Tag: godrej
As per Moneylife,
August was a terrible month for the mutual fund industry. Equity funds suffered massive redemptions amounting to Rs5,671 crore and with sales of just Rs3,385 crore, the net outflow of as high as Rs2,286 crore. This has been the highest outflow since February 2012 which saw an exodus of Rs2,809 crore.
In a recent article in BS, the national sales head of a large fund house bemoaned “Understanding investors’ sentiments is not easy. It has now become an every-month phenomenon, despite making all possible efforts to retain clients.”
So we have the retail investors deserting stocks and mutual funds in droves.
Now consider the recent press release of Godrej Properties dated Sep 12, 2012,
In a single day, the Mumbai-based real estate developer sold over 1 million sq. ft. of space in its residential project in Sector 104, Gurgaon.
Godrej Properties Ltd. (GPL) (BSE scrip id: GODREJPRP), the real estate development arm of the Godrej Group, today announced that it has sold the entire 1st phase of its residential project, Godrej Summit, in Sector 104, Gurgaon. The first phase of this project had 695 apartments across 1 million sq. ft. of space.
As can be seen from the pictures, there is a queue of investors waiting in line to give their cheques.With the current prices of around 5500 psf, Godrej Properties has booked sales of 550 Crores in one day !!
So I guess the retail investor is alive and kicking.
He prefers to stand in line for realty rather than call his broker for equity !!
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The hypocrisy of Adi Godrej
In an interview to Tehelka, Adi Godrej made the following startling statement:
Why should it (compensation) run out soon? It can be invested. It can be made into a much bigger value than land. Land has the lowest appreciation of all assets. The best investments are in stocks. Somebody should advise them(farmers) to invest it in mutual funds so their wealth will rise faster.
Now this is fairly amusing coming from a man who is one of the biggest landlords in Mumbai.The Godrej group fought tooth and nail against the Maharashtra Govt in various courts to prevent the Govt from acquiring its lands under the Urban Land Ceiling Act.
At that time, Adi Godrej did not take the money and invest in stocks or mutual funds.
Along with hypocrisy, what is also appalling is the sheer financial illiteracy displayed by Adi Godrej.Land has given one of the best returns in India…much better than most stocks.
But not to worry.Indian farmers have more sense than these captains of industry.Its unlikely any farmer will heed his advice of selling their land and investing in stocks.
The only people who should worry are the investors in Godrej stocks !!