I ranked India's top 5 investments (#1 generates 20%+ CAGR!) | Akshat Shrivastava

Finance-focused summary (ranked assets #5 to #1)

#4) Luxury real estate (India-focused; “true luxury” only)

Core claim / why it ranks high

• Supply scarcity & localization: “Luxury” is defined as limited supply and located in areas where rich people concentrate (examples: Panjim (Goa); also Mumbai in general).
• Lower wipeout risk (framed): High-end demand “always outstrips supply” for high-quality assets.
• Cash-flow + reinvestment: Example given: if you own 100 units and get ~10% yield, that rent becomes “risk money” to reinvest into higher-return assets.

Key cautions / requirements

• High capital requirement: You need a portfolio in excess of ~25–30 CR to buy luxury real estate meaningfully.
• Liquidity locked: Biggest drawback—a large portion of portfolio liquidity is blocked.
• Mislabeling risk: Many “luxury” listings aren’t truly luxury (builder uses “luxury” marketing term).

Alternate if you can’t buy luxury

• Buy protected land where supply is limited (he prefers “land value appreciation” vs mutual funds, but cautions not to compare land to non-luxury real estate on the same basis).

---

#3) Direct stocks (vs mutual funds)

Framework / reasoning

• Goal: build a direct stock portfolio (minimum ~20–25 stocks) to reduce the “all goes to zero” concern from concentrated/poor picks.

Methodological points

• Lower commissions: He argues that if you learn and invest for ~40 years with ~1% commission saving, the long-run portfolio difference could be ~30–35% (relative to mutual funds, in his example).
• Skill improvement: Learning investing by doing improves decision-making and reduces “dumb mistakes.”
• Exit skill: Direct stocks let you learn when to exit; he claims mutual fund investors often lack a clear exit framework.
• Tax efficiency: Mentions tax loss harvesting / capital gains management (details not quantified).
• Cash-flow flexibility: With direct stocks, you can sell selected holdings to generate liquidity; also can buy dividend stocks if needed.

Risk note

• He explicitly acknowledges “wipeout risk exists” in direct stocks and mutual funds.

Disclosures

• He shows his brokerage account / claims “real returns” over the last 2 years (no exact CAGR/figures provided in this excerpt).

---

#2) Global ETFs (ranked above Indian mutual funds in his argument)

Named instruments / index benchmarks

• Nifty 50 (India)
• QQQ (tech-heavy US large-cap; explicitly described as tech)
• S&P 500
• Small/midcap index (grouped together; treated as higher return but higher risk)

Return and FX adjustment logic (numbers mentioned)

• He uses “long frame” benchmarks of 3, 5, 7, 10, 15, 20 years (as typical lookback periods).
• INR return for Nifty 50: stated as ~12.5% (INR terms)
  • subtracts ~3–4% per year FX depreciation to estimate USD-adjusted returns of ~8.5–9%.
• Small/midcap: stated as ~20–21% in INR terms
  • USD-adjusted: subtract ~4% → ~17%.
• QQQ USD return: stated as ~17–18% (USD)

Main comparative conclusion: For similar return levels, QQQ has a lower risk profile than small/midcaps; therefore QQQ is “better risk-adjusted.”

Strategy guidance (“backbone” approach)

If you don’t have time for complex selection:

• “Just buy these two” (his suggested backbone): QQQ + Nifty 50 + S&P 500 (he mentions these collectively, then calls them a portfolio backbone).
• The excerpt frames small/mid as less desirable risk-wise for similar returns.

Tax / legal caution + fix

• Addresses estate tax issues and suggests UCITS-compliant ETFs:
  • Claims “zero estate tax issues.”
  • Examples of UCITS variants mentioned: CNDX, CSPX.
  • Says these are Irish-domiciled ETFs traded on US markets (as described in the excerpt).

Risk & performance claims

• Says wipeout risk is extremely low, growth rate high, and tax efficiency moderate (roughly comparable to long-term taxation).
• Notes you save money in USD and reduce exposure to INR currency depreciation (FX-tailwind framing).

