Investment in Mutual funds vs Commercial Real Estate

Read up to find the winner.

Investment is one of the simplest methods to earn a substantial income if you have a basic grasp of how and where to invest. But this is not as easy for everyone as it might be for some. People find themselves tangled among a number of investment options. So today, we are going to compare two of the most popular investment options, commercial real estate and mutual funds. People often face dilemmas over choosing between the two but there are some significant differences that one should know about before putting their money into the market. Investing in commercial real estate or mutual funds is essentially a personal decision that can be influenced by many factors but there is always a winner and in this case, the winner is commercial real estate. Let's see how.

Although the market risks pertain to all the assets in the investments, the volatility in equity markets is higher than that of inflation risks. Therefore, fluctuation in the stock market due to its volatile nature can land the stakeholders at risk of losing their value in no time. Liquidity risks in the closed-end investment for long term plans is an inevitable risk that comes along however such is not the case with commercial real estate where profitability is assured and liquidation is healthily obtained in the longer run.

The introduction of the Real Estate Regulation Act (RERA) in 2016 has brought transparency to the business, opening a protected opportunity for investors. The general perception has been that an investment in real estate remains a consistent performer over the years, and it is not a false notion. Barring a few periods of slowdown, property prices across the cities have skyrocketed. Although the consistency is very much dependent on the factors such as connectivity, physical infrastructure, social amenities, road network, neighbourhoods, planned projects, it is considered safer than a volatile mutual fund.

From a longer-term investment perspective, one must prefer real estate over a Mutual Fund.