Is It Time to Move Real Estate Investments to Mutual Funds?

Rapid Summary

• A 57-year-old individual is considering liquidating real estate assets worth Rs 5.35 crore due to their illiquidity and low rental yield of 3.36%.
• The individual is exploring mutual funds for better convenience and returns.
• rushabh Desai, an investment advisor, suggests shifting from real estate to mutual funds for higher risk-adjusted returns and liquidity.
• A retired government employee considers switching Rs. 10 lakh investment from SBI corporate bonds to Senior Citizens’ Savings Schemes (SCSS) for better returns.
• SCSS offers around 8% annual interest with taxable earnings but qualifies for Section 80C deductions under the old tax regime.

Indian Opinion Analysis

the decision to move from real estate investments to mutual funds or other financial products should consider factors like liquidity needs,risk appetite,and financial goals.Real estate can be cumbersome due to maintenance requirements and relatively low yield compared to bonds or diversified fund portfolios which offer adaptability and potentially higher returns.

For retirees or senior citizens relying on fixed income, options like the SCSS present attractive alternatives given their stable return rates albeit with associated tax implications. It’s crucial that such decisions are aligned with long-term retirement plans while being adaptive to changes in financial conditions. As always, professional advice tailored specifically by examining overall personal financial circumstances rather than general market trends is recommended.

Read More

!House