PlusCash

Thanks LinkedIn News India for featuring our CEO Pranav Koomar on insurance as sector. https://lnkd.in/g2YYwBNK

Active Communication During Crisis Creates Magic Most of our clients at PlusCash continued buying mutual funds even at their lowest levels, thanks to active communication. While the decision to invest was ultimately theirs, we consistently provided them with real-time data on fund performance and valuations, helping them stay informed and confident. This is where DIY (Do-It-Yourself) platforms often fall short, and tech-enabled, human-connected value propositions shine. Effective communication during a crisis isn’t just about short-term reassurance; it’s what drives long-term success.

Why are foreign insurers leaving India despite easier rules? India's insurance market, one of the fastest growing in the world, has seen several foreign insurers exit despite regulatory changes allowing greater ownership flexibility. The latest example? Allianz Group, which ended its long standing JV with Bajaj Finserv due to disputes over stake increases and management control. But Allianz isn’t alone over the past decade, New York Life Insurance Company, ING, AIG, and Old Mutual have also left India. This raises a critical question: Why are global insurers struggling to sustain operations in India, even after FDI norms have been relaxed? Even with relaxed FDI norms, foreign insurers struggle in India. Scaling without strong local partners is tough, as seen in Allianz’s exit from Bajaj Finserv over control disputes. Complex regulations, long breakeven periods, and JV conflicts make operations difficult. India’s price sensitive market limits profitability, while domestic insurers are growing stronger with digital innovations. These challenges continue to push global players out. While some, like Zurich Insurance, are expanding in India and acquired 70% in Zurich Kotak General Insurance, the mixed responses indicate that simply easing FDI norms isn’t enough. Foreign players must rethink their partnership models, distribution strategies, and long term commitments to thrive in this complex but high potential market. What are your thoughts? Are global insurers missing an opportunity, or is the Indian market genuinely too tough to crack? PlusCash I Finark #Insurance #India #ForeignInvestment #FDI #Regulations #InsuranceMarket

India in a Shifting Global Order: Lessons from Trump's Trade Wars The world economy is once again at a crossroads. The recent interview with Harvard economist Jeffrey Frankel highlights how Donald Trump's economic policies—especially his trade wars—could impact global prosperity. But what does this mean for India? 1️⃣ The Rise of Protectionism & India’s Trade Strategy Trump’s policies reflect a broader shift toward protectionism, where countries prioritize domestic industries over global integration. India, too, has been recalibrating its stance—exiting RCEP, focusing on self-reliance (Aatmanirbhar Bharat), and revising trade agreements. While strategic protectionism can boost domestic industries, India must balance this with global trade participation to ensure long-term growth. 2️⃣ Recession Fears & Indian Markets The interview suggests that the chances of a US recession are now three times higher than usual. Historically, US recessions trigger global slowdowns, impacting India's exports, FDI inflows, and stock markets. Should India decouple or prepare for potential shocks? Active asset allocation, as we at PlusCash emphasize, becomes crucial in such uncertain times. 3️⃣ De-Dollarization & India’s Role Trump's trade tactics have also fueled discussions around de-dollarization. BRICS nations, including India, are exploring trade in local currencies to reduce reliance on the US dollar. This could strengthen India's economic sovereignty, but are we ready for such a transition? The INR’s stability and trade agreements will play a key role. 4️⃣ Globalization vs. Localization: India’s Middle Path The interview underscores how post-WWII global institutions promoted trade and stability. While the US now questions this order, India has been advocating for a "reformed multilateralism." Can India emerge as a leader in shaping the next phase of globalization—one that balances global trade with national interests? Final Thought: India Must Stay Agile As the global economic landscape shifts, India must remain flexible—leveraging its growing consumer base, strong domestic economy, and digital finance leadership. Investors and policymakers alike need to navigate these changes with data-driven strategies and diversified portfolios. What are your thoughts? Should India lean more towards self-reliance or deepen global ties in this evolving world order? #GlobalEconomy #IndiaGrowth #TradeWars #WealthTech #RecessionRisk

Tariff creates unemployment. Yes, you heard it right. Importing a Tesla base model with the current tariff costs around ₹45-50 lakh. Tata Motors and Mahindra Group sell their cars for ₹25-30 lakh. With the proposed tariff cut, Tesla could cost ₹25 lakh, which would lead to a drop in sales for domestic companies. This would result in poor quarterly performance and potential job losses. On the other hand, if Tesla agrees to manufacture or assemble cars in India while also sourcing parts from Indian auto ancillary companies, it could generate employment and support the growth of small auto parts manufacturers. Takeaway: Efficiency, innovation, and scale will be the key factors—this is where China currently has the advantage. However, India is expected to catch up in the coming years. Economic measures, after all, shouldn’t be weaponized. PlusCash | Finark

