Category: Investment

Being in the investment industry may give you experience, but there is always that fear inside each of us. Fear can have a significant impact on how you make decisions related to your finances. Whether you want to invest in real estate, buy stocks form a company, or try trading cryptocurrency, fear can influence your ability to make decisions.

Though this can prevent you from pursuing what you want, a certain degree of fear can keep you focused and make you more alert. This means that fear is not necessarily a bad thing. Fear can be divided into two types, namely F.O.N.G.O and F.O.M.O. Even though these forms of fear can have an impact on your finances, it is possible to use them to your advantage.

During investing, you may panic every time you think that you may miss out on a great opportunity. The thought of other people grabbing the opportunity before you do can cause panic. Since the market keeps on changing, investors are on always alert since they don’t want to be left behind. Though this fear heightens your senses, acting on your motion can prevent you from making the right decision.

Risk is part of investing, and it is through taking risks that investors gain rewards. You should, however, try to evaluate your risk tolerance and determine how much risk you are comfortable with. Know what you can afford to lose from the investment and avoid going beyond your limits.

As you invest, you need to come up with a budget to avoid making losses. A budget should guide you in making the right investment decisions. You should also develop a clear investment strategy and set goals. Know if you are investing for short term or long term purposes. This fear makes you follow others blindly while making decisions based on emotional impulses. Instead of taking such actions, you should come up with a plan and make informed decisions based on your investment goals.

Do you fear getting trapped in a particular financial situation during investing? Changes in the market can cause this form of fear. Many investors panic from the thought of losing. Though this form of fear can spread fast, you should not let it affect you. Keep on reminding yourself of your goals in investing and try to assess the situation at hand using logic and not on emotions.

Instead of making hasty decisions during market cycles, try to focus on your long term plans. Since market cycles can last for a few hours, days, or even months, try not to make decisions without looking at the bigger picture. Acknowledge your fear as you review your strategy to ensure that you are still on the right track.

There has been a considerable thinking about FDI by central government since it came into power in 2014. The country which has adopted many revolutionary economic changes like GST was not considered as an “ease of business doing country” in many surveys. But, on January 10, 2018, the Union Cabinet approved certain key amendments to the Consolidated FDI Policy Circular of 2017. The amendments aim to further liberalize and simplify the FDI Policy to create a more foreign investor-friendly atmosphere and, in turn, attract more foreign direct investment in the country.

This amendment marks another step in a series of steps already taken by the government in this regard, including the recent amendments to the regime governing the transfer and issue of securities held by non-residents2 and the notification of the new rules consolidating the filing and reporting requirements under the Foreign Exchange Management Act, 1999.3.

Before FDI policy, foreign investment in entities undertaking single brand product retail trading (“SBRT”) was allowed up to 100%, with up to 49% being allowed under the automatic route and prior Government approval being required beyond 51%. The amended FDI Policy now permits up to 100% FDI in SBRT through the automatic route. The companies no longer need to consult government for investment. Further, the local sourcing requirement with respect to SBRT has been eased. As a result of the amendment, an entity undertaking SBRT does not need to meet the 30% local sourcing requirement through its Indian units for the first five years, if the requirement is met through sourcing from India for its global operations, either directly or through its group companies.

After completion of the 5-year grace period, the SBRT entity shall be required to meet the 30% sourcing norms directly towards its Indian operation, on an annual basis. Another milestone happened in amended FDI policy was the removal of prohibition on foreign airlines to invest in Air India. Under the FDI Policy, foreign airlines were allowed to invest under the government approval route in Indian companies (except in relation to Air India Limited (“Air India”)), operating scheduled and non-scheduled air transport services, up to a limit of 49% under the government approval route in Air India. This is subject to the condition that foreign investment in Air India shall not exceed 49%, directly or indirectly, and substantial ownership and effective control shall continue to be vested in Indian nationals. This can be seen as a new birth of Air India which has a debt of 50000 crore rupees.

Under the FDI Policy, no foreign players were allowed to real estate business. The amended FDI policy has clarified that a real estate broking service does not amount to a real estate business and therefore, is eligible for 100% FDI under the automatic route. This may pave way to a significant change in real estate industry as multiple bulging eyes were looking to enter this untouched industry.

The FDI Policy allows 49% FDI under the automatic route in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010. However, foreign institutional investors (“FIIs”) and foreign portfolio investors (“FPIs”) could invest only by way of secondary market transactions or subsequent purchases. The amended FDI Policy uplifted the regulation from CERM, thereby allowing FIIs and FPIs to also invest through primary markets or subscriptions, subject to sectoral limits. Conversion of external commercial borrowings, lump sum fee and royalty into equity Pursuant to the FDI Policy, the issue of equity shares against non-cash consideration was permitted only under the government approval route. Now, under the amended FDI Policy, the issue of equity shares against non-cash consideration, such as preincorporation expenses and the import of machinery shall be permitted under the automatic route in case of sectors falling under the automatic route.

