Navigating the financial markets can be difficult in this volatile environment we’ve experienced in recent years, which is why it is more important than ever to have a financial dashboard to ensure you do not drive off a cliff. If investors do not have the time or focus to drive their financial future, then perhaps for the safety of themselves and others, they may consider riding a bus or hiring a chauffeur. For those committed to handling their own finances, the road may become rocky, so here are some important factors to monitor on your financial dashboard:
1) Fundamental Direction: Before you decide on an investment destination, it is important to know whether trends are accelerating (speeding up) or deteriorating (slowing down) – see also Forecasting – Trend Analysis. There is a broadly diversified global menu of investment options and asset classes, and if your hands are on the wheel, you need to determine which roads (investments) are providing the best driving conditions. If your investments are out of control, you may get lost or end up in a ditch.
2) Are You Going the Speed limit? Nobody wants to get a costly speeding ticket, therefore assessing valuation metrics (i.e., risk) on your dashboard is a requirement. If you are speeding along the highway at a 100 miles per hour in an expensive stock (e.g., trading at a 50x+ Price/Earnings multiple), then there is little room for error. When traveling that fast the price of a speeding ticket becomes irrelevant, because hitting a pothole at those speeds (valuation) can be much more costly to your portfolio…irreparable damage.
3) Temperature Outside: There’s a huge difference between driving in the icy-cold snow and 100 degree heat. Each environment provides its own challenges. The same principle applies to the financial markets. On occasion, sentiment can become red hot, forcing heightened caution, whereas during other periods, chilling fear can scare everyone else off the roads, leaving clear sailing ahead. Correctly understanding the emotional temperature of financial markets is paramount.
4) Optimal Tire Pressure: Low pressure or bald tires can lead to treacherous driving conditions. A company with healthy cash flow generation relative to its market capitalization can make your investment ride a lot more stable (see also Cash Flow Register). Remember, dividends and share buybacks are not generated out of thin air – they are a byproduct of healthy and stable cash flows. Earnings on the other hand are an accounting measurement that can easily be manipulated and distorted (see also Accounting Tricks up Corporate Sleeves).
5) Driver Skill Level: People generally believe they are better than average drivers, however statistics tell a different and more truthful story. By definition, half of all drivers must be below average, but overconfidence skews investors’ self-perception. If you are going to put your life’s retirement assets into a specific manager, you might as well select seasoned managers or companies with proven track records. On the other hand, if you are going to do the driving yourself, develop a systematic, disciplined process that can accommodate your shortcomings and also account for risk control.
Many investors drive blindly without relying on a dashboard. In the investment world, visibility is not very clear. Often, weather conditions in the financial markets become rainy, dark, and/or foggy. If you don’t want your portfolio to crash, it makes sense to build a reliable investment dashboard to navigate through the hazardous financial road conditions.
Source- valuewalk
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com
Tuesday, 29 December 2015
Monday, 28 December 2015
Over $1 Billion PE Investment Recorded In India’s Renewable Energy Sector In 2015
Global investors and renewable energy project developers have responded with optimism to the change in regulatory and financial environment in India.
International private equity investors poured in over $1 billion in renewable energy companies in India in 2015. Just the top 5 deals in the renewable energy sector crossed a cumulative volume of $1 billion. The investments poured in as the Indian government announced ambitious capacity addition targets for 2022.
By 2022, India aims to have 100 GW of solar power, 60 GW of wind energy, and 15 GW of other renewable energy capacity. This means that over the next 7 years around 140 GW capacities needs to be added across the country.
The largest investment deal involved GE Energy Financial Services and Welspun Renewables Energy. GE Energy Financial Services acquired an undisclosed equity stake in the company. Welspun Renewables Energy, part of the Welspun Group, is one of the leading private sector renewable energy development companies in India; it operates India’s largest solar power project.
ReNew Power Ventures, another private sector renewable energy project developer, and raised $265 million from various investors. The company roped in a new investor – Abu Dhabi Investment Authority – which poured in $200 million. The balance investment was made by Goldman Sachs and Global Environment Fund. After these investments, the total private equity investment in ReNew Power increased to $655 million.
The Singapore government’s investment arm, GIC, signed an agreement with Greenko Group Plc for the $253 million acquisition of Greenko Mauritius, believed to be the direct owner and developer of several renewable energy and power assets in India. Greenko owns several power plants in India based on wind, hydro, biomass, and natural gas power technologies, with its largest footprint in the wind energy sector. The company operates over 800 MW power capacity, including 5 wind energy projects across multiple states in India.
