Mutual fund vs Property !
The craze for mutual fund investment has been on rise in India. More people are coming ahead and investing their money into mutual fund to see them grow. Mutual fund has become a most favoured investment tool. It broke the aged old method of property investment. Gone are the days when people look out for property to invest but as per the recent calculation the wealth appreciate at a higher rate on mutual fund than in property. As per a study, CAGR on property investment is merely 1.6% after including of all the cost. Whereas at the same time the mutual fund investment shows a healthy return of 11%. But the question still remain, how safe is the market?
(own edited image)
Mutual fund investment is completelly depends on the share market. Investing in mutual funds involves several risks that investors should be aware of before making a commitment. These risks can affect the value of your investment and potentially lead to losses. Fluctuations in the stock or bond markets can cause the value of your mutual fund to go up or down. In certain market conditions, it may be difficult to sell your mutual fund units quickly or at a desired price. Some people argue that mutual funds are not guaranteed investments, and we could lose some or all of your initial investment. There are lot of factors that may decide the returns on mutual fund investment. This is where on of my relatives is hard-core property investor.
My nephew exclusive buy property as is where basis. He is not interested in taking risks with share market. He firmly belive that property gives a tangible hands of assets. And it can be utilised in various ways. From rental incomes to value appreciation it gives a better option for investment. But I personally belive that one should diversify their portfolio to remain safe from all angles. Investment is all about taking risk. Buying property has its own pros and cons and one should study the factor before investing.
In good faith - Peace!!
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited..
This post received an extra 20.00% vote for delegating HP / holding IUC tokens.
The only property I own is my house. Most of my investments are in mutual funds. It wasn't really a huge choice for me, it was just the way I decided to do things. If I had more capital, then I probably would have bought property too. That's the kicker. Property you usually need a lot up front. Mutual funds you can slowly grow over time.