FDI in an Indian company engaged only in the activity of investing in the capital of other Indian companies (regardless of its ownership or control)

The FDI policy allowed FDI up to 100%, with prior government approval, in companies engaged only in the activity of investing in the capital of other Indian companies or limited liability partnerships (“LLPs”), and in core investing companies.

To bring the conditions governing these sectors in line with “other financial services”, it has now been decided that if any financial sector regulator regulates the activities of such companies, FDI up to 100% shall be allowed under the automatic route. However, if they are not regulated by any financial sector regulator, or where only a part of their activities is regulated, or where there is doubt regarding regulatory oversight, FDI up to 100% will be allowed under the government approval route, subject to conditions including a minimum capitalization requirement, as may be decided by the government.

Pursuant to the FDI Policy, medical devices were defined in the Drugs and Cosmetics Act, 1940. It has now been decided that the definition medical devices shall no longer be subject to the Drugs and Cosmetics Act, 1940. A revised definition of medical devices is also proposed to be introduced in the amended FDI Policy and foreign companies can be invest in drugs and pharmaceuticals.

The FDI policy has been amended to stipulate joint audits in investee companies (receiving foreign investments) in situations where the foreign investor wishes to specify a particular auditor/audit firm having international network for the Indian investee company. One of the auditors should not be part of the same network, according to the amended FDI policy.

Prior to this change, the FDI policy did not have any provisions in respect of specification of auditors that can be appointed by the Indian investee companies receiving foreign investments.

Under the earlier FDI policy, global defence company was having 49% FDI limit while Indian partner holding remaining stake in the joint venture. The decision to allow 100 % FDI in defence marks a major push to defence manufacturing under Make in India initiative. The deals above 49%, under amended FDI policy deals not involving state of art technology can also opt the route. Government has been aggressively pushing global defence companies, due to prolonged scams and huge cots incurring, to setup companies in India. In the past, government has stated that relaxation above 49% can be given on a case by case basis through Foreign Investment Promotion Board (FIPB) for state of the art technology and depending on the extent of technology transfer. Opening up of 100% defence to FDI is still a debatable topic.

Globalisation has led to a considerable growth of the economic importance of knowledge. Knowledge is a resource which has become a decisive factor in economy and developmental policy. The generation and propagation of knowledge holds a key position for economic and cultural development in industrialized as well as in developing countries. There is growing demand for academically trained experts in such knowledge driven economics and societies. As a result therefore, education has emerged as an industry and investment in education is considered as the much lucrative business. Realizing this importance, government of India has made educational planning a constituent of the total planning process. It has even made handsome allocations for this purpose. the first five year plan (1951-56) made an allocation of Rs. 169 cores of the total plan outlay towards education. The allocation was an allocation of Rs. 169 cores of the total plan outlay towards education. The allocation was stepped up substantially during the third five year plan to Rs. 589 crores and in the sixth five year plan it had increased to 2,524 crores. In the eleventh FYP (2007-12), central government envisages an outlay of about Rs. 2.70 lakh crore at current price (Rs. 2.37 lakh crore) for education. This reflects the high priority being given to the education sector by the central government and represents a creditable progress towards raising the public spending of the centre and the states combined to 6% of GDP. But the question arises.

Goods and services are divided into two categories: those from which consumers derive immediate benefit called consumption, those which are used in production to produce after a long term called investment.

Education is both consumption as well as an investment. As a consumption, it accounts for national development. Sometimes it is regarded as consumption in so far as it is desired for its own sake or in the sense that it is considered to be rewarding and intellectually stimulating in itself. The consumption aspect has also been treated by analyzing the amount spent per head of population, or per student. As an investment its returns are compounded in the form of developed personalities, thought, behavior and resourceful citizens in the society. Education is 100% investment with huge returns and massive growth in human resources. Education yields knowledge, job, money and happiness and the most wanted peace. It is permanent property which can’t be stolen and is always productive. Education can be passed over the next generation, making them knowledgeable, disciplined and a perfect human being and thus it is an investment and not an expense.

In the words of Ellea Kyleal, ‘No investment is more productive than in education and training.’ Three factors are responsible for considering educations as an investment as mentioned below:

At one time education was considered an instrument only for promoting individual’s self-improvement and his social relations. The thinking of ‘education for education sake’ is fast changing. In the present age of maximizing the application of science and technology it has been increasingly realized that one needs to be educated not only to become a better man and a better social being, but he should also be a better creative and productive being In the words of Arn Rand, ‘The only purpose of education is to teach a student how to live his life by developing his mind and equipping him to deal with reality. The training he needs is theoretical, i.e. conceptual. He has to be taught to think, to understand, to integrate, to prove. He has to be taught the essentials of the knowledge discovered in the past and he has to be equipped to acquire further knowledge by his own effort. This is education’s economic role.

