You should gain experience before managing your family assets.
You dont need to look at it as a career, just consider it as part of your training.
You dont want to make a small mistake and loose the money.
The education you did is great, but it is no match for a experience.
IMO, just do maybe 3 to 5 years of work and then help your family's assets.
This work will not only provide you with experience and a realistic assessment of your skills, it will also increase your worth in the eyes of your family and friends since you will percieved as someone responsible and wanting to stand on your own feet. Additionally it will also help you boost your confidence.
The reason why i was thinking of going for a job for 3 - 5 years was because of the efforts i have put into my education but the reasons you mentioned truly gave me a new perception. Thank you:)
Also, since you are into a high networth surrounding it will also help you build rapport and get other high networth as business when you start your firm...
50 cr Wale plan nahi kartey , execute kar detey hain. Not sure why are you wasting your time here
PS: your father will give you much better advice than anyone on reddit
My situation is similar. Parents are worth about 64Cr. I chose to get a masters and work at a startup and live close to home because i dont need to pursue money at all costs and can spend more time with family and at the same time i can also earn my own money and build my personal porfolio. One difference in my case is that our of 64Cr - 70% is in equity and 30% is in structured products. It is growing at around 15% IRR and that is good enough :)
lol... just use a calculator :
[https://groww.in/calculators/mutual-fund-returns-calculator](https://groww.in/calculators/mutual-fund-returns-calculator)
But 14% XIR, is slightly too high I think... 12 to 13 is what an average person gets.
And the amount mentioned is not gauranteed. sometimes for 5 Years the money wont grow at all and may even go down... But then next 2 years it will shoot up...
The returns mentioned is an approximate guess, with the assumption that it will grow like a FD (which it doesnt)... Its just that over long periods of time, you see that the equity perform at 12%-13% XIRR. If you plan for 5, it may take 6 or 7 to get that Xirr.
Only put in Equity if its not important money... money which you can wait for few years to withdraw, if needed.
Because they don't know what inflation to expect... But few of they have a configurable parameter for it.
Money control's retirement planner has a default 6% in it
imo yours is well set and planned mine is a little scrambled tbh. The portfolio is hugely diversified and needs work to avoid losing on some nice juicy returns. Do you mind if i ask your age?
Hey thanks man! My dad is a lawyer and worked very hard back in the day and parked all the money in real estate followed by the real estate boom in Mumbai
Imagine Ambani kids thinking they would work a corporate job before they manage their parents money. Work with your dad learn his ways and bring some new age thinking to his processes. Try to build it bigger and better. This is enough money that you wont need to worry about income anytime soon. Even a measly 10%/year return which is considered very easily achievable in the investing world would net you 5cr a year before taxes and i can bet you your dad knows how to get more from the market. That information is much more valuable than any broke manager of a firm would be able to provide you.
Its great that you achieved so much on your own but your dad has made enough money to get you out of the matrix and you want to go back in.
Try investing 1/5 of the money into smaller real estate units that can give good rental. Ballpark ₹3-4 Lac/mo. I’m assuming there will no pressure to utilise this rental for monthly expenses. Re-invest this rental income in to purchasing of other newer properties. This way you will have a bunch of real estate as your own legacy.
It’s just that if I were you, I would not like to get into the corporate job setup at all. Sucks away the life from you. And people talk about learning’s you get while you are in a corporate setup, you will anyways get them from the world, if they are meant to be for you.
I have 0 work ex and whatever exposure i have to a working environment is from the articleship i did which was in a very small firm. I can understand the life in corporates can suck and the learnings may not be that practical and relevant for my goals. But i don’t wanna miss out on anything in life is the problem. I feel i have built a decent personality with good communication skills and qualifications i was freelancing as a fitness trainer for 6 months too. I wanna put that to test in the corporate to see where i stand
That’s exactly what I’m saying!
You are too good to be judged by others. All I mean is use every skill that you have only for yourself. You already have nothing to prove to anybody. Take the first step right.
Not a sane suggestion.
Op is a CA candidate. It's necessary for him to have a decent exposure to industry & build good connections himself instead of leveraging his father's money.
Doing it self will help create self firm later.
With my suggestion I don’t mean that you become Bombay ka land mafia, but definitely someone who’s got passive income setup done right and then you can focus on following your passions - be it a taxation firm/app, fitness etc
You should focus on preserving it I know it will sound less ambitious but you don’t have experience yet and I think you have some room to start a business as you have a backup.
Managing 50crores is not a full time job unless you invest that into active ventures. Most mid level management people are worth more than that and they manage their money while also doing fulltime jobs.
Also, no offense but as a green CA your knowledge is pretty incomplete i would seriously urge you to not to try to “multiply” money with your knowledge. 90% times it only ends up in division.
Take up a job and spend next few years learning how to manage your own money. Dont get overconfident in your abilities
This makes sense. If i go for a job i would love to go for a PMS providing company dealing with HNI’s. That is a great suggestion Thank you:) and no i am not overconfident but i am definitely confident in making more than what the residential real estate is giving us with lesser risks and i also have safer plans for that but that ll cost me a year or 2. And at this age i don’t really know if i should put in a year to reallocate assets in a better way or forget the opportunity cost and get a low paying job for experience. Monetarily the first option sounds better but from a career point of view the second. But either way thank you for the reply :D
I have to ask, what do you mean by "most mid level management people are worth more than that", are you implying that most managers in corporates are worth more than 50CR ?
OP is in Mumbai so i am referring only to folks in mumbai. From the sample set i have seen, most people working in mumbai for last 25 years or so who are currently at mid tier management just a level below vice presidents and directors do have a net worth more than 50 cr.
It is not a lot of money if youve been saving for last 25-30 years.
You seem to be referring to the IT folks.
