CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 27-Jan-23 | 20-Jan-23 | Change (%) |
| Nifty 50 | 17,604 | 18,027 | -2.35 |
| Nifty 500 | 14,874 | 15,347 | -3.08 |
| Nifty Midcap 50 | 8,463 | 8,755 | -3.34 |
| Nifty Smallcap 100 | 9,242 | 9,569 | -3.42 |
Gyaan of the week
Most ETFs or Exchange traded funds track indices, meaning they aim to match the performance of a list of stocks or bonds such as the Nifty 50 Index or the Bharat Bond ETF. ETFs are similar to stocks which can be bought and sold at a price prevailing at the time of transaction. There are different types of ETFs like Index ETFs, Fixed Income ETFs, Commodity ETFs, Foreign market ETFs, etc.
ETFs are cost- efficient as ETFs have a lower expense ratio compared to actively managed funds. ETFs are passively managed so they tend to reduce the managerial risk involved in active mutual funds. Further, ETFs are only available on stock exchanges, so you need to have a demat account to trade them, while for index mutual funds you don’t need a demat account.
Here’s the list of curated readings for you this week:
Personal Finance
- Nine out of 10 equity F&O traders lose money – Data for the study has been collated from the top 10 brokers in the country. The total number of traders in the sample witnessed a 500 percent increase between FY19 and FY22. In FY19, 7.1 lakh traders were included in the sample which ballooned to 45.2 lakhs in FY22.
- IFAs help investors to remain patient and disciplined – The data further reveals that 25% of regular AUM stayed invested for over 5 years, as against only 13% of direct AUM. Read here.
- FOMO: the worst financial trait – Afunny thing about money is that it’s a negative art. You often have a better chance of accumulating more of it by getting rid of bad traits vs. acquiring good ones Read here.
- Are we becoming Information Obese? – By limiting the amount of things that want their attention, they are able to conserve their precious attention to the few tasks that really matter. And once they decide what they wish to do, they are able to attend to the task with full force. All their eyes, mind, intellect and efforts are devoted to the task at hand. Read here.
- Have Yes Bank’s AT1 Bondholders Truly Won? The high court’s decision in the Yes Bank matter could very well be characterised as a success for a group of motley investors winning over a bank backed by the RBI. But will it matter? Read here.
Investing
- Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History – Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades. – Hindenburg Research Read here
- Adani Group provides a rebuttal – Adani Group responded to the 88-questions raised by Hindenburg Research in its Jan. 24 research report on Adani Group. Read here
- How Many Stocks Should You Own? In order to avoid significant potential shortfalls in terminal wealth, long-term investors should hold at least 200 stocks in their portfolio to more reliably achieve the full potential of the stock market. Read the research paper here
- Why are investors now convinced that a tail event is unlikely despite the obvious headwinds? Because so far, it hasn’t happened. Recency bias also explains why tail protection was so expensive in the midst of the QE-fueled bull market. Read here.
Economy
- Private Sector Capex growth unlikely – While the announcement of new projects by the private sector is rising, completion of projects by them is falling. Read here.
- Investors are allocating cash back to European equities and cutting exposure to Wall Street, where pricey tech stocks are getting hammered by rising rates. Read here.
- The impact of China reopening – From Oct. 31, 2022 (recent market trough), to Jan. 17, 2023, the MSCI China Index was up 51.7%. Read here.
CAGR Speak
- More than 10% of clients sourced through Social media influencers for a listed company. Says DHRP of a listed broking house. Read the linkedin post here.
- Why are people not thinking about financial planning. Read the linkedin post here.
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Check out CAGRwealth smallcase portfolios 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.