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CAGR Insights – 8 Nov 2024

CAGR Insights is a weekly newsletter full of insights from around the world of the web.

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Chart Ki Baat

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Gyaan Ki Baat 

The Power of “Tax-Loss Harvesting” for Reducing Tax Liabilities

Tax-loss harvesting is a strategy that involves selling investments at a loss to offset capital gains taxes on other profitable investments. This approach can be especially useful when you’re looking to reduce your tax bill at the end of the financial year. You can balance out your gains and minimize taxable income by realizing losses in underperforming assets. It’s important to repurchase similar assets after a waiting period to avoid “wash-sale” rules, but this strategy can significantly improve your overall tax efficiency, making it a powerful tool for savvy investors.

Personal Finance

  • NRIs can use UPI for fee-free transactions with people in India: The NPCI has extended UPI access to NRIs holding NRE/NRO accounts. NRIs can now make fee-free UPI transactions using international mobile numbers through apps like PhonePe, iMobile, and BHIM. The service is available in several countries and has a daily transaction limit of ₹1 lakh. Read here
  • RBI makes six amendments to know-your-customer (KYC) rules: The Reserve Bank of India (RBI) has announced amendments to the Master Directions on Know Your Customer (KYC) on November 6, 2024, and the amended provisions in the Master Direction shall come into force with immediate effect. Read here
  • Nearly 3 in 4 Posts on Social Media With Financial Advice Are ‘Misleading,’ According to a New Report: Nearly three-quarters of financial advice on social media is misleading, a new report reveals. Don’t let bad advice ruin your financial future. Protect yourself by verifying information from reliable sources. Read here

Investing

  • Federal Reserve cuts interest rates by a quarter point: The U.S. Federal Reserve cut its interest rate by 0.25% to a 4.5%-4.75% range, focusing on balanced economic risks. Chair Powell emphasized that monetary policy remains restrictive to maintain employment and inflation goals despite positive economic data. Read here
  • A Framework For The Cyclical Industries: Cyclical industries offer unique investment opportunities. By understanding the underlying factors driving these cycles, investors can identify undervalued companies poised for future growth. Read here
  • RBI ‘watchful’ of unsecured loan flows into stock market says Shaktikanta Das: RBI Governor Shaktikanta Das cautioned banks to monitor unsecured loans potentially entering the stock market, citing anecdotal evidence but no concrete data. RBI has increased regulatory scrutiny, setting lending caps, though systemic risk remains low for now. Read here
  • Sebi Allows MFs to Invest in Foreign Funds with Indian Assets: SEBI has allowed Indian mutual funds to invest in overseas mutual funds or unit trusts with up to 25% exposure to Indian securities. The move aims to ease investments, enhance transparency, and prevent conflicts of interest, effective immediately. Read here

Economy & Sectors

  • Quick Commerce – Can it revolutionize the retail industry? Quick commerce is the future of retail. Imagine your groceries arriving in minutes, not hours. Companies like Zepto, Blinkit, and Instamart are making this a reality, transforming the way we shop. Watch here
  • India may seek a deal to blunt Trump’s tariff threat: The Trump presidency may offer India trade opportunities, particularly if it adapts to tariff hikes and negotiates concessions on key products. India’s strong export surplus with the US could face risks, but cooperation in areas like defense, services, and technology may grow. Read here
  • Indian economy expected to follow its natural course of modest growth: India’s economic journey is filled with promise, driven by strong services exports and remittances. While challenges remain, including government spending and investment gaps, the country’s entrepreneurial spirit and steady growth offer a solid foundation for future prosperity. Read here

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.


• CFF (launched in June 2022) – Ranked 1st amongst smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.

Do check it out here

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

Posted on

CAGR Insights – 31 Oct 2024

CAGR Insights is a weekly newsletter full of insights from around the world of the web.

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Chart Ki Baat

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India’s GDP Growth Forecast

Gyaan Ki Baat 

The Art of Delayed Gratification

In the fast-paced world of instant gratification, the ability to delay immediate pleasure for greater rewards in the future is a powerful tool, especially in personal finance. This concept, often called delayed gratification, can significantly impact your financial health.

Why Delay Gratification?

