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<div type="image" title="Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024." msid="115250619" hostid="261" sizebytes="118350" caption="&amp;lt;p&amp;gt;Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024.&amp;lt;/p&amp;gt;"></div> “Ye le beta, humare khaandani sone ke gehne. Ise girvi rakhva de, shayad kuch paise aa jaye ghar main.” How many times have we seen similar dialogues repeat itself in Bollywood films of the 70s and 80s—abject poverty and a frail-looking old mother pleading to her son to pawn the family’s heirloom <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> ornaments to a jeweller, all to get a few bucks? Well, if you’d ask that son in 2024, he’d rather hit the loan button on his <keyword id="19977340" type="General" weightage="20" keywordseo="demat" source="keywords">Demat</keyword> account than pawn his mother’s gold jewellery. Given how Indians are rapidly resorting to taking loans against their investments in shares and mutual funds, these might as well be a cherished family heirloom in today’s time. Fair warning though; it's not as if gold and loans against it are going down in India’s lending scene. It's very much the opposite, shining brighter than ever! The secured loan category is having its time in the spotlight, and people are certainly looking beyond land and property to get their hands on some extra monies! But what is funding the steep rise behind these loans? And are they as failsafe and secure as they’re made out to be? We decode for you in this week’s Simply Put. <h2>The great Indian pawning party</h2>Pawning one’s gold has been, by far, the OG Indian financial move to get a loan. That continues well into 2024, and apparently, more so when India decides to wed and celebrate! Data from <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024. It looks like Gold took the motto of rise and shine too seriously! Table 1: Growth in gold loans <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount (In Rs crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,009 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">89,370 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">97,426 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,02,562 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,47,081 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: RBI data While the world continues to be riled up in multiple geopolitical crises in 2024, gold has been making merry of these tough times. Thus far this year, domestic gold prices have grown by 23%, outperforming benchmark indices like Nifty and Sensex by a mile, which have gone up by 9.85% and 8.86%, respectively. The growth in gold loan disbursal rates month on month this year could also put Nifty and Sensex’s growth to shame. In just September 2024, gold loans grew an astounding 51%, up from 40.9% in August, 30.5% in June, and just 14.8% in March. <h2>Hey, wait up for me, says <keyword id="23953567" type="General" weightage="20" keywordseo="las" source="keywords">LAS</keyword></h2>In lockstep with the elder, gold loan sibling, advances against shares and bonds have also been inching up since 2022. Data from RBI (Reserve Bank of India) notes that as of September 2022, the outstanding quantum of loans that were taken against shares (LAS) and bonds stood at Rs 7,397.94 crores. This inched up to Rs 7,764 crore in September 2023. Come 2024, and it looked like this was LAS’ time to shine. Loans swiftly skyrocketed, with outstanding loans in this category going up from Rs 8,492 crore in March 2022 to a staggering Rs 9,546 crore at the end of September 2024. Naturally, the smoke of LAS has its fire in the record inflows that Indians are pouring into the stock market and mutual funds month on month. Per AMFI (<keyword id="20090034" type="General" weightage="20" keywordseo="association-of-mutual-funds" source="keywords">Association of Mutual Funds</keyword> in India), the net AUM (assets under management) of India’s mutual fund industry grew to Rs 67,25,614.61 crores in October 2024, up from Rs 67,09,259.24 crores in September 2024. Even the number of retail mutual fund folios, which include equity, hybrid, and solution-oriented mutual funds, burgeoned to 17,23,52,296 in October, as compared to 16,81,61,366 in September. The same goes for stock investments in India, where the number of new demat accounts that are added every month just simply refuses to climb down. As of last month, total demat accounts in the country stood at 17.9 crore, which is more than the entire population of full-fledged nations like Japan (12.45 crore), Russia (14.38 crore), and Bangladesh (17.3 crore). In fact, since February this year, the monthly growth of LAS has been hitting double digits. From 11.3% in March to 21.6% in May to 26.8% in August, growth in LAS has been exceptional, hitting 22.9% in September this year. For context, monthly growth in the LAS segment was at a mere 5% in September 2023. <h2>What's driving the growth?