CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 06-Jan-23 | 30-Dec-22 | Change (%) |
| Nifty 50 | 17,859 | 18,105 | -1.36 |
| Nifty 500 | 15,272 | 15,448 | -1.14 |
| Nifty Midcap 50 | 8,752 | 8,751 | 0.01 |
| Nifty Smallcap 100 | 9,656 | 9,731 | -0.77 |
Bazaar Ki Baat
In the December edition of “Bazaar Ki Baat”, our founders briefly discussed what moved the market in December, the Small Savings scheme interest rate formula, the return of debt funds, and many more interesting topics. Watch here.
Gyaan of the week
RBI Floating rate saving bond (RBI Bonds) is one of the safest investment options available for individual investors in India. The floating interest rate on these bonds is paid semi-annually and is linked to NSC. They have a fixed tenor of 7 years. The interest income is fully taxable at an individual slab rate. The current interest rate is 7.35%.
It can be an attractive investment option for Investors looking for safety and a higher interest rate than fixed deposits. Senior citizens, who have surplus funds beyond their liquidity needs, can also find these bonds attractive.
Here’s the list of curated readings for you this week:
Personal Finance
- Only 16% Indian households plan to invest in 2023. As the consumer spending sentiment increases for the majority of Indian households, the investing sentiment remains low, with 78 percent of people saying that they won’t invest in 2023, according to the India Consumer Sentiment Index, a monthly analysis of consumer perception compiled by Axis My India. Read here.
- The Save-Invest Continuum.- The idea is that early on in life (or when you have fewer assets to your name) your savings have a bigger impact on your wealth and later on in life your investments have a bigger impact. Read here.
- Latest IRDA claim settlement ratios- Based on this, we can easily assume how customer-friendly they are in dealing with death claims. However, I warn you that this claim settlement ratio is raw data. It will not give you a clear picture of what types of products they settled. They may be Endowment plans, ULIPs, or Term Insurance Plans. Hence, this is not the sole criterion in judging the performance of a life insurance company. Read here.
- SEBI punishes DSP AMC, trustees for undercutting scheme expenses to woo investors. – The capital market regulator imposed a penalty of Rs 1 lakh each on the fund house and its trustee company for absorbing a chunk of its recently launched scheme’s- DSP Nifty 50 ETF- expenses on the AMC’s books, in violation of SEBI rules that state that all scheme-related expenses must be borne by the scheme. Read here.
Investing
- Why you should Invest in the stock market – Owning shares in the stock market gives you access to the profits, dividends, sales, growth, innovation and ingenuity of the biggest and best companies in the world. Read here.
- Indexing Evolution in Indian Market – 294 index-based products with aggregate assets of INR 6.46 lakh crore account for 16% of the total industry as of November 2022. Read here.
- Three Scenarios for Fed Policy, Inflation and Growth– We consider three scenarios and their impact on a diversified portfolio: sticky inflation, a soft landing and global recession. In the worst-case scenario of global recession, a composite portfolio could lose as much as 11%.Read here.
Economy
- Growth challenges in 2023 – what seems to be happening now is that the corporate sector is raising leverage without increasing investments appreciably. Read here.
- EPFO data show fall in employment– The good old EPFO Annual Report tabled in Parliament with a lag of about 9 months is still the best provider of this data. And, it suggests that employment fell during 2020-21 and stagnated in 2021-22.Read here.
CAGR Speak
- You probably won’t pick the best-performing stock in 2023. Read the linkedin post here.
- Small Savings scheme hiked. The hike in NSC (6.8% to 7%) will also lead to an increase in the yield of RBI Bonds, which is linked to the NSC interest rate. 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!
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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 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.