Top mutual funds to invest in 2018

Investing in stock markets is a tricky business and not everyone has the time, inclination or most often the knowledge to invest freely in stock markets. For those of us who feel so there exists the beauty of the mutual fund. So, what exactly is a mutual fund? A mutual is a trust which collects money from a number of investors who have a common goal for their investments. Once they have collected these funds they then proceed to invest it on behalf of the investors through a professional set up which will be backed up by trained professionals to process the information being put up. So, in this way it becomes beneficial to the investor who wants to put his money in an investment vehicle but lacks the time or inclination to do the research but these days the number of mutual funds available to you are many. There are mutual funds for every goal and time period. So, in such a scenario where do you put your money? We have come up with a list to help you with this decision. Following are few of the top performing mutual funds in no particular order.

  • Motilal Oswal Long Term Equity Fund

The fund’s objective is to predominantly invest in equity and equity related securities at which they have been quite successful over the past few years considering their three-year rate of return is at 13.60%. This scheme has been primarily made for investors seeking potential growth of equities with the added advantage of tax savings.

  • Invesco India Tax Plan

Another solid fund with a very similar set up like the previous fund. This fund has outperformed the market constantly for the past 10 years. This is encouraging enough for you to invest your hard-earned savings with them.

  • Aditya Birla Sun Life Tax relief 96

An open-ended fund with a minimum buy in of ₹500. The only drawback which is possible with this fund is that there is a 3-year lock in period. One you could ignore if your aim is long term growth combined with tax benefits. With a 3-year return over 12% it is a fund which definitely deserves your attention.

  • IDFC Tax Advantage Fund

Another stellar performer which will rival the performance of the funds before this but keep in mind this list is all about the best in the market.  The projected return over a period of five years is close to 24%. This is fund to definitely consider if you looking for something long term.

Importance Of Portfolio Management

Imagine a situation where the technology sector is booming in a record manner. You feel sceptical in the first month, start to have a lot more hope in the second month and by the third month, you feel bad that you aren’t riding the boom. So in the fourth month, you decide to take the plunge and make some significant investments in the sector. Next month, you are richer by quite a margin and feel extremely happy with your decision. As a result, you then go ahead and make additional investments in the sector. By the twelfth month, you are neck deep in the one industry, but see no harm in doing so, as you also have sky high profit margins. On the thirteenth month, however, it turns out that the meteoric rise of the industry was based on a bubble, and in a span of days, almost the entire worth of your investment is wiped out.  This is an unfortunate but realistic story.

This is where the importance of portfolio management comes in.  So, what exactly is a portfolio in the first place? A portfolio is basically a collection of investment tools like stocks, mutual funds, commodities and such.  Simply put, it is a comprehensive record of what you have done with your investments and what your current investments are. The importance of maintaining and managing a portfolio therefore lies in planning for the future. What is portfolio management then? It is basically the process of choosing the right investment policy to make sure that you maximise profit while at the same time minimising the chance of any possible risk.

To elucidate, let’s boil down the most important reasons to manage your portfolio.

  • Better investment planning

A better look at your past investment strategies can give you a slightly better indication regarding your future investments. Not only this, but you can also plan more holistically while taking into consideration your age, propensity for risk, budget and your income. Once you consider all of these factors before making an investment decision your chances of loss significantly go down.

  • Minimises the risk

This is just a reiterating a point but a very necessary one. Portfolio management reduces the risks of your investment strategy to an extent which should not be ignored.

  • Customisable investment solutions.

Portfolio management gives you the opportunity to plan and account for specific goals you may have in mind and customise your strategies and expected returns and risks to your benefits.

  • Tax planning

Taxes are usually a drain on your income and most people do everything they can to avoid any excess tax paid. A sound plan and well managed portfolio can thus go a long way for that.

So don’t just sit idle!!

Go ahead, give your portfolio some time and build a wealthy one.

Orientation Day 2018

International College of Financial Planning, New Delhi welcomed its 18th batch of MBA (Financial Analysis) and MBA (Financial Planning) on August 29, 2018. The orientation day started with offering prayer to Maa Saraswati and lamp lighting ceremony. The dignitaries present were Shri. K K Bajaj, Founder Chairman, Bajaj Capital, Ms. Vani Bajaj, Chief Mentor, ICoFP, Mr. Rajeev Bajaj, Chairman –cum- Managing Director, Bajaj Capital and Mr. Anil Chopra, Group Director, Bajaj Capital.

