Markets, bank deposits or gold: Where do government’s top ministers invest their money?

New Delhi: It has been two years since the central government led by Prime Minister Narendra Modi stormed to power with a thumping majority. Besides corruption and the despondency that had crept in towards the second half of the UPA’s decade-long rule, it was the promise of change and economic growth that brought this government to power.

The new government rode to power with high expectations, particularly from the stock markets which had been hit hard by a spell of ‘policy paralysis’ witnessed in the erstwhile regime. Whether the Modi government has managed to live up to its promises of economic development could be a subject of another debate, but one set of data may not particularly bring much cheer to the markets.

Modi, often pegged as the ‘market-mover’, and his top ministers do not take too fondly to the equity markets, data compiled in a research based on the details of their assets and liabilities has revealed. On the other hand, the tumultuous real estate sector, which has seen its fair share of ups and downs in the past years, reins as the top favourite for most of these ministers.

According to the data compiled by ETMarkets.com, Modi and his ministers – otherwise involved deeply in bringing more money into the stock markets through various measures and initiaitves – have ironically given this segment a complete miss.

Meanwhile, the real estate sector has emerged as a clear favourite among the top ministers as their winning choice for investing their money in. Here is what the data throws up.

Narendra Modi

Of the total assets declared by Modi and his ministers (Rs 91.9 crore) only a fraction (2.09 per cent) has been allocated to equities. Bank deposits, on the other hand, constitute 38.57 per cent followed by real estate at 31.48 per cent, bonds at 7.52 per cent and gold at 3.55 per cent.

As far as the Prime Minister himself is concerned, a majority of his asset allocation goes towards real estate. 79 per cent of his assets have been allocated to the real estate sector, which includes agricultural land as well. Next in the list of PM Modi’s allocations is bank deposits which constitute 15 per cent, followed by 1 per cent to gold. The share of investment in equities for the PM stands at zero.  

Arun Jailtey

Finance minister Arun Jaitley, who champions the cause of drawing equity investments, has no particular fondness when it comes to personal investments. Much like the PM, Jaitley’s investments in equities also stand at zilch. Of the total assets of Rs 49.51 crore, bank deposits constitute 36 per cent, real estate comes in at 25.49 per cent and gold at a nominal 0.35 per cent.

Ravishankar Prasad

Telecom minister from Bihar Ravishankar Prasad has a more diversified portfolio. Of Rs 14.9 crore of declared assets, 47 per cent is invested in bank deposits, 25.02 per cent in real estate, 22.42 per cent in bonds, 5.56 per cent in equities and 0.04 per cent in gold.

Manohar Parrikar

Real estate is the biggest draw for Defence minister Manohar Parrikar as well who has invested 26.35 per cent of his total assets worth Rs 6.15 crore into it. He has put in 3.87 per cent in equity 1.56 per cent in bank deposits and 1.02 per cent in gold.

Rajnath Singh

Home minister Rajnath Singh also has a major chunk of his investments in real estate. Of the Rs 2.5 crore assets declared, a sizable 74.10 per cent is in real estate, followed by 24 per cent in bank deposits and 0.7 per cent in gold.

Sushma Swaraj

External Affairs minister Sushma Swaraj’s portfolio, however, differs from the list of top ministers so far.  Of Rs 5.65 crore in total assets, a majority of 46.82 per cent is invested in gold, while bank deposits and real estate constitute 27 per cent and 24.73 per cent respectively.

Smriti Irani

HRD minister Smriti Irani, who has stayed in the news ever since her appointment, has dedicated 67.18 per cent of her portfolio to real estate. Of her total assets of Rs 4.14 crore, bank deposits constitute 7 per cent and equity makes up for 0.08 per cent.

Venkaiah Naidu

As per records, Urban Development minister Venkaiah Naidu has no investment in real estate or equity. 40 per cent of his asset portfolio is dedicated to bank deposits.

Nitin Gadkari

Transport minister Nitin Gadkari has dedicated the maximum chunk of his total assets of Rs 86 lakh to real estate. His portfolio has 81.47 per cent invested in real estate, 5 per cent in bank deposits, 4.73 per cent in gold and 3.21 per cent in gold.

Suresh Prabhu

Railways minister Suresh Prabhu has dedicated 52.45 per cent in real estate, while 8 per cent is in bank deposits.

Here is a breakdown of investments by India's top ministers based on their disclosure of assets: