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CAGR Insights – 20 Dec 2024

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

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Chart Ki Baat

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(Source: Accel, Bessemer, Blume, Fireside, Lumikai)

Gyaan Ki Baat 

Fed Rate Cut: A Hawkish Move

The recent decision by the Federal Reserve (Fed) to cut interest rates by 0.25 percentage points is a pivotal development in U.S. monetary policy. This reduction, which marks the third consecutive cut in 2024, brings the federal funds rate to a range of 4.25% to 4.5%. The Fed’s objective with this move is to manage inflation while fostering economic growth.

Why Did the Fed Cut Rates?

  • Stimulating Economic Activity: Lower interest rates reduce borrowing costs for consumers and businesses, encouraging spending and investment. This can lead to increased economic activity, which is crucial for job creation and overall economic health.
  • Inflation Concerns: Despite the rate cuts, inflation remains a significant concern. As of November 2024, inflation was reported at 2.7%, above the Fed’s target of 2%. The central bank aims to strike a balance between supporting growth and keeping inflation in check.

Global Considerations:

The Fed’s monetary policy has ripple effects beyond U.S. borders. Emerging markets, including India, are particularly sensitive to changes in U.S. interest rates, as they can influence capital flows and exchange rates

Personal Finance

  • Learning from Mistakes: Mistakes are vital for growth, teaching valuable lessons through reflection and iteration. Separating ego from errors fosters objectivity, enabling improvement in investing and creativity. Embrace mistakes as opportunities to refine processes, enhance decision-making, and discover transformative insights. Read here

  • Do As I Say, Not as I Did: The best investment lessons often hide in plain sight, but are we really looking in the right places? Success leaves clues—but not always in the advice given. This article uncovers what truly matters. Read here

  • EPFO gives employers till Jan 31 to submit pending forms for higher pension: The EPFO has extended the deadline for employers to process pending higher pension applications until January 31, 2025. Employers must submit replies by January 15 for 466,000 cases requiring clarification. The extension addresses a significant backlog in pension claims. Read here

Investing

  • Three Things I Think I Think – Strategic Reserves and Stuff: Forget Bitcoin, the US government should invest in American innovation! Cullen Roche slams the proposed Bitcoin reserve as a “scam,” while marvelling at US market dominance that’s spooking even him. Meanwhile, while partisan politics rage, the silent majority (Independent voters) remain surprisingly level-headed about the economy. Read here

  • The 3 Best Inflation Hedges: Inflation may feel like a silent thief, but with the right strategies—like growing your income, locking in housing costs, and investing wisely—you can turn the tables and come out ahead. Read here

  • Sebi Board Decides to Tighten SME IPO Norms, Revise Investment Banking Rules, Expand UPSI Definition: Sebi approved measures including stricter SME IPO norms, revised investment banking regulations, and expanded UPSI definition. It introduced reforms for Debenture Trustees, ESG rating providers, and financial entities, along with mandatory electronic payments for demat accounts and AI compliance safeguards. Read here

Economy & Sectors

  • Will India’s economic growth pick up pace? Nirmala Sitharaman answers: Finance Minister Nirmala Sitharaman acknowledged that July to September was a challenging period for the economy but called the slowdown a ‘temporary blip’. Read here

  • Indian economy to grow 6.6 pc in FY26: Ind-Ra: India Ratings projects 6.6% GDP growth for FY26, up from 6.4% in FY25. Investments will drive growth, reversing the cyclical slowdown. Despite easing monetary conditions, fiscal and external tightening are expected to persist, impacting the economy. Read here

  • In 2025, the hurdles to India’s growth: India may overtake Japan as the fourth-largest economy by 2025, but risks include lower growth and fiscal contraction. The private sector’s investment role is uncertain, while global volatility, inflation, and protectionist trade policies challenge economic stability. 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 1st 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.

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CAGR Insights – 13 Dec 2024

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

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Chart Ki Baat

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Gyaan Ki Baat 

November Inflation Eases to 5.48%

In November 2024, India’s retail inflation showed a significant decline, easing to 5.48% from 6.21% in October. This decrease brings inflation within the Reserve Bank of India’s (RBI) target range of 2-6%, which is a crucial indicator for monetary policy decisions, particularly regarding interest rates.