  1. Build Wealth: Instead of splurging on every desire, saving and investing that money can lead to compound growth over time. Imagine the potential of that coffee shop budget turned into investments—what could that grow into?
  2. Achieve Financial Goals: Whether it’s a dream home, a vacation, or a comfortable retirement, every goal requires discipline. By prioritizing saving over spending, you’re actively paving the way toward those dreams.
  3. Reduce Financial Stress: Living within your means and prioritizing savings can create a financial cushion, reducing anxiety around unexpected expenses or emergencies.

In essence, mastering the art of delayed gratification not only strengthens your financial position but also fosters a mindset that values long-term benefits over short-term pleasures. So, the next time you’re tempted to make an impulsive purchase, remember: the joy of saving today can lead to a brighter financial future tomorrow!

Personal Finance

  • Planning to exchange old jewellery for new? Know the income tax rules: Did you know that selling your old jewellery could lead to unexpected tax liabilities? With new rules introduced in Budget 2024, it’s crucial to understand the nuances of capital gains tax and explore alternatives like digital gold to maximize your savings! Read here

  • New credit card rules: SBI Card increases this credit card charges from November 1, 2024; check details: SBI Card has announced an increase in finance charges on all unsecured SBI Credit Cards, effective November 1, 2024. The new rate will be 3.75% per month, up from the current 3.50%. Notably, this change does not apply to the Shaurya Defense card. Read here

  • GST returns to become time-barred: No filing after 3 years: The GST Network will restrict the filing of certain GST returns more than three years past their due date, effective early 2025. Taxpayers must reconcile and file returns within this timeframe to avoid penalties, including potential registration cancellation and best judgment assessments by the GST department. Read here

Investing

  • How will the Equity Issuance Tsunami affect the market? The Indian stock market has seen a surge in demand due to increased household savings and institutional investments. However, a rise in supply from IPOs, promoter sales, and private equity exits is balancing this demand. Investors should be cautious and focus on long-term investing, considering the potential impact of increased supply on market valuations. Watch here

  • Elcid Investments, India’s costliest stock went from ₹3 to ₹2,36,250. Here’s how: Once a humble penny stock at ₹3.21, Elcid Investments has rocketed to ₹2,36,250 per share, outshining even MRF! This jaw-dropping rise follows a BSE relisting, fueled by its prized 2.95% stake in Asian Paints—worth a staggering ₹8,500 crore—making it a powerhouse on Dalal Street. To learn more about how this transformation happened. Read here

  • SEBI wants mutual funds to deploy NFO proceeds within 30 days: SEBI has issued a consultation paper proposing that Asset Management Companies deploy funds from New Fund Offers within 30 business days of allotment. Non-compliance could lead to restrictions, including a ban on launching new schemes and mandatory reporting to trustees. Read here

Economy & Sectors

  • India’s job crisis: Getting better or worse? | Modi Govt’s record on employment: After a decade under Modi, India’s employment scene shows mixed progress. Employment rates have risen, yet the job quality lags, with most growth in low-wage informal sectors. The question remains: can government-driven initiatives bring enough quality jobs to meet demand, or will the private sector need to step up? Watch here

  • Why is India’s GDP growth so high but bank credit & consumption are slack, asks Swaminathan Aiyar? The finance ministry warns of growth risks from geopolitical issues and high valuations. Swaminathan Aiyar notes Indian market resilience relies on domestic investments, while the RBI’s cautious stance may lead to challenges in addressing inflation and growth. Read here

  • Economy ‘satisfactory’ in H1 of fiscal; choppy waters ahead, Finmin report: India’s economy showed satisfactory performance in H1 FY25, with projected growth between 6.5% and 7%, despite risks from geopolitical conflicts and elevated valuations. However, Nomura cautions of a cyclical slowdown, citing factors like high interest rates and declining urban demand. Read here

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Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.


• CFF (launched in June 2022) – Ranked 1st amongst smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.

Do check it out here

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

Posted on

CAGR Insights – 25 Oct 2024

CAGR Insights is a weekly newsletter full of insights from around the world of the web.

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Chart Ki Baat

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Source: Bloomberg

Gyaan Ki Baat 

Mind Over Money: How Behavioural Biases Shape Your Investments

Investing is not just about numbers and market trends—it’s also deeply influenced by psychology. Our emotions and inherent biases often shape the financial decisions we make. Understanding these behavioural biases can help investors make more informed, rational choices and avoid common pitfalls in their investment journey.

