A Quich Brush Up for Picking Stocks

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Stock prices are known to be fluctuating and volatile. A bearish trend starts when the prices of shares fall and there are few buyers. Usually, the market finds buyers whenever they feel that the worst is over and now is the time to buy.  A bullish trend occurs when there is an increase in the prices of shares and there are many buyers. A bearish trend is bounded by the market and market sentiments and may end up showing a reverse trend. Here are some tips to follow when you buy stocks the next time;

• Rather than considering stock prices, consider the company. which sector the company belongs to, the profits position earlier, as of now and profit projections for the future. Are there going to any significant changes in the company's earning projections and whether it is something permanent or whether it is temporary.
• Therefore, even if the stock reaches the targeted purchase price, it is advisable not to accumulate it all at one time. The purchase may be done in two or three equated trenches over a period of a month or two.
• Short selling or selling part of the stocks you own when there is a bearish trend is another good strategy which could cushion the portfolio performance in the event that the prices show an upward trend.
• New companies have a good potential as there is no dearth of venture capital financiers. Their performance in the midst of national and international political and economical changes are to be watched and monitored closely.

China's Shaky Economy

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The economic growth rate of China has been according to what has been expected and the expectation that more imminent monetary factors to ease the pace of the economy has set a positive note about the Chinese economy. However, there have been indications about a shaky growth of the economy. These are the indications that highlights, the slowdown of the growth:

• The growth was weakest in the last quarter with a growth rate of 6.8%.
• There was a huge outflow of capital and a slide in the currency rate. While the spot yuan has been less affected, the offshore yuan has weakened.
• There was a summer stock crash and made the country risky for global investors this year. This has led to a global concern about Beijing's grip on economic policy.
• China's statistical bureau has estimated a rise of 5.9% in industrial growth for December, which was less than the rise that was expected. During last year, there was a fall in the output of electric power and steel for the first time in decades. Coal production saw a decline the second sequential year.
• Weakening the power of the consumer to become the new engine of growth, the December retail sales saw a decline a more than 10%.

The economy may therefore have a shaky landing experience this year. The factors that could stimulate the economy are the effective intervention of the Peoples Bank of China and  the stability of the yuan(also known as renminbi). This will contain the volatility and the  increasing outflow of capital which are essential and pivotal to maintain growth.

Investment in Annuities

Annuities offer a monthly return of income after paying premium as a lump sum or for a certain number of years according to the policy terms. In addition, the policy can pay a lump sum amount and a regular monthly income thereafter to the beneficiary, on the death of the  insured.

• The plan is suitable for retirement, as there will be a monthly income assured, when the insured is not working.
• This plan is suitable for families where only one member of the family is working. The plan enables the non -working spouse to manage the loss of regular income of the insured.The plan fulfills loans and debts that are to be paid off and/or one-time large expenses like marriage or children's higher education.
• The term of the plan is set according to the premium paid and the payout terms. The policy provides dual benefits of insurance and monthly income throughout the policy term.

Some Annuity Plans 

• Jeevan Akshay- 6: Life Insurance Corporation
• SBI Life Immediate Annuity Plan
• HDFC Life New Immediate Annuity Plan
• Reliance Immediate Annuity Plan
• ICICI Pru Immediate Annuity
• Fidelity Personal Retirement Annuity
• Metlife Accumulation Annuities
• Deferred Fixed Annuities 

Basis of Rating for a Homeowners Policy

A homeowners policy is rated according to several factors that determine the base rate. In the first phase, the following factors determine the premium:

• The territory i.e. where the house/property is located.
• The construction of the building; whether the building is masonry or framed.
• The Sum Insured or the amount to be covered.
• The availability and quality of the fire department and water supply i.e. the public protection class.
• The policy required i.e. HO-2(named peril coverage), HO-3(special form coverage for dwelling and other structures and named peril coverage for personal property) , HO-4( content coverage for tenant in an apartment building or a house) , HO-5(The broadest and comprehensive coverage), HO-6( A unit owners form in the event the insured might own and occupy a condominium unit)or HO-8( a modified coverage for old and obsolete homes where the replacement cost value far exceeds its market value).
• The type of construction or superior construction
• The deductibles required or opted for
• The endorsements attached to the policy.

In the second phase, the rating is finally determined by

• The presence of unusual construction factors, 
• Increased deductibles applicable or opted for and 
• Other endorsements that increase or decrease the sum insured to be insured.  

The calculation of premium for different individual householders policies are bounded by these factors. Therefore, an underwriter should be familiar with these features to facilitate fair and accurate calculation of  premium.

The Health Insurance Portal of IRDAI

A health insurance portal has been launched by the Insurance Information Bureau (IIB). This portal which has been promoted by the Insurance Regulatory and Development Authority of India, has been called as the Registry of Hospitals in Network of Insurer (ROHINI).

• The information provided by the portal includes a list of all IRDAI registered hospitals and nursing homes with each one of them being provided a unique ID. Information about treatment facilities available for the insured has been incorporated. Another feature is that the portal has updated information about the current address, facilities and costs of these listed institutions. Information about the high risk diseases within geographical areas has been researched and provided in the portal. This information will be updated as and when required.
• The portal not only has health insurance information, but also provides a link between hospitals and insurance companies. As the connectivity between hospital records and insurance companies improves, the authenticity of claims is more easily established. This will be instrumental in improving the claim settlement procedures.
• The website https://rohini.iib.gov.in has a network of 35000 hospitals with more to be added. The insurance customer can conveniently find a list of hospitals connected with various health insurance plans and cost estimate of available treatment and facilities.
• The IIB will be able to oversee  health claims, hospital records and updated information from the network and the insurers.They will also be able to analyze data for the insurers and the insured. 
• The portal has relevant information that allows insurers to set the premium according to the geographical area. 

After setting up of ROHINI, it is expected that there is a portal for third party administrators (TPA) of health insurance claims also. This will enable improved communication between all parties in the insurance contract , improve efficiency and and also more transparency in settlement of claims

Growth of the Indian Economy

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It is well known that the global growth rate of the world economy has been sluggish. Amidst sluggish global growth, the engines of the world economy were fueled by the Indian and the US economy. The United States among the rich economies and India among emerging economies have been the pillars of the growth rate of the world economy.
India's growth rate however has been around 7%. The Indian economy is expected to the fastest growing country among the major economies in the world. According to a think tank Center for Economic Business and Research (CEBR), India has the potential to become the third largest economy in the world by 2030. The report has mentioned that,the Indian Economy's growth rate had become at par with China's growth rate during 2015 due to faster economic growth rate. This trend is likely to continue. 

The CEBR's World Economic League Table (WELT) has spelled out that the country has a long way to go and is likely to overtake China only at some time in the second half of the 21st century. The country will overtake the British economy and will become the largest economy in the Commonwealth by 2019.

Being the world's second populous nation, the growth rate of the Indian economy faces many obstacles due to a sluggish growth in its infrastructure, slowdown in global trade, and other global political and social unrest. 

http://www.ibtimes.co.uk/india-economic-growth-potential-higher-7-5-1507013