</h2>It's a win-win for both the bank and the customer. Customers love them because LAS is available at a lower interest rate compared to unsecured personal loans. You can get a loan at an interest rate of anywhere between 9 and 12% by pledging your gold, MF units, or shares. Compare this to over 10-28% rates, which is the range where unsecured personal loans charge interest. Banks love <keyword id="827883" type="General" weightage="100" keywordseo="secured-loans" source="Orion">secured loans</keyword> since they are well-secured. In case you default on paying back, the bank can sell off your gold, shares, or mutual fund units to recover the amount. This takes a lot of stress off the banks, which are already dealing with secured loans’ riskier sibling-unsecured lending. High NPAs (non-performing assets) and non-payments in the unsecured borrowing space have already put RBI on red alert, which is why the apex bank is tightening the screws on unsecured lending, which was well on its way to becoming a ticking time bomb. As a result, credit growth has moderated to 12.8% YoY in October, as against the 19.3% rise recorded in the year-ago period. Yet it's not like the banks won't feel the heat. Analysts at Nomura note that personal loan delinquencies in India that have been overdue by over 90 days rose to 5.1% in the last financial year, as opposed to just 3.9% in the year prior. <h2>How does it work?</h2>Both these loans work on a similar principle: Your loan amount is equal to a certain percentage of the actual market value of your asset. This is known as the <keyword id="20051485" type="General" weightage="20" keywordseo="ltv" source="keywords">LTV</keyword> (loan-to-value ratio). In the case of gold and debt mutual funds, RBI mandates that this LTV be about 75-80%. So, for every Rs 100 of gold or debt mutual fund unit you pledge, your maximum loan amount cannot exceed Rs 80. If you pledge gold, which has a market value of Rs 10 lakh, you can take a loan of up to Rs 8,00,000. In the case of shares and mutual fund units, this limit is set at 50%. So, your shares worth Rs 5,00,000 can only get you a loan worth Rs 2,50,000. But the bright side? You can continue earning returns on your investments and pay interest only on the amount you use, since this loan works as an overdraft facility. <h2>Super safe, you say?</h2>Interest rates on both of these loans are very much dependent on the market value of the asset, which wildly fluctuates on a day-to-day basis. So, in case the value of your asset falls, you’ll have to keep a margin or more of the same asset in order to continue with the loan and maintain the LTV balance. Failure to do so could mean the bank can even sell off your asset. Says financial planner Nema Chaya Buch. “Yes, LAS offers easy availability of funds since these loans come with a lower interest rate as compared to personal loans. Also, you continue to earn average returns of 10–13% on your equity investments. But the downside is, in case of emergency, those pledged securities cannot be sold. Also, if the equity market goes down, then the bank may ask for additional collateral. Raghvendra Nath, MD, Ladderup Wealth Management notes that taking a LAS is best when the value of your securities has appreciated significantly. “This allows you to maximize the loan amount based on your collateral while also addressing financial needs without having to liquidate your investment portfolio. However, there are notable disadvantages to consider. The market risk is significant; a substantial decline in market value could lead to margin calls, which may incur fees and charges if there are delays or prepayments, ultimately increasing the effective cost of borrowing. Furthermore, failure to make timely payments could result in the loss of your assets.”. Umesh Mohanan, ED &amp; CEO, of Indel Money, cautions that one should have a sufficient quantity of gold to get the loan amount one wants. "According to the current RBI rules, the loan applicant/borrower can draw up to 75% of the total market value of the collateral/gold jewellery. So, always carry a sufficient quantity of gold based on one’s loan requirement. “The most important thing is that the valuation of the gold depends on the purity of the gold. If the borrower pledges gold with higher purity, such as 24 carats or 22 carats, he will get the maximum loan amount," he adds.

