High taxes everywhere: where to invest post BUDGET? Macroeconomics | Akshat Shrivastava

Summary

In this video, Akshat Srivastava discusses the impact of recent budget changes on investment strategies. He outlines six to seven points to adapt his investing style, including shifts in gold, stocks, and real estate investments. He emphasizes the importance of long-term investing due to increased short-term capital gains tax, and the need to focus on assets with potential for appreciation. Akshat also highlights the significance of understanding macroeconomics and segmental inflation for informed investment decisions.

Takeaways

• 📈 The recent budget changes have a significant impact on investment strategies, pushing towards long-term investing over short-term gains.
• 🏦 Akshat Srivastava, an investor and hedge fund practitioner, emphasizes the importance of understanding macroeconomics for informed investing.
• 📊 Tax rates for short-term capital gains (STCG) on listed stocks have increased from 15% to 20%, affecting profit margins and investment decisions.
• 💼 The speaker suggests focusing on long-term investments in assets like stocks and real estate, given the new tax implications.
• 📉 The reduction of customs duty on gold from 15% to 6% by the government is aimed at lowering the price of gold, impacting sovereign gold bond holders negatively.
• 🏠 The withdrawal of indexation benefits and changes in long-term capital gains tax (LTCG) for real estate suggest a shift towards property trading rather than long-term holding.
• 💡 Investors are advised to consider tradable properties that can add value and be flipped within two years to benefit from the reduced LTCG tax rate.
• 🌐 International diversification is recommended for investors with significant wealth to protect against currency devaluation and to seek better investment opportunities.
• 🔑 The importance of investing in unlisted companies before their IPO is highlighted as a potential source of high returns.
• 💼 The speaker shares his personal investment philosophy, which includes a preference for contrarian investing and value addition in properties.
• 📚 Akshat offers courses for those interested in learning about stock markets and real estate investing in a structured manner.

Q & A

What is the main focus of Akshat Srivastava's video?

The main focus of the video is to explain the changes in the budget and how they impact investment strategies, including the author's personal adjustments to his investing style across different asset classes like gold, stocks, and real estate.

What does Akshat Srivastava suggest about short-term capital gains (STCG) on listed stocks?

Akshat Srivastava suggests that the STCG tax rate has increased from 15% to 20%, which is a 25% change in profit margins, indicating that short-term stock investing is less attractive and pushing investors towards long-term investments.

What is the change in the long-term capital gains (LTCG) tax for gold according to the budget?

The LTCG tax for gold has been changed from a slab rate to a flat 12.5%, which may affect the attractiveness of gold as an investment option.

Why does Akshat Srivastava recommend long-term investing over short-term trading?

Akshat Srivastava recommends long-term investing because the new tax rates make short-term trading less profitable, and long-term investments are generally more aligned with the current economic policies and tax structure.

What does 'segmental inflation' refer to in the context of the video?

Segmental inflation refers to the different rates of inflation experienced by different segments of the population, such as those living in cities versus rural areas, which can affect the real value of investments and savings.

How does the change in indexation benefits affect real estate investment?

The withdrawal of indexation benefits means that the cost of inflation is no longer considered when calculating capital gains on real estate, potentially making long-term holding of properties less attractive from a tax perspective.

What is Akshat Srivastava's view on investing in gold?

Akshat Srivastava suggests that if one has to invest in gold, it should be in physical form due to issues with purity and quality control in India. However, he personally does not invest much in gold as he has other hedges like bitcoin and real estate.

What are 'tradable properties' as mentioned by Akshat Srivastava?

Tradable properties are those that can be bought, improved, and sold within a short period to take advantage of the reduced LTCG tax rate of 12.5%. Examples include properties that have been renovated or converted into income-generating assets like Airbnb listings.

How does the budget impact investment in unlisted companies?

The budget does not directly impact unlisted companies, but Akshat Srivastava suggests that there may be opportunities for significant returns in pre-IPO markets, as private company wealth is often realized through public listings.

What is Akshat Srivastava's stance on international investing?

