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Home > Blogs > Mutual Funds vs. Real Estate: Which Investment Offers Better Returns in Tamil Nadu?
mutual funds vs real estate

Mutual Funds vs. Real Estate

Which Investment Offers Better Returns in Tamil Nadu?  

From the investment perspective, the current scenario in India is gaining popularity in investment opportunities with a steady growth curve in diverse markets such as real estate, equity, gold, mutual funds and more. While the future of investing comes with uncertainties, the current economic studies and projections act as indicators and show an upward trend. A wise choice for investing is to conduct your own market research and evaluations based on your earnings, economic conditions and future goals and aspirations. This is why Sembulam has stepped in to lead you towards your aspirations with our insights on the best choice of investment between mutual funds Vs. real estate investments.  

Mutual Funds Vs Real Estate as Investment Options in India 

Did you know that your mutual fund investments majorly depend on how good your fund manager is? Mutual funds are a pool of yours and other funds managed by a fund manager. Your maximum returns are guaranteed if the fund manager is wise enough to know that your returns are linked to how well he or she manages your assets and not how much the returns are expected. 

Key Points on Real Estate Investment 

By investing in Indian real estate, you are bound to be submerged in benefits. Some of which are listed below: 
  • To invest in India’s progressive economy has given rise to immense potential in the growth of real estate sector. With the rise in manufacturing locks, textile, IT, medicine, mining and quarrying and other sectors have risen the demand in the real estate sector, boosting land values.
  • The local governments in each state also have helped immensely in the growth of land values. Many housing subsidies and schemes have helped all classes of society to own land or property with ease.
  • Developmental activities in infrastructure and other public domains like roads and basic public amenities have resulted in a higher quality of life.
real estate in tamil nadu

Key Points on Mutual Funds

  • Professional fund management by licensed fund managers makes the decisions on where your funds are to be allocated, based on their expertise and market analysis.
  • Investing in diverse portfolios not only increases yield, but also reduces risk by distributing your investments across various assets.
  • Mutual funds are easy to buy and sell easily for immediate liquidity.

A Comparison Between Mutual Funds Vs Real Estate  

Feature
Mutual Funds
Real Estate
Liquidity
More easy
Less easy
Risk
Varying from Moderate to High
Same as that of mutual funds
Returns
Volatile, subject to fund manager’s experience and market conditions
Volatile, however with a steady rise in projectile
Maintenance
Regular maintenance, with fund managers’ intervention
Requires regular maintenance
Tax Implications
Subject to capital gains tax
Subject to property tax and capital gains tax

Choosing to Invest in Real Estate in Tamil Nadu 

By looking at the above narratives of each and seeing the comparison between mutual funds vs real estate, the latter seems to be the popular choice for many, over the years. One such ideal option to make your real estate investment is in Tamil Nadu. Unlike mutual funds, you don’t have to be well versed with market knowledge or keep track of volatility in market fluctuations. Let us look at the many benefits of mutual funds vs real estate:
  • Stable returns by investing in real estate ensure a steady appreciation in its value tend to appreciate over time, providing promising maximum return on investment
  • By owning a property, one that can be let out can become a medium of an alternate income source.
  • You gain tax benefits in investing in real estate in Tamil Nadu with many exemptions and tax deductions.
  • With land being a tangible asset, some people trust this form of investment more rather than the digital form in mutual funds.

Opting for Dindigul, A Smart City in the Making 

Dindigul, with 3 revenue divisions, 10 taluk panchayats and 14 unions, it is a fast-developing city with only half the land area suitable for land development, makes it a highly sought-after place with the rest of the space used for agriculture and other purposes.  Investing in premium properties in Dindigul like Sembulam Projects makes it an ideal location for obtaining significant long-term returns.

To invest in Tamil Nadu has many potential tourist destinations that pave way to generating high state incomes out of inflow of tourists. Dindigul, a city listed in becoming one of the smart cities, is situated in the scenic foothills of Sirumalai, has become one of the sought after tourist places to visit, for its cultural and historical significance. This generates income, for localities for potential to do business.

invest in tamilnadu

Conclusion

If you are looking to opt between mutual funds vs real estate, it depends on your individual goals and capabilities, risk appetite, and investment boundaries, as to how well you can stretch. Both options offer tempting and lucrative returns with high, medium and low risk options and maximum growth, each unique to its own characteristics.  

If you are someone looking to make the best of both worlds, you can invest in rea estate linked mutual funds, where you have lower risk and better risk when compared to an equity linked market. But for those looking for a stable return on investment, or do not have a high-risk appetite, land investment is the safest option. For those looking to have an emotional connect with your investment option, with a tangible asset, real estate in Tamil Nadu, predominantly in emerging cities like Dindigul, can become your ideal choice. 

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