Category: CAGR Insights – weekly newsletter curated by Kshitiz

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

Index	18-Aug-23	11-Aug-23	Change
Nifty 50	19,310	19,428	-0.61%
Nifty 500	16,758	16,860	-0.61%
Nifty Midcap 50	10,824	10,822	0.02%
Nifty Smallcap 100	11,683	11,748	-0.55%

Chart Ki Baat

Gyaan Ki Baat

Solution Oriented Mutual Funds are close-ended funds designed to take into consideration future specific goals based on the investor’s flexibility and risk appetite. These funds were created to help investors plan for their major future goals such as child education, marriage, retirement, etc. at an early stage. These funds have a lock-in period of 5 years, which helps the fund ride out any short-term fluctuations in the market.

SEBI has specified two types of solution-oriented funds: Retirement funds and Children’s funds. The portfolio of these funds is customized as per the investor’s expected return to fund a certain future goal, their risk capacity during the term till the time they reach the goal period, and so on.

For example, some Retirement portfolios are designed considering the age of the investor – Investors with ages up to 30 years – have an aggressive portfolio allocation with 80-100% equity allocation. Whereas for investors above 50 years of age, the portfolio allocation is mainly conservative with high debt allocation.

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

Personal Finance

• Bullish on India: Average income of middle-class Indians triples from Rs 4.4 lakh in FY13 to Rs 13 lakh in FY22. Read here.
  
  
• Tomato heat sets the thali boiling – The cost of a thali rose sequentially for the third month in a row in July, and also inched up on-year for the first time this fiscal, mainly due to soaring tomato prices. Read here.
  
  
• Paychecks and not portfolios – What’s the most important thing when it comes to building wealth? Is it what you invest in? Is it when you start? How about your mindset? Read here
  
  
• RBI launches unclaimed deposit platforms- The Reserve Bank of India (RBI) has launched a centralised web portal UDGAM (Unclaimed Deposits – Gateway to Access information), which simplifies people’s search for unclaimed cash deposit Read here
  
  
• How is India taking UPI globally – The move to accept payments in Singapore and other countries like Bhutan and Nepal is significant not only due to their economic links with India but also on account of the fact that UPI is being increasingly seen as a peer-to-global payment network. Read here.

Investing

• The Democratization of Opportunity in India’s Boardrooms– For the first time in India’s history, a majority of the promoters and executive directors of Nifty50 companies are NEITHER foreign educated NOR educated at the elite IITs & IIMs. Instead, majority of the people running Nifty50 companies now have ‘normal’ Indian degrees. Read here
  
  
• Legacy Firms In Diversification Drive – Most bets are in new-age businesses or sectors that are getting organised— for instance, semiconductor and solar module manufacturing are new while jewellery and lending are becoming more organised. Read here.
  
  
• Fitch Says Indian Banks On A Strong Growth Trajectory, Risks Receding – Capital ratio, earnings buffer, operating profit for Indian banks have improved significantly, says the rating agency. Read here
  
  
• Fuel cost is such a big part more than everything else put together- The ex-showroom price for a car only constitutes 20% of the vehicle lifecycle cost. See here

Economy

• India approves $7 bln plan for electric buses in nearly 170 cities – India on Wednesday approved plans for a nearly 580 billion rupee ($7 billion) scheme to deploy 10,000 electric buses in 169 cities over a decade, along with charging and associated infrastructure facilities. Read here.
  
  
• America is Increasingly Exceptional,  in the Wrong Way – The United States is now virtually alone on a path toward higher spending, deeper deficits and debt Read here.
  
  
• India’s Future: The Quest for High and Stable Growth – The macro challenge for India in the upcoming decade is to turn traditionally uneven growth into a high and stable trend. Given structural differences with East Asian economies, India will need to follow its own unique path 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	21-Apr-23	13-Apr-23	Change
Nifty 50	17,624	17,828	-1.14%
Nifty 500	14,847	14,954	-0.72%
Nifty Midcap 50	8,731	8,677	0.62%
Nifty Smallcap 100	9,369	9,337	0.34%

Chart Ki Baat

Gyaan Ki Baat

NASDAQ (National Association of Securities Dealers Automated Quotations) is an American securities exchange having headquarters at New York, USA.

NASDAQ 100 is a large-cap index focusing on modern industry and technology companies like Apple, Google, Amazon etc, it does not include financial companies.

Indian investors can take exposure via Nasdaq ETFs or Funds of funds and have good diversification in portfolios. These invest in companies that are new aged and have the potential for high growth and at the same time disruptive in nature.

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

Personal Finance

• The average equity investor outperformed their investments in 2022 – We believe this is primarily due to investors continuing to invest with their SIPs despite turbulent market conditions, which helped with rupee cost averaging. Read here

• Was taxation rule the only driving factor of investing in international funds for Indian investors? – The good news is that a recent study highlights that international diversification can protect investor portfolios over longer horizons against prolonged periods of underperformance by Indian markets. Read here.

