CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 09-Dec-22 | 02-Dec-22 | Change (%) |
| Nifty 50 | 18,496 | 18,696 | -1.06 |
| Nifty 500 | 15,812 | 15,963 | -0.94 |
| Nifty Midcap 50 | 8,917 | 8,994 | -0.85 |
| Nifty Smallcap 100 | 9,969 | 10,079 | -1.09 |
Bazaar Ki Baat – Nov 2022
In this month’s edition of “Bazaar Ki Baat”, our founders discuss in brief about what moved the market in November, how the corporates fare in Q2, the case for Target Maturity funds, and many more such interesting topics. Watch here.
Gyaan of the week
A total return Index is an index created to track capital appreciation as well as dividends. The total return index reinvests all the dividends within the company as retained earnings. The total return Index is a way to include every part of the return and not just the price index. Total return indices help show an investor’s complete return by including dividends in an investor’s return. For example, if we buy 1 unit of total return index at Rs 100 and it offers Rs 8 as a dividend. The stock has increased by 20% to Rs 120. The nominal return is 20%. By reinvesting the dividend, assuming we gained an additional Rs 2 in value. The investment is worth Rs 130. The total return is 30%.
Here’s the list of curated readings for you this week:
Personal Finance
- FinMin allows PSUs to invest surplus cash in debt schemes of private MFs – India’s finance ministry has liberalised investment norms governing the deployment of surplus cash at state-owned companies, expanding the universe of approved debt plans beyond the current bailiwick of fixed-income investment schemes run exclusively by public-sector mutual funds. Read here.
- What is ChatGPT? – Artificial Intelligence (AI) research company OpenAI on Wednesday announced ChatGPT, a prototype dialogue-based AI chatbot capable of understanding natural language and responding in natural language. It has since taken the internet by storm and already crossed more than a million users in less than a week. Read here.
- ESIC to invest up to 15% surplus funds in stock market via ETFs – Employees’ State Insurance Corporation (ESIC) accorded approval for investments of surplus funds in equity, however, restricted to Exchanged Traded Funds (ETFs). Read here.
- Anyone who has become rich twice is dumb–Why would you risk what you need and have for what you don’t need? If you are already rich, there is no upside to taking on a lot more risk, but there is disgrace on the downside said Warren Buffet. Read here.
Investing
- Common Critiques of Bitcoin and rebuttals to each– Bitcoin faces plenty of criticism, some justified, some easily refuted. Here we catalogue common criticisms of bitcoin, and rebuttals to each. Read here.
- Investor Safir Anand says 2023 will be a better year than 2022 – Safir’s portfolio is almost in equities and I intend to keep it that way for now. Read more here.
Economy
- India central bank says inflation battle not over, raises rates again- While there have been signs recently that price pressures may be moderating, Reserve Bank of India (RBI) Governor Shaktikanta Das said the main risk was that inflation could remain pervasive and elevated, reinforcing market views the central bank could hike rates again in coming months. Read here.
- Zerodha founder talks about UPI block money features impact on the broking industry – RBI’s announcement of allowing single block and multiple debits on UPI can potentially have some interesting outcomes for the broking industry.Read the Twitter thread here.
- RBI Governor explains the difference between UPI & CBDC. – Reserve Bank of India (RBI) governor Shaktikanta Das clarified the key differences between the Central Bank Digital Currency (CBDC) and Unified Payments Interface (UPI), saying e-rupee transactions will not have any intermediary, unlike UPI transactions. Watch here
CAGR Speak
- There is a fundamental difference between how a domestic investor views India equity returns and how a Foreign Investor looks at it. Read the linkedin post 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.