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  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
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Who are called Micro, Small and Medium Enterprises?

Who are called Micro, Small and Medium Enterprises?

 


The Micro, Small and Medium Enterprises (MSMEs) sector has emerged as a highly prompt and dynamic sector in the Indian economy in the last five decades since India's independence. MSMEs saved India's economy from falling into recession during the economic downturn. In the true sense, this sector is playing a backbone role for the country's economy.

 

The Micro, Small and Medium Enterprises Development Bill - 2005 (it was presented on the Table of Parliament on 12 May 2005) has been approved by the President of India and thus an Act was enacted. The Act has been designated as Micro Small and Medium Enterprises Development Act 2006. Let us know who will be called micro, small and medium enterprises according to this act?

 

New Definition of Micro, Small and Medium Enterprises (MSMEs) Development Act-2006;

The definition of these new MSMEs is in force from April 7, 2018, which was finalized in the Cabinet Committee meeting chaired by the Prime Minister. After this change, now the MSMEs will be categorized on the basis of "Turnover" instead of investment in the earlier "Plant and Machinery".

 

Old Definition of Micro, Small and Medium Enterprises, 2018

Manufacturing MSME

Micro Enterprises

Annual turnover of rupee less than 5 crores

Small Enterprises

Annual turnover of rupee between 5 crores and 75 crores

Medium Enterprises

Annual turnover of rupee between 75 crores and 250 crores

     Service Area

Micro Enterprises

Annual turnover of rupee less than 5 crores

Small Enterprises

Annual turnover of rupee between 5 crores and 75 crores

Medium Enterprises

Annual turnover of rupee between 75 crores and 250 crores

 

 

Its a new definition has been given by the Government of India as follows: New Definition of MSME 2020.

 

 

Classification

Micro Industry

Small Industry

Medium Industry

Manufacturing & Services Sector

Investment less than 1 crore & turnover less than 5 crores

Investment less than 10 crores & turnover less than 50 crores

Investment less than 20 crores & turnover less than 100 crores

 

 

The contribution of Micro, Small and Medium Enterprises (MSMEs) to the Indian economy is as follows. At present, about 36.1 million units of Micro, Small and Medium Enterprises sector are functioning in India. Currently, MSMEs employ about 120 million people in India. MSMEs contribute about 45% of India's total exports. MSMEs contribute 6.11% to India's manufacturing-GDP, contributing 25% to GDP from the services sector. The region has consistently maintained an annual growth rate of over 10%. The sector contributes about 8% to the country's gross domestic product. Many units of MSMEs are also located in rural areas due to which migration from villages to cities has been halted.


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