Summary of Saurabh Mukherjea, Rakshit Ranjan & Salil Desai's Diamonds in the Dust

By IRB Media

Get the Summary of Saurabh Mukherjea, Rakshit Ranjan & Salil Desai's Diamonds in the Dust in 20 minutes. Please note: This is a summary & not the original book. Original book introduction: Over the last few years, there has been a growing realization among Indians that their life's savings, the bulk of which are parked in physical assets like real estate and gold, are unlikely to help them generate sufficient returns to fund their financial goals, including retirement. At the same time, many have lost their hard-earned money trying to invest in financial assets, including debt and equities. Such losses have occurred due to many reasons, such as corporate frauds, weak business models and misallocation of capital by the companies in whose shares unsuspecting investors parked their savings. What options do Indian savers then have to invest in, and build their wealth?

• Language: English
• Publisher: IRB Media
• Release date: Dec 6, 2021
• ISBN: 9781669341000

IRB Media

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Insights on Saurabh Mukherjea, Rakshit Ranjan and Salil Desai's Diamonds in the Dust

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 1

#1

Investing on the basis of grandmothers’ advice and stories means that the vast majority of Indians are now investing in assets that cannot provide returns in excess of inflation. This skewed portfolio allocation is leading to millions of retirement funds being depleted by inflation.

#2

Many people invest their money in real estate, gold, and fixed deposits, but these investments rarely make them rich. These investments also take away large portions of the investor’s wealth due to high compound interest.

#3

The author met a woman named Devika, who was a successful real estate developer, but was unable to manage her money effectively. She was not able to fund her retirement, despite being wealthy.

#4

Rajveer, a corporate financier, was thrifty and had a knack for numbers. But he was unable to generate any wealth for himself or his retired parents, who now live off their fixed deposits.

#5

The report states that the average Indian household owns 84 percent of its net worth in real estate and other physical assets, and only 11 percent in financial assets. Retirement accounts play a minimal role in household balance sheets.

#6

There are four myths that affluent Indians face, and these myths fuel the investment decisions they make.

#7

According to the Reserve Bank of India, households hold 11 per cent of their total wealth in the form of gold. Over the last three decades, the price of gold has grown at an annualized rate of 9. 2 per cent, whereas the BSE Sensex has grown at an annualized rate of 10. 4 per cent.

#8

Gold does not offer superior returns compared to equities, and is not a suitable substitute