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CM Team, Capitalmind's research team.

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Saturday Coffee, What we are Reading

What does the "🔆 Saturday Coffee Newsletter" section say?

Market Overview: Top Indices & Asset Classes Good Reads: 5 good reads on investing & finance On Point: Never ending troubles at BYJU'S! Pop Quiz: Answer and win a cool prize!

[Newsletter]: Never ending suffering of BYJU'S, Market Overview & 5 Good Reads

Market Overview: Top Indices & Asset Classes
Good Reads: 5 good reads on investing & finance
On Point: Never ending troubles at BYJU’S!
Pop Quiz: Answer and win a cool prize!

What’s up with markets? 📉📈

Everything suffered this week including Nifty 50, S&P 500, Gold & Silver while USDINR held still at 82.

NSE 500 was down only 1% this week and every sectoral index was in red except financial services. We’ve marked the best performing indices for the given periods in green.

Never ending troubles at BYJU’S 🚀

BYJU’S courses are super expensive, which often encourages parents to take loans from its partner banks and NBFCs. BYJU’S used to offer a guarantee that it would cover the payment if the parents failed to repay the loan (a.k.a First Loan Default Guarantee).

However, in Feb 2023, the RBI said FDLG cannot be done with non-regulated entities like Fintechs, P2P lenders etc.

With banks and NBFCs no longer willing to extend loans, BYJU’S decided to lend to its own customers.

But there’s a catch: Let’s ay, BYJU’S lends 1.2 lakhs to a parent to purchase a course, to be repaid in 12 equal instalments.

BYJU’S would then recognise the entire 1.2 lakhs as revenue. It’s like taking money from one pocket and putting it in another. “Is it even valid?” you ask. This question is on everyone’s mind, including BYJU’S auditor, Deloitte.

Deloitte has resigned as the auditor of BYJU’S, stating that the company has not resolved audit report modifications from FY 2021.

What we are reading 📝

What is the Total Expense Ratio (TER) of a mutual fund, and what does it include and exclude? Listen In: What Lies Behind Mutual Fund Expense Ratios: SEBI’s Call for Transparency in TERs - Capitalmind
We tend to believe in things that confirm what we already believe and that give us hope in desperate times, rather than relying on facts or reason. Read: Why You Believe The Things You Do
When the public is gloomy, equities usually thrive. Read: Consumer Sentiment Is Low—That’s a Good Sign for Stocks
Create, capture, compound, avoid catastrophe and over-consumption. Read: A Simple Framework for Wealth
Here are 23 lessons about money that will help you avoid common investing pitfalls and grow your wealth. Read: 23 lessons about money and investing

Pop Quiz 🙋‍♂️

Identify the company.

It was founded in 1906 in Delhi by Hakeem Hafiz Abdul Majeed and Ansarullah Tabani, a Unani practitioner. The name of the company means “companion in suffering” in Urdu language.

Name this famous company with iconic brands that have recall even today.

Identify the company.

Hit reply to this email and answer.

Each week, we randomly pick one winner who gets something cool!

Last week’s winner: Rajashri Kabre

Last week’s answer: Amul

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