Here are some common behavioural biases that can impact financial behaviour:

Overconfidence: Investors often overestimate their abilities and knowledge, leading to riskier investments.

Loss aversion: People tend to feel more pain from a loss than pleasure from a gain, making them reluctant to sell losing investments.

Herding: Investors often follow the crowd, buying or selling assets based on popular trends rather than fundamental analysis.

Anchoring: Investors may anchor their decisions to irrelevant information, such as the initial purchase price of a stock.

Confirmation bias: Investors seek information confirming their beliefs while ignoring contradictory evidence.

Understanding these biases can help investors make more informed decisions and avoid costly mistakes. By recognizing and mitigating the effects of these biases, individuals can improve their financial outcomes. Here’s the list of curated readings for you this week:

Personal Finance

  • Are you investing in Gold this Dhanteras? Finance Ke Funde is here! 💰✨Join Shruti and Vikash in our first episode as they explore the world of gold. We’ll talk about everything from its cultural significance to its investment prospects. Discover why gold prices fluctuate worldwide, how they compare to Indian markets, and much more! Watch here
  • The Low Stability of High Income: Is your high salary a ticking time bomb? High-income earners, especially in volatile industries face the risk of sudden income loss. Discover how unchecked spending and job volatility could quickly derail your financial future—and what you can do to stay secure. Read here
  • Soaring Markets Trigger Family Disputes: Family disputes in India’s business empires are escalating as market valuations soar. From the Oberoi family to the Kalyanis, legal battles are intensifying over competing wills. With family businesses contributing 75% of GDP, how will these conflicts shape the future? Read here

Investing

  • The Run: Archie Karas went from rags to riches, turning $50 into $40 million, only to lose it all. His story mirrors the risky nature of stock picking, where discipline, conviction, and smart risk-taking are crucial to long-term success. Read here
  • Measuring Performance – How to Choose the Right Benchmark: Benchmarking in investing shouldn’t focus on niche indices that may distort performance comparisons. True progress lies in absolute returns against major indices like the S&P 500, reflecting real investment alternatives. Choosing the right benchmark is crucial for long-term success. Read here
  • How a Pune investor’s complaint blew the lid off ‘Rs 900-cr’ fraud linked to OctaFx forex trading platform: In a major crackdown, the Pune Police and ED unearthed a Rs 900 crore foreign exchange scam targeting over 500 hearing-impaired victims. Find out how this elaborate scheme was orchestrated and who’s now under investigation. Read here
  • RBI governor says “Can’t risk another bout of inflation, need cautious approach”: India’s Monetary Policy Committee remains cautious on rate cuts, emphasizing the need to control inflation amid rising food prices. As demand wanes, a lone voice calls for cuts to boost private investment. Read here

Economy & Sectors

  • The changing face of India’s rich: India’s wealth landscape is transforming, with new-age millionaires rising from startups, sports, and stocks. As wealth shifts from traditional assets to financial markets, learn how this fresh affluence is reshaping consumption and investment trends. Read here
  • What the Coldplay event tells us about new India: India’s evolving consumer culture reveals a deep-rooted shift toward visible wealth and status, often fueled by credit and social pressure. As spending rises, so do questions: Are we finding true fulfilment, or just chasing validation? Read here
  • Understanding EMS – The backbone of the global electronics market: India’s Electronics Manufacturing Services (EMS) market is projected to grow at a remarkable CAGR of 32.3% from 2021 to 2026, driven by domestic production initiatives and rising electronic consumption. Explore how this shift is reshaping the landscape of manufacturing. Read here

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.


• CFF (launched in June 2022) – Ranked 1st amongst smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.

Do check it out here

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

Posted on

CAGR Insights – 18 Oct 2024

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Chart Ki Baat

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Source: CapitalMind

Gyaan Ki Baat 

Mansa Musa, the 14th-century emperor of Mali, had a net worth of $400–700 billion today, making him far wealthier than today’s richest individuals. He expanded his empire through strategic trade, not battles. During his 1324 pilgrimage to Mecca, he traveled with 60,000 people, distributing so much gold that he caused hyperinflation in Egypt. Musa transformed Timbuktu into a cultural hub by building schools and the University of Sankore. His legacy emphasizes that true wealth lies in investing in people and creating lasting impact.

