Equity Mutual Funds,Real Estate and Gold- Comparative Study of Returns

[niftytaurus]

Hi
As we have got a new seprate thread for comparison discussion..I am sharing some of my views & experiences..
I have read the report shared by st da..I came to know about property cycles..If I make a chart according to this cycle..I thought I sold my property just before exponential growth or we can say just before last exhaustive leg of bull cycles of property..so as Per study no buy till 2020..intresting study! thanks st da for it!
I think people invest in real estate for emotional reasons..1 house is living is enough..but buying as many properties as much we can is residual signal of feudal mantatilty in our Country's DNA..
I always & ponder over the fact why people are so much intrested in realinvestment & gold rather than equity? or that we have to go back, & see our history..in last century, people considered rich who have lot of properties & gold..our kings have lot of properties & gold..so common people considered rich having lot of properties & gold..
our generation see a lot of riches story of common men by investing in gold & property..but we have lot of stories where people looses in share market..so there is always again those 2 important emotions related to investment also..people have GREED in real estate but FEAR assocated with EQUITY..so when people invest ,they dont behave logically or rationally..but they take emotional decisions ..they invest in real estate & gold although they are costly..but having fear of not investing in equity , just beacause of fear..so here also, in general investing, 2 emotions play a important role..

People have emotional reasons to buy property & gold.because those 2 things associated with kings & royalness..so they think emotionally..in the same way, they buy big cars...they think car is asset but although its liabilty..
When I read RICH DAD,POOR DAD..my eyes opened..actually there are so many things, which associated with luxury & for just showoff purpose are really liabilties..after that, i consider two defination...ASSET; which generates income..Liabilty: which creates expenditure..
so now on whenever I take financial decision..I take consider this simple funda..so for me Car is liabilty not a asset..& so many other luxory items..
& second thing important for investing, is compounding..i have read long before WARREN buffet's Book..where he mentioned power of compounding..& mention..how a simple saving of 1000 Rs/motnh can create wealth of long term..he mentioned why he didnt give donations in early years..he invested all this money which he considered for charity & give 1000 times more donation by same amount of money..
so Money decisions shuld be taken from Brain not from heart..emotional decision will not lead to wealth..
in western countries, people create rent income ..its a good decision but in our country where law & rules depends on power of persons, better to stick on those investment decisions which we can handel safely & with manageable risk.
Thanks

 

[amitrandive]

Mutual Funds returns are not impacted by high or low NAV

A sample calculation

 

[amitrandive]

Hi
As we have got a new seprate thread for comparison discussion..I am sharing some of my views & experiences..
I have read the report shared by st da..I came to know about property cycles..If I make a chart according to this cycle..I thought I sold my property just before exponential growth or we can say just before last exhaustive leg of bull cycles of property..so as Per study no buy till 2020..intresting study! thanks st da for it!
I think people invest in real estate for emotional reasons..1 house is living is enough..but buying as many properties as much we can is residual signal of feudal mantatilty in our Country's DNA..
I always & ponder over the fact why people are so much intrested in realinvestment & gold rather than equity? or that we have to go back, & see our history..in last century, people considered rich who have lot of properties & gold..our kings have lot of properties & gold..so common people considered rich having lot of properties & gold..
our generation see a lot of riches story of common men by investing in gold & property..but we have lot of stories where people looses in share market..so there is always again those 2 important emotions related to investment also..people have GREED in real estate but FEAR assocated with EQUITY..so when people invest ,they dont behave logically or rationally..but they take emotional decisions ..they invest in real estate & gold although they are costly..but having fear of not investing in equity , just beacause of fear..so here also, in general investing, 2 emotions play a important role..

People have emotional reasons to buy property & gold.because those 2 things associated with kings & royalness..so they think emotionally..in the same way, they buy big cars...they think car is asset but although its liabilty..
When I read RICH DAD,POOR DAD..my eyes opened..actually there are so many things, which associated with luxury & for just showoff purpose are really liabilties..after that, i consider two defination...ASSET; which generates income..Liabilty: which creates expenditure..
so now on whenever I take financial decision..I take consider this simple funda..so for me Car is liabilty not a asset..& so many other luxory items..
& second thing important for investing, is compounding..i have read long before WARREN buffet's Book..where he mentioned power of compounding..& mention..how a simple saving of 1000 Rs/motnh can create wealth of long term..he mentioned why he didnt give donations in early years..he invested all this money which he considered for charity & give 1000 times more donation by same amount of money..
so Money decisions shuld be taken from Brain not from heart..emotional decision will not lead to wealth..
in western countries, people create rent income ..its a good decision but in our country where law & rules depends on power of persons, better to stick on those investment decisions which we can handel safely & with manageable risk.
Thanks

Real estate is considered as an asset only when you have your own home and an additional property which is generating you returns like rental income.
If the second property is brought on a loan,it cannot be considered as an asset , as you would have to pay the EMI for it.

Robert Kiyosaki's cash flow of a Rich person.

 

[jain.er]

when you combine 1:4 leverge with RE no one has an answer.

Any doubts are welcome

 

[jain.er]

This table is made to refute the claim made by the author in the page 19 of the report posted by jamit. The author claims that the real estate when bought on leverage still under performs even FD returns. The basic flaw in his calculations is that he is comparing the profits made in property with the final wealth generated in FD/rd. I have corrected the table, please read it in conjunction with page 19 of the report. When you combine 1:4 leverge with RE no one has an answer.

Any doubts are welcome

Please read the above....

 

[Tlahuicole]

This is an excellent thread , keep it up bros.

May be we can have a poll also, no: of people benefitted most from real estate/ mutual fund/ other investments.

 

[ethan hunt]

RE requires colored $$$, illiquid, no diversification due to large ticket size

Eq = clean $$$, easy, small ticket size, no hassle, LTCG free, diversification, liquid :thumb:

RE: 5 > 100 (20x) in 12 years > 80 (16x) now

HDFC Growth MF (growth option): 19.8x now

 

[Verde]

when you combine 1:4 leverge with RE no one has an answer.

Any doubts are welcome

It will vary from city to city, still the 15000 rent is very less. Equity has not performed from 2007. A FD with no risk was better.

 

[Sunnyraj]

Really interesting thread!

Posts where St sir, and nifty taurus have shared their experiences in real estate sector are an eye-opener.