An important motivation for individuals to invest in education is that the acquired knowledge and skills tend to raise their productivity and hence earning potential. Education appears to provide not only and initial earning advantage but also a wage premium that increases with time spent in the labour market. Education is not only productive of economic welfare but also has psychic and moral value and is necessary for cultural satisfaction. S. Kuznets says, ‘capital formation; should be broadened to include investment in health, education and training of the population itself, that the population itself, that is investment in human being.’ Dr. Ellea Kyleal avers, ‘From the stand-point of economic development three factors are of basic importance: natural resources, physical capital and human resources.

A Positive correlation between educational system and per capita income is therefore, irrefutable. A large number of studies have conclusively proved that by fat the major factor in economic growth is not natural resources, physical capital and human resources but the residual factors life organization, inventiveness and education. Better organizational skill and sharp inventiveness are the direct results of education.

In a way education is considered as an industry, which absorbs material and human resources. The education industry consists of schools, colleges, universities and various private institutions. The ‘inputs’ are teachers; buildings etc. and ‘outputs’ are students. It not only serves to diffuse the existing stock of knowledge but also acts to increase that stock of human capabilities. There are several modes of acquiring human capabilities, such as education and training.

This includes primary and secondary education. Primary or elementary is the first years of formal education generally beginning when children are four to seven years of age. Primary education aims to provide literacy and numeracy skills, and foundations in other subjects. Secondary education follows after this.

This includes students following tertiary education abroad or people purchasing online distance learning from abroad, and can be distinguished from tertiary education provided domestically.

Studies have proved that average income figures of persons who have more education are higher than the persons who have less education. Education enables people purchase it (or participate in it) to derive a future stream of benefits, whether in sense of income benefits from jobs that they may acquire by virtue of their education or whether in sense that society, by providing education, enables educated members of the labour force to add to society’s output of goods and services in the future.

A nation’s level of output is greatly influenced by its policies concerning the education of its people. Educational policy explains most of a country’s GNP per capita and high proportion of country’s economic growth rate.

Education promotes technical change in various ways ranging from the undertaking of research to adding up the existing knowledge, values, skills and attitudes of the work force.

Education leads to faster economic growth and also plays a role in reducing proverty. The relationship between economic growth and education was also addressed by Adam Smith and Alfred Marshall, two important figures for the economics profession. They pointed out that how investments in ‘education’ influences the ‘wealth of nations’.

Literacy is not education, for literacy to become education there must be adequate and proper utilization of literacy so that it can contribute to economic development. Investment in education has led to develop will of the people to gear literacy for the promotion of economic development.

In the process of economic development, the labour force is equipped with the necessary technical skills for modern industrial production with help of education. Thus education increases in the chances of gainful employment by providing requisite skills for sophisticated occupations.

After decades of high growth, the population growth rate in our country has stated declining. During the decade of 70’s the growth rate of population had reached a peak of 2 percent perannum which has declined to 1.50 percent during the period of 2006-2011 due to spread of education.

In educated societies, the families are planned, people manage their resources through savings, contributes the social and national welfare through bringing change in their attitude and by shedding orthodoxy, superstitions and narrow outlook.

Education creates awakened mind, through right knowledge, appropriate skills and desirable attitudes. It is through education that the constructive urges of man are aroused. Thus, education creates awareness for rights and duties to make an individual an enlightened citizen.

Education brings about a change in the individual, promoting greater productivity, modern attitudes, values and beliefs, about work and quality of life, thus, improving their standard of living.

Education is not only considered as an instrument for promoting individual’s self-improvement and his social relations but, education is also considered as human capital and industry as both investment as well as consumption. As consumption, it accounts for national development and as an investment education returns are compounded in from of developed personalities, thought and behavior of citizens in the society.

This paper investigates the background regarding the factors which drives the investors for planning and taking investment decisions. The main idea of this paper is to develop proposed model towards investment decisions and its future implications. The research is based on searching keywords in database in Google Scholar and Emerald on the basis of number of publications and times cited in the respective field to measure the contributions of active researchers. The papers reviewed are mostly empirical or theoretical in nature with limited number of papers in review category, which are required to assist researchers and professionals. The proposed model used for analysis purpose is based on literatures so far reviewed and has some limitations to justify every factor and variables. Research related to factors which have association with varying time like time varying aggregate risk is to be analysed .Through the proposed model it is found that there is huge scope of research taking factors like attitude, personality, and perception as variables in the region like South-East Asian Countries.

Behavioural Finance and study of investor’s psychology has focused on the rationality of their investment planning and decisions. It was Oscar Wilde who described a cynic as one who “knows value of nothing but price of everything’1. Considering some equity research analysts and many researchers having ‘bigger fool’ theory of investing, which highlights that the value of asset is irrelevant as long as there are “bigger fools” to buy the asset. While this may provide basis to make some profit as there are some other theory which disingenuous enough to argue that the value is in the eyes of beholder and any price can be justified as long as there are other investors willing to pay that price2. There are many assets for which perception may be all that matter like painting or a sculpture, but a rational investor does not buy most of the assets for aesthetic or emotional purpose but financial assets are acquired for the expected cashflows from the investment.

