Last few years had been great for the markets as Sensex and Nifty were unidirectional in just going up. So everyone wanted to start investing in equity. Why? Well, because equity is what is going up, everyone is investing and so I should too. Everyone wanted to start SIPs and turn into millionaires by their next birthday. The hysteria was unexplainable. But in such a situation, generally, because of the high demand and continuous flows coming into the market, stocks tend to get overvalued. Since everyone is hoping against hope, people are ready to pay prices they don’t understand.
However, like everything else in life, markets do reverse to their mean. And this means some volatility or correction happens with the slightest of triggers. Those triggers may have no immediate or long-term impact on the companies underlying the indices, but markets may react as if all hell has broken loose. The feeling is pretty much like how we feel when we are down with a 104-degree fever and we are sure we will not survive “just this time”. And this is when your equity funds portfolio might show a negative return.
Your portfolio will definitely show a negative return if you started your investing just a few months before the volatility started (In our case, those who started investing in 2017). This happens because all your investments happened at prices which were already high. In case of SIPs, each instalment was getting invested at a higher price. And because only a few such instalments got invested, even the tiniest of corrections will show you a negative portfolio.
So what should you do?
Well, this depends on what kind of an investor you are. If you are someone who can smile through the fever and have an unfailing belief on “this too shall pass”, then you should simply stick around.
But if you are someone who frowns and frets as soon as your investment drops by a few notches, you probably are not ready for equity yet. Also, if you thought that equity will multiply your wealth in next 2 years just because it did so for the last 2 years, you may again want to reconsider your decision of investing in equity mutual funds. But there is a solution for such investors too. Read here to find out what.
CAGR Insights is a weekly newsletter full of insights from around the world of the web.
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The Power of “Enough”
In our relentless pursuit of financial security and abundance, it’s easy to get caught on a hamster wheel of more. More income, more investments, more possessions… But have we ever paused to ask ourselves a fundamental question: “How much is enough?”
This isn’t some philosophical riddle; it’s a crucial element of sound personal finance. Understanding your “enough” isn’t about settling for less or stifling ambition. It’s about:
Defining True Wealth: True wealth isn’t just about the digits in your bank account. It’s about aligning your spending with your values and using your resources to create a life you genuinely enjoy. What experiences, relationships, and contributions truly matter to you?
Avoiding Lifestyle Inflation: As our income grows, so often does our spending. Recognizing your “enough” helps you resist the urge to constantly upgrade your lifestyle to match your earnings, freeing up more resources for saving, investing, and pursuing your passions.
Reducing Financial Stress: Constantly chasing “more” can lead to chronic stress and anxiety. Knowing your “enough” provides a sense of contentment and security, allowing you to focus on what truly matters.
Making Intentional Choices: When you know what “enough” looks like for you, you can make more deliberate choices about your career, spending, and investments. You’re less likely to be swayed by societal pressures or marketing tactics that push you to consume more than you need.
So, how do you find your “enough”?
Reflect on Your Values: What truly brings you joy and fulfillment?
Track Your Spending: Where does your money actually go?
Define Your Goals: What do you want to achieve with your money?
Imagine Your Ideal Life: What does a fulfilling day, week, or year look like?
Finding your “enough” is a journey, not a destination. It’s about continuous self-reflection and aligning your financial decisions with your values. When you know what’s truly enough, you can live a richer, more meaningful life, regardless of your net worth.
Personal Finance
Budget changes: Will capitals gains make you ineligible for tax rebate? For many taxpayers, the Section 87A rebate under the Income Tax Act has been a valuable relief, reducing the overall tax liability, especially for those with an income of Rs 7 lakh or less. However, the Union Budget 2025 has introduced significant changes that could affect how you claim this rebate. Read here
What’s the smarter choice — to buy a flat or rent one? Should you rent or buy a home? It’s a classic dilemma! Buying builds stability and wealth but renting offers flexibility and financial freedom. The right choice depends on your career, liquidity, and market conditions—so crunch the numbers and plan wisely! Read here
LIC rolls out Smart Pension Plan. Key questions answered on retirement scheme: Life Insurance Corporation of India (LIC) has rolled out LIC New Smart Pension Plan. It is a non-participating, non-linked, individual, savings, immediate annuity plan. Read here
Investing
NSDL, CDSL launch unified app to streamline financial data: NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited), in collaboration with capital markets regulator Securities and Exchange Board of India (SEBI), have launched a mobile app Unified Investor Platform for investors to manage their portfolios. How will it benefit investors to manage portfolios? Read here
Is it a good time to invest in non-convertible debentures (NCDs) amid market correction? As stock markets face continued selloffs, some investors are considering non-convertible debentures (NCDs) for stable returns. NCDs offer fixed interest rates and come in secured and unsecured types. To learn more about them Read here
IFSCA eases compliance for fund managers in GIFT City to boost investment: IFSCA has eased regulations for fund managers in GIFT City, slashing corpus requirements, simplifying compliance, and allowing greater investment flexibility. Key reforms include relaxed listing norms, overseas expansion freedom, and streamlined hiring—boosting GIFT-IFSC’s appeal as a global investment hub. Read here
Economy & Sectors
India set to become high-income country by 2047 buoyed by services sector: India is projected to become a high-income country by 2047 with a GDP of $23-35 trillion, driven by the services (60%) and manufacturing (32%) sectors. With 200 million joining the workforce, high-value job creation will unlock economic potential. Read here
Is India’s economy set for a strong recovery? Here’s what RBI says: The government’s push on capital spending, MSMEs, agriculture, and exports is expected to help the economy in the long run while keeping the fiscal deficit in check. A recent repo rate cut might also support domestic demand. Read here
India Aims For 70% Female Workforce Participation By 2047: Addressing the first G20 Employment Working Group Meeting 2025 under South African Presidency, Union Labour Secretary Sumita Dawra also stated that India’s increasing participation of women in high-growth sectors like IT, R&D, and engineering was noted as a critical driver of economic growth. Read here
Check out CAGRwealth smallcase portfolios
Our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.
