Investment Portfolio Tips

1985: Rakesh Jhunjhunwala started investing with ₹5,000 from his savings. 2022: His net worth was ₹38,000 crores. He paid crores in taxes over his career.  Never tried to just "save" taxes aggressively. When most HNIs hit high-income brackets, the first thought is to over-optimise taxes. Rakesh focused on wealth creation instead. He used legitimate tax structures and benefited from indexation, but never let tax optimization drive investment decisions. First big win: Tata Tea at ₹43 → ₹143 in 3 months. Made ₹25 lakhs. The conviction bet: Titan at ₹30. Held 19 years until he passed away at ₹2,000+. Also held Crisil, Lupin, Star Health for decades. He proved that wealth isn't built by avoiding taxes. It's built by holding winners. 4 lessons from Rakesh’s journey: 1. Tax optimization ≠ wealth maximization He had countless opportunities to book profits and minimize taxes on Titan's ₹30 → ₹2,000+ journey. Yet, chose to hold and pay LTCG instead. Portfolio: ₹5,000 → ₹38,000 crores. Don't sell winners just to save tax. 2. Concentration creates wealth, diversification protects it His top holdings accounted for the majority of his portfolio. At HNI level, 5-7 high-conviction bets create generational wealth.  Diversify later to protect it. 3. Hold quality for decades He held Titan for 19 years. Compounding works only if you don't interrupt it. 4. Circle of competence over FOMO He invested less in tech stocks as didn't understand them. Stuck to consumer (Titan), pharma (Lupin), finance (Crisil). Master 2-3 sectors deeply. Rakesh didn't build his wealth by saving taxes. He built it by holding winners through market crashes, tax changes, and profit booking  pressure. P.S. If you're managing significant wealth and need help building a tax-efficient strategy that prioritizes long-term compounding, book a call from my featured section. Follow me (Khyati) for HNI wealth insights. Save and Repost ♻️ Disclaimer: Every situation is unique. This is for educational purposes only. Sources: Univest, Groww, 5paisa, ( The numbers around net worth are an estimate from data available i.e. between 37,000 crore-46,000 crore) Image credit: Respective owner. 

Family Offices Are Prioritizing Private Equity Over Public Equities and here's why! In recent years, Family Offices have increasingly shifted their focus from public equities to private equity investments. This transition underscores a strategic pursuit of higher returns and better risk management. This article explores the reasons behind this shift, leveraging data from a comprehensive study on long-term private equity performance by state pension systems from 2000 to 2023. According to a study led by Stephen L. Nesbitt, CEO and CIO of Cliffwater, private equity investments have demonstrated robust performance over the past two decades. State pensions focusing on private equity garnered an 11.0% net-of-fee annualized return over the 23-year period ending June 30, 2023, significantly outpacing the 6.2% return from public stocks. This substantial difference of 4.8% annualized underscores the potential for higher returns in private equity, a factor increasingly recognized by Family Offices. Despite facing a challenging year in 2023 with a modest 0.8% return due to spillovers from public equity drawdowns in 2022, private equity has shown resilience when viewed over longer periods. Over the two years prior, private equity still achieved a commendable 10.3% annual return, starkly contrasting with the near-flat 0.2% for public stocks. This resilience in turbulent times adds to the allure of private equity for Family Offices seeking stable, long-term growth. The study, which analyzed returns across three market cycles including both bear and bull markets, shows that private equity not only survived but thrived across various economic conditions. This consistent performance is attributed to private equity's capability to leverage deep market insights and operational improvements in portfolio companies, factors often absent in public equity markets. A crucial aspect of private equity is the 'liquidity premium'—the additional return investors demand for the