Federal Reserve Delivered 50 bps Rate Hike

Federal Reserve Delivered 50 bps Rate hike
  • The Federal Reserve delivered the biggest interest-rate increase of 50 bps since 2000 and signaled it would keep hiking at that pace over the next couple of meetings
  • The Fed has announced that it will start reducing its huge $9 trillion balance sheet, which consists mainly of treasury and mortgage bonds.
  • Core inflation is at elevated levels and inflationary pressures have been broadening out.
  • Headline Personal Consumption Expenditure (PCE) inflation for February came in at 6.4% on a 12-month basis.
  • Durable goods inflation, particularly in autos, accounted for slightly more than one-fifth of total PCE inflation in February.
  • Geopolitical events pose downside risks to growth.
  • The U.S. economy entered a period of uncertainty with considerable momentum in demand and a strong labor market.
  • Powell’s remarks have given a further lift to the US markets, as he dashed speculation that the Fed was weighing an even larger increase of 75 bps in the months ahead.

Outlook & Conclusion
Inflation has been accelerated by a combination of robust consumer spending, chronic supply bottlenecks and sharply higher gas and food prices, exacerbated by Russia’s war against Ukraine. Core inflation is likely to remain elevated in the coming months. The Fed said it would allow up to $48 bn in bonds to mature without replacing them Starting June 1, that would reach $95 bn by September. Its balance sheet would shrink by about $1 trillion a year at September’s pace. Jerome Powell has said he wants to quickly raise the Fed’s rate to a level that neither stimulates nor restrains economic growth. Higher rates indicate higher loan rates for many consumers and businesses over time, including for mortgages, credit cards and auto loans. The central bank hopes that higher borrowing costs will slow spending enough to tame inflation and not so much as to cause a recession. The rate hike was very much anticipated in case of US and Brazil unlike India which surprisingly hiked rates by 40bps on 4 May 2022, well before the monetary policy in Jun 2022.

4 Cryptocurrencies with Intriguing Growth Potential in 2022

4 Cryptocurrencies with Intriguing Growth Potential in 2022

Cryptocurrency can be an extremely profitable investment, but the market is also filled with overly-hyped opportunities. Headlines are full of stories of tokens rising and turning their owners into millionaires, only to drop in value in a matter of seconds. Nevertheless, there is still a lot of potential for growth, and business savvy investors may be able to earn a considerable profit in 2022. Let’s review some of the most promising cryptocurrencies for this next year.

WazirX (WRX)

WazirX is an Indian cryptocurrency marketplace with an extremely user-friendly interface. By using the network’s native token WRX, users have access to additional benefits, such as significantly lower fees. The cryptocurrency market in India is expected to face increased regulation, but it also has an enormous growth potential based on the level of technological literacy among its population.

Solana (SOL)

Solana emerged as a solution for two important problems plaguing older cryptocurrencies. First, Solana is based on its own blockchain which uses a recent innovation called Proof of History. This allows time records, which are necessary to validate each translation, to be stored inside the blockchain itself instead of using external software. More importantly, Solana is able to process transactions many times faster than other cryptocurrencies, reducing its costs. As a result, the price of the coin has soared through 2021, and its value is expected to continue to grow this year.

Chiliz (CHZ)

Chiliz is an Ethereum based token used to purchase fan tokens representing sports teams. The portal Socios allows fans to purchase tokens granting them benefits like free tickets or discounts, as well as voting power over certain team choices. As a result, the value of fan tokens for worldwide known clubs such as Barcelona and the Chicago Bulls has risen considerably. The price of the coin is still relatively low, but the number of teams is in constant expansion, and the company is starting to offer eSport related tokens, suggesting a considerable growth potential for 2022.

Illuvium (ILV)

Illuvium is a cryptocurrency-based game where players can capture creatures with different abilities, and make them fight to power them up. As with fan tokens, Illuvium grants owners benefits and a certain level of voting rights. What sets this game apart is that it allows players to trade their rarest and most powerful creatures as NFTs using their proprietary currency. The model has already been successfully tested by Axie Infinity, but Illuvium’s potential relies on its more advanced gameplay and graphics, which is expected to lure more conventional gamers. The coin has already surpassed the $1,000 mark, and the game has only just launched.

