Category: CAGR Insights – weekly newsletter curated by Kshitiz

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

Index	09-Feb-24	02-Feb-24	Change
Nifty 50	21,783	21,854	-0.33%
Nifty 500	19,962	19,911	0.25%
Nifty Midcap 50	13,841	13,658	1.34%
Nifty Smallcap 100	16,269	16,278	-0.05%

Chart Ki Baat

Gyaan Ki Baat

Corporate NPS is a great tool to save tax and systematically invest towards your retirement kitty!

Some companies offer you to have a part of your basic salary invested towards NPS. This is called Corporate NPS.
The contribution goes towards the same NPS kitty where you make your voluntary contributions but the tax benefit is additional.
The good part is that this tax deduction is available under the new tax regime as well.

So if your company offers this benefit, do consider opting for it.

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

Personal Finance

• Unravelling the Hunt for Silver – The article analogizes the infamous Hunt brothers’ silver market manipulation in the 1970s with recent commodity speculation, highlighting similarities and lessons for contemporary investors.  Read here.
  
  
• The power of compounding over a long runway – Buffett’s philosophy advises against unnecessary interruptions, advocates for low-cost index investing, and encourages starting savings early for future wealth accumulation. Watch here.
  
  
• Navigating the Paytm Bank crisis – Safeguarding investments and understanding the impact on financial transactions. Read here.
  
  
• SEBI Takes Action Against Market Experts – SEBI orders 15 guest experts from Zee Business to repay Rs 7.41 crore in “unlawful gains” made by advising opposite market positions. Read here.

Investing

• Detecting Alarm Bells: Insights from Forensic Accounting Expert – In the Midst of a Booming Market, Forensic Accounting Specialist Ashwini Damani Shares Strategies for Identifying Warning Signs.  Read here.
  
  
• Cryptocurrency Surge and Regulatory Oversight – Cryptocurrency markets, notably Bitcoin and Ethereum, saw a significant resurgence in late 2023 attributed to a climb in market capitalization, while regulators aim to regulate stablecoin issuance. Read here.
  
  
• Investing in Turnaround Microcap Companies – The article draws parallels between investing in microcap companies and owning used cars, emphasizing the importance of identifying companies with solvable problems and capable management. Read here.

Economy

• India’s Interim Budget Signals Solid Macroeconomic Stability – potentially leading to increased private sector investment, enhanced bond market performance, and implications for RBI’s monetary policy adjustments amidst comfortable inflation levels. Read here.
  
  
• The Complex Dynamics of India’s North-South Economic Divide – The article highlights the economic disparities driving migration from impoverished northern and eastern regions to developed southern states, leading to political tensions and debates over tax distribution and population criteria. 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	12-Jan-24	05-Jan-24	Change
Nifty 50	21,908	21,705	0.93%
Nifty 500	19,752	19,585	0.85%
Nifty Midcap 50	13,355	13,457	-0.75%
Nifty Smallcap 100	15,539	15,435	0.67%

Chart Ki Baat

Gyaan Ki Baat

Social trading is a practice that integrates social media and online platforms into traditional trading processes, allowing investors to observe, follow, and even replicate the trading strategies of experienced and successful traders. This approach democratizes financial markets by providing access to insights, strategies, and real-time information that were once limited to professional traders.

Benefits of Social Trading:

Learning Opportunities: Novice traders can learn from experienced counterparts, gaining insights into successful trading strategies and market dynamics.

Diversification: Social trading allows for a diverse range of investment opportunities by providing access to various asset classes and markets globally.

Time Efficiency: Copy trading and real-time information dissemination save time for traders who may not have the resources to conduct extensive market research.

Inclusivity: Social trading promotes inclusivity by breaking down barriers and providing everyone with the tools to participate in financial markets.

Challenges and Risks:

Dependency on Others: Relying solely on the decisions of others without a comprehensive understanding of the markets poses risks.

Market Volatility: Financial markets are inherently volatile, and social trading does not eliminate the risk of market fluctuations.

Security Concerns: As with any online platform, security is a concern. Users must choose reputable social trading platforms to ensure the safety of their financial information.

However, it is crucial for users to approach social trading with a balanced understanding of its benefits and risks to make informed decisions in the dynamic landscape of financial markets.

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

Personal Finance

• Retiring to Roots – A significant percentage of NRIs contemplating returning to India post-retirement, drawn by factors such as lower cost of living, quality healthcare, cultural ties, and attractive investment opportunities. Read here.

• Timeless Investment Lessons from 2023 – Lessons including the unpredictability of market forecasts, the risks of chasing highly valued stocks, and the importance of discipline, diversification, and ignoring political influences. Read here.

• PAYTM Founder Contemplations – Exploring the Entrepreneurial Odyssey of PAYTM Founder Vijay Shekhar Sharma and the Future Landscape of Fintech in India. Watch here.

