Where to park your money?

The equity market continues to see-saw in wild abandon and the number of investment avenues capable of generating good returns are declining. At this time, where are the rich and the super-rich parking their money?

While there is absence of a readymade solution even for the rich, it is worth knowing what the Portfolio Management Services advice their high net worth clients. As they say, the game never changes, the game plan changes.

With the Indian economy intact with its Economic Growth rate ranging between 7-8 percent and corporate earnigs growing at 15-16 percent,
Equity clearly remains a strong long term play. Portfolio management gurus advice investors to stay invested for three to five years to see their money grow.

Nowadays, the wealthy are willing to participate in the growth story, but not by putting the capital at risk. With interest rates heading up, conventional Debt products are coming back in the limelight.

With cash strapped banks offering attractive rates, also back in limelight are the Bank Fixed Deposits.

For decades, Real Estate has been the most looked up in the investment category. Now, with SEBI (Securities and Exchange Board of India) approving Real Estate Investment Trusts (REIT’s) the avenue is poised to expand further.

In commodities, gold and silver are clearly popular among precious metals. One can make a direct investment or get linked with a commodity fund.

As the markets mature, safety of capital with equity-like returns is fast becoming the common refrain. Futures and Options, Art Funds, Structured and Hybrid products are all coming up well.

While portfolio designing depend strongly on individual risk appetite and there is no one-size-fits-all strategy to making money, tracking, however, remains the chief concern. One has to take portfolio decisions based not just on best returns but also on time they have to monitor portfolio for.