CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 20-Jan-23 | 13-Jan-23 | Change (%) |
| Nifty 50 | 18,027 | 17,956 | 0.4 |
| Nifty 500 | 15,347 | 15,346 | 0.0 |
| Nifty Midcap 50 | 8,755 | 8,747 | 0.1 |
| Nifty Smallcap 100 | 9,569 | 9,675 | -1.1 |
Gyaan of the week
Thematic funds are classified as equity mutual funds which means 80% of asset allocation has to be in equities or equity-related instruments. These funds invest in a specific theme or sector which might have growth potential based on certain macroeconomic factors. For example, the fund invests in companies from specific sectors like technology, energy, etc.
These funds can be high-risk high-return funds if the fund manager is able to capitalize on the growth opportunities present in a particular sector which leads to outperformance. Traditionally, the idea of mutual funds is to diversify the portfolio but by investing in a thematic mutual fund the investor risk gets concentrated in a particular sector/theme. Therefore, it is recommended to have a long-time horizon so that the theme has a higher probability of being played out.
Here’s the list of curated readings for you this week:
Personal Finance
- Zerodha founder talks about need to allow NRIs to open demat account online – Allowing NRIs to open demat accounts online is the low-hanging fruit to attract money to India. The process today is physical and cumbersome. Read here.
- How much Income do you need to be rich in USA? – If you’re interested in understanding how your income compares to others in the U.S. (and whether that makes you rich), then you’ve come to the right place. Read here.
- Pocket Guide for Kids on Personal Finance – Get here.
Investing
- Raamdeo Agrawal says “One should take interest in large unpopular sectors” – Markets reward consistent performers and punishes volatile stocks. Watch here
- Indian IT companies are benefiting from vendor consolidation – “We are seeing an uptick in vendor consolidation,” TCS CEO Gopinathan told analysts in a conference. “We are continuing to gain market share as a result of deepening client relationships and higher win rates” Wipro’s CEO Thierry Delaporte said in a statement on January 1. Read here.
- The GoMechanic Saga – The fine print isn’t out yet. But apparently, the folks at GoMechanic inflated their revenues. Amit Bhasin, the co-founder of GoMechanic, actually confessed to the crime on LinkedIn!!! Read here.
- India’s decade – India is the stand-out performer among emerging equity markets and is expected to outpace all major economies in terms of growth. Read here.
Economy
- Has RBI ever raised rates when Repo was above CPI inflation? – Historically (in the last two decades), there have been four episodes when repo in tightening cycle intersected CPI inflation on the way. Read here.
- Big capex push to continue in FY24, says Barclays’ Bajoria – As a proportion of the total spending, capital expenditure is likely to increase from the current 17% to about 20% in the coming financial year, Bajoria said. Read here.
- All loans to state governments are not safe – The Punjab government has defaulted on repayment of an instalment of Rs 600 crore against a loan that the previous Congress dispensation led by Capt Amarinder Singh had taken to roll out farm loan waiver. Read here.
CAGR Speak
- Indian Ultra HNIs definitely understand compounding. As per a recent study by Knight Frank, Indian ultra HNIs prefer equities and have more than 1/3rd of their investment in equities. Read the linkedin post here.
- In our survey, Retirement comes out to be the most important goal. 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.