Real Estate VS Stock Investing
Dalal Street Investment Journal|November 06, 2023
The persistent dilemma of choosing between real estate and stocks frequently surfaces. The typical response always revolves around an investor’s financial condition, objectives, investment horizon, and risk appetite. However, the response should delve deeper into this matter, emphasising that the answer should transcend the mere consideration of these factors and empower investors to make informed decisions. Mandar Wagh sheds light on the aspects that provide a competitive edge to decide which option is better in terms of liquidity, returns, risk management and portfolio diversification.
Mandar Wagh
Real Estate VS Stock Investing

While investing, individuals typically encounter a variety of investment opportunities, including real estate, precious metals like gold or silver, commodities, stocks, bonds, mutual funds, crypto currencies, and other financial instruments, where they can allocate their funds to potentially generate returns. Many investors still exhibit a common psychological preference for tangible assets like property or gold, as they perceive these investments to provide a greater sense of control. The perennial question that often arises is whether to invest in real estate or stocks.

Let’s understand first the pros and cons of these investment options and then discuss other relevant aspects that can aid in determining which option holds greater potential for growing investors’ wealth while effectively managing risk.

Important Aspects to Stock Investing

Liquidity

Liquidity stands as the paramount consideration in the realm of investments. Real estate assets pose a challenge in quickly transforming them into cash without exerting substantial pressure on their market value. The process of selling a property is often time-consuming, characterised by the need to identify a suitable buyer, engage in negotiations, and navigate through legal procedures. This intricate process can dissuade investors seeking rapid access to capital. Conversely, stocks possess exceptional marketability, enabling swift transactions on stock exchanges and other trading platforms. This agility empowers investors to promptly react to shifts in market dynamics, news, or alterations in their financial circumstances.

Divisibility

Esta historia es de la edición November 06, 2023 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.

Esta historia es de la edición November 06, 2023 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.

MÁS HISTORIAS DE DALAL STREET INVESTMENT JOURNALVer todo
All That Shines is Gold & Silver
Dalal Street Investment Journal

All That Shines is Gold & Silver

Precious metals gold and silver hold a special place when it comes to the investment journey of Indians. They help diversify investment risks and provide a hedge against market volatility, making them an essential component of a well-rounded investment strategy. Vaishnavi Chauhan explores the impact of precious metals on your portfolio.

time-read
7 minutos  |
22 April, 2024
All You Wanted To Know About SIP
Dalal Street Investment Journal

All You Wanted To Know About SIP

Is rupee cost averaging effective across all market phases, including uptrends, consolidations and downtrends? You probably might not have observed its performance in each phase or may have exited investments upon seeing negative returns. Rakesh Deshmukh takes a closer look at the scenario

time-read
6 minutos  |
22 April, 2024
When Is The Right Time To Sell Mutual Funds?
Dalal Street Investment Journal

When Is The Right Time To Sell Mutual Funds?

Imagine this scenario: You have diligently crafted your mutual fund portfolio, aligning each investment with your financial objectives and risk tolerance. All seems well until one day the market takes a steep dive, injecting uncertainty into your investment journey.

time-read
9 minutos  |
22 April, 2024
Middle East Tension Disrupt Global Equities
Dalal Street Investment Journal

Middle East Tension Disrupt Global Equities

In the past fortnight, global stock markets experienced a rollercoaster ride, due to continued inflation concerns and escalating tensions in the Middle East. This confluence of events triggered a flight to safety, pushing investors towards safety assets

time-read
2 minutos  |
22 April, 2024
Gold and Oil Stay Solid Amid Escalating Geopolitical Issue
Dalal Street Investment Journal

Gold and Oil Stay Solid Amid Escalating Geopolitical Issue

A boom in select commodities has threatened the central banks' inflation fight and interest rate cuts and now the gloves are coming off for them as they try to tame inflation

time-read
2 minutos  |
22 April, 2024
India - A Cure For Pharma Outsourcing Woes?
Dalal Street Investment Journal

India - A Cure For Pharma Outsourcing Woes?

Eroom's Law, the grim corollary to Moore's Law, paints a concerning picture for the pharmaceutical industry.

time-read
9 minutos  |
22 April, 2024
Infrastructure Sector Is It Reaching For The Skies?
Dalal Street Investment Journal

Infrastructure Sector Is It Reaching For The Skies?

With the upcoming Lok Sabha elections looming, many of us may be feeling the urge to invest in infrastructure stocks, hoping for a favourable impact on investments if a strong political mandate ensues. Mandar Wagh delves into the government's emphasis on infrastructural development, future growth triggers and the critical factor of fundamentals that must be taken into consideration before investing

time-read
7 minutos  |
22 April, 2024
STABILITY ROCKED BY COMPETITION
Dalal Street Investment Journal

STABILITY ROCKED BY COMPETITION

While the company’s product portfolio and availability through various retail channels is undoubtedly impressive, the increasing competition posed by start-ups in the organised sector and the tendency of young consumers to try out various brands instead of displaying single brand loyalty is an issue of concern when it comes to future growth prospects

time-read
5 minutos  |
22 April, 2024
Launches A Wide Range Of Air-Conditioners
Dalal Street Investment Journal

Launches A Wide Range Of Air-Conditioners

A leading name in the consumer electronics industry known for its innovative and cutting-edge technology, Cellecor Gadgets Limited is now stepping into the domain of air-conditioners, all set to make them available across India starting this month

time-read
3 minutos  |
22 April, 2024
Domestic Markets Spin Into A Higher Orbit
Dalal Street Investment Journal

Domestic Markets Spin Into A Higher Orbit

The domestic market experienced a period of volatile trading sessions over the last two weeks, predominantly characterised by upward momentum. According to data released by the Ministry of Commerce and Industry, the index of eight core industries for February 2024 showed a growth of 6.7 per cent, an increase from 4.1 per cent in January 2024.

time-read
1 min  |
22 April, 2024