Category: Personal Finance

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

Chart Ki Baat

Gyaan Ki Baat

A policy stance serves as the guiding principle for decision-making by central banks, reflecting their priorities in balancing economic growth, inflation control, and financial stability. The Reserve Bank of India (RBI) regularly adjusts its monetary policy stance to address evolving economic challenges.

Types of Monetary Policy Stances:

1. Accommodative Stance: Focuses on boosting economic growth by lowering interest rates and increasing money supply.
   
   
2. Neutral Stance: Balances inflation control and growth, allowing flexibility to either hike or cut rates.
   
   
3. Hawkish Stance: Prioritizes controlling inflation through higher interest rates and tighter monetary policy.

RBI’s Current Policy Stance (April 2025)

The RBI recently shifted its monetary policy stance from neutral to accommodative during its April 2025 Monetary Policy Committee (MPC) meeting. This shift was accompanied by a 25 basis points (bps) cut in the repo rate, bringing it down to 6%.

Why the Shift?

1. Easing Inflation: Retail inflation has moderated to around 4%, providing room for rate cuts without stoking price pressures.
   
   
2. Slowing Growth: GDP growth projections for FY 2025-26 were revised downward to 6.5% from 6.7%, prompting the need for policy support to stimulate demand.
   
   
3. Global Uncertainty: Trade tensions, US tariff threats, and global economic slowdown risks have increased uncertainty, necessitating measures to shield domestic growth.
   

Implications of an Accommodative Stance

• Lower Borrowing Costs: Reduced repo rates will lead to lower interest rates on loans, encouraging borrowing and investment.
• Boost to Consumption and Investment: Cheaper credit can revitalize demand in sectors like housing and automobiles.
• Economic Resilience: By prioritizing growth, the RBI aims to counteract external shocks and maintain economic momentum.

Takeaway

The RBI’s accommodative stance reflects its proactive approach to addressing slowing growth while leveraging low inflation levels. This shift underscores the central bank’s commitment to fostering economic stability amidst global headwinds.

Personal Finance

• What is a part payment in a personal loan? Benefits and drawbacks explained: Part payment helps cut loan interest and shorten tenure by reducing the principal early boosting credit too. But beware of prepayment charges! Want to save big on your personal loan? Read here

• RBI circular: Banks should pay 8% interest to retired govt employees for pension payment delay: Retired govt employees to get 8% interest on delayed pensions—automatically credited! RBI’s new rule strengthens pensioners’ rights. Missed or late payments since 2008? You could be owed money. To find out if your bank owes you. Read here

• UIDAI launches new Aadhaar app for simplified Aadhaar verification: Say goodbye to photocopies! UIDAI’s new Aadhaar app (beta) lets you share only what’s needed—instantly, securely, and with full control. From hotel check-ins to online verifications, it’s Aadhaar made smarter. To know how it protects your privacy Read here

Investing

• How Long Does it Take for the Market to Recover? Markets fall fast but recover slowly—historically taking 4–9 years after major drops. While downturns are tough, they do end. Staying invested with realistic expectations is key. Remember: nothing lasts forever, not the lows… and not the highs either. Read here

• Bear Market? Don’t Panic. Here’s How to Invest During One: Bear markets are short-lived downturns that often spark fear—but staying calm is key. With smart strategies like dollar-cost averaging, diversification, and a long-term mindset, investors can turn panic into opportunity and come out stronger when the market inevitably rebounds.Read here
  
  
• Should you start investing in gold as global financial order shifts? Central banks are boosting gold reserves to hedge against inflation, geopolitical risks, and economic uncertainty. While gold offers security, it’s less predictable than equities. Experts recommend a balanced portfolio, with gold making up just 5-10% for long-term stability. Read here

Economy & Sector

• RBI monetary policy: 6 key takeaways from MPC meeting: The Reserve Bank of India (RBI) on Wednesday announced a reduction in the repo rate. The move comes at a time when global uncertainties, like ongoing trade tensions and a weakening US dollar, are creating pressure on economies around the world. Here are 6 takeaways. Read here

• Microfinance: Its rising importance and relevance in the Indian economy: Microfinance in India, serving 80 million borrowers, has thrived despite crises like COVID-19 and demonetisation. With strong recovery rates and digital innovation, it’s bridging vast credit gaps. Discover how this resilient sector is bouncing back—again. Click to read more! Read here
  
  
• Indian job market stays strong amid global uncertainty, Michael Page India: India’s job market thrives despite global uncertainty, fuelled by digital growth, STEM talent, and AI-focused upskilling. Booming sectors like cybersecurity and semiconductor design drive demand. Discover why global giants are betting big on India’s workforce.Read here

Check out CAGRwealth smallcase portfolios

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

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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 the web.