Another wind energy project developer, Ostro Energy, raised $230 million from Actis Advisors Limited. Ostro Energy is looking to significantly increase its footprint in India’s wind energy market, and the company plans to add 800 MW capacities over the next few years.
Orient Green Power Limited managed to raise $153 million from Forefront Capital Management Limited. The company is looking to retire debt and possibly expand its operational base across various renewable energy technologies.
Source-cleantechnica
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#
“Make in India’ looks at $120-bn investment from 10 companies”
The government is expecting its ‘Make in India’ programme to be a major success, with a report by the Department of Industrial Policy and Promotion (DIPP) revealing that 10 companies have either committed or indicated investments worth $120 billion, mostly over a period of five to 10 years.
Asked how much of the investments committed could actually translate into reality, DIPP Secretary Amitabh Kant said: “We are confident that these committed investments will actually flow in.” Prime Minister Narendra Modi will inaugurate the Make in India Week in Mumbai on February 13. The event will focus on innovation, design and sustainability, and is expected to witness the participation of over a 1,000 companies and delegates from over 60 countries, he added.
According to the list prepared by DIPP, Reliance Industries, under the Digital India campaign launched on July 1, has pledged an investment of $42 billion, which is expected to create 500,000 direct and indirect jobs. However, the timeframe for such investments isn’t revealed in the list. RIL, under the Reliance Jio brand, has also committed to roll out internet protocol-based wireless broadband infrastructure across the country, and is also expected to set up a nationwide distribution network for small vendors to sell and service devices.
Similarly, SBG Cleantech Consortium (SoftBank Corp, together with Bharti Enterprises and Foxconn) will invest about $20 billion over the next 10 years to generate 20 gig watt (GW) of solar power and manufacture solar power equipment in India. The consortium SBG Cleantech Ltd would scout for project land in Andhra Pradesh and Rajasthan. The new company intends to participate in the 2015-16 round of solar power plant tenders under the National Solar Mission (NSM) as well as state-specific solar ventures. Foxconn would help with solar equipment for the projects.
Bharti Enterprises has also committed to invest $16.7 billion in the next five years. The funds will be invested in creating infrastructure in rural and urban areas and setting up an eco-system to enable usage of e-health and e-education facilities. The company also plans to manufacture a range of affordable electronics products in India through collaboration with various manufacturers around the world. Dalian Wanda Group has decided to invest $10 billion over the next five years and has been considering a few sites to develop integrated industrial townships and theme parks. Idea cellular has indicated investments $7 billion by 2020 for network and broadband deployment.
Other notable companies that have either indicated or committed investments are Sterlite Technologies, Adani Group, Foxconn Technology, JSW Steel, Reliance ADAG, IKEA, Airbus, CISCO, Bombardier, Siemens, General Motors and Uber Technologies.
Source-financialexpress
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#
Tuesday, 22 December 2015
India one of the most preferred real estate markets in Asia Pacific, says report
Among Indian cities, Bengaluru emerges as the most preferred real estate investment destination, overtaking Mumbai, New Delhi in previous years
The Indian real estate market has won back favor among foreign investors to become one of the most preferred destinations in the Asia Pacific, according to a report by PricewaterhouseCoopers (PwC) India.
Overseas funds accounted for more than 50% of all investment activity in India in the last one year, compared with just 26% for the whole of 2013, the consultancy firm said in a report titled Emerging Trends in Real Estate Asia Pacific 2016 released on Wednesday.
“Flows of foreign capital to India began increasing dramatically at the end of 2014, with the amount invested growing almost 200% year-on-year by the middle of 2015,” the report said, citing data by Real Capital Analytics that provides information on commercial property.
PwC attributed the growing interest among foreign investors into the Indian real estate market to some of the liberalization measures adopted by the government in the recent past.
For instance, reducing the minimum size of built-up areas in foreign direct investment (FDI)-linked real estate projects to 20,000 sq. m from its earlier requirement of 50,000 sq. m has led to “increasing confidence among institutional investors they can find an exit”, it said.
“From a deal structure perspective, while mezzanine financing continues, a shift in the favor of equity structures has occurred, especially in big-ticket transactions in commercial assets such as business parks and IT parks,” said Abhishek Goenka, partner, PwC India.
Foreign private equity funds are now some of the biggest corporate real estate owners in India, after starting from scratch in 2011-12, the report pointed out.
Among the Indian cities, Bengaluru has emerged as the most preferred real estate investment destination, overtaking Mumbai and New Delhi in the previous years.
The report attributes the surge in Bengaluru’s rankings to its technology industry and the availability of a large pool of skilled labour that is necessary to ramp up venture capital-backed start-ups.
