Investing Like An Indian Politician
January 2, 2016 3 Comments
The one thing career politicians in India know is that income often comes in fits and starts and there is a need to provide for necessities and expenses in the meantime.
Here’s what a lot of them will do.
1.FDs in the name of every family member not qualifying to fall in the tax-net. That way some regular income for necessary expenses is always generated.
2.Land: Invest in land in appreciating location.Agricultural land purchased on any national highway at distance of 15 to 25 kms from the city centre of big cities have tended to double in 2-3 years and so make excellent main appreciating assets .Take up agriculture yourself or let out the land to other farmers for rent .So your income will be tax free and the underlying asset will appreciate as well. Regularly sell land on appreciation and move away further to grow capital. Urban land too works but community activities on it are not tax free.
3.Shares: Buy shares of the Nifty50 at yearly lows. Enjoy tax-free dividends. Book profits regularly to generate more income.
4.Acquire a fully paid-up home.
For investors who know nothing much about investment and don’t want to know and/or are not too skilled at it, the above is a pretty good strategy. The greatest improvement I can see is in the stock investing bit. I don’t see much common sense in some of the scripts selected, other than that the company is well known and the stocks widely traded. All the reliance in astrological advice makes it look like people hoping to wing it on a hope and prayer.