Emotional Wellbeing

Riding the Wave of Inflation: A Guide to Investments

November 11, 2022
Usha Mallya
Riding the Wave of Inflation: A Guide to Investments

Inflation is a long-term pattern of rising prices across the economy yearly. Inflation rates indicate the rate of erosion of the value of an investment over time as well as the loss of purchasing power. Investing in assets requires a return on investment consistent with their living standard. 

To overcome the effects of inflation on your investment, you must have financial planning and knowledge. Here are a few things you should know. 

Inflation: What Causes It?

Inflation occurs when the demand for an item or service exceeds the supply of that good or service. This is referred to as demand-pull inflation, and it causes price increases. 

Inflation is also caused by a rise in the cost of producing products and services. As the cost of manufacturing an item rises, manufacturers raise the selling price in order to achieve or maintain a specified profit. This is referred to as cost-pull inflation.

Here's a chart demonstrating how a lakh's value decreases over time to help you comprehend this better.

‍Inflation: What Causes It?

Financial vs Physical Investment

Physical assets can be felt, seen, touched, or held, such as real estate, precious metals, jewellery, plant and machinery, vehicles, tools, etc. These assets must be maintained, repaired, and upgraded, which can lead to expenses.

An intangible asset, such as shares, bonds, deposits in banks, accounts receivables, goodwill, copyrights, patents, etc., cannot be seen or touched, except for the records proving ownership of the asset, for example, shares, bonds, deposits in banks. The value of financial support does not depreciate or diminish with time. Nevertheless, depending on market conditions, the value of a financial asset can appreciate or depreciate.

Asset Classes and Inflation

The value of liquid assets tends to rise less over time than the value of other types of assets since inflation affects them similarly. Because of this, liquid assets are more susceptible to inflation's effects. The larger economy tends to retain fewer liquid assets when inflation rates are high.

Although illiquid assets can generate interest and grow in value, inflation also affects them. Investing in stocks, bonds, and mutual funds is one of the best ways to protect savings against inflation. In times of high inflation, people often spend their liquid assets on consumer goods or invest them in interest-paying assets.

Systematic Investment in Equity Mutual Funds

Mutual Funds offer a Systematic Investment Plan (SIP), a means of investing a fixed amount at regular intervals, say once a month or once a quarter, instead of making a lump-sum investment. Instalments could be as low as INR 500 per month and are similar to recurring deposits. Moreover, it is convenient since your bank can give you standing instructions to deduct the monthly amount.  

Here are some examples of the power of compounding

‍Systematic Investment in Equity Mutual Funds

Three Golden Rules of Investment

Start Early

It is recommended that you start early in order to gain greater financial wellbeing and to maximise your returns on investment. If you allow your investment portfolio to generate returns over time, your returns will essentially create more returns. In technical terms, this is called compounding, proving that even small investments can accumulate into large sums over time.

Invest Regularly

Regularly investing rather than attempting to time a lump sum investment can help you become a more disciplined investor. Ultimately, you must invest no matter how high or low the price is. As a result, investing becomes less emotional, and you can put your money to work more quickly.

Invest for Long Term

The relationship between volatility and time is an advantage of long-term investing. The volatility of investments held for a more extended period tends to be lower than the volatility of assets held for a shorter period. The longer you invest, the more likely you will survive market downturns.

Investments with their risk vs return potential

Three Golden Rules of Investment

Conclusion

If the returns on an investor's assets are less than the rate of inflation, even if they show profits, they will lose money. Additionally, individuals should ensure that their income increases at least as much as inflation; otherwise, they are technically earning less than they would otherwise and losing financial stability.

Emotional Wellness

Embracing Change: The Shift from IQ to Adaptability Quotient

November 16, 2022
Aakriti Agarwal
Embracing Change: The Shift from IQ to Adaptability Quotient

One of the most famous phrases attributed to Albert Einstein is, "The measure of genius is the ability to change." It is more accurate than ever in today's swiftly changing world.

Change is unavoidable, and we must be prepared to navigate it successfully. And, like so many other things, change may travel in both positive and harmful directions. We are practically sure to experience disaster and failure if we fail to manage the stormy seas of change in the proper way.

We will surely grow more clever, insightful, and adaptable as we learn to maneuver through life's changes. To thrive in life and conquer the challenges that come your way, you'll need perception, assessment, and adaptability. When presented with a difference, intelligence is tested by making adjustments and changing subsequent actions accordingly.

When we change, we develop and become wiser in the process. Humans generally thrive on change and expansion, but they might have many inner or outward factors to change.

Trying to maintain everything the same is not only unhealthy but also impossible. You are misinterpreting human traits and thriving if you avoid change.

