Real estate investors are developing a taste and Dalal Street is content with retail investors. Prime Minister Narendr Modi and his top 9 minsters have given a miss to the equity market. Ironically the Government is trying to bring in more money into the stock market.
Asset classes, when analysed revealed that Modi and his ministers had a major chunk of assets in RE followed by bank deposits, insurance policies and gold. While the total assets of Modi and his ministers amounted to a staggering Rs 3200 crore, only .06% was allocated to equities.
The Prime Minister, in his portfolio, has allocated 79 per cent of his assets to real estate and 15 per cent to bank deposits, 1 per cent to gold and a big fat zero per cent to equities. This decision is maybe because of the returns Sensex has been giving, which is 5 per cent during the past 2 years.
Rahul Gandhi, the PM’s political opponent, has allocated 14 per cent to real estate, 9 per cent to bonds and only 1 per cent to bank deposits. His short-duration mutual fund investment, has given him an absolute return of 17 per cent in the past five years.
Manohar Parrikar, the defence minister, is the only saving grace for the equity market, with close to 12 per cent allocation to stocks, followed by Ravi Shankar Prasad, who has 6 per cent of his assets in equities.
Within real estate, though, most ministers have fixed assets such as agricultural land or residential property.
Market experts who keep drumming about how equity market always outperforms other asset classes in the long run, could do well to share that wisdom with our Cabinet ministers and the Prime Minister. Although the BJP has come to power as the representative of a new India, the investor in it still belongs to the old school.