Suppose anyone has a perintal property from his father , than he wants to know if he selling this property  and the amount which he received after sold out the property and he wants investing the money in Mutual Funds, than this decision will be wise. Choosing to invest in real estate Versus financial assets is a difficult situation that many Indian investors face. If we comparing the returns and a few other factors, the results indicate in favour of financial assets.

It is seen the real estate has given an average annual yield of 7 - 10 percent over the last 7 years, across in major cities in India. These returns are depend vary widely on the location.These are an average and pertain to a specific period .  On the other hand the Sensex - a popular mrket index - clocked a high 14 percent return over the same time frame. MOREOVER , The nature of real estate is also a problem since property disposal needs to be planned.

If financial assets are a better choice, than why do Indians continue to allocate towards real estate ? The real estate investment isnot sell buy daily, unlike financial assets gives better returns, with watching your investments fluctuate can be compel you to sell your investments at the wrong time. Real estate while permit for a complete rest until you may decide to get the property value up raised.

Suppose if you have to much property and you have another house to live in, it makes to allow invest the proceeds in financial assets for the long term. We advise investing the funds by systematically spreading them over a 3 - 4 years period. While if you are selling the property will trigger a 20 percent long term capital gains { LTCG tax } , we suggest moving the money  to mutual funds as they usually prove beneficial in the long run. To invest the money in mutual funds is a better option .