A huge amount of upcoming supply of commercial office inventory in Bengaluru is not perceived to be a cause of concern, as it is expected to be matched by an equally high absorption rate, the report said
Source-livemint.com
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#
'Make in India' has tremendous impact on investments
Government's 'Make in India' campaign aims at transforming the country into a global manufacturing hub and has already made a "tremendous" impact on the investment climate as evidenced by the growth in FDI, Parliament was informed today.
"The Make in India initiative of the government has made a tremendous impact on the investment climate of the country, as shown by significant growth of the overall foreign direct investment (FDI)", Commerce & Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
The flagship program of the Modi government aims at developing the country as a global hub for manufacturing, innovation and design for both domestic and foreign markets.
The initiative was launched in September last year by the Centre to focus on invigorating the country's manufacturing sector.
India received $32.87 billion FDI during October 2014 to September this year
Source-economictimes.indiatimes.com
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#
Tuesday, 15 December 2015
Tips on making India the most investment-friendly country
Job creation has been one of Narendra Modi's key initiatives ever since he took oath as the Prime Minister of India in 2014. During his campaign Modi promised to create 3 million new jobs for India's youth and in July he set the wheels in motion with the launch of the National Career Counseling Portal. Modi, with help from the central banker Raghuram Rajan, is aggressively reshaping India's business economy to help prepare it for potential future growth.
It's exciting to see Modi taking action to create more opportunities for the newest members of the workforce. While his efforts to-date has created good momentum, I have an idea for accelerating that progress. If Modi is wondering where he can find room for the 3 million new jobs he's hoping to create, I have one suggestion: Startups.
Small businesses have created two-thirds of new jobs in the US since the 1970s, according to the US Small Business Administration. India could easily experience such growth with the amount of energy Modi and his administration is putting into Digital India. In fact, Indian startups could employ a majority of the 2 million new youth that join the workforce every month, effectively employing the next generation. The only missing ingredient in this recipe for success? An environment conducive to funding.
Indians startups don't miss out on funding due to a lack of money. There is plenty of venture capital in the global economy to go around. The problem is Indian policy makes it incredibly difficult for startups in India to receive venture money. Plenty of people want to invest in the country's future, but few care enough to deal with ambiguous taxes, the endless paperwork and legal headaches. Understandably.
There are a couple actions the government should take to make way for the money and establish India as the most investment-friendly country in the world. As a start, the government should base its decisions on two principles. First, adopting best practices and policies creates a stable, predictable and transparent environment for investors to place their money. Second, benchmarking against other countries can help reduce transaction costs. Below are specific tactics the government can use to execute on these principles, which will create an environment amenable to investors both local and international.
1) Modify Tax Policies to Make India the #1 Investment Destinations
If one seeks a weather vane for the economy or a gauge that will predict tomorrow's business climate, they need only review the current tax policy. The government's attitude toward investment greatly influences whether the money is staying or leaving. India has an ambiguous tax code that scares investors away. In a recent ABA survey, attorneys said they were more hesitant to work with Indian companies than Chinese, US or U.K. businesses because of the regulatory environment. The best way to make India the No. 1 investment destination is by clarifying rules and taxes. If India really wants to open the spigot on capital they can reduce the capital gains rate to zero for a period of, say, 20 years. At the very least, the government should make the capital gains rate flat and predictable. Firms have already found a path through Mauritius. Why not roll out the red carpet directly?
The effectiveness of a zero-capital-gains-rate policy was proven in the US during the 70s and 80s. Profits from exits were a key driver for Silicon Valley's rise, as investors recycled funds from exits to back more companies. Moreover, India already has a zero capital gains rate for stock market floor transactions. Why not extend it to private markets as well? The income tax money created by new jobs will fill the government's coffers and, ultimately, less than 1 percent of tax revenue comes from capital gains anyhow.
The above modification in the tax policy will barely affect the budget, while offering massive benefits, both PR-wise and GDP growth-wise, for the Indian government. I estimate this change would produce a 1-2 percent increase in the GDP growth rate.
2). Simplify Exits to Increase the Velocity of Capital Flow
In order for the startup ecosystem to function, businesses must be able go through every stage of the lifecycle without hassle. Investors and entrepreneurs must be able to exit through acquisition or IPO if the company succeeds or a swift bankruptcy process if it fails. Making exits easier is key to attracting and maintaining more capital in India.
Every investor dreams of taking a company public. It's the ultimate proof of concept when a business is able to stand on its own. Once a startup reaches IPO, the investor may feel it's time to move on to his or her next venture. Unfortunately India's Companies Act of 2013 puts serious restrictions on investors and entrepreneurs in what would otherwise be an enviable scenario.
