Real estate or Mutual funds in this current scenario?

Archana and others Please don't make comparison without amount, time period of investment etc etc.  If someone want to invest Rs.10k to 20k. Someone want to invest for very short period. Valuation of gold: it becomes 4 times from the prices 4-5 year back. Approx same like real estate. We can buy gold with 10k.

No doubt real estate is an excellent opportunity for investment right now. But we have to categorized the investors..

Mutual fund is the better option than real estate as it offers high liquidity-you can access part or all of your money at any time. Secondly MF offers diversification-Unlike real estate, you are not putting all  your money in one instrument - rather, you are spreading it around to dozens of different investments. Flexibility- As long as you have the minimum investment (as minimum as Rs.500), you can add or take out virtually any amount as your needs change.

And most importantly if you stay invested sytematicaly for long term, the returns are the best compare to other investment options.

Mutual funds are liquid assets. They can easily be turned into cash to pay for food, health care or other living expenses. A fund's value is based on the value of its underlying assets and the number of the fund's shares outstanding. If the value of the assets held by the fund increase, the owner's balance increases. Most funds also collect dividends or interest payments that add to the account. They work a lot like a bank savings account but have the potential to earn a higher rate of return if the investments in the fund increase in value before they are sold. But in case of real estates, Economic upheavals like bank failures and increased unemployment cause buyers to reduce the price they're willing and able to pay for property. Real estate has always required a fairly long-term commitment to show significant appreciation. The costs of buying and selling real property are substantial, often amounting to 10 percent of the value. It's a very illiquid asset. If you need to move to get a new job or want to get a larger or smaller home you must find someone else willing to buy your current property unless you can afford to pay for another house and rent yours out at a profit.