The Chief Guest for the event was Prof. (Dr.) Shankar Goenka, Managing Director, WoW factors. He delivered an inspirational talk advising students to be ready for the challenges of life. Another Chief Guest for the event was Mr. Munish Sabharwal, VP & Zonal Manager – North, SBI Mutual Fund. He highlighted the skill-sets that students should develop in the next two years in order to be corporate ready. Another speaker was Ms. Shivani Tandon, AVP, ICICI Securities, who guided students on various career opportunities available in the BFSI Sector for the fresh management graduates.

It was wonderful to also have Ms. Sandhya Sehgal, a proud Alum of Batch 2008 of ICoFP share her career journey with students and how she rose to a senior leadership role at her current organisation – Ameriprise Financials.

The MBA Orientation ended on a good note with Q&A session between students and the guest speakers.

The MBA Orientation programme laid the foundation for the MBA students who have enrolled in the super-specialised finance course and will definitely enlighten the path to be followed throughout their personal and professional life.

Rishi Taparia

Head – Placement & Corporate Relations

CRUDE OIL & ITS IMPACTS

Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. A type of fossil fuel, crude oil can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals.

IMPACT OF CRUDE OIL

  • IMPORT BILL: INDIA’S crude oil import bill is likely to jump by about 2 billion dollars in 2018-19 as rupee is continuously depreciating. INDIA which import more than 80% of its oil needs, spent 87.7 billion dollar, on importing 220.43 MT of crude oil in 2017-18. For 2018-19 it will increase to 227 MT.
  •  INFLATION CONCERNS: The Reserve Bank of India (RBI) increased its key repo rate by 25 basis points to a two-year high of 6.50 per cent, in a move that is seen as an attempt to keep inflation under check. The August move came after the Consumer Price index based inflation rate rose to a five-month high of 5 per cent in June, overshooting the Reserve Bank of India’s (RBI’s) projection of 4.8-4.9 per cent .
  • CORPORATE PROFIT MARGIN: There are several industries and companies which use crude oil and its by-products as raw material for their final products. Companies dealing in tyres, plastics, chemicals, fertilizers, wax industries, refining, airline, paints, footwear, lubricants, cement, logistics and construction materials for whom crude or its derivatives are major inputs/costs will take a hit on their margins in case of high oil prices.

WHY BRENT OVER CRUDE??

The reason is that, the price between the two is a short-term phenomenon. In any case, loading, inland movement and a longer ocean voyage involved in buying American crude oil narrows down the price difference to a point where it is not worthwhile.

CRUDE OIL VS CURRENCY

There is an inverse relationship between crude oil prices and INR .With the strengthening of crude oil prices, INR falls. The rupee slumped to an all-time low of 70.81 against the dollar, for a total of 10.97-percent depreciation since the beginning of this year. Rising oil prices and the weakening currency have already created a perfect storm for India, where oil demand growth has been surging, but the higher oil prices are increasing the country’s spending on crude oil imports, which account for 80 percent of Indian oil consumption.

“Higher oil prices and interest rates will put pressure on the government’s budget and the current account.

Ankit Jain, 

MBA-FA(2018-20)

Why should you start saving at an early age?

 

It’s never too early to start teaching your kids the importance of saving money.

While we’re bombarded with temptations to spend, saving money needs to be an important part of our financial education.

Learning to save helps set goals, and shows how earning interest helps money grow over time.

For younger kids, money could be kept at home in separate containers and parents could help them count the money and show them how much they need to save to buy something they want.

For teenagers, opening an interest-earning savings account is a great way to show how their money is protected in a financial institution and how compound interest helps money grow over time. And with online or mobile banking, they’ll be able to learn to monitor their savings and spending.

The goal of saving is to teach your children about how to avoid debt and to set aside money for when they need it the most.

Saving money is one of the most important aspects of building wealth and having a secure financial foundation.  Yet many of us have learned the importance of saving money through trial and error, and more importantly, experience.

In school, we aren’t really taught about the importance of saving and many of us find that as adults, we have to fend for ourselves.

But there are ways to empower the next generation, and that starts by teaching children the importance of saving from a young age.  If you are a parent, here are 6 ways to teach your children about saving money.