Modern finance assumes that markets are efficient and that agents know the probability distribution of future market risk3,4,5. Behavioural finance models are usually developed to explain investor behaviour or market inefficiency when rational models provide no sufficient explanation6. Behavioural aspects and psychology often affects the investor’s decisions which are evident from irrational decisions under the influence of overreaction, under-reaction, overconfidence, group behaviour etc7.

In recent years, many researchers in the area of finance and investment have been very active in behavioural finance, and many of their research works have been accepted in the top journals in the field of financial economics8. This shows that behavioural finance is becoming an increasingly significant area for research.

This synopsis begins the review of past and recent studies to explore the relationship of psychological factors influencing the investment decision makings with the returns through investments. The findings through literature of the study are then presented and discussed to identify any gaps. The synopsis concludes with a summary of the main area of research, their implications and future scope of research, as well as a consideration of the limitations of the study if any.

Behavioural Finance is one of the dynamic and fully developed fields which have its own principle and methodology9. Behavioural finance came in existence due to limitations of traditional theories and finance to support the investment and saving decisions10. While traditional finance formulates the investment strategy whereas behavioural finance focuses on the decision process of its execution11. Many of the key variables in behavioural models are neither observable nor measurable directly to researchers analysing data, thus most of the empirical studies in the field of behavioural finance adopt proxies in attempt to capture or measure the effect of such variables12.

Considering the limitations of modern finance regarding justification of investment strategies being followed by investors under different scenario, behavioural finance models are usually developed to explain investor behaviour or market inefficiency when rational models provide no sufficient explanation. Behavioural aspects and psychology often affects the investor’s decisions, which are evident from irrational decisions under the influence of attitude, overreaction, under-reaction, fear, overconfidence, group behaviour etc13.

Behavioural finance is one of the significant areas of research as many of the papers are new and emerging in nature and have limited review papers. With consolidation of financial market across the world the importance of behavioural finance is attracting many scholars and researchers. According to analysis during the period 1995 to 2013, in this period of 20 years, the study in the area of behavioural finance was in 124 journals and 347 articles in which 650 authors were involved14. Participation in this field is limited to from USA, Germany, Spain, England, China Israel, Australia, but there are limited scholars from south East Asia economy like India.

Factors like anxiety, interests in financial issues, decision styles, need for precautionary savings, and spending tendency as self stated attitudes and behaviours for a range of daily financial affairs15. Fund managers and financial institutions have to have in-depth study of the customers to retain them in this competitive world16.

Functioning of financial markets found to be strongly correlated with the financial behaviour of individuals which have been traditionally in experimentation phase with economics and psychology which motivates for empirical analysis and study17. To study behavioural finance Basic tools used for experiment includes direct observations, controlling variables; manipulate variables as per theoretical requirements18. In two companion review papers which highlighted the key strength of experimentation method, which provides its importance for its suitability to study behavioural finance19. This method provides flexibility to researchers to use proxy variables which is not measurable or observable directly and thus provides an important weapon to manipulate the variables as per requirement.

Major analysis of these researches are focused in countries like Japan, United States, France, United Kingdom, Switzerland etc where factors like wage income per worker, S&P composite returns, comparison of nominal investment and planned investment, retail investor portfolio, impact of diversification and the effect of behavioural factors on investment strategies are broadly covered in the papers reviewed.

It is expected that the proposed work will provide the impact of psychological factors which will attempt to explain the biases and inefficiencies present in the financial market. The proposed work plan would lead to development of investor’s psychological model which will help to identify those key factors which influence investment decisions considering the role of moderating variables like gender, age and marital status of investor.

The validation of this theoretical model with practical observations will be useful for the researchers, fund managers as well as for investors for taking informed decisions as well as scope for further study.

The findings of the work plan will help an individual to invest in those avenues and financial instruments which comfort their psychological behaviour with respect to their risk appetite to increase their investment returns.

These findings will help financial product managers/agents to reformulate their product as per the psychology of an individual, considering active or passive investment thus better investment strategies and management.

The companies can evaluate the performance of their financial product by using the outcome of the proposed model and can strategise towards continuations/ discontinuation and improvisations which will help them to enhance the marketability of their product.

Importance of the topic of the course work. Uzbekistan has carefully transitioned from a centrally planned to a market economy since gaining independence in 1991. Understanding that foreign direct investment can help Uzbekistan grow and evolve while also removing the country’s change to a market-based economy and integration into the global economy, the country has welcomed foreign investors. Foreign direct investment boosts fixed capital formation and has a positive impact on the balance of payments because it represents an inflow of foreign capital. Investors have shown a keen interest in Uzbekistan’s manufacturing sector, with the hope of increasing the quality of these facilities. Above all, an FDI kit brings together science, technological, and managerial skills. Quite significantly, an FDI brings science, technological, and organizational skills to Uzbekistan, which are crucial for the country’s industrial transformation.

