Investing in mutual fund vs. rental property over 10 – 15 years
What is the average return on mutual funds for the last 10 years?
8% to 10%
Good Average Annual Return for a Mutual Fund
For stock mutual funds, a “good” long-term return (annualized, for 10 years or more) is 8% to 10%.
How much can a mutual fund grow in 10 years?
Assuming an annual returns of 12%, you will be able to create a corpus of Rs 69.7 lakh by investing Rs 30,000 every month for the next 10 years. You are currently investing in two IT funds. Sector or thematic funds are not recommended to regular investors.
What is a good 10 year return on a mutual fund?
Equity Funds with Best Returns in a 10 Years
| Equity Funds | 10-year Return |
|---|---|
| HDFC Equity Fund | 14.76% |
| Reliance Multi Cap Fund | 17.33% |
| Franklin India Prima Fund | 18.25% |
| ICICI Prudential Midcap Fund | 15.91% |
Which investment is best real estate or mutual funds?
Returns potential
Despite the short-term challenges due to the pandemic, real estate is still considered almost similar to a fixed deposit. On the other hand, a mutual fund investment is way riskier. While mutual funds expose your money to the equity market, the volatility and risk of losing money are higher.
What is the average mutual fund return over 20 years?
Investors earned an average of 4.67% on mutual funds over the last 20 years.
Which mutual fund is best for next 20 years?
12 Best SIPs For 10-20 Year Investment In FY 21 – 22
| Fund Name | 5-Year Returns (In%) | AUM (In ₹ Cr) |
|---|---|---|
| Axis Focus 25 Fund | 20.43 | 19,456 |
| IDFC Banking & PSU Debt Fund | 7.62 | 18,069 |
| ICICI Prudential Corporate Bond Fund | 7.93 | 19,104 |
| HDFC Money Market Fund | 6.43 | 14,185 |
How many years should you invest in mutual funds?
Mutual funds have sales charges, and that can take a big bite out of your return in the short run. To mitigate the impact of these charges, an investment horizon of at least five years is ideal.
How can I make 50 lakhs in 5 years?
50 lakhs in five years.
- Parag Parikh Long Term Equity Fund. …
- Mirae Asset India Equity Fund. …
- Axis Focused 25 Fund. …
- Axis Bluechip Fund. …
- ICICI Prudential Bluechip Fund. …
- ICICI Prudential Nifty Next 50 Index Fund. …
- Franklin India Low Duration Fund. …
- Franklin India Ultra-Short Bond Fund.
How much should I invest in SIP to get 50 lakhs in 10 years?
In that case, starting a mutual funds SIP with ₹10,500 monthly investment would enable the investor to meet its ₹50 lakh investment goal in 10 years.
Why mutual funds are better than real estate?
A proper plan and intense financial market research will help you to make your investment worth in the stock market. Is it better to invest in real estate or mutual funds? Equity mutual fund is better as compared to real estate as mutual funds offer diversification and flexibility.
Is there a better investment than real estate?
Stocks are a better investment than real estate
When you adjust for risk, effort and time investing in the stock market is hands down a better option for most people than investing in physical real estate.
Is it better to buy a house or invest the money?
Investing your cash in the stock market, especially in a tax-advantaged account, will leave you with a higher net worth than paying off your mortgage faster.
Why owning a home is not a good investment?
Exceptions exist, but in most cases, you won’t earn a great return by owning a home, if you properly account for the opportunity cost, the lifestyle inflation, the hidden expenses, the loss in flexibility, and the value of your time. In most cases, it is actually a very poor financial investment.
Is investing in real estate a good idea in 2022?
The National Association of Realtors forecasts that the vacancy rate will further tighten to 4.8% in 2022 (5.1% in 2021) and rent growth to average at 10% (7.8% in 2021). One of the main forces behind the rental market upswing is the Covid-driven work-from-home trend.
Why you shouldn’t pay cash for a house?
Paying all cash for a home can make sense for some people and in some markets, but be sure that you also consider the potential downsides. The downsides include tying up too much investment capital in one asset class, losing the leverage provided by a mortgage, and sacrificing liquidity.
Why is paying cash for a house better for the seller?
An all-cash offer can occur when the buyer has the ability to purchase a home without taking out a mortgage. All-cash offers are very appealing to sellers because they tend to close faster and there are fewer risks than with mortgage-contingent offers, which are vulnerable to delays and denials.
Is it good to own your home outright?
You’ll pay lower closing costs when you buy a home with cash because you won’t have additional closing costs or title insurance charges that come from a mortgage lender. Own your home outright. If you forego using loan funds and buy a home with cash, your home will be fully yours.
What is the maximum amount you should pay for a home?
The 28/36 rule stipulates that in order for a home to be considered within your budget, your housing expenses (such as mortgage payments, taxes and insurance payments) shouldn’t exceed 28% of your gross monthly income.
How much do you have to make a year to afford a $650000 house?
You need to make $240,520 a year to afford a 650k mortgage. We base the income you need on a 650k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $20,043. The monthly payment on a 650k mortgage is $4,810.
What is the 28 36 rule?
A Critical Number For Homebuyers
One way to decide how much of your income should go toward your mortgage is to use the 28/36 rule. According to this rule, your mortgage payment shouldn’t be more than 28% of your monthly pre-tax income and 36% of your total debt. This is also known as the debt-to-income (DTI) ratio.
How much do you have to make a year to afford a $250000 house?
$65,310
How much do I need to make for a $250,000 house? A $250,000 home, with a 5% interest rate for 30 years and $12,500 (5%) down requires an annual income of $65,310.
What income do you need for a $800000 mortgage?
For homes in the $800,000 range, which is in the medium-high range for most housing markets, DollarTimes’s calculator recommends buyers bring in $119,371 before tax, assuming a 30-year loan with a 3.25% interest rate.
How much would a $350000 mortgage cost per month?
Monthly payments on a $350,000 mortgage
At a 4% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $1,432.25 a month, while a 15-year might cost $2,588.91 a month.
How much income do I need for a 700k mortgage?
You need to make $259,022 a year to afford a 700k mortgage. We base the income you need on a 700k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $21,585. The monthly payment on a 700k mortgage is $5,180.
How much house can I afford on a 120k salary?
Safe debt guidelines
So start by doing the math. If you make $50,000 a year, your total yearly housing costs should ideally be no more than $14,000, or $1,167 a month. If you make $120,000 a year, you can go up to $33,600 a year, or $2,800 a month—as long as your other debts don’t push you beyond the 36 percent mark.
How much should you make to afford a 400K house?
According to this calculation, a prospective homebuyer looking to purchase a $400K house should make roughly $100,000 a year. Again, this number may vary with other considerations such as budget limitations, other loan obligations, and the details of your mortgage.