INVESTMENT IN LAND OR IN MUTUAL FUNDS - WHICH IS BETTER ?
A piece of land may give good returns on investment but it needs large funds.
Locking up large funds for substantially long period of time, because the investment is quite illiquid, makes the compounding
effect amplified.
This makes the Return on Investment better than in stocks/Mutual Funds.
Even if the value of the land appreciates substantially it is not easily saleable.
It is not easy to sell a part of it as in the case of Mutual Funds.
So the investment stays and grows.
The compounding can be seen taking effect in this and not in Mutual Funds/ stocks where the temptation to book profits it too big to resist.
On sale of land one has to pay long term capital gain tax whereas in case of mutual funds there is no tax implication on long term capital gains.
Simple and easy things are most of the times most difficult to understand.
RAJIV KAPOOR
9839034761
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