Source- economictimes.indiatimes.com
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#
Monday, 14 December 2015
Japan promises Rs 83,000-cr 'Make in India' fund to boost investments
Seeking to step up bilateral cooperation, Japan has set up a 'Make-in-India' fund of 1.5 trillion yen (approximately rs 83,000 crore), while India promised to devise a special package of incentives for attracting investments in 'Japan Industrial Townships'.
Prime Minister Narendra Modi welcomed the 'Japan-India Make-in-India Special Finance Facility' of up to 1.5 trillion yen by Nippon Export and Investment Insurance (NEXI) and Japan Bank for International Cooperation (JBIC), according to a joint statement issued after the meeting between Modi and Japanese Prime Minister Shinzo Abe on Saturday.
This agreement aims at promoting direct investment from Japan to India and to support their business activities with counterparts in India, including development of necessary infrastructure, and to help materialize 'Make-in-India', the statement noted.
It said that Prime Minister Abe expressed his expectation on further enhancement of reform measures including in the financial sector. “The two prime ministers decided to deepen mutual cooperation regarding the Make-in-India policy," the statement notes.
The two sides also reaffirmed the "intention to develop 'Japan Industrial Townships (JITs)', with investment incentive for companies that would not be lower than under the prevailing policy framework such as Special Economic Zone (SEZ), and National Investment and Manufacturing Zone," it added.
"Moreover, both sides will work toward evolving special packages for attracting Japanese investment in the JIT in India," the statement said.
Both countries also welcomed the progress in the flagship projects such as the Western Dedicated Freight Corridor and reaffirmed the determination to expedite the Delhi-Mumbai Industrial Corridor (DMIC) projects.
India and Japan further concurred to take the Chennai-Bengaluru Industrial Corridor (CBIC) project to the next stage of concrete implementation by utilising Official Development Assistance (ODA) loan schemes and other facility measures.
"Indian side expressed a hope to attract $5.5 billion (approximately Rs 36,729 crore) of investment and other support," it said.
Recognizing the important role played by Japan's ODA, the two sides hoped that the total commitment of Japanese ODA yen loan to India in 2015-16 may reach around 400 billion yen (approximately Rs 2,240 crore) , the highest ever provided to India, it said.
Prime Minister Abe expressed Japan's intention to provide ODA loans for the improvement of road network connectivity in North-Eastern states of India, the peripheral ring road surrounding Bengaluru, and the horticulture irrigation in Jharkhand.
Seeking the synergy between India's Act East policy and Japan's Partnership for Quality Infrastructure, the two prime ministers decided to develop and strengthen reliable, sustainable and resilient infrastructures that augment connectivity within India and between India and other countries in the region.
The two sides also pledged to advance industrial networks and regional value chains with open, fair and transparent business environment in the region, the joint statement said. India and Japan stressed the need for further actions for investing in the future.
Prime Minister Abe also expressed his intention to support India's efforts by sharing its advanced skills and technologies and through active mobilisation of Japanese public and private sector involvement, including Official Development Assistance (ODA).
"The two prime ministers welcomed the steady progress to realise 3.5 trillion yen (approximately Rs 1.96 trillion) of public and private financing to India in five years under the 'Japan-India Investment Promotion Partnership' announced during the last annual summit meeting," it added.
Modi briefed the Japanese Prime Minister on his agenda of reforms to make India the investment destination with the most business-friendly environment. "Prime Minister Modi reaffirmed his determination to improve the business environment in India," it said.
The two sides expressed hope that investment-related assistance, guidance and support extended by Japan Plus will become even more effective and efficient through enhancing coordination with stakeholders.
Both the sides also stressed on the importance of expansion in the two-way investment, it said, adding Japan "expressed the intention of establishing a new mechanism, 'Japan-India IoT Investment Initiative' to promote investment in Internet of Things (IoT) related area".
The two sides have recognised the importance of close collaboration in the energy sector through measures such as use of environmentally friendly coal-fired power generation technology, and Clean Coal Technology.
The two sides also shared their intention to raise the level of their ambition through the establishment of joint research laboratories; enhanced exchanges between young scientists and those under 'Japan-Asia Youth Exchange Program in Science'; the establishment of joint research centers in India in the field of Information and Communications Technology (ICT).
Further, it added that both the countries will further advance their cooperation by providing Indian trainees with opportunities to acquire industrial skills in Japan including under the Technical Intern Training Program.
Source- asianage.com
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#
Subscribe to:
Posts (Atom)