Akshat Srivastava sees international investing as a valuable strategy, especially for those with significant wealth, to protect against currency devaluation and to take advantage of market opportunities in other countries.

Outlines

00:00

📈 Introduction to Investment Strategy Changes

Akshat Srivastava introduces the video, highlighting significant changes in the budget that have prompted a reevaluation of investment strategies. He outlines his intention to discuss six to seven points on how these changes affect different asset classes, including gold, stocks, and real estate. Akshat positions himself as an investor and educator, mentioning his courses, his presence in Dubai studying the real estate market, and his experience running a hedge fund. He emphasizes the importance of understanding macroeconomics and provides a brief on tax changes affecting short-term and long-term capital gains, particularly in stocks and gold.

05:06

🏦 Impact of Tax Changes on Gold and Real Estate Investments

The speaker delves into the implications of the budget on gold investments, explaining the difference between physical gold and sovereign gold bonds (SGBs). He discusses the tax changes that have made SGBs less attractive due to a reduction in customs duty on gold, which affects the maturity returns of these bonds. Akshat also addresses the segmental inflation in India, which is higher than the national average and impacts the real return on investment. He suggests that physical gold might be a better option than SGBs due to the government's ability to manipulate gold prices, and he shares his personal stance on not investing in gold due to other hedges in his portfolio.

10:06

🏠 Real Estate Investment in the Wake of Policy Changes

Akshat explains the new taxation policies affecting real estate, including the withdrawal of indexation benefits and the reduction of long-term capital gains tax from 20% to 12.5%. He illustrates how these changes impact the assessment of property values and the tax liabilities of sellers. The speaker suggests that while long-term holding of properties is not encouraged under the new policies, there are opportunities in trading properties that have added value, such as renovated properties or those converted into Airbnb units. He also mentions his real estate course, which covers various aspects of property investment, including international markets.

15:10

📊 Stock Market Dynamics and the Shift Towards Unlisted Investments

The speaker discusses the impact of the budget on the stock market, particularly on listed and unlisted stocks. He points out that while the increase in long-term capital gains tax from 10% to 12.5% might not crash the market, it could lead to a reevaluation of investment strategies. Akshat suggests that the pre-IPO market may offer better opportunities for wealth creation and that he will be sharing more insights on investing in unlisted companies. He also touches upon the potential benefits of international investing, especially in the context of currency devaluation.

20:13

🌐 International Diversification and the Future of Portfolio Investments

In the concluding part of the script, Akshat emphasizes the importance of international diversification in one's investment portfolio, especially for those with significant liquid wealth. He discusses the devaluation of the Indian currency and how investing in international markets can serve as a hedge. The speaker mentions his interest in US tech companies and the potential for investment in the Nasdaq market after recent corrections. He also hints at sharing more detailed commentary on international investments with his member community.

Keywords

💡Budget

The term 'budget' refers to a government's financial plan, outlining its revenues and expenditures. In the context of the video, the speaker discusses how the recent budget has significantly influenced investment strategies, emphasizing the importance of understanding macroeconomic policies for effective personal finance management.

💡Investing Style

Investing style refers to an individual's approach or strategy towards making investments. The speaker indicates a change in his own investing style in response to the budget, suggesting a shift in asset allocation among stocks, gold, and real estate.

💡Macroeconomics

Macroeconomics is the study of large-scale economic phenomena such as national income, output, and employment. The video aims to help viewers, especially newcomers, understand the macroeconomic implications of the budget on investment decisions.

💡Short Term Capital Gains (STCG)

STCG is the profit made from the sale of an asset held for a short period, typically less than a year. The speaker mentions an increase in the tax rate for STCG from 15% to 20%, which affects the profitability of short-term investments in stocks and other assets.

💡Long Term Capital Gains (LTCG)

LTCG is the profit made from the sale of an asset held for a longer period, usually more than a year. The video discusses changes in the tax rate for LTCG from 10% to 12.5%, which impacts the after-tax returns on long-term investments.