decreased liquidity compared to public equities. Historically, this premium has been estimated at around two percentage points. Family offices, with their longer investment horizons and lower liquidity needs, are particularly well-positioned to capitalize on this premium, enhancing their portfolios' overall return potential. The strategic pivot by Family Offices towards private equity is not merely a trend but a calculated shift based on empirical evidence and the pursuit of superior risk-adjusted returns. The data vividly demonstrates the advantage of private equity in achieving higher long-term returns and managing risks effectively, even in fluctuating market conditions. As such, private equity is likely to remain a cornerstone of investment strategies for Family Offices, promising both growth and stability in the investment landscape of the future. Data and research by: Stephen L. Nesbitt – Chief Executive Officer, Chief Investment Officer of Cliffwater #privateequity #familyoffice

The Covid period deeply impacted human psychology — especially our relationship with money. The traditional mindset of saving and preserving wealth for the next generation was pushed aside. Instead, many began focusing on the now — choosing to spend, enjoy the moment, and embrace more risk. This was a global phenomenon, and India wasn’t left behind. As more Indians entered equity markets and saw success backing other companies, their appetite for wealth creation has grown. Now, we’re entering the second stage of risk-on. You’ll start to see small businesses investing into themselves — chasing their own aspirations instead of only riding external opportunities. We are seeing many home grown FMCG/D2C companies being launched. Existing businesses are focussing on brand building and capacity expansion too. Young adults are looking at AI to solve for inefficiency of the current operating models. This could trigger a new wave of entrepreneurship. The economy needs this kind of positive validation — a self-reinforcing upward cycle of growth, ambition, and risk-taking.

𝗠𝗶𝗻𝗶𝗻𝗴 𝗶𝘀 𝗵𝗼𝘁 𝗳𝗼𝗿 𝗮 𝗿𝗲𝗮𝘀𝗼𝗻 - 𝗶𝘁’𝘀 𝗯𝗲𝗶𝗻𝗴 𝗿𝗲𝗱𝗲𝗳𝗶𝗻𝗲𝗱. Mining has long sat in the background of capital markets. Often lumped in with the broader commodity markets and seen as slow, capital-intensive, and lacking technological progression. Important, but not investable. Strategic, but stagnant. Well, that narrative is breaking. Critical minerals, while always seen as national security assets, have ascended to a top national priority. Electrification, AI infrastructure, and defense supply chains are all colliding with a system that historically took 10+ years to deliver a new mine - if delivered at all. Meanwhile, discovery rates are collapsing while permitting timelines are stretching, further compounding capital risk. Due to this growing demand gap and market tailwinds, we spent the last few months mapping where the real bottlenecks and areas of venture-scale opportunity across the mining value chain sit, touching on: ⛏️ Exploration and feasibility - the binding constraints 🤖 Use of AI - sensing are collapsing the drill → data → decision loop ⏱️ Time-to-value matters - often more than technical novelty 💰 Moving multiples - how tech can move assets from “mining multiples” to “growth industrial” outcomes 📊 Business model innovation - why royalty-like, equity-linked models may matter as much as the tech itself The result is a framework for evaluating mining-tech opportunities via capital intensity vs. time-to-value, with a focus on cycle-time compression, risk reduction, and scalable value capture. And the best part? This isn’t just theory, we’re already seeing signals in OEM offtake behavior, upstream verticalization, and a new generation of founders treating mining as a potentially data-rich industry ripe for transformation. If you’re building, investing in, or navigating mining, minerals, or industrial AI — give it a read and let’s compare notes! As they say these days, the [VCs] yearn for the mines ⛏️ [Link to full piece in comments, also drop a comment if you want the spreadsheet backup to the market map] CC: Cathay Innovation, Simon Wu, Elijah Yi, Rose Yuan, Jaclyn Hartnett, Daniela Caserotto Leibert #Mining #CriticalMinerals #IndustrialTech #AI #EnergyTransition #VentureCapital #Reindustrialization

