Equity Vs Gold Vs Real estate
FAQ :
Which is better Equity or real estate ?
- The returns generated by investing in equity stock and funds are comparatively higher than of real estate investments . Moreover you can start with low investment in equity but to invest in real estate capital required is more.
- Risk associated with equity is comparatively higher than real estate . Therefore Elongate Global Investments helps our clients in correct selection of stocks & Monitor their portfolio companies & Investment life time for our clients to achieve highest CAGR which can be more than double than real estate or gold.
Is it good to invest in gold & Equity ?
- It depends on the requirement of the investor, Expecting high returns form gold is difficult however equity in long term can give a very high returns however it remains highly volatile in short term wherein gold continues to remain a stable investment . We strongly recommend to invest in Equity for long term in proven consistent compounders over the years if you expecting a high returns or want to create a corpus for you retirement . If you don’t like volatility & satisfied with returns slightly more than prevailing FD rates than you can invest in gold.
I have a short term requirement of funds which can be in 1 years time should I invest in stock market or keep it in FD ?
- Please keep your funds in Fixed Deposit & Not in equity market for any short term requirement as stocks will remain volatile in short term & there might be a chance your investment can be in negative depending on market situations .
Final Thought : Equity market will outperform only in long term ( 5-10 years ) therefore you have patience to hold companies in long term then Equity investment can maximise your returns in Indian Stock Market .
1. Equity
Key Benefits
- Diversifies the investment portfolio and reduces the risk associated with parking all funds at a place.
- It is relatively easy to liquidate the stocks and funds.
- You will have the potential to earn high returns.
- In case of mutual funds, you can start with a minimum amount of Rs. 1,000.
- Money is handled by professional fund managers.
- Post-tax returns are efficient.
Drawbacks
- High risk associated with the short term investments.
- High volatility in the short term investments.
- Difficult to choose stocks.
2. Gold
Key Benefits
- It is easy to invest in physical gold.
- Gold investments will give high dividends over the long-term.
- You can convert gold into jewellery and ornaments for personal use.
- You can avail of loans easily by mortgaging the gold.
Drawbacks
- Price of gold is associated with several macro-economic factors.
- There are no tax advantages for gold investments.
- Storing gold possesses high security risks.
- Cost of storing and maintaining gold is high.
- No regular income in the form of dividends or rent.
- Transparency in case of buying and selling gold is low.
3. Real Estate
Key Benefits
- Comparatively low volatility.
- A gradual increase in market prices will lend stability to your investment.
- You can avail of house loans easily by mortgaging the property.
- If the property is rented out, you can earn regular income.
Drawbacks
- Requires a large capital to invest in property.
- High transaction costs due to stamp duty and registration.
- Cost of maintaining the property is high.
- Liquidity is low, since properties are difficult to sell immediately. So, it is not easy to use this investment during emergencies.