Start with a piggy bank

A piggy bank can be a great way to teach your kids the importance of saving while giving them an easy way to do it.  Tell your kids that the goal is to fill up the piggy bank with dollars and coins, until there is no room.  Illustrate that the piggy bank is for saving money for the future and that the more they save, the more their money will grow.  Here is how smart parents used a piggy bank to explain about savings to their kids.

Open up a bank account

Once the piggy bank is full, take your child to the bank to open up a savings account for them.  Have them count how much money is going to be deposited so they can have a physical understanding of how much money they have.  Show them the final number and reinforce the idea of interest.

It can provide a great source of motivation for your kids if they understand that their money will grow over time as long as they don’t touch it.

Use savings jars

When your kids really want the latest and greatest toy or a new action figure, let them know they will have to save up for it.  Give them a jar for each of their desired purchases and offer them a small allowance each week in a denomination that encourages savings.

For example, if you give your child Rs.100 a week, give it to them in Rs.10 notes.  They can save all their cash for one purchase, or they can contribute to different “jars” for various savings goals.

To encourage saving up for their short-term goals, put a picture of their desired toy or item on the jar, so they have a visual reminder of what they are working towards.

Create a timeline

As a kid, the concepts of money and time can be hard to grasp. Research has shown that the impact of a one-hour financial lesson wears off after about five months. In order to make the message stick, money education should be timely and ongoing.  If you know your child receives Rs.5000 for their birthday each year, the moment to talk about budgeting is right before receiving that amount.

One way to keep money lessons ongoing is to create a timeline so that your child can visualize when they will reach their goal.

Let’s say you give them a hundred rupees a week and they want to save up one thousand.  If they saved one hundred Percent of their allowance, they’d reach their goal in ten weeks, or roughly three months.

Start by getting a long piece of paper and a marker.  Have Rs.0 on one side and Rs.1000 (or whatever goal amount) on the other side.  Create checkpoints on the paper for when they reach 25%, 50% and 75% of their goal.

Every time an amount is saved, draw a line illustrating how much was saved.  Let your kids know that they will get small rewards at each checkpoint. Small rewards can encourage kids to keep going.  Visuals are also helpful in illustrating their savings goals and how their money is growing.

Lead by example

Children learn by example, so the best way to teach your child about saving money is to save money yourself.  Have your own jar of money that you put funds in regularly.  When you’re out for shopping, show your children how to discern between various prices and explain why buying one item makes better sense than another.

Reiterate the message that every time you get paid, you save a portion of your money to help prepare for the future.

Start a conversation

One of the most important things you can do is to start a conversation about money and the importance of saving. Money doesn’t have to be scary or a taboo.  Use financial discussions as teachable moments. An innocent question such as “Are we rich?” can be answered in a way that emphasizes family values, such as hard work and responsible spending.

Let your children know they can have an allowance, but it’s up to them to save up for things they really want.  In addition, illustrate how much their money can grow over time if they save.

Also, discuss the difference between needs and wants and tell your children you are always open to talking about money and new ways to save.  Ask them about what they want to save up for.  Ask them what they want their future to look like.

Asking good questions can get them to think long-term and have a positive relationship with money.  Letting them know you’re always open for having a conversation about money can encourage them to ask questions of their own to keep learning. Personal Financial Literacy can provide you with learning benchmarks based on your child’s age.

Teaching kids how to save money may seem like a tough task.  It has even been said that parents are more likely to talk to their children about sex than about money.  But using these tips, you can make your child’s understanding of money fun and accessible.  It’s an investment in knowledge which truly pays the best interest.

Shashank Kumar
Senior Faculty
ICoFP, Mumbai

Increase in Emerging Market Risk Following Turkish Lira, Chinese Yuan Deterioration

The trade wars have been progressively escalating between the US and China for the past five months. Yet, the implication that trade war represents to the rest of the world economy has been toned down by the global investors. The weakening of the Turkish Lira after the implementation of US tariffs spread to the euro on August 10th, is worrying market participants globally. The exposure of European banks to the Turkish economy surfaced the concern of contagion. In total, Europe is owed $194 billion from Turkey. And, while action from Turkish regulators and an investment assurance from Qatar have offered some hope of stability, the damage to investor satisfaction may already be done.

