CAGRfunds – Blog

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

Chart Ki Baat

Gyaan Ki Baat 

GDP Deflator

The GDP deflator is a price index, meaning it measures the average change in prices of goods and services produced in an economy over time. Unlike other price indexes like the Consumer Price Index (CPI), which focuses on consumer goods and services, the GDP deflator covers all goods and services produced within a country.

Nominal GDP measures the total value of goods and services produced at current market prices whereas Real GDP measures the total value of goods and services produced at constant prices, adjusted for inflation. It is measured as:

GDP Deflator = (Nominal GDP / Real GDP) * 100

Interpreting the GDP Deflator

GDP Deflator > 100: This indicates that prices have risen compared to the base year (inflation).

GDP Deflator < 100: This indicates that prices have fallen compared to the base year (deflation).

GDP Deflator = 100: This indicates that prices have remained unchanged compared to the base year.

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

Personal Finance

• Who is required to conduct an income tax audit and submit its report on e-filing ITR portal by September 30? Eligible taxpayers must upload their income tax audit report by September 30, 2024. Not everyone is required to file an audit report, but those who are must meet the deadline to avoid consequences. Go through the article to learn how to ensure your tax audit is on track! Read here

• Older than 70 years? How to apply for an Ayushman Bharat card: The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana now offers an extra Rs 5 lakh cover for senior citizens aged 70+, with flexible options for current plan holders. Explore how this expanded coverage can benefit you or your loved ones. Read here

• SEBI’s new rules from November 1: UPI now mandatory for bids up to ₹5 lakh in public debt issues: Starting November 1, individual investors applying for up to ₹5 lakh will be required to use UPI for fund blocking. This aligns with the existing process for equity shares and convertibles. The rules also shorten the subscription period for issuers and reduce the time for public comments. Read here

Investing

• S Naren shares his value investing mantra after turning Rs 10 lakh to Rs 5 crore in 20 years: Naren Sankaran, CIO of ICICI Prudential Mutual Fund, reveals the secrets to successful value investing in a volatile market. He shares his insights on navigating market downturns and capitalizing on undervalued opportunities. Discover why value investing remains a timeless strategy for long-term wealth creation. Watch here

• The stock market dipped after a historic Fed rate cut. Here’s what the experts think: The Fed cut rates by 50 basis points, but stocks fell due to concerns about the Fed’s longer-term outlook for interest rates. Some experts believe the Fed is behind the curve, while others argue that the economy is strong. Read here

• What’s the global market pricing in — geopolitical conflict or elections? In 2024, markets are swayed by AI, Nvidia, and interest rates, but political events, like elections in France and the UK, are creating more volatility than conflicts. Surprisingly, the Gulf’s markets remain stable. As deficits rise globally, investors must prepare for political risks—could this reshape your investment strategy? Read here

Economy & Sectors

• India Leads Global IPO Surge in 2024: Boom or Bubble? India’s IPO market is dominating 2024, with record-breaking oversubscriptions and global leadership—yet concerns about high valuations and regulatory scrutiny are rising. Want to know if this is the right time to invest or stay cautious? Click here for the full story! Read here

• India’s Toy Revolution: From Import Reliance to Global Export Powerhouse: India’s toy market, once dominated by imports, has now transformed into a net exporter. With traditional toys dating back over 500 years, Indian handmade toys are celebrated for their craftsmanship and cultural significance, along with a growing demand for eco-friendly and sustainable options. Curious to know how this transformation happened? Read here

• Housing Market Slowdown: Top 9 Cities Report 11% Decline In New Launches, Sales Down 18% in Q3: New housing launches and sales in India’s top nine cities saw a significant decline in Q3 2024, but demand remains robust. Dive into the detailed trends and understand what’s driving these shifts in the real estate market here! Read here

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.

• CFF (launched in June 2022) – Ranked among Top 5 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 25 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.

Source: RIMES, MSCI, Morgan Stanley Research as on 31^st August 2024

Gyaan Ki Baat 

We think this is the time when people have to focus on risks vs returns. It’s a challenge as the market goes up every month on a continuous basis, to tell people to focus on risk and not returns is a thankless job.

– S Naren

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

Personal Finance

• Take Something Away: Think about it – training wheels help kids balance, but eventually, they need to be removed. It’s time to stop adding and start subtracting. Your life (and your portfolio) might just thank you. From investing to personal well-being, this article argues that removing the unnecessary can lead to better outcomes. Read here

• How to convert mutual fund units from physical to demat: A complete guide: Gone are the days of paperwork and branch visits for mutual fund conversions! Thanks to recent advancements, you can now easily convert your physical mutual fund units to a demat account online. Read here

• Eight income tax notices a salaried individual can get before or after ITR processing. Know your options: The income tax department is always on the lookout for errors in ITR submissions. If they spot a mistake, you might receive a tax notice. This article will help you understand the common reasons for these notices can help you prepare and respond effectively. Read here