---

#1) Direct global stocks (best “India-legal” route via LRS)

Why it’s #1 (his core thesis)

• Indians can invest in global stocks legally using:
  • LRS (Liberalized Remittance Scheme): up to $250,000 per year
  • Mentions remitting about ~2.5 crore INR/year (approx).
• Claims future flexibility for tax residency changes:
  • If money is held via a US brokerage account, it may be possible to become a tax resident elsewhere and potentially achieve 0% capital gains (requires a planner; no specific jurisdiction/rules provided).

Methodological / capability upgrades (advanced investing tools)

• Options strategies for NRIs (explicit):
  • Example: selling a call on Meta (META).
  • Example assumptions:
    • Meta stock at $600
    • If within ~1 month Meta reaches $700 (~+15%), shares get sold at $700
    • He claims you also receive “almost 10% yield” from the option premium (premium not actually quantified beyond this claim).
• Claims options + direct stock investing:
  • can protect from wipeout risk
  • provide best growth option
  • offer high cash flows
  • and “decent tax efficiency” (without specific rates).

Capital sizing example

• Mentions having a large portfolio example of $4 million
• Claims option strategies could be built on ~$1.5m to $2m to generate ~8–10% yield (again, no independent performance table in this excerpt).

Portfolio construction / mixing assets

• Emphasizes mix-and-match rather than all-in:
  • “Little bit” in mutual funds, real estate, cash, gold, direct Indian stocks, global direct stocks
  • “Accelerate” in the area where investing style/conviction converges.

---

Key extracted tickers / instruments / terms

• QQQ (ETF; Nasdaq-100 tech large-cap proxy)
• CNDX, CSPX (UCITS-compliant ETF tickers mentioned as variants)
• Nifty 50
• S&P 500
• Meta: META (used in the options example)
• LRS (Liberalized Remittance Scheme; policy instrument, not a ticker)
• Options (call/put strategies referenced)
• Mutual funds, cash, gold
• Luxury real estate, land

---

Numbers explicitly mentioned (with context)

• Luxury real estate eligibility threshold: portfolio > ~25–30 CR
• Example rent yield: ~10% yield
• Direct stock portfolio size: ~20–25 stocks
• Commission saving claim: ~1% commission saved over ~40 years → ~30–35% portfolio difference
• FX depreciation assumption: ~3–4% per year INR-to-USD adjustment
• Performance benchmarks (as stated):
  • Nifty 50: ~12.5% INR
  • Nifty 50 USD-adjusted: ~8.5–9%
  • Small/midcap: ~20–21% INR
  • Small/midcap USD-adjusted: ~17%
  • QQQ USD return: ~17–18%
• LRS limit: $250,000/year; stated roughly ~2.5 crore INR/year
• Meta options example assumptions:
  • Meta at $600
  • Target $700 in ~1 month (~+15%)
  • Claimed option “yield”: ~10%
• Options yield example: ~8–10% yield on $1.5m–$2m strategy sizing (with $4m portfolio referenced)

---

Step-by-step / framework elements (as described)

Luxury real estate selection framework (implied)

• Buy only “true luxury” = limited supply
• Buy in areas where rich buyers congregate
• Prefer localized scarcity (examples given: Panjim/Mumbai-type areas)
• If capital is insufficient, consider land as an alternative scarcity vehicle

Direct stock portfolio building framework

• Build a diversified 20–25 stock portfolio
• Learn investing via doing (aim: reduce mistakes)
• Use tax management (mentions tax loss harvesting)
• Manage liquidity by selectively selling holdings

Global ETF selection strategy

• Use a simple backbone approach: QQQ + Nifty 50 + S&P 500
• If concerned about taxes: use UCITS-compliant ETFs (e.g., CNDX, CSPX)

Direct global stock “advanced” toolkit (options)

• Use US brokerage access (enabled via LRS remittance)
• For NRIs, consider call selling / options strategies
• Target option premium/yield plus upside/assignment mechanics (example: META call)

---

Disclosures / cautions mentioned

• The excerpt does not clearly state “not financial advice.”
• He repeatedly says views are open to disagreement and encourages viewers to learn and plan.
• For advanced tax/residency structuring: advises talking to a financial planner; guidance is generic (no guarantee).
• Highlights risks (including “wipeout risk exists”), while also downplaying risk for ETFs and luxury real estate.

---

Presenters / sources

• Akshat Shrivastava (creator/presenter; the speech is in his voice)