Actor-turned-politician C Joseph Vijay declared assets worth ₹624 crore, with less than 0.05% of it in equity. This defies common financial wisdom, which often touts stocks as indispensable for wealth growth. For the ultra-rich, however, skipping equity might be a smart play to avoid market volatility and headaches.
How We Got Here
The Ken article details actor Vijay's asset declaration in his run-up for the Tamil Nadu Chief Minister election. His reported portfolio of over ₹600 crore largely bypassed equities, placing more than half in bank deposits and real estate.
The Numbers
- Over ₹200 crore of Vijay's ₹624 crore wealth sits in a single savings bank account.
- Real estate constituted the second-largest portion of his assets.
- Financial planning firm Samasthiti Advisors co-founder Ravi Saraogi advocates for risk avoidance when clients possess substantial capital.
- Indian benchmark indices BSE Sensex and Nifty 50 delivered near-zero returns over the last two years, frustrating equity investors.
- A recent Reuters poll forecasted the Indian stock market's first annual decline in over a decade.
What Happens Next
🇮🇳 Why This Matters for India
For founders in Mumbai and Bangalore currently debating aggressive equity plays post-exit, this offers a contrarian view on how capital preservation changes the wealth game.
The Take
The pervasive "equity is a must" narrative misses a key point for those with significant capital. Risk-free returns, even at 6-7% post-tax, are often sufficient for someone with ₹600 crore to outpace inflation and grow wealth comfortably, especially when structured with tax efficiency. The real luxury for the ultra-rich is not having to chase outsized returns.
Source:
The Ken ↗