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What is real estate vs mutual funds ?

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0 2022-05-31T08:38:19+00:00

Hey friend,

There are so many options for us to invest in. I used to be very confused about real estate vs mutual funds. I wanted to invest my money in a plan which would bring better returns in the future and had a lesser risk of loss. Keep reading to know what I learned. 

When thinking about real estate investment vs mutual funds. Both of these come with their advantages and risks. 

Mutual Funds :

In my opinion, mutual funds will give you better returns. The rate of return can range from 14% p.a. and 19% p.a. It will depend on the kind of fund you have invested in. In the long run, you will get approx. 12 percent return. 

Real Estate :

The rate of return in real estate ranges from 7% p.a. to 11% p.a More than that, there are numerous factors that impact real estate like the market trend. It makes investing in real estate riskier in comparison. In the long run, you will get approx. 8 percent return. 

Read the comparison here :

Real Estate 

Mutual Funds

The investment is considered to be similar to Fixed Deposit. It is a safer option

In comparison, this investment is more risky

Money is invested in property

Money is invited in the equity market

Average rate of return is higher in comparison

Average rate of return is 10-15%

You will need capital in Lakhs and Crores to invest in real estate 

Investment can start as low as ₹100 per month

There is no ‘top-up’ facility available 

There is a ‘top-up’ facility available for investment. 

Requires regular monitoring as property is a physical asset.

Does not require regular monitoring 

Changes of litigation are high as property is often disputed 

Chances of litigation are low as investments are monitored by Securities Exchange Board of India (SEBI)

Another investment option is stocks. Though you need to do your research on it. This is all from my end on real estate vs mutual funds.

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