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Equity or Real Estate in India

It's been some time, so I decided to write a small blog post after this question came up during a discussion with a friend.   Is Equity better than real estate in India, or is real estate the best? This has always been a contentious argument where people tend to side with one or the other. I am biased in favor of the Equity markets.    Real estate in India is now quite mature, and unlike the earlier times when 'land' was selling at throwaway prices and some made multi-fold returns, However, even in some of those cases, the calculated CAGR would be 15-20% over a 20-30 year period which is terrific but quite comparable to the equity market indices. Fundamentally, land prices cannot have a return that is superior to businesses. If that were to happen, why would one actually want to set up any factory or farm as they would be better off profiting from owning the land itself? So what works for markets: 1.One can start with very little capital and work from home or literally fro
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BC,DC and AC!

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If you are wondering if these are the different types of current,they are not. BC stands for before Corona DC stands for during Corona & AC stands for after Corona. Before this pandemic triggered the various Governments to lock-down entire countries,we had one economic reality,that has now completely changed obviously. We are currently in DC(during Corona): A lot of people are comparing this to the 1918 Spanish flu pandemic or the great depression but very few have compared this to the 1957 Asian Flu Pandemic that killed around 116 thousand people in the United States,in fact the FED that is releasing trillions of stimulus now did not even mention it back then. "In February 1957, a new influenza A (H2N2) virus emerged in East Asia, triggering a pandemic (“Asian Flu”). This H2N2 virus was comprised of three different genes from an H2N2 virus that originated from an avian influenza A virus, including the H2 hemagglutinin and the N2 neuraminidase genes. It wa
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IDFC Ltd. : it melts like an icecube?

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IDFC Ltd(CMP: Rs. 14.15 and market cap of about Rs. 2260 Crores) is looking interesting now after the fall. IDFC Ltd. is holding 40% in IDFC First Bank and 100% in IDFC AMC. Apart from this, a dividend payout of Rs 640 Cr. is also due after the selling of other assets,this is more than a quarter of the market cap. First let's look at the AMC part: The AMC alone would easily be worth much more than the current market cap. As of end of FY20,the AUM stood at Rs. 1,03,912 Crores which is almost up 50% from Rs. 69,352 Crores. Market share of the AMC has improved to 3.85% from 2.84% a year ago. Now let's take a look at the bank: The 40% holding in the bank can be reduced to 15% after October 2020. The current market capitalization of the bank has fallen below Rs. 10000 Crores,down more than 64% in the last one year. With this price decline and worsening of the asset quality and now with the macro challenges,it will become very difficult
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