Money Mantra Magazine asked me to share my views on her portfolio & I loved this. I am sharing what actually I advised – you can also share your ideas. I was having some word limit & few other limits 😉 but you don’t have any restriction.
Pratibha Patil’s Assets
My advice to President Pratibha Patil
Pratibha Patil was Governor of Rajasthan before being elected as President of India. As I also belong to Rajasthan, we have noticed her simplicity as a Governor – even as a President, she has been the same. Her simplicity also reflects in her portfolio, which matches a portfolio of average Indian – 30-40% in real estate, 40-50% in debt, 10-15% in gold and almost zero equity.
Let me simplify Assets
|Immovable||Amount||Amount in lakhs||Percentage|
|House at Amarvati|
|Cash in hand|
Recently many politicians and bureaucrats have shared their assets, either voluntarily or by force but most of them had no exposure to equity. Even Mr P Chidambaram, our ex-finance minister, promoted equity as an asset class on various platforms but he had negligible equity exposure in his portfolio. Even the current finance minister’s biggest asset is his residential house and again no equity. When these people advocate that India is a great growth story, they should put their money where their mouth is. Nevertheless, they shy away from putting their own money in equities. I think this question will remain forever unanswered.
I have assumed that President Pratibha Patil will leave her post next year and will not contest for second term. Points that she should think over:
- Her retirement is still a year away so she should not keep so much of money in savings bank account. Thanks to such a high inflation, the value of this amount is eroding rather than increasing.
- Prima facie, her risk appetite looks low but if we talk about her retirement benefits, she may not actually need to touch most of her current corpus. Therefore, her investment should depend on the beneficiaries’ profile rather than her own.
- If she wants to do some social activity after retirement she should make an irrevocable trust – which will actually reduce her tax liability and the money can be maintained in a separate compartment.
- Good part about her real estate is that it is not in shape of House – she is having some agriculture land. Most of it in Jalgaon and around– Jalgaon is famous for drip farming and even if the farm’s size is small, it can give better yield. If she does not want to get involved in day-to-day work, she can give this on contract.
Pratibha Patil gave almost 45-50 years of her life to our nation – with having a vision to see India as one of the greatest nations. Now the whole world is seeing India as an upcoming power – she should sit back and enjoy her remaining life. Moreover, she should always keep guiding & motivating people of this nation.
I will love to see your advice to the President. 🙂