CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 16-Dec-22 | 09-Dec-22 | Change (%) |
| Nifty 50 | 18,269 | 18,496 | -1.22 |
| Nifty 500 | 15,636 | 15,812 | -1.13 |
| Nifty Midcap 50 | 8,831 | 8,917 | -0.96 |
| Nifty Smallcap 100 | 10,017 | 9,969 | 0.48 |
Gyaan of the week
State Development Loans (SDLs) are debt securities issued by State Governments. Generally, SDLs are issued for 10-year maturity and offer higher returns than central government securities. SDLs have lesser risk than AAA corporate bonds as it is backed by Sovereign Guarantee. Please see our recommendation for SDLs if you are investing for more than 2 years.
Here’s the list of curated readings for you this week:
Personal Finance
- When to bet big and when not to – In essence, you don’t have to be right a lot, you just have to be right about your big bets at the right time. Here, while the probabilities matter a lot, so do the consequences i.e., the amount of possible gain/loss. It is important to get that equation right. Read here.
- Moneycontrol Mutual Fund Summit. How will actively managed funds generate alpha – The entire panel said they were Overweight on financials at the moment, on the back of good earnings visibility and strong asset quality. Read here.
- Crypto: Financial Hazard or Diversification Tool? – With all the negativity generated by the crypto market’s volatility and the FTX collapse, cryptocurrencies have a serious image problem, to put it mildly. But they might be worth a closer look, according to an Enterprising Investor blog post. Their conclusion: Crypto’s low positive correlation with mutual funds and ETFs and weak correlation with traditional assets might prove useful for certain investors. Read here.
- Bonds and Fixed Income: Where’s the Hedge? – Of course, bonds and other fixed-income assets are supposed to offer diversification benefits and provide something of a cushion for when the equity component of a portfolio runs into rough times. Clearly, they are not performing these functions especially well of late. Read here.
Investing
- How to do Business Analysis of Construction Companies– Dr. Vijay Malik writes about the factors that impact the business of construction companies and the characteristics that differentiate a fundamentally strong construction company from a weak one. Read here.
- Anant Goenka’s CEAT-Zensar balancing act– Interesting read on the two RPG group companies CEAT and Zensar. Read more here.
- The case for NASDAQ Index fund investment – Nasdaq 100 is one of the most recommended and preferred destinations for Indian equity investors because they offer geographical diversification. Read here.
Economy
- India Headline inflation falls sharply, but core inflation persists- Given that monetary policy primarily tackles core inflation, the latest data shows it may be premature to say that the rate hikes delivered by the RBI so far have started having an impact. Nor is it safe to rule out a resurgence of inflation if food prices were to rise again, as they typically do during summers. Read here.
- Big enterprises are better employers – Broadly, it is evident that the wage rate is directly proportionate to the size of the company. Apparently, it would thus be much better if India has many more large companies than small-sized companies. Read here.
- Fed’s Powell says inflation battle not won, more rate hikes coming. – The Federal Reserve will deliver more interest rate hikes next year even as the economy slips towards a possible recession, Fed Chair Jerome Powell said on Wednesday, arguing that a higher cost would be paid if the U.S. central bank does not get a firmer grip on inflation. Read here
CAGR Speak
- Shruti talks about sessions for the leap.club members last week. It was enlightening to see women take time out over a weekend to learn more about their own personal finance. 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.