Category: CAGR Insights – weekly newsletter curated by Kshitiz

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.

Investing

• 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.

Economy

• 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.

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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!

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	8-Sep-23	1-Sep-23	Change
Nifty 50	19,820	19,435	1.98%
Nifty 500	17,487	17,075	2.42%
Nifty Midcap 50	11,647	11,261	3.43%
Nifty Smallcap 100	12,812	12,386	3.44%

Chart Ki Baat

Bazaar Ki Baat

India Inc. Q1FY24 performance decoded

In the 11th edition of “Bazaar ki baat”, we discuss what moved the market in August, sectoral performance, a review of Q1FY24 earnings, and the significance of the rule of 72 in personal finance.

Watch here.

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

Personal Finance

• India’s Richest 2023 list – This year’s roster of India’s dollar billionaires is a reaffirmation that the growth story is not ephemeral but perpetual. Mumbai and Delhi together account for ₹41.56 lakh crore (60%) of the Fortune India-Waterfield Advisors listing, followed by Bengaluru, Chennai and Ahmedabad. Interestingly, there are 18 smaller towns and cities that have a dollar billionaire each. Read here
  
  
• What Is UPI ATM? Card-less Cash Withdrawal ATM Unveiled At Global Fintech Fest – The UPI-only ATM significantly enhances customer security by eliminating the need for physical cards. Read here.
  
  
• God’s Own Wealth – In a rare instance, the Tirumala Tirupati Devasthanams (TTD), which runs the temple of Lord Venkateswara at Tirumala (an incarnation of Supreme God Maha Vishnu), disclosed assets in November last year — around ₹2.5 lakh crore in cash and gold deposits in banks, donations from devotees and land and buildings. Read here
  
  
• Sebi keen to introduce fractional ownership in India – The concept is already permitted in the US and many Indian investors have bought fractional shares of popular companies like Apple, Meta and Alphabet Read here.
  
  
• Decoding the SEBI consultation paper on regulating financial influencers – Zerodha – If somebody really knows how to make money, why will they share it with somebody else? it’s logic 101. By definition, almost all of them are either snake oil salesmen or they’re just outright frauds. Read here.

Investing

• Uday Kotak resigns as Kotak bank MD and CEO 4 months ahead of end of tenure. Pens a heartfelt letter to board. Full text here.
  
  
• Foreigners snap up India stocks while fleeing most EMs in August  – Indian equities stood out in August as foreign investors sold stocks in almost every other Asian emerging market, thanks to the nation’s strong corporate earnings performance and its growing appeal as an alternative to China.  Read here
  
  
• Falling WPI, easing goods CPI and corporate margins – The sustained fall in Wholesale Price inflation in the last few months has resulted in gross margin improvements across corporates. Read here.
  
  
• Car makers eye best-ever festival season with record dispatches – Festival season, which traditionally starts with Onam in Kerala and runs till Diwali, accounts for around 25% of the annual passenger vehicle sales in the country. Read here.

Economy

• IMD’s rainfall forecast for Sep 2023 implies below normal monsoon at the end of the season – Rainfall was deficient at 64% of LPA in Aug 2023, , sharply weaker than the IMD’s projection of below normal rainfall (<94% of LPA). Watch here.
  
  
• Social welfare spend of states to hit a decadal high this fiscal – Spending on social welfare schemes by the top 11 Indian states1 – accounting for 75-80% of aggregate gross state domestic product (GSDP) – is expected to reach a decadal high of over 1.7% of GSDP, or ~Rs 4 lakh crore, according to the budget estimates (BE) of these states for fiscal 2024. Read 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!

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	1-Sep-23	25-Aug-23	Change
Nifty 50	19,435	19,266	0.88%
Nifty 500	17,075	16,821	1.51%
Nifty Midcap 50	11,261	11,022	2.17%
Nifty Smallcap 100	12,386	11,869	4.36%

Chart Ki Baat

Source: https://twitter.com/hktg13/status/1696827226552254751?s=20

Gyaan Ki Baat

Information Ratio

An assessment of portfolio returns above those of a benchmark, often an index, in relation to the volatility of such returns is called the information ratio (IR). It is a risk-adjusted measure of active management performance. Usually, an index that reflects the market, a specific sector, or an entire industry serves as the benchmark.
The IR is frequently used to gauge a portfolio manager’s level of expertise and capacity to produce excess returns in comparison to a benchmark; but, by including a standard deviation or tracking error, component in the calculation, it also makes an effort to determine the consistency of the performance.

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

Personal Finance

• The evolution of retirement – You also only have one shot at retirement planning. There are no mulligans. Leisure itself is still a relatively new concept for humanity that’s only been around for a few generations. Read here
  
  
• Tracking Difference and Tracking Error: What Every Investor Needs to Know – In the replication process of Index, several practical challenges can prevent the passive fund from achieving the same return as the benchmark resulting in a slight deviation. These deviations in the returns are measured in terms of tracking difference & tracking error. Read here.
  
  
• Phonepe forays into stockbroking – Discount broking app Share(dot)Market is available as a mobile app and a web platform. Read here.

Investing

• Toys for Billionaires: Sports Franchises as Trophy Assets!-  In many ways, sports franchises are the ultimate trophy assets, since they are scarce and owning them not only allows you to live out your childhood dreams, but also gives you a chance to indulge your friends and family, with front-row seats and player introductions. Read here.
  