Chart Ki Baat

Tariffs Imposed By US

Gyaan Ki Baat 

Investing Wisdom from Buffett’s 1989 Letter

Warren Buffett’s 1989 letter to Berkshire Hathaway shareholders is a masterclass in avoiding pitfalls and embracing timeless investing principles. It’s not just about celebrating success—it’s about dissecting mistakes and learning from them. Here are the standout lessons from this brutally honest reflection:

1. The Power of Tax Deferral: Let Compounding Work for You

Buffett highlights how frequent selling erodes the magic of compounding through taxes. His thought experiment is eye-opening: deferring taxes can turn Rs 1 into Rs 9.2 lakh over 20 years, compared to Rs 2.9 lakh if gains are taxed along the way. The lesson? Avoid unnecessary selling and let your investments grow undisturbed.

2. Look-Through Earnings: Seeing Beyond the Surface

Reported earnings often miss the full picture. Buffett emphasizes “look-through earnings,” which include profits reinvested by investee companies that don’t show up on income statements. Trusting skilled managers to reinvest retained earnings can yield better results than demanding dividends—a reminder to focus on long-term value creation.

3. Beware the EBITDA Illusion

Buffett critiques Wall Street’s obsession with EBITDA during the leveraged buyout craze of the 1980s. Ignoring depreciation and capital outlays is like pretending a broken engine doesn’t matter because the car still rolls downhill. Real businesses need maintenance, and debt-fueled acquisitions often lead to financial instability. Always evaluate cash flows realistically.

4. Time Is the Friend of Quality Businesses

Buffett’s reflection on his “cigar butt” investing mistakes reveals a profound truth: mediocre businesses erode value over time, while great businesses compound it. Instead of chasing bargains, focus on quality companies with enduring competitive advantages—ones that can reinvest capital at high returns.

5. Avoid Tough Problems, Focus on Easy Wins

Buffett learned that solving complex business problems isn’t worth the effort. Instead, he advocates tackling simple opportunities—a philosophy that aligns with his preference for businesses with straightforward economics.

6. Partner with Great People

Buffett underscores the importance of associating with trustworthy and capable managers. Mediocre management in poor businesses won’t guarantee success, but great partners in good businesses can achieve wonders.

Takeaway for Investors Today

Buffett’s lessons resonate deeply in today’s financial landscape, where inflation, market volatility, and speculative bubbles dominate headlines. His advice is clear: prioritize quality over quantity, trust compounding, avoid shortcuts like EBITDA illusions, and partner wisely. Above all, remember that avoiding mistakes is often more valuable than fixing them later—a principle that applies not just to investing but to life itself!

Personal Finance

• EPFO removes two more claim settlement requirements: EPFO has simplified the claim settlement process by removing the requirement to upload cheque images and attested bank passbooks for online claims. It also eliminated the need for employer approval to seed bank account details with UAN. These changes will benefit millions, reduce claim rejections, and streamline procedures.Read here
  
  
• Guide to all financial changes from April 2025: Credit cards, income tax, mutual funds and more: As the new financial year 2025-26 starts today, multiple regulatory changes will take effect across mutual funds, credit cards, UPI transactions, taxation, and GST. To know more about the changes. Read here
  
  
• Here’s how NRIs can benefit from buying health, term insurance in India: Non-Resident Indians (NRIs) can access affordable health and term insurance in India, benefiting from an 18% GST refund when premiums are paid from NRE accounts. Additionally, NRIs can claim tax deductions under sections 80C and 80D. Term insurance offers tax-free death benefits, ensuring financial security for families. Read here

Investing

• Understanding the psychology of investing matters more than ever: In times of market volatility, investors should maintain a long-term perspective, avoiding emotional decisions driven by short-term fluctuations. Emphasizing discipline, decision journaling, and understanding risk can help investors stay focused and weather market downturns for future gains.Read here
  
  
• Would $2M at 23 Make You “Set for Life”? Is $2M at 23 enough to be “set for life”? It depends! While it offers incredible freedom, it might not last forever without smart investing, frugality, or extra income—especially as inflation creeps in. Find out if you could really live off it! Read here
  