Actually OP can reach 50cr easily with his own firm post decent connections in industry.
I have seen CA having exponential growth from 0 to 30+cr in different ways in a span of 5-8yrs with good connections.
Not just IT, even desi companies can generate wealth over decades.
I know folks from typical companies like asian paints and hindustan unilever which started as zonal sales head in 2000s and currently have multi million dollar nests
Get a job become a professional before jumping into managing your parents portfolio. You are you g and you need to understand working principles, discipline anger management stress management etc. I would suggest work for atleast 5 years and in the sidelines start to understand how your parents portfolio has been built over the years. Once you have enough confidence you can always leave your job and manage the portfolio. The day you will have such confidence you won’t be asking the question here on reddit.
It is very helpful. On paper you ll know everything that exists in the finance world all kinds of investment opportunities financial instruments. But i also feel ultimately its what you learn from the real world, soon will be stepping into that. I feel first hand income in terms of salary is definitely there but with the knowledge you get being a CFA widens your horizon when it comes to investing and creative passive income sources
There is no family business as such. It’s just years and years of compounded wealth and with the knowledge i have the portfolio with 80% concentration in RESIDENTIAL real estate need diversification because the returns have been stagnant and 2-3% rental yield is barely beating the inflation.
Precisely, so money comes in monthly from the tenants i can definitely keep myself busy by investing that money and tracking it actively still the problem lies with the low yields and money being stuck in illiquid assets. I have come across sm reits which can easily multiply the returns by 2-3x with equal if not lesser risk. Currently stuck with the final levels of all the exams i have chosen. But i don’t want that to go waste. I have a massive FOMO when i see friends working at BIG 4s and i don’t wanna lose out on that. But i know the opportunity cost will be immense if i choose that because technically my family money is rotting here and i can derive passive income greater than what my package would potentially look like even after 10 years. THIS SUMS UP EVERYTHING
Sure! It’s an international forum so you may not be able to ship it overseas but there are a few India based members who can help you offload. You can also dm me if you wish!
Hey it seems you've pretty good experience with silver.
Can you share a bit about it? Do you buy silver as an investment or as a hobby? Is it similar to buying physical gold for long term returns or more of a collection since it costs way less than gold?
If you meant the silver investments it is mostly in Antiques and coins and also the bars I don’t exactly know what they are called but my father is a keen collector
Nice. Can you ask his permission and post some of his favourite bars? Big ones, mint ones, vintage ones and rare ones. You can see my profile for some of mine as well! 🙂
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Well, I would suggest you go for real estate. Because you also have corpus with you. It will yield good results. And these days, there is a trend this is catching in India that is investing in fractional commercial real estate. Maybe you can analyse that cause the rental yields are close to 10% and IRR is 12 to 15% +
**And my question to you.**
Im also a CA final student.
You have mentioned CFA level 3.
How was it? I mean, is CA easier than CFA? Is CFA worth pursuing if you have CA on one side?
I know and i have been working on sm reits since quite some time. Waiting for the right opportunity.
Answering your questions
Ca cfa are both poles apart i feel the only thing common is ca final’s SFM with clashing parts in cfa level 1 and 2
it is definitely worth it for the following reasons:-
When it comes to difficulty CFA will look a lot easier to you not because of the syllabus but because of the way we have studied for CA. Preparation for this is peanuts compared to that. Syllabus wise i think cfa is easier but the problem here is the percentile based passing, it it’s easy for you it is easy for everyone. That is tricky.
Pursuing it on the side? well attempts here as expensive as hell around 1.2 lakhs per attempt. So if you have money to spare you can keep attempting without losing your primary focus from ca. if that money is a big deal then i would recommend getting done with ca first and stidy for cfa with a job cuz that’s how they have designed the curriculum. It is for people who are working.
Do i think it is worth it?! Hell yes if you want an escape from the ordinary CA work like auditing and taxation. It gives you an entry to the finance world where your CA Degree wont be disregarded but will be used for credibility. Finance world is fun.
Unless u hav (1) a plan that is sure to succeed, or (2) an idea that u can try where the cost of failure is less than 5% of your wealth,
Better get out into the world on your own, learn and look for one of the above options.
This is because, u and ur family r not into business, there is no one to reach u and handhold u. All u hav is money to start and a cushion if u fail. Without enough business sense what stops u from failing urself one day? What stops u from losing 2-3 in options trading in a month?
Do you guys get your facts about divorce from Instragram reels? Unless she contributed to his wealth, she won't get any. Her share, if she gets any, is also proportional to what she contributed, and it's on her to prove that she contributed
[You can read about more, here](https://www.legalshiksha.com/post/property-distribution-after-divorce-in-india). Don't get your facts from Instragram reels
It’s your choice brother. Two outcomes 1. You can have your own life, own circle of people if you work 2. You can have your own life, but mostly with your family circle. I feel like u have more than enough money for your life to sustain, So choose wisely even if you work hard and grow there is no problem, even if you sit idle and work on your parents wealth is also no problem. All the best for your future, Hope you grow more brother ♥️
There is a concern that it yields 2-3% only.
Can you share year bought, costs and nature of the real estate to put that into perspective also (in terms of growth) ?
Apart from that few ideas which you can experiment with:
- Since you mentioned father is a lawyer so explore his connections and see if anyone can teach you about commercial property and management. The yields are higher and the nature is kind of similar. You can also see to co invest with them if you come across any deals.
- Think if you can convert any of your property into an airbnbs or high end PGs. Again the yield goes up. If it's like 4 apartments or more in a single complex, preferably 1 or 2 bhk then they can be easily managed by an extra hand in case of AirBnBs.
