CAGRfunds – Blog

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

Index	10-May-24	03-May-24	Change
Nifty 50	22,055	22,457	-1.79%
Nifty 500	20,475	20,948	-2.26%
Nifty Midcap 50	13,919	14,190	-1.91%
Nifty Smallcap 100	16,111	16,934	-4.86%

Chart Ki Baat

Source: United Nation

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

Personal Finance

• Creating Luck: Beyond Binary Views and Towards Active Habits and Strategy – The author discusses different models of luck, moving beyond the binary view to introduce the concepts of “Luck Surface Area” and the “Four Kinds of Luck,” ultimately proposing their own model focusing on active habits and good strategy to actively create luck. Read here
  
  
• The Importance of Inaction in Investing: Overcoming Natural Biases for Long-Term Success – Investing success often lies in what we don’t do rather than what we do. Despite our natural inclinations to react to market movements and headlines, long-term patience and inaction are crucial for success. Read here
  
  
• Charlie Munger: A Century of Wisdom and Partnership – Charlie Munger, born in 1924, has witnessed and been a part of a century of history. He and Warren Buffett built Berkshire Hathaway into the successful conglomerate it is today. Munger’s wisdom, irreverence, and partnership with Buffett have been instrumental in Berkshire’s success. Watch

Investing

• The Reality of Stock Holding: Understanding Shelf Life in Investing – The idea of holding stocks forever, as Warren Buffett once suggested, is often misinterpreted. While some stocks may indeed be held for the long term, the reality is that every stock has a different shelf life. Read here
  
  
• IAIP Session: Unveiling Quantitative Investment Strategies in India – The IAIP, recently explored various quantitative investment strategies such as Equity Long-Short, Managed Futures, Statistical Arbitrage, and Option Strategies. The session covered case studies, challenges faced by investors, and emphasized the roles, skills, and timing relevance in the market, including managed futures returns in India. Watch
  
  
• India’s Fixed Capital Formation: A Government-Driven Revival Amidst Declining Private Investment – India’s gross fixed capital formation has increased to 32.4% of GDP, the highest level since 2009, driven largely by government expenditure. However, private investment, crucial for sustained growth, has been declining since 2007-08, dropping to 19.6% of GDP in FY21. Read here

Economy

• Global Energy Transition: Opportunities and Investments – The energy transition offers significant opportunities for developers and equipment manufacturers globally. India, the US, and the EU are all experiencing surges in power demand, driven by factors such as data centre and AI growth, with the EU expected to invest nearly. Read here
  
  
• RBI Announces INR 40,000 Crore Bond Buyback to Ease Liquidity – The RBI announced a buyback of INR 40,000 crore worth of government bonds, focusing on short-duration papers to alleviate tight liquidity conditions. This move aims to ease short-term liquidity pressures while not affecting gross or net government borrowings, leading to a positive reaction in the bond market with lower yields and benefiting short-duration mutual funds. Read here
  
  
• Massive Online Scam: 800,000 Victims via 76,000 Fake Websites – A network of 76,000 fake websites originating from China has scammed over 800,000 people globally, primarily in the US and Europe, by luring them with discounted luxury goods and extracting sensitive personal and financial information. 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.

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

Index	03-May-24	26-Apr-24	Change
Nifty 50	22,457	22,453	0.02%
Nifty 500	20,948	20,859	0.43%
Nifty Midcap 50	14,190	14,083	0.76%
Nifty Smallcap 100	16,934	16,979	-0.26%

Chart Ki Baat

Source: Lafond and IRENA Database.

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

Personal Finance

• Understanding the Psychology of “Bad” Financial Decisions: Insights from American Lotteries and Economic Realities – Delves into the psychology behind “bad” financial decisions, highlighting the complex motivations and circumstances that drive individuals, especially those in lower-income brackets, to engage in seemingly irrational behaviors like playing the lottery or investing in high-risk ventures. Read here
  
  
• Navigating Risk: Lessons from Golf and Investing – Contrasts the success of golfers Rahm and Scheffler, highlighting their different risk-taking approaches, and draws parallels to investor behavior, advocating for disciplined adherence to investment strategies amidst market volatility. Read here
  
  
• Shruti Agrawal’s journey as a CFA Charter Holder – Check out this video by CFA Institute: The Journey of Women in Finance featuring Shruti Agrawal, sharing her insights on a successful career in finance. Read here
  
  
• The High Cost of Tax Avoidance: A Billionaire’s Tax Dilemma – how ultra-rich individuals meticulously strategize to minimize taxes, highlighting the lengths they go to in avoiding NYC’s tax status threshold, questioning whether such actions truly reflect wealth or rather signify being controlled by money. Read here

Investing

• The Rise of Crypto Zombies: Billion-Dollar Blockchains with Few Users – proliferation of zombie blockchains, including Ripple’s XRP, Bitcoin Cash, Litecoin, and Ethereum Classic, which continue to trade at high valuations despite limited utility and user adoption, presenting challenges for investors and regulators alike. Read here
  