Investing

• Unleashing the Value Hunter: A Tale of Contrarian Investing: Inspired by Benjamin Graham, Mark Burry is emphasising on the importance of value investing. He seeks undervalued, unpopular companies and holds them for long periods. By analysing financial metrics and understanding a company’s true worth, we can identify hidden opportunities and outperform the market over time. Read here

• Modification in framework for valuation of investment portfolio of AIFs: SEBI has revamped valuation rules for AIFs introducing new standards for transparency and consistency. These changes aim to improve transparency and consistency in the AIF industry. Read here

• Analysis of Investor Behaviour in Initial Public Offerings: Ever wondered what makes investors jump on the IPO bandwagon? SEBI has cracked the code! Their latest study dives deep into the minds of investors, revealing the factors that influence their decisions when it comes to these high-stakes market debuts. From risk appetite to market trends, discover the secrets behind the IPO frenzy. Read here

Economy

• A cut — and then what? The Federal Reserve is about to embark on a rate-cutting journey, but the road ahead for stocks, bonds, and the dollar is paved with uncertainty. Will it be a smooth ride, or will the economy hit a pothole? Read here

• India 3rd favourite spot for global real estate investments: Foreign investors are flocking to India’s real estate market, particularly in the industrial and warehousing sectors. To know what factors had made India a top destination for global capital. Read here

• India’s August inflation remains within RBI’s sweet spot. Sparks hopes of a rate cut: India’s retail inflation inched up to 3.65% in August, primarily due to food prices, but has stayed within RBI’s target. Although this and a likely rate cut in the US has tempered rate cut expectations in India, the central bank is likely to maintain its current policy rate at least for now. Read here

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.

• CFF (launched in June 2022) – Ranked among Top 5 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 25 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.

Chart Ki Baat

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

Personal Finance

• Guaranteed Stability of UPS vs. Flexibility of NPS for Government Employees – The Unified Pension Scheme (UPS) offers government employees a guaranteed pension, dearness relief, and a lump-sum benefit. It’s a more secure option compared to NPS, but with potentially lower returns. Ready to make an informed decision about your retirement? Read here
  
  
• How Social Media Platforms Cash In on Pig Butchering Scams – Are you tired of the relentless onslaught of online scams? The “pig butchering” scam is a particularly insidious scheme that targets unsuspecting individuals, often with devastating financial consequences. Want to know how to protect yourself and your loved ones from these ruthless scammers? Read here
  
  
• How a Friend’s $81 Shaped a Future President – Ben Crider’s loan to Lyndon B. Johnson was an investment in human capital with a significant ROI. While the initial amount was small, Johnson’s subsequent success generated immense economic and social value. This story highlights the power of investments in people and the potential for long-term returns. Read here

Investing

• WazirX’s Cybertheft Recovery Plan – Zettai Pte., WazirX’s parent company, is seeking a white knight for capital after a $235 million hack. Only 55% of stolen funds are expected to be returned. The restructuring process will take at least six months. To know if WazirX can recover from this massive blow Read here
  
  
• Tapping Into Underrated Market Opportunities – While popular sectors may seem attractive, undervalued segments like value stocks and private banks can offer significant returns. By investing against the grain, you can potentially outperform the market. Want to discover how you can benefit from these underappreciated opportunities? Read here
  
  
• Why Credit Investments Outshine Equities in Today’s Economic Landscape – Despite the potential for rate cuts, the current market cycle favors credit over equities due to their strong balance sheets and lower risk-adjusted returns, while the risk of deflation from China’s overcapacity looms large over the global economy. Want to learn how to navigate the complex market landscape and find the most profitable investment opportunities? Watch here
  
  
• From Cyclical Truck Loans to Robust Growth and Market Potential – As a result of a strategic merger, Shriram Finance has transformed from a cyclical, low-growth business to a diversified, profitable, and rapidly growing financial services company. Despite its impressive fundamentals and strong growth prospects, the company’s stock remains undervalued. Read here
  
  
• Why Stellar Results Didn’t Prevent a Stock Drop – Despite strong earnings, Nvidia’s stock declined following its recent report. While the company’s fundamentals remain solid, market sentiment and expectations for future growth may be influencing the price. To understand the deeper implications of Nvidia’s earnings report. Read here
  
  
• Avoiding the Pitfalls of Blind Investing and Mastering Stock Picks Without Leading Followers to Slaughter – In the world of investing, just like in the slaughterhouse, there are those who lead others to their downfall. These “Judas goats” lure unsuspecting investors into risky ventures, often with disastrous consequences. To learn how to avoid becoming a victim of these financial predators. Read here
  
  
• How Stop Losses and Mental Toughness Shape Sustainable Investing – In the world of investing, survival is paramount. While it’s tempting to chase high returns, it’s crucial to prioritize risk management. Stop losses can help protect your portfolio from significant drawdowns and ensure you stay invested for the long term. To learn how to implement stop losses effectively. Read here

