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?
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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!!
