Think Big & Long
I'm sure everyone in the world think about savings and investments but there is always a tendency for the people to think about short term gains. I won't say it is bad if the gains we are making are really based on need. But with sound justifications & analysis, we sure can reap greater benefits if we are thinking about longer terms.
When we think about say Fixed Deposits in India, ICICI bank is giving as much as 10% ROI and that too for Senior Citizens for a period of 390 days. I wrote about NFO's in Mutual Funds. Is it the same scenario? After say an year of investment in a NFO for Rs. 10/- per unit, are you going to be satisfied with Rs. 12 per unit where you feel you have made 20% returns against a 10% return in Term deposits.
So, why not we start thinking big? How about a 1500% to 2000% returns after say a period of 10 years? Everyone knows that the markets are a bit risky, with a sound base risks will give good returns. Instead of just stopping at term deposits, a real-estate investment and that too on a loan for say 15 years, we should start allocating our funds for longer terms making sure that we can get greater benefits than a mere 15% or so.
I guess, we have lots of lessons to learn from all those investors who would have put their funds in say Infosys long long ago and have waited for such a long time to become crorepati's. Market is like a river - Just make sure you take water out of it when there is surplus.
3 comments:
I think "investment" in real estates must be banned - more so when there are millions homeless! People who have money "invest" in real estates, prices shoot up because of an increasing demand, have-nots are worse off (leave alone situations in which land is snatched from these people in the name of development!).
Visualize the following scenario - There's drought or famine, hence dearth of food (rice, say) - If i buy loads of rice, wait for prices to go up and then sell it!! Yes, people go without food! So what, i've made a good investment eh??!! Real-estate-investment is no different!
Well... buying a home to stay is a different thing altogether (Sometimes, buying another home or land as a result of planning for the future can be pardoned as well - i don't mean as an investment but something like "i cannot afford a big house now but would want more space when i have kids. Hence i buy a small apartment now and buy some land so as to build a bigger house when i can afford". Similarly, one can list out many more pardonable situations - such as "i'm in city A and buy a house there. I get transferred to B". Even in these situations, if one so wills, one can "consume" even less and be good to the world. Anyway, if the intent is investment then i think it's plain wrong! Unpardonable!
One of the best helps we can do to our society is avoid consuming more than necessary, i think! (Well... one can say "necessity" is relative and the argument goes on... I would say balancing one's wants with social responsibility is one direction to a feasible solution. Again, "balance" introduces relativity...)
My last post was "in addition to" your reason for not investing in real-estates. In addition, your reason was that instead of taking a 15-year loan and investing in real-estates, one can invest in the markets. I think one mustn't invest in real-estates even if one has liquid cash!
Good thoughts there...
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