CAGRfunds – Blog

Chart Ki Baat

Source: CapitalMind

Gyaan Ki Baat 

Mansa Musa, the 14th-century emperor of Mali, had a net worth of $400–700 billion today, making him far wealthier than today’s richest individuals. He expanded his empire through strategic trade, not battles. During his 1324 pilgrimage to Mecca, he traveled with 60,000 people, distributing so much gold that he caused hyperinflation in Egypt. Musa transformed Timbuktu into a cultural hub by building schools and the University of Sankore. His legacy emphasizes that true wealth lies in investing in people and creating lasting impact.

Mansa Musa’s story transcends time and geography, offering the following valuable insights that resonate even in today’s world:

1. Wealth with Purpose: True wealth isn’t just about accumulation; it’s about making a positive impact. Mansa Musa demonstrated that investing in people and infrastructure can create lasting change and prosperity.
2. The Power of Generosity: Musa’s generosity changed economies and lives. This reminds us that giving back can have ripple effects, influencing communities far beyond our immediate surroundings.
3. Prioritizing Knowledge: The emphasis on education and learning paved the way for innovation and cultural exchange. In today’s fast-paced world, fostering a culture of knowledge can drive progress and creativity.
4. Strategic Leadership: Musa expanded his empire not through war, but through diplomacy and trade. His leadership style teaches us the importance of collaboration and smart decision-making in achieving our goals.
5. Cultural Richness: Embracing diversity and facilitating cultural exchange enriches societies. Mansa Musa’s reign illustrates that the blending of ideas and traditions can lead to a vibrant and thriving community.
6. Historical Awareness: Understanding the past allows us to recognize shifts in power and prosperity. History is not static; it reminds us that today’s leaders can emerge from anywhere, and that we must remain open to new perspectives.

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

Personal Finance

• A Message From the Past (Thoughts on Nostalgia): Morgan Housel discusses the phenomenon of economic nostalgia, where people often romanticize the past and forget the challenges and uncertainties they faced at the time. He suggests that understanding this phenomenon is crucial for investors and individuals alike, as it can help them manage expectations and navigate the present challenges. Read here

• Sebi’s New Move: A Game-Changer for Debt Investors: Sebi has introduced a new liquidity window for debt securities, allowing investors to sell them back to issuers before maturity. This aims to address the illiquidity of the corporate bond market and encourage greater retail investor participation. Will this liquidity window unlock the potential of India’s debt market? Read here

• New ITR E-Filing Portal 3.0 to Launch Soon: IT Dept Invites Suggestions: The Income Tax Department is introducing a new e-filing portal (Project IEC 3.0) to streamline the tax filing process. The revamped platform promises faster ITR processing, improved user experience, and enhanced security. The department is seeking public feedback to ensure the portal meets taxpayer needs.Read here

Investing

• Investing during geopolitical unrest & market sensitivities: Geopolitical tensions, China’s stimulus, and domestic concerns are rattling financial markets. Rising oil prices, capital outflows, and F&O losses are adding to the volatility. Despite these challenges, investors can navigate this turbulent landscape with a dynamic strategy and protect their portfolios. Are you ready to take control of your investments? Read here

• These 2 factors to act as ’suit of armour’ against emerging risks in Indian market, says Motilal Oswal Private Wealth: Motilal Oswal Private Wealth (MOPW) addresses rising market volatility, advising a cautious, staggered investment approach. They emphasize resilience, highlight opportunities in specific sectors, and offer insights on navigating current economic challenges while balancing growth prospects with potential risks.Read here

• Four investment mistakes you really don’t want to repeat: In this insightful column, the author explores key investment blunders—from clinging to bad bets to mistiming the market—using personal and historical examples. Learn how cognitive biases can derail financial decisions and discover valuable lessons to avoid costly investment mistakes. Read here  

Economy & Sectors

• “Entrepreneurs Face Unprecedented Opportunities, But Must Focus and Navigate Wisely”, Says Infosys Co-Founder Nandan Nilekani: Nandan Nilekani, Infosys co-founder, believes there are more entrepreneurial opportunities today than ever. He encourages young people to focus on key areas and highlights energy transition, especially small-scale solutions, as promising but cautions that it requires market knowledge and expertise. Watch here

• India’s Green Hydrogen journey chugging along! India is emerging as a leader in Green Hydrogen, with trials for the country’s first hydrogen-powered train expected by December. This eco-friendly fuel source has the potential to revolutionize industries, reduce emissions, and boost energy security. Green Hydrogen is transforming India’s energy landscape from steel plants to maritime shipping.Read here

• Pvt equity investment in real estate down 4% to $2.3 bn in Apr-Sep: Anarock Private equity in Indian real estate drops 4%, but a game-changing $1.5 billion Reliance-ADIA/KKR deal reshapes the landscape—find out how global trends are impacting the market! 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 1^st amongst smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 20 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.

