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CAGR Insights – 07 Jun 2024

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

Index07-Jun-2431-May-24Change
Nifty 5023,29022,5313.37%
Nifty 50021,76421,1033.13%
Nifty Midcap 50 14,95214,4433.52%
Nifty Smallcap 10017,21616,6973.11%

Chart Ki Baat

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Source: uptrends

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

Personal Finance

  • Arthur B. Farquhar- Lessons in Leadership and Lifelong Learning: Arthur B. Farquhar sought advice from top businessmen in 1858 and later built a successful farm equipment company. Inspired by Andrew Carnegie, he learned the importance of lifelong learning and strong leadership, emphasizing business resilience and evolution. Read here
  • Optimism, Overconfidence, and the Pitfalls of Decision Making- Insights from Daniel Kahneman: Daniel Kahneman, a Nobel laureate and psychology professor, warns against excessive optimism, which can lead to failure due to risk-taking, and advocates for the use of algorithms and systematic evaluation to improve decision-making in the stock market. Read here
  • Financial Wisdom- The Importance of Budgeting and Planning: The author advises their son on personal finance, emphasizing the importance of budgeting and planning for future expenses. They also discuss how pain and unrequited love inspired composer Hector Berlioz’s Symphony Fantastique. Read here

Investing

  • Navigating ETF Trading Amidst Market Volatility: The Lok Sabha election results on June 4, 2024, triggered high volatility in the Indian stock market, impacting ETF trading significantly. Kshitiz Jain, Co-Founder- CAGRfunds, advises long-term investors to compare market prices with iNAV before trading ETFs, while traders can exploit price discrepancies for arbitrage opportunities. Read here
  • Pause Expected in Indian Bond Rally After Global Index Inclusion: Indian government bonds have risen due to JPMorgan Chase & Co.’s inclusion in the global debt index, with foreign investors valuing them due to faster economic growth and geopolitical concerns. Read here
  • Nvidia Stock Surges Ahead of Upcoming 10:1 Split: Nvidia’s stock rose 10.7% to $1,051 due to strong earnings but will drop to $105 per share after a 10:1 stock split. Stock splits make shares more accessible and signal company success. Reverse splits, like Canoo’s 1:23 split, usually indicate poor performance. Read here
  • Diamond Industry’s Struggle- Navigating the Rise of Lab-Grown Diamonds: The diamond industry faces a downturn as prices drop and consumers opt for lab-grown diamonds, which are cheaper and more sustainable. De Beers plans to refocus on mined diamonds, aiming to differentiate them from synthetic ones by emphasizing their exclusivity and value. Read here

Economy

  • RBI Plans Expansion of UPI to 20 Countries by FY29: The Reserve Bank of India and NPCI International Payments aim to expand the Unified Payments Interface to 20 countries by FY29, collaborating with the European Union and SAARC. Read here
  • India Bonds Poised for Growth: Key Factors and Future Outlook: India’s bond market is predicted to expand due to macro-economic stability, economic scale, bond index inclusion, US economic shifts, current account deficit improvement, fiscal deficit management, and strong forex reserves. Read here
  • Banks Struggle as Investors Seek Higher Returns: Indians are shifting from low-yield bank deposits to higher-return investments, affecting banks’ ability to attract deposits. Despite raising interest rates and improving digital infrastructure, banks struggle to compete with stock market returns, raising concerns about sustainable lending and profitability. 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 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the 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 – 31 May 2024

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

Index31-May-2424-May-24Change
Nifty 5022,53122,957-1.86%
Nifty 50021,10321,484-1.77%
Nifty Midcap 50 14,44314,663-1.50%
Nifty Smallcap 10016,69716,883-1.10%

Chart Ki Baat

Image

Source: RBI

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

Personal Finance

  • Letting Go of Sentimental Clutter- Embracing Minimalism and Present Joy: The passage discusses emotional attachment to physical objects, emphasizing the negative effects of hoarding and reluctance to let go. It advocates minimalism and enjoyment of assets in one’s lifetime. Read here
  • The Quiet Power of Thought- Rethinking Productivity in the Modern Workplace: John D. Rockefeller’s belief in internal contemplation over visible labor highlights the importance of quiet, reflective thinking in producing good work, especially during idle moments. Read here
  • Importance of Inheritance Planning in Personal Finance: In a NDTV Profit discussion, Alex Matthew and Stran Financial Services CEO Theal Sen emphasized the significance of inheritance planning, legal consequences, nominee vs. legal heir distinction, and executor role. Watch
  • Redefining Career Paths- Embrace Flexibility: Mistaking patterns for rigid rules in career paths, graduates often box themselves into specific trajectories based on initial job choices. Career paths need not be linear, and skills determine possibilities, not job titles. Read here

