Category: CAGR Insights – weekly newsletter curated by Kshitiz

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

Chart Ki Baat

Gyaan Ki Baat 

The Power of “Tax-Loss Harvesting” for Reducing Tax Liabilities

Tax-loss harvesting is a strategy that involves selling investments at a loss to offset capital gains taxes on other profitable investments. This approach can be especially useful when you’re looking to reduce your tax bill at the end of the financial year. You can balance out your gains and minimize taxable income by realizing losses in underperforming assets. It’s important to repurchase similar assets after a waiting period to avoid “wash-sale” rules, but this strategy can significantly improve your overall tax efficiency, making it a powerful tool for savvy investors.

Personal Finance

• NRIs can use UPI for fee-free transactions with people in India: The NPCI has extended UPI access to NRIs holding NRE/NRO accounts. NRIs can now make fee-free UPI transactions using international mobile numbers through apps like PhonePe, iMobile, and BHIM. The service is available in several countries and has a daily transaction limit of ₹1 lakh. Read here

• RBI makes six amendments to know-your-customer (KYC) rules: The Reserve Bank of India (RBI) has announced amendments to the Master Directions on Know Your Customer (KYC) on November 6, 2024, and the amended provisions in the Master Direction shall come into force with immediate effect. Read here

• Nearly 3 in 4 Posts on Social Media With Financial Advice Are ‘Misleading,’ According to a New Report: Nearly three-quarters of financial advice on social media is misleading, a new report reveals. Don’t let bad advice ruin your financial future. Protect yourself by verifying information from reliable sources. Read here

Investing

• Federal Reserve cuts interest rates by a quarter point: The U.S. Federal Reserve cut its interest rate by 0.25% to a 4.5%-4.75% range, focusing on balanced economic risks. Chair Powell emphasized that monetary policy remains restrictive to maintain employment and inflation goals despite positive economic data. Read here

• A Framework For The Cyclical Industries: Cyclical industries offer unique investment opportunities. By understanding the underlying factors driving these cycles, investors can identify undervalued companies poised for future growth. Read here

• RBI ‘watchful’ of unsecured loan flows into stock market says Shaktikanta Das: RBI Governor Shaktikanta Das cautioned banks to monitor unsecured loans potentially entering the stock market, citing anecdotal evidence but no concrete data. RBI has increased regulatory scrutiny, setting lending caps, though systemic risk remains low for now. Read here

• Sebi Allows MFs to Invest in Foreign Funds with Indian Assets: SEBI has allowed Indian mutual funds to invest in overseas mutual funds or unit trusts with up to 25% exposure to Indian securities. The move aims to ease investments, enhance transparency, and prevent conflicts of interest, effective immediately. Read here

Economy & Sectors

• Quick Commerce – Can it revolutionize the retail industry? Quick commerce is the future of retail. Imagine your groceries arriving in minutes, not hours. Companies like Zepto, Blinkit, and Instamart are making this a reality, transforming the way we shop. Watch here

• India may seek a deal to blunt Trump’s tariff threat: The Trump presidency may offer India trade opportunities, particularly if it adapts to tariff hikes and negotiates concessions on key products. India’s strong export surplus with the US could face risks, but cooperation in areas like defense, services, and technology may grow. Read here

• Indian economy expected to follow its natural course of modest growth: India’s economic journey is filled with promise, driven by strong services exports and remittances. While challenges remain, including government spending and investment gaps, the country’s entrepreneurial spirit and steady growth offer a solid foundation for future prosperity. Read here
  

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.

• CFF (launched in June 2022) – Ranked 1^st amongst smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.

Do check it out 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.

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

Chart Ki Baat

Gyaan Ki Baat for this week:

Relaxation on KYC with effect from 1st June 24.

1. KYC status Validated: All kinds of investor are allowed to transact in both existing and new folios.
2. KYC status registered: Resident individual investor can invest in existing mutual funds and NRI’s can transact in both existing and new mutual funds.
3. KYC Status Hold: All the investors are restricted to invest.

