Investment Exceeds Savings The challenge!! Economies around the world face various challenges from time to time due to changes in social, political, and economic scenarios. But every problem has its own solution and positive and negative consequences.  Here is a situation where investments exceed savings in an economy, which gives rise to several consequences, impacting economic growth, inflation, and overall stability.  Consequences - A detailed breakdown: 1. Increased Aggregate Demand -  Investment typically involves spending on capital goods, infrastructure, or other projects. When investment surpasses saving, aggregate demand in the economy rises.  This can lead to higher economic growth as businesses expand and employment opportunities increase. 2. Potential for Inflationary Pressures -  If investment increases significantly while saving remains lower, the demand for goods and services may outpace their supply, causing prices to rise.  This demand-pul...

Least Liquid Assets - But High Returns Significance of liquidity in investment: One of the many factors that we consider while making an investment in an asset class is its liquidity level. Liquidity tells us how fast an asset or an  investment  can be converted into cash, and it is necessary to account for it because different investors have different risk profiles and financial goals. Liquidity levels are determined by many factors, including the number of market participants, the volume of funds available in the financial market , financial regulations, and transparency levels in the market. Therefore, highly liquid investments can be converted into cash within a very short time, whereas assets with very low liquidity need a long time to be converted into cash.  Assets with low liquidity but high returns: Here, we will learn about some assets that are considered to have very low liquidity levels, arranged in ascending order of liquidity.  1. Direct owner...

Managing loans during your job tenure requires careful planning and discipline to ensure financial stability and long-term peace of mind. Here’s a guide with actionable strategies to help you stay on top of your loans. Tips to manage loans effectively - while on job: 1. Review Your Income, Expenses, and Debts Start to manage loans while working by assessing your financial situation. Calculate your total income, monthly expenses, and existing loan obligations. Use budgeting tools or apps to track spending patterns and identify areas where you can cut back. This step will give you a clear picture of your cash flow and help prioritize loan repayments. 2. Discuss Flexible Repayment Options Many lenders offer flexible repayment options, such as increasing the tenure, restructuring EMIs, or temporarily deferring payments. If you’re struggling with repayments, communicate with your lender early. In order to manage loans during job tenure, discuss options like income-driven repayment plans or ...

Understanding ESG and Sustainable Investing: Believe it or not, you often use the two important terms, ESG investing and sustainable investing, interchangeably. But they actually convey two different meanings. Let's clarify what ESG (Environmental, Social, Governance) and Sustainable, also called SRI (Sustainable, Responsible, and Impact) investing, convey.  Various big investment houses put a lot of effort and funds into publicizing ESG investing and try to judge a company or business' responsibility levels by using ratings based on some numerical data and metrics. They, quite often, do not follow any particular level or quality, because the metrics keep varying from time to time. The essence is that these ratings portray the potential impact of the environment on the business and not vice versa.  Now, what do we understand about the difference between them? Overall, the idea behind ESG investing vs. sustainable investing is that ESG focuses more on aligning the fin...

What is Crypto Wallet?? To discover which is the best crypto wallet, it is necessary to have a good understanding of what a crypto wallet actually is. A crypto wallet is a software application that can be used as a wallet, very similar to the ones that we typically use to keep cash or debit and credit cards.  However, this wallet is not in a physical form. Instead, it is in the form of software that can be used to store the keys. Keys or passkeys are a combination of letters and numbers that secure the communication and access of the cryptos. Each wallet has its own features and security system and is typically used to access the blockchain network.  Best Crypto Wallets of 2025: 1. Coinbase Wallet - It is extremely user-friendly and offers high levels of security for digital assets. Users have total control over the wallet, which supports a variety of cryptocurrencies. It is integrated with various decentralized applications and is versatile and easy to handle for beginners....

The  Morgan Stanley and Climeworks AG  Deal... The latest deal between Zurich-based Climeworks AG and Morgan Stanley related to corporate social responsibility activity, aiming to permanently remove 40,000 tons of carbon dioxide from the atmosphere is an ambitious step towards environmental sustainability by using funds for climate change mitigation. It shows a commitment to framing credible strategies and meeting climate sustainability goals to control the catastrophic outcome that our planet may have to face in generations to come.  What Climeworks gains from it? The agreement towards environmental stability will facilitate Climeworks' scaling up its Direct Air Capture technology in the United States, which is crucial because it is a strong supporter and the largest technology provider to Project Cypress, which aims to capture and store CO2 from the air. Morgan Stanley, in this case, is playing a very important role in fulfilling its dedica...