Benefits
- Draw more people to invest in companies directly thatn via banks
- Builds interest in the economy of country
- Brings in global big companies to india
- India Becomes an IP hub
- India will be seen as a more pro women country than others
- India will be seen as more pro muslim country than others
- India will be seen as more pro christian country than others
- Indian will be seen as more pro minority, pro women country than others
- India will gain higher confidence of capitalists and investors than others
- Socialists+capitalists will finally agree on a scheme where you do socialism via capitalism.
- Anti inflation socialism
- pro capitalist socialism
- vote bank politics of freebies but instead of draining the economy, it will boost the economy.
How?
- India shall reduce corporate tax in far with saudi for listed companies who has at least 40% permanent women employees against permanent+contract male employees where at least 50% of these women will be from christian, muslim, SC, ST group.
- This will improve india's image as
- pro women
- pro muslim
- pro christian
- pro minority
- pro sc
- pro st
- This will attract a lot of companies like google who have name sake head quarters in countries like ireland with all IP owned by their ireland office to save on tax. We can offer lesser tax than saudi, other nations won't protest for the fear of being labelled anti women, anti muslim, anti christian, anti sc, anti st.
- India will become an IP hub.
- All socialist schemes will be done via one time mutual fund with an SWP of 1% of the MF's value. Here the money you are giving away for free stays with you, money will not diminish but the beneficiary will still receive the benefits of the money in the form of money.
Examples: - accident victims instead of receiving cash or house or jobs, the same amount will be kept in a MF in their name with an SWP of 1% of the MF. A decent MF grows at 15% a year but only 12% per year is being withdrawn, so the money keeps growing faster than the rate at which it is being withdrawn. The money in theory is being given to the victim but in practicality the money is invested in the indian economy, the victim is only receiving a portion of the profit, not the principle amount. This SWP will be stopped after 10 years and may be the same is now given to someone else for 10 years. You are officially doing positive socialism but instead of it denting the economy or stock market or scaring away investors, it will do the opposite. Socialism attracting capitalism.
- 500 Cr scholarship scheme for X,Y,Z. Here a 500Cr MF will be opened with the same SWP of 1% per month or 12% per year and used same will be spent for giving scholarship. Now socialists are happy, capitalists are happy, stock traders are happy, investors are happy too.
Mutual Fund design
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This is very important. A *president MF* should be created which is purely based on opensource algorithm downloadable on github/gitlab. The same MF can be offered by any AMC but they should adhere to the name of the MF and algorithm of the MF. Here is a high level algorithm for the same
- select top 1008 companies by market cap
- every day the same list will be sorted in a descending order of PE, meaning lowerst PE stock will be on top, highest PE will be at the bottom.
- everyday all the money will be invested on the top 108 stocks in this descending list.
- no money is held back or saved to be invested later, algorithm does all the investment if there is money in this NAV.
- In fact freed temples entire wealth can put in such MF, with an SWP of 1% per month (12% per year) under the condition that all this withdrawn money is spent and yearly independent audit is done by listed companies or CAG. Now govt is keeping the money from the temple for the country but the temple is using it too. Have your cake and eat it too.
This will also discourage any stock/company from artificially inflating their stock since they will not get a huge chunk of investment because their PE is inflated with circular investment.