  
• What investors should learn from the correction in small-cap stocks? From 2020 to 2024, investors bet on small-cap stocks, assuming high risk guaranteed high returns, with the BSE SmallCap Index rising 571%. However, a recent 18.5% drop shows that higher risk doesn’t always lead to higher returns, challenging this belief. Read here

Economy & Sector

• Trump’s Tariffs & India’s Economy | How Will India Navigate the Economic Challenges? Donald Trump imposed a 27% import duty in India, citing unfair trade practices, while claiming India charges a 52% tariff. India’s Commerce Ministry is assessing the impact and exploring new trade opportunities, as US-India trade discussions continue for a Bilateral Agreement. Read here
  
  
• India’s growth to be highest among advanced, emerging G20 nations: Moody’s: Moody’s forecasts India’s GDP growth at 6.5% for FY26, the highest among G-20 nations, driven by tax reforms and monetary easing. Despite global risks, India’s large, domestically driven economy, low external vulnerability, and strong capital markets ensure resilience.Read here
  
  
• RBI governor says next decade will be crucial in shaping financial architecture of Indian economy: RBI Governor Sanjay Malhotra emphasized the bank’s evolving role in balancing price stability, financial stability, economic growth, and technological advancements. He committed to expanding financial inclusion, improving customer services, and strengthening the financial system while upholding core values of integrity and transparency. Read here

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Check out CAGRwealth smallcase portfolios

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

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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 the web.

Chart Ki Baat

Gyaan Ki Baat 

RBI Bonds: A Game Changer in India’s Financial Landscape as Yields Plummet

The latest developments regarding RBI bonds highlight a significant shift in India’s financial landscape, driven by expectations of policy easing from the Reserve Bank of India (RBI). Recently, the benchmark 10-year government bond yield fell to a three-year low of 6.60%, reflecting market optimism for an upcoming interest rate cut during the RBI’s monetary policy meeting on April 9, 2025. This drop in yields is largely attributed to aggressive liquidity measures by the RBI, which has infused over ₹6.8 trillion into the banking system this quarter through various operations.

Investors are particularly focused on the Government of India Floating Rate Bond 2033, which now offers an attractive interest rate of 8.34% per annum. This bond’s interest rate is linked to the Weighted Average Yield of recent treasury bill auctions, ensuring that returns remain competitive as market conditions fluctuate5. The floating nature of these bonds provides a hedge against rising interest rates, as coupon payments increase accordingly, making them an appealing choice for those seeking stable income amidst volatile economic conditions.

As the RBI prepares to announce its borrowing plan for the next fiscal period, market participants are keenly awaiting further guidance on how these developments will influence investment strategies moving forward.

Personal Finance

• EPFO to integrate UPI, expand pension access, and enhance EPI benefits: EPFO is set to integrate UPI for claims processing by May 2025, speeding up transactions and enabling auto-claims. The new system, alongside pension reforms and the expanded Employment Linked Incentive scheme, aims to enhance benefits for workers and pensioners. Read here
  
  
• Balance transfer or loan refinancing? A guide to choosing the best debt management option: Balance transfers and loan refinancing are key debt management tools. Balance transfers help consolidate credit card debt with low interest, while refinancing offers better terms for larger loans. Find out which option could save you money and reduce your debt! Read here
  
  
• You can now have up to 4 nominees for bank accounts. Here are the new rules: The Banking Laws (Amendment) Bill now lets you appoint up to four nominees for your bank accounts! Choose from simultaneous or successive nominations to streamline asset transfer and avoid future disputes. Read here

Investing

• How goal-based investments are taking a front seat in wealth management: Goal-based investing tailors’ financial strategies to individual aspirations, aligning investments with specific goals like education or retirement. Discover how goal-based investing can help you achieve your financial dreams with personalized strategies tailored to your unique goals! Read here
  
  
• Why Trend Following is Harder Than it Looks: Trend following, like using the 200-day moving average, helps navigate volatility but struggles in bull markets, leading to false positives, missed recoveries, and delayed gains. Want to know why?  Read here
  
  
• Is your wealth manager still ‘buying the dip’?  Is buying the dip still a winning strategy? Explore the ongoing debate among financial advisors on whether it’s wise to continue this approach or reconsider amid changing market dynamics. Read here