Thinking Out of the Box: Let me start with my conclusion and then explain my logic. Given the recent increase in funded status for Public Pension plans, it is my humble opinion that public plans are over-allocated to public/private equity. The average pension plan has ~60% exposure to public/private equities. Public plans actuarial return requirement has fallen to ~6%, the rate required to fulfill their pension distributions, while yields have risen and private credit has become a more optimal solution. Let’s unpack/debate 3 key points: 1. If a pension plan has a 6% return requirement and Private Credit can deliver 11-12% consistently year-after-year, then why not flip the script, and have 50% in Private Credit, and 10% multi-asset public credit to meet liquidity requirements - not 60% allocation to equities. Private Credit has evolved, it’s a defined asset class (prior to 2010 it was not). Muscle memory dictates that equities is the way to tilt for success. 2. Shockingly, the S&P 500 has compounded only +5% IRR per annum since January 1, 2000, a much lower than most think since it has generated a 20%+ IRR in 2023/24. There has been only 2 other times in past 100 years when equities had back-to-back 20%+ annual returns. As we close in on the first 1/4 of this century, equities have delivered a mere 5% annually. Traditional PE (top-quartile) has done well, while growth/venture have under-performed PE, except for the top 10% of this cohort. While I remain constructive for equities, one can argue that equities are rich—see chart below, while the bigger point is that fixed income is a better match v. fixed liabilities. 3. Insurance companies are highly regulated by the NAIC/state commissioner who require insurers to invest in fixed income to match asset vs. liabilities. In recent years, insurance companies have begun to invest more heavily in private credit given the meaningful yield pick-up vs. public fixed income. Led by the brilliant minds at Athene, other insurers have adopted this model of leaning into private credit. Insurance companies can allocate ~15% to private credit, only limited by the capital requirement imposed by regulators. Pension plans do not have this constraint and have significantly greater flexibility. In contrast, insurance companies also have liabilities to fulfill, yet they have just ~5% equity market exposure (percent of assets held by general account). Given the volatility of equities vs. the higher-for-longer return profile for private credit, capital allocators may want to consider these 3 key points (above). Public pension funds have an amazing model, staffed by brilliant CIOs with their strong investment staff(s). Partnering with their consulting firms, plan sponsors have a chance to flip this model, increasing the allocation to private credit that may be a better match vs. their liabilities. Is it time to rebalance?

We continue to advocate that investors think differently about their asset allocation strategies, especially given the higher nominal GDP environment in the United States. Specifically, our Regime Change thesis focuses on four key inputs (bigger deficits, heightened geopolitics, a messy energy transition, and stickier services inflation) that we think necessitate a new approach to traditional asset allocation strategies for investors. What do investors need to know? 1: 𝐖𝐞 𝐚𝐭 𝐊𝐊𝐑 𝐞𝐱𝐩𝐞𝐜𝐭 𝐟𝐥𝐚𝐭𝐭𝐞𝐫 𝐫𝐞𝐭𝐮𝐫𝐧𝐬 𝐚𝐧𝐝 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐭𝐨 𝐧𝐨𝐧-𝐜𝐨𝐫𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐚𝐬𝐬𝐞𝐭𝐬 𝐢𝐧 𝐩𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨𝐬. The five-year forward median return across asset classes we forecast is fully 180 basis points lower than what we saw over the last five years (meaning there will be less differentiation between the best- and worst-performing assets in a portfolio, on average). At the same time, ‘old’ #portfolio correlations are breaking down, so asset allocation – not single asset volatility – has a much bigger impact on overall portfolio volatility. Our message is to seek out – all else being equal – more uncorrelated assets in one’s portfolio. 