Do you want to master the art of successful investing, its pretty simple – look at the investment strategy of successful people.
For starters we will give you a snapshot of where leaders from a wide variety of industries ranging from Private Equity, Jewellery, Legal Advisory, Iron Ore, Auto components & Advertising are investing:
Some patterns emerge from their investment strategy:
- Entrepreneurs invest into equity of own business (check what Surinder Kapur & Kalyanaraman does).
- Average investment in real estate for all of them is greater than 30%.
- Professionals from investment industry allocate a larger share of money into equities & angel investments.
- Highest single category allocation are by Nishit Desai a top national level legal advisor – 70% in real estate and Piyush Pandey allocating 60% into FD&Bonds (a safe avenue).
- Gold as a category of investment is not preferred.
When you plan your investment strategy let it be Rs. 3 lac or Rs. 3 crore have a strategy and ensure it is suitable for you. From a long term perspective invest into:
- real estate (lower liquidity but good long term appreciation). Make use of the subvention options, plot investments and fast growing corridors. Remember this investment needs only diligence before investing.
- Equities (volatile but long term appreciation). Invest into companies engaged in sectors expected to grow in the next decade and also good quality management. Remember one has to keep on monitoring equity investments regularly.
- Creating a safety net. Have a good medical & life cover. If you are an entrepreneur go for a term cover.
- Maintaining a minimum liquidity for emergencies.