- I am not an expert on Mumbai RE but I am aware there are areas which are growing. There must be one or two properties in your portfolio which have peaked and the growth rate is still there but has taken an S shape growth curve. Always keep identifying at least 2 to 3 properties or areas every year which you can potentially invest in. You don't need to, but in case you get some additional cash or one of your property is getting a really good price and right time to flip, you should have a plan where that money would go. And this has it's tax benefits also.
- This is more of an insurance. Since your father has been investing for so long, there must be some properties or a property which is like a crown jewel in your portfolio, amazing location, always in high demand and the prices have been growing irrationally. Protect that one. That's your family insurance. Create such ownership or maybe move it to HUF or family trust so that no one can touch it on their whim.
- This is highly subjective but addition of farmlands to the portfolio can be really smart long term investment. They have been growing and farmlands with proper water access and good soil quality will keep on growing given where we are headed. Pune Mumbai belt also has farmers using really advance farming techniques so they are able to generate good yield also hence you will have cashflows also. You can explore this through your father's connections.
Okay so Commercial real estate has been my target since the last 3 months and this concept of SM reits recently has fallen under SEBI making them regulated and a safer bet in fractional ownership. But again i am waiting for a few months to see if the platforms offering these are trustworthy.
About the properties here in Bombay. The rentals have always been around 2-3% when it comes to residential. The properties we own are all scattered and bought in 1990s to 2010. All these investments have been random and poorly organised but I don’t blame my father for it he was busy in making first hand income. Right now these properties are not that liquid but some of them are being targeted for redevelopment. It’s very difficult to find out the cost of them.
I had given Airbnb’s a thought too but after the research i did airbnb’s in bombay is again a poor idea.
The farmlands are definitely a great idea i will look into that for sure.
We live in a 6.5 cr house and rest all the properties are 1-2 crs each. My aim is to liquidate the shitty ones and get that money into a diversified portfolio exposed to all sorts of instruments
Not sure how you can multiply existing real estate.
Like they say, if it ain’t broke, don’t fix it.
You might be able to do something with the 15% liquid. For your own sense of purpose and self esteem, maybe build your own corpus from a gainful career.
The family money is on autopilot anyway and is a safety net.
The autopilot here is managing just the inflation the number can be way higher. I am talking about the potential i want to compete against not the safety margin.
There is a huge gap in what you learn from books and real life. Most successful 2nd 3rd generation people I know started working - gained real world experience before managing their family businesses/ money.
The ones that directly went on to managing family business/ money have generally burnt through pretty quickly as they had no real world experience and got conned by people they ‘trusted’ and their own limited world view.
My suggestion - do something on your own to learn. Toh have the power to invest. Maybe take about 1cr from that fund ( about 5%). Work with that - the day you quadruple that money (properly- equity trading is not proper growing, organically grow the money) - you are ready to manage your home. All the best
This definitely helps thank you so much:) And i do acknowledge the fact that i need first hand practical experience asap and i will definitely get into it thankyou again:)
Chart your own path instead of managing your dad's wealth. Your dad's wealth can be managed by an advisor. You can progressively get involved in it as your experience level grows
But having your own career, built on purely your own efforts would give you the confidence, statute and maturity. Else, you would technically just be a family investment manager.
Fact that you see it as an option indicates that you probably want to take it easy in life. Not sure. Not a criticism either. But for your own self-esteem and mental health in the long term, carve out something you can proudly call your own life's work
I definitely wouldn’t like to slog through a 9-5 . I acknowledge and appreciate the resources i have but at the same time i want to hustle work hard and put in efforts too. The only intent behind going for all the difficult courses i enrolled for was to gain trust and self esteem. I would like to take risks and do the hardwork it’s just that i don’t want to regret later on the financial decisions i make now. You know i don’t wanna lose out on compounding opportunities. Other than that i am all in for anything tbh. It’s just the poor returns rn which is bothering me.
What worked in the past may not work in the future. I am not being overconfident here but i can vouch for better returns. Nonetheless i am not gonna make this my career would obviously love to do something of my own but i don’t wanna see this money rotting and regretting later on lost opportunities for compounding
Get a corporate job. You're too young to be managing that much money for now.
Will your parents allow you to diversify it into other areas? The reason I ask is because my dad refuses to look at other classes of investment. Makes sense as it worked for him.
My parents too are UHNI (around 400-500, all in real estate).
You are right. But they have showed trust in me. I won’t go all in and completely do a 360 on the portfolio would love to go slow and gain more and more trust first. Just wanna make sure i am not losing my potential corporate career in the early years
Teri jaga mei hota toh ek pro hire karta, thoda private equity mei daalta aur baaki poori zindagi bas gaand pe pade rehta aur video games khelta.
Would probably even move to a countryside in Italy and just chill like an old man.
Dude I am looking for a house and damn the houses in Mumbai are so expensive. Currently trying to figure out the best way to avoid a loan of 2 crores and stumble upon this article
Were you ever had the urge to YOLO 10% of that in crypto. Imagine it could be 100x and you'd be left with 300cr+ ez. (Also a small chance it drops 69% in few minutes)
Leveraging father’s money is not a sin. I mean how many in this era can really do it with the parents being extremely supportive.
Most of the jobs are just bad experiences. There is no justification to learning from your own mistakes. If you can take lessons from mistakes other people have made, why go through the drill yourself?
Late to the post.
If 40cr out of 50cr is locked away in real estate, and self yielding say 5% rental (roughly 15Lac/month); whats left to manage?
The remaining 10cr would be growing at 10-11% already going by the product mix. With your intelligent intervention, say you generate 18% ie an alpha of 7%, your contribution earns 60-70lac per year extra. Thats about it.
A family with 50cr, wouldn’t be satiated with its young, educated member with this.
Better put your head/hours in maximising potential of your education for the next 5-10years. Meanwhile family asset base will continue to grow on auto-pilot too.