The Battle of Higher Returns and Higher Risk

Emerging markets, in part due to their higher interest rates, offer investors the prospect of high returns should they be willing to accept elevated risks. The opportunity for higher growth is quite an attractive prospect for many investors as well as banks, especially considering the stable economic conditions the world has experienced in recent years. The economic climate encouraged many European banks to confidently increase their exposure to emerging markets like Turkey and China.

Contrary to the ‘developing’ world, many of the developed economies still maintain record low interest rates, attempting to maintain their current levels of economic growth. However, with a benchmark like the US moving to normalize its benchmark rates and other major leaders on the verge of following suit, emerging markets may steadily lose attractiveness as rate disparity decrease while the skew in risk grows.

Emerging Markets Suffer Losses despite the Promise of High Return

With a few minor exceptions, emerging market currencies have been pummelled during the last twelve months, with the most recent Lira developments aggravating losses. The South African Rand for example has seen considerable weakness on the back of the Turkish currency’s drop, most likely due to the country’s similar size and profile, since the two countries do not have significant exposure to each other.

The longer time-frame also showcases when the Ruble’s losses started to accumulate. Due to tariffs and sanctions, the Russian Ruble felt serious pressure in the past 3 to 6 month range – though it has not seen the same scale of loss as Lira or arguably the Rand. The resilience of the Ruble is likely due to its large volume of energy exports, consistently providing the nation with a steady stream of income despite geopolitical concerns.

Yet the Ruble may fall under further pressure in the coming weeks after US Deputy Secretary of the Treasury Sigal Mandelker said the US “will not hesitate to bring economic pain to Russia if its conduct does not change.” Should the US impose further restrictions on Russia, the Ruble would undoubtedly feel significant pressure, adding to the broader turmoil in emerging markets.

The Chinese Yuan has similar slid in the past weeks as the United States presses on with import taxes targeting specifically China. Yet, like many emerging markets in Asia, the Yuan has suffered less than other geographical regions in just this past week due in part to markedly fewer contagion fears.

Developed markets have also lost ground to the dollar during this time. The Japanese Yen and Swiss Franc have performed admirably, due to their stability and relative safe-haven status. The two havens received a boost after the recent emerging market contagion fears, offering a rebound from some of their losses earlier in the year.

If volatility persists or global capital markets outright decline, the stability factor will matter far more than a modest yield advantage. In that scenario, the Dollar may very well rise, but emerging markets would almost certainly face further capital outflows as investors look to protect their funds.

Sanchita Bhatia

PGD-FA(2018-19)

MUTUAL FUNDS GROWTH

Earning is the key motivator for the people to work, some part of it gets spend and the rest goes into savings. But savings in bank deposits and FD gets eroded due to rise in inflation. Keeping ideal cash is not a good idea as such because one compromises on the opportunity cost of investing that money and growing it.

India now has inflation of 5% that means the purchasing power of the money at disposal will get down. So what is the best option to get the return but bearing some risk is investing in equities?

Month SIP Contribution ₹ core
  FY 2018-19 FY 2017-18 FY 2016-17
Total during FY 29,102 67,190 43,921
March 7,119 4,335
February 6,425 4,050
January 6,644 4,095
December 6,222 3,973
November 5,893 3,884
October 5,621 3,434
September 5,516 3,698
August 5,206 3,497
July  7,554 4,947 3,334
Jun 7,554 4,744 3,310
May 7,304 4,584 3,189
April 6,690 4,269 3,122

It somehow becomes when it comes to mutual funds industry. Source: AMFI INDIA

KEY DRIVERS FOR GROWTH:

  • Mutual fund sahi hai: The industry had launched, in March 2017, the investor awareness campaign aimed at creating awareness and breaking the myths around mutual funds. The campaign got a very positive response as mutual fund companies saw an overall addition of 32 lakh new investors over the last one year. The industry also witnessed AUM growth of 25% (Rs.4.25 lakh crore) and 38% (Rs.3.25 lakh crore) growth in retail AUM as on February 2018 compared to March 2017. The total number of folios and SIP accounts in the same period saw a growth of 26% (1.05 crore) and 52% (70 lakhs), respectively. Monthly SIP contribution for the industry touched Rs.6,425 crore from Rs. 2.05 crore SIP accounts.
  • Demonetization has been a big growth driver for the Indian mutual fund industry as investors rushed to deposit cash in their bank accounts, banks were flooded with funds. With few avenues to lend and liquidity high, banks reduced their rate on fixed deposits. At the same time, returns on other assets such as real estate and gold are not good options to invest in owing to high restriction imposed on them.

