While you ask an Individual or group which asset class gives the highest return , their answer sound in common ‘Real Estate or Gold’, some here & there might say Equity.

Their might be ‘N’ number of reasons for this type of response. But it will always be better to back your answer on data rather than being impulsive.

In this article I will brief you the merits & demerits of these 3 asset class. Which in turn will enhance your understanding on how to make a better use of these 3 asset classes in your portfolio.

Benefits & Shortcomings of Investing in Equity, Gold and Real Estate:

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Returns Comparison from 1980-2014:

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Comparison of Equity, Gold and Real Estate:

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Conclusion:

One should invest in each of the 3 asset classes depending upon his liquidity, taxation, risk profile, return expectation etc. Being overweight on one single asset class might be risky.

My Take: Investing in Equity Mutual Fund via S.I.P. mode will be a better option if your horizon is long. Due to better attributes advantage as depicted above. Though balanced weighted asset allocation shall be maintain periodically.

Contact your Investment Planner for proper Portfolio Re-balancing & selecting the Right Asset Mix for you.

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