Uzbekistan has demonstrated stable economic development in recent years, reporting 6.6% GDP growth in 2020. The government of the country is continuing to introduce large-scale economic reform policies aimed at boosting development by modernizing state-owned monopolies and establishing a favorable environment for private and foreign direct investment.

In November 2019, President Shavkat Mirziyoyev created the Council of Foreign Investors, a body where executives and representatives of foreign companies, banks, investment companies, international financial institutions and foreign government financial organizations will be given the opportunity to improve the investment climate. And in speech of president of the Republic of Uzbekistan which addressed to the Oliy Majlis Shavkat Mirziyoyev admit that “Investment inflow has considerably grown. Foreign direct investments amounted to 4.2 billion US dollars, which is $ 3.1 billion or 3.7 times as much as in 2018. The share of investments in gross domestic product reached 37 percent. For the first time, Uzbekistan received an international credit rating and successfully placed $ 1 billion worth of bonds on the global financial market. For the first time in 10 years, our country’s position in the credit risk rating of the Organization for Economic Cooperation and Development has improved”.

The purpose of the course work topic. Study the structure, goals and objectives of regional and international financial institutions, theoretical and practical analysis of some of their financial activities and make important proposals and conclusions to raise the investment climate in Uzbekistan to a new level.

Uzbekistan has the potential of becoming one of the strongest economies in the post-Soviet region, with a population of over 34 million people – the largest in Central Asia – rich natural resource reserves, and considerably well-developed infrastructure. During the reporting period, policy priorities centered on increasing Uzbekistan’s investment attractiveness, including the introduction of a new currency regulation law to ensure the freedom of existing cross-border and capital movement transactions; a new law on investment activities to protect foreign investors’ rights; and a new tax code with lower and more fair tax rates and reporting criteria have been improved.

Above we talk about investment policy but at first we should know what is it. Investment policy- it is an integral part of the financial policy of the state, which is a set of methods and measures to attract, distribution and effective use of domestic and foreign investment resources.

Investment policy — a set of interrelated measures to ensure the required level and structure of investments in the economy of the Republic of Uzbekistan and its individual sectors, increase investment activity of investment entities aimed at finding sources of investments and identifying priority sectors for their use.

The purpose of the state investment policy – the implementation of structural reforms in the economy, GDP growth, higher living standards and welfare of the population through the mobilization and effective use of investments.

The main areas of investment policy of the Republic of Uzbekistan are:

• Creating and improving the regulatory framework of investment activities in Uzbekistan;

• Implementation of centralized investment for structural reforms in the country and growth of industrial production;

• Creating a favorable investment climate to attract foreign investment;

• Promote the investment activity of local people and businesses;

• Monitoring the protection of investors’ rights and fulfill their obligations, the improvement of the public administration which carry out the functions of regulation and control.

In the legislative area Oliy Majlis (Parliament), the Senate, the Cabinet of Ministers, the President, the Ministry of Justice Investment climate and the relationship between the participants of the investment activities Laws and regulations

In the financial and economic sphere The Ministry of Finance, The Ministry of Economy, MFER, line ministries and agencies, judicial authorities Investment market, bond market Safety measures and penalties

In the field of functional Central Bank and commercial banks, STC, Uzstandard, Patent Office, the Ministry of Foreign Affairs, insurance companies Monetary market, execution of tax, customs, insurance law Requirements, norms, procedures, established by the legislation, standards, guidelines

As can be seen on Table 1, the main purpose of investment policy is to improve the investment climate in the country, the development of the investment market and other components of the overall financial sector – banking, insurance, foreign exchange and money market.

Reforms in Uzbekistan during the three last years, such as liberalising the foreign currency market and establishing seven special economic zones with tax breaks for investors, has made the country a more appealing destination for international . According to the UNCTAD’s 2020 World Investment Report, FDI inflows increased significantly in 2019 to USD 2,3 billion, compared to USD 625 million in 2018. Total FDI stock stood at USD 9.5 billion in 2019. FDI traditionally arrives from Russia, South Korea, China and Germany, but Canada recently increased its financial presence. Investments focus on the energy sector, including alternativerenewable energy in recent years.

Uzbekistan ranked 69th in the World Bank 2020 Doing Business, same as the previous year. The country is one of the best-performing economies in three or more Doing Business surveys. As part of the president’s large-scale privatisation programme, the government hopes to encourage FDI, especially in specific industries such as banking, electricity, oil and gas, manufacturing, telecommunications, transportation, and agriculture. Uzbekistan is a landlocked country with abundant natural resources and a strategic location between China and Europe. Attracting private investment and developing funding mechanisms are critical components of the structural transformation. The percentage of overall investments funded by bank loans and other lending increased from 3,1 percent in 2000 to 13,3 percent in 2017. However, a high degree of government presence in the economy, bureaucracy, problems in the tax and customs spheres, and the banking system stifle domestic investment growth and foreign capital attraction.