• An Author’s Wisdom on Writing – Tiago Forte, known for pioneering the concept of a Second Brain, imparts valuable lessons on writing, emphasizing the importance of note-taking, creation, and organization, ultimately aiming to improve ideas rather than merely save information. Read here.

• SEC Approval of Bitcoin ETFs Sparks Optimism – Major investment firms, including BlackRock and Fidelity, is expected to bring renewed life to the cryptocurrency market, potentially attracting $100 billion in institutional investments. Read here.

Investing

• Company MOATs that affect profitability – How various companies such as Coco Cola, FedEx have certain MOATs such as switching costs, intangible assets to improve their profitability. Read here.

• India’s PLI Scheme Propels Self-Reliance – India’s Production Linked Incentive (PLI) Scheme emerges as a catalyst for self-reliance, driving significant investments across key sectors like solar, pharmaceuticals, electronics, automobiles, and steel. Read here.

• Do active managers outperform indices? and How to save taxes using Section 54F? – In the 15th edition of “Bazaar ki baat”, apart from discussing the markets outlook, we discuss 2 special topics (i) Do active managers outperform indices (ii) How to save taxes using Section 54F of the Income Tax act. Watch here.

• A Self-Taught Entrepreneur’s Journey from Manufacturing to Equity Markets – Shyam Sekhar shares insights on becoming an investor, emphasizing the importance of value investing, surviving market challenges, and staying disciplined during market booms. Watch here.

• Cartoon Network’s Turmoil – Cartoon Network’s struggles, marked by a focus on reboots, late localization, and financial challenges, hinder its ability to explore, experiment, and adapt, raising questions about its future. Read here.

Economy

• India Expected to Lead Asia-Pacific in Salary Increments in 2024 – Indian employees are projected to receive the highest salary increments, with a median pay hike of 9.7%, highlighting the country’s economic resilience amid a global slowdown. Read here.

• India’s Transformative Journey – India has transformed its master narrative, marked by economic reforms, improved security, and tech innovations, resulting in significant achievements and a shift towards a more confident and determined national identity. Read here.

• India’s Capital Expenditure Surge – The Indian government’s sustained focus on capital expenditure has significantly boosted the rate of gross fixed capital formation, but questions arise about the sustainability of such levels and the impact of the impending Lok Sabha elections. Read here.

• Index Inclusion of Indian bonds – Bloomberg Index Services proposes the inclusion of eligible Indian bonds in its emerging market local currency index from September 2024, potentially leading to billions of dollars in inflows into the country. Read here.

• Indian Firms Boost Forex Risk in 2023 – Indian companies increase exposure to forex risk in 2023, relying on Reserve Bank of India’s stability measures amid a drop in forward hedging contracts for importers and exporters. 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-Jan-24	29-Dec-23	Change
Nifty 50	21,705	21,731	-0.12%
Nifty 500	19,585	19,429	0.80%
Nifty Midcap 50	13,457	13,145	2.37%
Nifty Smallcap 100	15,435	15,144	1.92%

Chart Ki Baat

Gyaan Ki Baat

Open interest is a frequently used term in the world of futures and options trading. In this market, the number of active contracts is in constant flux each day. Referring to the total number of open positions held by traders, open interest includes all outstanding options and futures contracts that are still active and have yet to be closed, expired, or exercised.

Instead of simply monitoring the overall number of trades, open interest plays a crucial role in keeping tabs on all active positions within a particular contract. This gives traders a more accurate understanding of the contract’s trading activity and level of interest, revealing whether there is a rise or decline in funds being invested in the contract.

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

Personal Finance

• Unlocking Growth and Wisdom – The author argues that passive learning, characterized by broad exploration, curiosity-driven discovery, is often more valuable and conducive to personal and professional growth than rigid, active learning structures. Read here.
  
  
• Charlie Munger: A Mentor in the Art of Thoughtful Decision-Making – This article addresses the importance of recognizing biases, leveraging opportunities, and understanding human nature in decision-making. Read here.

Investing

• Special Trading Session on Jan. 20 – The national bourses will conduct two special live trading sessions on Jan. 20 as part of plans to switch over to a disaster recovery site. This decision aligns with the SEBI’s framework for a business continuity plan and disaster recovery site for stock exchanges. Read here.
  
  
• Indian Stock Market Rally: Fuelled by Broad-Based Earnings Growth or PE Expansion? – The resurgence in India’s corporate profits is propelling the stock market rally, with large-cap gains driven by earnings growth and mid-cap gains relying on PE expansion, prompting caution amid elevated valuations. Read here.
  
  
• Value chain of EV batteries – The video concentrates on the capex investment required for EV batteries and its components, it lists companies involved in the capex for developing the value chain. Watch here.

