CAGR Insights – 16 Feb 2024

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

Index16-Feb-2409-Feb-24Change
Nifty 5022,04121,7831.19%
Nifty 50020,16519,9621.02%
Nifty Midcap 50 14,03513,8411.41%
Nifty Smallcap 10016,19416,269-0.46%

Chart Ki Baat

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Gyaan Ki Baat

Mahila Samman Savings Certificate: a government scheme aimed at encouraging women and girls to save and invest for their future. This exclusive scheme is open for a limited time, from April 2023 to March 2025, and can only be availed by investing in the name of a girl child or woman.

Investor can make a maximum deposit of ₹2 lakhs under this scheme with a single PAN. The scheme provides a  fixed interest rate of 7.5% p.a . . The maturity period of the Mahila Samman Savings Certificate account is two years. There is a partial withsrawal facility available where Investor can withdraw up to 40% of the balance. This investment can be done in some selected banks or a post office near you.

Suppose investing Rs.2,00,000 into this scheme that guarantees a yearly interest rate of 7.5%. In the first year alone, you will earn Rs.15,000 in interest on your initial investment. And in the second year, that amount increases to Rs.16,125. This means that after just two years, you will have a total of Rs.2,31,125.

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

Personal Finance

  • 8.25% Interest Rate on EPF for FY 2023-24, Highest in 3 Years – The 235th CBT meeting of EPFO recommends an 8.25% interest rate on EPF deposits for FY 2023-24, aligning with PM Modi’s social security commitment, pending official approval. Read here.

  • Managing Risks in Equity Investments Amidst Market Optimism – The article provides insights into potential risks including inflation spikes, delayed recession, election uncertainties, geopolitical tensions, and the challenge of a K-shaped economic recovery in India, emphasizing the importance of risk management and implementation in navigating these challenges. Read here.

  • Unlocking Hidden Potential – Exploring how optionality in stock investments, akin to call options, offers potential for non-linear growth and hidden value, exemplified by ventures like Jio and strategic shifts in companies. Read here.

  • Insights on Sector Investing in India’s Equity Market – The article analyzes sector exposures in India’s equity market, highlighting the outperformance of financials and limited exposure to state-owned enterprises, while also discussing the impact of sector valuations and correlations on investment decisions. Read here.

Investing

  • Analyzing Wall Street’s Pivot – Wall Street’s recent shift from China to India as a prime investment destination sparks debate over its broader implications for global markets amidst contrasting economic trajectories. Read here.

  • Why Diet Coke Failed in India – A Case Study of Market Misfit and Taste Preference, leading to Diet Coke’s discontinuation and the rise of zero sugar soft drinks. Read here.

  • SEBI Considers Models to Regulate API-Based Algorithmic Trading – SEBI is considering two models with plans to require stock brokers to take responsibility for their algos’ cyber and data security, and clients to have complete knowledge of the strategies. Read here.

  • The Imperative of Accountability – Anil Singhvi discusses the detrimental impact of poor corporate governance on companies like Byju’s and Paytm, emphasizing the need for accountability among independent directors and auditors to prevent future crises. Read here.

Economy

  • Potential Inclusion of Indian Government Bonds – The Bloomberg Index Services advisory committee suggests adding Indian government bonds to the Emerging Market Local Currency Index, potentially attracting $5 billion from investors, pending formal approval. Read here.
  • Ayodhya’s Economic Transformation – Ayodhya’s economy receives a substantial boost with a ₹41,600 crore investment by the Centre and state government to accommodate the anticipated influx of 2.88-3.6 crore visitors, marking a significant business expansion. Read here.
  • BJP Spends $1.2 Million on YouTube Ads – YouTube has become a crucial platform for political campaigning in India, with parties increasingly relying on influencers and ads to reach voters. Read here.
  • How Listerine Marketed a Medical Condition – Listerine capitalized on creating the concept of “halitosis” to market its mouthwash, exemplifying how marketers can fabricate medical conditions to boost sales.  Read here.
  • EY’s $700 Million Borrowing to Deal with Consulting Spinoff Fallout – EY took on extra borrowing to cover costs related to its failed plan to spin off its consulting unit. Read here.
  • Global Economic Landscape – China and India forecasted to lead the largest consumer markets by 2030, with significant increases in consumer numbers driving global economic shifts. 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 – 09 Feb 2024

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

Index09-Feb-2402-Feb-24Change
Nifty 5021,78321,854-0.33%
Nifty 50019,96219,9110.25%
Nifty Midcap 50 13,84113,6581.34%
Nifty Smallcap 10016,26916,278-0.05%

Chart Ki Baat

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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 – 02 Feb 2024

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

Index02-Feb-2425-Jan-24Change
Nifty 5021,85421,3782.22%
Nifty 50019,91119,4102.58%
Nifty Midcap 50 13,65813,2503.07%
Nifty Smallcap 10016,27815,4175.58%

Chart Ki Baat

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Bazaar Ki Baat

In the 16th edition of “Bazaar ki baat”, we discuss 2 special topics
(i) Why do bond markets love this budget?
(ii) How to save taxes using presumptive taxation?
Watch here.

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

Personal Finance

  • Learning Life and Investing Lessons – The article narrates the author’s experience with a mentor who was a full-time gambler and conviction investor. Despite their differences, the mentor’s teachings left a lasting impact on his life.  Read here.