Key Highlights of November Inflation:

CPI Trends: The Consumer Price Index (CPI) inflation fell primarily due to a reduction in food prices, which had surged in previous months. The year-on-year inflation rate for food was recorded at 9.04%, with notable declines in the prices of vegetables, pulses, and other essential commodities.

Urban vs. Rural Inflation: Urban areas experienced a lower inflation rate of 4.83%, while rural inflation was higher at 5.95%. This disparity highlights the ongoing challenges in rural economies, where food prices remain a significant concern

Personal Finance

  • Transparency in Insurance: Why Honest Declarations and Partner Involvement Matter: Insurers share key consumer details, making honesty crucial in insurance declarations. Radha’s case revealed her late husband’s non-disclosure of health issues, leading to claim rejection. Read here

  • Bank account, bank locker rule change: Lok Sabha passes new Banking Amendment Bill, allowing up to 4 nominees in savings, locker accounts: The Lok Sabha has passed the Banking Laws (Amendment) Bill, 2024, allowing up to four nominees for bank accounts, deposits, and lockers. This change simplifies fund distribution and ensures smoother access for nominees after the account holder’s death. Read here
  • New SIP rule: SEBI mandates MF companies to process cancellations in 2 days: SEBI has reduced SIP cancellation processing to two working days from ten, effective December 1, 2024. The reform ensures uniform timelines, faster control, transparency, and operational efficiency, enhancing investor convenience and trust in the mutual fund ecosystem. Read here

Investing

  • FPI participation in Indian equity-derivative markets rising: SMC Global: Foreign Portfolio Investors (FPIs) are returning to Indian markets, attracted by steady economic growth and opportunities in equities and derivatives. SMC Global reports rising FPI participation, complemented by expanding domestic trading from tier-3 and tier-4 cities via mobile apps. Read here
  • Investing in 2025: Headwinds and tailwinds: After tripling since 2020 lows, markets face uncertainty in 2025 amid global economic risks, Trump’s unpredictable policies, and high valuations. US tariff threats, rising dollar strength, and cautious investors challenge emerging markets, including India. Read here
  • Gold Price Outlook 2025: Key Trends Shaping the Future of Gold: Gold has surged 28% in 2024, driven by central bank buying, geopolitical risks, and market volatility. Modest 2025 growth is expected, with potential upside from central bank demand and risks from monetary policy shifts and China’s economic dynamics. Read here

Economy & Sectors

  • India needs USD 2.2 trillion investment on infra to become a 7$ trillion economy before 2030: Real estate consultant Knight Frank India released a report, ‘India Infrastructure: Reviving Private Investments’, which mentioned that “ an estimated investment of USD 2.2 trillion into infrastructure development is imperative to support India’s GDP size to expand to USD 7 trillion by 2030.” Read here
  • 69% growth in rural female employment during 2018-23, says government report: India’s female labour force participation (LFPR) rose significantly, driven by government schemes like Mudra loans and SHGs. Rural LFPR surged (~69%), with interstate variations, while urban gains were modest. Marital status, age, and childcare significantly influenced LFPR trends. Read here

  • India In 2030: $7 Trillion Economy Dream Needs $2.2 Trillion Investment In Infrastructure, Says Report: India needs $2.2 trillion infrastructure investment to reach a $7 trillion economy by 2030. Private sector participation has dropped significantly, stressing government finances. Addressing delays, financing issues, and revenue risks can revive private investments and ensure sustainable growth. 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 1st 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.

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CAGR Insights – 29 Nov 2024

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

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Chart Ki Baat

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Gyaan Ki Baat 

As we are close to wrapping up 2024, the Indian financial scene is vibrant and dynamic, offering both challenges and opportunities for investors. Here’s what you need to know to make informed decisions:

1. Gold: The Shining Asset

Gold has always been a safe haven, and recent trends reinforce this. The Reserve Bank of India (RBI) has purchased 78 tonnes of gold this year, bringing total reserves to 882 tonnes—the highest share since 1999. With gold imports skyrocketing to $7.13 billion in October alone, driven by festive demand, now might be a great time to consider adding gold or gold-related investments to your portfolio. Gold ETFs are also seeing record inflows, with INR 19.6 billion invested in October.

2. Foreign Investment Trends

Despite recent volatility, foreign direct investment (FDI) in India surged by 23.3% in 2023-24, with the U.S. leading the charge. This indicates strong international confidence in India’s growth story. As an investor, look for sectors attracting FDI, such as technology and renewable energy, which are poised for significant growth.

