Smart Spending: You can rent a yacht and live a day like a billionaire

Boats are a billionaire pursuit, but rigs can also be leased for parties, the weekend or quick jaunts.

Finance News : Any mention of yachts evokes images of the luxury boats owned by the wealthiest men in the world – the size of their ships directly proportional to the amount of money that’s spent on them. In that world, bigger is better; and around the globe, yachts have been a billionaire pursuit – from Aristotle Onassis’s 99-metre superyacht ‘Christina O’ to absconding billionaire Vijay Mallya’s 95-metre ‘Indian Empress’.

But what most may not know is that it’s possible to sail like a billionaire even if for a day or two because most owners lease their boats out when they aren’t using them. Case in point – can you rent ‘Ashena’ – a 45-metre superyacht with five cabins owned by Raymond’s boss Gautam Singhania? It’s possible if you cough up Rs 800,000 a day, and if that’s too steep for the wallet, there are other options that cater to every budget.

In the island metropolis of Mumbai, the business of boats is a less flashy affair with most owners being avid sailors as opposed to grandstanding tycoons who throw champagne parties for hundreds of people after an F1 race when docked in Monte Carlo or Barcelona. Which also means that ‘Ashena’ is an exception, and most of the boats range between 10 metres and 20 metres. A 20-metre boat can host a party for two dozen people with ease.

Also Read : To earn higher interest income, you have to take some measured risks

These boats can be leased for an evening or a weekend from any one of the couple dozen companies such as Gateway Charters, Sailing Stuff and Yacht Charters India in Mumbai. The upside: it’s cheaper than shelling out a few lakhs for a ballroom at a five-star hotel in the city.

Aashim Mongia, managing director of West Coast Marine Yacht Services in Mumbai says that there are at least fifty professionals who own boats and many do lease them out. The average cost of renting a yacht hinges on size and ranges from between Rs 20,000 for a few hours to a million rupees, depending primarily on size and amenities. He points to two broad sets of clients – those who throw corporate events such as TCS or Axis Bank, or then as a celebration for their clients or themselves.

“We’ve had finance companies bring 25 top-end clients, and they use the boat and for around Rs 300,000 for 25 people in an ambience that is far more unique than anything on land. The only catch is that the gateway of India shuts at 11 pm, so you have to return by then,” Mongia says.

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To earn higher interest income, you have to take some measured risks

For fixed-income investors, this is undoubtedly good news, as interest rates will go up. Banks like State Bank of India, ICICI Bank, HDFC Bank and others are slowing raising deposit rates.

Finance News : Interest rates in India are on the upswing. The benchmark 10-year G-Sec bond yield is up around 81 basis points over the past year. Currently, it stands at 7.77 per cent. And, there are expectations that yields would harden further in the second half of the year because the central government’s borrowing programme has been pushed back.

As a result, borrowing will be higher in the second half of the year. State governments, too, are also likely to borrow heavily. Given that 2019 general elections are fast approaching, there could also be some surprise expenses from the government.

For fixed-income investors, this is undoubtedly good news, as interest rates in India will go up. In fact, they already are. Banks like State Bank of India, ICICI Bank, HDFC Bank and others are slowing raising deposit rates. But, instead of just looking at fixed deposits from banks or non-banking financial companies, investors could earn higher interest income from other instruments, such as non-convertible debentures, fixed maturity plans and such.

Also Read : Smart spending: You can rent a yacht and live a day like a billionaire

For starters, if you want to wait and lock yourself into higher rates in the future, the strategy should be to be in shorter-term deposits or funds. Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors, says: “If you decide to invest in fixed deposits, go for a tenure of six to nine months. This will allow you to move to deposits offering higher interest rates if rates continue to rise in the near future.”

Deepesh Raghaw, founder, PersonalFinancePlan.in, adds: “At this point in time, however, investors should stick largely to shorter-duration debt funds that are not subject to duration risk.”

However, if you want to invest now, there are some options:

• Non-convertible debentures
• Accrual funds
• Opt for FMPs to circumvent interest-rate volatility
• Keep an eye on your hybrid funds