CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 22-Sep-23 | 15-Sep-23 | Change |
| Nifty 50 | 19,674 | 20,192 | -2.56% |
| Nifty 500 | 17,261 | 17,666 | -2.29% |
| Nifty Midcap 50 | 11,495 | 11,636 | -1.21% |
| Nifty Smallcap 100 | 12,476 | 12,794 | -2.48% |
Chart Ki Baat
For the first time ever, the number of folios in small-cap schemes overtook those in similarly managed large- and flexi-cap funds in August
Gyaan Ki Baat
When evaluating performance track record of funds, it is useful to look at rolling returns and not just trailing returns.
Rolling returns are returns for a particular period calculated on a continuous basis. It is similar to calculating trailing returns every day for a period of time. Taking the average of such returns helps to get a realistic view of fund performance.
Here’s the list of curated readings for you this week:
Personal Finance
- Small Caps Surpass Large Caps on Folios as Investors Flock to Mutual Funds – For the first time ever, the number of folios in small-cap schemes overtook those in similarly managed large- and flexi-cap funds in August, according to AMFI data. Read here.
- Why do sports stars go broke? – A common thread connecting tales of millionaire sportspeople going broke is either a lack of financial advice or, worse still, bad advice. Read here
- What does one need to be a value investor? It is the mindset that Klarman stresses when he speaks to business school students about investing.Read here
- JPMorgan Sees India Share Sale Boom Reaching $30 Billion in 2024 – India will see at least $30 billion raised annually through primary and secondary share sales in 2024 and in the years to come, as companies and their shareholders are more willing to tap the market for funding, according to JPMorgan Chase & Co. Read here.
- Money can bring happiness but it also brings complexity – It is easier to spot other people’s mistakes than your own because we judge others based solely on their actions, but when judging ourselves we have an internal dialogue that justifies our mistakes and bad decisions. Read here.
- The Problem of Plenty – Cash flow from operations of listed India Inc have almost gone up by 80% from pre-covid run-rates. Now that companies are generating excess cash flows, will the promoters or management be able to utilize the same judiciously or we will end up squandering this advantage. Read here.
- Finding which factor strategy suits a particular macro environment or stages of business cycle – Factor strategies have consistently demonstrated long-term outperformance, but in the short term, individual factors tend to exhibit cyclical patterns. Read here.
- Investors seem to be still underweight EM by any measure based on the size of their economies or markets or earnings or efficient risk allocation methodologies. Read here
- Sankaran Naren: 11 brilliant lessons learnt over 3 decades – Sankaran Naren is the Executive Director and Chief Investment Officer at ICICI Prudential Mutual Fund, where he oversees assets of around Rs 6 lakh crore. Read here.
- Almost 30% of BSE 500 companies are reporting year-on-year sales contraction. While the margins have experienced a significant improvement in the past quarter, it is majorly owed to deflation in wholesale price. Read here.
- IBC mechanism effective but challenges remain – The overall recovery rate of IBC is stuck at 31.62% till Q1FY24, implying a haircut of approximately 68% for creditors. Read here.
- There is no distress, clarifies Finance Ministry on drop in household savings – They added financial assets by a lesser magnitude than in the previous years because they have now started taking loans to buy real assets such as homes. Read here.
****
Check out CAGRwealth smallcase portfolios here.
****
That’s it from our side. Have a great weekend ahead!
If you have any feedback that you would like to share, simply reply to this email.
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.