By: Rohan Siroya, Partner, Legend Siroya Realtors
Track2Realty Exclusive: For an amateur investor, the ambiguity that lies within today’s investment models can translate to a metaphorical migraine. Simply logging onto an investment portfolio website can present numerous investment options, some of which the masses aren’t even completely aware of.
In this case, we must first bifurcate and simplify our investment ideas; remove any complicated options such as derivatives and fixed deposits (if an investor is simply interested in banking returns to the tune of the 6-7% being advertised on billboards everywhere, this article was never meant for them).
The obvious conclusion will fall upon tangible investments, primarily commodities. Where silver is trading in its own unique way, gold and real estate have universally been more exciting options for investors. Now to begin the trade off between these two titans, we need to focus on our local markets.
Gold has a certain ‘vintage’ quality, that odd feeling of innately trusting into it as a form of investment. And why not? It is a tangible asset an investor can physically see, touch and feel. It has enjoyed an arduously built reputation over the years, even decades for that matter, as the ‘safest’ investment out there.
Now mind you, in business school (for the ones that were paying attention) one of the first thing we learnt was the Risk versus Returns model; the more you risk, the higher your expected returns shall be. So we are a safe investor now; what happens when this always appreciating investment goes in for a bit of a rollercoaster ride worldwide, and people begin to lose their long held out faith in it? Time to get a bit more adventurous?
Being a Mumbaikar, my assumptions are based on the unique market of Mumbai itself. Yet many principles hold true for the investor looking pan India. We are a seriously overpopulated country, with an enormous internal appetite for commodities.