💡Indexation Benefits

Indexation benefits refer to the adjustment of capital gains for inflation, allowing for a higher cost basis when calculating taxes. The speaker explains that the withdrawal of indexation benefits for real estate investments affects the tax liability on property sales.

💡Segmental Inflation

Segmental inflation is the rate of price increase specific to a particular sector or group of consumers. The video mentions that segmental inflation in India is high and affects the real purchasing power of investments, making it crucial for investors to consider this when planning their portfolios.

💡Sovereign Gold Bonds (SGBs)

SGBs are government-issued bonds denominated in gold. The speaker discusses the complications and changes in taxation related to SGBs, advising viewers on the implications for gold investments.

💡Unlisted Stocks

Unlisted stocks are shares of companies that do not trade on a public stock exchange. The video suggests that there may be investment opportunities in pre-IPO unlisted companies, which could become listed and offer significant returns.

💡Tradable Properties

Tradable properties are real estate assets that can be easily bought and sold in the market. The speaker identifies tradable properties as a good investment opportunity, especially in the context of changes in tax laws that favor property trading over long-term holding.

💡International Diversification

International diversification is the strategy of spreading investments across different countries to reduce risk and capture opportunities globally. The video highlights the importance of considering international investments, especially in light of currency devaluation and the potential for higher returns.

Highlights

The budget has significantly changed investment strategies.

Six to seven points will be explained on changing investing styles, including gold, stocks, and real estate.

Introduction to Akshat Srivastava, an investor and hedge fund manager sharing his insights on global investment.

Major changes in taxation for listed stocks, with STCG increased from 15% to 20% and LTCG changed from 10% to 12.5%.

The impact of these tax changes on profit margins and the push towards long-term investing.

Discussion on gold investment, with a shift in LTCG and customs duty affecting Sovereign Gold Bonds.

The concept of segmental inflation and its effect on investment returns, particularly in India.

Analysis of EPF and PPF rates in the context of inflation and their diminishing attractiveness as investment options.

The importance of long-term investing in assets and the disadvantages of short-term trading.

Real estate investment advice, focusing on the impact of withdrawn indexation benefits and increased transaction frequency.

The distinction between tradable properties and their potential for value addition and short-term gains.

The potential in unlisted stocks and the benefits of investing in pre-IPO markets.

The shift in focus from long-term property holding to short-term trading for tax efficiency.

International investing as a strategy to combat currency devaluation and the importance of diversification.

The importance of understanding nuanced investment insights over general advice for better returns.

Akshat's personal investment strategies, including his approach to buying during market panics and the benefits of contrarian investing.

The video's conclusion summarizing the overarching thesis on investing in the current economic climate.

Transcripts

Hi everyone. Welcome to today's video. So this  budget was extremely pivotal. It has significantly  

changed the way one should invest. On this  video, I'm going to explain why I using six,  

seven simple points as to how I am  going to change my investing style.

Whether I'll be investing in gold, whether I'll be  investing more in stocks, whether I'll be buying  

some real estate or not. So I'm going to give  you point wise answer and help you understand the  

macroeconomics behind things for people who are  new to my channel. My name is Akshat Srivastava.  

I am an investor. I spend a lot of time studying  the investment world all across the globe.

I am currently in Dubai. I am studying the  real estate market right now. I will share  

my learnings with all of you. Also, if you are  interested in learning about stock markets in a  

structured manner or real estate in a structured  manner, then you can definitely check out some  

of my courses. I also run a hedge fund, so  I am a practitioner, industry practitioner.

I practice what I teach. I also reveal my p  and l every year. So this has been revealed  

in my member community. So this is a basic  background and without wasting any time,  

let me jump directly into the topic. So the first  key important slide that I will show you is this.

This is very, very important. This pretty much  presents a comprehensive picture of where major  

changes have come. For example, when it comes to  listed stocks, up stocks. So two major changes  

have happened here. That earlier STCG short term  capital gains was 15, now it has increased to 20.

LTCG has also been changed from ten to 12.5. Now,  some of you who are new to the stock markets might  

think it's only like 2.5% increase in taxes.  Okay? So that is just one way of looking at  

it. Basically what has happened is this is 25%  change in your eventual profit margins, right?