Economy

• Record Direct Tax Collections Signal Strong Fiscal Health for India in FY2024 – Net Direct Tax Collections for FY2024 have surpassed 75% of budgeted estimates, driven by a surge in Personal Income Tax filings, rising corporate profits, and efficient fiscal management. Read here.
  
  
• New Investment Announcements in India Remain Subdued – New investment announcements in India remain sluggish, with Q3 FY24 showing a slight uptick in power and service sector but still at low levels. Read here.
  
  
• RBI’s draft rules on Bond Forward in Government Securities – The rules signal a positive move, addressing the demand from Life Insurance companies and mitigating regulatory concerns by bringing these trades under formal regulation. 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	22-Dec-23	15-Dec-23	Change
Nifty 50	21,331	21,457	-0.58%
Nifty 500	19,038	19,145	-0.56%
Nifty Midcap 50	12,827	13,029	-1.55%
Nifty Smallcap 100	14,827	14,886	-0.40%

Chart Ki Baat

Gyaan Ki Baat

Buffet Indicator – The stock market capitalization-to-GDP ratio serves as a key metric to assess whether the overall market is currently undervalued or overvalued relative to its historical average. The significance of this ratio gained prominence following Warren Buffett’s acknowledgment that it is likely the “best single measure” to gauge valuations at any given moment.

In Fiscal Year 2023, the market cap to GDP ratio in India stood at 95. However, due to a recent rally, the ratio has surpassed 100. While the long-term average hovers around 80%, the elevated ratio suggests that the market might be overheated in the short term. Notably, the ratio has remained above 100 since Fiscal Year 2021, diminishing its effectiveness as a short-term indicator.

The reliability of the Market Cap to GDP ratio is notably higher in economies where the market cap more substantially mirrors economic activity. Consequently, advanced countries like the US, UK, and Singapore exhibit Market Cap/GDP ratios well above 100, given the prevalence of formal sector businesses in these nations.

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

Personal Finance

• Intellectual Dishonesty in What’s Being Sold – The article discusses the trend of individuals making money by selling advice on how to do something rather than actually engaging in the activity, emphasizing the importance of honesty in the face of potential financial scams. Read here.

• Unmasking Financial Charlatans – The author critiques financial doomsayers, including Robert Kiyosaki, for their persistent predictions of economic collapse, emphasizing the importance of realistic financial advice. Read here.

• Fintech Solutions Revolutionizing Indian Offline Retail – This blog explores promising fintech solutions for Indian merchants, emphasizing practicality and incremental adoption, including diverse payment methods, enhanced credit accessibility, and tailored insurance offerings. Read here.

Investing

• An Alpha generation strategy – Turtle Creek Asset Management, a value investing firm, distinguishes itself by actively trading around core positions through Continuous Portfolio Optimization clocking compounded annual returns of 20% over 25 years. Read here.

• Discovering Your Investment Philosophy – Establishing a robust investment philosophy involves identifying market inefficiencies, the underlying causes, corrections, and providing a foundational framework for consistent decision-making. Read here.

• Navigating the Risks of Market Concentration – The article explores the potential challenges arising from the current unprecedented market concentration in the U.S., emphasizing the need for investors to reconsider traditional strategies for better risk management and alpha generation. Read here.

• The importance of having a well-defined investment process – The note emphasizes the critical role of drawing insights from the experiences of successful investors and highlighting the importance of sticking to the process for long-term success in equity investing. Read here.

Economy

• Potential Consequences of Suez Canal Crisis – The blockage of the Suez Canal may lead to increased freight costs, affecting India Inc’s earnings and potentially stoking inflation, with sectors such as textiles, oil and gas, chemicals, capital goods, metals, and pharma being particularly vulnerable. Read here.

• Private Capex Surge: Unveiling the Resurgence – Private capital expenditure in India has surged with optimism driven by supportive government policies, rising GDP growth, increased capacity utilization, and higher corporate profitability, indicating a potential boost in long-term economic growth. Read here.

• Facebook’s Struggle in India – As India tightens platform laws ahead of the upcoming general election, Facebook witnesses a tenfold increase in content restrictions, reflecting a significant shift in the online landscape and concerns about free speech. Read here.

• Diverge views on Exchange Rate Regime and Policy Recommendations – IMF’s reclassification of India’s exchange rate regime, including tax measures and trade restrictions, has been met with strong disagreement from Indian authorities. Read here.

• Comparison of Global Inflation – India’s inflation for November 2023 appears higher than most countries; the analysis includes real policy rate comparison and movement in global commodity prices. Read here.

• Macro and Bond Market Insights – The Fed’s recent pivot signals the end of the hiking cycle, with potential rate cuts discussed, influencing a bullish bond view and supporting an elongation of portfolio maturities. Read here.

• Indri: Transforming India’s Spirits Market – India-made single malt whisky, Indri, named the world’s best is challenging global brands and fuelling a boom in Indian whisky consumption. 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.