CAGRfunds – Blog

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

Index	4-Aug-23	28-Jul-23	Change
Nifty 50	19,510	19,636	-0.65%
Nifty 500	16,882	16,941	-0.35%
Nifty Midcap 50	10,735	10,686	0.46%
Nifty Smallcap 100	11,691	11,595	0.83%

Chart Ki Baat

Gyaan Ki Baat

Corporate Debt Market Development Fund (CDMDF) – Looking at the liquidity crisis in 2008 and the recent Franklin Templeton case, CDMDF was introduced in Union Budget 2022 by Finance Minister and was established on 27th July 2023. The main objective of this fund is during liquidity/economy crisis, investors can freely redeem their funds.  In the past whenever there is a credit issue in the market, the whole industry gets into panic causing a huge rush towards redemption of their investments. To cater the liquidity problem of AMC, Corporate Debt Market Development Fund will buy the securities from AMC and provide them the liquidity.

CDMDF is an alternative investment fund and can be subscribed by AMCs who are running debt mutual funds. This fund is managed by SBI Mutual Fund and will ensure that funds are available to participating mutual funds in the event of liquidity crisis.

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

Personal Finance

• ITR filings in AY24 jump 16%, peak to record high of 6.77 crore: CBDT. – The returns filed through ITR-2 forms, used by resident individuals and Hindu Undivided Family (HUFs) with income of over 50 lakh, account for 11.97 percent (81.12 lakh). Read here.
  
  
• The Return on Hassle Spectrum – An interesting chart showing the difficulty/hassle of an investment compared to its expected annualized return (note: expected). Read here
  
  
• India’s women are saving more – RBI report shows women account for 39% (₹37 lakh crore) of overall individual deposits. Read here.

Investing

• “What does it take to build a company that lasts 100 years?” – India is home to multiple enterprises that have redefined strength and commitment in their path of survival. Read here
  
  
• Investing at All Time Highs! – Focus on the market cap. as one goes down the marketcap curve, the prospect of higher intensity drawdown increases. Read here.
  
  
• Indian corporates are turning to big banks to help fuel their growth. – From 2021 to 2022, the share of Indian corporates working with one of the largest Indian private sector banks for overall corporate banking services increased to 38% from 33%. Read here
  
  
• Morgan Stanley upgrades India to ‘overweight’; downgrades China – India is arguably at the start of a long wave boom at the same time as China may be ending one. Read here
  
  
• International Coal Prices have softened in Q1FY24. – The heightened coal prices was a big pain area for certain industries last year. While the prices have now dropped compared to FY22, they have remained above the pre-Covid-year price averages. Read here.

Economy

• Fitch downgrades U.S. long-term rating to AA+ from AAA – “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said.  Read here.
  
  
• India Now Among Apple’s Top 5 Markets – The premiumization trend gained momentum as the segment grew at a faster rate of 112% YoY. Rise of a value-based incentive system for retailers, aggressive promotions, availability of credit through various financing schemes, and OEMs’ focussed approach are driving premiumization in India. Read here.
  
  
• India’s rice export ban trigger panic:  India, the world’s largest rice exporter, banned the exports of non-basmati white rice on Jul. 20. India accounts for more than 40% of world rice exports, which amounted to 55.4 million metric tons in 2022  Read here.

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Check out CAGRwealth smallcase portfolios here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

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

Index	28-Jul-23	21-Jul-23	Change
Nifty 50	19,636	19,745	-0.55%
Nifty 500	16,941	16,904	0.22%
Nifty Midcap 50	10,686	10,447	2.29%
Nifty Smallcap 100	11,595	11,530	0.57%

Chart Ki Baat
ITC demerger of hotel business

Gyaan Ki Baat

New Fund Offer – NFO

A “New Fund Offer” (NFO) is the term used when a mutual fund scheme is initially made available for investment. In order for the fund manager of that mutual fund scheme to construct a portfolio based on the investment goals of the scheme, NFO must amass a sufficient quantity of initial corpus. The fund has no historical return data, which is one of the biggest risks of investing in an NFO. The mutual fund house experience and performance needs to be reviewed while making this decision.

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

Personal Finance

• Explicit Fee disclosures in rupee terms may be the way forward for Mutual funds – A recent study that may have important policy implications for the much-discussed MF expense (TER) regulations in India and even globally. Read here.

• How is the Top 1% households in US invest their money?– The top 1% also has a higher share in things like cash, bonds, and private businesses. But you can see that most of their wealth is invested in the stock market, while housing is by far the biggest asset for those in the bottom 90% . Read here

• Towering Tech – US Tech’s current adjusted HHI level of 9.6 is in the 99th percentile of observations, indicating an extreme level of concentration for the sector compared to the long-term average of 4.9. When concentration has been relatively high in the past, it has subsequently tended to decline. Read here.

• NRI Series 7 – NRI Mutual fund Taxation: Things to Know – Mutual funds are a preferred choice of #investment not just for Indians but also NRIs. But a lot of NRIs worry about the tax implications of their investments. Watch here.