Here’s the list of curated readings for you this week:

Personal Finance

• What Quant Mutual Fund Investors Need to Know Amid SEBI Investigation? The SEBI investigation into Quant Mutual Fund over a front-running crisis has led to significant investor redemptions, totalling Rs 1,400 crore in three days. Despite this, the net asset values of many Quant Mutual Fund schemes have remained stable or even increased. Financial advisors recommend continuing with current investments due to Quant’s historically strong performance and unique quantitative investment approach, which minimizes reliance on individual fund managers. Read here
  
  
• Government Initiative- Uniform KYC Implementation in Financial Services: The Modi 3.0 government is actively pursuing the implementation of uniform KYC across the financial services sector. SEBI has mandated KYC registration agencies (KRAs) to upload verified KYC details of all capital market investors into the Central KYC Records Registry (CKYCRR) by August 1, 2024. This move aims to streamline KYC processes across financial products. Read here
  
  
• Balancing Judgments- Process, Luck, and Investing Outcomes: Investing outcomes can be a product of process or luck or both. In the current markets, this thought is a good way to step back and think of the broader picture. It is possible that a lot of us are getting swayed into judgements because of an outcome we like to see. But outcomes should only be one variable of a judgment, not the driver itself. Read here

Investing

• Overlooked Skills for Modern Success: The passage discusses several overlooked yet valuable skills necessary for navigating life effectively. Franklin D. Roosevelt’s resilience, characterized by accepting inconveniences, scepticism, respectful disagreement, effective communication, clarity, and acknowledging luck alongside risk, is crucial for a competitive advantage. These skills, often undervalued in contemporary contexts, are essential for personal growth, effective communication, and decision-making in various aspects of life. Read here
  
  
• The Importance of Exceptional Leadership: The author categorizes successful leaders into four groups: 1) Repeat Winners- Leaders with a proven track record of growing businesses. 2) Overlooked Superstars- Leaders who shine during a turnaround or step up from second-in-command roles. 3) Batman and Robin Combinations- Pairs of leaders who complement each other, like Warren Buffett and Charlie Munger. 4) First Time Founders/CEOs- New leaders showing promise through their actions and decisions. Read here
  
  
• Regulatory Reforms for RIAs- SEBI’s Proposed Changes: SEBI is planning to ease regulations for registered investment advisors (RIAs) with new proposals expected in July. These changes may eliminate the need for RIAs to renew certifications every three years, increase the client limit from 150, and remove experience requirements for assistants. This move aims to address RIAs’ concerns about compliance burdens and facilitate their operational flexibility. Read here
  
  
• RBI’s Dominance in India’s Bond Markets- Deciphering the Whisper: Stanley Druckenmiller’s 2015 speech emphasized the importance of central banks in the Indian bond markets, particularly the Reserve Bank of India (RBI). The RBI’s unpredictability and domestic factors drive policy decisions, surprising consensus forecasts in one out of every five meetings since 2010. Despite its limited influence on equity and forex markets, staying attuned to RBI moves is essential for bond market participants in India. Read here

Economy

• RBI’s Monetary Policy Committee Split Over Rate Cut: The RBI’s Monetary Policy Committee has a disagreement over whether to change the policy repo rate, which has been at 6.5% since February 2023. Two external members, Ashima Goyal and Jayanth R. Varma, propose a 0.25% rate cut to boost growth and reduce unemployment. However, RBI Governor Shaktikanta Das and other internal members argue the rate should remain due to high food prices. Watch
  
  
• Crude Oil Demand to Peak: A Positive for India? The International Energy Agency predicts that global crude oil demand will peak by 2029 and decline, with rising oil supplies from countries outside OPEC+ potentially lowering prices. India, which imports a significant amount of crude oil, could benefit from lower oil prices as it reduces its import bill. The country is also focusing on reducing oil dependency through electric vehicles, green hydrogen production, and biofuels. Read here
  
  
• India’s Rapidly Growing Luxury Market: India, traditionally a smaller player in the global luxury market at 5%, is experiencing rapid growth compared to China, which has seen slowed growth this year despite its previous dominance. India’s GDP growth of 8.2% in 2023 has sparked significant expansion in the luxury sector, encompassing real estate, hospitality, apparel, accessories, and automotive industries. Read here
  
  
• Indian Elections 2024- Unexpected Results and Economic Implications: In the recent Indian national elections, PM Narendra Modi’s BJP party unexpectedly lost its majority, contrary to predictions of a continued dominance. The election highlighted a shift in voter priorities towards local issues and demands for increased government support. The campaign focused heavily on economic concerns such as subsidies and inflation, overshadowing ideological debates. Despite concerns over economic disparities and inflation impacts, India’s economy continues to grow robustly, albeit with challenges in income distribution. Read here

****

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1 year returns.

