CAGR Insights – 31 Oct 2024

CAGR Insights is a weekly newsletter full of insights from around the world of the web.

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Chart Ki Baat

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India’s GDP Growth Forecast

Gyaan Ki Baat 

The Art of Delayed Gratification

In the fast-paced world of instant gratification, the ability to delay immediate pleasure for greater rewards in the future is a powerful tool, especially in personal finance. This concept, often called delayed gratification, can significantly impact your financial health.

Why Delay Gratification?

  1. Build Wealth: Instead of splurging on every desire, saving and investing that money can lead to compound growth over time. Imagine the potential of that coffee shop budget turned into investments—what could that grow into?
  2. Achieve Financial Goals: Whether it’s a dream home, a vacation, or a comfortable retirement, every goal requires discipline. By prioritizing saving over spending, you’re actively paving the way toward those dreams.
  3. Reduce Financial Stress: Living within your means and prioritizing savings can create a financial cushion, reducing anxiety around unexpected expenses or emergencies.

In essence, mastering the art of delayed gratification not only strengthens your financial position but also fosters a mindset that values long-term benefits over short-term pleasures. So, the next time you’re tempted to make an impulsive purchase, remember: the joy of saving today can lead to a brighter financial future tomorrow!

Personal Finance

  • Planning to exchange old jewellery for new? Know the income tax rules: Did you know that selling your old jewellery could lead to unexpected tax liabilities? With new rules introduced in Budget 2024, it’s crucial to understand the nuances of capital gains tax and explore alternatives like digital gold to maximize your savings! Read here

  • New credit card rules: SBI Card increases this credit card charges from November 1, 2024; check details: SBI Card has announced an increase in finance charges on all unsecured SBI Credit Cards, effective November 1, 2024. The new rate will be 3.75% per month, up from the current 3.50%. Notably, this change does not apply to the Shaurya Defense card. Read here

  • GST returns to become time-barred: No filing after 3 years: The GST Network will restrict the filing of certain GST returns more than three years past their due date, effective early 2025. Taxpayers must reconcile and file returns within this timeframe to avoid penalties, including potential registration cancellation and best judgment assessments by the GST department. Read here

Investing

  • How will the Equity Issuance Tsunami affect the market? The Indian stock market has seen a surge in demand due to increased household savings and institutional investments. However, a rise in supply from IPOs, promoter sales, and private equity exits is balancing this demand. Investors should be cautious and focus on long-term investing, considering the potential impact of increased supply on market valuations. Watch here

  • Elcid Investments, India’s costliest stock went from ₹3 to ₹2,36,250. Here’s how: Once a humble penny stock at ₹3.21, Elcid Investments has rocketed to ₹2,36,250 per share, outshining even MRF! This jaw-dropping rise follows a BSE relisting, fueled by its prized 2.95% stake in Asian Paints—worth a staggering ₹8,500 crore—making it a powerhouse on Dalal Street. To learn more about how this transformation happened. Read here

  • SEBI wants mutual funds to deploy NFO proceeds within 30 days: SEBI has issued a consultation paper proposing that Asset Management Companies deploy funds from New Fund Offers within 30 business days of allotment. Non-compliance could lead to restrictions, including a ban on launching new schemes and mandatory reporting to trustees. Read here

Economy & Sectors

  • India’s job crisis: Getting better or worse? | Modi Govt’s record on employment: After a decade under Modi, India’s employment scene shows mixed progress. Employment rates have risen, yet the job quality lags, with most growth in low-wage informal sectors. The question remains: can government-driven initiatives bring enough quality jobs to meet demand, or will the private sector need to step up? Watch here

  • Why is India’s GDP growth so high but bank credit & consumption are slack, asks Swaminathan Aiyar? The finance ministry warns of growth risks from geopolitical issues and high valuations. Swaminathan Aiyar notes Indian market resilience relies on domestic investments, while the RBI’s cautious stance may lead to challenges in addressing inflation and growth. Read here

  • Economy ‘satisfactory’ in H1 of fiscal; choppy waters ahead, Finmin report: India’s economy showed satisfactory performance in H1 FY25, with projected growth between 6.5% and 7%, despite risks from geopolitical conflicts and elevated valuations. However, Nomura cautions of a cyclical slowdown, citing factors like high interest rates and declining urban demand. Read here

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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.

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