The policy of liberalization reforms, initiated by the government in 2016, is paying off: the total volume of foreign direct investment attracted to Uzbekistan has grown from about $1.6 billion in 2018 to $4.2 billion in 2019. Uzbekistan was named as one of the top 20 “global improvers” in the World Bank’s 2020 Doing Business report, and the 2019 Country of the Year award winner by The Economist magazine.

According to Uzbekistan’s official statistics, the total volume of capital investments exceeded $21.5 billion in 2019. Financing sources included $4.2 billion FDIs and $5.6 billion as foreign loans. Major industries include mining, oil, and gas extractives, electricity generation, construction, agriculture, textiles, transportation, metallurgy, non-metalnon-mineral production, and chemical production.

Moreover, private companies have raised concerns about local authority growth plans that do not comply with newly enacted regulations on private property rights. Expropriation of small businesses’ property in favor of well-connected corporations or construction projects backed by state or local governments has been confirmed. The implementation of laws securing intellectual property rights is also missing.

The Government of Uzbekistan (“the government” or “the GOU”) has declared attracting foreign direct investments to be one of its top policy priorities, recognizing that increased private sector participation is essential for economic growth and highlighting social challenges caused by significantly higher unemployment and poverty rates. To entice more foreign investors, the government simplified entry visa procedures and widened foreigners’ residence permits. The new Tax Code, which went into effect on January 1, 2020, reduced corporate and individual income taxes by nearly half and significantly simplified taxation procedures for private businesses. President Mirziyoyev challenged all regional governments to make their territories more appealing to foreign investors and to provide quarterly FDI progress reports. He also established the Supreme Economic Council, which he proposed as a device for further economic reforms to be coordinated with multinational companies, specialist communities, and development banks. The government has yet to resolve a range of fundamental issues that companies and investors face, including state-owned monopolies’ dominance in key sectors of the economy, a lack of accountability in public procurements, a weak track record implementing public-private contracts, an underdeveloped and overregulated banking sector, and insufficient protection of private property rights.

According to the World Bank, between 1991 and 2016, fixed capital investment accounted for 29.38% of GDP in middle-income countries, 41.44% in China, 32.31% in India, 33.14% in South Korea, and 29.28% in Singapore. Malaysia accounted for 28.25 percent, Turkey for 25.55 percent, and Kazakhstan for 25.40 percent2. Given that this figure is 23.89% in our country, it is necessary to radically improve the investment climate and attract more investment.

It is important to accelerate the investment process in the economy, modernize the leading sectors of the economy and enterprises, and expand the use of banking services to ensure innovative development and increase investment lending. First of all, it should be noted that the share of private sector funds in investment financing is growing rapidly, and it would be appropriate to further expand the use of banking and financial market opportunities. The share of bank loans and other borrowings in total investment financing increased from 2.1% in 2000 to 3.1% in 2005, and by the end of 2019 to 13.3%. This indicator is an important positive trend in the rapidly changing environment of international financial markets.

Investment financing is primarily related to the ability of enterprises to obtain loans. In particular, the volume of credit investments in the real sector of the economy increased by 25.1% in 2016 and amounted to 53.4 trillion soums at the beginning of 2017 soums. 80% of these loans were long-term loans for investment purposes. Investment in fixed capital was increased to 91.8% in 2020. This is also a good change which effect to the economy.

“The last thing that should happen is funding cuts for education; it should be increased. We need to put more money towards education, and anything else is abusive” (Flea). This extract is one of the numerous heavily backed-up intellections about why financing schools needs to be a priority. The topic of school finance is a critical issue, the benefits of funneling greater capital from state governments to schools should be taken into serious consideration. With excess money transferred from state governments, it’s possible to have teachers paid more, fund a better learning environment, and even provide capital for low-income students. The main idea is that the outcome of the financial backing of schools will inevitably have tremendous positive impacts on how the education system is perceived.

The environment is a major factor in shaping a student as they evolve. Improving the environment students are around can yield great benefits. Financing can be used to hire more teachers leading to a lesser amount of students in a class. Class sizes should be reduced so teachers can focus their learning energy on a smaller target, benefits can include increased participation, individual attention, and increased communication between teachers and students. Funds can also go towards facilities that will ensure the solid health and safety of staff and students. The positive environment around students will create a prosperous impact. If students are around a school environment daily, it should be one that can have an impact on their learning experience in a great way, a great classroom can inspire a love for learning. One may argue that trying to manipulate students with a modified environment would be ineffective since kids may not care about their surroundings while learning, and it would be impractical to invest in such a huge factor in schools. While this may be a valid idea in an uneducated mind, studies prove that the environment people are in has a major impact on their well-being depending on various factors in their environment. Google implements an environment that motivates and empowers its workers. From spacious facilities to modern fun rooms, these types of qualities contribute to an efficacious classroom. Irrefutable evidence proves the environment people are in has massive impacts on energy that is given off in turn leading to more satisfactory surroundings.