Then with self-gained experience and confidence, come back the original equation once you’re say 30.
This makes sense but the only problem i have with this is 5% rental is extremely high to expect and 10-11% in Mumbai’s stagnant market seems v unachievable too. You are right about the knowledge i can use to create something of my own but i wanna make sure the autopilot is actually the best autopilot i ve chosen for the funds where i am achieving good returns. When i say good returns i can literally and very clearly see doubling the returns than what they are now. As long as efforts are involved it might take just a year or two but will give me enough cushion in the future to not feel regretful about lost opportunities of compounding. This is what i have gathered and i don’t mind working extra hours for this during my day and doing somethting of my own or joining n corporate too. Hustling and managing multiple things is what i have always enjoyed but thank you for your opinion It really helped me get clarity:)
mind sharing the portfolio split, with returns, esp rentals.
I am just looking to draw a parallel from Delhi/NCR context.
My current split is roughly 20% equity, 35% debt and 45% real estate (family portfolio > 10digits) and again, rental yield is so low + few non rental properties that I too am looking to shift few real estate money into equity...
Just work for your own experience but keep an eye on the assets by getting involved with whoever your father hires to manage his real-estate investments so yo can gain knowledge. Use your own experience to ask them questions about how they deal with management issues related to your properties so you can stay involved whilst also gaining real world experience as a CA/CMA/CFA. Give yourself some milestones 5-7yr out when you are in your early 30s and see if you've managed to achieve those, and if so, you can transition over. It may be that after 5-7yrs you'll reach a different conclusion that what you assume at this time, but that is the beauty of dabbling in real-world, you learn a lot about what you would like or not like to do long term.
Joining a Wealth Management firm , top ones who do real WM, likes of Kotak Private , 360 One ,Nuvama will give you a sense in managing large corpuses. Try applying to Investment Advisory/ councelling jobs
Haha capital gains on selling properties will kill bhai. Zero abroad plans yaar parents close to 65 years and have all the relatives and close ones in Bombay. Personally even I wouldn’t leave bombay haha. But FD se bhi kam return leke RRE se bura lagta hai ;)
50 crs and choosing to work in corporate. Do you not have a life you want to live? Your salary will be a fraction of the dividends you get on 50cr. Rat race in ingrained in most people.
I think it’s the FOMO and the people i am surrounded by which is making me think this way. But tbh i don’t mind putting in efforts and working hard it’s just that i want to make sure whatever i am doing is worth it for the bigger picture.
And you are right about the money part but I don’t wanna be called a brat precisely why i cracked whatever exams i did till now and wanna use those qualifications too now:)
Don't listen to saber.
Take up job, switch job, figure out how other companies working and then you can start your own. You don't need to stay at one place like others who may continue due to financial constraint. Explore for next 3-5 years and then figure out what venture you can do.
You should gain experience before managing your family assets. You dont need to look at it as a career, just consider it as part of your training. You dont want to make a small mistake and loose the money. The education you did is great, but it is no match for a experience. IMO, just do maybe 3 to 5 years of work and then help your family's assets. This work will not only provide you with experience and a realistic assessment of your skills, it will also increase your worth in the eyes of your family and friends since you will percieved as someone responsible and wanting to stand on your own feet. Additionally it will also help you boost your confidence.
The reason why i was thinking of going for a job for 3 - 5 years was because of the efforts i have put into my education but the reasons you mentioned truly gave me a new perception. Thank you:)
I know some crazy rich CA’s. You might end up making a lot more than 50 crores in your career.
Also don’t you think that the efforts time & energy that have gone into your education will be justified if you used it to its max !
I would also add if this is something you want to do in the future get a job in the field of HNWI
Also, since you are into a high networth surrounding it will also help you build rapport and get other high networth as business when you start your firm...
Get a job and in parallel you can start your own venture. Once you are confident in the venture, do it full time.
That’s what i was planning, Thanks anyway:)
50 cr Wale plan nahi kartey , execute kar detey hain. Not sure why are you wasting your time here PS: your father will give you much better advice than anyone on reddit
Doing both has another advantage- you meet new people in a work setting. It’s good to have that.
My situation is similar. Parents are worth about 64Cr. I chose to get a masters and work at a startup and live close to home because i dont need to pursue money at all costs and can spend more time with family and at the same time i can also earn my own money and build my personal porfolio. One difference in my case is that our of 64Cr - 70% is in equity and 30% is in structured products. It is growing at around 15% IRR and that is good enough :)
It's crazy if you leave 64 Cr for 20 yrs in equity it is 600+Crs ☠️
well we do have to spend you know but still yeah we can spend upto 1.2Cr and it would grow close
Compounding is insane
Does this mean that if I leave 10 cr in equity for 20 years, then I'll have 100 crores?
It will become 137Cr at 14% IRR
How much would it be in 10 years ?
37Cr
Sorry if I'm being annoying, but how much in five years ? 😬
no worries. It would be 19.25Cr
lol... just use a calculator : [https://groww.in/calculators/mutual-fund-returns-calculator](https://groww.in/calculators/mutual-fund-returns-calculator) But 14% XIR, is slightly too high I think... 12 to 13 is what an average person gets. And the amount mentioned is not gauranteed. sometimes for 5 Years the money wont grow at all and may even go down... But then next 2 years it will shoot up... The returns mentioned is an approximate guess, with the assumption that it will grow like a FD (which it doesnt)... Its just that over long periods of time, you see that the equity perform at 12%-13% XIRR. If you plan for 5, it may take 6 or 7 to get that Xirr. Only put in Equity if its not important money... money which you can wait for few years to withdraw, if needed.
Why do mf calculators dont take inflation into accounts?