So this is how it is, right. So there is  nothing that you can do, right. Similarly,  

other key changes have also been made. For  example, gold may, the LTCG has been changed  

from Slab to 12.5. Similarly, in physical  real estate, a lot of questions are coming.

Should you buy real estate anymore?  It just looks pointless. Indexation  

benefits. What is indexation benefit?  I'll explain in a minute, but yeah.

Okay, so let me present a very high level  picture first. Then I will go asset wise.  

See two very important things that you need  to keep in mind. First key thing is that,  

see short term STCG, 20% slab,  right? 20% slab at least 15%.

Now this is very very high. Okay, now, short  term simply means that, for example, if you buy,  

let's say rs100 worth of any asset, be it  gold, be it real estate. Real estate. Maybe  

now, but assume 100 units purchase that you have  done on stocks, real estate, bonds, etcetera.

And if you only hold it for twelve months or  less, then you will be subjected to very high  

taxation. So as a smart investor, the first key  takeaway that you should have is very simple.  

That please only invest in assets where you can do  long term investing. Now, real estate may be. Yes,  

there is a slightly different approach there,  which I will explain subsequently on the video.

But generally speaking, long term investing  is what is being, what we are being pushed  

towards. This is my first key takeaway.  Trading, trading, even swing trading. I mean,  

this has just killed the short term stock  investing. It just does not make much sense.

Okay, so this is what I will simply say,  right? And this is the number one point  

that please do long term investing. Very,  very important, right? The second key point  

that I want to highlight is the fact that,  see many instruments. If I take a look at,  

for example, if I take a look at debt  mutual funds or ETF, it's my FDS.

A lot of people invest in fds. So now  see, guys, basically this is, this,  

you are charging slab, okay? And  government bonds right? Now here.  

If you actually check the data,  in 2024, EPF, PPF rates, 8.1%.

If I'm not mistaken, back in 2001, this was around  9%. Okay? What is happening is that in 2001,  

right now, inflation has actually gone  up quite a lot, right? In fact, inflation  

has gone up so much that the government  has stopped giving indexation benefits,  

which is actually tied to inflation.  Trying to tell you is that we are  

living in a world where segmental  inflation in India is very high.

Now, what is the meaning of segmental inflation?  I've explained in my, some of my previous videos  

also. And now people are catching up to this  concept. Segmental inflation very simply means  

if someone is living in a village, then  the inflation for them might be very,  

very different from the way inflation will  work for you. If you're living in a city,  

for example, if you're living in a city,  you would be using petrol more, right?

You would be sending your kids to private schools,  you will be buying things from supermarkets,  

you will be paying rent, right? Very  high. If someone is living in a village,  

most likely they might have their own house, they  might be doing their own ktwadi, etc. Etcetera  

the inflation data, Japna, CPI inflation.  That data is the national level data.

That is the aggregate data. If you are someone  who is able to understand english language,  

right, and are living in a city, most  likely the segmental inflation for you,  

for your segment will be easily  nine to 10% in India. Okay? It is  

not what the government claims, right?  This is pretty much nonsense, right?

And the reason why I'm telling you is that, see,  there are certain instruments, for example, PF,  

EPF, all that stuff. And if they are giving you  only 8.1 tax efficiency, and this is not a growth  

instrument anymore, right? That is a simple point.  I am saying. Am I saying that stop doing PF EPF?

No, that is your call. Do whatever  you like. All I'm simply trying to  

tell you is that if you're putting  money in PF, EPF and all that,  

then the primary issue that you will face  is that this is not where wealth is growing.

It's not. It's like 8.1% return. Your  segmental inflation is easily nine to  

10%. Now please understand that. Please  accept and acknowledge that reality.

So these are two primary points that I will  highlight. Now let me go section by section  

and let me explain about different asset  classes. What is actually happening? What,  

why some of the changes were made on the  budget, how I am reorienting my investing  

style if I am doing anything on those assets.  So gold, honestly, I don't buy much gold.

