Where Do Celebrities Invest Their Money?

With income in crores, most top celebrities have personal financial advisors and dedicated teams to manage their wealth

When it comes to investments, people often try to seek inspiration from the strategies being used by wealthy individuals. Apart from top-ranking corporate leaders, businessmen, bureaucrats and politicians, the list also includes the top celebrities. Since the wealth of celebrities is managed in a professional and profitable manner, investors can adopt the same approach. Let us take a look at where celebrities invest their money.

Real estate – This is often the preferred investment destination for celebrities. High value real estate transactions in top cities such as Mumbai often make headlines. Celebrities prefer real estate investments, as these are stable and have potential for appreciation. Many celebrities have also invested in luxury homes abroad. For example, Abhishek and Aishwarya Rai Bachchan have a luxurious villa in Dubai’s Jumeirah Golf Estates. It is estimated to be worth around Rs 50 crore.

Startups and venture capital – With their money and star power, celebrities can take the route of investing in startups. It can be their own idea or they can provide venture capital to a startup. Some relevant examples include startups like Epigamia and BluSmart that have received investment from Deepika Padukone’s family office. Similarly, Alia Bhatt has invested in Phool.co startup. Investments in startups have high-risk, high-reward potential, which suits the risk appetite of top celebrities.

Hospitality and restaurants – These investment avenues allow celebrities to leverage their wealth and their star status. Celebrities can also monetize their fan base through such ventures. A relevant example is Suniel Shetty who has invested in multiple hospitality ventures that include restaurants and clubs in Mumbai.

Stock market and IPOs – Similar to retail investors, many celebrities actively invest in stock market and IPOs. This is usually done by their wealth management team that may include professionals like chartered accountants and financial planners. When celebrities subscribe to any stock or IPO, it also works as a marketing campaign. A relevant example is that of DroneAcharya Aerial Innovations pre-IPO, which witnessed participation from Aamir Khan and Ranbir Kapoor. Listing value was 3X, ensuring big profits for these celebrities.

Beauty and fashion ventures – Leveraging their money and star power, celebrities are the perfect way to boost the fortunes of beauty and fashion brands. People often prefer established brands in the beauty and fashion segments. This makes it harder for startups to win the confidence of users. But things can change for startups when they are endorsed by a celebrity. This is especially true when beauty and fashion brands are endorsed by a top actress. A relevant example is Kay Beauty (makeup), which was launched by Katrina Kaif in partnership with Nykaa.