Not only can funding environments positively influence students, but also affect teachers as well. The fact is that teachers are underpaid, the American education system simply undervalues their craft. There have been many times when teachers have gone on strike to protest these low unsatisfactory wages. It is obvious that teachers are unhappy with their pay. In the grand scheme of things, teachers play an immense role in a student’s life. An incredible amount of youth years are spent at schools where teachers help build students’ futures. Schools and students depend on teachers, they are the ones who will guide students to start their base for the future. With such an important role, one would expect that they would get paid greatly. Compared to other jobs like medical-related ones, you may assume that they are paid more since they have spent years studying to save lives, but teachers have long-term effects on lives. To put it into another perspective, both professions are being asked to take liability for the breakdown of society in several aspects. Teachers help students grow and thrive. Teachers put in so much effort for their students. They stay after school to help students, come to school early, and sacrifice so much just to make sure students have the best opportunities they can provide to students. Another opposing argument may be that anyone could be a teacher, but as school teachers have years of training, they will be more effective ones. Due to these extra hours and effort put in, they deserve to be paid more. Extra financing would satisfy teachers and even motivate them to always be at their best. These teachers hold the future of the nation in their hands. It would be wise to invest in people who will help these students grow.

It is possible to prepare students, but are all students given the same opportunity to learn as other students? Not all students have access to money for school-related items or activities. This limitation can constrain their capabilities in the learning environment. Money needs to be set aside for students from low-income families who are struggling. Helping students beat poverty will allow them to focus more of their energy on school. It also takes off some of the worries of financial anxiety. This money can help students who can not afford the school necessities. For example, cash can help with paying for tests, food, and even activities. This money will open up more opportunities for those in low-income families. Some may argue that schools should use this money on other aspects or even equal financial help to all students no matter their background. It should be noted that schools should be fair and not give one side an unfair advantage over another. No one should be discouraged because of their financial background. Instead, students should be motivated to excel in school no matter their background, but financial aid will take the stress out of financial struggles. Low-income students often suffer in school from their situation, sometimes it’s not even their fault, and they have no other choice but to suffer in silence. By financing these students, we can help close the success gap between students. Now that the economy is more stable than it used to be, it is time to get financing for the schooling of our country.

As some students barely get by, schools can also be in the same situation, financing schools would benefit the youth who need proper nourishment to mature into adults ready for the future. Backing schools can result in an inspirational environment for students to thrive in. It can result in teachers being satisfied and motivated to help students grow, the future of the country rests in teachers’ hands, and they should be valued for their dedication. Financing will also contribute to helping beat school poverty, which will provide the necessary resources for success. Federal money is the main way to help schools to gain capital. Gaining the attention of state governments which have the authority over financing of schools is crucial if change is going to occur. Campaigns will be made to call out our state governments to advocate for greater school funds. They will include how we will set aside this money and what benefits it would produce. School is a place to cultivate a base for the future. If so much effort and time are contributed to schools, it should be a priority that schools are highly regarded financially.

Introduction

In today’s fast-paced world, personal investment has become an essential aspect of individuals’ financial well-being and long-term stability. It is a journey that goes beyond simply saving money and delves into the realm of making informed financial decisions and taking calculated risks. Join me on a narrative exploration of personal investment as we navigate through the ups and downs, the triumphs and setbacks, and the ultimate empowerment that comes from taking control of our financial future.

The Seed of Curiosity

Every personal investment journey begins with a spark of curiosity—a desire to understand the intricacies of financial markets, wealth creation, and long-term financial planning. It was during my college years when this seed was planted. I devoured books, attended seminars, and engaged in conversations with financial experts to expand my knowledge and gain a deeper understanding of personal finance.

Setting Goals and Building Foundations

Armed with newfound knowledge, I embarked on the crucial step of setting clear financial goals. Whether it was saving for a dream home, funding my children’s education, or retiring comfortably, each goal represented a milestone in my personal investment journey. I also laid the foundation for financial success by creating a budget, managing debt, and establishing an emergency fund. These steps provided a solid framework upon which I could build my investment portfolio.

Diving into the Market

With goals in place and a solid foundation established, it was time to venture into the world of investments. This chapter was marked by a mixture of excitement and caution as I carefully researched different investment options. From stocks and bonds to mutual funds and real estate, I explored the various avenues available to grow my wealth. I learned the importance of diversification and the need to balance risk and reward.