But in the past there was a lot of  interest in sovereign gold bonds.  

Now finance is made so complicated for the  normal janta, right? How is that? Like,  

you know, SGB returns money.  It's just complicated.

So let me break it down for you. What  is actually happening? There are two,  

three things, right? So one is that basically  there are like two types of golds. And please,  

all these are very, very important macro points.

No one is going to tell you this, right?  So I am making a genuine effort in terms  

of teaching you all this. Okay. Now  see, in India you can buy gold in two  

formats. One is physical format and  one there is sovereign gold, bond.

All the other forms, jewelry form,  may and all that are like, you know,  

pretty inefficient. Because if you  are buying it in jewelry format,  

then there will be making charges, etc.  Etcetera. So these are your two options.  

Primarily that you buy it in physical  format and then you, or you buy it in SGB.

Now, SGB was selling, in fact, 2015 say  SGB was introduced. And Bhati is basic  

breakdown in SGB versus physical gold.  One primary difference was there,  

in fact there were many. But one primary  difference was that there was a lock in. Right?

So lock in, if you put it in SGB, which  is sovereign gold bond. Okay. Then you  

have to lock your money for five years, right?  This is a, this is called as holding period,  

right. And in physical gold, for example, in 2015,  you chose to buy, let's say 100 grams of gold.

There is no lock in, right. If  you want to sell it in 2016,  

you could have sold it. In 2017,  you could have sold it. In 2018  

you could have sold it. So there is  no lock in per se market rate, right.

Governments are tax efficient on all that stuff.  People got very excited and a lot of money started  

flowing from physical gold to SGB's, right?  Basically. And lakhtaar ketcha tax benefit. So why  

should I not buy sovereign gold  bond hold, and gold appreciation.

So I'm going to get it. Okay, so that's a very  good theory. Okay. If appreciation happens,  

then I'll get my returns. Now when do  you get returns on sovereign gold bond?

Right. So you get returns on sovereign gold bond.  Practically speaking, when these bonds mature,  

because up maturity pay, you will be able to exit  it. Very similar to how FD garate. Again, if you  

break the FD earlier, then there are a  lot of losses that you have to undertake.

So similar was the case story here with sgvs.  Right. Now what has started to happen is that,  

see the holding period was eight years for  this. So 2023 end was holding period part,  

was the absolute minimum. So  holding period was fairly long.

So basically majority of the repayments of  this bond, that is the maturity of the bonds,  

will happen now. Right? What  government did in this budget  

is that basically they cut down the  customs duty on gold from 15% to 6%.

Customs duty from 15% to 6%. What were  they trying to achieve with this? Well,  

what they were trying to achieve with this was  that they were trying to reduce the price of  

the golden. Now why were they trying to reduce  the price of the gold? Well, again, very simple,  

because your repayment oga, that will be as per  the current gold price plus a certain alpha on it.

So by playing around with this 15% to 6%  slab, they have successfully reduced or  

they will successfully reduce the price of the  gold by 9%. Okay, so now this is a loss for  

SGB holders. Now physical hold may be price.  So again, let's go back to that example that  

if you were having 100 grams of gold in 2015, was  there any obligation for you to hold it till 2023?  

Maturity 2023 point artificially, the price of the  gold when it was time to repay the bondholders.

This is exactly the point that I made earlier.  Also that. See guys, there are two types of  

assets. One are called as real assets and  one are called as paper assets. Right?

Now, real assets are actual products. For example,  if you buy real estate, real real estate, land,  

something that is a real asset. If you simply go  and buy reits, that's not a real asset. Bond is  

nothing but a promise of repayment, right? And  actually just a hazar ka note, jabandu ata 1000  

rupee note ban and all that stuff,  then that's a promise that is void.

In fact, if you zoom in on this 1000 rupee note,  the RBI governor has signed it saying that hey,  

we promised to pay the bearer a sum of rs1000,  right? I mean you have to go waste your time  

then time and all that stuff. So there is a reason  why us has never banned its own note. So anyways,  

leaving that discussion aside, the  larger point that I was trying to  

make was very simple. That see this bond price  is controlled pretty much by the government.