Chart Ki Baat

Gyaan Ki Baat 

The Power of Perception

In 2008, Saeed Khouri, an Abu Dhabi businessman, made headlines worldwide for his extravagant purchase: a license plate for $14.5 million. The plate’s unique feature was a single digit, “1,” which was valued at $7.2 million on its own. While many considered him foolish, Khouri saw an opportunity that others had overlooked. We often overlook the potential value of things based on their intrinsic worth, but it’s the perception of value that truly drives the market.

Here are some key takeaways:

Investment Opportunities:

• Appreciation: License plates have shown significant appreciation in value over time, making them attractive investments.
• Liquidity: These plates can be easily bought, sold, or transferred, providing liquidity and flexibility.
• Tax advantages: In the UAE, there is no capital gains tax, making profits from plate sales even more attractive.

Factors Driving the Market:

• Auctions: Elaborate auctions held by the Roads and Transport Authority (RTA) create excitement and drive-up prices.
• Government backing: The UAE government’s regulation and support legitimize the market and increase buyer confidence.
• Emotional value: Owners often develop strong emotional attachments to their unique plates, which can further drive prices.

Conclusion:

Saeed Khouri’s investment in a single-digit license plate may have seemed irrational at the time, but it has proven to be a shrewd move. This move demonstrates the power of perception, scarcity, and cultural context in driving value. By understanding these factors, investors can identify and capitalize on unique investment opportunities.

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

Personal Finance

• DA Hike Of 3% Expected In Next Cabinet Meeting, Says Employee Union: Central government employees are expecting a dearness allowance (DA) hike of at least 3% in the next Cabinet meeting. This will help offset inflation and provide a boost to their salaries. The hike is expected to be announced just before Diwali. Read here

• World Financial Planning Day: Money mistakes that can derail your financial future: Tired of living pay check to pay check? Avoid common financial mistakes and take control of your money. Start building a brighter future today! Read here

• RBI flags NBFCs’ ‘growth at any cost’ approach: Retail borrowers would do well to heed the message: Don’t get carried away by festive season discounts! The RBI warns of risky lending practices by NBFCs. Plan your budget, avoid unnecessary debt, and focus on responsible spending. Read here

Investing

• India, South Korea Join Major FTSE Russell Index After Bond Market Reforms: India and South Korea have joined the FTSE Russell Bond Index. This means billions of dollars will flow into their economies. South Korea worked hard to impress investors, while India’s efforts were more low-key. To learn why the inclusion of these countries is a big deal for global finance.Read here

• The timeless wisdom of investing: Focus on asset allocation, risk profile and time horizon: Tired of chasing market trends? Focus on the fundamentals: asset allocation, risk profile, and time horizon. Discover the proven strategy that experts use to build wealth consistently. Read here

• Why the surge in Chinese equities is not convincing? Global investors are skeptical of China’s stock rally. They doubt Beijing’s commitment to stimulus and believe some stocks are overvalued. They’re waiting for more concrete action before investing. To know why they are so sceptical about the Chinese Market Read here

Economy & Sectors

• Amid Ongoing Festive Season, RBI Leaves Repo Rate Unchanged At 6.5%: The Reserve Bank of India (RBI) has maintained the status quo on interest rates for the tenth consecutive time, leaving the policy repo rate unchanged at 6.5%. This decision has left borrowers wondering if they will ever see a reduction in their loan costs. Read here

• Car Inventory Surges To All-Time High As Retail Sales Slump Nearly 20%: Indian car dealerships are bursting at the seams with unsold vehicles, while retail sales have taken a nosedive. With the crucial festive season looming, the pressure is mounting on carmakers and dealers to avoid a stockpiling disaster. The question remains: Can they weather this perfect storm of excess supply and dwindling demand? Read here

• Ken Andrade Sees India as a Teflon-Coated Economic Powerhouse: Renowned investor Ken Andrade paints a positive picture of India’s economy. He highlights the country’s strong financial foundation, robust manufacturing growth, and potential for global leadership in aviation and services. While challenges remain, Andrade’s analysis suggests a promising future for India. 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 1^st amongst smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 20 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.

