place to think

Sunday, March 20, 2005

The equity funds

In mumbai, one of the booming concepts is that of the real estate
equity... it works like this- you, like many many others, put your
money into an real-estate equity company . Now this company uses
everyone's money to buy a big piece of land in a posh area (like Santa
Cruz) hoping that someone will buy it. Now, such wish can rarely go
unfulfilled. so, when some entity buys that land, part of the profit
thus obtained (which could be huge) is shared among the equity
investors.

Now, unlike the share market equity funds, the probability of a risky
event (like an earth quake ) is very rare in this case - and so, the
investors go laughing all the way to the bank (good enough to start a
humour club in bank branches) all round the year.

Now, I want someone to come up with an equity scheme to invest in
elections - The company uses in depth analysis (provided by iim grads)
to select the best candidate to "invest" in. If he wins, the investors
reap huge benefits not counting the huge margin they will get. the
benefits include, photo session with the winner (if the person had
invested in the cm election) or special attention in all govt. offices
etc, etc.,

Well, there are gray areas - the candidate may lose. He might lose a
no-confidence. Or, the election results in a hung assembly. But hey,
if the company intelligently invests in more than one candidate, there
might be some respite.

1 Comments:

  • If predicting elections was that easy... News Channels would be the eauity masters of the world :) and if poll results actually turned out to be true... they wouldnt have had to hide their faces in shame after the real results came out :D

    By Blogger Prashanth, at 5:06 AM  

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