CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 10-Mar-23 | 03-Mar-23 | Change (%) |
| Nifty 50 | 17412 | 17594 | -0.01 |
| Nifty 500 | 14679 | 14774 | -0.01 |
| Nifty Midcap 50 | 8627 | 8623 | 0.00 |
| Nifty Smallcap 100 | 9326 | 9337 | 0.00 |
Gyaan Ki Baat
A gilt fund is essentially a mutual fund that invests the money pooled from different investors into fixed income government securities.
By investing in gilt funds, you can essentially gain access and exposure to government securities. The government securities that the gilt funds invest in are free from default risk. The sovereign guarantees the repayment, which makes these funds one of the best options for risk averse individuals. Also, these funds tend to offer better interest rates compared to banks.
But investors need to keep in mind that the issuer being government only means that there is no credit risk and liquidity risk, the funds will still have interest rate risk. The fund value will vary with interest rate movement.
Here’s the list of curated readings for you this week:
Personal Finance
- India’s crypto Industry is imploding – Trading volumes across Indian cryptocurrency exchanges fell by around 70% after this tax regime was announced. Read here.
- The biggest fraud in German History – As a bank with no branches, Wirecard kept cash in a safe at the office, and sometimes distributed it to business partners, in sums in the hundreds of thousands of euros, by hiding it in grocery bags. Read here.
- Interest rates and Market Timing – In the short-run stocks can rip your heart out. I don’t know if the bear market is over or if we are in for more carnage. But over the long-run the stock market remains the best bet for beating inflation and compounding your wealth. Read here.
Investing
- Must Read – Unorganized sector seems to be striking back with vengeance – Multiple companies indicated increased competition from unorganized sector in this quarter. One possible reason for this resurgence could be the sharp decline in commodity prices which may be providing a fresh lease of life for the unorganized players. Read here.
- Valuations of Indian equity have normalized – India’s total market cap to GDP is now trading at 92%. FY21, the Buffett Indicator, named after legendary investor Warren Buffett, stood at 104% while in FY22 the figure stood at 112%. However, the indicator remains much above its long-term average of about 79%. Read here.
- The Revolution in medicine supply – Remember how Micro Labs, which makes Dolo, ran into trouble last year? The company was accused of doling out freebies worth a whopping ₹1,000 crores to doctors. Just to get them to recommend Dolo. Read here
- How does Amazon’s Choice work – The whole idea of Amazon’s Choice—to make it easy for consumers to buy something they say they want—sometimes has more problematic outcomes. Read here
- Youtube has created a multimillion-dollar dubbing economy – In the spring of 2021, Farbod Mansorian temporarily moved from his home in Los Angeles to Greenville, North Carolina to pitch one of YouTube’s biggest stars an unexpected idea: taking his act into Spanish Read here
Economy
- Silicon Valley Bank scrambles to reassure clients after 60% stock wipe-out – Thursday’s slump evaporated over $80 billion in stock market value from the 18 banks making up the S&P 500 banks index (.SPXBK), including a $22 billion drop in the value of JPMorgan. Read here.
- India 1Y-10Y yield curve inverts – Market participants said the lack of bond supply by the central government in March has been a major reason for the yields at the longer end to remain capped. Read here
- Why has India’s Power demand surged – Surging power demand in India poses a challenge for a country where solar power is growing rapidly but generation capacity is stretched when the sun goes down. Read here
CAGR Speak
- Women x Money is not a very common relationship – watch 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.