CAGRfunds – Blog

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

Index	17-Mar-23	10-Mar-23	Change
Nifty 50	17,100	17,412	-1.79%
Nifty 500	14,421	14,679	-1.76%
Nifty Midcap 50	8,488	8,627	-1.61%
Nifty Smallcap 100	9,095	9,326	-2.48%

Chart of the week

Gyaan Ki Baat

The goal of an emergency fund is to cover emergencies and not generate higher returns. The fund helps you immensely to meet unplanned/unforeseen expenses without dipping into your long-term investments. Ideally, you can target 6-12 months of your expenses in emergency fund. An emergency fund is an investment allocation which should be liquid and accessible at any time.

If you are young or do not have lump sum allocation immediately you can build it via SIP (Systematic Investment Plan).

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

Personal Finance

• Mutual fund Ki Baat – In our journey as wealth managers over the last 8 years, slowly but steadily we have refined and codified our process to select Mutual funds. Read about our analysis of Mirae Emerging Bluechip fund through our checklist.  Read here.

• Continue investing in duration – DSP MF – At this time, risks to yields rising are limited. We believe we are close to peak yields; thus risk/reward gravitates towards a long duration position. Read here.

• India govt unlikely to roll back tax plan on high-value life insurance-sources – The government will, however, consider allowing these investments to be adjusted for inflation, also known as ‘indexation’, the official added. Read here.

Investing

• The Echoes Haunting Big Tech – If the past is a guide, tech faces a long, bumpy road to recovery. Read here.

• Masterclass on Factor Investing – All about factors, why they exist? Why they persist? How to analyze them? How to trade them etc. Watch here

•  86% of the people around the world have a snack every day – In this video, Raj Mehta gives an overview of the packaged foods industry of India as well as globally. He talks about various sub categories as well as the major players & their strategies. Watch here

• Wait for a price, not a time – The best we can do is to ensure a prudent buy-price, but not hesitate to act once it is breached. Waiting for a price means looking stupid, waiting for a time means being stupid. Read here.

Economy

• Bank credit to industry slumps – Credit to industry by scheduled commercial banks (SCBs) has fallen quite sharply between November 2022 to January 2023. This is in sharp contrast to the strong expansion in credit offtake by industry in the preceding four months. Read here.

• Credit Suisse thrown $54 billion lifeline in rush to ward off global bank crisis – Credit Suisse is the first major global bank to be thrown an emergency lifeline since the 2008 financial crisis  Read here

• Indian industries stock up on coal before summer crunch arrives – Industries in India, including metals producers and paper makers, are stockpiling coal to avert shortages during the summer, when heat-waves are expected to drive consumption of the country’s main power generation fuel. Read here

CAGR Speak

• Investment in insurance policies is tax free if invested before 31st March 2023. Should you buy one? Let Shruti help you decide. – 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’d 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	10-Mar-23	03-Mar-23	Change (%)
Nifty 50	17412	17594	-0.01
Nifty 500	14679	14774	-0.01
Nifty Midcap 50	8627	8623	0.00
Nifty Smallcap 100	9326	9337	0.00

Gyaan Ki Baat

A gilt fund is essentially a mutual fund that invests the money pooled from different investors into fixed income government securities.

By investing in gilt funds, you can essentially gain access and exposure to government securities. The government securities that the gilt funds invest in are free from default risk. The sovereign guarantees the repayment, which makes these funds one of the best options for risk averse individuals. Also, these funds tend to offer better interest rates compared to banks.

But investors need to keep in mind that the issuer being government only means that there is no credit risk and liquidity risk, the funds will still have interest rate risk. The fund value will vary with interest rate movement.

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

Personal Finance

• India’s crypto Industry is imploding – Trading volumes across Indian cryptocurrency exchanges fell by around 70% after this tax regime was announced. Read here.

• The biggest fraud in German History  – As a bank with no branches, Wirecard kept cash in a safe at the office, and sometimes distributed it to business partners, in sums in the hundreds of thousands of euros, by hiding it in grocery bags. Read here.

• Interest rates and Market Timing – In the short-run stocks can rip your heart out. I don’t know if the bear market is over or if we are in for more carnage. But over the long-run the stock market remains the best bet for beating inflation and compounding your wealth. Read here.

Investing

• Must Read – Unorganized sector seems to be striking back with vengeance – Multiple companies indicated increased competition from unorganized sector in this quarter. One possible reason for this resurgence could be the sharp decline in commodity prices which may be providing a fresh lease of life for the unorganized players. Read here.

• Valuations of Indian equity have normalized – India’s total market cap to GDP is now trading at 92%. FY21, the Buffett Indicator, named after legendary investor Warren Buffett, stood at 104% while in FY22 the figure stood at 112%. However, the indicator remains much above its long-term average of about 79%. Read here.

