In Category: Real Estate
Published at: October 18, 2022
Traditionally, in India, people were more inclined to save their money in a savings account than invest it. While over the last three decades, an increasing number of people have started looking at investment options to generate returns and create wealth. There are numerous investment avenues available to people like stocks, bonds, fixed deposits, mutual funds, gold, real estate, etc. Each of these investments has certain risks associated with it and reward potential. Because of the risk involved, it is prudent to understand all investment options before making a decision. Today, we will talk about three popular investment avenues – Gold, Real Estate, and Stocks and compare them to help you find the real DHAN to invest in during this Diwali.
The last few years have been tough with lockdowns slowing down economies around the globe and interest rates falling. In such a landscape, it is important to choose the right investment options and grow your wealth. Here is a quick comparison between gold, real estate, and stocks.
We will talk about stocks in the broader sense of equities and cover shares and mutual funds. As an investment option, stocks have grown in popularity over the last two decades. People are increasingly investing in shares and mutual funds. When you invest in stocks, you buy equity or equity-related instruments based on your assessment of the market and earn returns. However, these investments are risky and adverse market movements can corrode your finances. Stock investments offer you the option of earning a regular income or generating wealth over the long term.
Gold has traditionally been the investment of choice for Indians. With the ‘yellow metal’ playing an important role in our culture and tradition, people have always purchased gold for occasions and events. This also acts as a safety net during financial emergencies. Further, gold can be used as collateral to get secured loans at affordable rates. In recent years, digital gold and gold bonds have also been launched to help people invest in gold. However, gold-based investments have certain risks too that need to be factored in before investing.
Around the world, investment experts call real estate investments the best way to generate wealth. When you buy real estate, you have an opportunity to generate wealth over the long term as property prices appreciate and regular income by renting it out. These investments are also subject to market-related risks.
Choosing the right investment option depends on your needs. As you can see, all these investments have certain risks and returns associated with them. You need to consider your financial goals, risk tolerance, and investment horizon. This will help you create an investment plan and choose the right investments.
Here are the pros and cons of investing in stocks, gold, and real estate to help you choose:
|Pros||Potential to earn high returns||Easy to invest||Lower volatility compared to stocks and gold investments|
|A wide range of options available to diversify risks||Potential to earn high dividends over the long-term||Property prices and rents tend to increase with increasing inflation rates|
|Cons||High risks associated with the investment||No regular income||Usually involves a large ticket investment|
|High volatility in short-term stock investments||No tax advantages on gold investments||Liquidity is low|
Regardless of the option you choose, make sure that you pick the right investments. So, if you are planning to invest in stocks, then make sure that you choose the right companies to invest in based on your financial goals. If you are looking for real estate, then choose between new and used properties. For new properties, make sure that you look at reliable and reputed builders like Sankla Buildcoon. In Pune, Sankla Buildcoon has established a reputation for building state-of-the-art commercial spaces and aesthetic residential homes using high-quality materials and modern designs. Their residential properties include SATYAM NIRANJANI at Hadapsar, SOMMET at Bhugaon, and AVANI at Mohammadwadi. On the other hand, the commercial properties include SATYAM BUSINESS COURT at Manjari, PS ANGAN at Magarpatta Road, and JAYMALA BUSINESS COURT at Manjari.
Remember, investing is a responsible task. Make sure that you choose the right asset class to invest in (gold/real estate/stocks) and the right instruments to give yourself the best opportunity to earn the intended returns. Good Luck!