Category: CAGR Insights – weekly newsletter curated by Kshitiz

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

Index	12-Apr-24	05-Apr-24	Change
Nifty 50	22,516	22,526	-0.04%
Nifty 500	20,751	20,720	0.15%
Nifty Midcap 50	14,052	13,979	0.52%
Nifty Smallcap 100	16,509	16,354	0.95%

Chart Ki Baat

Chart credits: @QCompounding

Gyaan Ki Baat

Crowdfunding is a method of raising funds for a project, venture, or cause by pooling small amounts of money from a large number of people, typically via the internet. It bypasses traditional financing avenues like banks or venture capitalists, allowing individuals or organizations to solicit contributions or investments from a wide audience. Crowdfunding platforms facilitate this process, offering a space for creators to showcase their projects and for potential backers to pledge their support. Depending on the platform and the type of crowdfunding model used (such as donation-based, reward-based, equity-based, or debt-based), backers may receive perks, products, equity, or interest in return for their contributions. Crowdfunding has become increasingly popular for startups, creative projects, charitable causes, and even personal expenses.

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

Personal Finance

• Understanding the 4% Rule in Retirement Planning – The 4% rule in retirement planning suggests withdrawing 4% of one’s savings annually, adjusted for inflation, but its efficacy varies due to market unpredictability and individual circumstances. Read here.
  
  
• The Myth of Luck – Understanding the distinction between luck and what isn’t repeatable is crucial in learning from successful individuals and applying their strategies effectively in business and investing. Read here.
  
  
• A Roadmap to Money Management Success – Establishing financial safety with an emergency fund and paying off high-interest debt precedes saving for retirement and fulfilling life goals, while aspirational goals like maxing out retirement accounts come in the endgame of financial planning. Read here.

Investing

• AI Revolution Takes Flight at Microsoft AI Tour – The rise of AI, from statistical to cognitive engines, is transforming industries globally, driving productivity gains and innovation, with Microsoft’s Copilot as a notable example. Read here.
  
  
• Exploring the Intersection of Longevity, Financial Wellbeing, and Life Stages – Insights from Dr. Thomas Mathar on Standard Deviations with Dr. Daniel Crosby. Listen here.
  
  
• Embracing the Uncomfortable Truth – Navigating financial markets requires confronting uncomfortable truths, from the dominance of large corporates to the inevitability of changing interest rates, challenging investors’ established beliefs and strategies. Read here.

Economy

• Delayed Rate Cut Forecasts Amidst RBI’s Steady Policy Stance – Indian overnight indexed swap (OIS) rates have risen post-RBI meeting, indicating expectations of a rate cut in early 2025 instead of late 2024, with market sentiment influenced by robust growth and inflation concerns. Read here.
  
  
• India’s AI Evolution – Enterprise and government sectors in India are increasingly leveraging AI and technology, with focus on applications such as customer service enhancement, digital infrastructure development, and fostering innovation, poised to drive significant economic growth. Read here.
  
  
• Geopolitical Tensions Drive Bullion Surge – Gold prices soar to record highs amidst global tensions, central bank purchases, and speculation on monetary policy changes. Read here.
  
  
• The Yuan-Rupee Linkage – The Indian rupee’s recent movement appears to be more closely linked to the Chinese yuan than to the US dollar, potentially affecting India’s export competitiveness. 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	05-Apr-24	28-Mar-24	Change
Nifty 50	22,526	22,327	0.89%
Nifty 500	20,720	20,255	2.29%
Nifty Midcap 50	13,979	13,527	3.34%
Nifty Smallcap 100	16,354	15,270	7.09%

Chart Ki Baat

Gyaan Ki Baat

A turnover ratio is the percentage of stocks and other assets in a mutual fund that have been replaced over the course of a year. This number can vary depending on the type of mutual fund, its investment goals, and the portfolio manager’s investing approach. Assessing mutual funds through this metric is valuable in determining which ones are suitable for inclusion in your investment portfolio.

The mutual fund turnover ratio can affect how much you spend on owning the fund. When the turnover ratio is high, you might end up paying more for things like brokerage fees and bid-ask spreads. You can locate the turnover ratio in the mutual fund company’s most recent financial statement. It usually falls somewhere between 0% and 100%, though for actively managed funds, it can be even higher. A turnover rate of 0% means that the fund’s investments haven’t changed at all over the past year.

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

Personal Finance

• Embracing Conviction – Navigating the challenges of investment emotions, a reminder of long-term investor principles amidst short-term pressures and behavioral tendencies. Read here.
  
  
• The Art of Reconnaissance in Investing – The importance of thorough due diligence in investing, emphasizing the necessity of on-the-ground research and personal interaction for uncovering deeper insights beyond surface-level analysis. Read here.
  
  
• Selling the Story – The article explores how individuals often shape their narratives to emphasize struggles, particularly in the financial space, to sell stories and advice, highlighting the importance of scrutinizing advice based on its merit rather than the storyteller’s background. Read here.