By making these type of changes which they made,  they can keep the price of gold artificially  

low when the time comes of repayment. So if  you are someone who is looking to buy gold,  

please buy it in physical format, right? It's  legal to buy gold in India up to a certain limit.

So that is the reality of it.  And gold is used for hedging.  

So do not buy it in crazy amount. So  that is a simple format in which you  

should do. And this is something that I  have been saying over the last one year.

Invest myself in gold. The short  answer as of now is no. The reason  

is that I have other hedges. For example, I  invest in bitcoin. I invest in real estate.

So these are like limited supply assets that I  anyways pick. So there is no need for me from  

a portfolio level to buy gold, right? So this  is my viewpoint. And in India, there are issues  

with like gold purity and all that stuff. If  you speak with your jeweler friends, they are.

This is something that they are  going to specifically tell you,  

right? You don't need to take my word for  it. You go and speak with jeweler friends,  

not jewelers. Okay? So they  themselves will tell you that.

Okay, you know what? Now many of you will say  that is not my job, right? I cannot like you  

know, my quality control is not something  that Akshat can do, right? Quality control  

is something that the government should do. That  is not the power that people have vested in me.

And I cannot do that. I can simply educate you  about the existing options there. So therefore,  

I will not invest in gold. Or if  I have to invest in gold, I will  

definitely buy physical, right? So this is one.

And this is like a very quick  chart about when the sovereign  

gold tranches were released and when are  they set to mature. Okay. Now comes the  

second asset class stocks. The second  asset class is real estate. Right?

So real estate, because a normal  thought process, a real estate.

See, two major changes have happened. One is that  indexation benefits have been withdrawn. Now, what  

is indexation benefits? I'll explain. An LTCG has  been cut from 20% to twelve and a half percent.

So, yeah, tax, come over. This  is very nice. Right? And. Right.

So, okay, so let's understand it that what type  of real estate you should purchase now. So,  

okay, what is the meaning of indexation?  Indexation simply means that let's say  

that you purchase a property in 2020, right?  And the property value is one crore. Okay?

20. 212-022-2023 and 2024, right?  So these are four years that you're  

holding the property. Now, Manke Jaloki, in  the economy, inflation is 6%. Last year we  

in 2021 also inflation was 6% here also  is 6% here also 6% here also 6%, right?

This property is assessed and as per  inflation, you know, 1234. So 24%  

inflation to Seogya, property value k three, at  least 1.24. That is the value of the property.  

Because the cost keeps on rising. So therefore,  this is what the value should minimum be, right?

Or the assessed value. you sell  this property in 2024 at 1.5,  

right? 1.5 cr. So differential, get Taya.  So the differential is 26 lakhs, right?

So 1.5 -1.24 which is equal to 26 lakhs. So  is pay apki tax liability banti, which was  

20% before. Now what the government  is saying is, it's very simple.

Six. Six. What we are going to consider is  1.5 you sold. This is what you purchased,  

one cr. And the amount on which you will have to  pay capital gains is 50 lakhs is 12.5%, right?

So this is the mathematics. I am not going  into finer details. I am explaining it with  

the ease of understanding. Not like, you know,  giving you accurate like ca type gyan. Okay.

But I hope you got the complicated concept of  indexation and yago koi vatagani. And this is  

where I come in. And of course I'm going to tell  you what is actually going to happen. There are  

a couple of tweets also that I've done on  this topic. In case you are interested.

You can read more details, but short. Okay.  So basically what happens is that in India,  

the stamp duty on properties is on  at least luxury properties. It's 9%.  

Depending on the state, it might be  little bit less, but let's assume 9%.

Now, when does the government make this  money? Well, when you are buying a house,  

right? Let's say you will pay 9% and that's it,  right? And then you might hold this house for  

the next 50 years, right? So how much money did  the government make over a period of 50 years?

Property tax. So they only  made like 9% government.

