PM Modi, top ministers keep assets in real estate, banks; stay clear of stocks

It’s not the equity market, instead real estate -- the arch-enemy of equities – where the Indian Prime Minister Narendra Modi and his ministers have chosen to keep their assets.

The latest disclosures of assets and liabilities of the Cabinet ministers show that real estate is the hands-down favourite followed by bank deposits, insurance policies and gold.

Total assets of Modi and his ministers amount to a staggering Rs 91.1 crore, out of which only a fraction (2.1 per cent) is allocated to equities.

(Image credit: Economic Times)

The Prime Minister himself has allocated 79 per cent of his assets to real estate followed by 15 per cent to bank deposits, 1 per cent to gold and a big fat zero per cent to equities. For a man who has been a market mover ever since he was named the prime ministerial candidate of the BJP way back in 2013, his allocation to equities is negligible.

Rahul Gandhi, his political opponent, has allocated 14 per cent to real estate, 9 per cent to bonds and only 1 per cent to bank deposits. His short-duration mutual fund investment, which mainly comprises short-duration bonds, has given an absolute return of 17 per cent in the past five years.

Manohar Parrikar, the outspoken defence minister, is the only saving grace for the equity market, with close to 12 per cent allocation to stocks, followed by Ravi Shankar Prasad, who has 6 per cent of his assets in equities.

However, it is still ironic given the efforts that the government has put in to bring more money into the stock market and the general perception of it being a champion of the market culture.