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CAGR Insights – 27 Oct 2023

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

Index27-Oct-2320-Oct-23Change
Nifty 5019,06019,541-2.46%
Nifty 50016,77417,208-2.52%
Nifty Midcap 50 11,04411,339-2.60%
Nifty Smallcap 10012,64112,943-2.33%

Chart Ki Baat

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Gyaan Ki Baat

Consolidated Account Statement (CAS) consists of holdings in demat accounts held with CDSL and NSDL. It also includes units of mutual funds held in Statement of Accounts. This statement gives a combined view of an investor’s investments across demat accounts and mutual funds.

CAS is sent on a monthly basis if there is any transaction in investor’s demat accounts or mutual fund folios. However, in case there is no transaction for a particular month in a year, the CAS will be sent to the investor on a half-yearly basis. CDSL has provided a facility for investors to download their CAS through its website(www.cdslindia.com)

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

Personal Finance

  • For NRIs who plan to come back to India, investing in India is a no brainer. – A friend who lives in London was telling me why she does not invest aggressively in India. Read here.

  • SEBI acts against Fininfluencers – Baap of Chart asked to refund over Rs 17 crore in fee, banned from securities market- Sebi order has been passed against fraudulent investment advisory service. Read here

  • SEBI proposes new ‘high-risk’ category of mutual funds, seeks comments from AMFI – To ensure that small investors don’t get pulled in by high-risk strategies, SEBI has proposed that this new category- if the proposal goes through- should have a higher minimal investment barrier.Read here

  • Global hedge funds are boosting their presence in the long-shunned Indian market – Singapore-based multi-strategy hedge fund Dymon Asia Capital and Citadel Securities are among funds and securities brokers entering a market they had smaller exposure to in the past, worried about tax issues and their ability to hedge investments through short-selling. Read here.

Investing

  • Lab Grown diamonds impacting the natural diamond market – Polished natural diamond rates crack 35% in a month. Read here.

  • Ackman, Gross Abandon Bearish Bond View With Yields Bouncing Off 5% – Whether the retreat of the two vocal bears will mark the peak of the current bond selloff remains to be seen. Certainly some market watchers say 10-year yields pushing up toward 6% isn’t out of the question. Read here

  • Massive consumer brand, Johnson & Johnson pursues bankruptcy filing – The iconic brand faces massive liability due to tens of thousands of personal injury lawsuits related to its talc products allegedly causing ovarian cancer.  Read here.

  • India bond yields turn attractive – Yields have increased for Indian government bonds due to the Israel-Palestine conflict and its impact on oil, and uncertainty on RBI’s liquidity actions.  Read here.

  • Does market signal credit risk changes? – The study showed that contrary to popular belief Market movements or signals, may not be reliable predictors of changes in credit profiles. Read here.

Economy

  • Nothing Unsecured about Unsecured Lending –The share of secured portfolio dominates the unsecured portfolio within retail space. Further, total share of unsecured retail loans is only around one-tenth of ASCBs credit portfolio, indicating contained risk at the time. Read here.

  • Projection of Kharif output:2023-24 – Overall Kharif sowing has inched up marginally with much higher acreage in rice. However, pulses and oilseeds sown area logged lower sowing. Given this backdrop, we expect marginal improvement in kharif output Read here.

  • What has been the consumption story so far in manufacturing? –The next couple of months will determine whether consumption has actually picked up as producers increase their output.  Rural demand will hold the clue here and there can be some pressure from lower output in some crops. Read more.

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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.

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CAGR Insights – 20 Oct 2023

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

Index20-Oct-2313-Oct-23Change
Nifty 5019,54119,734-0.98%
Nifty 50017,20817,376-0.96%
Nifty Midcap 50 11,33911,610-2.34%
Nifty Smallcap 10012,94312,8910.40%

Chart Ki Baat

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Gyaan Ki Baat

Reverse merger

Reverse mergers are also referred to as a reverse takeover or a reverse IPO – when a private company becomes a public company by purchasing control of the public company. They are backdoor mechanisms which are chosen as a more cost-effective and expedited alternative when compared to traditional IPOs. Unlike a conventional IPO, a reverse merger does not necessitate the raising of new funds.

Reverse mergers are conducted with the aim of achieving various objectives, such as accessing capital markets for fundraising, increasing the company’s visibility and reputation, and facilitating acquisitions or strategic partnerships. For example, Warren Buffet’s company, Berkshire Hathaway went public with the help of a reverse merger.

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

Personal Finance

  • Gamification of Indian equity markets – In most global markets, derivatives volumes account for 5-15x their cash market volumes. In India today however, derivative volumes are more than 400x higher than that of underlying cash market today. Read here

  • Some hard truths about money.  – A lot of financial planners I’ve talked to say one of their biggest challenges is getting clients to spend money in retirement. Even an appropriate, conservative amount of money. Frugality and savings become such a big part of some people’s identity that they can’t ever switch gears.Read here

  • Indian Real Estate Market Insights – The residential market breached a nine-year high in terms of annual residential sales in 2022 in an inflationary environment that caused increasing concerns on economic growth across the world. Thus, while the momentum looked strong, it remained to be seen if it would sustain in 2023. Read here.