WHY MUTUAL FUND?

REAL ESTATE: investing in real estate comes up with huge investments offers less liquidity and not regulated.

GOLD: the investment in gold is high with less diversification .currency fluctuation will lead to high risk.

BANK DEPOSITS: the return on bank deposit becomes negligible after accounting for inflation. Banks only offers 3% to 4% returns.

CORPORATE BONDS: subject to tax implications while mutual funds are tax exempt and less costly.

Assets under Management (AUM) as on July 31, 2018, stood at ₹23.06 lakh crore.

The AUM of the Indian MF Industry has grown from ₹ 5.41 trillion as on 31st July 2008 to ₹23.06 trillion as on 31st July, 2018, more than a fourfold increase in a span of 10 years!!

The MF Industry’s AUM has grown from ₹7.61 trillion as on 31st July, 2013 to ₹23.06 trillion as on 31st July, 2018, more than a threefold increase in a span of 5 years!!

The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for the first time in May 2014 and in a short span of about three years, the AUM size had increased more than two folds and crossed ₹ 20 trillion (₹20 Lakh Crore) for the first time in August 2017. The Industry AUM stood at ₹23.06 Trillion (₹ 23.06 Lakh Crore) as on 31st July, 2018.

The total number of accounts (or folios as per mutual fund parlance) as on July 31, 2018, stood at 7.55 crore (75.5 million), while the number of folios under Equity, ELSS and Balanced schemes, wherein the maximum investment is from retail segment stood at 6.31 crore (63.1 million). This is 50th consecutive month witnessing a rise in the no. of folios (Source: AMFI INDIA).

Manjit Kaur

MBA-FA (2018-20)

Importance of Financial Planning

Consider two situations. It is 2008 and the global markets have taken a hit. India is left reeling too. The company Mr X works for has to implement cost cutting measures immediately and decides to lay off personnel. Mr X is one of the unfortunate and loses his job. He goes back home to his wife and son who is just about to finish school and head to college. The next day he decides to check his finances and discovers that he can keep the house running only for the next two months and if he delves into his savings, then perhaps an additional three months. At the same, his son who is finishing school soon will be heading to college and there are no provisions for that. Mr X frantically starts looking for a job and after a couple of months of stress he settles on a job which pays lesser than his previous job and has longer hours. But because of necessity there is nothing he can do.

In the second scenario Mr Y is laid off at the same time and goes home to his wife and daughter of a similar age as the previous case. He is not perturbed in the slightest when he goes to sleep that night as he has a separate fund which will cater for his daughter’s higher education along with enough savings to run his household for the next year. He proceeds to take the time off as an opportunity to polish his resume with additional courses and a year later he gets a job with a profile which is better than the one before.

Now think about it, which one of the cases would you prefer because both individuals assumed that their job was safe and were not expecting this to happen? The future cannot be predicted but no matter what the situation, we can be prepared financially. This alone should be a pretty compelling reason to start planning your finances, but if you think this scenario is dire, and the possibility of it happening are quite less, remember there are other reasons why you should plan and invest according to the plan.

  • Inflation

This is the biggest killer of both your purchasing power and your savings. Saving money in your bank account is rarely enough as inflation is a silent killer of it. So steady planning is important to keep yourself ahead of the curve.

  • Long term goals

Retirement is not the only long term goal you will be having. It could be a new car or the down payment on a house or as we saw in the case above the higher education of your children. You need to plan in a manner which allows you to face those circumstances with a clear mind

  • Emergency

An emergency is something which can arrive at any time without any warning. So ideally you will want to make sure that you have enough of a buffer no matter what the situation and that does not come without some serious financial planning.

  • Retirement

Lastly, the granddaddy of them all! If you’re not a government employee then chances are that you are not eligible for a pension. Due to that it is very important to plan for your future when the chances of you getting a steady pay-check are negligible

We hope this makes you rethink your financial position and strengthen it so that you are ready for anything. So, go ahead and plan your finances the way you need it.