  • Zudio’s Winning Formula – Revolutionizing Fashion for the Masses Through Strategic Pricing, Franchise Model, and Word of Mouth Magic. Read here.

  • Navigating the Nuances of Money – The intricate dynamics of spending money—whether as a tool for a better life or a yardstick for status reflects the complexity of individual aspirations, psychological wounds, and the challenge of navigating desires beyond basic needs.  Read here.

Investing

  • Navigating the Performance Pressure Paradox – The article discusses the intense pressure on fund managers to chase high-flying stocks like NVIDIA, particularly in the context of benchmarking and emphasizing the potential risks of such behaviour. Read here.

  • Unveiling the Strategies for Consistent Compound Growth – In the challenging landscape of retailing, successful companies like Trent leverage product relevance, high inventory turnover, and strategic reinvestment to achieve consistent compound growth. Read here.

  • Positive Outlook for Bond Markets – The bond market anticipates an unaltered net market borrowing for FY25. Read here.

  • Impact of RBI’s Restrictions on Paytm – RBI’s strict restrictions on Paytm Payments Bank pose potential risks for lenders using FinTech-led sourcing models, impacting incremental disbursements. Read here.

  • Japan’s Increased Investor Interest towards India – India’s equity-focused investment trusts in Japan experienced an 11% growth in total assets in January, signaling investor interest in Indian stocks as a promising emerging market, outpacing inflows into Chinese. Read here.

Economy

  • Small Finance Banks Triumph – SBFs in India have overcome numerous challenges, including the impact of COVID-19, to achieve remarkable growth, diversify their services, and emerge as strong contenders in the financial sector. Read here.

  • Google’s Move to Phase Out Third-Party Cookies Raises Privacy Concerns – Google’s decision has advertisers seeking alternatives while awaiting approval from regulatory authorities, raising uncertainties about the future landscape of online advertising. Read here.

  • India’s Strategies for Narrowing Trade Deficit – India’s efforts to reduce its trade deficit involve a focus on domestic manufacturing, supported by initiatives like PLI and PM Gati Shakti Mission, while the rise in services exports, particularly in the IT sector, contributes to the overall growth in exports. 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 – 25 Jan 2024

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

Index25-Jan-2419-Jan-24Change
Nifty 5021,37821,639-1.21%
Nifty 50019,41019,615-1.04%
Nifty Midcap 50 13,25013,473-1.65%
Nifty Smallcap 10015,41715,482-0.42%

Chart Ki Baat

Image

Gyaan Ki Baat

Covered Call Strategy

Mutual funds employ this strategy to earn premiums by selling call options on stocks they already own, enhancing their overall returns. In addition, it provides a degree of downside protection, as the premium received helps offset potential losses in the stock’s value.  

For example, if an investor owns 100 shares of ABC stock trading at INR 100, they might sell one call option with a strike price of INR 105, receiving the premium. If the stock remains below INR 105 at expiration, the investor keeps the premium; if it rises above INR 105, they may have to sell the shares but still benefit from the premium.

Personal Finance

  • Redefining Money Talks – Gen Z Embraces ‘Loud Budgeting’ Trend on Social Media, Opting for Financial Honesty and Frugality Over Flashy Displays. Read here.

  • A Deep Dive into How David Perell Harnesses ChatGPT – David Perell leverages ChatGPT for deep textual analysis, decision-making, co-writing; showcasing the diverse applications of AI in his creative and educational pursuits. Read here.

  • From Poverty to Prosperity – John Mackay’s journey from impoverished beginnings to becoming one of the world’s wealthiest men through perseverance, self-improvement, and a strategic move to the Comstock Lode during the Gold Rush Era. Read here.

  • The Pitfalls of Shortcuts and the Value of Discipline – The article emphasizes the importance of avoiding shortcuts in business and personal finance, cautioning against the risks of neglecting crucial steps and the potential consequences, as highlighted through personal finance experiences. Read here.

Investing

  • Exploring the Evaluation of Management in Companies – A Comprehensive Analysis of Promoter-Driven and Professionally-Managed Approaches. Read here.

  • Zerodha Launches LIQUIDCASE India’s First ETF – The ETF, tracking the Nifty 1D Rate Index, provides returns similar to overnight mutual funds, surpassing savings account interest rates. Read here.

  • Sebi’s FPI Guidelines: Clarity Emerges on Ownership Disclosures – Sebi’s FPI norms on additional disclosures see less immediate impact, with no urgent liquidation deadline for FPIs holding concentrated positions. Read here.

Economy

  • Strong Performance and Optimistic Outlook for India’s Premium Hotel Industry – The Indian premium hotel industry is poised for strong performance in FY2024 with double-digit revenue growth, increased occupancy to 70-72%, driven by sustained demand from domestic traveland major events. Read here.

  • Indian Insurers Introduce ‘Cashless Everywhere’ for Seamless Medical Claims Settlement – Allowing policyholders to access cashless medical facilities at any hospital, eliminating the need for reimbursement claims and enhancing the overall claims settlement process. Read here.

  • Suez Canal Conflict Escalation – The escalation of the conflict in the Red Sea has led to a potential delays and higher freight costs, impacting sectors with import/export dependencies on these regions, such as chemicals, textiles, auto components, and pharmaceuticals. 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.