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Equity Mutual Funds Vs Property Vs Gold

Equity mutual funds vs property vs gold from Mutual fund Advisor ANANDARAMAN 944-529-6519

3 replies on “Equity Mutual Funds Vs Property Vs Gold”

Your calculations on page 19 comparing returns from property bought on loan vs FD+RD are incorrect. The correct way is to list down all outflows and inflows year-wise in both the cases and calculate IRR. Here are results: property bought with home loan – IRR 29%; Investment in FD & RD: IRR 10%.

The returns from equity MFs have been good but overstated here. While a justification is given for choosing the base of 1997, there is no justification to use currently elevated level of sensex. A mid point of the current bull market (15000-30000) is 21,000 which should be used to calculate returns from equity MFs. Period upto 28/2/2014 can be used when sensex was around 21000. 21k is midpoint as 21/15 = 30/21.

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