Compare - StockBasket vs Real Estate
Well, the comparison between StockBasket vs Real Estate may not be an apple to apple comparison, as one real estate (shelter) comes under one of the basic necessities of a human being. We will compare real estate in terms of an investment asset class.
Let’s first start with what can be considered as real estate investments and to invest in them. Real Estate investment can be defined as an investment in real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence.
Advantages of investing in Real Estate:
1. Additional income:
- You can always get a good amount of money by renting your property. This amount also increases after the time (year on year increase)
2. Hedge against the market:
- Investment in real estate has no direct correlation with paper-based assets like equity and debt etc.
3. Tax Benefits:
- By section 80C you can save a good amount of tax by investing in real estate.
The disadvantage of investing in Real estate:
1. Requires huge capital:
- Real Estate investments require huge amounts of capital to invest, while with StockBasket, you can start your investments with as low as Rs. 3,000.
2. Liquid investments:
- Real estate property cannot be easily sold, buying and selling Real Estate properties can be burdensome and often take months to complete.
3. High maintenance cost:
- Real Estate investments require a lot of maintenance which creates a headache, while StockBasket investments are a stress-free way of investing
- It is not always easy to find suitable tenants time and again
StockBasket
StockBasket is India’s first buy and hold long-term investing platform, it operates under the Samco brand. It has a pool of expert-curated ready-made basket of stocks designed as per the investor’s financial goals like International Vacation, Retirement plans, or saving for one’s child education. Investors have to hold the basket for at least 5 years for wealth creation.
Let’s have a look at some of the Advantage and Disadvantages of StockBasket :
Advantages Of StockBasket:
1. High Returns on Investment:
- Average returns on investment on StockBasket are very high.
- The CAGR of average StockBasket lies between 15-17% which has the potential to double your investments in just 5 Years
2. High Inflation Beating Capacity:
- As the Compounded annual growth return is very high it can easily beat the inflation and give you some staggering return on investment.
3. Tax-free Dividends:
- With StockBasket you get the benefit of dividends which are directly credited to your bank account.
4. Low Minimum investment amount:
- StockBasket was made with a purpose that wealth creation should be accessible to all, the min investment in StockBasket starts from Rs. 3,0000.
Disadvantages Of StockBasket :
1. Dependent on Market forces:
- Like other investments in Stocks, StockBasket is also dependent on the market forces, but due to the selection of top companies in the basket, they usually have less impact of the market corrections on them.
2. Penalty on Early Exit:
- StockBasket charges twice the exit fee if the investors sell his StockBasket before 5 years.
- his policy is purposely made to bring discipline in investors to stay invested for at least 5 years for long-term wealth creation
Summary:
StockBasket VS Real Estate:
- Though it may not be an apple to apple comparison, but we can still say that real estate is mostly not affordable by common investors.
- They are risky bets in generating wealth over a long-term period.
- Instead, investors should invest in StockBasket which have a high inflation-beating capacity that will help to achieve your financial goals within the stipulated period of time.