3. Infrastructure Opportunities

The Finance Minister’s call for faster capital investment rollout is crucial, with only ₹50,069 crore approved out of an allocated ₹1.5 lakh crore for infrastructure projects this fiscal year. This presents a golden opportunity for investors in construction and related sectors as the government seeks to boost economic activity.

4. Interest Rates and Inflation

With inflation concerns still on the radar, keep an eye on the Reserve Bank of India’s monetary policy decisions. Changes in interest rates can significantly impact your investment returns and borrowing costs.

Personal Finance

  • Cabinet approves PAN 2.0: Will you have to apply for a new one? PAN 2.0 is here. Transforming taxation with faster processing, seamless data integration, eco-friendly paperless systems, and enhanced security—bringing a smarter, more efficient way to manage your financial identity. Read here
  • India may soon announce EPFO 3.0 plan; subscribers likely to get option to withdraw PF via ATMs: The government plans EPFO 3.0, offering features like lifting the 12% contribution cap, ATM withdrawals by 2025, and higher pension contributions. The goal is greater flexibility and improved retirement benefits for subscribers. Read here

Investing

  • Market Turmoil: Can Domestic Flows Counter $55B Equity Surge and FII Exodus? Will India’s surging $55B equity supply outpace record SIP inflows and FII exits? Learn what’s driving market volatility and where the next big opportunities lie! Read here
  • Here’s how Warren Buffett says he’d start investing today: Warren Buffett suggests looking for hidden opportunities in smaller, overlooked companies, where significant value might be lurking. In these under-the-radar stocks, there’s potential for surprising returns, though success requires deep knowledge and a bit of risk. Read here
  • Why Indian equities are thriving while global markets are grappling with declines: Amid global economic uncertainty, India’s equity markets remain resilient, driven by strong domestic institutional investments and improving sentiment. While global markets face declines, India’s stability, attractive valuations, and growth prospects make it an appealing investment opportunity. Read here

Economy & Sectors

  • India’s gig economy could add 90 mn jobs enabled by large multinationals: The gig economy in India is projected to grow to $455 billion by 2024, contributing 1.25% to GDP and creating 90 million jobs. It supports sectors like e-commerce and delivery, with efforts to improve worker conditions and promote inclusive growth. Read here
  • Indian economy to bounce back for 3 big factors: Here’s what Morgan Stanley forecasts: India’s economy is expected to recover, with GDP growth forecasted to reach 6.7% in Q4 FY25. Government spending, food inflation moderation, and a recovering job market are key drivers, while Q3 slowdown was attributed to reduced government spending. Read here
  • India’s Defence Sector Presents Long Runway of Growth: India’s defence sector is poised for substantial and sustained growth, driven by increasing capital expenditure, according to global investment banking firm JP Morgan. Key factors underpinning this growth include rapidly expanding defence exports, a significant emphasis on domestic manufacturing, high returns on capital employed (RoCE), and robust cash flows. 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 1st 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.

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15 Frugal Tips To Save A Lot Of Money

A frugal lifestyle is often confused with a life that sacrifices on quality. This is because the term frugal is, more often than not, misconstrued as a negative one. If done the right way, choosing to be frugal can actually add more value to your life. Do you agree? 

The art of frugal living

A lifestyle where you are very intentional with your spending is a frugal lifestyle. It is about prioritizing your money on things that truly matter, and cutting out all the frills that don’t. If you choose to only look at the sacrifices you make, it is bound to get difficult to stay on this path. However, if you look on the bright side, these sacrifices add to larger benefits down the road. 

Why is frugal living a great idea?

The benefits that come with choosing a frugal lifestyle are multifold. 

  • It puts you on the path to financial freedom by accelerating how quickly you achieve your personal financial goals.
  • It allows for a cause-and-effect reality to take hold in terms of finances.
  • You get to decide where you spend your hard-earned money. 

How does one live a frugal lifestyle?

If you’ve tried to lead a frugal lifestyle over the years but have fallen off the wagon, it’s okay. If you are new to this life, then it may seem difficult at first. That is also okay. We’ve been there. We are all for that frugal lifestyle, and over the years we have found tips and tricks that really lower expenses and help us save a lot of money. 