  
• Identifying Multibaggers & Top Stocks & Sectors In Focus – Vijay Kedia – “If you find a theme, then stay invested,” Kedia said, advising investors to stay in a sunrise industry at any cost and stay out of a sunset industry at any cost. Watch here
  
  
• STOIC Podcast with Prabhakar Kudva – Prabhakar Kudva is the co-founder and director at Samvitti Capital. He is a successful long-only growth investor. In this episode of Stoic Talks, we will delve deeper into his two separate investing buckets, stock selection, allocation process, and how he has built setups around structural tendencies like momentum, mean-reversion, smallcap, exhaustion etc that are present in the market. Watch here
  
  
• Banks’ Margin Trajectory Sees Strain in Q1 as Deposits Cost Rise Sequentially – Net Interest Income (NII) of Scheduled Commercial Banks (SCBs) grew by 26.5% year-on-year (y-o-y) to Rs. 1.84 lakh crore in Q1FY24 due to healthy loan growth and a higher yield on advances over the year-ago period. Read here.

Economy

• Ray Dalio’s country index highlights India’s upward trajectory – Billionaire investor and hedge fund manager Ray Dalio has foreseen India achieving a growth rate of roughly 7% over the succeeding 10 years. Read here.
  
  
• Will Licence On PC Imports Harm IT Firms, GCCs Or Will Domestic Cos Swiftly Grab The Opportunity? – From Nov laptop, PC imports will need a licence. Will this harm IT cos, GCCs and business in general? Or will domestic cos swiftly grab the opportunity? Bain India’s M Chawla, Counterpoint’s Tarun Pathak, Nasscom’s A Aggarwal, Dixon’s S Gupta discuss with Latha Venkatesh. Watch here.
  
  
• Why the rural economy isn’t out of the woods yet – Despite a recent uptick in demand, the signs of stress in India’s hinterlands are hard to rub off. Read here.
  
  
• India’s beach paradise Goa is overrun with digital nomads – Rents are up, startups are setting up all over the state, but locals can’t get jobs easily. Read 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!

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	11-Aug-23	4-Aug-23	Change
Nifty 50	19,428	19,510	-0.42%
Nifty 500	16,860	16,882	-0.13%
Nifty Midcap 50	10,822	10,735	0.81%
Nifty Smallcap 100	11,748	11,691	0.49%

Chart Ki Baat

Changing Landscape of Automobile Sector in India

Bazaar Ki Baat

In the 10th edition of “Bazaar ki baat”, our team discussed what moved the market in July, sectoral performance, Why fund size matters in smallcap investing, and why Inflation is called the invisible tax.

Watch here.

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

Personal Finance

• RBI to enable borrowers to reset home loan rates whenever they want – RBI Governor Shaktikanta Das revealed that the central bank will soon introduce a framework allowing borrowers to transition from floating interest rates to fixed interest rates. Read here.
  
  
• SEBI backtracks on regulating Finfluencers . – SEBI has clarified that finfluencers do not come under SEBI Investment Adviser regulations. Read here.
  
  
• Low cost is the major driving factor behind passive funds popularity: Survey – 61% of investors say they have invested in at least 1 passive fund, underscoring the fast-growing adoption of passive funds in India. Read here
  
  
• Having a corpus as a goal – does it help? – For individuals who do not have defined goals, targeting a wealth number helps. Read here.

Investing

• Services sector and personal loans continue to see credit demand – Gross bank credit offtake witnessed an accelerated rise of 16.2% year-on-year (y-o-y) in June 2023. The growth was driven by services, personal and agriculture loans. Read here
  
  
• Bigger and Greener : India automobile sector – India’s light-vehicle market has grown from “small is beautiful” to favoring larger models. Read here.
  
  
• Indian equities have witnessed the most significant earnings growth as compared to other major economies – India’s earnings growth continues to support the market. Read here
  
  
• Automobile sector in India seems to be at an inflection point – Growth in India’s per capita GDP has so much widespread implications across sectors. A country’s per capita GDP and Passenger Vehicle sales have a strong positive correlation. Read here.
  
  
• India equity valuations has seen an uptick post recent rally. – The difference between India 10Y bond yield and earnings yield rises above long-term average, reducing the attractiveness of equity as compared to bonds. See here
  
  
• Uday Kotak is wanting for the market’s support – The stock has underperformed the benchmark Nifty Bank Index by nine percentage points since an April vote where 99% of shareholders supported Kotak continuing as a non-executive director. Read here
  
  
• What FIIs bought and sold in July? – The FPI Assets in India at $647 billion is getting tantalizingly close to the previous peak of $667 billion touched in October 2021. Read here.

Economy

• RBI pauses with a hawkish tone – The Reserve Bank of India held its key lending rate steady on Thursday as expected but moved to reduce the amount of cash in banking system as inflation concerns resurfaced following higher-than-usual seasonal spikes in food prices in recent weeks. Read here.
  
  
• India merchandise exports in free fall – The headwinds of slowing global growth are beginning to buffet India’s trade on all sides. Read here.
  
  
• India’s Demographic dividend: key to unlock its global ambition – The sheer size of India’s workforce is a major competitive advantage as the country tries to become a global design and manufacturing hub. Read here.
  
  
• The exclusive network behind India’s global tech success: The IITs themselves have embraced their startup-spawning potential — there are currently 4,459 Indian startups that have at least one IIT-educated founder, according to Tracxn. Many of the schools run campus programs to foster entrepreneurship. Read 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!

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.