individuals or institutional entities with high net worth. The service can be tailored to meet specific investment objectives. The portfolio can be diversified into different financial vehicles like stocks, debt, cash, money market securities, and other index linked products. The Investment Manager takes investment decisions on behalf of the client, which is known as discretionary service.
So how is PMS different from Mutual Fund?
The funds of various investors are NOT pooled into a common fund which is the common practice followed in mutual fund. Each portfolio is managed separately on a case to case basis by the Investment manager. The investor holds his\her stocks in a demat account and the investment manager has the power of attorney to operate it on the client’s behalf.
Investment banks and investment houses focus mainly on institutional investors and High-Net-Worth Individuals (HNI) with Structured products.
Structured Product: A structured product is also known as market linked investment. It is an investment strategy based on a single security or a basket of securities such as options, indices, commodities, debt, or foreign currencies. Some structured products are known as “principal guarantee” securities, which offer protection of principal if held to maturity. This is used as an alternative to direct investments. It invests in derivatives to hedge the systematic risk in the market. It is used by investment houses and investment banks to meet the risk-return objectives, which cannot be met using traditional and standardized financial products available in the market. Some of the simplest structured products include ETFs, convertible bonds, and zero-coupon bonds. HNI investors use the structured products in their portfolio as a way of portfolio diversification.