Simply Put: Secured Loans 2.0 — why more and more Indians are turning to gold, shares and mutual funds to get loans

Global <keyword id="6451058" type="General" weightage="100" keywordseo="semiconductor" source="Orion">semiconductor</keyword> body <keyword id="21260120" type="General" weightage="20" keywordseo="semi" source="keywords">SEMI</keyword> and its peer <keyword id="20317526" type="General" weightage="20" keywordseo="iesa" source="keywords">IESA</keyword> have announced a strategic agreement to boost the industry ecosystem in <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>, a joint statement said. As part of the agreement, the <keyword id="20764178" type="General" weightage="20" keywordseo="indian-electronics-and-semiconductor-association" source="keywords">Indian Electronics and Semiconductor Association</keyword> (<keyword id="20317526" type="General" weightage="20" keywordseo="iesa" source="keywords">IESA</keyword>) will become part of the SEMI-- the organiser of Semicon events including <keyword id="22843110" type="General" weightage="20" keywordseo="semicon-india" source="keywords">Semicon India</keyword>. "This partnership will help <keyword id="21260120" type="General" weightage="20" keywordseo="semi" source="keywords">SEMI</keyword> grow a strong presence in this critical emerging market and enable both organisations to identify tangible strategies that leverage our combined strengths to enhance supply chain resilience," Ajit Manocha, President and CEO, SEMI said. The agreement was signed on the sidelines of <keyword id="22843110" type="General" weightage="20" keywordseo="semicon-india" source="keywords">Semicon India</keyword> 2024, the statement said on Wednesday. This agreement will also pave the way for joint policy advocacy efforts, with IESA and SEMI working closely with both Central and State governments to drive incentives for product development and manufacturing, leveraging key programmes such as the <keyword id="19952889" type="General" weightage="20" keywordseo="production-linked-incentive" source="keywords">Production Linked Incentive</keyword> (PLI) and Design Linked Incentive (DLI) models, it said. "This milestone is a major win for <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>, SEMI, and IESA. It positions India to become a global <keyword id="6451058" type="General" weightage="100" keywordseo="semiconductor" source="Orion">semiconductor</keyword> powerhouse, accelerates economic growth, and fosters innovation," IESA President Ashok Chandak said.

SEMI, IESA join hands to boost semiconductor ecosystem in India

Domestic <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> have risen by 10% on a year-to-date basis on the back of the strength in global gold prices, which have surged by 18% year-to-date, driven by robust <keyword id="19894998" type="General" weightage="20" keywordseo="central-bank" source="keywords">central bank</keyword> purchases, heightened geopolitical risks, and growing expectations of a monetary policy pivot from the <keyword id="19901377" type="General" weightage="20" keywordseo="us-federal-reserve" source="keywords">US Federal Reserve</keyword>, according to the <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="153" meta.entityid="World Gold Council">World Gold Council</keyword>. The reduction in <keyword id="20069572" type="General" weightage="20" keywordseo="import-duty" source="keywords">import duty</keyword> has ignited a resurgence in gold demand across <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>. Reports from the recently concluded India International Jewellery Show indicate a substantial increase in order bookings from retailers, particularly in preparation for the upcoming festive and wedding season. Manufacturers have noted that in some cases, orders have reached levels not seen in several years, underscoring the strong buying interest among <keyword id="21595593" type="General" weightage="20" keywordseo="jewellery-retailers" source="keywords">jewellery retailers</keyword> and consumers alike. The trend of bar and coin buying has also remained robust, with both consumers and jewellers capitalizing on the more attractive prices to stock up for future manufacturing needs. Historical analysis suggests that Indian consumer demand, encompassing jewellery and bar and coin demand, could see an additional 50 tonnes or more in the second half of 2024. This potential increase is fueled by a combination of an initial boost in consumer appetite due to the more attractive prices and a longer-term alignment of local prices with international rates. In a notable shift, domestic gold prices, which had been trading at a discount to international prices for five consecutive months, have now started trading at a premium following the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> announcement. The discount had widened significantly in July, reaching a peak of around $80 per ounce in the third week of the month, driven by subdued demand and an increased supply of gold through various preferential trade agreements and unofficial channels. However, wholesalers who had inventory purchased under the old customs duty regime began selling gold at a premium to the landed cost to mitigate their losses, further supported by increased consumer demand. While the premiums have moderated recently, from $28 per ounce to around USD 5 per ounce, this shift highlights the changing market sentiment and the impact of rising international gold prices and potential inventory valuation adjustments. The changes introduced in the Union Budget, including a reduction in the long-term investment holding period and a lower tax rate, have made gold ETFs a more attractive investment option. Data from the Association of Mutual Funds in India (AMFI) reveals that net inflows into gold ETFs in July amounted to Rs 13.4 billion (approximately USD 160 million), marking the highest monthly inflows since February 2020 and an 84% increase compared to June 2024. Despite these inflows, the total assets under management (AUM) for Indian gold ETFs grew marginally by 0.3% from the previous month, reaching Rs 345 billion ($4.1 billion). This modest increase can be attributed to the 8 % fall in domestic gold prices following the import duty reduction. Year-to-date, net inflows into Indian gold ETFs have totalled Rs 45 billion ($543 million), with total AUMs rising by 48 % from a year ago. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="153" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) has continued its gold purchasing trend, although at a slower pace following a significant increase in June, when purchases reached 9.3 tonnes--the highest monthly total in nearly two years. Year-to-date, the RBI's gold acquisitions have totaled 44.3 tonnes, surpassing the total purchases of the past two years combined. The RBI's gold reserves have now reached a record 849 tonnes, representing 8.8% of total foreign reserves, compared to 7.5 % a year ago. In July, gold imports remained steady at $3.1 billion, maintaining the stable trend observed over the previous three months. Between April and July, imports averaged $3.2 billion, with volumes ranging between 43 and 47 tonnes during this period. The gold import bill for July 2024 was 11 % lower than the previous year, with an estimated 26% decrease in volume terms, around 47 tonnes. Despite a surge in international gold prices, domestic gold prices in India have experienced a notable decline, primarily due to the 9 % reduction in import duty announced in the Union Budget 2024-25. This policy change has led to a 6% decrease in the landed cost of gold, marking a shift in the domestic gold market dynamics.