2. 𝐎𝐰𝐧 𝐦𝐨𝐫𝐞 𝐜𝐚𝐬𝐡-𝐟𝐥𝐨𝐰𝐢𝐧𝐠 𝐚𝐬𝐬𝐞𝐭𝐬 𝐥𝐢𝐧𝐤𝐞𝐝 𝐭𝐨 𝐧𝐨𝐦𝐢𝐧𝐚𝐥 𝐆𝐃𝐏 𝐠𝐢𝐯𝐞𝐧 𝐭𝐡𝐞 𝐡𝐢𝐠𝐡𝐞𝐫 𝐫𝐞𝐬𝐭𝐢𝐧𝐠 𝐡𝐞𝐚𝐫𝐭 𝐫𝐚𝐭𝐞 𝐟𝐨𝐫 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐭𝐡𝐢𝐬 𝐜𝐲𝐜𝐥𝐞. This includes building flexibility across mandates and carefully considering duration. As such, we strongly believe that an overweight to modestly leveraged Infrastructure and certain Real Estate investments with yield is prudent for adding ballast to one’s portfolio. We are also quite constructive on Asset-Based Finance, which provides numerous shorter duration opportunities with good cash flowing characteristics and sound collateral. 3. 𝐎𝐰𝐧 𝐦𝐨𝐫𝐞 𝐚𝐬𝐬𝐞𝐭𝐬 𝐰𝐡𝐞𝐫𝐞 𝐲𝐨𝐮 𝐜𝐨𝐧𝐭𝐫𝐨𝐥 𝐲𝐨𝐮𝐫 𝐝𝐞𝐬𝐭𝐢𝐧𝐲, 𝐩𝐚𝐫𝐭𝐢𝐜𝐮𝐥𝐚𝐫𝐥𝐲 𝐢𝐧 𝐚 𝐰𝐨𝐫𝐥𝐝 𝐰𝐡𝐞𝐫𝐞 𝐭𝐫𝐚𝐝𝐞 𝐛𝐚𝐫𝐫𝐢𝐞𝐫𝐬 𝐚𝐫𝐞 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐢𝐧𝐠. We suggest tilting portfolios towards domestic consumption stories. We also favor more control situations, especially in the private markets, where operational improvements or strategic consolidation can, at times, drive robust profit growth, especially in #PrivateEquity. We continue to favor political changes that drive corporate reforms, hence our optimism around investing in #Japan. Still, as the convergence and blurring of the lines between national and economic security gains momentum, we expect to see more policies that encourage domestic savings, higher profits, and a lower cost of capital. Read more on asset allocation and portfolio construction in our Outlook for 2025: https://go.kkr.com/3v0WI7Q

Charlie Munger's Investing Checklist: 📉 Risk ☑ Incorporate an appropriate margin of safety ☑ Avoid people of questionable character ☑ Insist upon proper compensation for risk assumed ☑Always beware of inflation and interest rate exposure ☑ Avoid big mistakes; shun permanent capital loss 👤 Independence ☑ Objectivity and rationality require independence of thought ☑ Just because other people agree or disagree with you doesn't make you right or wrong ☑ Mimicking the herd invites average performance 🎒 Preparation ☑ Strive to become a little wiser every day ☑ More important than the will to win is the will to prepare ☑ Develop fluency in mental models ☑ The question you must keep asking is, "why, why, why, why?" 🤫 Intellectual humility ☑Stay within a well-defined circle of competence ☑ Identify and reconcile disconfirming evidence ☑ Resist the craving for false precision ☑ Never fool yourself 📐 Analytic Rigor ☑ Determine value apart from price ☑ It is better to remember the obvious than to gasp the esoteric ☑ Be a business analyst, not a market, macroeconomic, or security analyst ☑ Consider the totality of risk and effect; look at potential second-order and higher-level impacts ☑Think forwards and backwards - Invert, always invert 🥧 Allocation ☑ The highest and best use is measured by opportunity cost ☑ Good ideas are rare - when the odds are greatly in your favor, bet heavily ☑ Don't "fall in love" with an investment 🔨 Decisiveness ☑ Be fearful when others are greedy, and greedy when others are fearful ☑ Opportunity doesn't come often, so seize it when it comes ☑ Opportunity meeting the prepared mind; that's the game 🧘♂️ Patience ☑ Never interrupt compounding unnecessarily ☑ Avoid unnecessary transactional taxes and frictional cost ☑ Be alert for the arrival of luck ☑ Enjoy the process along with the proceeds 🔺 Change ☑ Recognize and adapt to the true nature of the world around you; ☑ Continually challenge and willingly amend your "best-loved ideas" ☑ Recognize reality - especially when you don't like it 🖊 Focus ☑ Reputation and integrity can be lost in a heartbeat ☑ Guard against the effects of hubris (arrogance) and boredom ☑ Don't overlook the obvious drowning in minutiae ☑ Be careful to exclude unneeded information or slop ☑ Face your big troubles; don't sweep them under the rug What would you add to Munger's excellent list? -------- ➕ Follow Brian Feroldi for more content like this. ✅ Want a free copy of my investing checklist? Grab it here: https://lnkd.in/eUbN7vK3 If you found this post useful, please share (repost ♻️) to help make LinkedIn a better platform for all.

