AI & Stock Markets: Will Artificial Intelligence Be the Next Big Market Mover?
In 2023, AI-driven hedge fund Numerai outperformed traditional investors by using machine learning to predict stock trends. While human traders relied on intuition, Numerai’s AI crunched billions of data points—making smarter, faster decisions.
So, is AI the future of stock markets?
How AI is Changing the Game
🔹 Smarter Trading: AI detects patterns and predicts stock movements faster than any human.
🔹 Algorithmic Trading Boom: Over 60% of trades are AI-driven, reducing emotional biases.
🔹 Retail Investors Benefit: AI-powered tools like Zerodha’s Streak and Robinhood’s insights help everyday investors make informed decisions.
Is AI a Risk or Opportunity?
✅ Opportunities: Faster execution, better risk management, and improved efficiency.
⚠️ Risks: Over-reliance on AI could lead to flash crashes and unpredictable volatility (remember the 2010 “Flash Crash” where AI-driven trades erased $1 trillion in 36 minutes?).
Final Thought
AI isn’t replacing human investors—it’s revolutionizing how markets function. Whether you’re an active trader or a passive investor, understanding AI’s impact can give you an edge in this evolving financial landscape.
(Contributed by Aman Goyal, Relationship Manager, Team Vikrant, Hum Fauji Initiatives)
Zero-Based Budgeting: Giving Every Rupee a Job
Money works best when it has a clear role. Without direction, it tends to disappear on small, unnecessary expenses—a quick snack here, an impulsive purchase there. Zero-Based Budgeting (ZBB) ensures that every rupee is assigned a job, helping you stay in control of your finances.
What Exactly is ZBB?
Unlike traditional budgeting, which simply adjusts past expenses, ZBB starts from scratch each time. Every expense must be justified before it gets a share of your income. This approach eliminates wasteful spending and prioritizes what truly matters.
How to apply ZBB: A Step-by-Step Guide
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- Start from Zero: Forget past budgets. Begin with a clean slate.
- List All Expenses: Categorize everything—rent, food, savings, entertainment.
- Justify Every Cost: Ask yourself: “Is this necessary? Does it add value?”
- Prioritize and Allocate: Essentials first, followed by optional spending.
- Regular Review and Adjustment: Regularly check and tweak your budget.
Key Takeaway – It’s about taking control of your finances and making conscious choices about how you spend your hard-earned rupees. By giving every rupee a job, you can achieve your financial goals, build wealth, and live a more fulfilling life.
So, grab your spreadsheet, channel your inner budget ninja, and start giving those rupees some purpose.
(Contributed by Prerna Pattanayak, Relationship Manager, Team Sukhoi, Hum Fauji Initiatives)
Climate Change & Home Insurance: Are You Really Covered?
Climate change is no longer a distant threat—it’s reshaping our world right now. In India, extreme weather events have surged by nearly 50% over the past decade. The 2018 Kerala floods alone caused ₹15,000 crores in damages, displacing millions. Yet, despite these staggering losses, less than 1% of Indian homes are insured as reported by the Insurance Regulatory and Development Authority of India.
Why Most Homes Are at Risk
Limited Coverage: Standard policies cover fire and theft but often exclude floods, cyclones, and landslides—disasters that are becoming more frequent. Remember floods in Rajasthan!
Underinsurance Problem: Many homeowners underestimate property value, leaving them without enough funds for rebuilding.
Rising Costs: Construction expenses increase 5–10% annually, making repairs harder to afford without proper coverage.
What You Can Do Today
✅ Review Your Policy: Check if it covers natural disasters.
✅ Update Your Coverage: Ensure it reflects current property values.
✅ Consider Add-Ons: Protection for floods, earthquakes, and landslides can be lifesaving.
Don’t wait for the next disaster. Secure comprehensive home insurance today—it’s not just an expense, it’s peace of mind for your family’s future. Remember, your house is your costliest possession!
(Contributed by Avantika Agarwal, Financial Planner, Team Sukhoi, Hum Fauji Initiatives)
What did our clients ask us in the last 7 days
Question – My mother’s land was acquired by the National Highways Authority of India (NHAI), and she received compensation for it. Does this mean she’s off the hook for capital gains tax, or is there a catch? How should we report this in the ITR? Is uploading the acquisition order mandatory while filing the ITR?
Our Reply –
If your land was compulsorily acquired by NHAI, you might be wondering: Do I have to pay capital gains tax? Good news! In most cases, the compensation is completely tax-free!
Why Is It Tax-Free?
Under Section 10(37) of the Income-tax Act, 1961, compensation is exempt from capital gains tax if:
- The land was used for agricultural purposes by you or your family for at least two years before acquisition.
- The acquisition was compulsory under the Land Acquisition Act or a similar law.
How to Report It in Your ITR?
Even though the compensation is tax-free, you still need to declare it in your Income-tax Return (ITR) under the ‘Exempt Income’ section. This ensures transparency and avoids unnecessary tax notices later.
Do You Need to Upload Documents?
No! You don’t need to upload the acquisition order while filing your ITR. But it’s wise to keep it handy for future verification.
So, if NHAI acquired your land, rest easy—your compensation is tax-free! Just report it correctly and stay compliant.
(Contributed by Team Sukhoi, Hum Fauji Initiatives)
Need help with tax exemptions? We’re here to guide you—Click here to take our help today.
