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LEVERAGING PRIVATE WEALTH MANAGEMENT

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Leveraging private wealth management

Liberalization of economy has led to mushrooming of private banking systems in India. Private wealth management companies are helping people manage their wealth. Investors are getting attracted to private equity firms, which are now a lucrative option for a good ROI.

Leveraging private wealth management

Leveraging private wealth management

Private banking has been a part of the Indian economy ever since banking system started in India. After the liberalisation of the Indian Banking Industry by the Reserve Bank of India, private banking systems in India gained a lot of momentum. Senior private bankers began setting up private wealth management firms to provide wealth management services. People began seeking their services to plan their wealth management strategy.

Why is wealth management important?
Wealth creation is a pursuit followed by everyone. However, successful management of wealth is not everybody’s forte. It calls for a lot of planning, discretion and commitment. No matter you earn money the hard way, win a lottery or inherit some wealth, without a well-planned strategy in place, wealth can get depleted before you realise it. A better quality of life and financial security are the major factors driving one’s efforts for wealth creation and management. However, in the endeavour of these, people often overlook that in the absence of proper management of assets, all wealth is potentially at stake of getting diminished. In order to facilitate the growth of wealth, it is best to trust private wealth management companies for their expertise. They have a rich experience of the financial market and can advise best on investment concerns.

Wealth management experts suggest that investment in Private Equity firms is a good option to grow wealth as it offers attractive Return on Investment (ROI).

Some benefits of investing in Private Equity firms:

  • High ROI– Private Equity investors choose opportunities where they can invest into something of value at reduced costs, nurture it and wait for it to appreciate so that it can be sold for a profit. PE investors are prepared to wait for this scenario most of the times. They are usually willing to invest more money into the company if required, in the hope of maximizing the ROI.
  • Great scope– Private equity firms offer a great scope as compared to the public markets. Be it a small manufacturing company or the largest division of a multi-national giant, any organization can be a private equity investment opportunity. Private Equity firms also attract public companies that are looking on to go private.
  • Transparency and Accountability– Private Equity firm investors can hold the company accountable for their performance deliverables and target milestones. They can even bargain a chair on the board and exert a lot more authority than a public company stakeholder. Moreover, Private Equity firms grant direct access to investors if they want to get in touch with the top officials of the company; which is in quite contrast to a public sector company.

Considering the inherent economic strength of India, the scope of investments in companies which are not listed on the stock exchange seems to hold great prospects in the times to come.

Binny Aleena is Content writer who love writing about Luxury Brands, Private Wealth Management, Private Equity Firms, Private Banking Systems, Family Wealth, Taxation Services, Premium Brands, Entrepreneurs, Record Management and so on.

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Oil eases from 13-month high on worries output could rise

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Oil eases from 13-month high on worries output could rise 1

By Scott DiSavino

NEW YORK (Reuters) – Oil prices slipped from 13-month highs on Thursday as worries that four months of rising futures will prompt U.S. producers to drill more and OPEC+ to remove some production cuts.

That small decline came despite an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the winter storm in Texas, both of which helped boost crude prices to their highest since January 2020 earlier in the day.

Brent futures for April delivery fell 49 cents, or 0.7%, to $66.55 a barrel by 1:34 p.m. EST (1834 GMT), while U.S. West Texas Intermediate (WTI) crude fell 23 cents, or 0.4%, to $62.99. The April Brent contract expires on Friday.

“With momentum appearing to slow a week before the next OPEC+ meeting, crude may be positioning for a small correction,” said Craig Erlam, senior analyst at OANDA, noting “There’s still plenty of downside risks in the market and one of them is OPEC+ unity coming under strain in the coming months.”

Analysts noted higher oil prices in recent months – both Brent and WTI have gained more than 75% over the past four months – could encourage U.S. producers to return to the wellpad and OPEC+ to loosen its production reductions.

The Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, are due to meet on March 4.

The group will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.

Extra voluntary cuts by Saudi Arabia in February and March have tightened global supplies and supported prices.

Meanwhile, an assurance from the U.S. Federal Reserve that interest rates would stay low for a while helped support oil prices earlier in the day and should boost investors’ risk appetite and global equity markets.

The winter storm in Texas caused U.S. crude production to drop by more than 10% or 1 million barrels per day (bpd) last week, the Energy Information Administration (EIA) said.

Fuel supplies in the world’s largest oil consumer also tightened as its refinery crude inputs dropped to the lowest since September 2008, EIA data showed.

Texas state legislators on Thursday started digging into the causes of deadly power blackouts that left millions shivering in the dark as frigid temperatures caught its grid operator and utilities ill-prepared for skyrocketing power demand.

ING analysts said U.S. crude stockpiles could rise in weeks ahead as production has recovered fairly quickly while refinery capacity is expected to take longer to return to normal.

Barclays, which raised its oil price forecasts on Thursday, said oil could rally again on the weaker-than-expected supply response by U.S. oil operators to higher prices.

“However, we remain cautious over the near term on easing OPEC+ support, risks from more transmissible COVID-19 variants and elevated positioning,” Barclays said.

(Reporting by Julia Payne in London and Florence Tan in Singapore; Editing by Marguerita Choy and Steve Orlofsky)

 

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Oil holds close to 13-month high, supported by sharp drop in U.S. output

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Oil holds close to 13-month high, supported by sharp drop in U.S. output 2

By Julia Payne

LONDON (Reuters) – Oil prices remained close to 13-month highs on Thursday, with profit-taking limited by an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the storm in Texas.

Brent crude for April hit $67.70 a barrel during the session, its highest since Jan. 8, 2020. By 1437 GMT, it had slipped 48 cents, or 0.7%, on the day to $66.56.

U.S. West Texas Intermediate was down 49 cents or 0.8% at $62.73, after also hitting a 13-month high of $63.79.