One of the most concerning developments is the growing divergence between professional and retail investors. Institutional investors have quietly reduced risk, shifting toward defensive sectors and fixed income, while retail traders continue chasing speculative trades. Sentiment surveys confirm this imbalance, showing extreme bullishness among small traders, especially in options markets. With these risks building under the surface, prudent investors should proactively protect their portfolios. No one can predict precisely when the market will correct, but the ingredients for a sharp downturn are clearly in place. Savvy investors should use this period of complacency to reduce risk exposure before the cycle turns. Here are six practical steps investors should consider: ▪️ Rebalancing portfolios to reduce overweight exposure to technology and speculative growth names. ▪️ Increasing cash allocations to provide flexibility during periods of volatility. ▪️ Rotating into more defensive sectors like healthcare, consumer staples, and utilities that tend to outperform during corrections. ▪️ Reducing exposure to leverage by avoiding margin debt and leveraged ETFs. ▪️ Using options prudently—not for gambling, but for protecting portfolios through longer-dated puts on broad market indexes. ▪️ Focusing on companies with strong balance sheets, stable earnings, and reasonable valuations. ▪️ The explosion of zero-day options trading is not a sign of a healthy market. It is a symptom of an unhealthy market increasingly driven by speculation rather than investment discipline. Retail traders have moved from investing to gambling, chasing fast profits while ignoring the mounting risks. Greed is rampant, leverage is extreme, and complacency is near record levels. Markets can remain irrational longer than expected, but history tells us these speculative periods always end in a painful correction. Bull markets do not die quietly; they end with euphoric retail excess followed by painful corrections. Investors who recognize the signs early will avoid the worst of the fallout and be positioned to capitalize when value opportunities return.

📉 𝗜𝗻𝗱𝗶𝗮𝗻𝘀 𝗺𝗼𝘃𝗶𝗻𝗴 𝗶𝗻𝘁𝗼 𝗠𝘂𝘁𝘂𝗮𝗹 𝗳𝘂𝗻𝗱𝘀 𝗮𝗻𝗱 𝗦𝘁𝗼𝗰𝗸 𝗳𝗿𝗼𝗺 𝗙𝗗. 𝗕𝘂𝘁 𝘄𝗵𝘆? Over the past 5 years, Indian households have undergone a significant portfolio transformation — gradually moving away from Term deposits and going for mutual funds and equities. 𝑨𝒔 𝒑𝒆𝒓 𝑹𝑩𝑰 𝒅𝒂𝒕𝒂 𝒂𝒏𝒅 𝑨𝑴𝑭𝑰 𝒓𝒆𝒑𝒐𝒓𝒕𝒔: 🔹 The share of bank term deposits in household savings has declined from 50.54% in FY20 to 45.77% in FY25. 🔹 Meanwhile, mutual fund AUM has more than tripled — from ₹22.26 lakh crore (FY20) to ₹69.5 lakh crore as of April 2025. 🔹 The number of mutual fund accounts surged from 100 million (2021) to 230 million (2025), with individuals holding a massive 91% share. This shows a shift in the investment pattern of the people. The reasons could be as follows: ✅ Volatile interest rate cycles: RBI repo rate cuts during the pandemic and tightening thereafter impacted deposit attractiveness. Now recently also there was a rate cut which resulted in lesser FD rates. ✅ Increased appetite for risk: Households investing in riskier assets grew from 15.7% (2019) to 17.8% (2022). ✅ Improved financial literacy, digital access, and investor-friendly fintech platforms. Additionally, the share of