Investing

  • Untold Truths and Essential Insights- Navigating the Complexities of Insurance with Mahavir Chopra: Mahavir Chopra, an insurance expert, discussed insurance complexities, shifting from sales to claims, intermediaries’ role, misleading rules, and recommending knowledgeable advisors, smart contracts, and regular policy reviews. Watch
  • SEBI Order Reveals Varanium Cloud’s Misconduct: The SEBI order against Varanium Cloud Limited and its promoter, Harshawardhan Sabale, revealed serious misconduct, including misuse of IPO funds, false financial reporting, and share price manipulation. Read here
  • IRDAI’s New Health Insurance Guidelines: IRDAI has released a master circular on health insurance, aiming to enhance policyholder empowerment, improve service standards, and ensure compliance with Ombudsman awards. Read here

Economy

  • RBI’s Record Dividend- A Boost for Government Finances Amid Economic Challenges: The Reserve Bank of India’s 2.1 trillion rupees dividend to the Indian government is under scrutiny due to potential one-time gains and potential sustainability concerns, potentially supporting fiscal financing and social welfare. Watch
  • How South Korea Became the World Leader in Internet Connectivity Through Visionary Leadership: South Korea achieved 93% internet access by 2022, thanks to visits by SoftBank founder Masayoshi Son and Bill Gates, earning it the title of ‘bandwidth capital of the world’. Read here
  • RBI Brings Gold Home- A Historic Move: The Reserve Bank of India has transferred over 100 tonnes of gold from the UK to its vaults in India, marking its first significant addition since 1991, with another transfer anticipated. 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 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the 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 – 24 May 2024

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

Index24-May-2417-May-24Change
Nifty 5022,95122,4652.16%
Nifty 50021,47521,0611.97%
Nifty Midcap 50 14,64614,5100.93%
Nifty Smallcap 10016,88016,8590.12%
Chart Ki Baat

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Source: IMF, Bloomberg

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

Personal Finance

·         The Enduring Lessons of Arthur B. Farquhar and Andrew Carnegie: Building a Lasting Business: Arthur B. Farquhar, at 19, learned to make a million dollars by capitalizing on a factory fire. He built a successful farm equipment company, founded a hospital, and owned a newspaper. He learned the importance of trusting capable people and enduring businesses. Read here
 
·         Transformative Shift: From Portfolio Management to Mutual Fund Strategy: The investment firm adopts a mutual fund model, focusing on undervalued stocks, fundamental analysis, regulatory oversight, shareholder activism, and proposing an index for Indian shareholders and active managers. Watch

Investing

·         Impact of Interest Rate Changes on Investment Performance: A Historical Analysis: From 1975 to 2023, interest rate changes significantly impact MSCI World Index factor and sector index performance, with defensive factors and low-beta sectors performing well with falling rates. Read here
 
·         Investment Opportunities in Indian Markets: A Comprehensive Overview: India’s growing economy and attractive investment landscape have attracted significant long-term foreign and domestic investments, particularly from the US. Despite volatility and sensitivity to factors like crude prices and the US dollar, India remains a key player in global emerging markets, with diverse sectors and substantial foreign investor interest. Monitoring macroeconomic factors and evolving equities valuations is crucial for continued growth and investment opportunities. Watch
 
·         Gold Surges to Historic High Amid Global Uncertainty: Gold has hit a historic high despite a strong US economy, driven by global uncertainties and increased demand from central banks and retail investors, particularly in China. Trends like Costco selling gold bars highlight a shift towards tangible assets. Analysts remain bullish on gold’s value due to ongoing geopolitical and economic concerns. Watch
 
·         Navigating Future Investments with UTI’s Score Alpha Insights: UTI’s analysis of the Nifty 500 Index shows R3 companies outperform R1 and R2 portfolios, with R3 companies improving and moving to higher RoCE tiers by 2023. Read here

Economy

·         Start-Ups Dominate Booming Quick Commerce Market, Giants Struggle to Keep Up: The quick-commerce market is rapidly expanding, with start-ups like Blinkit, Swiggy’s Instamart, and Zepto dominating 88%, while giants like Amazon and Walmart struggle. The market is expected to grow significantly due to urban demand. Read here
 
·         The Rising Costs of Indian Elections and Their Economic Impact: The cost of running in India’s Lok Sabha elections has skyrocketed, with candidates spending an average of Rs. 50 lakhs in 2019, and total spending for the 2024 election expected to reach Rs. 1,35,000 crore. This surge in spending, largely driven by campaign costs and social media strategies, means that Parliament is increasingly accessible only to the wealthy, raising concerns about underrepresentation of the less affluent. Read here
 
·         RBI Pays Record Rs. 2.1 Lakh Crore Dividend to Government: The RBI delivered a record dividend of Rs. 2.1 Lakh crore to the central government, primarily driven by gains from foreign currency holdings, currency selling, and gold revaluation. This substantial dividend, exceeding expectations, could reduce the fiscal deficit or increase government spending, positively impacting the bond and stock markets. Read here
 
