Published on: December 15, 2023
Indian culture had a conservative approach to investments in gold and real estate in the pre-millennium era.
Gold as jewellery or coins has been a first choice of investments from your Diwali bonuses or a savings as an individual plan for their child’s marriage since toddlers – which means they are planning their investments 20-25 years in advance.
Clicking the button on my smartwatch and we are right in 2023. In the last month you might have received your Diwali bonuses, where have you invested?
I too received my bonus and casually asked my dad, when you were in your late 30s and you had handsome money in hand, where would you invest?
He is now 73 and taking him 35 years back – his answer was simple, I had to buy the house as it was a necessity and if I had spare amount, I would invest in business. Isn’t it a typical gujju mindset? 🙂
But if I ask someone in 2023, his first choice would be Equities or Real Estate. What is yours?
Comparing the mindset three decades ago and today, I can certainly say – Indian culture has evolved from a conservative approach to an aggressive approach.
Looking at the performance of Nifty, I remembered a quote of Edith Paif, “When you reach at the top, send down the elevators for others.”
It seems Nifty is sending elevators for the Dow Jones everytime it hits new high and finally, Dow Jones at an all time high.
Should you book profits in Equities and move your investments to Real Estate?
Swapping your investments is always a great idea when you feel that the risk associated is high.
As equities are booming since the recovery from covid, they are unstoppable – esp. Midcap and Smallcap stocks.
Investors are constantly tracking Nifty or Sensex as their prices are handy and also they are the talk of the town.
Nifty Monthly Chart:
The glance at the chart says it all – What a Rally!
The trend has been bullish with a couple of turbulences in 2008 and 2020 but considering the long term, I must say – acche din are there with equity investments.
Are you still planning to swap from Equities to Real Estate?
Emotionally, even I don’t wish to swap but considering the risk, practical thinking is a must.
Before I make a decision to swap, I must understand the risk parameters between equities and real estate.
As the risk is higher for equities due to its high price, let us look at the price of Real Estate prices too.
India Housing Prices:
The above chart highlights the housing prices are in a consolidation zone since the end of 2022 after a steep rise in 2021-2022.
The consolidation phase may not be an end but a time for accumulation.
Considering the swapping, I would at least take 10% profits off the table from equities and swap into real estate.
What is your investment plan for 2024?