Investing

• Reality Check of Retail Investing in India – Retail investors from smaller towns are flocking to the Indian stock market, fueled by speculative trading and influenced by finfluencers, amid warnings of overvaluation and risks from regulators and seasoned investors. Read here.
  
  
• Transition in Banking Investment Portfolios – RBI’s new guidelines on investment classification and valuation aim to align Indian banking standards with IFRS, allowing for greater flexibility but requiring prudent management of securities portfolios. Read here.
  
  
• Decoding the Small Cap Cycle – The article evaluates whether small caps are in a bubble using a comprehensive six-lens framework, indicating caution due to red signals in long cycle, valuations, flows, past performance, despite strong fundamentals. Read here.
  
  
• New KYC Rules on Hold for existing investors – Mutual fund investors relieved as accounts won’t be blocked despite missing the KYC deadline, however the new KYC rules still apply for new investors. Read here.

Economy

• The Evolution and Future of Securitisation in India – Securitisation in India has evolved from mortgage-backed securities to asset-backed securities, but further growth hinges on addressing gaps in regulation, expanding into new asset classes, and enhancing market transparency and participation. Read here.
  
  
• RBI Keeps Interest Rates Steady Amid Robust Growth and Inflation Concerns – The Indian central bank kept its key interest rate unchanged at 6.5% for a seventh consecutive meeting, citing robust economic growth and persistent inflation above the 4% target. Read here.
  
  
• India’s Fixed Income Market at an Inflexion Point – India’s fixed income market poised for growth amidst favorable demand-supply dynamics and global rate expectations, prompting strategic portfolio adjustments. Read here.
  
  
• Unlocking India’s Potential – Professor Aswath Damodaran outlines India as a significant investment opportunity while addressing the obstacles it must overcome and the necessary reforms for realizing its economic strength. 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.

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

Index	15-Mar-24	07-Mar-24	Change
Nifty 50	22,023	22,485	-2.05%
Nifty 500	19,825	20,430	-2.96%
Nifty Midcap 50	13,346	13,931	-4.21%
Nifty Smallcap 100	14,847	15,703	-5.46%

Chart Ki Baat

Bazaar Ki Baat

In the 17th edition of “Bazaar ki baat”, we discuss 2 special topics

1. How to rebalance your portfolio
2. PPFAS launches a new category

Watch here.

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

Personal Finance

• Deciphering the Rise of the Indus App Store – Exploring the features, challenges, and strategies of India’s new Indus app store in competing with Google Play. Read here.
  
  
• From Rebuilding to Marvel Superstar – Robert Downey Jr.’s transformative role as Iron Man paved the way for one of the greatest comebacks in acting history, earning him over $450 million and propelling the Marvel Cinematic Universe to unprecedented success. Read here.
  
  
• Navigating Market Volatility – The author reflects on lessons from historical market data, emphasizing the importance of staying invested, reinvesting dividends, and resisting emotional impulses in turbulent times. Read here.
  
  
• The Power of Reputation in Investing – Building a strong reputation is the ultimate edge in investing, attracting opportunities, respect from companies, and facilitating decisiveness in decision-making. Read here.
  
  
• Mastering the Art of Regular Writing – Building a consistent writing habit involves aligning writing goals with personal aspirations, committing to a schedule, and embracing quantity over perfection through a structured habit loop. Read here.
  
  
• Insights Gained from Two Decades in Investment Management – Twenty valuable lessons for managing money covering the importance of risk perception, emotional intelligence, long-term perspective, and simplicity in investment success. Read here.

Investing

• Balancing Opportunity and Risk in a Bull Market Surge – Navigating the Indian equity market’s euphoric rise amidst valuation concerns and the importance of focusing on companies with strong earnings growth prospects. Read here.
  
  
• Silent Exit Amid Regulatory Scrutiny – Founder of Paytm, faces significant challenges and regulatory scrutiny amid his resignation from the board of Paytm Payments Bank due to repeated violations. Read here.
  
  
• Paytm Payments Bank Penalized for Money Laundering Violations – FIU-IND imposes a penalty on Paytm Payments Bank for money laundering violations, while One97 Communications discontinues inter-company agreements and announces operational changes. Read here.
  
  
• India’s Resilient Bull Run – The Bull Run stands out amid Global Market Volatility, showcasing balanced growth, driven by diverse sector performance. Read here.
  
  
• Indian Market Dynamics – Indian retail investors favor SmallCaps over Megacaps, causing a disparity between the profitability and market capitalization of Megacaps, presenting potential investment opportunities. Read here.
  
  
• Potential Trajectory of Gold – Gold’s recent surge, fueled by geopolitical tensions and concerns over the safety of US Treasuries, could see it reaching $15,000 per ounce by 2026, driven by historical bull market trends and investor demand. Read here.
  