Economy

• Fallout of a Growing Youth Population – India’s burgeoning youth population, coupled with a mismatch between education and job opportunities, has created a significant unemployment crisis. This issue has far-reaching implications, impacting the economy, society, and politics. To learn more about the root causes and potential solutions to India’s unemployment problem. Read here
  
  
• Biosecure Act: How US Policy Could Propel India’s Pharma Industry Ahead of China – The Biosecure Act, if passed, could significantly benefit the Indian pharma sector by diverting business away from Chinese companies. This presents a huge opportunity for Indian firms to expand their market share and capitalize on increased demand from the US. If you’re curious about which Indian pharma companies are poised to benefit from the Biosecure Act. Watch here
  
  
• Governor Stresses Patience Amid Easing Inflation – RBI Governor, Shaktikanta Das, has expressed optimism about India’s economic growth potential, citing the country’s strong fundamentals and the easing of global inflation. However, he cautioned against premature interest rate cuts, emphasizing the need to remain vigilant about inflationary pressures. Learn more about India’s economic prospects and the RBI’s monetary policy stance. Read here

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Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.

• CFF (launched in June 2022) – Ranked among Top 5 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 25 across the 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.

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

Chart Ki Baat

Source: NSE India

Gyaan Ki Baat 

Why is the sugar industry booming post the lifting of the ethanol ban?

The recent lifting of the ban on ethanol production from sugarcane has proven to be a sweet deal for the sugar industry. This policy shift has not only revitalized the sector but has also had far-reaching implications for the economy.

Understanding the Sweet Synergy

Increased Demand for Sugarcane: The ethanol industry’s increased demand for sugarcane has provided a significant boost to sugar mills. This has led to higher sugarcane prices, benefiting farmers and the overall agricultural economy.

Diversification of Revenue Streams: By producing ethanol, sugar mills have diversified their revenue streams, reducing their dependence solely on sugar production. This has made them more resilient to fluctuations in the sugar market.

Contribution to Renewable Energy: Ethanol is a cleaner alternative to fossil fuels. Its production and use contribute to India’s renewable energy goals, reducing the country’s carbon footprint.

Rural Development:The growth of the sugar and ethanol industries has created employment opportunities in rural areas, leading to economic development and poverty alleviation.

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

Personal Finance

• Income Tax return refund delayed: Know likely reasons and solutions: You may submit your Income Tax return (ITR) on time but getting a refund may take time. The Income Tax has to do multiple checks before it approves a refund. Have a look at the reasons for delayed returns. Read here
  
  
• Retirement Planning: With UPS in the fray soon, is it the time for govt employees to exit NPS? Union Government is set to roll out the Unified Pension System (UPS) from April 1, 2025, to give fixed, inflation-linked pensions to subscribers. Want to know which option is right for you? This article talks about the key differences between NPS and UPS. Read here

• RuPay, Visa or MasterCard? From September 6, you’ll have the power to choose your credit card network: From today you will have the flexibility to select your preferred credit card network when applying for a new credit card and on renewal. Previously, your bank determined the network for your credit card, but now you can select the one that best fits your needs and spending habits. Why did RBI issue a guideline allowing users to choose a credit card network? Read here

Investing

• Berkshire Hathaway: There May Be Something Big Going On Behind Buffett’s Selling: Berkshire’s recent stock sales could signal a strategic shift, potentially paving the way for a significant acquisition like Chubb. Intrigued? Delve deeper into the intricacies of Berkshire’s strategic maneuvers and discover the potential implications for investors. Read here

• SEBI set to streamline foreign investment in Indian government bonds: To bolster foreign investment, SEBI is re-evaluating its registration requirements for overseas investors interested in Indian government bonds.Learn more on how this change could impact India’s economy and investment landscape.Read here

• The Most Successful Investments Are Really Obvious: Joel Greenblatt emphasizes the importance of clarity and simplicity in investment ideas. According to him, truly compelling investment opportunities should be easily understandable without extensive analysis. Want to learn how to spot winning investments? Read here

Economy

• Global Economic Outlook: DSP From China’s overproduction crisis to the resurgence of nuclear energy, the document offers valuable insights into a wide range of topics. Also explore the latest trends in retail trading, the challenges facing the banking sector, and the future of the agrochemical industry. This essential resource is a must-read for anyone looking to stay informed about the global economy. Read here

• India saw slower growth in Q1, but consumption, non-government investment, and manufacturing were reassuring: India’s GDP growth in Q1 FY 2024-25 slowed to 6.7%, but key areas like private consumption, manufacturing, and non-government investment show positive momentum. Despite a dip in India’s Q1 growth, private consumption and investments are bouncing back—could a stronger rebound be on the horizon? Read here

• India’s growth story remains intact, says RBI Governor at FIBAC 2024: RBI Governor Shaktikanta Das reaffirmed India’s robust growth trajectory at FIBAC 2024, emphasizing strong recovery post-COVID and continued momentum in key sectors. Find out how private consumption and investments are driving the economy towards a 7% boom! Read Here

***

Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.

• CFF (launched in June 2022) – Ranked among Top 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the 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.