CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 17-Feb-23 | 10-Feb-23 | Change (%) |
| Nifty 50 | 17,944 | 17,856 | 0.49 |
| Nifty 500 | 15,003 | 15,015 | -0.08 |
| Nifty Midcap 50 | 8,658 | 8,771 | -1.29 |
| Nifty Smallcap 100 | 9,417 | 9,526 | -1.14 |
Gyaan of the week
What are Arbitrage Funds?
Arbitrage funds are the funds where fund manager buy and sell securities in different markets. The main objective of the fund manager is to exploit the price differences and generate the profit. The investor here can expect the returns same as short term debt returns. The taxation in arbitrage funds is treated same as Equity mutual funds. In Volatile market conditions, arbitrage funds can be a good fit as they can generate good returns by taking less risk. The time horizon for an investing in arbitrage funds should be minimum 3 months.
Here’s the list of curated readings for you this week:
Personal Finance
- Index Fund or ETF? – In terms of cost (Expense Ratio), ETFs are cheaper than Index Funds (even after accounting for transaction costs that investors will have to bear if ETF units are bought on exchanges). However, an important point of distinction is the liquidity of ETFs on exchanges and thus, the resultant impact cost. Read here.
Investing
- AIA Engineering – Stocks in Baat – Our investment thesis on the world’sSecond Largest Hi-Chrome casting producer. Read here
- Factor Investing primer –DSP MF – Factors are the building blocks of investing. They are persistent drivers of long term excess returns that research has proven to be time tested across geographies and asset classes. Understanding how factors work can help investors to make more informed decisionsRead here
- When ‘Loss Aversion’ Meets ‘Time Horizons’ in Equity Investing – A short-term (sub-3-years) horizon-focused investor tends to be perennially unhappy despite her portfolio generating very healthy returns over longer time periods. In contrast, with the same portfolio and with the same returns, an investor with a longer time horizon experiences happiness. This extraordinary paradox lies at the heart of why so few investors succeed in achieving satisfactory results from investing in equity markets. Read here
Economy
- Have investors frozen in the headlights of rising inflation and interest rates? – We think that even as inflation falls, the new normal is more like 4 percent than 2 percent. Rates will not fall back to anywhere near zero. A new era will bring new winners and losers in the market. Here are five of the ways we see tight money changing the world in 2023. Read here
- Can India become a Lithium Superpower?– We aren’t sure if it’s an economically viable source of deposit yet. The 5.9 million tonnes is just a preliminary estimate. Read here.
- Emerging Market Insights – Global currencies started outshining the US dollar toward the end of last year, giving a boost to international equities. With the tide likely turning for emerging markets in 2023, one should look at the future outlook for emerging economies and the emerging key trends & developments for 2023. Read here.
- India’s economy and emissions primed for big jumps in 2023 – India’s electricity output scaled record highs in 2022 even though manufacturing output in key sectors remained below highs. Although the concern remains for recession likely to hit in 2023, positive expectations for India across the financial community suggest growth in businesses across all sectors leading to increased energy consumption along with a commensurate rise in emissions. Read here
- The rise in CPI inflation and the data discrepancy – Overall inflation rose to a three-month high of 6.52%, above the central bank’s comfort band of 2%-6%, raising the prospects of further interest rate hikes. Part of the sharp rise in cereal inflation last month, say economists, was due to data discrepancies. Read here.
CAGR Speak
- The curious case of MCX struggle with its Tech vendor. Read the linkedin post here.
- Encouraging women to prioritize financial independence is my personal passion project.- Shruti. 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.