Daily Current Affairs

To The Point Notes

1.Financial Inclusion Index (FI-Index)

Launched by: Reserve Bank of India (RBI) – 2021

Purpose: Tracks progress towards financial inclusion for vulnerable sections.

Frequency: Published annually in July.

Index Range: 0 (complete exclusion) to 100 (full inclusion).

Parameters (Weightage):

• Access (35%)
• Usage (45%) – Most Important
• Quality (20%)

Source of Data:

• Banking
• Investment
• Insurance
• Postal services
• Pension

Key Point:

• FI-Index for March 2024: 64.2 (increased from 60.1 in March 2023)

 

2.Pearl Spot (Etroplus suratensis)

In News

• Kerala University of Fisheries and Ocean Studies (Kufos) is preparing to launch a genome editing mission to boost Pearl Spot production.

About Pearl Spot

• Common Name: Karimeen (Kerala)
• Indigenous fish found along the east and southwest coasts of India.
• Euryhaline species – lives in both freshwater and brackish water.
• Distributed in:
  • Coastal regions of peninsular India
  • Sri Lanka
• Wild populations found in:
  • Kerala
  • Tamil Nadu
  • Goa
  • Andhra Pradesh
  • Orissa
  • West Bengal
• IUCN Red List Status: Least Concern

Genome Editing Mission

• Kufos is launching this mission to boost Pearl Spot production.

 

 

3.Equity Mutual Funds in India

Surge in Inflows

• Significant increase of 17% in June 2024 to a record high of Rs 40,608 crore ($5 billion).
• Domestic investors dominate inflows since Feb 2021: Rs 5.9 trillion vs. foreign inflows of Rs 33,360 crore.

Understanding Equity Mutual Funds

• Invest in stocks of publicly traded companies.
• Professionally managed for investor returns.
• Returns through:
  • Capital appreciation (stock value increase)
  • Dividends (company profit distributions)

SEBI Regulations

• At least 65% of corpus invested in equity/equity-related instruments.

Types of Equity Mutual Funds

• By Market Cap:
  • Large-cap: Top 100 companies (stability, steady returns)
  • Mid-cap: 101st-250th companies (balanced risk-growth)
  • Small-cap: Beyond top 250 (high growth, high volatility)
  • Multi-cap: Diversified across market caps (balanced risk)
• Specialized Funds:
  • Thematic: Specific themes/sectors (technology, infrastructure)
  • Contra: Underperforming stocks with turnaround potential (high risk-reward)
  • Tax Saving (ELSS): Tax benefits under Section 80C (3-year lock-in)
• Focused & Sectoral Funds:
  • Focused: Concentrated portfolio (up to 30 stocks)
  • Sectoral: Specific sectors (banking, pharma)

Benefits of Investing

• Diversification: Reduces risk from individual stock volatility.
• High Return Potential: Highest potential returns among mutual funds (suitable for risk-tolerant investors).
• Affordability: Start SIPs with as low as Rs 500.
• Tax Benefits: ELSS offers deductions up to Rs 1.5 lakh under Section 80C.
• Liquidity: Easier than fixed deposits and other long-term investments.