Cryptocurrency remains a highly volatile asset, but there are ways to reduce the risk. Portals like Investopedia provide an excellent explanation of how blockchain technology works, while services like VSRK offer in-detail financial advice necessary before investing in any risky but highly profitable endeavors. There are many profitable opportunities waiting for investors, but in order to make sense of all the noise, it’s important to do the necessary research first.

Indian Chemical Industry: The Next Eye Catchy Sector!

Indian Chemical Industry The Next Eye Catchy Sector!

The Indian Chemical Industry is growing in leaps & bounds not only in India but also  the world. It not only plays a vital role in our economic development but also serves  as an important ingredient for the industrial and agricultural development. The  Indian Chemical & Petrochemical Industry is currently valued at close to $180 Billion  i.e. ~3% of the global chemical industry and is expected to reach $300 Billion by  2025. 

India’s Specialty Chemical Industry has been esteemed at $35 Billion and is well  tranquil for growth. It has grown by 13%-14% in the last five years and is expected  to reach $70 Billion by 2025. It is to be noted that a sharp fall in the crude prices  from $100 to $35/barrel has improvised the margins for alluring chemical players.  The Colorant Chemical Industry is worth $7 Billion in India thereby exporting more  than 72% of the annual production. 

A huge domestic consumption is major growth driver behind India’s Chemical Industry. Indians consume more than 40% of its output with promising new heights.  The growing urbanization and increasing disposable incomes of the Indian economy  is fueling substantial growth of the domestic Chemical Industry. Chemicals  constitute close to 5.5% of total Indian exports. 

After the giant dye manufacturer from China has been shut down due to  governmental policies, which has created a fairly huge supply glut and increased the  profitability of Indian companies. As a key ballooning element for developing  economy, the government has permitted cent percent FDI through automatic route  and de-licensed the manufacture of most of the chemical products except a few  hazardous chemicals. 

Notably, such chemical majors have a commanding market share in their respective  segments. Great rallies can be expected in the Indian chemical markets till the time  Chinese competitors become operational again. 

This will create volatility in the prices of the chemicals and India is set to be  benefitted the most from this in the near future. VSRK is all engaged to earn the  revenue from the same for its reputed investors.

Infinite Health and Wealth at VSRK

Infinite Health and Wealth at VSRK

VSRK is acting as a catalyst to promote awareness in managing funds which would cater to both the health and wealth security processes affecting families. An important economic subject of concern which largely affects the upliftment of any individual is health and financial security.

The relationship – financial security, health and happiness

It’s seen that nothing makes people happier or more confident than the satisfaction & contentment of having secure finances. The investors are blessed tremendously with the peace of mind that comes with having the financial basics covered. It’s not only the wealth which induces the feeling of financial security but rather the knowledge of having built a shield of financial protection to defend loved ones against life’s inevitable uncertainty. 

Unplanned financial emergencies

Rainy day savings or an emergency fund, if you don’t have one, start saving now to accumulate at least 6 months’ worth of necessary expenditures. Learn from the Pandemic that could be finding yourself unemployed for a period, huge unexpected medical emergencies or urgently replacing motor vehicle.

Family’s health

The rising cost of healthcare as primary concern of Indians with 63% experiencing high or moderate levels of anxiety over the issue. Additionally, 73% fear from an unplanned medical emergency. VSRK brings the good news that this fear can be eliminated by taking out a comprehensive health insurance policy. The financial risk is transferred to your insurer & that brings the real peace of mind.

Loss of income after death

Hopefully everyone lives a long and happy life but the truth is that nobody is mortal. Getting an insurance and knowing that a lump sum payment would be forthcoming if you came to an early demise is reassuring and the ultimate in protection from beyond the grave.

Protect your estate

One can follow some steps to minimize the amount of inheritance tax payable when one dies. There are other essential to dos such as naming guardians for your children and, for expats, cross-border estate planning issues to take into account, particularly for those with assets in different jurisdictions. Professional advice by VSRK is essential & helpful.

There is a lot that can be done towards your financial security by VSRK. It might be formidable but your one step will amaze you how quickly we will build your family’s protective shield and your peace of mind.

5 Important Financial Tips for Payday

Financial Tips for Payday

How often have you experienced being broke just after a few days of receiving your salary? Well, it is not just you but hundreds of other people who find themselves in the same scenario. You may feel guilty that time but see yourself getting in the same position every time. If this sounds like you or someone you know, keep reading. 

