Bazaar Ki Baat is a compilation of monthly market & sector update together with relevant events / occurrences in the economy and personal finance world.
In this month’s edition of “Bazaar ki baat”, our Founders Shruti Agrawal, CFA , Kshitiz Jain, CFA, FRM and Vikash Agarwal , CFA discuss the sharp rally in April, Investors lack the skill to sell and how debt funds score over FDs even after removal of indexation benefits.
Below are the various topics discussed with their timestamp, so that you can directly jump to the section you like to watch.
• 00:00 – Monthly performance of the Indian stock market
CAGR Insights is a weekly newsletter full of insights from around the world of web.
Index
5-May-23
28-Apr-23
Change
Nifty 50
18,067
18,065
0.01%
Nifty 500
15,277
15,219
0.38%
Nifty Midcap 50
9,035
8,962
0.81%
Nifty Smallcap 100
9,733
9,672
0.63%
Chart Ki Baat
Gyaan Ki Baat.
Diversification is a risk management strategy that involves holding your money across an array of different investments to reduce your risk exposure.
Investing the majority of your corpus in the same industry or asset class increases portfolio risk. Diversification doesn’t just mean holding a bunch of different stocks, it works best when positions in your portfolio are uncorrelated meaning that their correlation coefficient is close to zero. All this means that the stock prices need to move at least somewhat independently of one another.
Such diversification can be achieved by allocation of funds across asset classes and within classes, and also geographically by investing in both domestic and foreign markets. This way, even if a particular industry or sector underperforms, it has a controlled or limited effect on your portfolio. Whereas other investments with positive performance will likely offset these negative returns.
Here’s the list of curated readings for you this week:
Personal Finance
EPFO extends deadline to apply for higher pension till June 26 – Retirement fund body EPFO on Tuesday extended the deadline to apply for higher pension till June 26. Read here.
Who will bear the extra cost of Higher pensions by EPFO? – It has been decided to draw a 1.16 percent additional contribution from within the overall 12 percent of the contribution of the employers into the provident fundRead here.
Shruti shares her experience of a visit to the LIC office in Chembur, Mumbai. Two things happened when I went there. Read the 2 part series here.
The tragedy called SEBI’s RIA regulations- RIAs are concerned that their communication with existing clients might be hit because of the new regulation on advertisements. Apart from this, industry sources tell CNBC-TV18 that Sebi is also planning on formulating a centralised investment account for RIAs to collect money from investors. Read here.
Investing
3 chart updates on the Markets – Sharp rally in Indian markets in April, as FIIs make a comeback. Read here.
How to analyze Steel Industry? – Valuepickr Forum – Presentation covering commodities/steel cycle decision-making aspect. Read here
India’s High Corporate Tax Rate is Holding Back Corporate Capex – Not only does India’s high corporate tax disincentivize capex (as explained by steel case study outlined above), but it also puts India at a competitive disadvantage to China. Read here
Will forcing PSUs to pay dividends make them more valuable? – Stocks that have “Gujarat” in their name are hugely up the next day (April 26). Simply because oh, some news has come, and it sounds good.. Read here
How Interest Rates & Inflation Impact Stock Market Valuations – This trend makes sense intuitively. The higher the inflation rate, the lower the valuation averages. The relationship between interest rates and valuations is not quite as clearcut. Read here
Economy
Fed raises rates, opens door to pause in tightening cycle – The Federal Reserve moved its management of the post-pandemic economic recovery into a new phase on Wednesday with what may be the last in a historic series of interest rate hikes and heightened attention to credit and other economic risks. Read here
India state govt’s FY24 borrowings seen lower due to off-balance sheet debt – sources– Lower market borrowing by state governments was one factor that helped keep federal government bond yields in check in 2022-2023.Read more here.
JPM buys First Republic bank – The US banking behemoth said in a statement it will take $173 billion of loans and about $30 billion of securities of First Republic Bank including $92 billion of deposits. However, it will not assume the bank’s corporate debt or preferred stock.Read here
**** 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
28-Apr-23
21-Apr-23
Change
Nifty 50
18,065
17,624
2.50%
Nifty 500
15,219
14,847
2.51%
Nifty Midcap 50
8,962
8,731
2.65%
Nifty Smallcap 100
9,672
9,369
3.23%
Chart Ki Baat
Gyaan Ki Baat
What is a REIT?
A Real Estate Investment Trust or REIT operates similarly to how a mutual fund works. Here, retail investors give money to a fund manager, in this case, a REIT manager who then does the job of finding and investing in good income-producing properties. The bundle mainly consists of commercial properties although managers can also look at hospitals, malls, and even residential spaces. These properties earn rental income for the REIT which is then transferred to investors in the form of dividends and that’s pretty much how a REIT operates.
A REIT makes investing in commercial real estate a lot more affordable. It simplifies investing and one doesn’t need to maintain the property or pay taxes on it, and they are managed professionally. Most importantly, the Securities & Exchange Board of India, SEBI regulates and monitors REITs in India
Units in REITs can be bought or sold in the secondary market via any trading platform. It works a lot like how a share is bought and with the buying quantity now reduced down to just 1, you can invest in real estate via REITs starting at just around INR 10000 – INR 15000.
