Rasesh B Kanakia has a pretty straightforward investing philosophy. “The return should be at least twice as much as inflation,” he says. That probably explains why he invests 80% of his wealth in real estate, the sector that brings in his daily bread. To his mind, there is no better business to be in than commercial real estate. “It can give you a return of at least 17-18%. Compare that with an investment in a large weekend home, which really is a dead investment,” he says. His real estate portfolio includes three schools in Mumbai, a hotel property in the city operated by Marriott and another hotel that is coming up in Goa.
Kanakia’s decision to invest 20% of his wealth in insurance and mutual funds is not without reason. “The insurance bit is really for the family, and that is something I have done for a few years now,” he explains. Deep down, equities is an asset class that Kanakia remains interested in, though one that he has not directly invested in. “One has to remain very focused when it comes to equities. Time is a constraint for me and that is why I invest in mutual funds, although the returns are not always exciting,” he says. Commodities, too, hold his fancy, although paucity of time again comes in the way of him betting his money on them. According to Kanakia, there is an inherent advantage to investing in real estate. “Apart from this being my comfort zone, the returns the sector generates means that I do not really have to look elsewhere for options,” says Kanakia. It is indeed an approach that has stood the man in good stead over time.