·         Debating the Future of the Chinese Yuan: Implications for Global Investors: PauloMacro’s Substack discusses the potential devaluation of the Chinese yuan, with Louis-Vincent Gave arguing it would benefit the U.S. and set back China, despite political and economic ramifications for Xi Jinping’s administration. 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 20 smallcase with medium volatility.
• CVM (launched in May 2022) – Ranked among Top 40 across the 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.    
Posted on

CAGR Insights – 17 May 2024

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

Index17-May-2410-May-24Change
Nifty 5022,46522,0551.86%
Nifty 50021,06120,4752.86%
Nifty Midcap 50 14,51013,9194.25%
Nifty Smallcap 10016,85916,1114.65%

Chart Ki Baat
Image

Source – : RVM,MSCI, Returns 2.0

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

Personal Finance

  • Jim Simons, Pioneering Quant Trader and Philanthropist, Passes Away: Jim Simons, a pioneering mathematician, and founder of the successful quantitative hedge fund Renaissance Technologies was renowned for his Medallion Fund’s exceptional annual returns and his groundbreaking use of mathematical models in trading, Simons also made significant contributions to math and science through his foundation. Read here
  • The Power of Small Details: Transformative leaders in low-margin industries excel by focusing on small details. Led by John Swallow, Idaho Strategic Resources thrives by combining gold and rare earth element production, strategic asset acquisition, and mining-friendly locations, like Costco’s operational excellence. This approach results in long-term success and premium valuations. Read here
  • Teaching Life’s Rules through Field Day: Lessons in Winning and Losing: Field Day at school offers more than just games; it’s a lesson in life. As a parent, the focus is on teaching children the Rules of the Game: the pursuit matters more than the outcome, losing doesn’t define them, celebrating others’ wins is important, and surrounding themselves with supportive friends fosters growth and success. Read here
  • Managing Expectations: The Pitfalls of Short-Term Guidance: Investors often overlook the potential for businesses to face unforeseen challenges, leading to disappointment when expectations aren’t met. Small businesses, especially, face numerous hurdles that shareholders rarely see. Providing short-term guidance can be counterproductive, often leading to unnecessary pressure on management and disappointment for investors. Read here

Investing

  • Embracing Fintech Integration: The Rise of One-Stop Financial Solutions: The financial services industry is experiencing a shift towards fintech startups, which are attempting to bundle various activities into one. This approach is gaining popularity as customers increasingly seek convenience and trust in banks. However, the existing financial services industry is not conducive to fintech players offering a one-stop-shop solution. Watch
  • Navigating Starbucks’ Digital Dilemma: Starbucks faces a dilemma between efficiency and maintaining its brand value. Future strategies may involve enhancing the in-store experience, improving the mobile ordering process, or fully embracing a transactional model, but the path forward remains uncertain. Read here
  • Insights from Berkshire Hathaway’s Annual Meeting: Warren Buffett, alongside Greg Abel and Ajit Jain, emphasized the simplicity of investing, viewing stocks as businesses, and focusing on long-term performance. Buffett stressed the importance of understanding the businesses behind stocks, managing risk, and avoiding common investing mistakes. Read here
  • SEBI Removes PAN-Aadhaar Link Requirement for Mutual Fund KYC: SEBI has removed the requirement of linking PAN with Aadhaar for mutual fund investors to obtain “KYC-registered” status. Under the revised rules, investors can now complete KYC using Aadhaar alone, without requiring the PAN-Aadhaar link. However, for “KYC-Validated” status, linking PAN and Aadhaar is still necessary. Read here

Economy

  • India Upgraded to ‘Overweight’ by Citigroup, China Downgraded: Citigroup upgraded India to “overweight” from “neutral” in their emerging markets allocation, expecting the NSE Nifty 50 index to rise 7% by March 2025. The upgrade is based on India’s strong earnings and economic growth momentum, while Citi downgraded China to “neutral” due to weakening fundamentals despite recent market rallies. Read here
  • Importance of International Diversification in a Dominant U.S. Market: Despite the U.S. stock market’s recent dominance, historical trends suggest that international diversification remains a crucial strategy. While the U.S. has outperformed in the past decade, there’s no guarantee it will continue to do so. Diversification helps manage risk by avoiding extreme outcomes, and considering the unpredictable nature of markets, it’s wise to spread investments across different regions. Read here

  • India’s SEBI Proposes Multi-Regulator Approach to Cryptocurrency Oversight: India’s market watchdog, SEBI, suggests multiple regulators oversee cryptocurrency activities, contrasting with the RBI’s preference for a ban on stablecoins due to macroeconomic risks. SEBI recommends regulating crypto securities and ICOs, while RBI could oversee fiat-backed crypto assets. 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.     Open the newsletter in the browser here