Have you started investing?
I have realized that money is not something that you can keep with yourself. You’ve to make use of it. We are moving from a nation of shopkeepers to entrepreneurs. A shopkeeper just builds wealth for himself whereas an entrepreneur builds wealth for everybody. As an entrepreneur, I do invest in ventures which may be risky. We don’t invest in in FDs or keep large sums in bank saving account. We invest in angel funds, VC funds, and private equity funds which are mushrooming everywhere. I would like to see a relationship manager who understands all this. I was dealing with a RM of a foreign bank but after two years, he moved into other institution. Relationship managers lack transparency.
Will you seek professional advice in future?
There is no substitute for professional advice. But these professionals have to be more knowledgeable than the consumers. The bar needs to be raised. I will value their advice only when they prove themselves correct.
Are you satisfied with your advisors?
I haven’t come across any such advisor so far. They are only selling products. The problem is that RMs and private banking firms do not understand the need of their customers. Very often, they are just pushing products to meet their targets.
‘Investing in real estate can give you better returns’
Jayant Vaidya, Partner at D.R Vaidya & Co, shares his experience on why he prefers real estate sector than other asset classes.
How did you start investing?
I started my practice from the scratch so in the initial stage investments were out of question. But later on I started investing in FDs and government securities.
So when did you start diversifying?
I started practicing in 1976 when the cost of real estate was very low. I realized that there is a lot of potential in the real estate sector. Apart from real estate, around 10-15% of my earnings were always invested in other products like mutual funds.
Who advised you to diversify?
This happened through my CA. I am not from the finance sector and not well-versed with finance. So, I trusted my CA and made investments.
What are your plans for retirement planning?
Although I’m close to what is considered retirement age, I’m very much involved in my business. So, I’m not planning to retire. Also, I know this sector very well and therefore I still invest in real estate. I feel investments in real estate can give you better results.
What is your opinion about the developments in the real estate sector?
In the recent years there have been a lot of unethical practices. We have been in constant touch with the government to resolve these issues.
From an investment perspective, there are many investment opportunities in real estate but you need to choose the right option according to your needs.