Tamas Varga, analyst at PVM Oil Associates, said the dip was partly due to profit taking after a three-day rally.

An assurance from the U.S. Federal Reserve that interest rates would stay low for a while weakened the U.S. dollar, while boosting investors’ risk appetite and global equity markets.

The winter storm in Texas caused U.S. crude production to drop by more than 10% or 1 million barrels per day (bpd) last week, the Energy Information Administration said. [EIA/S]

Fuel supplies in the world’s largest oil consumer could also tightened as its refinery crude inputs had dropped to the lowest since September 2008, EIA’s data showed.

ING analysts said U.S. crude stocks could rise in weeks ahead as production has recovered fairly quickly while refinery capacity is expected to take longer to return to normal.

Barclays, which raised its oil price forecasts on Thursday, said it oil could rally again on the weaker-than-expected supply response by U.S. oil operators to higher prices.

“However, we remain cautious over the near term on easing OPEC+ support, risks from more transmissible COVID-19 variants and elevated positioning,” Barclays said.

The Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, are due to meet on March 4.

The group will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.

Extra voluntary cuts by Saudi Arabia in February and March have tightened global supplies and supported prices.

(Reporting by Florence Tan; Editing by Steve Orlofsky and Edmund Blair)

 

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GameStop shares rise in early trade before being halted

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GameStop shares rise in early trade before being halted 3

By Aaron Saldanha and Thyagaraju Adinarayan

(Reuters) – GameStop Corp shares shot higher in early trading on Thursday before a series of NYSE trading halts, a day after an unexpected surge doubled the price of the video game retailer’s stock. The stock hit $160 at the open before being halted after several minutes of trading. Shares were changing hands at around $129 before the second halt.

The early rise built on Wednesday’s rally in GameStop and other so-called “stonks” – an intentional misspelling of “stocks” – favored by retail traders on social media sites such as Reddit’s WallStreetBets.

The new frenzy has puzzled analysts, with some ruling out another short squeeze of the stock which had battered some hedge funds, and fueled more hype after some Twitter users pointed out a cryptic tweet of an ice-cream cone photo from activist investor Ryan Cohen – a major shareholder in GameStop and a board member.

A short squeeze takes place when the price of a heavily shorted stock rises sharply, forcing short-sellers who had bet against the stock to buy it at those prices to avoid further losses.

“Short interest, though still significant, is now starting out from a different base than last time when it was more than 100%,” said Ankit Gheedia, Head of Equity and Derivative Strategy, Europe for BNP Paribas.

“And this time around (GameStop trading) is likely to have a smaller impact as people who got burnt last time may not participate in this episode.”

GameStop shares were still well below their peak of $483 in January.

GameStop was the fourth most traded stock by Fidelity’s customers on Wednesday, with buy orders outnumbering sell orders nearly 2-to-1, as per the broker’s data.

The latest surge comes days after Reddit trader Keith Gill, who runs the YouTube channel Roaring Kitty, doubled down on GameStop and bought additional shares last week.

Gill testified to Congress last week that he remains bullish on GameStop, with his words “I like the stock” gaining popularity, being quoted by hundreds of his online followers and featuring on financial-themed meme pages online.

Gill, known to followers as DeepF—ingValue on Reddit, reportedly boosted his stake in GameStop soon after his Congressional testimony.

Reddit discussion threads were buzzing again about GameStop on Thursday, with members exhorting others to pile in as the rally gathers steam.

“Bought lots more #GME today, let’s keep fighting !!,” wrote one Reddit user Fundssqueezzer, while another user Responsible_Fun6255 said, “Rise of the planet of the ape: GME edition”.

Earlier on Thursday, GameStop’s Frankfurt-listed shares trebled at one point, overshooting the 100% surge on Wall Street overnight, as European retail traders joined in the fresh buying push.

The sharp moves surprised the market, which thought the excitement behind the recent Reddit-fueled rally had died down.

RISKY BETS

GameStop shares skyrocketed in January as retail investors, urged on by WallStreetBets, bought the stock as a way to punish hedge funds that had taken an outsized short bet against it.

The squeeze hurt Melvin Capital’s Gabriel Plotkin, whose firm was left needing a $2.75 billion lifeline supplied by hedge fund Citadel LLC’s Kenneth Griffin and Point72 Asset Management’s Steven Cohen.

The risky trading strategies employed by some traders on Reddit have drawn the ire of investing legends such as Charlie Munger, long time business partner of Warren Buffett.

“It’s really stupid to have a culture which encourages as much gambling in stocks by people who have the mindset of racetrack bettors,” said Munger, Berkshire Hathaway’s vice chairman.

GameStop’s U.S.-listed shares soared nearly 104% on Wednesday. The volatility in GME, AMC Entertainment and other stocks led to outages on Reddit and periodic trading halts by the New York Stock Exchange.

Online brokerage Robinhood said in a tweet that the NYSE action would impact all brokerages, but that it had not paused trading on the shares.

“It’s a pretty risky play to try and buy now … what we might (see) at the open of the cash market is some people trying to get in,” said Oriano Lizza, premium sales trader at CMC Markets in Singapore, which does not offer pre- or post-market trade.

The latest surge comes after a couple of weeks that saw the shares move in relatively tighter ranges.

“It’s a marathon, not a sprint. Whatever happens resist the urge to sell. The longer we hold the higher it goes,” said @catchme1fyoucan, an Italy-based user of retail trading platform eToro, in a discussion on GameStop.

(Reporting by Aaron Saldanha in Bengaluru, Tom Westbrook in Singapore and Danilo Masoni in Milan; Additional reporting by Sagarika Jaisinghani; Writing by Anirban Sen; Editing by Jason Neely, Bernard Orr and Nick Macfie)

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