Real Estate Property Vs. Mutual Funds: Which Is More Profitable

Real Estate Property Vs. Mutual Funds

The ultimate objective of a real estate investor like Sean Robbins is to make sure that it gets the maximum out of the invested money.

This is not an exaggeration that each and every penny counts in the contemporary business ambiance filled with uncertainty. 

The contemporary businesses ambiance has turned vulnerable as it is inferred that markets are suffering from a lack of fund generation. 

Under such a circumstance, the investors fear that their hard-earned money might get dried out completely.

Taking this into account, investing in Mutual Funds and Real Estate Property could be good options for you to invest in.

Therefore, let’s make a juxtaposition and, consequently, try to arrive at a solution to which one is better. More on this could be accessed on So let’s get started.

What Are Real Estate And Mutual Funds

Real Estate includes land as well as Physical property involvement. The first thoughts that come here include home. This specifically denotes office areas, buildings, landscapes, and other properties. 

There are different kinds of Real Estate Properties in which an investor would invest in. They include:

  • Rental Properties 
  • Flipping Houses 
  • Historical Prices 
  • REIT’s
  • Real Investment  Investment Groups

Mutual Funds, on the other hand, involve collecting money from investors. The accumulated money or funds are invested in the business. They are generally invested in Debt funds, Liquid Assets, and other forms of assets. 

Mutual Funds could be segregated  into four different categories, and they include:

  • Stock Funds 
  • Money Market Funds
  • Bond Funds and 
  • Target Debt Fund 

So, you could easily understand that investment that both Real Estate and Mutual Funds are of varied kinds and forms. Now you need to choose based upon your propensity and economic elasticity. 

Ways To Investment In Real Investments And Mutual Funds

There are different ways in which you could invest in Real Estate properties:

Rental Properties

You could use your hard-earned capital in Rental properties. There are different property dealers that choose houses, invest them, and give them to people as rents. This is a profitable venture.

You could indirectly make your contribution and earn the profits generated through the business without any kind of direct involvement.

Real Estate Investment Groups 

These are considered ideal for the people who do want to have their own retail properties. And at the same time, they do not want to run the risk of getting involved in business directly. 

REIG would be doing the work and taking all the pains on behalf of you. Other benefits of this are that a single investor can be a part of multiple units of property. 

Online Real Estate Platforms

There are bigger commercial Residential investment platforms. They collect money through Crowdfunding. You could directly be part of them and engage directly in business decision-making there.

Other than this, there are other ways and sources within Real Estate where you could invest your hard-earned money for the long term to attain business success.

There are even different ways through which you could invest directly in Mutual Funds. They include Single Investment Plans, Systematic Investment Plans, Dividend Transfer Plans, Systematic Transfer Plans, and Systematic Withdrawn plans.

All the ones mentioned have their own positives and negatives, but this is for sure that both Mutual Funds and Real Estate offer a variety of options before the investors. 

Real Estate VS Mutual Funds – Searching For The Better Option

Both Real Estate as well as Mutual Funds have their own merits as well as demerits. In this section, a comparative study will be performed to ascertain which one would be comparatively good for you.

The entire comparison has been made depending on different standpoints and yardsticks of thoughts and conceptualization.


In terms of performance, mutual funds have the upper hand over that of Real Estate. As for Real Estate, it is slowly turning into fixed deposits where the return is a guarantee. In mutual funds, the flow of funds follows in a proper channel and facilitates better return on investments. 


An investor invests hard-earned money. It would definitely want returns on investments to be extremely consistent in the long run. 

In Real Estate, the value of the property could go as high. And at the same time, the value of the retail property could go extremely low. Therefore the element of volatility factor is prevalent in Real Estate.

On the other hand,  Mutual Funds have shown a far better consistency when it comes to getting returns on investments. 


There has been a complaint that with Real Estate, the monitoring and control of investments are considered difficult. Often it is filled with risks all around. 

On the other hand, the monitoring and control of investment in the Mutual Funds are done online and are managed from time to time. 


This has helped Mutual Funds retain trust for the long term.

Tax Exemption

Real Investments allow you exemptions in Tax. This is a company policy that conforms to the State policy.

The state or country wants its real estate to grow at a rapid pace. This involves different sections where trust is generated on the investors.

Therefore there is a high chance that you are going to get Tax Exemptions, though it will have to be the case all the time…no buddy.

In the case of Mutual Funds, there are better options for Tax exemptions and also offering good and safer returns from investments.


The sooner the investor is able to liquid funds invested; it will be to his advantage. In generic terms, liquifying investments made in real estate is not at all easy. 

On the other hand, Mutual Funds allow you to liquefy the funds and sell the funds through an online Market. 

Amount of Money to be Invested

In Real Estate, you will have to invest a good sum. If you are investing in shares, then it is a different ball game altogether. 

Compared to this, the entry is much easier for Mutual Funds. You can invest a minimum sum in Mutual Funds.

This denotes that if you are a retired employee, you could also invest in mutual funds. And you do not need to bother or take headaches regarding business decisions. All you have to do is invest. 


Therefore it could be concluded from the aforementioned discussion that both the Real Estate and Mutual Funds have their varied nature and multiple ways of investments.

Comparing both  Mutual Funds as well as Real estate point by point, it is observed that Mutual Funds clearly emerge as the winner here.

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