  
• Debt and Enduring Resilience: A Perspective on Financial Stability – The enduring success of ultra-durable businesses called “shinise” and highlights how their aversion to debt enables them to withstand centuries of calamities, offering a perspective on debt as a constraint on life’s volatility and the importance of maintaining options and flexibility. Read here
  
  
• Stoic Wisdom: Navigating Market Volatility and Investing with Serenity – Explores the tendency for investors to panic over geopolitical events, emphasizing the importance of maintaining a stoic mindset, avoiding macro tourism, and sticking to diversified, long-term investment strategies amidst market volatility. Read here
  
  
• Unlocking India’s Investment Potential: Shifting Paradigms for Economic Empowerment – How India’s traditional asset allocation has led to significant wealth loss, emphasizing the need for a shift towards equity and diversification to unleash greater growth and economic prosperity. Read here

Economy

• Navigating Valuation Multiples: Understanding Differences and Linking to Fundamentals –Counterpoint Global Insights explores the limitations of valuation multiples and their divergence due to shifts in investment trends and capital structures, highlighting the challenges in accurately reflecting company fundamentals. Read here
  
  
• India’s Thriving AI Ecosystem: Driving Innovation on the Global Stage – India’s AI sector is booming, marked by significant contributions to global AI research and GitHub projects, though challenges in data quality persist, with government initiatives and investments driving innovation and development. Read here
  
  
• SEBI’s Face Value Reduction Boosts Retail Participation in Bond Market – SEBI’s decision to reduce the face value of privately listed NCDs to Rs. 10,000 from Rs. 100,000 is hailed as a game-changer, opening doors for increased retail participation in the Indian debt market. Read here

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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.

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

Index	26-Apr-24	19-Apr-24	Change
Nifty 50	22,453	22,150	1.37%
Nifty 500	20,859	20,386	2.32%
Nifty Midcap 50	14,083	13,593	3.60%
Nifty Smallcap 100	16,979	16,263	4.40%

Chart Ki Baat

Gyaan Ki Baat

The Credit Deposit (CD) ratio serves as a vital metric for assessing a bank’s lending behavior in relation to its deposit base. While the Reserve Bank of India hasn’t set a specific target, the commonly acknowledged comfortable range hovers between 70-80%. This range offers flexibility for banks to balance their lending activities with liquidity management. Exceeding this range could indicate aggressive lending practices, potentially risking liquidity strain or asset quality deterioration. Conversely, falling below the range might suggest underutilization of deposits, impacting profitability. Despite its advisory nature, monitoring CD ratios is crucial for regulators and banks alike to ensure financial stability and responsible lending practices.

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

Personal Finance

• Finance Professionals Embrace Strength Training for Physical and Mental Health – Explores how finance professionals are increasingly embracing strength training for its physical and mental health benefits, amid a culture shift towards prioritizing personal wellbeing in the industry. Read here.
  
  
• IRDAI Eases Health Insurance Rules: No Maximum Age Limit, Reduced Waiting Periods – IRDAI’s recent revisions to health insurance regulations in India include eliminating the maximum age limit for purchasing a policy and reducing waiting periods for ailments and pre-existing conditions, providing policyholders with improved coverage and claim settlement terms. Read here.
  
  
• Learning from Mistakes – Investing success relies on distinguishing between good decisions and good luck amidst uncertainty, emphasizing the importance of process over outcomes. Read here.

Investing

• Tax Benefits for Second Home Loans – The article explains that income tax benefits for interest and principal repayment on home loans for self-occupied properties, including second homes, are available only under the old tax regime, not the new one. Read here.
  
  
• Decades Over Years – The article advocates for a long-term investment strategy, emphasizing the importance of consistently investing over decades despite short-term market fluctuations. Read here.
  
  
• Bitcoin Halving Spurs Market Dynamics – Bitcoin’s upcoming halving event, historically followed by strong 1-year returns, is expected to impact mining dynamics, while ETF inflows and potential approval in Hong Kong signal broader cryptocurrency market sentiment. Read here.
  
  
• Leadership in Unglamorous Industries – In overlooked industries like mining, transformative leaders excel by mastering the art of sweating the small stuff, ultimately creating substantial value through meticulous attention to detail and exceptional execution. Read here.
  
  
• A Precious Metal Poised for a Bull Market – Mounting geopolitical risks and economic uncertainty contribute to the surge in gold and silver prices, with factors including Chinese investment trends, political tensions in over 60 countries, and movements like the #SilverSqueeze driving precious metals to all-time highs. Read here.
  
  
• Recognizing Shelf Life – The reality of stock investing involves recognizing that while the intention may be to hold forever, the shelf life of most winning stocks, especially microcaps, typically ranges from 1 to 5 years, with exceptions being rare. Read here.