1.Chart Out Your Monthly Budgets 

The first thing that everybody needs to do is to chart out their monthly budget. For this, check out your salary slip; it will give you a fair idea of deductions from your salary. You’ll get to know whether you need to make any investments. Remember, investments are made not only for wealth purposes but also to reduce annual tax liabilities. After you have understood your salary structure, list out the in-hand salary that you have received together with all the expenses this month. It helps you to get a structured estimate of your funds. 

2.Prioritize Your Investments and Expenses

This step includes planning and prioritizing your investments and expenditure for the month. Most people follow a ‘spend first, invest later’ approach which prefers taking out all the expenses they intend to incur and invest whatever amount is left. However, if you follow this, it may lead to extravagant spending. Leading financial advisor suggests an ‘invest first, spend later’ approach. It states that one should make investments first and utilize the left amount later. It builds a disciplined investment habit.  

3.Be Careful of Extravagant Offers & Schemes

Most retail companies offer heavy discount or other schemes at the last or start of the month. One should be careful of these schemes as it leads to spending more in the name of mere discounts or buying products that you do not even need. You should strictly adhere to the expense budget that you had made above. A lot of people unnecessarily buy subscriptions to applications and services that they don’t even use. Be cautious of all such wasteful expenses. 

4.Build Emergency Fund

Situations like the current Covid-19 pandemic where millions of people lost jobs, fell ill or even died are the reasons why it is crucial to maintain an emergency fund. It should be a large fund to accommodate all expenses of at least 6 to 12 months. It should cover all necessary payments that you will need to make for your livelihood, including food bills, electricity bill, water bill, insurance policy payments, EMIs. The amount should not sit idle. You can invest them in liquid funds. It saves your funds from the effects of inflation while ensuring withdrawal whenever you want.  

5.Simultaneously settle your debt

While managing your expenses and investment, make sure that you pay off outstanding loans and other liabilities. Paying out the debt reduces the burden on your income and ensures that there is no additional interest. Keeping the practice of paying out the loans and other liabilities ensures a debt-free future. 

Making a note of financial status is very important. Every individual shall be of utmost caution of all the expenses that he makes. Working out one’s budget on a spreadsheet or piece of paper can work out wonders for an individual. It provides a clear outline of earnings, investment and expenses. If followed diligently, this can make one a master of his financial status rather than driven by his sentiments.

Top 4 Signs You’re Dealing With An Investment Scam

Top 4 Signs You’re Dealing With An Investment Scam

Many people picture out successful investors to be riding in sleek cars, going to fancy dinners, sail on yachts, and just have the time of their lives. What many people don’t see is the hard work and discipline that goes into investing. 

But the flashy cars, upscale houses, glitz, and glamour can easily suck in an aspiring investor like you, especially when these things are hyped all over social media. When this happens, you can get blindsided, your emotions will run high, and then the next thing you know, you got roped into an investment scam. If you’re willing to go down a rabbit hole about real financial scams and experiences, this website is a great place to start with.

Like the victims of that website linked above, you may also find it difficult to spot an investment scam, especially when you’re new to investing. It’s even harder to detect if the supposed investment is being offered or introduced by someone you know or trust. 

Fortunately, there are early signs that can tell you that you’re dealing with an investment scam. Below are four aspects that you must watch out for:

1.Guaranteed High Returns Within A Short Time

When you’re guaranteed high returns within a short period of time and with no risks whatsoever, then run. This is the hallmark of an investment scam. Always remember that ‘if it sounds too good to be true, then it probably is.’ 

No legitimate bank or investment company can promise high returns within a short time since it would be unsustainable. Sure, you can earn high returns from stock investments and trading, but all these come at a huge risk. Such risks are usually made known to you by your broker, financial advisor, or are written in a contract.

Initially, investors of a financial scam get their returns as promised but since it’s impossible to maintain, the whole scheme eventually collapses. So, over time, investors will lose their money, except those who were able to withdraw their investments before the scheme went bust.

2.Recruiting Is Highly Encouraged

Let’s say your friend, who earned huge returns from a supposed investment company, has also urged you to invest. They tell you that you can enjoy high returns, too! Then, when you browsed through your Facebook feed, you saw that same friend sharing about their newfound wealth and is urging others to invest in the same company as well. It’s time to take a step back and take that as a red flag. 

Investment scams can confidently guarantee high returns at the start because their source of income is through new recruits who pour more money into them. Again, this isn’t sustainable. Once the recruits dry up, the money dries up as well. This system is also known as a Ponzi scheme.