Adaptability and Workplace

Embracing Change: The Shift from IQ to Adaptability Quotient
Photo by Brett Jordan on Unsplash

The way we work, live, and interact with one another is changing dramatically. Unprecedented rates of change have emerged from extraordinary technological developments in automation and artificial intelligence, disruptive innovation, and globalisation. As a result, leaders in the business sector are continually rethinking how their companies create value and stay relevant in an unpredictable climate. 

Furthermore, the future of employment is continuously evolving. Technological improvements have decreased the expiry date of staff talents to the point where a typical corporate capability is only relevant for 4.2 years, down from 30 years in 1984. According to the World Economic Forum, 65 per cent of present employment will be obsolete by the time today's primary school students reach the workforce.

What is the adaptability Quotient?

The capacity to decide what is relevant, discard obsolete information, overcome hurdles, and respond to change in real-time is known as the Adaptability Quotient (AQ). Those with a high AQ exhibit the following characteristics:

  • Open-mindedness. They actively manage their unconscious prejudices to remain receptive to new ideas.
  • They go out of their way to perceive things from other people's viewpoints.
  • They place a high value on acquiring new skills and investing in their education to better prepare themselves for an unpredictable future.

Adaptable leaders and staff are better suited to meet their company's changing and growing demands – and they're in great demand.

"Adaptability is the quality that distinguishes the survivor from the perished." - Charles Darwin

How can adaptability be developed?

Years of practice responding carefully to problems as they emerge are required for adaptability. You have the power to influence your team and propel your company ahead as a leader. Adaptability, like emotional intelligence, may be increased and enhanced.

  • Model the high-AQ behaviour you want your workers to emulate. For example, leaders who adopt the pacesetting leadership style may increase their team's AQ by displaying flexibility and encouraging team members to alter and update their abilities. This will aid in the creation of a stress-resilient and change-adaptive environment.
  • Take charge of your educational path. Recognise the importance of continuing your education. Assume responsibility for your education, and you will increase marketability for years to come.
  • Decide which positions you want to pursue depending on how much you can learn. Then, make future opportunities to learn critical new skills a priority.

What is agile, and how is it more effective in bringing adaptability to you?

The three pillars of Agile are quality, speed, and value. It encourages people to risk discovering new ideas and developing them with the least amount of danger possible. It's a cycle that starts with an idea and ends with a worthwhile result. It encourages people to take the risk of generating new ideas and developing them with the slightest danger of failure. 

A group of people may work together to develop an idea, correct errors, and make it worthwhile. The possibilities are designed, and duties are shared after the concept is conceived. As a result, more than one team would be working on the idea, each with their skill level in a specific area. If a mistake occurs, only the team assigned to it will reprogram it, saving time and energy for the others.

Three tips to help you develop the mindset to adapt to change: 

Three tips to help you develop the mindset to adapt to change
Photo by Nataliya Vaitkevich

Recognise change

One of the most challenging aspects of the process is recognising and embracing change—one of the first things we do as humans are to deny reality. As a result, we frequently ignore the shift to avoid dealing with it, or so we believe. But, on the other hand, denying or postponing this problem may make it worse and more unpleasant than just embracing it from the outset. 

It's critical to acknowledge that change is occurring and to attempt to emotionally and, if possible, physically prepare ourselves for it! Recognising and embracing change is a crucial part of the transformation process.

Maintain a positive attitude

Consider the change in a good light. Rather than focusing solely on the bad, write or speak about why this change could benefit you and any other benefits that may result from it. In times of despair, being optimistic is crucial and an excellent tactic. In any scenario, there are positives, and it is up to you to locate them. 

Ignore your negative feelings about the shift and concentrate on the good, even if only for a short while. This upbeat outlook can assist you in getting through it!

Talk about it

Make a phone call to your best buddy. Speak with a member of your family. Speak with a therapist. It doesn't matter who you talk to, as long as you find someone you can trust and tell them everything. It's critical to express your feelings and discuss them with someone you can trust and rely on. It is a sign of strength, not weakness; to know yourself well enough to recognise that you require support is a sign of strength, not weakness.

This support system may also provide the tools you need to overcome or better adjust to the shift. They can also bring a fresh viewpoint to the problem, which may or may not be beneficial, which is also OK!

Conclusion

Remember, change is unavoidable, and it affects everyone! What distinguishes it is how you respond to the change. And don't be concerned if it takes you longer than someone else; you're all on your road! It takes time to adjust, but if you stay optimistic and open-minded, you will succeed.

