When you have money you want to put to good use, you may be tempted by any number of investment options. Two popular options that often come to mind include mutual funds and real estate. But which one truly comes out on top and why? Today, we will explore that.
What Are Mutual Funds?
Mutual funds pool money together with other investors. Supplemented with a portfolio, you receive a group of stocks, bonds, or additional securities in exchange for your money.
The value of the portfolio’s assets divided by the amount of shares is what determines the pricing of mutual funds called the NAV, or net asset value. However, know that the investor doesn’t actually own the assets themselves—only the shares.
Also note that each mutual funds investment carries their own goal, portfolio and risks. Fees can potentially arise and cause a reduction of returns which might make mutual funds not a great option for you.
What About Real Estate?
On the other hand, real estate is another way to invest your money. Real estate investing is the process of buying, owning, leasing, or selling properties (land or buildings) for profit.
Real estate usually falls into four distinct categories:
Industrial: warehouses, factories
Land: farming, ranches
Investing in real estate can take on many different forms. Maybe you choose to invest in properties directly and rent out units. Maybe you are just looking to diversify your portfolio and would prefer to take a more indirect approach to real estate.
No matter your needs or preferences, real estate can accommodate you.
Real Estate: The Better Investment Option?
Investing can be a risky business. Obviously, you want to be ensured when putting your money out there.
Making up 60% of the world’s wealth and assets, real estate investing has previously proven itself to be a sound way to invest your money.
There are many benefits of investing in real estate, including:
- Leverage, or the borrowing of capital to increase the potential profit, allows you to invest when you cannot buy the property yourself.
- Your investment in real estate provides ways to save on taxes, too. Your profits can be listed as capital gains with lower tax rates, and overtime, lower the tax basis with depreciation of your properties.
- Finally, you’ll have more control over your real estate investments than you would with mutual funds. Instead of waiting for a profit of a stock, you are the person in charge of prices, improvements of the property, and other forms of revenue at all times.
Bottom line: real estate comes out on top as an investment option that is always relevant, accessible, and meaningful. While you cannot always predict what a market will look like, you can rest easy knowing that your assets are physical with evident value, unlike mutual funds, which can fluctuate wildly.
About Jacky Fils:
Who am I? I am a Real Estate Investor & Entrepreneur who happens to be a physician. I have chosen this path after understanding very well the in’s & out’s of above-average return on investment (ROI), backed by a solid asset, Real Estate. I have been actively investing in real estate in the western Massachusetts area for a number of years. My mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners. It is truly a win-win-win way of investing!
Jacky offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Jacky.
For more information about Jacky and his investment program,
please call 857-800-1237 or visit https://jackyfils.com/