Commerce Optional (UPSC-IAS)
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Forwarded from Indian Economy by CA Dhananjay Ojha (🌟Civil Service Gurukul 🌟)
The linking pin model is an idea developed by Rensis Likert. It presents an organisation as a number of overlapping work units in which a member of a unit is the leader of another unit. In this scheme, the supervisor/manager has the dual task of maintaining unity and creating a sense of belonging within the group he or she supervises and of representing that group in meetings with superior and parallel management staff. These individuals are the linking pins within the organisation and so they become the focus of leadership development activities.
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Hybrid Fund


A hybrid fund is one that invests in both equity and bonds. So, such funds ought to help investors with their asset allocation decision.

This refers to how you allocate your annual savings between equity and bond investments.

Suppose you are unsure of the proportion of equity and bond investments to have in your portfolio.

By investing in a hybrid fund, you could outsource your asset allocation decision to the manager of the fund, so the argument goes.

The issue is that each goal you pursue requires different asset allocation. For instance, the asset allocation for your child's education portfolio must be different from your retirement portfolio.

Hybrid funds cannot consider your individual goal requirement as it is a collective investment vehicle.

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Tax efficiency of the fund

Based on current tax laws, a hybrid fund that holds 65% or more in equity is considered as an equity fund.

So, if you redeem your units in such hybrid funds after a holding period of more than 12 months, you have to pay long-term capital gains tax of 10%.

If a hybrid fund holds less than 65% in equity, you have to pay 20% capital gains tax with indexation if you sell your units after a holding period of more than 36 months.
Books and Sources for References - Commerce Optional | Civil Service Gurukul
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13 November 2020 Daily Answer Writing Practice- DAY 9 Organisation Theory of UPSC Commerce Optional Designing Organisational Structures https://www.civilservicegurukul.com/daily-answer-writing-practice-for-commerce-optional-upsc-mains-day-19/
14 November 2020 Daily Answer Writing Practice- DAY 10 Organisation Theory of UPSC Commerce Optional Designing Organisational Structures https://www.civilservicegurukul.com/daily-answer-writing-practice-for-commerce-optional-upsc-mains-day-20/