To secure our future and to have our life safe and jolly we tend to have more wealth in future than now. For that investment has always been the inevitable part of our future planning. We always think to generate more money by investing our existing money.

Previously we have lots of option with us like saving deposits, recurring deposits and fixed deposits in banks, post offices etc. These traditional investments are always a low risk and give assured returns as mentioned. Nowadays people are moving from traditional ways and looking for more advanced ways to get good returns like investing in equity, stocks, mutual funds, properties. 

Our today's article will throw some light on two investment options one is mutual fund investment and other is property investment.

1) Capital

For initial investment in a property, you need a huge corpus and with years passes by there is a rise in the prices of plot in all the cities and semi-urban areas of the country. If you are purchasing a property for generating revenue by leasing it or renting it. What is if you won't get any lessor or renter to rent upon. The monthly EMI will then become heavy expenses.

In a mutual fund, you never need a huge corpus to start investing. Even with Rs 500 you can easily start investing through Systematic Investment Plan. The only thing you need is investing in a disciplined manner.

 

2) Risk 

Risk is associated with a property also. regulatory norms, timely ownership risk, litigation risk, encumbrance risk all are associated with a property. This risk has led to the ignorance of many investors to invest in property.

The risk associated with mutual funds is less compared to property. As because in a long period mutual funds with higher risks give good returns,

 

3) Liquidity

Liquidity means how fast you can encash your investment. In mutual funds, if you redeem, your account will be get credited within 3 working days but the same is not true with the property. As to encash your investment in the property you need a potential buyer who is also looking for the same and is interested in it. If you make a hurry or in need of urgency you want to sell you may not realize the actual value of the property and may lead to sell it in a low cost.

 

4) Ease of Maintenance 

With growing online platform now it's easier to handle mutual funds and you can check your daily NAV but the maintenance of the property itself cost you much more. 


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