The Lessons of Risk and Resilience

No personal investment journey is without its share of setbacks and challenges. This chapter was a period of learning through experience. I faced market fluctuations, unexpected economic downturns, and investment decisions that didn’t pan out as expected. However, these experiences taught me resilience and the importance of staying committed to my long-term goals. I learned to embrace setbacks as valuable lessons and to make adjustments along the way.

Seeking Guidance and Continuous Learning

Throughout my personal investment journey, I recognized the importance of seeking guidance from financial advisors and experts. Their insights and expertise helped me navigate complex investment strategies and make well-informed decisions. I also realized the significance of continuous learning in the ever-evolving world of finance. I stayed updated on market trends, read financial news, and attended seminars and workshops to sharpen my skills and stay ahead of the curve.

Empowerment and Financial Freedom

As the chapters of my personal investment journey unfolded, I witnessed the transformational power of taking control of my financial future. Through diligence, discipline, and calculated risks, I began to see my wealth grow. The achievement of my financial goals brought a sense of empowerment and freedom. I was able to make choices and pursue opportunities that aligned with my values and aspirations. Personal investment became a catalyst for shaping the life I desired.

Conclusion

The narrative of personal investment is not only about numbers and financial gains; it is a journey of self-discovery, resilience, and empowerment. It requires curiosity, goal-setting, risk-taking, continuous learning, and seeking guidance along the way. Through the trials and triumphs of my own personal investment journey, I have come to appreciate the transformative impact it can have on one’s life. It is a powerful tool that allows individuals to shape their financial destinies, embrace opportunities, and achieve a sense of security and freedom.

Introduction:

Investment planning is a crucial aspect of securing financial stability and achieving long-term goals. However, the complexity of tax concerns often adds layers of confusion and uncertainty, making investment decisions challenging for individuals. This persuasive essay aims to highlight the significance of simplifying investment planning by addressing tax concerns. By advocating for clearer tax regulations and promoting accessible resources, we can empower individuals to make informed investment decisions and maximize their financial outcomes.

Body:

Complexity Creates Barriers:

The intricate nature of tax regulations and their impact on investments creates barriers for individuals seeking to plan their finances effectively. The myriad of rules, deductions, exemptions, and rates can overwhelm even the most financially literate individuals. The complexity of tax concerns often deters people from engaging in investment planning, limiting their potential for financial growth.

Impact on Investment Performance:

Tax considerations significantly influence investment performance. The lack of clarity and complicated tax laws make it difficult for investors to assess the tax implications of their investment decisions accurately. This uncertainty can lead to suboptimal investment strategies, resulting in missed opportunities and potential losses. Simplifying tax concerns in investment planning will enhance transparency and enable investors to make informed decisions aligned with their financial goals.

Compliance Challenges for Individuals:

The burden of complying with intricate tax laws falls heavily on individuals. Navigating complex tax codes requires time, resources, and expertise, often necessitating the assistance of professionals. This creates an additional financial strain for individuals who may not have the means to seek professional advice. Simplifying tax concerns will reduce the compliance burden, enabling individuals to take control of their investment planning without excessive reliance on external assistance.

Encouraging Economic Growth and Participation:

Simplifying investment planning by addressing tax concerns has broader implications for the economy. When individuals feel empowered to make sound investment decisions, they are more likely to participate in financial markets. Increased participation not only stimulates economic growth but also fosters a culture of financial responsibility and independence. By removing barriers and simplifying tax concerns, we can promote broader participation and contribute to a more vibrant and inclusive economy.

Promoting Financial Literacy:

Simplifying tax concerns in investment planning is an opportunity to promote financial literacy. By providing clearer guidelines and educational resources, individuals can enhance their understanding of tax implications and make informed investment decisions. Accessible information and educational programs will empower individuals to navigate investment planning with confidence, ensuring better financial outcomes for themselves and their families.

Enhancing Investor Confidence:

Investor confidence is crucial for the stability and growth of financial markets. Complex tax concerns can undermine this confidence, leading to hesitation and skepticism among potential investors. Simplifying tax regulations and providing greater clarity will foster trust and confidence in the investment landscape. As individuals feel more comfortable navigating tax concerns, they will be more likely to engage in investment planning, contributing to a healthier and more robust economy.

Conclusion:

The complexity of tax concerns hampers investment planning and restricts individuals’ ability to achieve financial stability and growth. By simplifying tax regulations and providing accessible resources, we can empower individuals to make informed investment decisions. Clearer guidelines, educational programs, and reduced compliance burdens will not only simplify investment planning but also promote financial literacy and enhance investor confidence. Addressing tax concerns is a necessary step towards creating a more inclusive and accessible investment landscape, ensuring that individuals can maximize their financial potential and secure a prosperous future.

As advocates for simplifying investment planning, we must push for legislative reforms, promote financial education, and encourage transparent communication between tax authorities and individuals. By working together, we can remove the complexities surrounding tax concerns and enable individuals to navigate investment planning with confidence, leading to a stronger and more equitable financial future for all.