Investment Variable and MEC(1)

7/29/2019 Investment Variable and MEC(1)

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Aparajita

GuRahu


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Changes in interest rates sheffect on the level of planneundertaken by private sectothe economy. Investments iinversely proportional to the

The relationship between threpresented by the marginacapital investment (MEC) curate of interest from R1 to Rexpansion of planned inves

INVESTMENT, INTEREST RATES AND MEC


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How will the rate cut affect you as an investor and a borrower? Wout to experts to analyse how lower interest rates will impact yoinvestments .

Long-term debt funds: If interest rates fall, these funds will witnpronounced capital appreciation.

Tax-free bonds: Tax-free bonds do not offer any tax deduction investors, but the interest is tax free , which makes them very atthose in the higher tax slabs of 20-30 %.

Gilt funds: gilt funds are likely to offer the best rewards. These sinvest in government securities (or gilts).

SRC

Bure


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A SUNK COST is an investment in an asset with no alternatno opportunity cost, also referred to as specific asset.

Many investors dont consider a poorly performing investmfailure until they sell the stock and realize the loss, and as investors are much more likely to sell winning stocks than losing stocks.

Investors fall victim to the sunk cost fallacy when they allowpurchase price of a stock to dictate when the stock is sold.tendency of investors to sell winning stocks too early and hlosing stocks too long has been well documented.


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$1.2 billion is planned to be invested in other discoveries in thhe said.

The company will invest $747 million in augmenting productioD1&D3 and MA fields by putting up booster compressor and rat the closed wells.

Besides $6.451 billion, another $6.151 billion is expected to boperating expenses, he said.

These investments were besides the $7.572 billion the compaalready sunk in development of D1&D3 and MA fields, $1.261 operating expenses and $1.094 billion in exploring for oil andblock.

SRC:- RIL,ET- Ju


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"There are many problems in the economy and in the mark

certainly," Mr. Kelly said.

Short-term losses could easily be on the way, and they coupainful. "But the answer for a long-term investor isn't to avhe said.

"It is to be extremely diversified and to invest in equitieslikely to do much better that way than if you stay out of th

SRC:- New York TSunday, 1 Sep 20


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Keynes saw investment as the desire to create, which is motivaoptimism or what Keynes called the "animal spirits" of the

entrepreneur.

In Keynesian terms, optimism about companies meant that "anspirits" were strong and investment was high. This raised the leoutput and caused a powerful economic expansion.

Investment expenditure in an economy can be of :

1) Business Investment.

2) Residential Investment.

3) Government Investment.

The Determinants of Investment


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According to the study, while 92 per cent of working wome

be involved in the investment decision-making process, 70of these women are actually joint decision makers and a mthese (52 per cent) are only informed about the investmenwhich have already been made.

When it comes to trusting various financial institutions, it w

observed that women trust nationalised banks (88 per centtwice as much as they trust private banks (43 per cent) andbanks (24 per cent), it added.

SRC:- PTI Jul 7

2013


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The government plans to take some "hard decisions" to tri

expenditure and curb the import of inessential items to destressed economic situation, although there will be no hasin petrol and diesel prices.

"When you are facing a gloomy situation, wasteful expendibe curbed... you call it cut in non-plan expenditure...while

continue to spend and continue to find money for productinvestment," he said.

SRC:- PTI |


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Investment Variable and MEC(1)

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