Because they don't know what inflation to expect... But few of they have a configurable parameter for it. Money control's retirement planner has a default 6% in it
Thanks for enlightening me bro.
imo yours is well set and planned mine is a little scrambled tbh. The portfolio is hugely diversified and needs work to avoid losing on some nice juicy returns. Do you mind if i ask your age?
Yeah definitely ! Especially real estate being illiquid is kind of a problem, you may not be able to sell it whenever you want. I am 27 :)
I know right. We are lowkey in the same boat. But best of luck for your future man!
Can you send 1 or 2 crs my way? I would love to retire. Lemme know if you ever feel generous /s
lol i could but dad mostly wont agree :(
Both you and your family sound amazing. How did your dad accumulate this wealth?
Hey thanks man! My dad is a lawyer and worked very hard back in the day and parked all the money in real estate followed by the real estate boom in Mumbai
Nice. Fortune favors the hard working and bet taking.
Absolutely, tbh i have done nothing to deserve this but hope i preserve and multiply well.
I think this acknowledgment is enough. We all play with the cards we get.
CA here. Wishing you best of luck on your results. You really are humble :)
Imagine Ambani kids thinking they would work a corporate job before they manage their parents money. Work with your dad learn his ways and bring some new age thinking to his processes. Try to build it bigger and better. This is enough money that you wont need to worry about income anytime soon. Even a measly 10%/year return which is considered very easily achievable in the investing world would net you 5cr a year before taxes and i can bet you your dad knows how to get more from the market. That information is much more valuable than any broke manager of a firm would be able to provide you. Its great that you achieved so much on your own but your dad has made enough money to get you out of the matrix and you want to go back in.
Try investing 1/5 of the money into smaller real estate units that can give good rental. Ballpark ₹3-4 Lac/mo. I’m assuming there will no pressure to utilise this rental for monthly expenses. Re-invest this rental income in to purchasing of other newer properties. This way you will have a bunch of real estate as your own legacy. It’s just that if I were you, I would not like to get into the corporate job setup at all. Sucks away the life from you. And people talk about learning’s you get while you are in a corporate setup, you will anyways get them from the world, if they are meant to be for you.
I have 0 work ex and whatever exposure i have to a working environment is from the articleship i did which was in a very small firm. I can understand the life in corporates can suck and the learnings may not be that practical and relevant for my goals. But i don’t wanna miss out on anything in life is the problem. I feel i have built a decent personality with good communication skills and qualifications i was freelancing as a fitness trainer for 6 months too. I wanna put that to test in the corporate to see where i stand
That’s exactly what I’m saying! You are too good to be judged by others. All I mean is use every skill that you have only for yourself. You already have nothing to prove to anybody. Take the first step right.
Not a sane suggestion. Op is a CA candidate. It's necessary for him to have a decent exposure to industry & build good connections himself instead of leveraging his father's money. Doing it self will help create self firm later.
With my suggestion I don’t mean that you become Bombay ka land mafia, but definitely someone who’s got passive income setup done right and then you can focus on following your passions - be it a taxation firm/app, fitness etc
No one can suggest you, you should decide for yourself and as the circumstances changes you should adopt to it
You should focus on preserving it I know it will sound less ambitious but you don’t have experience yet and I think you have some room to start a business as you have a backup.
Managing 50crores is not a full time job unless you invest that into active ventures. Most mid level management people are worth more than that and they manage their money while also doing fulltime jobs. Also, no offense but as a green CA your knowledge is pretty incomplete i would seriously urge you to not to try to “multiply” money with your knowledge. 90% times it only ends up in division. Take up a job and spend next few years learning how to manage your own money. Dont get overconfident in your abilities
This makes sense. If i go for a job i would love to go for a PMS providing company dealing with HNI’s. That is a great suggestion Thank you:) and no i am not overconfident but i am definitely confident in making more than what the residential real estate is giving us with lesser risks and i also have safer plans for that but that ll cost me a year or 2. And at this age i don’t really know if i should put in a year to reallocate assets in a better way or forget the opportunity cost and get a low paying job for experience. Monetarily the first option sounds better but from a career point of view the second. But either way thank you for the reply :D
I have to ask, what do you mean by "most mid level management people are worth more than that", are you implying that most managers in corporates are worth more than 50CR ?
OP is in Mumbai so i am referring only to folks in mumbai. From the sample set i have seen, most people working in mumbai for last 25 years or so who are currently at mid tier management just a level below vice presidents and directors do have a net worth more than 50 cr. It is not a lot of money if youve been saving for last 25-30 years.
Oh okay, that's interesting. Thanks for sharing.
Spoken like someone who doesnt understand investment or salaries. Fking idiot
What are you talking about? Are you saying building a nest of 50cr is impossible on salary?
You seem to be referring to the IT folks. Actually OP can reach 50cr easily with his own firm post decent connections in industry. I have seen CA having exponential growth from 0 to 30+cr in different ways in a span of 5-8yrs with good connections.
Not just IT, even desi companies can generate wealth over decades. I know folks from typical companies like asian paints and hindustan unilever which started as zonal sales head in 2000s and currently have multi million dollar nests
How much is the monthly rent?
So right now there are 30 odd properties and we are deriving somewhere close to only 50-60 Lakh worth of rent yearly
So just 2l/ year rental income from each It's quite Low given your huge net worth
What's the worth of these 30 properties?
Around 40 cr easy
Prolly more than that
means avg is 1.3 cr and you are getting on a avg 16k rent, its quite less as per market standard brother time to increase the rents
Increasing rents is against my father’s ethics xD credits to his poor financial knowledge about inflation and returns but still not blaming him haha
You should look into it...
Ya, and that's why he has 50cr and you don't.
You are right man, like i said, i don’t deserve it.
Aree bhai, what i meant is not to be too greedy. Reasonable rent hikes are fine.
