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CAGR Insights – 1 Sep 2023

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

Index1-Sep-2325-Aug-23Change
Nifty 5019,43519,2660.88%
Nifty 50017,07516,8211.51%
Nifty Midcap 50 11,26111,0222.17%
Nifty Smallcap 10012,38611,8694.36%

Chart Ki Baat

Source: https://twitter.com/hktg13/status/1696827226552254751?s=20

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Gyaan Ki Baat

Information Ratio

An assessment of portfolio returns above those of a benchmark, often an index, in relation to the volatility of such returns is called the information ratio (IR). It is a risk-adjusted measure of active management performance. Usually, an index that reflects the market, a specific sector, or an entire industry serves as the benchmark.
The IR is frequently used to gauge a portfolio manager’s level of expertise and capacity to produce excess returns in comparison to a benchmark; but, by including a standard deviation or tracking error, component in the calculation, it also makes an effort to determine the consistency of the performance.

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

Personal Finance

  • The evolution of retirement – You also only have one shot at retirement planning. There are no mulligans. Leisure itself is still a relatively new concept for humanity that’s only been around for a few generations. Read here

  • Tracking Difference and Tracking Error: What Every Investor Needs to Know – In the replication process of Index, several practical challenges can prevent the passive fund from achieving the same return as the benchmark resulting in a slight deviation. These deviations in the returns are measured in terms of tracking difference & tracking error. Read here.

  • Phonepe forays into stockbroking – Discount broking app Share(dot)Market is available as a mobile app and a web platform. Read here.

Investing

  • Toys for Billionaires: Sports Franchises as Trophy Assets!-  In many ways, sports franchises are the ultimate trophy assets, since they are scarce and owning them not only allows you to live out your childhood dreams, but also gives you a chance to indulge your friends and family, with front-row seats and player introductions. Read here.

  • Identifying Multibaggers & Top Stocks & Sectors In Focus – Vijay Kedia – “If you find a theme, then stay invested,” Kedia said, advising investors to stay in a sunrise industry at any cost and stay out of a sunset industry at any cost. Watch here

  • STOIC Podcast with Prabhakar Kudva – Prabhakar Kudva is the co-founder and director at Samvitti Capital. He is a successful long-only growth investor. In this episode of Stoic Talks, we will delve deeper into his two separate investing buckets, stock selection, allocation process, and how he has built setups around structural tendencies like momentum, mean-reversion, smallcap, exhaustion etc that are present in the market. Watch here

  • Banks’ Margin Trajectory Sees Strain in Q1 as Deposits Cost Rise Sequentially – Net Interest Income (NII) of Scheduled Commercial Banks (SCBs) grew by 26.5% year-on-year (y-o-y) to Rs. 1.84 lakh crore in Q1FY24 due to healthy loan growth and a higher yield on advances over the year-ago period. Read here.

Economy

  • Ray Dalio’s country index highlights India’s upward trajectory – Billionaire investor and hedge fund manager Ray Dalio has foreseen India achieving a growth rate of roughly 7% over the succeeding 10 years. Read here.

  • Will Licence On PC Imports Harm IT Firms, GCCs Or Will Domestic Cos Swiftly Grab The Opportunity? – From Nov laptop, PC imports will need a licence. Will this harm IT cos, GCCs and business in general? Or will domestic cos swiftly grab the opportunity? Bain India’s M Chawla, Counterpoint’s Tarun Pathak, Nasscom’s A Aggarwal, Dixon’s S Gupta discuss with Latha Venkatesh. Watch here.

  • Why the rural economy isn’t out of the woods yet – Despite a recent uptick in demand, the signs of stress in India’s hinterlands are hard to rub off. Read here.

  • India’s beach paradise Goa is overrun with digital nomads – Rents are up, startups are setting up all over the state, but locals can’t get jobs easily. 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 – 25 Aug 2023

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

Index25-Aug-2318-Aug-23Change
Nifty 5019,26619,310-0.23%
Nifty 50016,82116,7580.38%
Nifty Midcap 50 11,02210,8241.82%
Nifty Smallcap 10011,86911,6831.59%

Chart Ki Baat
An Indian spacecraft became the first to land on the rugged, unexplored south pole of the moon

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Gyaan Ki Baat

When an investor sells units of an equity fund in the stock exchange or offers them for repurchase to the fund, he will have to incur Securities Transaction Tax (STT) i.e., STT is applicable only on redemption/switch to other schemes/sale of units of equity oriented mutual funds whether sold on stock exchange or otherwise. STT is not applicable on purchase of units of an equity scheme. It is also not applicable to transactions in debt securities or debt mutual fund schemes. The applicable rate of STT is 0.001%.

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

Personal Finance

  • Intelligent vs Smart – If you’re merely intelligent, you might focus all of your effort on finding precise truth. If you’re smart, you’ll focus just as much effort on delivering an effective message around that truth, realizing that the most powerful truth does no good if you can’t get people to pay attention to it. Read here

  • India’s Rising Prosperity – Prime Minister writes on LinkedIn analysing the ITR data.  Read here

  • Mutual Funds investor might have to pay extra for direct plans after SEBI’s this decision- Direct plan expenses should be defined by actual expenses incurred, and not by how much brokerage is paid in regular plans. Read here.

  • Small Savings Collection Boost Could Reduce Government Borrowings This Fiscal – Top contributors to government’s savings have been the Senior Citizen Savings Scheme and the newly launched Mahila Samman Patra. Read here.

