Therefore, it makes no mathematical sense. Rental yields in cities like Mumbai, Delhi and Bangalore are just 2-3%. We own the house we live in, but beyond that, I honestly don’t think I can make a rational case for owning residential real estate in India. Thankfully they don’t question me on why Marcellus sold Relaxo Footwears stock, a question, that half of India wants to ask me (he laughed). Since we are humans, they are also worried when investments do not fare well.īut the discussions are more around what we are trying to achieve over the next 5-10 years, and whether we are in a position to finance the goals. I have financial discussions once a year with my wife and a separate discussion with my parents (retired couple who also invest in Marcellus equity portfolio). My parents, my family and Marcellus’ 9,000 clients are invested in these stocks through Marcellus’ portfolios. If anybody reading this piece has a better way to finance their long-term goals than buying, HDFC Bank, Bajaj Finance, Kotak Bank, Titan, Asian Paints, TCS, Pidilite, Divis Labs, etc., please let me know. Investors who tend to run away from risk in India are not doing themselves or their families a favour. If you want to do the best for your family, I think you have to take a degree of risk. ![]() But ups and downs in portfolio value are part and parcel of equity investing. And it is to finance my children’s education. I’m as interested as anybody else in Marcellus’s performance because my entire life savings are in it. In the last few years, Marcellus’s funds struggled to beat benchmarks. It is interesting that in the current year, I have actually given up a part of my salary to get more Esops (employee stock ownership plan) in the company, as I want to have a bigger stake in the firm. I exclude them from my investments because their valuation could overshadow our public market equity portfolio.įurthermore, we do not have any plans to sell them for several decades. My shares in Marcellus are unlisted and illiquid. ![]() Barring this equity investment and the 10% debt for emergency, the rest of our savings were pumped into Marcellus’s balance sheet in 2018 to incorporate the business. That equity part is being managed by Marcellus. When Marcellus was incorporated, my wife and I decided to have enough equity to see our kids through university-the costs which we will incur in the next 5-6 years. It is almost entirely invested in American and European stocks, which gives the portfolio a nice hedge, but it was created unwittingly (when the rupee depreciates, and investments in India underperform, our overseas investments do better). Yes, we have 20% of our equity portfolio in overseas equities. So, does your investment in index funds takes care of international exposure to your portfolio? In 2004, when I became an equity analyst, I started investing in active funds. It continues to compound at a decent rate. The company had a corporate pension plan managed by a British index fund provider. In the initial days of my career, I was with tech and consulting firm Accenture, in the UK. You have been an active portfolio manager. Third, and most importantly, I cannot touch the corpus till my retirement age because of the lock-in. In fact, even an index fund may not get such a low fee structure. I also encourage Marcellus employees to contribute to NPS.įirst, I get tax relief for employer’s (Marcellus’s) contribution. ![]() I am an enthusiastic participant in NPS, where I put in money every month. All of the Indian equity portfolio is with Marcellus, with just one exception.
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