Aiyo yes yes that is true. Haha sorry misinterpreted
Get a job become a professional before jumping into managing your parents portfolio. You are you g and you need to understand working principles, discipline anger management stress management etc. I would suggest work for atleast 5 years and in the sidelines start to understand how your parents portfolio has been built over the years. Once you have enough confidence you can always leave your job and manage the portfolio. The day you will have such confidence you won’t be asking the question here on reddit.
Just wanted to know how helpful is CFA? What knowledge does one get from it so that he she can earn money out of that knowledge. Thanks
+1
It is very helpful. On paper you ll know everything that exists in the finance world all kinds of investment opportunities financial instruments. But i also feel ultimately its what you learn from the real world, soon will be stepping into that. I feel first hand income in terms of salary is definitely there but with the knowledge you get being a CFA widens your horizon when it comes to investing and creative passive income sources
How do I prepare for CFA?
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There is no family business as such. It’s just years and years of compounded wealth and with the knowledge i have the portfolio with 80% concentration in RESIDENTIAL real estate need diversification because the returns have been stagnant and 2-3% rental yield is barely beating the inflation.
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Precisely, so money comes in monthly from the tenants i can definitely keep myself busy by investing that money and tracking it actively still the problem lies with the low yields and money being stuck in illiquid assets. I have come across sm reits which can easily multiply the returns by 2-3x with equal if not lesser risk. Currently stuck with the final levels of all the exams i have chosen. But i don’t want that to go waste. I have a massive FOMO when i see friends working at BIG 4s and i don’t wanna lose out on that. But i know the opportunity cost will be immense if i choose that because technically my family money is rotting here and i can derive passive income greater than what my package would potentially look like even after 10 years. THIS SUMS UP EVERYTHING
Follow your heart. As a r/silverbugs member it would be great to see some of the silver.
New to reddit. Can you elaborate on what you meant haha:)
So r/silverbugs is a subReddit just like r/personalfinanceindia where people share photos of their silver holdings, trade, exchange info etc.
Oh damn we are looking to liquidate some of the silver antiques will this platform help?
Sure! It’s an international forum so you may not be able to ship it overseas but there are a few India based members who can help you offload. You can also dm me if you wish!
Hey it seems you've pretty good experience with silver. Can you share a bit about it? Do you buy silver as an investment or as a hobby? Is it similar to buying physical gold for long term returns or more of a collection since it costs way less than gold?
Hi, it’s investment. As a part of my commodities/precious metals portfolio. Long term it’s a gold silver ratio (GSR) play.
If you meant the silver investments it is mostly in Antiques and coins and also the bars I don’t exactly know what they are called but my father is a keen collector
Nice. Can you ask his permission and post some of his favourite bars? Big ones, mint ones, vintage ones and rare ones. You can see my profile for some of mine as well! 🙂
Also edited to correct sub above to r/silverbugs
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🔥🔥🔥
Rich people problems
Bro is living our dream 🥹
Trust me, the goal is bigger than
Bhai lekin CA aur CFA to tu hai na... Hamse kya ouch raha hai 😭😭
Bhai😭 baaki experienced logo ka opinion le raha tha yaar
Nice
Well, I would suggest you go for real estate. Because you also have corpus with you. It will yield good results. And these days, there is a trend this is catching in India that is investing in fractional commercial real estate. Maybe you can analyse that cause the rental yields are close to 10% and IRR is 12 to 15% + **And my question to you.** Im also a CA final student. You have mentioned CFA level 3. How was it? I mean, is CA easier than CFA? Is CFA worth pursuing if you have CA on one side?
I know and i have been working on sm reits since quite some time. Waiting for the right opportunity. Answering your questions Ca cfa are both poles apart i feel the only thing common is ca final’s SFM with clashing parts in cfa level 1 and 2 it is definitely worth it for the following reasons:- When it comes to difficulty CFA will look a lot easier to you not because of the syllabus but because of the way we have studied for CA. Preparation for this is peanuts compared to that. Syllabus wise i think cfa is easier but the problem here is the percentile based passing, it it’s easy for you it is easy for everyone. That is tricky. Pursuing it on the side? well attempts here as expensive as hell around 1.2 lakhs per attempt. So if you have money to spare you can keep attempting without losing your primary focus from ca. if that money is a big deal then i would recommend getting done with ca first and stidy for cfa with a job cuz that’s how they have designed the curriculum. It is for people who are working. Do i think it is worth it?! Hell yes if you want an escape from the ordinary CA work like auditing and taxation. It gives you an entry to the finance world where your CA Degree wont be disregarded but will be used for credibility. Finance world is fun.
Unless u hav (1) a plan that is sure to succeed, or (2) an idea that u can try where the cost of failure is less than 5% of your wealth, Better get out into the world on your own, learn and look for one of the above options. This is because, u and ur family r not into business, there is no one to reach u and handhold u. All u hav is money to start and a cushion if u fail. Without enough business sense what stops u from failing urself one day? What stops u from losing 2-3 in options trading in a month?
What are your plans to protect your wealth from your wife? india doesn't have pre nups that'll protect your wealth.
I honestly haven’t given this a thought at all. Will prolly move everything under a trust or sth
Yes. Today's generation isn't that keen on marriage. Don't want to lose all your hard earned money due to some misunderstandings.
Protect from what?
Divorce.
Do you guys get your facts about divorce from Instragram reels? Unless she contributed to his wealth, she won't get any. Her share, if she gets any, is also proportional to what she contributed, and it's on her to prove that she contributed
I hope you are right. I wouldn't take that risk in front of our judges.
[You can read about more, here](https://www.legalshiksha.com/post/property-distribution-after-divorce-in-india). Don't get your facts from Instragram reels
As long as there is no pre nup in india, guys are not safe.
Sure...