• CFF (launched in June 2022) – Ranked 1st amongst smallcase with medium volatility.
• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.
**** 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.
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The focus on consumption is expected to drive economic growth. The UN report forecasts India’s economy to grow by 6.6% in 20257. Deloitte expects India to grow between 6.7% and 7.3% in fiscal year 2025 to 2026.
Think of the Indian economy as a flywheel. Consumption acts as the initial push that starts the wheel turning. When people spend more, businesses see increased demand, leading to higher production, job creation, and further economic activity.
How Tax Relief Fuels Consumption:
Increased Disposable Income: Tax relief, like the kind given up to ₹12 lakhs, directly puts more money in the hands of consumers. This additional income can then be used for discretionary spending, which drives demand across various sectors, including retail, entertainment, and consumer goods.
Boost to Consumer Confidence: Tax relief measures often improve consumer sentiment and confidence. When people feel financially secure, they are more likely to make purchases, take vacations, or invest in big-ticket items, all of which stimulate economic growth.
Multiplier Effect: Increased consumption has a multiplier effect on the economy. As businesses respond to higher demand, they invest in expanding operations, hiring more employees, and increasing wages. This, in turn, leads to even more consumption and further economic growth.
Revival in Consumption Growth: The Economic Survey 2024-25 noted a revival in consumption growth, with Private Final Consumption Expenditure (PFCE) at Constant Prices witnessing a growth rate of 7.3 percent during FY25, compared to 4.0 percent in the previous financial year.
Personal Finance
Is $1 Million Still a Lot of Money? Inflation has eroded its past power, but it still holds value. Once a ticket to the top 5%, today it places you in the top 19%. Wealth is relative, but opportunities have never been better! Curious how much you really need to feel rich today? Read here
How will RBI’s rate cut affect your EMIs? The RBI recently reduced the repo rate. How does this affect interest rates on vehicle loans? Should you expect your monthly payments to decrease? With the RBI’s recent repo rate cut, we may expect lower lending rates for retail loans such as home loans and vehicle loans. Read here
Why RBI’s latest liquidity boost is a big win for homebuyers: RBI’s latest moves, including a repo rate cut and ₹40,000 crore liquidity infusion, are set to lower home loan EMIs, boosting affordability and stimulating housing demand. Read here
Investing
He Made $171 Trading Futures When He Was Only 13–Now He’s Worth $1.2 Billion: Chris Sacca’s investing journey began at 13 with a $171 profit—his first taste of venture capital. He later struck gold with early bets on Uber, Twitter, and Stripe. Now, he’s doubling down on the future, funding game-changing climate-tech startups. Read here
What the RBI rate cut means for fixed income investors: The RBI’s 25 bps rate cut is set to boost fixed-income investments, with bond yields expected to ease. Long-term debt funds may benefit, while short-term debt remains steady. Investors should focus on short-to-medium duration products for optimal returns. Read here
This too shall pass: How to navigate market movements in turbulent times: Nifty fell 10% to 26,216; Nifty Next 50 dropped 18%; Midcap 150 declined 12%. Key factors: weak Q2FY25 earnings, FIIs shifting to China, stronger USD-INR. SIP inflows remain strong. Staggered investments, large-cap exposure, and quality stock focus are key. Read here
Economy & Sectors
India To Remain World’s Fastest Growing Economy, Says Nirmala Sitharaman: Finance Minister Nirmala Sitharaman emphasized India’s strong economic growth, increased capital expenditure, inflation control, and reduced unemployment. She refuted opposition claims on debt and state allocations, highlighting prudent fiscal management, infrastructure investment, and food security measures to sustain economic momentum. Read here
India’s wholesale inflation eases to 2.31% in January: India’s wholesale inflation eased to 2.31% in January, with food and fuel prices declining. Retail inflation fell to 4.31%, below estimates. The RBI expects inflation to average 4.8% this fiscal year and drop to 4.2% next year while monitoring economic pressures. Read here
India needs an ambitious agenda for higher growth: India needs bold economic reforms to sustain high growth and achieve its 2047 development goal. Challenges include slowing expansion, high unemployment, and inflation. The budget focused on consumers but lacked structural changes. Policy shifts in labor, land, and trade are essential for long-term progress. Read here
Check out CAGRwealth smallcase portfolios
Our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.
