The Indian cricket team doesn’t just bank on one player; they strategize and allocate roles to multiple players for a match-winning performance. Similarly, with ₹50 crore in hand, you’ve got to have a powerful team to play on the financial field. How you deploy each “player” can determine the kind of financial legacy you create.
- Immediate Financial Health Check: First, ensure all immediate financial obligations and liabilities are taken care of. Clear any debts, set aside an emergency fund, and ensure you have the right insurance coverage. This May sound basic but does help regardless of how big your corpus is.
- Diversified Portfolio Creation: The key to growing wealth is not just about picking the right investments, but ensuring they’re diversified. A blend of equities, bonds, gold, and fixed income can provide a balance between risk and reward. Remember the Roots and Wings philosophy? Consider companies with strong balance sheets (Roots) and those that showcase consistent growth (Wings).
- Real Estate: A portion can be allocated to real estate, considering the capital appreciation and rental yield. But ensure it’s not the dominant part of your portfolio. Warren Buffett, the investment maestro, once said, “Do not put all eggs in one basket.”
- Mutual Funds and Portfolio Management Services (PMS): Depending on your risk appetite, investing in mutual funds or a PMS can provide professional management of your assets. They keep tabs on market trends, ensuring your wealth grows. An experienced SEBI Registered Investment Advisor can guide you in choosing the right funds.
- Global Diversification: Don’t limit yourself to India. With the kind of capital you possess, consider global mutual funds or international equities to diversify across geographies.
- Philanthropy and Impact Investing: With great wealth comes the opportunity to make a significant impact. Consider allocating a portion to causes you believe in or to impact investing, where you can both get a return and create social change.
- Tax Planning: A substantial amount means you need efficient tax planning. Engage with a tax consultant to ensure you’re not just earning but also retaining and growing your wealth optimally.
- Stay Updated and Review: Like how the Indian cricket team captain reviews team performance, it’s essential to review your investments regularly. And if you ever feel overwhelmed, remember the advice of the iconic Indian investor, Rakesh Jhunjhunwala, “Respect the market. Have an open mind.”
To sum up, having ₹50 crore is a golden ticket to not just secure your future but also leave a lasting legacy. You might find it valuable to collaborate with a team, like Jama Wealth’s PMS services and associate investment advisory services, that can help you navigate this journey effectively.
