📖 Story: A Tale of Two Investments – Rethinking the "Best Decision"

 

📖 Story: A Tale of Two Investments – Rethinking the "Best Decision"

Earlier today, I met with a client—let’s call her Neha. She had a vision. With ₹1.25 crore in hand, she was considering purchasing a property where 30% payment (₹37.5 lakh) was due now, and the rest after 3 years. 🏠💰

She shared her pride in a past investment:
🗣️ “In May 2010, I bought a property for ₹40 lakh. Today, it's valued at ₹1.6 crore. It was the best investment I ever made!”

That’s an impressive jump. Naturally, I asked her:

“Do you know what the annual return on that investment was?”

She smiled and said,
🙂 “Must be better, right?”

When we did the math together, the answer was 9.68% per annum. 📉

Solid, no doubt. But then I asked her about her mutual fund SIP that she's been running for the last 4 years.

Her eyes lit up:
💡 “That’s been giving me around 18% p.a. returns.”

And there was the pause — the realization that while her property had appreciated nicely, her mutual funds had quietly outperformed. 📊✨

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🤔 So, What’s the Real Insight Here?

Let’s take a step back and look at the numbers without emotion.

That property Neha bought for ₹40 lakh in 2010 is now worth ₹1.6 crore — impressive growth, no doubt. But over 14 years, it delivered about 9.68% annual returns. 🏘️📈

Now compare that with her mutual fund SIPs, running for just 4 years — and already giving around 18% p.a. 🚀

🔑 It’s clear: Mutual funds have the potential to grow wealth faster, and with far less hassle.

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✅ Conclusion: The Emotional Bias vs. The Mathematical Truth

Property has emotional weight.
It feels tangible, proud, and safe. 🧱❤️

But when we strip away emotion and just look at numbers, 📊
Mutual funds are quietly winning the race — they’re:

• 💧 Liquid

• 🔄 Flexible

• 📉 Tax-efficient

• 💹 Compounding-friendly

As Warren Buffett wisely said:
🛌💸 "The best investment you can make is in something that earns while you sleep."

And sometimes, that "best investment" isn’t cement and bricks —
👉 It’s discipline and diversification.