We’ve put together some of our favorite tips for you to save money while living your best life. When we say this, we understand that a frugal lifestyle means different things to different people. We just want to help you live a life that aligns with your goals. 

  1. Start budgeting your finances 

Your first tool towards a frugal lifestyle and your financial success is creating and sticking to a budget. It helps you prioritize things that are important and cut out the ones that are not. There are many tools available to help you plan your budget. You can start by maintaining either a weekly or monthly budget, whatever works for you. 

  1. Take stock of your pantry 

If you ever walk into your pantry and take stock of the food available, you’ll be surprised. In today’s digital world, ordering food at the click of a button has spoiled us rotten. Instead, get into the habit of making meals at home with what is available. The fact that it is healthier than take-out food is an added bonus. Of course, you can indulge in food from your restaurant; you just don’t need to do it four times a week. 

  1. Sell the things you don’t need 

If you look around, there’ll be five things in your direct line of vision that you can do without. Set a day aside, look around the house and put aside things that you have outgrown. With a little bit of effort, this clutter can be cashed through different platforms such as Facebook and eBay, to name a few. 

  1. Start thrifting 

Local thrift stores and online marketplaces can really surprise you with the things on sale and the prices they are available at! Apart from saving up tons of money, you’ll also be saving the planet. A win-win situation, we say. 

  1. Upcycle your wardrobe 

Have you ever considered shopping in your closet? Yes, it’s true. If you look into the deep corners of your closet, you’ll unearth clothes and shoes that are begging for your attention. Sew some patchwork on that jacket or cut your denim and turn them into shorts. You can be fashionable, even on a budget!

  1. Walk or bike whenever you can 

We’re all guilty of taking the car to the nearby grocery shop that is within walking distance. Next time, ditch the car and walk instead. Not only will you save on a lot of petrol money, you’ll also end up burning some calories in the process. 

  1. Workout at home 

A membership at a good gym can really burn a hole in your pocket. Instead, join an online workout class that is relatively cheaper and also lets you work out at ease. Or you can ditch a membership altogether and pull out a video from YouTube instead.

  1. Automate your savings and investments 

It is easy to fall into the habit of overspending when your savings and investments are not automated. Get a financial advisor on board and figure out places where you can invest in and automate them. Also, go through your expenses and set up automatic payments wherever possible. 

  1. Evaluate your subscriptions 

Do you really need subscriptions to six OTT platforms? You’ll be surprised at the amount you pay on an annual basis just to watch one movie from that one platform. Keep the ones that are worth keeping and cancel the rest. 

  1. Get a side gig 

The gig economy is booming in the country and all over the world. Pick up a part-time job near your house or even one that requires you to work from home. There are tons of exciting options available.

  1. Shop in bulk 

You’ll be surprised at the amount you save when you buy certain things like toilet paper, soap, paper napkins, among others, in bulk. The price per unit is low when you purchase large quantities. Make a list of items that you use daily, and next time you go grocery shopping, buy them in bulk and keep them. 

  1. Plan your travels better 

Travelling does not have to be an expensive affair if you plan it well. Try to plan your travels during the ‘off-season’ as everything is relatively cheaper. Ditch the expensive hotels and opt for a beautiful Airbnb instead. Also, avoid the tourist traps and eat where the locals eat, instead. Not only will you save up on cash, but you’ll also get to eat some of the best food!

  1. Make gifts instead of buying 

There is a certain emotion associated with gifts that are handmade instead of store-bought. Gifting during the holiday season can be expensive. You can check out videos on YouTube for some great gift making ideas!

  1. Grow your vegetables 

If you are blessed to have a small open patch in your house where you can grow a vegetable garden, do it! Apart from being fun and inexpensive, there is also a sense of great satisfaction associated with it. 

  1. Ditch the expensive coffee 

We’ve all been there and done that. Try ditching that expensive cup from Starbucks and instead start brewing your coffee at home. There are some top-notch home-grown brands that source the best coffee from all over the country. Your wallet and taste buds will thank you.

As you can see from the tips above, a frugal lifestyle does not ask you to give up your favorite cereal brand or stay at home instead of going on a vacation. Also, don’t cut back on too many things too fast, as it is bound to backfire. It all comes down to the strategy and approach you choose for yourself. If you get addicted to this lifestyle, we completely and happily accept all the blame!