  • A very different kind of “retirement problem– When we leave a country, we have some experiences, memories and perceptions which we take along. Read here.

  • The UPI Paradox– UPI has made life easier for merchants and individuals, but has it become a bit of a burden for fintech startups?. Read here.

Investing

  • A Paradigm Shift in India’s Consumption Patterns is happening right in front of us – With our youthful population and a burgeoning working-age demographic set to last for next 2-3 decades, the prospects for increased per capita income and disposable income are looking brighter than ever. Read here.

  • Optimism And The Stockdale Paradox – To survive and succeed like Jim Stockdale, we need to hope for the best but also be prepared for the worst. That would necessitate keeping the faith even if economic growth slows, some macro indicators weaken or capital flows turn negative. It is easy to be an optimist when the portfolio is hitting new highs, but we must retain our optimism even when stock prices are falling. By confronting the brutal facts of the market, investors can avoid the trap of overconfidence and make more measured choices. Read here

  • KPR Mill training its employees for other companies – Recently, it adopted a system of campus placements; so far, 5,000 employees have been placed in IT companies. Ramasamy says they are the first organisation in the world to let their employees move to other companies. The gesture has instilled confidence in girls who come to work for them from villages around Coimbatore. Read here.

Economy

  • India Capex story – is the centre push enough? – Over the past few years, the public capex has remained strong mainly led by the centre. Notably, the share of capex within the total expenditure has undergone a substantial increase, rising from 12.1% in FY21 to 22.2% in the budget estimate for FY24. Read here.

  • The gap between India and China is massive – While China’s growth is downshifting, it was still massively larger by nearly $15 trillion dollars last year, says HSBC. “Even with China’s growth slowing, and India’s accelerating, the gap between the two economies will continue to rise for the foreseeable future, expanding to $17.5 trillion dollars by 2028 on the IMF’s forecasts,” the report says, adding that this difference is equal to the current size of the European Union’s economy. Read here.

  • Dramatic times in Japan’s capital markets: Jefferies’ Chris Wood – The intervention by the Tokyo Stock Exchange to improve capital efficiency among listed companies has proved “decisive”, according to the global head of equity strategy at the brokerage. Read more.

  • The Warehousing Boom in India – Sensing the opportunity in warehousing infrastructure and expected rise in demand, institutional investors are pumping in capital. The sector has received $10 billion investment in six years since introduction of GST. 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.

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CAGR Insights – 13 Oct 2023

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

Index13-Oct-236-Oct-23Change
Nifty 5019,73419,6510.42%
Nifty 50017,37617,2920.48%
Nifty Midcap 50 11,61011,5430.58%
Nifty Smallcap 10012,89112,8480.33%

Chart Ki Baat

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Gyaan Ki Baat

Tracking error is a critical concept in the world of finance and investment, primarily associated with index funds and their performance relative to the market. Beta, a measure of an asset’s volatility compared to the market, is set at 1 for the market. Index funds, designed to replicate a market index, ideally have a Beta of 1 and should, in theory, earn the same returns as the overall market.

However, the reality is that index funds can deviate from the market’s returns, and this deviation is quantified as the tracking error.

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

Personal Finance

  • The large cap active Mutual funds’ underperformance story continues – As per the recently released SPIVA report by S&P,  in the first half of 2023, majority of Indian Equity Large-Cap  funds failed to beat their benchmark, with 58% of actively managed funds underperforming the S&P BSE 100. Read here

  • SEBI is like the police that make an appearance in the final scene in a Bollywood movie, you are the hero: SEBI whole time member to MF industry-  He also said lauded the MF industry for being “a fantastic ambassador for the securities market” by helping with financial inclusion within the securities market ecosystem. Read here

  • Business Trips have evolved – The Traveller Value Index 2023 report by online travel company Expedia notes that 76% of participants wish to extend their work tripfor leisure purposes, and 28% plan to opt for a flexication. Read here.

  • The Thin Line Between Bold and Reckless –  The hardest thing about studying businesses and investors is that many traits that fueled their success could have just as easily triggered failure. But we rarely think about it that way when learning from specific outcomes. Read here

  • How do I become a stock investor / start investing in stocks / get better at stock picking? – Shruti outlines her perspective – I personally think no course can “teach” stock investing. While courses speed up the learning curve, the real learning happens by getting hands dirty. Read here.

Investing

  • The Big Picture – A Synthesists’ perspective on few Mega Trends – 8 mega themes spanning multiple decades & how it may shape investment ahead.  Read here.

  • We are all wet cement – Loved this conversation with Todd Combs of Berkshire. Read here

  • End of lock-ins may bring a flood of shares to Street- The next four months could see a massive supply of shares, potentially reaching up to $12 billion from about 40 companies, excluding state-owned firms that went public in the last two years. This surge arises as various lock-in periods are set to expire for both promoters and investors who participated in pre-IPO placement. Read here.

  • Premiumization is becoming a theme in every sector – One thing which surprised me was that 42% of the respondents plan to purchase a premium smartphone (INR 30,000 or ~$360 and above). Read here.

