Kangana Ranaut’s ₹91 crore assets: Wealth advisors call her ‘queen’ of assets, but cash flow poor

Total assets owned by BJP’s candidate from Mandi, Himachal Pradesh Kangana Ranaut are valued at nearly ₹91 crore, showed the nomination papers she filed with the Election Commission of India (ECI) on Tuesday.

The 37-year-old actor has ₹2 lakh in cash and shares amounting to ₹1.22 crore in her companies Manikaran Films and Manikarnika Space LLP.

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Other assets include 50 insurance policies issued by Life Insurance Corporation (LIC), gold weighing 6.7 kg amounting to ₹5 crore, silver weighing 60 kg amounting to ₹50 lakh and diamonds amounting to ₹3 crore. Each of her 50 life insurance policies has a surrender value ranging between ₹one to ₹11 lakh.

What do wealth advisors say

Investment advisors MintGenie spoke to believe that Ranaut should diversify her assets into equity and mutual funds to earn higher returns on investment.

Around 87 percent of her assets are in physical assets, so she is asset rich and cash flow poor, believes Sridharan Sundaram, a Sebi-registered investment advisor and founder of Wealth Ladder Direct. 

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“She should have at least 30-40 percent in financial assets. If there is a crisis, she can’t sell part of her property. She should expose to equity in Indian markets given her age and the Indian growth story -- – this is the only recommendation. As far as too many LIC policies are concerned, I am not sure if the maturity value of those policies will provide adequate liquidity considering her lifestyle,” he adds.

Ravi Saraogi, co-founder of Samasthiti Advisors, says that someone with ₹91 crore assets does not need a life insurance policy because this is more  than enough capital for the dependents to bank upon. 

“Moreover, she could have invested some funds in the shares and mutual funds. It appears that she doesn’t work with any wealth manager,” Saraogi adds. 

Preeti Zende, Sebi-registered investment advisor and founder of Apna Dhan Financial Services, says, “Her highest portfolio value is in real estate followed by precious metals. But both these assets fall in ill-liquid asset class category. Depending so much only on real estate and precious metals could be hazardous to the portfolio return."

"Ideally, she should diversify 50 percent of this to equity and debt Mutual funds for better return and liquidity. She also holds 50 LIC Policies. All these policies may be traditional plans where insurance and investments are mixed and that results in poor returns and high costs. She should have gone to a pure-term plan for life insurance purpose and should have invested the extra premium in mutual funds for better cost and superior return,” she adds.

Decline in income

Ranaut’s income, as per the nomination papers, stood at around ₹4.12 crore for fiscal 2022-23, which was substantially lower than what she earned in the preceding years. The actor-producer-politician declared her income for FY 22 to be ₹12.3 crore, and ₹11.95 crore for FY 21. In fiscal 2019-20, she declared her income to be ₹10.3 crore.