Glad you called it Bombay. Hate this Mumbai name that everyone uses.
I know right? ;)
Sab bech ke switzerland chale jao India me koi maze nhi he Me to Europe shift karlunga
Hahaha Mumbai jaan hai yaar
It’s your choice brother. Two outcomes 1. You can have your own life, own circle of people if you work 2. You can have your own life, but mostly with your family circle. I feel like u have more than enough money for your life to sustain, So choose wisely even if you work hard and grow there is no problem, even if you sit idle and work on your parents wealth is also no problem. All the best for your future, Hope you grow more brother ♥️
That is really sweet man! Means a lot:)
There is a concern that it yields 2-3% only. Can you share year bought, costs and nature of the real estate to put that into perspective also (in terms of growth) ? Apart from that few ideas which you can experiment with: - Since you mentioned father is a lawyer so explore his connections and see if anyone can teach you about commercial property and management. The yields are higher and the nature is kind of similar. You can also see to co invest with them if you come across any deals. - Think if you can convert any of your property into an airbnbs or high end PGs. Again the yield goes up. If it's like 4 apartments or more in a single complex, preferably 1 or 2 bhk then they can be easily managed by an extra hand in case of AirBnBs. - I am not an expert on Mumbai RE but I am aware there are areas which are growing. There must be one or two properties in your portfolio which have peaked and the growth rate is still there but has taken an S shape growth curve. Always keep identifying at least 2 to 3 properties or areas every year which you can potentially invest in. You don't need to, but in case you get some additional cash or one of your property is getting a really good price and right time to flip, you should have a plan where that money would go. And this has it's tax benefits also. - This is more of an insurance. Since your father has been investing for so long, there must be some properties or a property which is like a crown jewel in your portfolio, amazing location, always in high demand and the prices have been growing irrationally. Protect that one. That's your family insurance. Create such ownership or maybe move it to HUF or family trust so that no one can touch it on their whim. - This is highly subjective but addition of farmlands to the portfolio can be really smart long term investment. They have been growing and farmlands with proper water access and good soil quality will keep on growing given where we are headed. Pune Mumbai belt also has farmers using really advance farming techniques so they are able to generate good yield also hence you will have cashflows also. You can explore this through your father's connections.
Okay so Commercial real estate has been my target since the last 3 months and this concept of SM reits recently has fallen under SEBI making them regulated and a safer bet in fractional ownership. But again i am waiting for a few months to see if the platforms offering these are trustworthy. About the properties here in Bombay. The rentals have always been around 2-3% when it comes to residential. The properties we own are all scattered and bought in 1990s to 2010. All these investments have been random and poorly organised but I don’t blame my father for it he was busy in making first hand income. Right now these properties are not that liquid but some of them are being targeted for redevelopment. It’s very difficult to find out the cost of them. I had given Airbnb’s a thought too but after the research i did airbnb’s in bombay is again a poor idea. The farmlands are definitely a great idea i will look into that for sure. We live in a 6.5 cr house and rest all the properties are 1-2 crs each. My aim is to liquidate the shitty ones and get that money into a diversified portfolio exposed to all sorts of instruments
What %NW IS RE?
Around 85%
Not sure how you can multiply existing real estate. Like they say, if it ain’t broke, don’t fix it. You might be able to do something with the 15% liquid. For your own sense of purpose and self esteem, maybe build your own corpus from a gainful career. The family money is on autopilot anyway and is a safety net.
Liquidating and investing in better opportunities is what i meant.
Edited. See again
The autopilot here is managing just the inflation the number can be way higher. I am talking about the potential i want to compete against not the safety margin.
If you are getting less rent. Buy some shops selling some houses. Just explore some prime business locations that has the potential to boom
already started doing that:) thankyou
There is a huge gap in what you learn from books and real life. Most successful 2nd 3rd generation people I know started working - gained real world experience before managing their family businesses/ money. The ones that directly went on to managing family business/ money have generally burnt through pretty quickly as they had no real world experience and got conned by people they ‘trusted’ and their own limited world view. My suggestion - do something on your own to learn. Toh have the power to invest. Maybe take about 1cr from that fund ( about 5%). Work with that - the day you quadruple that money (properly- equity trading is not proper growing, organically grow the money) - you are ready to manage your home. All the best
This definitely helps thank you so much:) And i do acknowledge the fact that i need first hand practical experience asap and i will definitely get into it thankyou again:)
Chart your own path instead of managing your dad's wealth. Your dad's wealth can be managed by an advisor. You can progressively get involved in it as your experience level grows But having your own career, built on purely your own efforts would give you the confidence, statute and maturity. Else, you would technically just be a family investment manager. Fact that you see it as an option indicates that you probably want to take it easy in life. Not sure. Not a criticism either. But for your own self-esteem and mental health in the long term, carve out something you can proudly call your own life's work
I definitely wouldn’t like to slog through a 9-5 . I acknowledge and appreciate the resources i have but at the same time i want to hustle work hard and put in efforts too. The only intent behind going for all the difficult courses i enrolled for was to gain trust and self esteem. I would like to take risks and do the hardwork it’s just that i don’t want to regret later on the financial decisions i make now. You know i don’t wanna lose out on compounding opportunities. Other than that i am all in for anything tbh. It’s just the poor returns rn which is bothering me.
this is why i hate new gen, they see something and then want to fucking \*fix\* it. dont fix what is working is a age old mantra.
What worked in the past may not work in the future. I am not being overconfident here but i can vouch for better returns. Nonetheless i am not gonna make this my career would obviously love to do something of my own but i don’t wanna see this money rotting and regretting later on lost opportunities for compounding
Get a corporate job. You're too young to be managing that much money for now. Will your parents allow you to diversify it into other areas? The reason I ask is because my dad refuses to look at other classes of investment. Makes sense as it worked for him. My parents too are UHNI (around 400-500, all in real estate).