  
• Embracing Buffett and Thiel’s philosophy – Investing in monopolies and oligopolies can lead to substantial returns, but carefully considering industry dynamics is crucial. Such companies dominate industries, generate significant cash flow, and benefit from barriers to entry. Read here.
  
  
• The Shifting Narrative of Cryptocurrency – The author reflects on the changing narrative of cryptocurrency, highlighting the current momentum-driven rally fueled by increasing adoption and speculation, despite lacking fundamental use cases. Read here.

Economy

• A Focus on Private Investment Revival – India’s macroeconomic conditions show signs of improvement, but a revival in private investment and consumption remains crucial for sustained growth. Read here.
  
  
• Asia’s Economic Outlook – Escalating violence in the Red Sea could slow Asia’s economic growth and increase inflation due to supply chain disruptions, impacting export-dependent economies and prompting central banks to reconsider monetary easing. Read here.
  
  
• India’s Digital Revolution – The Resurgence of India’s digitalization, marked by a thriving IT sector, innovative digital initiatives, and the launch of the S&P India Tech Index, reflects its journey toward becoming a global digital leader. 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	07-Mar-24	01-Mar-24	Change
Nifty 50	22,485	22,339	0.65%
Nifty 500	20,430	20,350	0.39%
Nifty Midcap 50	13,931	13,898	0.24%
Nifty Smallcap 100	15,703	16,059	-2.21%

Chart Ki Baat

Gyaan Ki Baat

A leveraged buyout (LBO) is a financial transaction where a company is acquired using a significant amount of borrowed funds, typically with the target company’s assets serving as collateral. Private equity firms often employ LBOs to take over companies, aiming to improve their financial performance and ultimately sell them at a profit. The acquired company’s cash flow is used to repay the debt, with the expectation that operational improvements will enhance its value. 

Example – Acquisition of Cafe Coffee Day (CCD) by private equity firm KKR & Co. Inc. in 2019. KKR initiated an LBO to take CCD private, leveraging debt financing to acquire a controlling stake in the coffee chain. The transaction aimed to restructure CCD’s operations and improve its profitability amid challenging market conditions.

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

Personal Finance

• Exploring the Downside of Being Smart – Exploring the potential pitfalls of high intelligence, it can lead to self-deception, difficulty in accepting alternative perspectives, and resistance to change, posing challenges in evolving fields and hindering personal growth. Read here.
  
  
• Strategies for Informed Investing – Navigating through cognitive biases in investing requires recognizing, understanding, and implementing strategies to mitigate their impact for more informed decision-making and rational outcomes. Read here.
  
  
• A Tale of Innovation, Rivalry, and Hubris – The rise and fall of Adam Osborne and his groundbreaking Osborne 1 portable computer, highlighting his innovative approach to software bundling and aggressive marketing tactics, ultimately leading to rapid success followed by a dramatic downfall. Read here.

Investing

• Bond Index Inclusion – Bloomberg announces the inclusion of India Fully Accessible Route (FAR) bonds in the Bloomberg Emerging Market Local Currency Government Index, gradually phased in over a ten-month period starting January 31, 2025. Read here.
  
  
• Striking a Balance – Apple’s decision to end Project Titan reflects the importance for companies to balance innovation with pragmatism, knowing when to walk away from unsuccessful ventures. Read here.
  
  
• Finding Alpha in the Arena – The author identifies valuation-agnostic trading strategies, particularly pod shops, as the new enemy to be exploited in the market. Read here.
  
  
• Decoding Indus Valley – Delve into the 2023 Indus Valley Report for a comprehensive exploration of India’s startup ecosystem, revealing unique innovations, challenges, and the country’s emergence as a global economic player. Read here.
  
  
• A Strategic Victory Amidst Rating Agency Setbacks – India’s successful engagement with global bond and equity index agencies has boosted its market weight and protected FPI funds, despite ongoing challenges with sovereign credit ratings. Read here.
  
  
• Narratives Follow Prices – The power of dominant narratives in financial markets, drawing parallels with historical speculative manias and highlighting the transformative yet unpredictable nature of industries. Read here.
  
  
• Interpreting Market Conditions – Ray Dalio suggests that after assessing market conditions; recent readings suggest that while US equities, including the ‘Magnificent 7’, have rallied significantly, they do not appear to be in a full-on bubble. Read here.

Economy

• Understanding India’s Youth – Exploring the interplay between learning and career decisions among India’s youth reveals complex socio-economic influences. Addressing these factors could foster more inclusive, diverse, and financially sustainable career pathways for India’s next generation. Read here.
  
  
• India’s Allure: Fact, Fiction, or A Story for Redemption? – Foreign investors are increasingly focusing on promoting India’s growth story to compensate for difficulties raising funds for China amidst redemptions, despite concerns over valuation and slowing economic momentum. 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.