• Global fintech funding nearly halves to $23B in H1 2023  – Venture capital funding of fintech startups has plunged globally by 49% year over year to $23 billion in the first half of 2023 amid an economic downturn.. Read here.

• India’s Jio Financial Services, BlackRock to launch asset management venture – The two companies are targeting an initial investment of $150 million each in the joint venture, Jio Financial said in a statement on Wednesday. Read here.

Investing

• PPFAS CIO Rajeev Thakkar talks about his investment style – Management quality, promoter quality, low leverage, and good business characteristics. Read here

• Attrition Rates: Foot Soldiers Of Private Indian Banks Hopping Posts More Frequently –  aggressive sales targets, limited immediate growth potential, workplace behaviour and long work hours are some of the reasons. Read here

• ITC demerger and the rationale behind it – Hotels contributed only 2% of ITC EBIT in FY23ITC is yet to declare the share swap ratio for the hotels subsidiary and has also not declared why it chose to keep 40% stake in it. Read here

• Vedanta’s dividend payouts to parent concern lenders – Banks have turned cautious on their exposures to Vedanta Ltd, worried that sizeable dividend payouts to ease the parent’s debt burden might stress the balance sheet of the domestic entity to which they have loaned money, said two bankers close to the matter. Read here.

Economy

• Fed lifts rates, Powell leaves door open to another hike in September – Powell made no promises either way, with a September meeting eight weeks from now considered “live” for another rate increase, though a continued slowing of inflation and weaker economic data may also prompt policymakers to pause. Read here.

• The slow pace of 2-wheeler market recovery – 2-wheelers have still not been able to recover to the pre-covid levels. Most of the other indications in ICRA business activity monitor are much above the pre-covid levels.. Read here.

• FM to launch two important initiatives for corp bond market : Finance Minister Nirmala Sitharaman will launch the backstop fund for corporate bond market and Limited Purpose Clearing Corp for repo transactions in corporate bonds in Mumbai on Friday.  Read here.

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Check out CAGRwealth smallcase portfolios here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

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

Index	21-Jul-23	14-Jul-23	Change
Nifty 50	19,745	19,590	0.79%
Nifty 500	16,904	16,781	0.73%
Nifty Midcap 50	10,447	10,352	0.91%
Nifty Smallcap 100	11,530	11,325	1.81%

Chart Ki Baat

Gyaan Ki Baat

With a week left for filing your ITRs, check if you knew about the below benefit available towards health expenses.

Under section 80D of Chapter VI-A of Income Tax Act, one can claim INR 5K as deduction against medical consultations and lab tests. We do not need to furnish any documentary proof for the same. This deduction is subject to the upper limit of INR 25K which is available as deduction for Mediclaim for self.

Further, one can also claim deduction of expenses done towards consultations, medications and tests of dependant senior citizen parents up to a maximum amount of INR 75K.

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

Personal Finance

• Why are world leaders pleading to get Taylor Swift to tour their countries? – Media reports say that because UOB bank credit cards had preferred access to Taylor Swift’s concert tickets, there was a 45 percent surge in daily credit card applications in Singapore, Thailand, Malaysia, Indonesia and Vietnam the week that she announced her concert dates. Read here.
  
  
• As The Income Tax Filing Deadline Approaches, How To File ITR Without Using Form 16? – Learn how. Read here
  
  
• What is Nasdaq’s special rebalancing and its impact? – Microsoft, Apple, Nvidia, Amazon.com and Tesla combined account for 43.8% weight in the index, according to Refinitiv data as of Monday’s close. As part of the rebalance that will come down to 38.5%.Read here.
  
  
• NRI Knowledge Series – Things to know about NRI repatriation? – Some #nris are certain that they will return to India at some point. But a lot of them don’t know what the future holds for them. And while they like to continue #investing in India, they would want to enjoy the flexibility of moving that money out of the country at some point. Watch here.
  
  
• Indian ROCKET PARTS IN AUSTRALIA? BEACH DISCOVERY SPARKS BUZZ – Space launches are no rarity, with a global count of around five to ten every week. Read here.

Investing

• Revenue growth expected to moderate but profit margin seen picking up in Q1FY24 – India Inc revenue growth likely moderated for the fourth straight time to 6-8 in the first quarter of this fiscal because of low realizations and high-base effect. However, operating profit margin is seen edging up to ~20% from 19.6% in the first quarter of last fiscal, and 19.3% in the fourth quarter, helped by easing commodity prices, especially crude oil. Read here
  
  
• At the start the 2023, the conventional wisdom was that 2023 would be trying year for US stocks and bonds. –  It should come as no surprise that markets surprised investors on almost every front. Valuation guru Aswath Damodaran notes that if the greatest sin in investing is arrogance, markets exist to bring us back to earth and teach us humility. Watch here
  
  
• Foreign investors are favouring India over China – Investors are increasingly tracking MSCI-ex China. China’s weight on the MSCI EM Index has reduced to 29.55 percent from 38.7 percent in 2020 whereas exposure to India stocks has increased from 8.3 percent in 2020 to 14.63 percent currently. Clearly, investors are looking to reduce exposure to China stocks for better returns. Read here
  
  
•  Megatrends in India – Temasek – Temasek believes that digitisation of the economy via UPI and ONDC, consumption, healthcare, and sustainable living are the megatrends in India. Watch here.
  