Economy                                                                                                              

• The Evolution of the Hotel Industry: A Shift towards Franchising and Branding Strategies – The hotel industry has witnessed a significant shift towards franchising, minimizing real estate risks for major brands like Marriott, Hilton, and Hyatt, while loyalty programs and dynamic pricing enhance customer engagement. Watch here.
  
  
• Rise of New Indian Elites – the emergence of a new elite in India, consisting of individuals from smaller cities, non-elite educational backgrounds, and historically disadvantaged castes, who are gaining access to economic opportunities through improved infrastructure and digital connectivity. Read here.
  
  
• Finance Minister Nirmala Sitharaman on India’s Economic Outlook – The article features an exclusive interview with Finance Minister Nirmala Sitharaman discussing India’s economic challenges and strategies for growth amidst global uncertainties. Read here.
  
  
• India’s 5G Revolution – India’s swift 5G adoption and rapid expansion, fueled by Reliance Jio and Bharti Airtel, showcase the nation’s commitment to innovation and progress in the global 5G revolution. Read here.

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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.

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

Index	19-Apr-24	12-Apr-24	Change
Nifty 50	22,150	22,516	-1.63%
Nifty 500	20,386	20,751	-1.76%
Nifty Midcap 50	13,593	14,052	-3.27%
Nifty Smallcap 100	16,263	16,509	-1.49%

Chart Ki Baat

Chart courtesy – Goldman Sachs

Gyaan Ki Baat

Gross Domestic Product (GDP) per capita is a widely used measure of a country’s economic performance. It represents the average income generated per person in a nation within a specific time frame, typically a year. Calculated by dividing the total GDP of a country by its population, GDP per capita provides insights into the standard of living and economic well-being of individuals within a country. Higher GDP per capita generally indicates greater economic prosperity, access to goods and services, and overall quality of life. It serves as a key indicator for policymakers, economists, and analysts assessing a country’s economic development and growth trajectory.

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

Personal Finance

• Household Financial Concerns and Savings Decline in India – Household debt in India has surged to 40% of GDP. Financial stability reports highlight declining savings and increasing liabilities, signaling long-term economic challenges. Read here
  
  
• India’s Growth Story: A Conversation with Mr. Sunil Singhania, CFA – The CFA Society India podcast features an insightful discussion on India’s growth story and parallels with China, emphasizing the nation’s potential as a global investment destination and the role of government policies and reforms in driving economic development and manufacturing growth. Watch

Investing

• The Indispensability of Risk: Lessons from Chess, Investing, and Life – The memo draws parallels between risk-taking in investing and strategic decision-making in chess, emphasizing the indispensability of risk for potential rewards, but also cautioning against excessive risk without careful consideration. Read here
  
  
• Affordable Housing at All-Time Low as Luxury Home Sales Surge – The article highlights a concerning trend in the Indian real estate market, where the share of affordable housing has hit an all-time low in Q1 2024, while luxury home sales are on the rise, particularly in the Delhi-NCR region particularly in the Delhi-NCR region. Read here
  
  
• GIFT City: Transforming India’s Financial Landscape – The Gujarat International Finance Tec-City (GIFT City) IFSC is emerging as a successful hub for offshore financial transactions, bolstering India’s vision of becoming a global financial and technology hub, with unified regulation and a focus on asset management, offering advantages like cost-effectiveness and a simplified registration process for funds and fund managers. Read here
  
  
• Monetary Policy Review: RBI’s Stance and Market Perspectives – The Monetary Policy Review for April 2024 by the RBI highlighted global risks but emphasized India’s strong macroeconomic fundamentals, reassuring investors and focusing on liquidity provision and financial stability, while cautioning about reinvestment risk in fixed income markets. Read here

Economy                                                                                                              

• Oil Prices Fluctuate as Iranian Media Downplays Israeli Strikes – Oil prices initially surged above $90 a barrel on concerns over potential conflict in the Middle East following Israeli strikes, but pared gains as Iranian media downplayed the impact, with traders wary of supply risks amid escalating tensions. Read here
  
  
• Morgan Stanley: No Rate Cuts Expected in India Amid Strong Growth Trends – Morgan Stanley predicts no rate cuts in India due to strong domestic growth trends and a change in the U.S. Fed rate path, expecting the key policy rate to remain steady at 6.5%.Read here
  
  
• Fed Rate Hikes: Spurring US Economic Boom? – Some on Wall Street are suggesting that recent interest rate hikes in the US might actually be boosting the economy by providing Americans with increased income from bond investments and savings, contrary to traditional economic beliefs. Read here
  
  
• Exploring the Semiconductor Industry – Insights into the global semiconductor industry, its value chain, market share, and India’s emerging role in semiconductor manufacturing. Read here
  
  
• India Implements Measures to Meet Rising Electricity Demand – India mandates operation of underutilized gas-based power plants and extends operations of imported coal-based plants to meet rising electricity demand during the hot summer months. Read here

****

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.