3.Appeal To Emotions

This is a tactic used by ‘investors’ who are pressured to recruit or by the head of investment scams themselves. Scammers are pretty good at this, and they can use your desires and weaknesses to their utmost advantage. 

For example, if you have children, they’ll be saying that the returns will be enough to put your kids through college. They may also tell you that you can pay off your debts or mortgage once you trust the system and invest.

There are many ways for investment scammers to appeal and manipulate you through emotions. Sometimes, it comes in the form of social media posts, webinars, or online meetings. It’s easy to hype up a high lifestyle on Instagram, for example. You may also have entered a webinar where young people talk and flaunt how they went from zero to millions, then show off their mansions, fast cars, private jets, or yachts. 

All of these are simply appealing to your inner desires and emotions. Legitimate investment companies will show you figures, facts, and numbers instead. In other words, dealing with real investments is boring and it’s not hyped and flashy like what social media will make you believe it would be.

4.Details Are Vague

As an investor, it’s normal to ask questions. You’ll be putting your hard-earned money into this company, so it’s expected to have hesitations, clarifications, and questions. Real investment companies and potential investing partners will understand this. Again, they can show you hard facts, statistics, numbers, graphs, taxes, and market analysis to help you decide. These facts and information are also constantly updated and are distributed to investors quarterly or monthly if needed. In other words, legitimate investing companies are transparent.

But if you’re dealing with an investment scam, you’ll only be given vague details. Aside from guaranteeing high returns, nothing else will be explained to you. Other investors may even discourage you from asking hard questions. At most, they’ll just repeat their promises and even appeal to your emotions and desires again. If you prod for updates and details, the answers will be vague, and you may even be referred from one person to another without ever finding out the real deal.

Final Word

A quick way to check if an investment company is legitimate or not is to go to the Securities and Exchange Board and then verify if the company is indeed licensed or registered. If it’s not listed there, then it’s a scam for sure. 

However, some investment scam companies can still produce legitimate documents and proof of registration. But your due diligence shouldn’t stop there. You must still be wary and observant. Most of all, take note of the signs explained above and make sure that none of those are present.

Difference Between Capital Budgeting and Capital Planning

Difference Between Capital Budgeting and Capital Planning-23

In the modern world, most of the day to day decisions of a normal business include basic marketing & operational activities such as how to approach a customer, how to increase market reach, how to take the business online, how the stores shall be arranged, and how many employees are needed for a smooth running of the business, etc. However, such businesses are also required to make other essential decisions such as capital budgeting and planning. These 2 terms, i.e. capital budgeting and capital planning are often used synonymously. However, they are not the same. In the given article, we will try to differentiate between capital budgeting & capital planning.

Capital budgeting is defined as, how businesses choose the best investment alternative to ensure growth and high profitability. It refers to identifying and evaluating large projects that provide cash flows over a period longer than a year. It helps an organization to decide whether or not an organization should fund a specific long term investment. It is the process to evaluate potential major projects or investments. Such methods are often used where a big long term investment is made such as procurement of new machinery, construction of a new plant and acquiring other businesses. Capital budgeting involves the valuation of a company’s lifetime cash inflows and outflows from a project to determine whether the decisions of investing in that project are feasible or not. On the other hand, the process of capital planning tells you where the money for capital projects comes from. It includes preparation of a detailed portfolio by evaluating predicted cash flows, asset values and withdrawal plans. It also provides a roadmap to meet the goals and objectives strategized by the businesses. Capital planning contains several processes that business owners follow while accomplishing various goals. It is the is a comprehensive evaluation of an organization’s current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans.

Capital budgeting, thus, determines what investments an organization makes by evaluating the expected cash inflows, initial outlays and scrap value of the asset after expiry. Whereas, Capital planning deals with the questions of how this selected investment would be funded after evaluating an organization’s overall cash inflow, cash outflow, asset values and withdrawal plans.

8 Best Passive Income Ideas You Can Use in 2020

8 Best Passive Income Ideas You Can Use in 2020

All the successful investors suggest one thing in common i.e. having more than 3 sources of income. Having such extra sources apart from salary and profits from business help you in times of uncertainty such as the current covid-19 situations where millions of people have lost their jobs and businesses faced huge losses. So, here we will talk about various sources of passive income.

What is Passive Income?