Okay. Right. Okay. What we can do is that  we can push people to maybe sell this house,  

right? And every two, two years  people start selling the house.

So you have a 1.1 crore apnea. 9%. Right?  Apnea Malo 1.21.3. After two years,  

then this person also paid like 9%.

So basically what has happened here is that  the frequency of transaction of property has  

increased and this is bringing more and more  money for the government. So government's  

focus has been here, right? You  don't become investors in properties,  

okay? What you do is that you trade  on properties because up trading,  

that is when we are going to make money. But  if you are someone who buys a house, right,  

and holds it for 50 years, and then they will  have to pay a crazy amount of taxes on it, right?

As per the current norms. So  this is the situation. Long term,  

investing in real estate is not something  that has been encouraged. Short term  

trading on real estate is what is being  encouraged. This is the game plan right?

Now, does that mean that real estate market  is dead or is it a bad investment? The short  

answer is absolutely not. Real estate now  becomes a very good investment. But if you  

know what you're doing and this is something  that people will typically not teach you. Now,  

I do run a real estate course  in case you guys are interested.

I teach everything from scratch, right?  From financing, scouting properties,  

how to analyze properties, international  properties, all that stuff. I personally  

go visit a lot of international destinations.  Thailand, Dubai uploaded and now I'm going to  

talk about Istanbul market also. In  fact, Dubai upload over iv, right?

I'm here in Dubai. I'm shooting more videos.  So I'm going to explain all that on my course.  

So in case you guys are interested, you  can definitely check it out. So, okay,  

so coming back to the topic, the game that  is going to happen is trading on properties.

Now, how exactly are properties traded?  Because bolinge gets a 9% stamp duty  

kara gap trade. Karogi, a builder.  But now the thing is very simple,  

right? Basically what people are going to do  is that they are going to acquire a property.

Acquire a property. They are going to add value to  that property. And then as the long term capital  

gains hit, they are going to flip it, right?  Because the property tax has been , the capital  

gains on properties have been reduced from 20%  to 12.5%. So if you find tradable properties,  

those are exceptionally good  properties to own right now.

Now, what is the meaning of tradable  properties now? Tradable properties,  

for example, people typically say, you  know, under construction. complete. But  

you buy it and then you flip  it because price. Bharajati.

Now, why does price go up? Because value is  being added. It has moved from being uncompleted  

to a completed unit where the uncertainty  has gone out. Right. Renovated properties.

Property. Karidi, renovate Kara.  Right. And then you sell it off. Right.

Within like two years. Right? So that is value  add. You convert something into an Airbnb,  

so that becomes a value add. All  these are value added things and  

that increases the trading of properties.

Now, this is something that I'm going to  cover more on my course. I am going to  

add more details to this entire strategy. But  these are the type of properties that you need  

to buy. If you're buying random properties,  you will lose money, like anything on this,  

both by buying exceptionally high rate  properties from builders and on top of that,  

losing money because of taxation. Okay, so now  it's not buy and hold game on properties, right?

This is probably the only exception where long  term investing is not encouraged anymore. Okay,  

so now comes the third category, which  is stocks, right? Stocks. There are like,  

you know, two types of stocks that we can  speak about. One is unlisted stocks, right?

Unlisted stocks. And listed stocks. Now listed.  The ones that you and I trade on. NSE BSE.

Right. And Zerodha coin app and all that up.  Stocks. And, you know, all these Dunya Vargi apps  

use Karger. We only buy, like, companies like  ITC and, you know, HDFC bank and all that stuff.

So these are listed companies, right?  Unlisted companies. Kyoti just a for  

example, Swiggy. Now, Swiggy is an  unlisted company, right? It will.

It is. It will launch its IPo, right? Once  its IPO is launched, it becomes a listed  

company. Now where is the benefit now, right?  I would say that pre IPO market is favorable.

A lot of private company wealth will go, right?  So this is one major change that will happen,  

right? IPO Ke bar, this company that is listed,  it's not as if that stock market will crash or  

something because the taxation moved from  10% to 12.5%. But what is going to happen  

are two major changes. One is that, see,  fi is are going to analyze their positions.