Domestic gold prices surge 10% amid global price rally, central bank buying: World Gold Council

This as-told-to essay is based on a conversation with Daria Rose, a 27-year-old lawyer <a target="_blank" href="https://www.instagram.com/darilynmonrosee/">and creator</a> who interned at Ray Dalio's hedge fund, Bridgewater Associates, in 2017 and 2018. Her employment has been verified and the following has been edited for length and clarity.The first time I ever watched the "<a target="_blank" href="https://www.businessinsider.com/psychology-black-mirror-nosedive-social-media-2016-10">Black Mirror" episode "Nosedive"</a> — about a world in which people constantly rate one another — I thought, wait, I've worked for a place like this before.The summer after my sophomore and junior years at Harvard University, I interned at Bridgewater Associates, the world's largest hedge fund. Its intense culture <a target="_blank" href="https://www.businessinsider.com/ray-dalio-screamed-the-fund-book-excerpt-2023-11">is not for everybody</a>. Founder Ray Dalio once said around <a target="_blank" href="https://www.businessinsider.com/what-its-like-to-work-at-ray-dalio-bridgewater-associates-2019-4">30% of employees quit within the first 18 months</a>.And while I definitely see parallels between my time at Bridgewater and that "Black Mirror" episode, I <a target="_blank" href="https://www.tiktok.com/@dariarosereal/video/7355211305873149226">look back fondly on my time there</a>. If I hadn't gone to law school, I 100% would've returned to work there full-time.<h2>I was drawn to Bridgewater's tenet of meaningful work</h2>In my sophomore year, I heard about Bridgewater from another student in a <a target="_blank" href="https://www.businessinsider.com/harvard-task-force-issues-scathing-report-on-final-clubs-2016-4">social club I was in at Harvard</a>. She'd been recruited as an investment associate and was looking for other people interested in working there.I did some research and was drawn to the fact that one of Bridgewater's main tenets is about <a target="_blank" href="https://www.principles.com/principles/4e857597-33e6-484d-86d5-dc2da102118e/">meaningful work and meaningful relationships</a>. She told me about a management associate position and helped forward my résumé.After applying, I had to take a Myers-Briggs Personality Type test and <a target="_blank" href="https://www.businessinsider.com/bridgewater-associates-personality-tests-2016-8">several other screening tests</a>. Next, we had a <a target="_blank" href="https://www.businessinsider.com/bridgewater-associates-job-application-process-2016-8">full-day interview</a> at the Bridgewater campus in Westport, Connecticut.Authenticity is a big thing at Bridgewater, so I went into the interview wanting to be completely myself.I was first put in a room with other applicants for a moderated debate-style interview. The rest of the day was spent in multiple rounds of interviews with managers. Some were case studies — kind of similar to consulting — and others involved deep intensive questions about who I was as a person. How did you grow up? Are you an only child? How do you think this affected you? How do you think this impacts your working style on a team? What wakes you up in the morning? How do you deal with criticism?The interviewers I had were incredibly empathetic, and our conversation felt real and vulnerable.About a week or two later, I got a call that I got the job. When I saw my <a target="_blank" href="https://www.businessinsider.com/hedge-fund-salaries-analyst-bridgewater-citadel-aqr-point72-two-sigma-2020-11">offer package</a> — I was like, whoa, this is a lot of money — and the great perks like housing, transportation, and a signing bonus, it was really a no-brainer. I thought, I'm 100% working there.<h2>The internship was incredibly fun</h2>Most of the interns lived together in dorms for the summer, which was really cool and special. To help us bond, we did fun activities like group dinners, our own version of <a target="_blank" href="https://www.businessinsider.com/how-tough-mudder-went-from-harvard-business-to-tv-show-on-sky-and-cbs-2017-1">Tough Mudder</a>, and a scavenger hunt.Every day, we would arrive at the campus by around 8 a.m. and leave around 7 p.m. I was a management associate intern in the office of the CEO, and we did basically any special project the CEO needed. I worked on a lot of <a target="_blank" href="https://www.businessinsider.com/dei-programs-america-diversity-equity-inclusion-pushback-how-to-fix-2024-2">diversity initiatives</a>, figuring out how to make Bridgewater more streamlined and accessible to employees.At the time, Dalio's book "<a target="_blank" href="https://www.principles.com/">Principles: Life and Work</a>" wasn't out yet, so one of our tasks was to read the manuscript and give feedback on it.