1)Film actor Rajesh Khanna bought a bungalow in iconic Carter Rd in Mumbai for Rs 3.5 lakhs in 1970. His heirs sold it recently(2014) for Rs 85 Crores. The property had multiplied by 2428 times or an annualised return of 19.38% over 44 years !!
2)Samudhra Mahal in Mumbai is another expensive property.. A flat purchased in 1970 at Rs.700 per Sq Ft was sold at Rs 1.18 Lac per Sq Ft in 2013.. Money multiplied by 168 times in 43 years.. This works out to annualised return of 12.66% !!
3)In 1963.. Godrej paid Rs 1 Lac to buy his 1st house.. a 2916 Sq Feet apartment at Usha Kiran.. Carmicheal Rd in tony South Mumbai.. In 2011 he sold it for Rs 25 Crores. Money multiplied by 2500 times over 48 years or an annualised return of 17.70% !!
4)In Dalal Street, Mumbai a Sq Ft was Rs 100 in 1980.. After 34(2014) years it sells at Rs 27k per Sq Ft.. Money multiplied by 270 times in 33 years.. This works out to annualised return of 17.90% !!
The first three properties can be bought & owned by Cream or Elite of the society who are worth at least Tens of Crores. mostly hundreds of Crores!
The last property in Dalal street, your father could have bought with whatever money available at his disposal. One can buy it even now. Your son or daughter would be able to buy it even 20 years down the line!
And today(June 2021) its around 52500 after 41 years 525 times and still works at annualised returns of 17%!!
(In Mar 2020 at lower level it was around 25000 and still rate comes @15%p.a.)
The last property is Sensex.. A Sq. Feet is a Metaphor for one unit.. If dividend yield is also included (Assuming 2% CAGR..) Sensex would have delivered 20% annualised returns over last 34 years.. higher than the most Expensive Prime properties in the country !!
Good Mutual funds & many stocks have delivered far far superior returns to Sensex itself !!
"Power Of Equity ls Least Understood ln lndia."
If we can withstand notional loss (if you don’t book..) in portfolio during volatile or bear markets & don't worry about daily price movements.. it's easily possible to make much much better money than what any Real Estate or may be any other asset can offer !!
Time to give at least same/higher importance to Equity as you give to Real Estate !!
We don’t mind holding Real Estate for 20 to 30 years.....or for generations. Please do the same for Equity ignoring Bull & Bear markets or notional profits & losses !!
Many of us have been investing in Equity for many years.. Stay the course for at least another 15 to 20 years ignoring market fluctuations.. You would be Amazed at the Fortune created for your Retirement or to pass on to ur NextGen !!
Invest in equity as ur 2nd/3rd child..God Forbid even if ur children lets you down "Equity.." won't !!
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