Dear bros, i have about 6 million rupees. I am in a fix whether to invest in a property or mutual funds for a period of approx 4-5 years so that i can gain handsome amount for construction of house at the time of my retirement. Please advise keeping in mind the market condition of both property and mutual funds especially after pak pushed in to fatf list with its impact on overall economic situation.
Go for mutual funds
Sohail, How about diversifying your investment and invest in both? I suggest wait till elections, do some home work till then, meet as many Estate agents and ask the same questions, analyse their opinion and ask for pros and cons of investing in certain societies. If you get more suggestion about a particular place go for it within one month after elections.
I suggest you to go for 2m with mutual funds and 4m with real estate.
Thanks,
Ammar
Before investing in mutual funds please can you share your study how much profit loss ratio in different mutual funds and what is the cost of entering, leaving, and maintaining a fund in addition to the taxes etc… Personally i am of the opinion that most/ all mutual fund providers will be only interested in their piece of the pie. They will earn even if the client loses money.
Mutual fund for long term is always beneficial. On investment of Rs 5M, it is possible one may get triple of his invested amount. Moreover you have tax rebate upto 70% where as in property your investment is always in the hands of property dealers where they also charge money for their effort as well as property tax etc.