CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 13-Oct-23 | 6-Oct-23 | Change |
| Nifty 50 | 19,734 | 19,651 | 0.42% |
| Nifty 500 | 17,376 | 17,292 | 0.48% |
| Nifty Midcap 50 | 11,610 | 11,543 | 0.58% |
| Nifty Smallcap 100 | 12,891 | 12,848 | 0.33% |
Chart Ki Baat
Gyaan Ki Baat
Tracking error is a critical concept in the world of finance and investment, primarily associated with index funds and their performance relative to the market. Beta, a measure of an asset’s volatility compared to the market, is set at 1 for the market. Index funds, designed to replicate a market index, ideally have a Beta of 1 and should, in theory, earn the same returns as the overall market.
However, the reality is that index funds can deviate from the market’s returns, and this deviation is quantified as the tracking error.
Here’s the list of curated readings for you this week:
Personal Finance
- The large cap active Mutual funds’ underperformance story continues – As per the recently released SPIVA report by S&P, in the first half of 2023, majority of Indian Equity Large-Cap funds failed to beat their benchmark, with 58% of actively managed funds underperforming the S&P BSE 100. Read here
- SEBI is like the police that make an appearance in the final scene in a Bollywood movie, you are the hero: SEBI whole time member to MF industry- He also said lauded the MF industry for being “a fantastic ambassador for the securities market” by helping with financial inclusion within the securities market ecosystem. Read here
- Business Trips have evolved – The Traveller Value Index 2023 report by online travel company Expedia notes that 76% of participants wish to extend their work tripfor leisure purposes, and 28% plan to opt for a flexication. Read here.
- The Thin Line Between Bold and Reckless – The hardest thing about studying businesses and investors is that many traits that fueled their success could have just as easily triggered failure. But we rarely think about it that way when learning from specific outcomes. Read here
- How do I become a stock investor / start investing in stocks / get better at stock picking? – Shruti outlines her perspective – I personally think no course can “teach” stock investing. While courses speed up the learning curve, the real learning happens by getting hands dirty. Read here.
- The Big Picture – A Synthesists’ perspective on few Mega Trends – 8 mega themes spanning multiple decades & how it may shape investment ahead. Read here.
- We are all wet cement – Loved this conversation with Todd Combs of Berkshire. Read here
- End of lock-ins may bring a flood of shares to Street- The next four months could see a massive supply of shares, potentially reaching up to $12 billion from about 40 companies, excluding state-owned firms that went public in the last two years. This surge arises as various lock-in periods are set to expire for both promoters and investors who participated in pre-IPO placement. Read here.
- Premiumization is becoming a theme in every sector – One thing which surprised me was that 42% of the respondents plan to purchase a premium smartphone (INR 30,000 or ~$360 and above). Read here.
- India’s festival season spurs online shopping spree – RedSeer, a Bangalore-based consultancy, which monitors over 100 platforms covering 90% of online sales, predicts virtual shoppers will spend a record $11 billion during the month to mid-November – which would be nearly 20% more than last year. Read here.
- Cricket fans throng hospitals for overnight stay amid Indo-Pak hysteria – Several doctors told local media the rush for check-up ‘packages’ was an ingenious way to find affordable accommodation as hotel costs have soared up to 20 fold ahead of the match. Read more.
- India’s retail inflation eases to three-month low in September – Annual retail inflation rose 5.02% in September, down from 6.83% the previous month. 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 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.