Category: CAGR Insights – weekly newsletter curated by Kshitiz

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

Monthly Market update – Oct 2022

The Indian equity indices staged a strong rebound in October with the blue – chip S&P BSE SENSEX rising 5.9% and NIFTY 50 rising 5.4% in October.

Although the bullish sentiment was widespread, smaller companies lagged their larger peers; the S&P BSE SmallCap clocked up a relatively demure 1.3% gain. The rise has been on the back of strong corporate earnings reports and hopes of a less-hawkish stance from major central banks.

Among sectors, Energy and Banking sectors were the best performing sectors, while the FMCG and consumer durables were the two laggards

Our Co-founders discuss about the share bazaar for the month of Oct, what went well and what should investors NOT be doing! Watch the video here.

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

Personal Finance

• The Present Defines the Past- Whatever you’re thinking right now, you have to realize that you’re being biased by current events. The present is redefining your past.Read here.

• SEBI has reduced the Face Value and trading lot for debt – SEBI has reduced the Face Value and trading lot for debt securities issued on private placement basis to 1 lakh from 10 lakhs. This is a welcome step to make debt securities accessible to retail investors. Read here

• Demystifying: Top-Up Plan Vs A Super Top-Up Health Insurance Plan, Which Is Better?– Whether you should buy a top-up or a super top-up plan should depend on your medical requirement. Ideally, one should weigh all pros and cons before investing in any such plan. Read here

• Underpenetrated equity markets in India- Its still 7% of the population. See such data and some more on this link by Abakkus investment.  See here.

Investing

• Minimizing Drawdown Lay the Foundation to Quick Recovery– Many investors mistakenly base the success of their portfolios on returns alone. However, it is equally important to consider the risk involved in achieving those returns. Read here.

• Indians just love gold – India’s gold demand jumped 14% on year to 191.7 tn in the September quarter, as retail investors responded to the drop in prices and weakness in equity markets, the World Gold Council said in its Gold Demand Trends report. Read here.

• The Dhanlaxmi bank fiasco- The bank’s share price has crashed by 93% since 2010. It’s almost a penny stock now (below ₹10). And few days back, the shareholders had enough.  Read here.

Economy

• Powell Sees Higher Peak for Rates, Path to Slow Tempo of Hikes- The Federal Reserve raised interest rates by three-quarters of a percentage point again on Wednesday and said its battle against inflation will require borrowing costs to rise further, yet signaled it may be nearing an inflection point in what has become the swiftest tightening of U.S. monetary policy in 40 years. Read here.

• India has the potential to drive a fifth of the global growth over the next decade, with market capitalization likely to grow by over 11% annually to $10 trillion, according to global investment bank Morgan Stanley.Read here.

• Foreigners Turn Sellers of India Bonds on Index Disappointment – Global funds sold 24.4 billion rupees ($295 million) of index-eligible Indian sovereign bonds in October after JPMorgan Chase & Co. refrained from including the debt in its gauge. Read here.

CAGR Speak

• Happy to share that we currently have clients from 230 locations in India.  Read here.

• “Some of our corporate records are not traceable.” Said a company in DHRP. Read here.

• Shruti shares her learning from moderating CFA Society India workshop in Mumbai on Family Offices. 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 enjoyed reading this issue, please consider following us here, here and here for the encouragement to keep writing this weekly newsletter.

If you have any feedback that you’d 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 set forth on 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 on this newsletter.

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

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

Personal Finance

• In search of deposits, bankers embark on door-to-door campaign – Video of Canara Bank employees selling FD scheme on road is from Goregaon East, Mumbai, confirm branch employees. Read here.

• Invest in companies that Handle hard well – The adversity will separate the wheat from the chaff, the three-stars with upside from five-stars without it, and those who can “handle hard well” from those who cannot. Read here.

• Ready reckoner for Passive funds – The latest edition of Cafemutual’s Passive Ready Reckoner is now out. It gives you all details that you need to know – daily AUM, TER, tracking error, tracking difference (1 year), and returns (1, 3 and 5 years). Additionally, it also captures the 1-year average trading volume and impact cost for ETFs.Read here.

Investing

• Fundamental Analysis of Asahi India Glass– Dr. Vijay Malik brings out deep insights on Asahi India Glass, India’s leading producer of automotive and float glass. Read here.

• A Primer on Free Cash Flow  – Free cash flow is one of the most dangerous terms in finance, and I am astonished by how it can be bent to mean whatever investors or managers want it to, and used to advance their sales pitches, says Prof, Aswath Damodaran.  Read the blog here.

• Hedge funder David Einhorn says value investing may be gone forever- There have been serious changes to the market structure and pretty much most of the value investors have been put out of business.  Watch the interview here.

• Understanding the hospital industry – The hospital industry is emerging rapidly due to progression in technology, increasing penetration in health insurance and growth in various lifestyle diseases across the country. This knowledge session by Parag Parikh Mutual fund team provides valuable insights. Watch here.

Economy

• India’s Plan to Unlock Gold Gets New Focus With Trade Gap Near Record- The deposit plan and a related sovereign gold bond scheme, which allows an investor to buy a bond priced at the value of gold without an underlying physical asset, are a “far cry from success,” representing less than 2% of India’s annual gold consumption. Read here.

• ECB raises rates by 75 bps for 3rd straight time, hints at more hikes – In recent months, soaring energy and food prices, supply bottlenecks and the post-pandemic recovery in demand have led to broadening of price pressures and an increase in inflation, the central bank said. Read here.

• RBI MPC holds an additional meeting – The Monetary Policy Committee will hold an additional meeting, according to a press release issued by the Reserve Bank of India today. The meeting will be held under provision of Section 45ZN of the Reserve Bank of India Act, 1934, which pertains to drafting the committee’s report to the government on failure to meet the inflation targetting mandate. Read here.

CAGR Speak

• Succession planning – Who is Next? This is one of the most daunting challenge several companies in India face. Read here.

• Are women less confident about managing their own money?  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 enjoyed reading this issue, please consider following us here, here and here for the encouragement to keep writing this weekly newsletter.

If you have any feedback that you’d 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 set forth on 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 on this newsletter.