Investing

  • What is momentum and why does it persists? – For a momentum factor practitioner like us, Mr Wesley Gray of Alpha Architect is one of the must-reads for understanding the academic roots of factor investing from a practitioner standpoint and even more importantly in debunking the myths which surround momentum investing. Read here.

  • Q1 Results Review: Earnings growth continues even as revenue slows; margins rescue – The performance of India Inc. in the June quarter was highlighted by strong net profit growth with tepid rise in topline. Easing input costs supported margin expansion for most sectors during Q1FY24. Read here

  • SEBI Unravels How Brightcom Group Cooked Its Books – The Securities and Exchange Board of India’s interim order barred Chief Executive Officer Suresh Kumar Reddy and Chief Financial Officer Narayana Raju from company boards. The regulator also restrained 22 other entities, including investor Shankar Sharma, from disposing of the company’s shares. Read here

Economy

  • India inflation to return to comfort band once veg price shock ebbs – MPC’s Goyal- The spike in prices of items like tomatoes has been “unprecedented” but normally there is a seasonal softening in vegetables after a shock (price spike), said Ashima Goyal, an external member of the Reserve Bank of India (RBI) committee, in an interview with Reuters late on Thursday. Read here.

  • Startups Riding Digital Infrastructure Could Transform Indian Economy- India emerged as the fourth-most popular destination for startups in the world in 2022, attracting 4.2% of global venture capital, behind the US (41%), mainland China (18%) and the UK (6%), according to S&P Global Market Intelligence. Read here.

  • The rise of Municipal bonds in India – 4 cities in UP are getting ready to launch something called municipal bonds. Kanpur, Prayagraj, Agra, and Varanasi want around ₹500 crores from the public. They want to improve their water supply facilities.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.

Posted on

CAGR Insights – 18 Aug 2023

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

Index18-Aug-2311-Aug-23Change
Nifty 5019,31019,428-0.61%
Nifty 50016,75816,860-0.61%
Nifty Midcap 50 10,82410,8220.02%
Nifty Smallcap 10011,68311,748-0.55%

Chart Ki Baat

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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.

Posted on

CAGR Insights – 11 Aug 2023

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

Index11-Aug-234-Aug-23Change
Nifty 5019,42819,510-0.42%
Nifty 50016,86016,882-0.13%
Nifty Midcap 50 10,82210,7350.81%
Nifty Smallcap 10011,74811,6910.49%

Chart Ki Baat

Changing Landscape of Automobile Sector in India

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Bazaar Ki Baat

In the 10th edition of “Bazaar ki baat”, our team discussed what moved the market in July, sectoral performance, Why fund size matters in smallcap investing, and why Inflation is called the invisible tax.

Watch here.

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

Personal Finance

  • RBI to enable borrowers to reset home loan rates whenever they want – RBI Governor Shaktikanta Das revealed that the central bank will soon introduce a framework allowing borrowers to transition from floating interest rates to fixed interest rates. Read here.

  • SEBI backtracks on regulating Finfluencers . – SEBI has clarified that finfluencers do not come under SEBI Investment Adviser regulations. Read here.

  • Low cost is the major driving factor behind passive funds popularity: Survey – 61% of investors say they have invested in at least 1 passive fund, underscoring the fast-growing adoption of passive funds in India. Read here

  • Having a corpus as a goal – does it help? – For individuals who do not have defined goals, targeting a wealth number helps. Read here.

Investing

  • Services sector and personal loans continue to see credit demand – Gross bank credit offtake witnessed an accelerated rise of 16.2% year-on-year (y-o-y) in June 2023. The growth was driven by services, personal and agriculture loans. Read here

  • Bigger and Greener : India automobile sector – India’s light-vehicle market has grown from “small is beautiful” to favoring larger models. Read here.

  • Indian equities have witnessed the most significant earnings growth as compared to other major economies – India’s earnings growth continues to support the market. Read here

  • Automobile sector in India seems to be at an inflection point – Growth in India’s per capita GDP has so much widespread implications across sectors. A country’s per capita GDP and Passenger Vehicle sales have a strong positive correlation. Read here.

  • India equity valuations has seen an uptick post recent rally. – The difference between India 10Y bond yield and earnings yield rises above long-term average, reducing the attractiveness of equity as compared to bonds. See here

  • Uday Kotak is wanting for the market’s support – The stock has underperformed the benchmark Nifty Bank Index by nine percentage points since an April vote where 99% of shareholders supported Kotak continuing as a non-executive director. Read here

  • What FIIs bought and sold in July? – The FPI Assets in India at $647 billion is getting tantalizingly close to the previous peak of $667 billion touched in October 2021. Read here.

Economy

  • RBI pauses with a hawkish tone – The Reserve Bank of India held its key lending rate steady on Thursday as expected but moved to reduce the amount of cash in banking system as inflation concerns resurfaced following higher-than-usual seasonal spikes in food prices in recent weeks. Read here.

  • India merchandise exports in free fall – The headwinds of slowing global growth are beginning to buffet India’s trade on all sides. Read here.

  • India’s Demographic dividend: key to unlock its global ambition – The sheer size of India’s workforce is a major competitive advantage as the country tries to become a global design and manufacturing hub. Read here.

  • The exclusive network behind India’s global tech success: The IITs themselves have embraced their startup-spawning potential — there are currently 4,459 Indian startups that have at least one IIT-educated founder, according to Tracxn. Many of the schools run campus programs to foster entrepreneurship. 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.