Monday, June 16, 2008

A comparison between investments in physical property and real estate mutual funds

The real estate boom in the country in the last two years has turned the sector into an exciting investment option. With property prices escalating, investments in real estate have fetched returns that can even rival the stock markets’.

While not many can invest directly in real estate because of the huge money required for property purchases, the launch of realty mutual funds has made it possible even for small investors to have access to a diversified portfolio.

The options are open to all — whether to invest in a physical property or buy mutual fund units. While taking the plunge, an investor needs to consider a number of factors, including the tax aspects, the liquidity and long-term prospects of such investments.

Real estate investment can be either through property purchase or mutual funds. Subhash Lakhotia studies the pros and cons. Subhash Lakhotia is a leading Delhi based chartered accountant for the last 35 years. He is an expert in tax planning and money management. Along with his regular practice, he is also keenly involved in the activities of various publications and investors' clubs.
Roads to realty:

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