CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 05-Apr-24 | 28-Mar-24 | Change |
| Nifty 50 | 22,526 | 22,327 | 0.89% |
| Nifty 500 | 20,720 | 20,255 | 2.29% |
| Nifty Midcap 50 | 13,979 | 13,527 | 3.34% |
| Nifty Smallcap 100 | 16,354 | 15,270 | 7.09% |
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Gyaan Ki Baat
A turnover ratio is the percentage of stocks and other assets in a mutual fund that have been replaced over the course of a year. This number can vary depending on the type of mutual fund, its investment goals, and the portfolio manager’s investing approach. Assessing mutual funds through this metric is valuable in determining which ones are suitable for inclusion in your investment portfolio.
The mutual fund turnover ratio can affect how much you spend on owning the fund. When the turnover ratio is high, you might end up paying more for things like brokerage fees and bid-ask spreads. You can locate the turnover ratio in the mutual fund company’s most recent financial statement. It usually falls somewhere between 0% and 100%, though for actively managed funds, it can be even higher. A turnover rate of 0% means that the fund’s investments haven’t changed at all over the past year.
Here’s the list of curated readings for you this week:
Personal Finance
- Embracing Conviction – Navigating the challenges of investment emotions, a reminder of long-term investor principles amidst short-term pressures and behavioral tendencies. Read here.
- The Art of Reconnaissance in Investing – The importance of thorough due diligence in investing, emphasizing the necessity of on-the-ground research and personal interaction for uncovering deeper insights beyond surface-level analysis. Read here.
- Selling the Story – The article explores how individuals often shape their narratives to emphasize struggles, particularly in the financial space, to sell stories and advice, highlighting the importance of scrutinizing advice based on its merit rather than the storyteller’s background. Read here.
Investing
- Reality Check of Retail Investing in India – Retail investors from smaller towns are flocking to the Indian stock market, fueled by speculative trading and influenced by finfluencers, amid warnings of overvaluation and risks from regulators and seasoned investors. Read here.
- Transition in Banking Investment Portfolios – RBI’s new guidelines on investment classification and valuation aim to align Indian banking standards with IFRS, allowing for greater flexibility but requiring prudent management of securities portfolios. Read here.
- Decoding the Small Cap Cycle – The article evaluates whether small caps are in a bubble using a comprehensive six-lens framework, indicating caution due to red signals in long cycle, valuations, flows, past performance, despite strong fundamentals. Read here.
- New KYC Rules on Hold for existing investors – Mutual fund investors relieved as accounts won’t be blocked despite missing the KYC deadline, however the new KYC rules still apply for new investors. Read here.
Economy
- The Evolution and Future of Securitisation in India – Securitisation in India has evolved from mortgage-backed securities to asset-backed securities, but further growth hinges on addressing gaps in regulation, expanding into new asset classes, and enhancing market transparency and participation. Read here.
- RBI Keeps Interest Rates Steady Amid Robust Growth and Inflation Concerns – The Indian central bank kept its key interest rate unchanged at 6.5% for a seventh consecutive meeting, citing robust economic growth and persistent inflation above the 4% target. Read here.
- India’s Fixed Income Market at an Inflexion Point – India’s fixed income market poised for growth amidst favorable demand-supply dynamics and global rate expectations, prompting strategic portfolio adjustments. Read here.
- Unlocking India’s Potential – Professor Aswath Damodaran outlines India as a significant investment opportunity while addressing the obstacles it must overcome and the necessary reforms for realizing its economic strength. Watch 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.