  
• Succession Planning is Critical for Disruptive Capital Allocation – Large businesses often face the risk of stagnating growth due to saturation of their core market or disruption from new innovators. One way to mitigate this risk is to invest in disruption, innovation & expansion of the business into adjacencies.  Read here.

Economy

• Did you know that Turkey has been one of the fastest-growing economies for the past two decades? – I personally thought that the Turkish economy is in a dire state and I am also right. Read here.
  
  
• FASTag saving fuel one toll at a time – Integrating FASTag into the country’s toll collection infrastructure has also increased the revenue — it rose from $770 million in 2013–14 to nearly $5 billion in 2022–2023, according to Gadkari. The government now aims to increase its toll revenue to over $15 billion by 2030. Read here.
  
  
• Q: How does the world’s biggest pizza brand respond to high inflation in the world’s most populous nation? A: With the world’s cheapest Domino’s pizza. And Domino’s are not alone in this.  Read here.

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Check out CAGRwealth smallcase portfolios here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

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

Index	14-Jul-23	7-Jul-23	Change
Nifty 50	19,590	19,332	1.34%
Nifty 500	16,781	16,565	1.30%
Nifty Midcap 50	10,352	10,170	1.79%
Nifty Smallcap 100	11,325	11,119	1.86%

Chart Ki Baat

Gyaan Ki Baat

Risk Profiling is assessing risk tolerance for investment success. It helps investors to take informed decisions by evaluating the willingness and ability to take risk and then matching it with investments that suit their risk profile.

It involves evaluating various factors such as financial goals, investment time horizon, investment knowledge, and risk tolerance. Risk tolerance is an investor’s emotional and psychological ability to handle fluctuations in the market. Understanding an investor’s financial goals is crucial as short-term/long-term objectives require different levels of risk exposure.

The time horizon is another key factor, a longer investment horizon allows for a greater tolerance for risk as there is more time to recover while shorter time horizons require a conservative approach to protect capital.

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

Personal Finance

• “I have a high surplus every month which I want to invest. I can’t think of any specific financial goals but I do want to grow my money” – For some individuals, the only objective of investing is to beat inflation and create wealth.  Read here

• Why investors should ask what is not going to change in the next 10 years – Predicting the future can be a fun thought experiment, but it’s often not knowable. In the world of investing, you are often better off inverting the problem. Thinking about what’s going to stay the same in the next 10 years may seem boring, but can lead to better investment opportunities. Read here.

• The biggest hedge fund in the world says ChatGPT was able to pass its investment associate test – and it’s like ‘having millions of them at once’Read here.

• NRI Knowledge Series – What are the different types of NRI accounts? – One of the frequently asked queries by NRI clients and friends. Watch here.

• PVR cuts snack prices after viral tweet triggers backlash, offers ‘bottomless popcorn’ – A viral tweet on the high price of snacks at PVR Noida resonated with a large section of movie-goers who slammed multiplexes for the pricing. Read here.

Investing

• Brand IPL , Dhoni and the paradigm shift in viewership – As per the recently published Houlihan Lokey report the league’s brand value reaching US$3 billion and its business enterprise value topping US$15 billion. Read here

• Size of capital managed does matter – If there is a high probability of underperforming against index funds, the fundamental purpose of an active fund, i.e creating alpha, is undermined. The size at which an actively managed fund is forced to invest in index stocks is probably a size that is TOO big. Read here

• Sustainable and Productive changes in India – Unifi Capital –  – Over the last many years, and especially post-Covid, India’s growth drivers have notably changed. While several factors have driven this transformation, we examine two vital areas of change: (A) India’s systemic need for low leverage [low debt/GDP] and (B) Gradual improvements in productivity. Read here.

• Prefer the investment side of the economy as compared to the consumption side – Breakout Capital – Kelkar is currently more exposed to the investment side of the economy rather than the consumption side. Frontline sectors such as cement, engineering, construction, financials and real estate are some of his key preferences. Watch here.

Economy

• Did the government just kill online gaming? – This time, the tax won’t be just on the Gross Gaming Revenue (GGR) or the commissions that Dream11 earns. The GST will be charged on the Contest Entry Amount (CEA). Or simply put, on the entire sum of money the customers deposit to play on the platform!!! Read here.

• India’s June inflation came in at the higher end of expectations – Strong inflation prints are aligned with the RBI policy committee’s cautious stance on inflation. Read here.

• As Foxconn-Vedanta deal snaps, a look at semiconductors & ‘design giant’ India’s 40-yr chip struggle – Taiwanese tech giant Foxconn has withdrawn from its $19.5 billion semiconductor joint venture with India’s Vedanta. While the Modi govt has said this won’t hurt India’s goals with respect to the cutting-edge chips, Foxconn has also reiterated its commitment to working with the country in the field. Watch 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.