Key, do they really need to go through  this higher taxation? Are there other  

better markets? But indian government  has already made DII is very strong.  

So DIis go to India, we invest, right? They  are anyways going to pay 12.5% and that's it.

So indian stock market, is this a good move?  Absolutely not. Now why am I saying it? Because  

in India, like 5% people invest in equities,  right? Majority money goes into problem.

Money actually started moving from fds to  stock market. So again, you have just delayed  

the growth or rather like, you know, sort of put  barriers to the growth of this number. It's not  

as if that this number will not grow. This will  definitely keep on growing. Because you know,  

you ultimately need to beat that segmental  inflation of 910 percent and FD's.

Do not beat it. You pay like crazy  taxation. tax. So there is no other  

option for most people but to invest  in mutual funds. Listed companies.

This is the primary go to thing. But  I think that a good alpha lies here,  

right? In unlisted categories. How to  invest in unlisted stocks. I will start  

releasing some commentary from  tomorrow on my member community.

Also, I will explain how I am investing in  unlisted companies like Swiggy, HDB financial,  

etc. Etcetera. So commentary. But I just  simply wanted to touch upon the fact that  

this is where alpha lies, right? So there is  a good chance that growth will come from here.

Not necessarily here. This is already  a little bit bloated as of now. So if  

I have to put in new money, how  will I exactly put right? I mean,  

I'll put the entire video together.  So there are three, four key points.

Okay. So if I have to do sip, I will continue to  do it in listed space. No problem. Listed space,  

not an issue. If I'm looking for like two x, three  x opportunities, I will go for unlisted space.

This is again very, very interesting for  me. Number three point. If I have to do  

bulk investing, right? Bulk investing,  I will go and buy tradable properties,  

right? So this is again a very important aspect.

Because contrarian. Unless you are contrary  and you will not make money. There are people  

who made fun of me. Oh, apnea. Goa  invest, karadiya, this, that stuff.

Why those investments have grown like crazy. Now  there is interest in Goa, right? But when I was  

investing, there was hardly any interest in that  point in time. Whatever investments I had made,  

they have given exceptionally good returns. In  fact, even better returns than stock markets.

The point I am trying to tell you is that  people make money by understanding nuanced,  

insightful points, not by  general general staff. Equity.  

Equity. When no one was buying like in  2021, panic. 2022, panic macha wata.

You go and check my videos.  I was buying like anything,  

right? And that resulted in good  gains. Now in 2024, we are looking  

at a stock market all time high. Now  this is not a bulk buying opportunity.

So please notice the word bulk buying. Okay?  Sip. Yes, very good. You can continue to do it.

Not a problem. In fact, right now I would  rather say that Nasdaq or international  

investing is much better or has become more  lucrative. Now Nasdaq has corrected quite a  

bit. Some good stocks like Google.  Commentary on my member community.

Also that Google itself is  corrected by 9% in a month,  

right? So which is a fairly big fall and  it's a good aggregation point. I will also  

talk about other tech companies in the US that  I'm looking to buy. So international investing.  

International investing is something  that I am building my portfolio on.

I will aggregate or build more of my positions  here. This is very important. Now why is this  

important? Because at the end of day,  we should not forget the fact that our  

currency is getting devalued quite a lot.  For example, take a look at this chart.

When I went to insead at that point in time,  US dollar was like 60. Now it is at 84,  

right? And roughly correction, 35 40  odd percent correction has happened.  

It's lot of currency devaluation has  happened. So in order to protect that,  

you need to build like a slight  international oriented portfolio.

This is specially applicable for people who  have more than let's say 50 lakh worth of  

liquid wealth. You should start looking at  little bit of international diversification  

even if it is not very tax friendly. This is  something that I teach on my courses. Also,  

it is hard to give public advice on  this, but there are tax efficient  

ways of investing internationally. So that  is something that you need to understand.

So, yeah. So this is my broad, macro  overarching thesis of investing. I  

hope you enjoyed the video. If you did, do  press the like button and I'll see you soon.