Investing: Mutual Funds OR Real Estate?

[The_Big_K]

So you got another fat paycheck this month. You know that you should be investing your money somewhere. You know that you got to have highest returns on your investment. You have heard about Mutual Funds from your friends. Your father tells you about Real Estate investments. You know a little about both. But you don't know what's for you!

Here we are!

This thread is dedicated to solving the confusion in your brain. Let us discuss + & - of both MFs & REs.

To make it simpler ( & better ), let us assume that each one of us has 100k bucks to invest (Now, the actual value of 100k bucks will vary in your country. So assume whatever amount you want.). What's the best investment option for us and why?

-The Big K-
p.s:
1. Let us limit this discussion to MF & RE
2. Can anyone of us write articles on Mutual Fund & Real Estate Investing? Start new threads please

[Jerry]

Good thread under CE Finance. In my opinion, Real Estate investments are safest and assured in the long run. That is, you can expect fantastic returns if you are willing to invest your money for a longer period of 5-10 years.

Mutual funds, I'm not a fan of them, is for those who want to invest for a relatively shorter duration and expect good returns. That is, you can expect good returns over a period of 12-24 months.

Jerry

[kidakaka]

I would say it totally depends on how much time you are willing to spend on this activity, also whats the time period in which you are allowing the investment to grow.

If you are financially challenged (not monetarily, but in terms of knowledge) and think that this share market is for gamblers or is not your cup of tea ... and still want a cut of that growing Nifty, well maybe then you should consider MFs.

These days, many fund houses have provided this neat investment plan (neat, because on the first look it seems as everybody wins ). Its called SIP (Systematic Investment Plan), wherein a fund manager will invest for you. All you have to do is put in Rs. 500 (or more) per month. Just one has to be aware of all the terms, when can one actually bail out, et al.

Real estate, well never tried this one, someone please give more info on this!!

Had read an article saying that the best RoI was Copper for the year 2005-2006!! Yeah, apparently the price of Copper has nearly doubled, so dont forget Commodity Trading as well. What with Reliance moving in so big with Reliance Fresh, and the Indian financial markets doing a Futures and Options analysis on Rice and other crops (no, I aint kidding!), I wont be surprised that the cash crops become the real CASH crops!!

[Rocker]

Its Real Estate for me!

In fact, there is no limit to the returns you can expect on Real Estate investment. Land bought in 1900 is just priceless today.

[The_Big_K]

All our good-old threads need oxygen! Why do we have no replies on these threads?



-The Big K-

[integratdbrains]

Though real estate is considered to appreciate as the days pass but it all depends on the type of land you are investing into.If you make an investment that is not going to be in demand for next 15 years then you can expect good amount of money only after all your teeth fall.(But then what will you do with so much amount when you don't or probably can survive with only a fraction of it.)So Its good that We have a alot of real estate fans here but Folks BEWARE of dead investments. Mutual funds on the other hand can give you atleast a part of good ROI when you need it ( that is NOW !)

[The_Big_K]

Originally Posted by integratdbrains

Though real estate is considered to appreciate as the days pass but it all depends on the type of land you are investing into.If you make an investment that is not going to be in demand for next 15 years then you can expect good amount of money only after all your teeth fall.(But then what will you do with so much amount when you don't or probably can survive with only a fraction of it.)So Its good that We have a alot of real estate fans here but Folks BEWARE of dead investments. Mutual funds on the other hand can give you atleast a part of good ROI when you need it ( that is NOW !)

You have a point. But how if one puts a money into a flat or a small shop which brings home a monthly income through rent?

That's better than MF, I guess. Is it?

-The Big K-

[crazyboy]

Originally Posted by The_Big_K

You have a point. But how if one puts a money into a flat or a small shop which brings home a monthly income through rent?

That's better than MF, I guess. Is it?

-The Big K-

Just pouring a info, may be relevent to some users .

There is one mutual funs named as Birla Sun life.. its Divident one, you can use (SIP-Systemic Investment Planning) here.

The sceme us:
Suppose you are investing 100k you will receive divdend of 50k in 4 months(It is not taxable.) and you can re-invest this amount agian and earn the dividend in the same routine. or You can take that dividend with your self

My question is What is the benifet to the compony holder by returing 50%.. Is it that worthy?? Or some hidden benefits to company which I am missing??

Can anyone explain?? Biggi any idea???

--Crazy (Am back)

[crook]

Any update here? I've been following this thread since long. Someone please update!

[integratdbrains]

well crazyboy,i have been designing alot of financial products for various companies.... your question directly hits by bread and butter but been a CEan i should atleast throw some light on it.Its like this.. when a company launches any of the financial schemes the company has worked out over it's various costs (u might be knowing)-like the operational costs, the preliminary costs etc.In the market every monster (all the big corporates as well as the small ones who eventually become big or wrap up and become wealthy theres lots into this aspect lets not get into this.) is there for making money.Money for himslef not for the public.for example you have given an SIP of 100K.Let me take up this,if you are promised to be paid 50K in 4 months remember the company is making a 100K at the present moment! Of course this is a rough idea i am trying to potray for you. It is highly variable and depends on the area of investment of the company.I hope i have done justice to both the things.. my profession and CE.For any further clarifications send a personal mail to me.

[Jerry]

Real estate - all money lies there!

[contentwriter]

An immovable property such as land or building is generally referred to as real estate. The investment in real estate is beneficial if it is used for the purpose of benefit as in this way one can earn money through it in many ways.
Investment in mutual funds is beneficial as dividends are tax free. There is very less or no tax on capital gains.

[integratdbrains]

The research reports for real estate quote that the industry is going through a recession. This is a global phenomenon,Manhattan bookings have declined, Mumbai sale prices have increased,real estate stocks show a downward trend and to add to it they say the properties are presently over valued and shall have to be revalued.
Equally the bearish stock market are not luring the investors. Yet some mutual funds still have declared dividends to the tune of (the last one i heard of) 40 %.
I think its now easy to decide. Because that which has strength to survive the worst shall be the best.

[leo212]

Nice job! It's really nice link that you have shared with us.
Thanks!