• CFF (launched in June 2022) – Ranked among Top 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the smallcase universe.

Do check it out 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.

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

Index	17-May-24	10-May-24	Change
Nifty 50	22,465	22,055	1.86%
Nifty 500	21,061	20,475	2.86%
Nifty Midcap 50	14,510	13,919	4.25%
Nifty Smallcap 100	16,859	16,111	4.65%

Source – : RVM,MSCI, Returns 2.0

Here’s the list of curated readings for you this week:

Personal Finance

• Jim Simons, Pioneering Quant Trader and Philanthropist, Passes Away: Jim Simons, a pioneering mathematician, and founder of the successful quantitative hedge fund Renaissance Technologies was renowned for his Medallion Fund’s exceptional annual returns and his groundbreaking use of mathematical models in trading, Simons also made significant contributions to math and science through his foundation. Read here

• The Power of Small Details: Transformative leaders in low-margin industries excel by focusing on small details. Led by John Swallow, Idaho Strategic Resources thrives by combining gold and rare earth element production, strategic asset acquisition, and mining-friendly locations, like Costco’s operational excellence. This approach results in long-term success and premium valuations. Read here

• Teaching Life’s Rules through Field Day: Lessons in Winning and Losing: Field Day at school offers more than just games; it’s a lesson in life. As a parent, the focus is on teaching children the Rules of the Game: the pursuit matters more than the outcome, losing doesn’t define them, celebrating others’ wins is important, and surrounding themselves with supportive friends fosters growth and success. Read here

• Managing Expectations: The Pitfalls of Short-Term Guidance: Investors often overlook the potential for businesses to face unforeseen challenges, leading to disappointment when expectations aren’t met. Small businesses, especially, face numerous hurdles that shareholders rarely see. Providing short-term guidance can be counterproductive, often leading to unnecessary pressure on management and disappointment for investors. Read here

Investing

• Embracing Fintech Integration: The Rise of One-Stop Financial Solutions: The financial services industry is experiencing a shift towards fintech startups, which are attempting to bundle various activities into one. This approach is gaining popularity as customers increasingly seek convenience and trust in banks. However, the existing financial services industry is not conducive to fintech players offering a one-stop-shop solution. Watch

• Navigating Starbucks’ Digital Dilemma: Starbucks faces a dilemma between efficiency and maintaining its brand value. Future strategies may involve enhancing the in-store experience, improving the mobile ordering process, or fully embracing a transactional model, but the path forward remains uncertain. Read here

• Insights from Berkshire Hathaway’s Annual Meeting: Warren Buffett, alongside Greg Abel and Ajit Jain, emphasized the simplicity of investing, viewing stocks as businesses, and focusing on long-term performance. Buffett stressed the importance of understanding the businesses behind stocks, managing risk, and avoiding common investing mistakes. Read here

• SEBI Removes PAN-Aadhaar Link Requirement for Mutual Fund KYC: SEBI has removed the requirement of linking PAN with Aadhaar for mutual fund investors to obtain “KYC-registered” status. Under the revised rules, investors can now complete KYC using Aadhaar alone, without requiring the PAN-Aadhaar link. However, for “KYC-Validated” status, linking PAN and Aadhaar is still necessary. Read here

Economy

• India Upgraded to ‘Overweight’ by Citigroup, China Downgraded: Citigroup upgraded India to “overweight” from “neutral” in their emerging markets allocation, expecting the NSE Nifty 50 index to rise 7% by March 2025. The upgrade is based on India’s strong earnings and economic growth momentum, while Citi downgraded China to “neutral” due to weakening fundamentals despite recent market rallies. Read here

