Author: Kshitiz Jain

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

Index	3-Feb-23	27-Jan-23	Change (%)
Nifty 50	17,854	17,604	1.42
Nifty 500	14,962	14,874	0.59
Nifty Midcap 50	8,604	8,463	1.67
Nifty Smallcap 100	9,415	9,242	1.87

Bazaar Ki Baat

In this month’s edition of “Bazaar ki baat”, our Founders discussed in brief about the various topics related to Market, Sectors, Budget impact on Sectors and Personal Finance and New Tax Regime vs Old Tax Regime. Watch here

Gyaan of the week

Equity-linked savings scheme

Equity-linked savings scheme (ELSS) is a kind of mutual fund that offers tax deduction of up to INR 1.5 lacs a year under Section 80C provision. It has a lock-in period of 3 years, which is the shortest among other tax saving instruments and there are no provisions to make a premature exit.

One can invest any amount in ELSS, there is no upper capping, while the minimum investable amount varies across different fund houses.

Investing in ELSS funds gives you dual benefits of tax deductions and wealth creation. The portfolio of an ELSS fund mostly consists of equities, while they have some exposure towards fixed-income securities as well.

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

Personal Finance

• Tax exemption removed in insurance policies with premium over Rs 5 lakh– The proposal intends to limit income tax exemption from proceeds of insurance policies with very high value Read here.

• What is Mahila Samman Savings Certificate – It’s a one-time small saving scheme for women, providing an assured return of 7.5 per cent annum. Read here.

• Capital gains cap at Rs 10 crore to hit luxury home sales – Up until now there was no such limit and typically, HNI will utilize this avenue to reduce capital gains tax liability Read here.

Investing

• MCX – Largest Commodity derivative exchange – The 4^th edition of our Stocks ki Baat series talks about India’s largest commodity derivatives exchange. The exchange has been gaining market share over the years despite some challenges. Read here

• Adani bonds hit distress levels, FPO withdrawn amid pressure over Hindenburg report– The aftermath of Adani-Hindenburg Saga continues Read here

• Hindenburg bet against India’s Adani puzzles rival U.S. short sellers– Some U.S. investors said they were intrigued about the actual mechanics of its trade, because Indian securities rules make it hard for foreigners to bet against companies there. Read here

• A shocker for the bond markets: Withholding tax to apply on listed bonds, without grandfathering – Budget changes hit the nascent corporate bond market Read here.

Economy

• India sticks to the fiscal deficit glidepath. – The government’s budget gap, which hit a high of 9.5% of GDP in 2020/21 as the spread of COVID-19 infections brought the economy to a halt, has narrowed since Read here.

• Railways get a highest ever outlay : After the push on highways for the last few years, the government is focussing on railways. Read here.

• Fed slows rate hikes even as Powell says There’s more work to do – “We think we’ve covered a lot of ground,” Powell told reporters after the meeting. “Even so, we have more work to do.” Read here.

• India defence budget disappoints –   The total Indian defence budget, estimated at about 2% of GDP, is still lower than China’s 1.45 trillion yuan ($230 billion) in allocations for 2022, which New Delhi sees as posing a threat to neighbours including India and Japan.. Read here.

CAGR Speak

• Two big tax loop-holes plugged in budget. Read the linkedin post here.

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Check out CAGRwealth smallcase portfolios here.

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

If you have any feedback that you’d 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.

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

Index	27-Jan-23	20-Jan-23	Change (%)
Nifty 50	17,604	18,027	-2.35
Nifty 500	14,874	15,347	-3.08
Nifty Midcap 50	8,463	8,755	-3.34
Nifty Smallcap 100	9,242	9,569	-3.42

Gyaan of the week

Most ETFs or Exchange traded funds track indices, meaning they aim to match the performance of a list of stocks or bonds such as the Nifty 50 Index or the Bharat Bond ETF. ETFs are similar to stocks which can be bought and sold at a price prevailing at the time of transaction. There are different types of ETFs like Index ETFs, Fixed Income ETFs, Commodity ETFs, Foreign market ETFs, etc.           

ETFs are cost- efficient as ETFs have a lower expense ratio compared to actively managed funds. ETFs are passively managed so they tend to reduce the managerial risk involved in active mutual funds.  Further, ETFs are only available on stock exchanges, so you need to have a demat account to trade them, while for index mutual funds you don’t need a demat account.

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

Personal Finance

• Nine out of 10 equity F&O traders lose money – Data for the study has been collated from the top 10 brokers in the country. The total number of traders in the sample witnessed a 500 percent increase between FY19 and FY22. In FY19, 7.1 lakh traders were included in the sample which ballooned to 45.2 lakhs in FY22.

• IFAs help investors to remain patient and disciplined – The data further reveals that 25% of regular AUM stayed invested for over 5 years, as against only 13% of direct AUM. Read here.

• FOMO: the worst financial trait – Afunny thing about money is that it’s a negative art. You often have a better chance of accumulating more of it by getting rid of bad traits vs. acquiring good ones Read here.

• Are we becoming Information Obese? – By limiting the amount of things that want their attention, they are able to conserve their precious attention to the few tasks that really matter. And once they decide what they wish to do, they are able to attend to the task with full force. All their eyes, mind, intellect and efforts are devoted to the task at hand. Read here.

• Have Yes Bank’s AT1 Bondholders Truly Won? The high court’s decision in the Yes Bank matter could very well be characterised as a success for a group of motley investors winning over a bank backed by the RBI. But will it matter? Read here.

Investing

• Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History – Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades. – Hindenburg Research Read here

• Adani Group provides a rebuttal – Adani Group responded to the 88-questions raised by Hindenburg Research in its Jan. 24 research report on Adani Group. Read here

• How Many Stocks Should You Own?  In order to avoid significant potential shortfalls in terminal wealth, long-term investors should hold at least 200 stocks in their portfolio to more reliably achieve the full potential of the stock market. Read the research paper here

• Why are investors now convinced that a tail event is unlikely despite the obvious headwinds? Because so far, it hasn’t happened. Recency bias also explains why tail protection was so expensive in the midst of the QE-fueled bull market.  Read here.

Economy

• Private Sector Capex growth unlikely – While the announcement of new projects by the private sector is rising, completion of projects by them is falling. Read here.

• Investors are allocating cash back to European equities and cutting exposure to Wall Street, where pricey tech stocks are getting hammered by rising rates. Read here.

• The impact of China reopening – From Oct. 31, 2022 (recent market trough), to Jan. 17, 2023, the MSCI China Index was up 51.7%. Read here.

CAGR Speak

• More than 10% of clients sourced through Social media influencers for a listed company. Says DHRP of a listed broking house. Read the linkedin post here.

• Why are people not thinking about financial planning. Read the linkedin post here.

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Check out CAGRwealth smallcase portfolios here.

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

If you have any feedback that you’d 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.

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

Index	13-Jan-23	06-Jan-23	Change (%)
Nifty 50	17,956	17,859	0.54
Nifty 500	15,346	15,272	0.48
Nifty Midcap 50	8,747	8,752	-0.06
Nifty Smallcap 100	9,675	9,656	0.20

Gyaan of the week

Multi-Asset Allocation Funds are hybrid funds that invest a minimum of 10% in at least 3 asset classes. These funds typically have a combination of equity, debt, and one more asset class like gold, real estate, etc.

The multi-asset allocation Mutual Funds are suitable for investors who have a low-risk appetite but want to enjoy steady returns on their investments. It helps to even out the risk that comes along with investing in just one type of asset class. It ensures a steady flow of income for the investors even at a time when some asset classes are underperforming than usual.

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

Personal Finance

• What Fund Managers Do With Their Money – Fortune India asked India’s top money managers how they handle their finances. Here are some investment lessons from the best of the best. Read here.

• Nitin Kamath on bonds for retail investors. – We’ve always believed that bonds and maybe not stocks are the right stepping stone for most Indians—better than FD returns but lower risk than stocks. Read twitter thread here.

Investing

• Stocks Ki Baat – Maithan Alloys – In the 3rd edition of our “Stocks Ki Baat” series, we write about a Ferro Alloy company. The company is the largest manufacturer of manganese alloys in India.  Read here

• Interest rate rise does not impact equity returns – Most of the impact that declining interest rates had on asset prices (particularly U.S. stocks) occurred during the 1980s (and somewhat into the mid-1990s). After that, the impact of declining interest rates may not be as significant. Read here.

• 1979 Profile of Warren Buffet: The investor’s investor – He thinks of stocks only as a fractional interest in a business and always begins by asking himself “ How much would I pay for all of this company? And on that basis, what will I pay for 1% of it?”  Read twitter post here.

• Indian Exchanges – Rise of Option Turnover – The trading volumes in India’s capital markets have seen significant growth in recent years. NSE’s Cash Equity volumes have tripled and Futures volumes have more than doubled over the last seven years. Read here.

• Tata Neu is not working– Tata Group’s ambitious super app is expected to meet just half of the sales target in its debut year. Read here.

Economy

• CareEdge releases first edition of state’s ranking – Maharashtra tops the overall ranking of all states, with a favourable score in social, financial inclusion and fiscal categories. Gujarat ranks second and fares well in economic and fiscal categories, while Tamil Nadu ranks third with an edge in social and governance categories. Read here.

• States may borrow only around 65% of Jan-Mar calendar, sources say– States are flush with ample cash and spending remains sluggish, so they would not need to borrow the entire amount, the official said. In a note on Tuesday, IDFC FIRST Bank estimated state governments have a cash surplus of around 3 trln rupees in December. Read here.

CAGR Speak

• Fixed Deposit rates have increased. Should I now invest in fixed deposits? Well, for me, I am still not investing in Bank Fixed Deposits says Shruti. Then what? Read the linkedin post here.

• Zerodha’s annual profit are amazing. Read the linkedin post here.

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Check out CAGRwealth smallcase portfolios here.

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

If you have any feedback that you’d 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.