Markets, Mars, and a Maverick Fed: A Tale of Uncertainty Nine months in space. A long time to wait, but patience paid off, the stranded astronauts are finally back on Earth. A reminder that resilience and calculated risk-taking can bring you home safely. Meanwhile, down here, geopolitics is moving at warp speed. Trump and Putin’s marathon 2.5-hour call yielded a 30-day ceasefire on energy infrastructure in Ukraine, but the bigger questions remain unanswered. Israel’s fresh military action in Gaza and US airstrikes in Yemen add fuel to the global uncertainty fire. And what do global fund managers fear the most? 1. A trade war triggering a global recession. 2. Inflation forcing the Fed’s hand. 3. DOGE: yes, Dogecoin sparking a US recession (because, well, markets are never boring). All eyes now shift to the Fed and the Bank of Japan. While the markets hope for rate cuts, the Fed’s reality check might disappoint. If they signal just one cut versus the market's dream of three, expect turbulence. Yet, amidst the chaos, Indian markets stand tall, reasonable valuations, fiscal momentum, and strong FPI inflows have added a Rs 7 trillion boost to investor wealth. A strong start today is likely, but will it hold? Takeaway: Much like our astronauts, patience and strategy will decide who lands safely and who drifts.

The way your money behaves determines how well you can fulfill your desires. If you're one-third in cash, you're likely producing one-third less. Yesterday, most good funds delivered returns between 2-3%, while PPFAS Mutual Fund ( Flexi Cap Fund ) grew just 0.80%, that’s about 66% less than the average. When the market is bearish, you say you've outsmarted it. But isn’t that just human behavior? It makes for a good story, sure. The problem? A good story doesn’t always lead to great returns because in the capital markets, context changes every day. For me, time in the market matters far more than timing the market. Disclaimer: I am 100% invested in equity. What’s your story? Are you getting influenced? PlusCash | Alice | Finark

Home loan interest rates are now around 9.5% If you take a ₹2 crore home loan for 20 years at 9.5% interest, your total EMI payments over the loan tenure will be around ₹4.50 crore. That means you pay ₹2.50 crore in interest alone, which is 125% of the original loan amount! In other words, you're paying for your house more than twice over just because of interest. This highlights decision making to buy the house early in life with more loan vs buying later by making more upfront payment. Do you know your maths or making random decisions with external influence? PlusCash | Finark

This is not the net worth approach we use at PlusCash, which calculates net worth as the difference between assets (all the investments you own) and liabilities (all the loans you owe). This is about global trade—how much a country earns or saves versus how much it pays to other countries when importing goods. India imports approximately INR 8 lakh crore (USD 100 billion) worth of oil. If oil prices drop to $50 per barrel, the national oil expenditure could be cut in half. With the push for electric vehicles, this spending may decline even further. This potential savings of INR 5 lakh crore raises an important question: where will the government and the urban middle class, who currently spend significantly on fuel, redirect this freed-up liquidity? With both oil costs and income tax burdens easing, new consumption patterns will emerge. Where will you be spending or investing the savings generated by lower income tax and reduced oil expenses?

How is the same founder behaviour signals two outcomes? Here is what happens when the founder's buyback their own company shares: The reason could be founder is more convinced about the company’s growth and wants to increase their ownership. I remember around the pandemic, Zerodha’s founder Nithin Kamath bought a lot of employee shares at a $1 billion valuation, knowing it would multiply in value. By my estimate, they are now a $6 to $8 billion company in just a few years, a 6x return. But when a privately held company with no free cash flow does a founder-led buyback, it signals that a follow-on round is becoming difficult. This is my wild guess for Zepto. Today’s news about their founder-led buyback signals debt financing as a bridge round, likely because mutual funds haven’t invested into them. (Look at my last post.) Now, let’s discuss another scenario. When a publicly listed company pledges shares and raises debt, most of the time, if they don’t have cash flow, they default on the bank. That’s what’s happening with BluSmart The promoters own a public company Gensol Engineering Limited where 85% of shares were pledged, share price slashed from 1100 to 200 and they defaulted to the bank. This is now affecting both of their companies. Takeaway: Stay small until you figure out product-market fit. Can you stay small until you figure out the business model? Try to create an equilibrium between cash flow and scale. Well, Simon Sink from Stanford University says the same.