Economy & Sector

• Five years after lockdown: Is India prepared for another health crisis? Five years after India’s first Covid lockdown, it’s time to evaluate the country’s healthcare preparedness. Despite some progress, such as increased vaccination and reduced out-of-pocket spending, healthcare spending remains low and infrastructure inadequate. Will India meet future health challenges? Read here
  
  
• India’s GDP on track to outpace Japan in 2025, Germany by 2027: IMF India’s GDP has doubled in the past decade, growing 105% to reach $4.3 trillion, positioning it as the world’s fifth-largest economy. With continued growth, India could surpass Japan and Germany by 2027. Inflation is stable at 3.61%, and per capita income stands at $11,940. Discover what this means for India’s future and its global standing! Read here
  
  
• India: Why are private firms not investing despite record profits? India’s private companies have been hesitant to invest in new factories and businesses due to weak domestic consumption, low demand, global uncertainties, and overcapacity, despite infrastructure improvements and tax cuts. What will it take for India to unleash its private sector’s investment potential? Read here

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Check out CAGRwealth smallcase portfolios

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

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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 the web.

Chart Ki Baat

Gyaan Ki Baat 

Patience is the Key to Investing Success

Investing is much like growing a Chinese bamboo tree. For years, the tree shows no visible growth above the ground. But during this time, it is quietly building a strong root system underground. Then, almost miraculously, it shoots up to towering heights in just weeks. The lesson? True success in investing requires patience and a solid foundation.

When you invest for the long term, your money works silently behind the scenes—compounding, weathering market fluctuations, and building financial stability. Just like the bamboo tree, your portfolio needs time to establish its “roots” before delivering visible results. Impulsive decisions and chasing quick returns can uproot your progress.

Remember, patience allows you to harness the power of compounding, ride out market volatility, and achieve sustainable growth. Stay focused on your long-term goals because, just like the bamboo tree, your investments will eventually grow tall and strong if nurtured with time and discipline.

Personal Finance

• PFRDA notifies assured pension scheme for govt employees: How loss from equities could help you save more tax: Want to legally avoid paying capital gains tax on equities? Tax harvesting can help you save big! Learn how to offset losses, maximize exemptions, and carry forward gains for 8 years. Don’t miss out on this smart tax-saving strategy! Read here
  
  
• I have a group term life insurance plan. Will this be adequate to meet my family’s financial needs? A general guideline is having a life cover of at least 10 to 11 times your annual salary, but this can vary based on unique factors. To learn more Read here
  
  
• How may a travel fund SIP change the way people save for vacations? Saving for a vacation often feels like an afterthought — many people either use their credit cards or dip into their savings at the last minute. But what if there was a structured way to save for travel while locking in the best deals?Read here

Investing

• How Not to Invest: Investment success often comes from avoiding mistakes rather than seeking big wins. How Not to Invest highlights common errors, like overconfidence in private investments, timing markets based on tax policy, and laziness in managing money, offering valuable lessons for all investors. Read here
  
  
• I have Rs 20 lakh. Here’s how I plan to reach Rs 1 crore: Abhay, a casual investor, accumulated Rs 20 lakh by 32 through unplanned investments. Realizing the need for strategy after marriage, he decided to change his approach. To learn from Abhay’s story.Read here
  
  
• How should I start investing? If you’re a young graduate eager to start investing, prioritize building an emergency fund first, then aim to invest 15% of your income in a diversified portfolio, focusing on equities and high-growth sectors. Plus, discover how mediation can save you time and money in legal disputes— to learn more! Read here

Economy & Sector

• India’s economic indicators and consumption trends shows sustained growth momentum: India’s economy shows resilience, with projected 6.5% growth in 2024-25, fuelled by strong private consumption, government spending, and sectoral performance. Key industries like construction, financial services, and trade thrive, positioning India as a stable growth leader globally. Read here
  
  
• The Future of Decentralized Autonomous Organizations (DAOs) In the Indian Economy: DAOs are redefining business, finance, and governance in India by enabling transparency, financial inclusion, and decentralized decision-making. From crowdfunding to supply chains, they promise efficiency and innovation—but regulatory clarity and adoption challenges must be addressed for their full potential to unfold. Read here
  
  
• India to dethrone Germany as world’s third-biggest economy by 2028: India is poised to surpass Germany and become the world’s third-largest economy by 2028, driven by robust economic growth, strong policy frameworks, and improving infrastructure, according to a recent Morgan Stanley report. Read here

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Check out CAGRwealth smallcase portfolios

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.