Buying a house vs investing in mutual fund, which is better and why?

[prdpkol (Ved Prakash)]

I am a 30 year old, working professional. I am planning to buy a small flat by taking home loan. I am willing to invest around 30% of the payment and remaining will be financed.

But i came across a theory that says, it’s better to avoid home loan, suggest moving to a rented property instead. The idea s that same amount when invested in equity and mutual fund can generate better returns over a period of 20-25 years.

What do you think?

[zaynmaliklahore (Zain Malik)]

Considering the current economic situation, where they are promoting business and industry and discouraging such investments in stocks etc, the situation in 20-25 years does not look like what you have in mind. On the other hand, if you invest in real estate for the same amount of time, your profits will be 10 times more. That is my advice. You can do your own research and decide.