Chart Ki Baat

Source: Kearney and LUXASIA Analysis

Gyaan Ki Baat 

SSGR stands for Self-Sustainable Growth Rate. It’s a financial metric that measures the maximum rate at which a company can grow without resorting to external financing (like issuing new debt or equity). In essence, it’s a measure of a company’s internal growth potential.

SSGR = (Net Profit Margin * Net Fixed Asset Turnover * (1 – Dividend Payout Ratio) – Depreciation Rate) * 100

Where:

• Net Profit Margin: Measures the profitability of a company’s operations.
• Net Fixed Asset Turnover: Indicates how efficiently a company uses its fixed assets to generate revenue.
• Dividend Payout Ratio: The percentage of net profits paid out as dividends.
• Depreciation Rate: The rate at which a company’s fixed assets are depreciated.

Why is SSGR Important?

• Financial Health: A high SSGR indicates a company’s ability to grow organically, which is often seen as a sign of financial health.
• Investment Decision: Investors often use SSGR to assess a company’s growth potential and its reliance on external financing.
• Risk Assessment: A company with a high SSGR may be less risky as it’s less dependent on external factors for growth.

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

Personal Finance

• New NPS investment option: Opportunity to earn higher returns from equity for these investors: The National Pension System (NPS) just got more exciting! The PFRDA has added a new ‘Balanced Life Cycle Fund’ to the NPS, offering private sector subscribers a new investment option tailored to their retirement needs. Read here
  
  
• Here’s why term insurance is a must-have in every family’s financial plan: Don’t let life’s uncertainties catch you off guard. Term insurance is a vital safety net that ensures your family’s financial future remains secure, even in the face of the unexpected. To learn more about term insurance and find the best plan for your needs. Read here
  

• Avoiding Financial Fraud And QR Code Scams This Festive Season: The festive season is here, but so are the scammers! Be aware of the growing threat of QR code scams, phishing, and online pay ment frauds. Protect your hard-earned money and enjoy a safe and hassle-free shopping experience. This article dives into how to stay safe online. Read here

Investing

• FPIs pump Rs 86,000 crore in Indian equities in Q2, highest since December 2020: Despite global economic uncertainties, foreign investors continue to flock to India’s stock market. In the September quarter, they pumped over ₹86,000 crore into Indian stocks, the highest in 15 quarters. This surge is a testament to India’s growing appeal as a prime investment destination. Read here
  

• Swiggy vs Zomato: Which is better investment bet? Morgan Stanley weighs in: Swiggy and Zomato: The culinary titans are locked in a battle for food delivery supremacy. While Swiggy’s unit economics are improving, Zomato’s larger scale and higher margins give it a competitive edge. Which food delivery app will reign supreme? Will Swiggy’s IPO shake up the market? Read here
  
  
• Sebi tightens F&O rules to curb derivatives market frenzy, protect small investor: The Securities and Exchange Board of India (SEBI) has tightened the norms for equity derivatives trading, raising the entry barrier and making it more expensive for retail investors. The new rules will come into effect from November 20, 2024. Read here

Economy & Sectors

• India has emerged as one of the best global markets for the long haul. Here are the drivers—and how to play the rally. India’s stock market is on fire! Investors are flocking to the country’s booming market, driven by strong economic growth, infrastructure investments, and a tech-savvy banking system. With its potential for long-term outperformance, India is emerging as a top investment destination. Don’t miss out on this exciting opportunity! Read here
  
  
• Israel-Iran War: How Conflict In Middle East Will Impact Indian Economy? Explained: A major conflict in the Middle East could disrupt global trade, impacting India’s economy by raising freight costs and crude oil prices. With India heavily reliant on oil imports, this may spike inflation and slow growth. Discover how this could reshape the global economy and affect your finances. Read here
  

• The key to India’s economy? Making women safer: India’s economic future hinges on women’s safety, with experts saying that empowering more women in the workforce could unlock massive growth potential. Learn how protecting women can drive transformative growth in India’s economy. 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.

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.