Economy

  • India’s festival season spurs online shopping spree – RedSeer, a Bangalore-based consultancy, which monitors over 100 platforms covering 90% of online sales, predicts virtual shoppers will spend a record $11 billion during the month to mid-November – which would be nearly 20% more than last year. Read here.

  • Cricket fans throng hospitals for overnight stay amid Indo-Pak hysteria – Several doctors told local media the rush for check-up ‘packages’ was an ingenious way to find affordable accommodation as hotel costs have soared up to 20 fold ahead of the match. Read more.

  • India’s retail inflation eases to three-month low in September – Annual retail inflation rose 5.02% in September, down from 6.83% the previous month. 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.

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CAGR Insights – 6 Oct 2023

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

Index6-Oct-2329-Sep-23Change
Nifty 5019,65119,6380.07%
Nifty 50017,29217,2930.00%
Nifty Midcap 50 11,54311,612-0.59%
Nifty Smallcap 10012,84812,7490.78%

Chart Ki Baat Cricket World Cup may add $2.4 billion to Indian economy says Bank of Baroda report.

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Bazaar Ki Baat

Factor investing strategies and their performance across diff. Macro conditions

In the 12th edition of “Bazaar ki baat”, we discuss two special topics (i) Factor Strategies and their performance in diff. Macro conditions and (ii) Drawdowns in Investing and its implications in investing decisions. Watch here.

Gyaan Ki Baat

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana was launched by Prime Minister Narendra Modi on 22 Jan 2015 under the Beti Bachao Beti Padhao campaign. This is a government-backed savings scheme designed with the purpose of creating funds for girl child education and marriage expenses. The account can be opened anytime between the birth of the girl child and the age of 10 years.

The parents can contribute a minimum deposit amount of INR 250 and a maximum of INR 1.5L in each financial year upto 15 years from the opening of the account. The rate of interest is currently 8% and the accrued interest is exempt from tax. Investments made in the SSY scheme are eligible for deductions under Section 80C upto INR 1.5L.

The scheme has a maturity period of 21 years from the date of opening or at the time of marriage after she has completed 18 years of age. Also, it is mandatory that the girl child operates the account on attaining 18 years of age.

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

Personal Finance

  • SEBI makes it easier for legal heirs to claim shares, mutual funds after investor’s death- SEBI just made the life of surviving family members much easier to claim their rightful inheritance through a centralised death reporting mechanism. This will reduce the number of institutions to which the nominees have to reach out to in order to claim their inheritance. Read here

  • Should you opt for HDFC Sanchay plan? – To me, this product mathematically looks like a decent product, but practically a very silly one. Yet this is a very popular product. Read here.

  • 95% of investment advisers penalised by SEBI provide trading calls: Study  –  A study of SEBI orders passed against registered investment advisers over the years found that most offer only equity derivative and speculative trading calls and tips; 51 percent of the orders were passed against entities from Indore, which is infamous for spam equity phone calls. Read here

  • Madhabi Puri Buch cuts a deal with “good guys” of advisory industry – At the conference held on October 4, Buch shook hands on a deal that said that the regulator would ease the norms to hire talent at an advisory if the advisories were willing to be held responsible for the bad actions of their employees Read here.

  • An inside view on the collapse of LTCM – 25 years ago this month, catastrophic losses at the hedge fund Long-Term Capital Management, or LTCM, almost brought the entire financial system to its knees. The story has been told many times, but always by outsiders. On the latest episode of The Investing Show, one of LTCM’s founding partners, VICTOR HAGHANI, recalls events from an insider’s point of view.  Read here.

Investing

  • Investing against the Grain: Spotting Quality in Downturn – They zero in on small-cap blue-chip companies (QID or Quality in Downturn) navigating temporary business downturns. These are firms whose stock prices have been unjustly impacted, presenting ripe investment opportunities.  Read here.

  • Estimating long-term equity returns – Data says India’s “long-term” returns range from 7% to 20%, depending on when you invested. The way we set expectations needs to factor in this variability. This post explores two ways to set expectations for long-term equity returns. Read here

  • The rating upgrades continue to be higher than decadal average – The upgrades were driven by an expected expansion in cash flows this fiscal for sectors linked to domestic demand and for those benefiting from high government spending. These sectors, such as infrastructure, services and consumables, kept the overall upgrade rate elevated. Read here.

Economy

  • Cricket World Cup may add $2.4 billion to Indian economy – Based on a report by BOB, it is estimated to give a boost of Rs. 18,000-Rs. 22,000 crores on gross output. Most of this will be concentrated in the services sector, with hospitality sector benefitting the most. Read here.

  • India’s Remarkable 5G Advancement Elevates its Global Mobile Ranking – India is now ranked 47th globally, ahead of even the UK (62nd) and Japan (58th). Read more.

  • India cbank keeps interest rates steady for 4th straight meet – The Reserve Bank of India kept its key lending rate steady for a fourth consecutive policy meeting on Friday, as widely expected, but signalled it would keep liquidity tight using bond sales to bring inflation closer to its 4% target. 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.