A Pune-based financial entrepreneur Ravi Nagrani has shared that when he signed for his first flat back in 2010, it felt like a smart move. Sharing a post on LinkedIn, Nagrani said the salesperson promised that the half-built tower on a dusty construction site would soon sit in the middle of malls, schools, and wide roads. An investment of ₹29 lakh, he was told, could triple in value over the next decade.
Thirteen years later, Nagrani sold the flat for ₹50 lakh. On the surface, a ₹21 lakh gain looked like a sound decision. But when he calculated the annualised return, it worked out to just 4.28% – lower than a standard fixed deposit.
If invested in 2010, he says, an SWP would have given him ₹15,000 every month for 13 years – about ₹23.4 lakh withdrawn over the period – and still left him with a corpus of roughly ₹82 lakh by 2023.
That would total ₹105.4 lakh – more than double the ₹50 lakh he got from selling the flat. Even after accounting for rent, the gap remained large.
No rent for the first two years due to construction delays
₹6,000 monthly rent in 2012, rising to ₹16,000 by 2023
About ₹14.5 lakh earned in rent over 11 years
Adding rent and the sale proceeds brought his property earnings to around ₹64.5 lakh. That was still ₹40.9 lakh less than what the mutual fund strategy could have delivered.
He also acknowledged the emotional satisfaction of owning property. But as an investment, his conclusion is clear:
Real estate has its place, especially for living or diversifying wealth.
Mutual funds, though not risk-free, offer transparency, flexibility, and compounding benefits.
For pure returns, the quiet growth of funds can outweigh the hassles of managing property.
“In hindsight, the numbers speak for themselves,” Nagrani wrote. “Both property and mutual funds carry risks. But only one grows silently in the background.”
Thirteen years later, Nagrani sold the flat for ₹50 lakh. On the surface, a ₹21 lakh gain looked like a sound decision. But when he calculated the annualised return, it worked out to just 4.28% – lower than a standard fixed deposit.
Mutual fund vs Property: the numbers
Nagrani compared his property investment with what the same ₹29 lakh could have done in a balanced mutual fund through a Systematic Withdrawal Plan (SWP).If invested in 2010, he says, an SWP would have given him ₹15,000 every month for 13 years – about ₹23.4 lakh withdrawn over the period – and still left him with a corpus of roughly ₹82 lakh by 2023.
That would total ₹105.4 lakh – more than double the ₹50 lakh he got from selling the flat. Even after accounting for rent, the gap remained large.
The reality check
Property investors often point to rental income as an advantage. But Nagrani’s experience shows otherwise.No rent for the first two years due to construction delays
₹6,000 monthly rent in 2012, rising to ₹16,000 by 2023
About ₹14.5 lakh earned in rent over 11 years
Adding rent and the sale proceeds brought his property earnings to around ₹64.5 lakh. That was still ₹40.9 lakh less than what the mutual fund strategy could have delivered.
The hidden costs of real estate
Beyond the numbers, Nagrani highlighted the stress of owning rental property – from maintenance bills and repairs to leakages, tenant disputes, and periods of vacancy. Mutual funds, he pointed out, offer a simpler alternative: “That ₹15,000 SWP would have hit my account like clockwork, without late-night calls about leaking pipes.”Lessons for investors
Looking back, Nagrani admits his decision reflected the sentiment of the time. In 2010, property was widely seen as the safest bet. “Everyone believed real estate doubles every five years. Neighbours bought flats, not funds,” he said.He also acknowledged the emotional satisfaction of owning property. But as an investment, his conclusion is clear:
Real estate has its place, especially for living or diversifying wealth.
Mutual funds, though not risk-free, offer transparency, flexibility, and compounding benefits.
For pure returns, the quiet growth of funds can outweigh the hassles of managing property.
“In hindsight, the numbers speak for themselves,” Nagrani wrote. “Both property and mutual funds carry risks. But only one grows silently in the background.”