Here’s the list of curated readings for you this week:
Personal Finance
Indian regulator plans to allow mutual funds with performance-based fees – As part of the proposal, the Securities and Exchange Board of India (SEBI) wants to allow additional charges if a fund consistently outperforms a relevant benchmark index and gives higher annualised returns, according to an internal SEBI document. Read here
Why Branded apartments are making a comeback? – Branded residences are back in the market because the buyer today wants more than just a plain-vanilla apartment. There’s also confidence on account of RERA being in place, unlike in 2017 when a lot of people burnt their fingers. Read here.
5 things about Retirement that we haven’t thought about –. Read here
The winner’s edge – When the cost of failure is low, too much pessimism prevents you from trying. When the cost of failure is high, too much optimism encourages unwarranted risk.. Read here
Investing
Points to consider while investing in an AMC business – PPFAS MF CIO Rajeev Thakkar elaborates on what to look for, while investing in an Asset Management Compan. Watch here
Broking is a winner takes it all business – There is a low income per client and increasing fixed costs for tech and compliance. So only with scale, you can survive. Read here
A rambling of a frustrated investor, looking through some of the common themes in investor letters/blogs. Read here
How to do Business Analysis of Organised Retail Companies – Dr. Vijay Malik helps to understand the factors that impact the business of retailers and the characteristics that differentiate a fundamentally strong retail company from a weak one. Read here
Economy
Govt not keen to list gilts on global indices now – India is not very keen to list government bonds on global indices now as the disadvantages outweigh benefits, a senior finance ministry official said. Read here
Chile Stuns Markets And EV Makers By Nationalizing Lithium Industry Overnight – The nationalization poses a fresh challenge to electric vehicle (EV) manufacturers scrambling to secure battery materials, as more countries look to protect their natural resources. Read more here.
Rural Wage Growth Sustains Its Rebound In Recent Months – Rural wages are trending upward for agricultural and non-agricultural workers. Rural wages rose by over 7% for agricultural workers this year, easing by 6.7% in February.Read here
**** 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
21-Apr-23
13-Apr-23
Change
Nifty 50
17,624
17,828
-1.14%
Nifty 500
14,847
14,954
-0.72%
Nifty Midcap 50
8,731
8,677
0.62%
Nifty Smallcap 100
9,369
9,337
0.34%
Chart Ki Baat
Gyaan Ki Baat
NASDAQ (National Association of Securities Dealers Automated Quotations) is an American securities exchange having headquarters at New York, USA.
NASDAQ 100 is a large-cap index focusing on modern industry and technology companies like Apple, Google, Amazon etc, it does not include financial companies.
Indian investors can take exposure via Nasdaq ETFs or Funds of funds and have good diversification in portfolios. These invest in companies that are new aged and have the potential for high growth and at the same time disruptive in nature.
Here’s the list of curated readings for you this week:
Personal Finance
The average equity investor outperformed their investments in 2022 – We believe this is primarily due to investors continuing to invest with their SIPs despite turbulent market conditions, which helped with rupee cost averaging. Read here
Was taxation rule the only driving factor of investing in international funds for Indian investors? – The good news is that a recent study highlights that international diversification can protect investor portfolios over longer horizons against prolonged periods of underperformance by Indian markets. Read here.
Greatness isn’t always rainbows and butterflies – To be disciplined is to resist your short-term emotional whims in service of your long-term goals. Let everlasting love triumph over the temptress of temporary hate. Read here
Did you choose your mutual funds based on the ranking of a particular platform? – But is the rating/ranking a sufficient measure to select your funds? Largely yes, but it is good to be aware of how these rankings work and what are we missing when we use these rankings. Read here
Investing
Masterclass in Factor Investing: Quant – From Fundamental Practitioner Lens – Man + Machine can be better than Machine or Man. Watch here
How to evaluate PSU companies? – PPFAS Mutual Fund CIO, Rajeev Thakkar walks us through various aspects while studying government-owned businesses in India. Watch here
Continue investing in Duration – DSP MF says yields have fallen, yet there is a long way to go. The cut cycle has just begun. Read here
The role of REITs in asset allocation – REITs offer an expanded opportunity set, providing diversified sector exposures at smaller capital outlays. REITs allow for efficient and timely capital deployment, to both complement and temporarily substitute private real estate. Read here.
Economy
India Races to Get Rich Before It Gets Old as Population Passes China – Bloomberg Economics says India needs to advance on four broad fronts — urbanization, infrastructure, up-skilling and broadening its labor force, and boosting manufacturing — to fully cash in on its demographic dividend and reshape the global economy in the process. Read here
Why Researchers differ on India’s poverty rate- All [research papers] show that poverty has plummeted after the economic reforms of 1991 that helped accelerate GDP growth. Clearly fast growth is the best poverty alleviator. Read here
States dragging feet on capex despite funds– A push by the Centre notwithstanding, states continue to tread slowly in terms of capital expenditure, with 24 large states spending only 55.1% of their 2022-23 (Apr-Mar) Budget target as of February-end. Read here
Is US banking crisis really over? – Currently, capital is fleeing the banking system, exacerbating the liquidity problem and causing even more problems for the banking sector. Read here
**** 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.
