Where do I invest?
Many people have been asking me this question…’You say all this…but where do you invest?’.
Well very clearly I invest only in equities. Other than a small amount in debt (which should be say next 4-5 years household expenses) + some money in PPF and planning to open a Senior Citizen Yojana a/c for my parents…it is equity. Mostly direct equities – and the portfolio has been built over a long, long period of time. Like the article on ‘ghee’ that I had written a few months ago….
However there are some S I Ps which are running…2 Hdfc unit linked young star plans (for those haters of unit linked plans here is something to throw brickbats at), and some SIPs in Icici Prudential Discovery, I Pru Dynamic, Hdfc Top 200, Hdfc Equity, Hdfc Prudence, Templeton India Growth fund, Franklin India Bluechip, Templeton India pension plan – largely my parents and wife’s money rather than my money. Most of the funding into these schemes are because of dividends from equities.
Suddenly saw that the SIP return on I pru discovery, Hdfc top 200, Hdfc Equity…are all in the 25% p.a. PLUS…quite a bonus I guess. MY expectation was about 12% – of course these returns have been over the past 3 years. To me this is really theory – my SIPs are older than 3. In fact only TIGF, I pru discovery, and I pru dynamic are still running – maybe for another 12 months. The longer term averages are also far better than being in an index fund. So index funds can wait – in fact got out of a cnx 500 fund when i saw that most of the schemes which had cnx 500 as a benchmark were beating the index and quite nicely!
So here is the answer about where I invest…most of you guys know my equity portfolio anyway 🙂 The best performer in my portfolio is a nice chunk of Coromandel International – the share is now a disproportionately big part of the total portfolio, and making me a little nervous.
Do I not have real estate at all? The answer is yes, I do. Have an office in Fort (funded by Harshad Mehta’s boom), one residential property in Nerul…that is all. Nothing much, but yes both participated in the boom…and will fetch a nice price whenever I need to get rid off. One small investment in Chennai – but not much. Again not liquid…so not much to call as an investment…But yes no investment property except a small stake in a spv…not sure when it will be liquid…
Viswanath
Maybe you can make a another post on where you believe “value” is in today’s market, which sector or stock.
Vikram
Hi Subra , Thanks for sharing and being advisor to lot of young guys like us.
can you please share more info on the “Senior Citizen Yojana a/c” which bank does it related to etc.
Cheers,
-Vikram
Sarang
I do not know who populates Related Articles: for each of your posts. They do not seem to be related quite often. You have referred to your article about ‘Ghee’. I though it should have been listed here. It is not. And I do not see any relation of the articles listed today.
Pradip
“GHEE post” http://www.subramoney.com/2010/06/portfolio-introspection/
damodar
Hi Subra,
Needed info on currency why dollar is weaking against INR. What is the future of this . Any good website to point this info is also appreciated
Thank you
Damodar
Krish
I would like to know whether you take stock of investments as like balance sheet of a company. This would have two components. 1. Investment income 2. Direct income. It does not matter of our income growth. It is ‘expenses’ which runs the show. The true worth could only be found by balance sheet approach whether we are able to generate positive returns or not.
Rajeev
Hi,
I believe in PPF. If the account is started early in life, the 15 years lock in does not become a big issue. there is limited withdrawal facility available. Best part comes after retirement. You will continue to get 8% tax free income. This is an excellent investment for your debt portion of the portfolio. The account can be extended after maturity by 5 years at a time. I have used PPF as my piggy bank many times. Better than selling shares or MF units. Now with the DTC, this is the only tax saving option available.
Regards