• The Revolution in medicine supply – Remember how Micro Labs, which makes Dolo, ran into trouble last year? The company was accused of doling out freebies worth a whopping ₹1,000 crores to doctors. Just to get them to recommend Dolo. Read here

• How does Amazon’s Choice work – The whole idea of Amazon’s Choice—to make it easy for consumers to buy something they say they want—sometimes has more problematic outcomes. Read here

• Youtube has created a multimillion-dollar dubbing economy – In the spring of 2021, Farbod Mansorian temporarily moved from his home in Los Angeles to Greenville, North Carolina to pitch one of YouTube’s biggest stars an unexpected idea: taking his act into Spanish Read here

Economy

• Silicon Valley Bank scrambles to reassure clients after 60% stock wipe-out – Thursday’s slump evaporated over $80 billion in stock market value from the 18 banks making up the S&P 500 banks index (.SPXBK), including a $22 billion drop in the value of JPMorgan. Read here.

• India 1Y-10Y yield curve inverts – Market participants said the lack of bond supply by the central government in March has been a major reason for the yields at the longer end to remain capped. Read here

• Why has India’s Power demand surged  – Surging power demand in India poses a challenge for a country where solar power is growing rapidly but generation capacity is stretched when the sun goes down. Read here

CAGR Speak

• Women x Money is not a very common relationship – 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’d 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	13-Jan-23	06-Jan-23	Change (%)
Nifty 50	17,594	17,465	-0.15
Nifty 500	14,774	14,630	-0.41
Nifty Midcap 50	8,623	8,476	0.10
Nifty Smallcap 100	9,337	9,221	-1.00

Bazaar Ki Baat

Markets in Feb, Q3 Earnings and Should you opt for Higher Pension or EPF? And a lot more in this month’s edition of “Bazaar ki baat”. Watch here

Gyaan Ki Baat

Importance of Health Insurance – Health Insurance is an important component of financial Planning, and it can be a lifesaver in case of unexpected medical emergencies. Health Insurance plans provide individuals with financial protection and help to manage the rising cost of healthcare.

Health insurance plans provide coverage for preventive care, such as annual check-ups and screenings which can help individuals maintain their health and prevent serious medical conditions.

Some of health insurance plans have deductibles and co-payments, which are the amounts individuals pay out-of- pockets before the insurance coverage kicks in. However, these costs are generally much lower than the actual cost of medical care, which can be expensive without insurance.

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

Personal Finance

• PMS vs MF –  We have a SPIVA report for mutual funds, but what about PMS? Using data from PMS Bazaar, Mint has done a similar study. In most categories, less than 50% of PMS strategies beat their corresponding mutual fund category. To that, add the unfavorable taxation(tax on booked profits). Read here.

• The Jadugar Trade at Axis MF – The Securities and Exchange Board of India (Sebi) took time to come out with is first set of actions in the Axis Mutual Fund front running matter that saw the fund house sack two of its employees last year in May and the capital market regulator, on Tuesday, barring as many as 21 entities from the stock markets with nearly Rs 30.56 crore of unlawful gains to be impounded. Read here.

• Saving something is better than saving nothing – Initial increases in your wealth savings rate lead to the biggest declines in the amount of time it takes to double your money. Read here.

• Arshad Warsi Banned from Stock Market – SEBI said that promoters of Sadhna Broadcast and Arshad Warsi, along with Youtuber Manish Mishra, recommended investors to buy the company shares, inflating its price, and later dumped it, thus undertaking stock manipulation. Read here.

Investing

• How companies fudge operating cash flow? – Read the twitter thread here.

• How does Paytm make money? – Just to summarise, payment services acts as a low-cost acquisition channel and the high frequency use case drives engagement, high retention rates and leads to powerful consumer stickiness. This builds Paytm’s powerful user base. Read here

• Airtel would be a complex saviour for Paytm – Indian tycoon Sunil Mittal, founder of telecoms company Bharti Airtel, is seeking a stake in Paytm by merging his financial services unit into the fintech giant’s payments bank, Bloomberg reported. Read here

• What’s wrong with Anil Agarwal’s Vedanta Group?– The mining giant Vedanta Group is grabbing the attention for all the wrong reasons, especially after the Adani Group fiasco has come to the fore. Read here

Economy

• India December quarter GDP growth stronger than data suggests – The apparent slowdown in India’s GDP growth in the October-December quarter has been driven to a large extent by revisions to past data. Read here

• Inflation vs. the economy: Recent reports defy expectations for both – Invesco MF – I don’t expect actual tightening to be dramatically higher than what was expected back in January. Ultimately, I expect inflation to moderate and the Fed to end its tightening cycle, creating an improved backdrop for risk assets. Read here

CAGR Speak

• There has been so much talk about the option of higher pension scheme of EPFO. Should you opt-in?. Read here.

• Low Equity Allocation in India as compared to US.  Read the LinkedIn post 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’d 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.