Category: CAGR Knowledge Series

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CAGR Insights – 2 Jan 2026

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

Looking Beyond Mutual Funds? Here’s Why SIFs Might Make Sense

Specialised Investment Funds (SIFs) are SEBI-regulated investment options that give fund managers more flexibility than regular mutual funds. Unlike traditional mutual funds that predominantly follow a stock only approach, SIFs employ an active allocation framework and can use tools like derivatives to manage risks.

SIFs are being launched by Mutual Fund AMCs subject to regulations laid down by SEBI. Eligible AMCs are launching the SIFs under a different brand to differentiate the category. Minimum investment size for an SIF is Rs. 10 lakhs.

Why were SIFs launched?

Before SIFs were launched, mutual funds were the only investment avenue for the masses to invest in equity market. PMS entities have a minimum tranche of Rs. 50L and AIFs have a minimum tranche of Rs. 1Cr.

This rendered the masses incapable of being able to invest smaller chunks of money and at the same time get exposure to nuanced strategies which help them ride both cycles of the market.

SIFs because of their ability to use derivatives, claim to fill this gap. Using select derivative strategies, SIFs aim to benefit from both the upside and the downside of the market. They are in that sense an alternative to a certain category of Cat III AIF, more popularly known as Long – Short AIFs.

Therefore, SIFs were launched to enable mass investors access flexible strategies—like long-short positions and derivatives—while enjoying mutual fund taxation, aiming for better risk-adjusted returns across different market conditions.

What are the different types of SIFs?

Considerations for Investing in SIF’s

  1. Minimum Investment: 10 lakhs
  2. Risk Appetite: Investors should understand that these funds use advanced strategies like long-short positions and tactical allocation, which may carry higher risks than regular mutual funds.
  3. Dependence on fund manager expertise and execution capabilities.
  4. Use of leverage, derivatives, and short positions introduces strategy-specific risks, including potential for amplified losses and increased volatility.
  5. Aim to seek portfolio diversification into less conventional asset classes and strategies.
  6. Are prepared for longer investment horizons aligned with redemption terms.

Before investing, investors should review their financial goals, risk appetite, and liquidity needs, and consider consulting a SEBI-registered financial advisor.

Ticket Size: Minimum investment is ₹10 lakh aggregate per investor across all SIF strategies in one AMC. SIPs are allowed if cumulative meets this threshold.

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That’s it from our side. Have a great weekend ahead!

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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.

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Bazaar Ki Baat – May 2023

Bazaar Ki Baat is a compilation of monthly market & sector update together with relevant events / occurrences in the economy and personal finance world.

In the 8th edition of “Bazaar ki baat”, we discuss the transformational changes in India over the last decade, Q4FY23 Earnings review, how have the earnings grown across sectors over the years, and Term Insurance – ideal cover and ideal age.

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 market – Transformational decade
for India

• 05:54 – Sector performance – Earnings driven

• 05:54 – How did India Inc. fare in Q4FY23?

• 11:00 – Insights from the Historical earnings performance of
various sectors

• 14:31 – Term Insurance – what is the ideal cover and ideal age of the cover.

In case you have any questions, please put them as comments.

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Bazaar Ki Baat – Apr 2023

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

• 04:55 – Sector performance – Rate sensitives rule

• 07:57 – Investors have the skill to buy, but lack the skill to sell

• 14:27 – How debt funds score over FDs even after the removal of indexation benefits.

In case you have any queries or observations, please put them as comments.

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Things To Know Before Buying A Credit Card

Applying for your first credit card is a huge milestone in your financial journey and can often prove to be a daunting task. Understandably, since there are over a hundred different cards available in the market and very little guidance on how to go about it. 

brown wallet

We believe credit cards are powerful financial tools, if used rationally, that can benefit you in multiple different ways and help build a strong credit history as well. If this is your first time applying for a credit card, let us be your voice of reason and take you through some of the things that you must know before applying for one.

  • Different types of credit cards 

There is a whole list of credit cards that one needs to be aware of before purchase. From beginner level credit cards to travel credit cards, here are some of the credit cards available in India: Basic Credit Cards (given to entry level customers) Secure Credit Cards (for those who have a poor credit history)No Annual Fee Credit Cards (does not levy an annual fee for the usage of the credit card) Low-Interest Credit Cards (those that offer a lower interest rate as compared to the other cards from a similar category) Balance Transfer Credit Cards (low-interest rate for a specified period of time) Rewards Credit Cards (offers some kind of rewards for every rupee you spend with the card) Cashback Credit Cards ( offer a certain percentage of the purchase amount) Travel Credit Cards (offers benefits such as travel insurance, global acceptance, favourable currency conversion rates) Entertainment Credit Cards (provide discounts and offers on entertainment-related spends)Premium Credit Cards (for high income individuals) and much more. 

  • Rate of Interest 

Interest rate is of the main reasons that banks issue credit cards. The interest rate on a credit card is usually higher than that on loans. Credit cards follow the daily compounding interest rate which is based on the Annual Percentage Rate (APR). Based on the type of card you choose you’ll find yourself paying either a fixed or a variable interest rate. 

  • Interest-free period 

An interest-free period is a duration from the date of the transaction to the payment due date, something that is offered by most credit cards. If the full payment is made within this period then there is nothing extra that you have to pay to the bank. However, payment post this interest-free period comes with an applicable interest fee which is usually on the higher side. It’s advisable to make the entire payment within this period to avoid any extra fees. 

  • Fees and charges 

This is probably considered one of the most important elements of a credit card agreement. Fees and charges help you determine how much you will be paying for the card, withdrawing cash from the ATM, or upon failing to make the payments. Some of the important fees to know about : annual fee, late payment fee, over-the-limit fee, cash advance fee, balance transfer fee and foreign transaction fee. These fees again differ based on the card issuer so it is important to have a clear understanding of these before proceeding with the application. 

  • Minimum payment 

As part of the credit card agreement with your bank and the transactions against your card, you will be required to either make the full payment or the minimum payment that has been agreed upon. The minimum payment is calculated against the interest amount with one percent principle or on a certain percentage of your current balance. This calculation differs based on the card issuer and hence it is important to understand how your card issuer is going to calculate it. 

  • Credit limit 

The maximum amount that you are eligible to borrow is known as the credit limit. This credit limit is set by your issuer based on your qualifications and eligibility criteria. Be mindful about not reaching or getting close to the credit limit since it will then affect your credit utilization ratio which in turn can damage your credit score. Credit card issuers generally review your account on a quarterly, half-yearly or annual basis and either increase or decrease your credit limit. 

  • Perks 

A credit card generally brings with it certain rewards like points, cashback offers and other discounts and deals. Most of these perks come as an introductory offer to attract buyers but over time you will end up accumulating points that you can redeem in various forms. Check for the offers that different cards have to offer and analyze which ones are going to be beneficial for you. 

The important things to know do not end with this list but this is the bare minimum that you must know. While selecting a card, you might feel overwhelmed with the different options available but let your spending habits and your real need for a credit card guide you towards choosing the right one for you.  Always remember, everyone’s financial journey is different and what works for someone else might not work for you.