household deposits in Gross National Disposable Income (GNDI) fell from 6.2% (FY21) to 4.5% (FY24), while investments in shares and mutual funds rose from 0.5% to 0.9% in the same period. ▶️ 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 𝐜𝐨𝐦𝐩𝐚𝐫𝐢𝐬𝐨𝐧: FD : 6-7% (1 year), 6.5% (5–10 years) Equity Mutual Funds: 10–12% (1 year), 12–15% (5–10 years) Direct Stock Equity: 10–20% (1 year), 13–18%+ (5–10 years) 𝗠𝘆 𝘁𝗮𝗸𝗲: ✅ FDs provide ideal for short-term or capital protection, but do not beat inflation in the long term. Also declining interest rates recently is also a concern. ✅ Mutual funds, especially equity-oriented ones, offer moderate to high returns over 5–10 years with market-linked risk and stocks even more returns but needs proper risk management. ✅ This might push people with a risk appetite to go for mutual funds than FD or even direct stocks because as it is managed by experts and offer more returns. With rising inflation and risk capabilities people would like to invest in some risk assets for higher returns. 💭 FD still stands to be the best safe investment options but people expect more returns so they have started to diversify into other options like mutual funds and stocks investments. 𝗗𝗼 𝘀𝗵𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗼𝗻 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀? 𝗗𝗼 𝘆𝗼𝘂 𝗽𝗿𝗲𝗳𝗲𝗿 𝗙𝗗 𝗼𝗿 𝗼𝘁𝗵𝗲𝗿 𝗼𝗽𝘁𝗶𝗼𝗻𝘀? #Finance #RBI #MutualFunds #strategy #PersonalFinance #FinancialPlanning #CAInsights #InvestSmart #india #IndianEconomy #WealthManagement

Just one month into 2026, a number of our base case projections for the Year Ahead have already materialized. But portfolio management goes beyond point forecasts. Now is a good time to review allocations, rebalance, and diversify—especially as geopolitical uncertainty and government intervention widen the range of possible market outcomes. So, what should investors do now to position for both a broadening opportunity set and growing risks of market volatility? -Commodities: We’ve increased our gold price target to USD 6,200/oz through September, and expect a modest decline to USD 5,900/oz by year-end. We favor up to a 5% portfolio allocation to gold as a long-term hedge against geopolitical risks. Silver remains highly speculative—so size allocations accordingly. -Currencies: Align portfolio currency with spending and liabilities. For larger investors, diversify across major currencies. Tactically, we see upside for the Chinese yuan, Australian dollar, and Norwegian krone versus the US dollar. -Tech and equities: Stay invested, but broaden exposure—beyond AI enablers to application-layer stocks, and across US sectors (financials, health care, consumer discretionary, utilities) and regions (Europe, China, Japan, US). -Fixed income: Tilt toward quality bonds and mid-curve duration; be cautious with long-duration exposure. -Alternatives: For risk-tolerant investors, add resilience with hedge funds (non-directional, discretionary macro, multi-strategy funds, merger arbitrage), private equity, real estate, and infrastructure. Market moves can create concentrated exposures that may require rebalancing. We believe a well-diversified core portfolio is the best way to position for uncertainty and protect and grow wealth. For more, read the latest CIO Alert “Taking stock and looking ahead”