• CFF (launched in June 2022) – Ranked 1st amongst smallcase with medium volatility.
• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.
**** 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.
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Gyaan Ki Baat
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) concluded its meeting on February 7, 2025, announcing key decisions impacting the Indian economy12. This was the first MPC meet chaired by the newly appointed Governor Sanjay Malhotra12.
Key Decisions and Announcements:
Repo Rate Cut: The MPC voted to cut the repo rate by 25 basis points, bringing it down to 6.25%. This is the first rate cut in nearly five years, with the last cut occurring in May 2020134. The repo rate had remained unchanged at 6.5% since February 20234.
Unanimous Vote: The MPC voted unanimously to maintain a ‘neutral’ policy stance4.
GDP Growth Projection: For the financial year 2024-25, the RBI has projected India’s real GDP growth at 7.2%3.
Inflation Target: The MPC aims to continue improving macro-outcomes in the best interest of the economy and will use flexible inflation targeting to make the best macro decisions. The average inflation has been lower since flexible inflation targeting was adopted, and CPI has mostly stayed aligned with the target4. The RBI is aiming for a fiscal deficit of 4.8% of GDP for the current year and is targeting 4.4% in 2025-263.
Liquidity Boost: The RBI had previously infused approximately ₹1.50 trillion into the banking system through open market bond purchases, FX swaps, and a 56-day variable rate repo.
Personal Finance
Old vs New Tax Regime: Which Is Better New or Old Tax Regime for Salaried Employees? The 2025 budget introduces new tax slabs with lower rates, enhanced rebates, and deductions under the new regime, aiming to simplify tax filing and reduce liabilities. Want to know which tax regime benefits you the most? Read on to make the smartest tax choice for your future! Read here
RBI revises credit reporting rule: How it’s going to affect your credit score: RBI’s new 15-day credit reporting rule, effective from January 2025, ensures faster, more accurate credit scores. Borrowers will benefit from quicker updates on repayments, leading to better loan approvals and interest rates. Read here
Big relief for home loan borrowers as EMIs to fall by 1.8% on a 20 year loan tenure as RBI reduced repo rate by 25 bps: In a major relief for home loan borrowers, RBI cuts the repo rate by 25 basis points after 5 years, expected to lower home loan interest rates. This move aims to support GDP growth and boost economic activity by reducing borrowing costs. Find out how this impacts your home loan rates! Read here
Investing
Category I and II AIFs get tax clarity in the Budget FY26: The government has clarified that income from Category I and II AIFs will be treated as capital gains, taxed at 12.5%, instead of business income taxed at up to 39%. This move, effective April 2026, aims to boost investor confidence and provide tax relief. To know more about the changes. Read here
End of Sovereign Gold Bonds – Alternatives to SGB Now (2025)? The government’s decision to phase out Sovereign Gold Bonds (SGBs) leaves investors looking for new gold investment opportunities. Gold ETFs, Mutual Funds, and physical gold are gaining attention. Want to know the best alternatives for your portfolio? Read here
5 Common Investing Mistakes That Destroy Your Returns: Successful investing requires starting early to harness compounding, resisting the urge to time the market, and managing emotional reactions like fear and greed. Align your risk tolerance with life stages and prioritize understanding your investments for long-term wealth creation. Discover the 5 key mistakes that could derail your investment journey. Watch here
Economy & Sectors
Can a consumption boost save India’s slowing economy? India’s 2025 budget targets middle-class consumption with tax cuts, aiming to boost the economy. Despite a 1-trillion-rupee revenue shortfall, experts stress the need for broader reforms, like capital expenditure and job creation, to sustain growth amid challenges. Find out what’s next for India’s economy. Read here
India’s insurance landscape: Poised for growth: The rapid growth in the insurance sector can be attributed to the increased participation of private players, use of technology, product innovation, improvement in distribution capabilities and improvement in operational efficiencies. Read here
India budget opts for economic sugar rush over reform: India’s 2025 budget, the first under PM Modi’s third term, focused on short-term relief with middle-class tax cuts but lacked long-term growth reforms. Despite forecasts of slower GDP growth (6.4%), experts argue more comprehensive agricultural, labor, and market reforms are needed for sustained growth. Find out how this budget impacts India’s economic future.Read here
Check out CAGRwealth smallcase portfolios
Our smallcase portfolios are ranking well in the smallcase universe in terms of 1-year returns.
• CFF (launched in June 2022) – Ranked 1st amongst smallcase with medium volatility.
• CVM (launched in May 2022) – Ranked among Top 20 across the Momentum smallcase universe.
**** 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.