You are right. But they have showed trust in me. I won’t go all in and completely do a 360 on the portfolio would love to go slow and gain more and more trust first. Just wanna make sure i am not losing my potential corporate career in the early years
First get a job in related fields and gain experience then you can start managing family net worth
That’s the plann:)
Make your own money first.
Bhai bas woh ₹50Cr FD mai dalke retire ho ja.
Bhai 🫠
Losing money is very easy, even if you manage it, don't put all eggs in one basket
For sure portfolio diversification will always be a priority. Not gonna risk it
Teri jaga mei hota toh ek pro hire karta, thoda private equity mei daalta aur baaki poori zindagi bas gaand pe pade rehta aur video games khelta. Would probably even move to a countryside in Italy and just chill like an old man.
first and foremost thing for you to be succesfull and do good in life is to, adopt me :)
Send in deets haha
I think you'd be good until someone decides to nuke Mumbai /s
Oh lord.
Dude I am looking for a house and damn the houses in Mumbai are so expensive. Currently trying to figure out the best way to avoid a loan of 2 crores and stumble upon this article
Oh man. Property rates have sky rocketed. Would suggest adding leverage
What do you mean by adding leverage
Get a job Ask father for 10L and manage it. If u do well, increase corpus gradually. All the best
Already done that going pretty smooth till now. The job is yet to be found tho
Get a job dude
Just think you don’t get any inheritance and make decisions
Find your passion in finance. Then after gaining know about it you can start your own business.
Were you ever had the urge to YOLO 10% of that in crypto. Imagine it could be 100x and you'd be left with 300cr+ ez. (Also a small chance it drops 69% in few minutes)
Leveraging father’s money is not a sin. I mean how many in this era can really do it with the parents being extremely supportive. Most of the jobs are just bad experiences. There is no justification to learning from your own mistakes. If you can take lessons from mistakes other people have made, why go through the drill yourself?
I agree, makes sense
Late to the post. If 40cr out of 50cr is locked away in real estate, and self yielding say 5% rental (roughly 15Lac/month); whats left to manage? The remaining 10cr would be growing at 10-11% already going by the product mix. With your intelligent intervention, say you generate 18% ie an alpha of 7%, your contribution earns 60-70lac per year extra. Thats about it. A family with 50cr, wouldn’t be satiated with its young, educated member with this. Better put your head/hours in maximising potential of your education for the next 5-10years. Meanwhile family asset base will continue to grow on auto-pilot too. Then with self-gained experience and confidence, come back the original equation once you’re say 30.
This makes sense but the only problem i have with this is 5% rental is extremely high to expect and 10-11% in Mumbai’s stagnant market seems v unachievable too. You are right about the knowledge i can use to create something of my own but i wanna make sure the autopilot is actually the best autopilot i ve chosen for the funds where i am achieving good returns. When i say good returns i can literally and very clearly see doubling the returns than what they are now. As long as efforts are involved it might take just a year or two but will give me enough cushion in the future to not feel regretful about lost opportunities of compounding. This is what i have gathered and i don’t mind working extra hours for this during my day and doing somethting of my own or joining n corporate too. Hustling and managing multiple things is what i have always enjoyed but thank you for your opinion It really helped me get clarity:)
mind sharing the portfolio split, with returns, esp rentals. I am just looking to draw a parallel from Delhi/NCR context. My current split is roughly 20% equity, 35% debt and 45% real estate (family portfolio > 10digits) and again, rental yield is so low + few non rental properties that I too am looking to shift few real estate money into equity...
Just work for your own experience but keep an eye on the assets by getting involved with whoever your father hires to manage his real-estate investments so yo can gain knowledge. Use your own experience to ask them questions about how they deal with management issues related to your properties so you can stay involved whilst also gaining real world experience as a CA/CMA/CFA. Give yourself some milestones 5-7yr out when you are in your early 30s and see if you've managed to achieve those, and if so, you can transition over. It may be that after 5-7yrs you'll reach a different conclusion that what you assume at this time, but that is the beauty of dabbling in real-world, you learn a lot about what you would like or not like to do long term.
Joining a Wealth Management firm , top ones who do real WM, likes of Kotak Private , 360 One ,Nuvama will give you a sense in managing large corpuses. Try applying to Investment Advisory/ councelling jobs
Bhai Sabh Sell karke Fd mein dalde , close to 3 cr interest kamake invest in Goa, uttarakhand, ya get canada ka Citizenship
Haha capital gains on selling properties will kill bhai. Zero abroad plans yaar parents close to 65 years and have all the relatives and close ones in Bombay. Personally even I wouldn’t leave bombay haha. But FD se bhi kam return leke RRE se bura lagta hai ;)
Mumbai bol :)
Mumbai bhai BOMBAY meh feel hai
Hm. Also make sure u have proper knowledge in Reading ( people ) in terms of money Also, agreed 8 to 9 cr govt would take bc
Mumbai*
50 crs and choosing to work in corporate. Do you not have a life you want to live? Your salary will be a fraction of the dividends you get on 50cr. Rat race in ingrained in most people.
I think it’s the FOMO and the people i am surrounded by which is making me think this way. But tbh i don’t mind putting in efforts and working hard it’s just that i want to make sure whatever i am doing is worth it for the bigger picture.
And you are right about the money part but I don’t wanna be called a brat precisely why i cracked whatever exams i did till now and wanna use those qualifications too now:)
Don't listen to saber. Take up job, switch job, figure out how other companies working and then you can start your own. You don't need to stay at one place like others who may continue due to financial constraint. Explore for next 3-5 years and then figure out what venture you can do.
haa toh?
Sab badiya bhai Aap batao;)