Real estate and mutual funds are two popular investment options for long-term investors. While real estate investments involve purchasing physical properties, mutual funds allow investment in a diversified portfolio of stocks, bonds, or other securities managed by professionals. People looking for ways to grow their wealth are often confused about which investment route to take. Recently, author and entrepreneur Sandeep Mall shared a post on X, talking about how investing in real estate would have brought him better returns.
In his tweet, Mr Mall explained that he bought a plot of land 15 years ago, which he sold three years after buying. He then invested that amount in Mutual funds, and in 12 years, the money grew 2.5 times. However, the value of the land which he sold, is now worth 100 times its original value. This made him realise that holding the land instead of selling it would have been the best strategy for him.
''Had invested in a plot 15 years or so back and in three years it grew 10x and in some emotional moment sold it. Later on invested that sun in MFs which in 12 years have grown around 2.5 times. Came to know the plot today is 100x,'' he wrote on X.
See the tweet here:
His tweet has triggered a debate, with many discussing the advantages and disadvantages of both the popular investment tools. While many agreed with him, some said that returns on the amount invested in either of the tools depend on a lot of factors.
One user wrote, ''Nothing can beat Property in terms of returns. Anyday. It was, it is and it will be the best option for investment.''
Another said, ''It's alright I guess, the pursuit of profitability never truly ends. A close friend with over a million-dollar portfolio once told me that he couldn't have achieved it if he'd been consumed by regret for booking profit early. He told me to view it as a blessing as long as it's in the green.''
A third commented, ''You are comparing the two extremes: the best of the real estate with the worst of equity. Let's reverse the role and then see. Apart from the asset class, the decision and timing also play an important role which you have not factored in.''
A fourth added, ''Nothing can beat property in terms of returns. Anyday. It was, it is and it will be the best option for investment.''
