A few days ago Saina Nehiwal had an interview where she said she ‘invested’ only in LIC products. I have no views on that, just that as long as she does not come and ask me, I do not know / care what she does.

I was intrigued at the answers / comments on various sites including the FB groups. One of the readers said “If you have more than Rs. 1 crore, it does not matter where you invest”. I can also say “it does not matter where you invest if you have Rs. 50 crores”.

Both answers are WRONG. In both cases the ‘advisor’ is refusing to remove his own shoe while trying to get into Saina’s shoes. Saina earns a lot of money, no doubt, but let us not get carried away with her income and net worth. She should be having a net worth of about Rs. 15 crores and an annual income of Rs. 2 crores (pre tax). This puts her in the very rich category, but with a huge, huge, huge caveat. Her earning life is just another 4-5 years at the maximum. She has to earn enough and keep it away for the rest of her life.

So we are talking of an earned corpus of about 40 crores and this to last another 50 years. Assuming she wants to start an academy, she needs to buy land, incur cost of construction, spend on publicity, etc. Then she will have to hire trainers, and wait for the academy to be full for her to make some money. Such a project can easily cost her upwards of Rs. 10 crores – assuming that she gets the land free.

Seriously, she is not into too much of big money in terms of how much she needs to live for the rest of her life!! Well at least not enough to forget asset allocation. This is because her lifestyle changes must have taken her to a big palatial house, expensive vacations, and a very, very long time in retirement (retirement means not earning enough). She may also lack the business and PR skills required to run an academy and could be short changed easily.

Now take the income of a Virat Kohli – it has to be in the range of 150 crs. Rs. and with an annual income of Rs. 20 crores in endorsements, IPL, etc. – and a net worth in 3 digits. His requirements will be very different than say Saina’s.

Now let us take the networth and income of SRT. He is the God. Net worth of Rs. 1000+ crores and obviously STILL (at age 43) earning from endorsements.

If i were the financial adviser to the 3 of them, would I be saying “Oh you are a HNI put all your money in LIC, it is government guaranteed” NO. SURELY NOT.

I would still start from the 1st principles. Do a Goal setting work sheet – do you want to run a restaurant, do you want to be involved actively in managing ANY business, do you wish to do charity, how do you wish to help your children, and how much of help do you want to give your children, will you give money to your children to do business, how much will you want to spend on travel, will you be setting up a coaching academy, …the questions are endless.

Only after I have all the answers will I be able to say what they should do with their money.

Believe it or not, Saina, Virat and Sachin cannot help each other in financial planning. Many DIY people start giving advice. I find that hilarious. They do not have enough experience to think of the various opportunities while investing and the various risks. For example I did a post where I asked a friend with about Rs. 20 crores to create a trust to protect that property from a bad marriage of the kids. Only with experience and seeing such situations can one decide what to do.

So my advice for Saina? Play badminton and hire an IFA. DIY is not for you. Seriously, you have better things to do.

No. I am not offering my services. Clearly, no.

I know some of the fund managers of SRT, so will not comment too much, just to tell you it is more than well taken care of.

See what a more sensible John Abraham has to say – by the way he does use the services of a food IFA 🙂



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