One of the best decisions you can make for your financial health is timely investments. While there are a plethora of investment options available, the two most popular ones are FDs (Fixed Deposits) and real estate.
FD is a classic risk-averse option for keeping money in the bank. Alternatively, real estate gets you closer to owning a luxury 2 BHK home in Thane along with the security of having a home. Both these options offer different benefits to investors. However, based on their unique features, certain individuals may prefer one over the other. Here, we take a look at the two options to help you make an informed investment decision.
Fixed Deposits (FD)
Benefits
Safety: FDs are considered one of the safest investment options as they offer a fixed rate of return. Investors receive a predetermined interest on their money while ensuring their principal amount is secure.
Liquidity: FDs can be easily liquidated in case of an emergency with some amount charged as a penalty in case of an early withdrawal.
Ease of Investment: Opening an FD is straightforward and hassle-free. Investors can start with a relatively small amount, making it accessible to a wider range of people.
Drawbacks
Lower Returns: The returns on FDs are generally lower compared to other investment options like equities or real estate
Taxable: The interest earned on FDs is fully taxable.
Real Estate
Benefits
Capital Gains: Your residential property in Mulund is sure to appreciate over time, providing significant returns on investment.
Rental Income: Property can generate rental income, providing a steady cash flow. This can supplement the investor’s income and provide a hedge against inflation.
Tax Benefits: Investors can avail of tax deductions on home loans under Section 80C and Section 24 of the Income Tax Act.
Legacy: Investing in a residential property in Thane will give you the chance towards homeownership which can be passed on to future generations and help you create a legacy.
Secure Investment: Investing with a trusted real estate developer in Thane such as Ace Realty will ensure your investment is secure and grows multi-fold on project completion. Further, land is less volatile than market investments providing further security.
Drawbacks
High Initial Investment: Real estate requires a significant amount of capital upfront for a down payment which can serve as an entry barrier for many potential investors.
Low Liquidity: Real estate is not easily liquidated compared to FDs. Selling a property can take time and may involve additional costs.
When making your investment decision, it is important to take personal considerations into account such as budget, risk tolerance, and other goals.
FDs are ideal for those seeking safety, liquidity, and predictable returns. They are suitable for risk-averse investors or those looking for short-term investment options.
Real estate offers potential for higher returns and rental income. It is better suited for long-term investors looking for the security of a tangible asset along with substantial capital appreciation.
Conclusion
While both investment options are good and offer multiple benefits, the final choice depends on the needs of the investor. Opt for a balanced portfolio that combines growth-oriented investments such as real estate with liquid options such as FDs.