 

Investment in Fixed Deposit

Fixed deposit, a term which our seniors have tried their hardest to acquaint you with! But in the era of supercomputing and complicated financial instruments, which make it seem like fantastic riches are almost within grasp, and there is no actual way to lose money, there still exists the good old fixed deposit with its humble rate of interest. So, why should we look at something old fashioned and apparently not as profitable as others? Reliability is one major factor. Fixed deposits do not behave in the same unreliable manner in which other instruments work. They are more or less secure and this makes them a very reliable choice. Another major reason is that of an assured pay-out. In a fixed deposit you know the interest rates and the expected outcome right when you make the investment. This gives you a peace of mind which is very rare in the financial business.

So, what exactly is a fixed deposit in the first place? It is a kind of financial instrument in which you can invest your funds for a set tenure which will then provide you with a rate of interest in return. The benefit is that it is as simple as opening a savings account and equally risk free but with a higher rate of interest. Now, there are two types of fixed deposits available to the investor.

  1. Traditional / Non-cumulative plans

These are the traditional plans you know about. In this case, the principal gets invested for a specific duration and the frequency of the interest pay-out is one which is determined by you.

2. Reinvestment / Cumulative plans

As the title suggests the interest in this plan is added to the principal and compounded; the sum total of which is handed out during maturity.

Now what are the things you should keep in mind before making a fixed deposit?

  • Try Opting for company FDs

Fixed deposits offered by companies have a higher rate of return and usually have more flexible tenures compared to that offered by banks.

 

  • Choose your tenure carefully

To avoid the monetary penalty most fixed deposits levy on you if a premature withdrawal is made,  make sure that you choose your tenure very carefully

 

  • Compare different banks

Remember to compare different banks offering different interest rates and options before you make your choice, as an intelligent investor always looks at all his options before making a decision.

 

  • Split your money

There is a small but a sometimes useful benefit of splitting your money across different banks and different fixed deposits. If you may need to liquidate one of your deposits for an inconceivable reason, then you also have to make sure that there is a deposit you can liquidate immediately without incurring any significant penalties.

 

So don’t forget to check out the meek and silent fixed deposit before you decide to go through with an investment. But remember no investment is infallible and the same is with fixed deposits.

Turkey Crisis

Turkey’s currency Lira has fallen by over 70 percent against the US dollar in the year 2018 and is now at its all-time low. The global markets, especially Europe, are looking closely at Turkey as it stands on the edge of an economic crisis. Turkey is suffering a decline in the value of the its currency, commonly known as the currency crisis, that negatively affects an economy by creating instabilities in exchange rates, meaning that one unit of a certain currency no longer buys as much as it used to in another currency.
There are plenty of reasons that plummeted the Turkish Lira against the US dollar. After the developed economy
attenuated interest rates following the financial crisis of 2008 to propel growth, cheap foreign debt was
easily available to Turkish companies and real estate developers. According to a New York Times report,
Turkey is more reliant on foreign currency debt, mostly dollar-denominated, that corresponds to about 70
percent of Turkey’s economy. Data from the Bank for International Settlements (BIS) uncovers the degree
to which global banks have financed Turkey’s growth.
Turkish borrowers owe Spanish banks $83.3 billion; French lenders $38.4 billion; banks in Italy $17 million; Japanese banks $14 billion; UK lenders $19.2 billion; and the United States about $18 billion. Unsurprisingly, abatement in Lira will trigger panic in the banking sector on top of Turkish
companies defaulting on the debt.
Now it is upon Turkey’s government on how they want to recoup from the situation. Inflation in the
country stands at 16 percent YTD and interest rates are stagnant at 17.75 percent.
With a rising inflation and bombing currency, central banks adjust the interest rates to regulate both best.
Rather, Turkey’s President Recep Tayyip Erdogan has asked the central bank to forestall any fluctuations in
the interest rates. Turkey is on a verge of an economic crisis and has only a few options to avert the slide. Economists
have slackened its growth to 4 percent this year, in contrast to 7.4 percent last year. The country’s foreign
reserves stand at $130 billion, with a short-term debt of $180 billion. Foreign debt constitutes 70% of the overall
debt.
Capital controls are one of the measures that have historically worked only to a limited extent and the only
option is raising interest rates.
In the overall global economy, Turkey is trivial, but Greece was smaller and it distressed the world. Sooner or later the president has to either accentuate the interest rates, which will work only if implied at earliest or ask for help from International Monetory Fund (IMF). The more the delay in correction; severe will be the spill-over in other economies.

-Sanchita Bhatia

PGD-FA (2018-19)