Invest in an Apartment or in ELSS/Mutual Funds

Hai friends,

I am staying in Chennai corporation limits. Is it worth to invest in buying an apartment? I feel that after 10 or 15 years the value of a re-sale flat will be very less comparing with a piece of land.

In an investing point of view what will you suggest which give me a good return after 15 years? An apartment or equity linked schemes/mutual fund?

Please advice.
Depends on your risk and financial goal

Returns on any investment will depend on the CAGR it gives you in the end.

RE and Mutual funds both are good investment avenues...

RE will give you 11% to 22% ranges for CAGR
- Not very liquid...may take a year to sell
- lot of paperwork including legalities
- I would consider it more safe as compared to mutual funds
- One needs to do lot of analysis before you select the property..location being prime importance..since you need to sell it after 10 years
Mutual Funds
- you mostly leave the decision making to the fund manager...
- this is also fairly illiquid since if the NAV is will need to wait to sell it
(Though most financial experts will suggest MF since they want everyone to invest only in equity and MF...they will never encourage real or FD)
How much money do you have ? You can invest in something like both really ? If not I would still go for mutual funds maybe, I simply did not that successfull in real estate lately and lost like 50% of the money after like 13 years or so, so be very carefull here.
I do prefer MF over Real Estate due to:
1) No paperwork or legalities, in rare case, no court cases. :sneaky:
2) Offer better return (considering the growing market in India) and great compounding.
3) Half tax compared to RE.

But in MF, SIP gives much calmer and better than risky lumpsum but should not be bothered if investing for more than 15-20 years.