Don’t Put All Your Eggs in One Basket
A Lesson from Sanjeev’s
Story
The mid-morning hum of Bharadhwaj
Investsmart was in full swing when the reception phone buzzed for the fourth
time that day. “Sir, Mr. Sanjeev has called again,” the receptionist whispered to Vaidy, the
firm’s founder and seasoned wealth advisor.
For two days, Sanjeev had been
relentlessly seeking an appointment. That afternoon, he finally arrived - tall,
well-dressed, but with tired eyes. The moment he sat down, his story tumbled
out.
A Real Estate Fortress
From the outside, Sanjeev’s life was
enviable. A senior executive in a multinational, a hefty salary, and a line-up
of properties:
- A spacious Mumbai apartment for his family
- An ancestral-style house in Kerala
- An “upcoming luxury project” touted as the next
big thing
- A weekend farmhouse in Karjat
On paper, his net worth sparkled. But
almost all of it was locked in real estate.
The Sudden Jolt
Two weeks earlier, Sanjeev’s mother
was hospitalised unexpectedly. Surgery, medicines, and aftercare expenses
mounted quickly.
When he opened his banking app to
transfer funds, he froze - his account balance was alarmingly low.
EMIs for his properties and steep
maintenance charges swallowed most of his monthly income. The “upcoming
project” was still years away. Selling the farmhouse would take months, and the
market wasn’t favourable.
Sanjeev was asset-rich, but cash-poor.
A Hard Truth
Vaidy listened patiently before
saying, “Sanjeev, you’ve built a fortress - but one with no gates. Your wealth
is trapped inside.”
He explained the old principle: Don’t
put all your eggs in one basket. Real estate can be valuable, but overloading
on any one asset class leaves you exposed.
Liquidity - the ability to access cash
without significant loss - is as vital as returns. Life’s emergencies, job
changes, or sudden opportunities all demand funds you can tap into instantly.
A Balanced Plan
Vaidy suggested:
- Keep one primary residence, reduce exposure to
multiple illiquid properties
- Allocate part of his portfolio to diversified
equity mutual funds
- Maintain an emergency fund covering 6–9 months’
expenses in liquid or ultra-short-term debt funds
- Get adequate health and critical illness
insurance
“I thought I was being smart investing
in what I could see and touch,” Sanjeev admitted. “But I never realised I’d
feel this helpless when I needed cash.”
The Takeaway
Real estate offers stability and
tangible value - but it’s not the whole picture. Over-concentration can turn
wealth into a cage.
True financial strength lies not just
in assets, but in the freedom to use them when it matters.
Diversify. Keep some assets liquid.
And remember - even the grandest fortress is useless if you can’t open the
gates when you need to.
The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation.
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