CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 02-Dec-22 | 25-Nov-22 | Change (%) |
| Nifty 50 | 18,696 | 18,513 | 0.98 |
| Nifty 500 | 15,963 | 15,727 | 1.50 |
| Nifty Midcap 50 | 8,994 | 8,758 | 2.69 |
| Nifty Smallcap 100 | 10,079 | 9,849 | 2.33 |
Market commentary – Nov 2022
November was the month of consolidation in Indian stock market. All broad-based Indian equity indices continued their rally in November. Nifty 50 index registered gains of 4.1% during November and touched its lifetime highs.
Although the bullish sentiment was widespread, smaller companies continued to lag their larger peers. The US markets also had a positive month, on the back of easing inflation and optimism surrounding a potential slowing pace of U.S. rate hikes.
Gyaan of the week
Fixed Maturity Plans are close-ended debt mutual fund schemes with a pre-defined maturity. The money is invested in debt instruments maturing in line with the scheme tenure. The tenure of an FMP can vary between a few months to a few years. They primarily invest in fixed income instruments such as a certificate of deposits, commercial paper or bonds to lock-in the interest rates available. As the securities are held till maturity, it helps to eliminate interest rate fluctuation. FMPs work well for investors who have certain goals that they would like to execute over a specific period. The downside of FMPs is that the investor’s funds get locked-in till maturity.
Here’s the list of curated readings for you this week:
Personal Finance
- Getting Wealthy vs. Staying Wealthy – Getting money requires taking risks, being optimistic, and putting yourself out there. But keeping money requires the opposite of taking risk. It requires humility, and fear that what you’ve made can be taken away from you just as fast. Read here.
- SEBI is going hi-tech– The regulator has developed a system based on artificial intelligence (AI) that scans various stock market shows and builds a database of recommendations made, said people with direct knowledge of the matter. Read here.
- Why index? Simply put, because indexing works- The growth of indexing has been driven by the inability of active managers, in aggregate, to outperform passive benchmarks. This is not a new development — it was first reported 90 years ago. The rise of passive management is the consequence of active performance shortfalls. Read here.
Investing
- The rise and rise of Adani group – The Adani Group’s current market cap is already higher than the GDP of countries like Ukraine and Sri Lanka. Only the rapid rise in market cap of new-age Amazon, Google and Facebook come close or, back home, giants like HDFC Bank and TCS. Read here.
- Samit Vartak of SageOne Investment Managers shares his success and failures – An individual investor has the option of sitting on cash or timing it and just moving all of his or her cash into those couple of sectors. It’s a wonderful bet to play. If I was an individual investor, maybe I would do that. As a fund manager, it is a different ball game. Read here.
Economy
- India’s capex cycle remains elusive- Increase in new investment projects seen in CMIE’s CapEx database is offset by the lack of revival in completion of announced projects. And, while central government capex spending is up, state government capex spending which is of comparable magnitude is sluggish. Read here.
- India GDP growth halves in September quarter – India’s economic growth pace halved to 6.3 per cent in July-to-September, amid rising repo rates and contraction in manufacturing output. Read here.
- Perhaps, this is one of the best set of statistics to report. Employment by listed companies crossed the 10 million mark in 2021-22. – Listed companies are the best employers and therefore, this big increase in employment by them makes a significant difference to the quality of employment in India. Read here
CAGR Speak
- Not all bank bonds are as safe as they seem. Most retail investors just assume that the call option date in bank bonds to be the same as maturity date and believe that they are getting a higher yield for a lower tenor maturity.Read the linkedin post here.
- We make a living by what we get. We make a life by what we give said Winston Churchill. A few weeks back, we conducted a session on wealth building before the alumni of DAV Public School at Kota. It was a fulfilling experience. Read here.
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That’s it from our side. Have a great weekend ahead!
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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 set forth on 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 on this newsletter.