Firstly, let’s talk about the concept of passive income. Passive income is an additional source of income. Such sources are generally side-hustles and use the innate talent of an individual. Such side-businesses are built around personal hobbies of an individual such as writing, painting, dancing, photography and videography. Generation of income from such sources is initially very difficult and requires a lot of passion and hard work. In the starting, the cash receipts from such adventures are often very low but in the long run they are seen to provide even better cash flows than the primary income. Apart from the extra income generation there are many other benefits such as freedom, flexibility and recurring income.

Top 8 Sources to Earn Passive Income


This is one of the most popular sources of extra income and is often taken by the individuals who have an interest in creative writing. Here, you have the freedom for writing on any topic ranging from a blog on fitness to blog about music instruments. This requires a good knowledge about the topic you are writing on and a keen desire to share your knowledge with the world. Running advertising and engaging in affiliate marketing are great ways to generate income from your blogs. You can use sites such as Blogger and WordPress for writing blogs.

YouTube Channel

Generating income from creating and uploading videos on YouTube is one of the most popular ways to earn passive income. Here, you just need to create a YouTube channel and upload videos. Once your channel becomes popular you can start earning by applying for an advertising program offered by YouTube.

Consultancy Business

This source includes a large variety of professional services that you may provide to your clients. You can serve as an investment consultant, property consultant, tax consultant or business consultant. Here you require good knowledge and expertise in your area of expertise.


Freelancing is a highly preferred method for generating passive income. Here you just need to use your skills for completing a project assigned to you by your clients. This requires having a skill such as digital marketing, writing, web designing, income tax return filing, etc. Websites such as Fiverr, Upwork provides you a platform to start freelancing and earn a good passive income.

Affiliate Marketing

If you have searched about how to make money online you must have read about affiliate marketing. Here you need to recommend products to people and if they buy the product from the link shared by you, you will receive commission. Famous websites such as Amazon and Flipkart provide a facility for becoming an affiliate marketer.

Teaching Online Course

In this Covid19 struck environment, the demand for online tutoring has increased. Here, you need to have the knowledge about a subject matter or a skill and design an online course. Websites such as Udemy or Thinkific provide a facility for an online course.

Investment in Mutual Funds & Equity for Dividend

The simplest idea to generate passive income is through investment in mutual funds and equity. Such investments generate income in firm of dividends.

Insurance Agency

Another source of generating passive income is through working as a part-time insurance agent. Here you will have to sell insurance policies and you will be paid commission on the premium paid by the customer. You can sell various types of insurance such as medical insurance, life insurance, general insurance etc.

The Indian GDP and Its Future Estimates

Economic Growth during FY20

In the FY20 GDP growth was mere 4.2 per cent dragged down by the 3.1 percent growth in the January-March quarter. The revised the growth issued by the government for the first three quarters of FY20 are 5.2% in Q1, 4.4% in Q2 and 4.1% in Q3. The growth numbers were the lowest in past decade. In the previous financial year 2019 economy had grown at 6.1 per cent. Together with the contraction of exports by 3%, Private Final Consumption Expenditure contracted to 5.3 percent and the Gross Fixed Capital Formation was also contracted by 2.8 per cent highlighting the weakness of the Indian economy.

Effect of lockdown on Industries

Many industries such as tourism, aviation, hospitality as well as MSME sector were directly burdened by the losses during lockdown and the effect of pandemic on their businesses leading to high losses and loss of jobs within such sectors. Many industries, such as construction and automation were already under huge losses, had to completely stop their production. Talking with numbers, the overall growth was considerably slow for almost all industries. The hospitality sector expanded this year by only 2.6 percent. For the year of FY20, the manufacturing sector recorded nil growth. The agriculture sector grew by 5.9 per cent in the fourth quarter.

Future Estimations

The economic growth at 5 percent for the present fiscal year (FY21) has been estimated as 5% along with a contraction of 45 per cent in the Q1.
The Indian Government has announced a INR 200 Lakh crore package which mainly aims at medium & long term growth and short term stimulus is only INR 20 Lakh crore. In addition to this, a INR 21 lakh crore package has been announced to offer credit guarantee to the falling MSME sector, the repo rate has been reduced to 4 per cent.

Shaktikanta Das, The Governor of RBI, has said that economy has been badly affected by the disruption in supply and compression in demand. The RBI has projected a negavtive growth rate for FY21 and expects that the growth impulses to improve in the second half of the fiscal year.