Mansa Musa’s story transcends time and geography, offering the following valuable insights that resonate even in today’s world:

  1. Wealth with Purpose: True wealth isn’t just about accumulation; it’s about making a positive impact. Mansa Musa demonstrated that investing in people and infrastructure can create lasting change and prosperity.
  2. The Power of Generosity: Musa’s generosity changed economies and lives. This reminds us that giving back can have ripple effects, influencing communities far beyond our immediate surroundings.
  3. Prioritizing Knowledge: The emphasis on education and learning paved the way for innovation and cultural exchange. In today’s fast-paced world, fostering a culture of knowledge can drive progress and creativity.
  4. Strategic Leadership: Musa expanded his empire not through war, but through diplomacy and trade. His leadership style teaches us the importance of collaboration and smart decision-making in achieving our goals.
  5. Cultural Richness: Embracing diversity and facilitating cultural exchange enriches societies. Mansa Musa’s reign illustrates that the blending of ideas and traditions can lead to a vibrant and thriving community.
  6. Historical Awareness: Understanding the past allows us to recognize shifts in power and prosperity. History is not static; it reminds us that today’s leaders can emerge from anywhere, and that we must remain open to new perspectives.

Here’s the list of curated readings for you this week:

Personal Finance

  • A Message From the Past (Thoughts on Nostalgia): Morgan Housel discusses the phenomenon of economic nostalgia, where people often romanticize the past and forget the challenges and uncertainties they faced at the time. He suggests that understanding this phenomenon is crucial for investors and individuals alike, as it can help them manage expectations and navigate the present challenges. Read here
  • Sebi’s New Move: A Game-Changer for Debt Investors: Sebi has introduced a new liquidity window for debt securities, allowing investors to sell them back to issuers before maturity. This aims to address the illiquidity of the corporate bond market and encourage greater retail investor participation. Will this liquidity window unlock the potential of India’s debt market? Read here
  • New ITR E-Filing Portal 3.0 to Launch Soon: IT Dept Invites Suggestions: The Income Tax Department is introducing a new e-filing portal (Project IEC 3.0) to streamline the tax filing process. The revamped platform promises faster ITR processing, improved user experience, and enhanced security. The department is seeking public feedback to ensure the portal meets taxpayer needs.Read here

Investing

  • Investing during geopolitical unrest & market sensitivities: Geopolitical tensions, China’s stimulus, and domestic concerns are rattling financial markets. Rising oil prices, capital outflows, and F&O losses are adding to the volatility. Despite these challenges, investors can navigate this turbulent landscape with a dynamic strategy and protect their portfolios. Are you ready to take control of your investments? Read here
  • These 2 factors to act as ’suit of armour’ against emerging risks in Indian market, says Motilal Oswal Private Wealth: Motilal Oswal Private Wealth (MOPW) addresses rising market volatility, advising a cautious, staggered investment approach. They emphasize resilience, highlight opportunities in specific sectors, and offer insights on navigating current economic challenges while balancing growth prospects with potential risks.Read here
  • Four investment mistakes you really don’t want to repeat: In this insightful column, the author explores key investment blunders—from clinging to bad bets to mistiming the market—using personal and historical examples. Learn how cognitive biases can derail financial decisions and discover valuable lessons to avoid costly investment mistakes. Read here  

Economy & Sectors

  • “Entrepreneurs Face Unprecedented Opportunities, But Must Focus and Navigate Wisely”, Says Infosys Co-Founder Nandan Nilekani: Nandan Nilekani, Infosys co-founder, believes there are more entrepreneurial opportunities today than ever. He encourages young people to focus on key areas and highlights energy transition, especially small-scale solutions, as promising but cautions that it requires market knowledge and expertise. Watch here
  • India’s Green Hydrogen journey chugging along! India is emerging as a leader in Green Hydrogen, with trials for the country’s first hydrogen-powered train expected by December. This eco-friendly fuel source has the potential to revolutionize industries, reduce emissions, and boost energy security. Green Hydrogen is transforming India’s energy landscape from steel plants to maritime shipping.Read here
  • Pvt equity investment in real estate down 4% to $2.3 bn in Apr-Sep: Anarock Private equity in Indian real estate drops 4%, but a game-changing $1.5 billion Reliance-ADIA/KKR deal reshapes the landscape—find out how global trends are impacting the market! Read here

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.


• CFF (launched in June 2022) – Ranked 1st amongst smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.

Do check it out here

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.