Corporate

A Complete Guide to Empowering Employees in the AI Revolution

May 9, 2023
Disha Shah
A Complete Guide to Empowering Employees in the AI Revolution

The dawn of the artificial intelligence (AI) era has brought forth a plethora of opportunities and challenges in the workplace. AI is undeniably a game-changer with the potential to increase efficiency, enhance creativity, and improve decision-making. However, concerns about job displacement, data privacy, and ethical implications persist. 

As a leader, it is crucial to effectively introduce AI to your workforce and empower employees to harness the potential of this groundbreaking technology. In this in-depth article, we provide you with a comprehensive guide for navigating the AI revolution and fostering a successful AI-integrated workplace.

Cultivating a Culture of AI Acceptance

To ease apprehensions surrounding AI, leaders must establish a culture of open communication. Employees will feel comfortable expressing their concerns and asking questions by creating an environment that encourages dialogue. Share success stories and debunk myths to create a positive perception of AI within the organization. This foundation of trust will pave the way for a smoother AI adoption process.

Encourage employees to explore AI tools and technologies by organizing workshops, hands-on demonstrations, and interactive learning sessions. This fosters a sense of ownership and curiosity and helps employees understand AI's practical applications and benefits. They will develop a firsthand perspective on how AI can improve their work.

Showcasing AI's Value with Real-Life Applications

One of the most effective ways to gain employee buy-in is by demonstrating how AI can enhance efficiency and productivity. Present case studies of companies that have successfully adopted AI and showcase how these tools have streamlined workflow and improved overall performance. Discuss specific examples of AI applications, such as automating repetitive tasks, optimizing scheduling, and enabling data-driven decision-making.

Beyond efficiency, AI has the potential to augment human creativity and problem-solving capabilities. Share examples of AI-powered creative tools, such as content generation software and design assistants, and discuss their benefits. Inspire employees to explore the potential of AI in their own work by showing how the technology can complement and elevate their skills.

Collaborative AI Implementation

Involving employees in the decision-making process when adopting AI tools is essential for fostering a sense of collaboration and trust. Gather feedback and suggestions from employees across various departments to ensure everyone has a voice in the AI integration process. Highlight the unique ways different teams can utilize AI to address their specific challenges and goals.

Customized training and support can help employees adapt to AI-driven changes in their respective job roles. Develop tailored learning experiences and provide ongoing resources to empower employees to utilize AI tools and technologies effectively. This could include role-specific training sessions, mentorship programs, and access to online courses or certifications.

Addressing Ethical and Legal Considerations

A responsible approach to AI adoption involves adhering to data privacy regulations and ethical best practices. Discuss industry-specific concerns and guidelines with your employees, emphasizing the importance of maintaining compliance and upholding ethical standards. This conversation should cover topics such as data protection, transparency, and fairness in AI applications.

Address concerns about intellectual property, ownership, and accountability in AI-generated content by establishing clear guidelines and expectations for employees. Discuss potential issues, such as plagiarism and biased decision-making, and ensure employees understand their responsibilities when using AI tools. This will help mitigate potential issues and foster a responsible approach to AI adoption.

Maintaining an Agile Workforce in the AI Era

To stay competitive in the rapidly evolving landscape of AI-driven industries, it is vital to maintain an agile workforce that can quickly adapt to change. Encourage continuous learning and skill development by providing employees with access to educational resources, such as online courses, workshops, and industry conferences.

Establishing a culture of innovation and adaptability will ensure that your organization remains resilient and able to capitalize on the opportunities presented by AI. Encourage employees to experiment with new ideas and approaches and celebrate their successes and learnings. This will create an environment where employees feel motivated to grow and evolve alongside AI technologies.

Evaluating and Measuring AI Impact

To ensure the successful integration of AI in the workplace, it is essential to evaluate and measure its impact on your organization regularly. Establish key performance indicators (KPIs) to track the effectiveness of AI tools and strategies. Analyze data and employee feedback to identify areas where AI has improved efficiency, productivity, or innovation, as well as areas where improvements can be made.

By closely monitoring the performance of AI tools and their impact on your organization, you can make data-driven decisions to optimize their use, address any issues, and maximize the benefits of AI integration.

Closing Thoughts

In conclusion, successfully navigating the AI revolution requires a multifaceted approach that includes cultivating a culture of acceptance, showcasing AI's value, implementing AI collaboratively, addressing ethical and legal concerns, monitoring the evolving AI landscape, embracing the human-AI partnership, maintaining an agile workforce, and evaluating and measuring AI impact. 

By adopting this comprehensive approach, leaders can empower employees to harness the potential of AI and drive their organizations toward a prosperous and innovative future.

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