• Importance of International Diversification in a Dominant U.S. Market: Despite the U.S. stock market’s recent dominance, historical trends suggest that international diversification remains a crucial strategy. While the U.S. has outperformed in the past decade, there’s no guarantee it will continue to do so. Diversification helps manage risk by avoiding extreme outcomes, and considering the unpredictable nature of markets, it’s wise to spread investments across different regions. Read here
  
  
• India’s SEBI Proposes Multi-Regulator Approach to Cryptocurrency Oversight: India’s market watchdog, SEBI, suggests multiple regulators oversee cryptocurrency activities, contrasting with the RBI’s preference for a ban on stablecoins due to macroeconomic risks. SEBI recommends regulating crypto securities and ICOs, while RBI could oversee fiat-backed crypto assets. Read here

****

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1 year returns.

• CFF (launched in June 2022) – Ranked among Top 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the smallcase universe.

Do check it out 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.     Open the newsletter in the browser here

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

Index	10-May-24	03-May-24	Change
Nifty 50	22,055	22,457	-1.79%
Nifty 500	20,475	20,948	-2.26%
Nifty Midcap 50	13,919	14,190	-1.91%
Nifty Smallcap 100	16,111	16,934	-4.86%

Chart Ki Baat

Source: United Nation

Here’s the list of curated readings for you this week:

Personal Finance

• Creating Luck: Beyond Binary Views and Towards Active Habits and Strategy – The author discusses different models of luck, moving beyond the binary view to introduce the concepts of “Luck Surface Area” and the “Four Kinds of Luck,” ultimately proposing their own model focusing on active habits and good strategy to actively create luck. Read here
  
  
• The Importance of Inaction in Investing: Overcoming Natural Biases for Long-Term Success – Investing success often lies in what we don’t do rather than what we do. Despite our natural inclinations to react to market movements and headlines, long-term patience and inaction are crucial for success. Read here
  
  
• Charlie Munger: A Century of Wisdom and Partnership – Charlie Munger, born in 1924, has witnessed and been a part of a century of history. He and Warren Buffett built Berkshire Hathaway into the successful conglomerate it is today. Munger’s wisdom, irreverence, and partnership with Buffett have been instrumental in Berkshire’s success. Watch

Investing

• The Reality of Stock Holding: Understanding Shelf Life in Investing – The idea of holding stocks forever, as Warren Buffett once suggested, is often misinterpreted. While some stocks may indeed be held for the long term, the reality is that every stock has a different shelf life. Read here
  
  
• IAIP Session: Unveiling Quantitative Investment Strategies in India – The IAIP, recently explored various quantitative investment strategies such as Equity Long-Short, Managed Futures, Statistical Arbitrage, and Option Strategies. The session covered case studies, challenges faced by investors, and emphasized the roles, skills, and timing relevance in the market, including managed futures returns in India. Watch
  
  
• India’s Fixed Capital Formation: A Government-Driven Revival Amidst Declining Private Investment – India’s gross fixed capital formation has increased to 32.4% of GDP, the highest level since 2009, driven largely by government expenditure. However, private investment, crucial for sustained growth, has been declining since 2007-08, dropping to 19.6% of GDP in FY21. Read here

Economy

• Global Energy Transition: Opportunities and Investments – The energy transition offers significant opportunities for developers and equipment manufacturers globally. India, the US, and the EU are all experiencing surges in power demand, driven by factors such as data centre and AI growth, with the EU expected to invest nearly. Read here
  
  
• RBI Announces INR 40,000 Crore Bond Buyback to Ease Liquidity – The RBI announced a buyback of INR 40,000 crore worth of government bonds, focusing on short-duration papers to alleviate tight liquidity conditions. This move aims to ease short-term liquidity pressures while not affecting gross or net government borrowings, leading to a positive reaction in the bond market with lower yields and benefiting short-duration mutual funds. Read here
  
  
• Massive Online Scam: 800,000 Victims via 76,000 Fake Websites – A network of 76,000 fake websites originating from China has scammed over 800,000 people globally, primarily in the US and Europe, by luring them with discounted luxury goods and extracting sensitive personal and financial information. Read here

****

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1 year returns.

• CFF (launched in June 2022) – Ranked among Top 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the smallcase universe.

Do check it out 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.