Upi

Investment avenues

Bangalore tech junta, apart from equities/mf, where all do you folks invest your money? Any ideas on real estate? Any pocket which might see a boom in next couple of years?

9mo ago

majboormajdoor

Stealth9mo

Real estate cannot be simple and beat Equity MFs in India. Imagine the scenario of earning 10%+ CAGR over next 10y in Real Estate. Could you imagine how much Equity MFs would yield, definitely 13%+ without any physical efforts.

The drivers from which RE derives value (Infrastructure) would push Equity capitalisations much higher

majboormajdoor

Stealth9mo

I don't mean to dissuade from RE. Invest in RE for diversification, but don't expect it to give highest returns. RE appreciated a lot with the infra development and urban growth in Delhi, Bangalore, Pune, Hyderabad. And we were seeing very high population growth with working age people migrating to metros for better paying jobs.

Any further super appreciation would need more hospitals, more schools, universities, high paying job disctricts and public transport 10X better than today's Mumbai standards in all of these cities. That is very very hard and unlikely.

For Tier 3+ cities, I don't know of any industries that are willing to open up huge. These are unlikely to be magnets for migration.

So RE would not be a multi bagger alpha generator.