Welcome to our insightful column into the world of financial wisdom! In a time where the specter of financial frauds looms large in Kashmir, this column is curated to be your beacon of light, guiding you through the intricacies of money management and investment decisions. Financial literacy is crucial for making informed and effective decisions about managing money, investments, and overall financial well-being. Our aim is to empower individuals to make sound choices and build a secure financial future.
By Irshad Mushtaq
In the year 1965, the cost of per Kanal land at Rajbagh area in Srinagar was just INR 5000. Yes, you read that right, only Rs 5000 for a piece of land. Fast forward 57 years, and the value of that same land has skyrocketed to a staggering Rs 5 crore. That’s an annualized compounding return of 17.54%, showcasing the incredible power of compounding, which is often referred to as the 8th wonder of the world.
Now, the big question is, will real estate in Kashmir continue to provide the same 17.54% annual compounding return in the next 20 years? Let’s take a closer look through an example. If today’s per Kanal land is Rs 1.80 crore, and we expect the same historical return of 17.54% annually compounding, then in 20 years, the value of that land should be a staggering Rs 45.60 crore.
The question of whether history will repeat itself in terms of returns is a big one. Investors need to carefully consider where they put their money, looking for assets that can provide double-digit returns to cover inflation and secure good annualized returns over the long term. Quality financial assets may just be the best solution in that regard.
It’s important to note that before investing in any product, one should spend quality time on research and consult a trusted advisor for a better future savings and planning. After all, when it comes to investing, the key lies in making informed and educated decisions.
- The author is the founder of M.I. Securities and business partner of Sharekhan
Follow this link to join our WhatsApp group: Join Now
Be Part of Quality Journalism |
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast. |
| ACT NOW |
| MONTHLY | Rs 100 |  |
| YEARLY | Rs 1000 | |
| LIFETIME | Rs 10000 | |