• Greatness isn’t always rainbows and butterflies  – To be disciplined is to resist your short-term emotional whims in service of your long-term goals. Let everlasting love triumph over the temptress of temporary hate. Read here

• Did you choose your mutual funds based on the ranking of a particular platform? – But is the rating/ranking a sufficient measure to select your funds? Largely yes, but it is good to be aware of how these rankings work and what are we missing when we use these rankings. Read here

Investing

• Masterclass in Factor Investing: Quant – From Fundamental Practitioner Lens – Man + Machine can be better than Machine or Man. Watch here

• How to evaluate PSU companies? – PPFAS Mutual Fund CIO, Rajeev Thakkar walks us through various aspects while studying government-owned businesses in India. Watch here

• Continue investing in Duration – DSP MF says yields have fallen, yet there is a long way to go. The cut cycle has just begun. Read here
  
• The role of REITs in asset allocation – REITs offer an expanded opportunity set, providing diversified sector exposures at smaller capital outlays. REITs allow for efficient and timely capital deployment, to both complement and temporarily substitute private real estate. Read here.

Economy

• India Races to Get Rich Before It Gets Old as Population Passes China – Bloomberg Economics says India needs to advance on four broad fronts — urbanization, infrastructure, up-skilling and broadening its labor force, and boosting manufacturing — to fully cash in on its demographic dividend and reshape the global economy in the process. Read here

• Why Researchers differ on India’s poverty rate- All [research papers] show that poverty has plummeted after the economic reforms of 1991 that helped accelerate GDP growth. Clearly fast growth is the best poverty alleviator. Read here

• States dragging feet on capex despite funds– A push by the Centre notwithstanding, states continue to tread slowly in terms of capital expenditure, with 24 large states spending only 55.1% of their 2022-23 (Apr-Mar) Budget target as of February-end.   Read here

• Is US banking crisis really over? – Currently, capital is fleeing the banking system, exacerbating the liquidity problem and causing even more problems for the banking sector. 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	24-Feb-23	17-Feb-23	Change (%)
Nifty 50	17,465	17,944	-0.18
Nifty 500	14,630	15,003	-0.44
Nifty Midcap 50	8,476	8,658	0.07
Nifty Smallcap 100	9,221	9,417	-1.00

Chart of the week

Gyaan of the week

What are Contra Funds?

Contra Fund is an equity mutual fund that employs a strategy in contrast to the current market conditions (work against the herd mentality). The fund manager buys equities that are available at a discount due to the prevailing market conditions or market cycles, or when specific industries experience a downturn, (for example – steel which is cyclical). It purchases shares of underperforming/undervalued businesses and holds onto them until the value is unlocked. These funds are not suitable for short-term investments and often perform better over the long run.

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

Personal Finance

• Rule #1 of Building Wealth: Play Defense With Your Money-  Playing defense with your money doesn’t mean you can’t build wealth. It means you’re taking a calculated approach to your investing decisions. Read here.

• How much money is enough to retire comfortably –   The good news is most people probably overestimate how much money they will actually need for retirement. Most of the people who end up millionaires never come close to spending all of their money anyway. Read here.

Investing

• Read about the ideas from Top industry professionals on some of the best stocks to invest in.  Read here

• Because you can be sure you got the odds right (why low beta or low volatility is often preferred – more predictability). But most big winners will be at the bottom – with a lot of survivorship bias. These guys will get lot of capital at exactly the wrong time. This is what you need to protect yourself from. Read here

• Both cash segments and F&O segments reported jump in their volumes in the last two fiscals. The F&O segment grew by 97% and 160%, respectively, in FY21 and FY22, while the cash segment grew by 70% in FY21 before tapering down to a modest 9% in FY22. CareEdge believes that the growth rates in market volumes are not sustainable over the longer-term and the growth rates are expected to decline to a more normalised level. Read here

• Buffet on Microsoft – In 1997 Buffet was pitched Microsoft. His response on how he prefers to structure investing as a no-called-strikes game & wait for a fat pitch was fantastic.  Read here

Economy

• India undergoing the most unprecedented change in the history of the free world –  Watch here.

• Indian inflation remains high, premature to lower guard – MPC minutes – “We must … remain unwavering in our commitment to bring down inflation to ensure a decisive and durable moderation in inflation towards the target of 4% over the medium term, while being mindful of growth,” RBI Governor Shaktikanta Das said. Read here

• India’s eight core data is now better than pre-covid with coal/electricity/natural gas/fertilizers exceeding pre-covid growth. Read here

CAGR Speak

• Back when PPFAS Flexicap was not a consensus play, it was our conviction buy. Not only has the AUM for the fund grown 18 times since then (From INR 1,618 Cr in Feb 2019 to INR 29,344 Cr as I write today), the fund has done phenomenally well for its investors. Read the twitter thread here.

• The staggering out-performance of Regional movies as compared to Hindi and English movies is clear in the numbers. 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!

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 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.