Wealth Management

Managing Investments is like managing a group chat...you need to manage it well and prioritize.

We a GrowYou can help you in this journey.

Any guesses which bungalow is this and who owns it ?

You are right. It's the Mannat house (bungalow) - one of the most expensive celebrity home and a symbol of opulence and luxury, owned by the Bollywood Superstar - Shahrukh Khan and his wife Gauri Khan.

If you aren't aware of it's history, Let me share it with you...

The Mannat house located at Land’s End, Bandstand, Bandra (West), Mumbai was earlier owned by Gujarati businessman Nariman Dubash and known as Villa Viena.

SRK and Gauri after lot of negotiation with the owner bought this 2446 Sq.m house (26,328-sq ft dwelling area) in 2001 at a price of Rs.13.32 Crores and reconstructed it in the best possible way.

The 6 storey bungalow has a gym, a library, and a private theatre and is today Valued at Rs. 200 crores.

But why am I sharing all this ??

To simply illustrate the difference in Growth Rate of the two Asset classes namely Real Estate and Equity.

Oh Really ?

Any guesses what is the CAGR of this Bungalow assuming zero interest cost, zero reconstruction cost and zero maintainance cost.

It's a decent 13.1 %.

Any idea as to how much would have been the value of this investment had the Rs. 13.32 Cr invested in a decent Equity Mutual Fund instead of the Mannat house ?

It would have been well over 900 Crores.

Yes, you read it right.

It would have been Rs. 909 Cores with a CAGR of 21.15% had SRK invested in HDFC Flexicap Fund.

For your information this Fund isn't the best performing equity Fund but one of the decent performing funds incepted more than 20 years ago.

Hope you have got the message from this real life case study which is :

In the long run, Equity Mutual Funds are :

✅️ Far more rewarding than any real estate investment

✅️ Much more convenient to manage

✅️ Most Tax-efficient as compared to any other Asset class

✅️ Most Liquid and Transparent

✅️ Most Flexible and can be bought even by a common man with Min investment as low as Rs. 1000/- pm ( SIP mode)

✅️ The Annualized Returns remain the same irrespective of the size of the investments.

Thanks for reading till the end 😊!!!