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REAL ESTATE VS
MUTUAL FUND
© Sudha Habitat (P) Ltd
Index
1. What is the FACT.2. Real Estate VS Mutual Fund3. Real Estate Offers4. News
What is the fact?
Is Real Estate actually the best or a Mutual Fund is a better option?
Real Estate Vs Mutual Fund
REAL ESTATE MUTUAL FUNDS
1. It is an asset that can be funded largely through long-term debt (75% Funded by banks). No other asset
provides such a benefit
1. Unlike real estate, no long-term loans are available for investments
in mutual funds.
2. High return expectations due to the recent past records (say last 15 Years).
2. Mental fixation with recent huge loss events (like 2000, 2009, 2013 etc.).
3. Justification that it is an investment for the next generation(s).
3. As substantial money is not invested regularly in mutual funds, one does not feel that substantial money can be made through
mutual funds.
4. It is a big asset, which you can acquire and then comfortably pay back via monthly
payments (EMIs) over a very long period of time. Once again, no other asset provides this
benefit.
4.Lack of knowledge about asset allocation.
Real Estate offers 2 sources of income:1.CASH FLOW :
The amount of money you make after all expenses are paid. Cash Flow = Revenue-Expenses
2. APPRECIATION : The amount of increase in property value.Appreciation = Current Value of Property – Past Value of
Property
News
• Indian Real Estate: An Analysis Of 2015 And Gazing Into 2016. Globally positioning India as an investment destination and improving India’s diplomatic and trade relation, Prime Minister Narendra Modi’s foreign jaunts have helped India attract more FDI. From the nations he visited during the financial year 2014-15, India received FDI of USD 19.78 billion. Moreover, foreign direct investment (FDI) in India increased by 27% in 2014-15 to USD 30.93 billion.
• In other fronts as well, it is time to retrospect on how 2015 was for the real estate sector, and to crystal-gaze into 2016.
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