<h2>Ranking each other was a big part of Bridgewater's culture</h2>We ranked people daily using numbered "<a target="_blank" href="https://www.principles.com/principles/3290232e-6bca-4585-a4f6-66874aefce30/">dots</a>," a real-time check-in of how everyone was doing.In each meeting, we'd each have an iPad in front of us, showing a list of everyone else present. Throughout the meeting, we'd <a target="_blank" href="https://www.businessinsider.com/bridgewater-ray-dalio-radical-transparency-app-dots-2017-9">give people dots</a> for things like humility, composure, willingness to touch a nerve, openmindedness, and assertiveness. By the end of the meeting, our whole screen would <a target="_blank" href="https://www.businessinsider.com/ray-dalio-instant-feedback-tool-on-zoom-review-dots-2021-7">just be filled with dots</a> — some red, some green. It could get distracting sometimes — like, who gave me a three? — but we'd try to ignore it and stay in the moment.Because we were <a target="_blank" href="https://www.businessinsider.com/ray-dalio-bridgewater-public-ranking-system-employees-book-says-2023-11">constantly being evaluated</a> on what we said, people were way more conscious when speaking. Instead of talking just to talk, people tried to make their points succinct and easily understandable, or they'd get a negative dot.This criticism wasn't just limited to peers or supervisees. We were also encouraged to give dots to our bosses, managers, and even CEOs.Dot outcomes went onto our "<a target="_blank" href="https://www.principles.com/principles/a3d4f223-82d9-48ca-b12b-d00e344821c8/">baseball cards</a>," which had information about each employee's role and their strengths and weaknesses, to create a more vivid picture of what each of us was like.<h2>Everything was recorded</h2><a target="_blank" href="https://www.principles.com/principles/f6412dca-b3f9-4dd0-bb65-274869dd21ed">Radical truth and radical transparency</a> were very important at Bridgewater. Everything was recorded. If I wanted to go back and see why I got a certain dot, I could go back to the recording and listen to what I'd said. I could even look up my friends' dots and see how they were doing each day, even if I wasn't in the meeting.One time, my friend threw her water bottle in the trash rather than recycling it. I don't know who saw her, but someone gave her a negative dot. It made me realize, wow, people really do care on a microscopic level and they're paying attention to you.<h2>Pain + reflection = progress</h2>Getting so much <a target="_blank" href="https://www.businessinsider.com/how-to-deal-with-giving-constant-feedback-career-development-2021-10">constant feedback</a> was difficult at first. At times I was like, oh, that's harsh. It's never great to hear that you didn't do something right or that someone didn't like something you said. We had a button on our iPads that we could press whenever we felt pain, and then we'd write a reflection about the situation. The idea was that <a target="_blank" href="https://www.principles.com/principles/4a903526-2db6-4a0a-9b71-889868f0f475/">pain plus reflection equals progress</a>.Depending on the severity of the pain or what had happened, sometimes <a target="_blank" href="https://www.businessinsider.com/bridgewater-co-ceo-on-firms-transparent-culture-2019-1">we'd have a diagnostic session</a> to get to the root of the problem, such as if someone's ego got in the way of them asking for help. These sessions could sometimes be uncomfortable, but ultimately were really helpful and led to growth and better day-to-day operations.I was really good at receiving constructive feedback and was always really high on the humility scale. I like to improve and have a growth mindset rather than taking things personally. On the days when I felt a little bit more sensitive or more emotional, I didn't want to hear the more critical feedback. But when I was able to look back at it from a less emotional standpoint, I was like, oh, okay, they had a point here.Dalio wanted us to <a target="_blank" href="https://www.businessinsider.com/ray-dalio-lessons-bridgewater-management-transition-plan-2016-4">try to take our egos out of our work</a> as much as possible and really look toward a higher self. From time to time, we'd have to do something called "force rankings," where we ranked our team members based on who was the most and least helpful. It never felt good to be at the bottom of that scale, which happened to me multiple times.A lot of smart people who go to elite schools are used to being the best at everything and being on top all of the time, but that's not realistic. There are going to be days where you're super on it, and then there are days that you might not be.At Bridgewater, there was no hiding that fact.