According to his 2013 affidavit as Prime Minister, Dr. Singh’s total assets were valued at Rs. 11 crore. Both he and his wife, Gursharan Kaur, had invested in eight fixed deposits
India’s former Prime Minister, Dr. Manmohan Singh, passed away last night (Thursday, December 26, 2024). His life and legacy are being remembered through countless stories and anecdotes in newspapers and on news channels. Often referred to as the “Sardar of the Indian Economy,” Dr. Singh possessed an unparalleled understanding of finance. He served as the nation’s Finance Minister and later as Prime Minister for two terms. But have you ever wondered about the investment tools he used to grow his wealth? Did he rely on the stock market, trade futures and options, or stick to traditional methods? Lets delves into Dr. Singh’s approach to investments.
The economic reformer who preferred traditional investments
When Dr. Manmohan Singh became the Finance Minister in 1991, the Sensex stood at 999 points. By the end of that year, following his groundbreaking budget reforms, the Sensex nearly doubled. Despite his significant role in shaping India’s economic landscape, Dr. Singh refrained from investing in the stock market. Instead, he prioritized traditional investment tools like fixed deposits (FDs) and post office savings schemes.
FDs and post office savings
According to his 2013 affidavit as Prime Minister, Dr. Singh’s total assets were valued at Rs. 11 crore. Both he and his wife, Gursharan Kaur, had invested in eight fixed deposits, ranging from Rs. 1 lakh to Rs. 95 lakh. By 2013, their FDs and bank savings collectively amounted to Rs. 4 crore, while their post office savings stood at Rs. 4 lakh.
By 2019, the value of Dr. Singh’s assets increased to Rs. 15 crore. His properties in Delhi (Vasant Kunj) and Chandigarh (Sector 11B) were collectively worth Rs. 7 crore. Gursharan Kaur owned 150 grams of gold valued at over Rs. 3 lakh, and their bank FDs and savings accounted for more than Rs. 7 crore. Additionally, they had invested Rs. 12 lakh in the National Savings Scheme (NSS). This steady growth in wealth was largely driven by their investments in FDs and NSS.
A testament to financial discipline
An example from February 2, 2013, highlights Dr. Singh’s disciplined financial planning. On that day, he invested Rs. 2 crore in three FDs. Over three years, these grew to Rs. 2.62 crore, which he reinvested. Within six years, his wealth grew by Rs. 4 crore without venturing into the stock market. This disciplined approach ensured that his investments were secure and stress-free, a factor he deeply valued.
Why Avoid the Stock Market?
In 1992, during a period of stock market volatility, Dr. Singh, then Finance Minister, famously remarked in Parliament, “I will not lose my sleep over the stock market.” This statement not only reflected his personal investment philosophy but also underscored his preference for traditional, low-risk financial tools like FDs and post office schemes. For Dr. Singh, the ability to sleep peacefully was a luxury he valued more than high-risk investments.