<h2>Gossip was not allowed</h2>It was a no-gossip environment. We weren't allowed to talk about other people behind their backs — a huge principle was that you speak up, say it to the other person's face, dot them, and be transparent.If you were talking about someone in the context of work, you'd have to <a target="_blank" href="https://www.businessinsider.com/how-bridgewater-associates-explains-spying-on-workers-2016-7">send that tape to them afterward</a>. When I got my full-time offer to join Bridgewater, my manager sent me the tape of them deliberating and I got to hear what they genuinely thought about me while I wasn't in the room.I think that's really valuable, especially these days when some corporate environments involve fakeness and niceties to your face and people aren't upfront about what they actually think about you and your work.At Bridgewater, there was none of that. It sounds counterintuitive, but the constant recordings did encourage us to be more open and put everything on the table — there's no incentive not to.I really appreciated the candidness. Now working in law, we have so much going on sometimes that we don't necessarily get direct feedback all the time. As with most companies, feedback usually happens during an annual or semi-annual review, and sometimes by that time, it's become a bigger problem.With the dot system at Bridgewater, if there was an issue, we'd know that day, and it'd be diagnosed that week. I miss that part about it.<h2>The best ideas won</h2>We were really encouraged to push back on supervisors and superiors, because one of the tenets was that we were an <a target="_blank" href="https://www.bridgewater.com/culture/bridgewaters-idea-meritocracy">idea meritocracy</a> and the best idea will rise to the top, not based on the seniority of the person who put it forth.Because debating and disagreeing with each other was encouraged, I learned so much from my colleagues. I had my viewpoints challenged and I challenged theirs. I can't imagine another workplace like that that allows for that type of growth and honest feedback.<h2>My experience made me who I am today</h2>I think Bridgewater's culture might be a little bit different now, especially because <a target="_blank" href="https://www.businessinsider.com/ray-dalio-exits-bridgewater-2022-10">Ray Dalio isn't there anymore</a>. But I can't emphasize enough how transformative and eye-opening my experience was. It helped shape who I am today, especially how I think about feedback, work, and the relationships I have at work.I've never worked with a more brilliant group of unique people. There were poker stars, musicians, and people who wrote comedy. We all did so many different things but were united under this Bridgewater umbrella and really brought our full selves to work and gave it our all.The experience prepared me for life, even more than just for a corporate career. It helped me grow a thicker skin; not a lot fazes me now.A few years after working at Bridgewater, I was <a target="_blank" href="https://www.businessinsider.com/how-much-it-cost-to-be-on-the-bachelor-2022-3">on "The Bachelor."</a> People scrutinized me and said so many mean, horrible things.My Bridgewater experience prepared me to understand that everyone will have judgments or perceptions about you, but you don't have to take them all in. We'd always say, "It's just one dot."One dot doesn't make up the whole picture. You're going to get thousands and thousands of dots; take that criticism for what it is.A representative for Bridgewater Associates declined to comment.If you experienced a uniquely demanding workplace culture and would like to share your story, email Jane Zhang at <a target="_blank" href="mailto:janezhang@businessinsider.com">janezhang@businessinsider.com</a>.

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