Benefits of Investing in Bluechip MFs over Investing in Residential Real Estate

mutual fund Bluechip

Embark on a journey to unravel the advantages of investing in Bluechip Mutual Funds compared to residential real estate. This article delves into the realms of superior returns, increased passive income, and reduced transaction costs, shedding light on why Bluechip MFs may be a more lucrative and flexible investment avenue. Gain insights to make informed financial decisions and optimize your investment portfolio.


1. Superior Returns:

Bluechip MFs, being equity investments, provide “GDP plus Inflation” returns. This typically surpasses the returns from “Real Estate Investment,” often considered a mere “Inflation Investment.”


2. Enhanced Passive Income:

A comparison of returns highlights that an investment of 1 Crore in Real Estate may yield a maximum monthly passive income of Rs. 30,000, equivalent to a 0.3% monthly or 3.6% yearly return. On the other hand, Bluechip MFs, with a 7.2% Systematic Withdrawal Plan (SWP), can generate a monthly passive income of Rs. 60,000, coupled with an additional 4-6% appreciation per year.


3. Lower Transaction Costs:

Real estate transactions involve high costs such as 7% registration charges, 1% brokerages, 15-18% interior costs, property tax charges, khata costs, etc. In contrast, Bluechip MFs have zero account opening fees.


4. Immediate Passive Income:

Unlike real estate, where rental income may start only after a few years, Bluechip MFs begin generating passive income immediately. Investors can start receiving Rs. 60,000 per 1 Crore every month from the next month itself.


5. Minimized Risks:

Real estate investments come with legal issues, delayed delivery problems, non-completion challenges, tenant-related uncertainties, less price transparency, lower liquidity, zero granularity, and higher taxation. These issues are not present in Bluechip Funds.



6. Efficient Management:

The management and maintenance of real estate can be a significant time and resource-consuming affair, unlike the relatively hassle-free nature of managing Bluechip MFs.


7. Easy Exit:

While real estate investments cannot be easily reversed, investments in Bluechip Funds offer the flexibility to exit at any time with ease.


8. Tradable Assets:

Unlike real estate properties like flats or villas, you can easily sell a small portion of your Bluechip MF holdings, providing greater liquidity.


9. Appreciating Assets:

Real estate assets, such as flats and villas, often depreciate due to wear and tear, construction damage, and interior depreciation. Bluechip Funds, in contrast, do not face such issues.


10. Reduced Headaches:

Investing in real estate can bring various challenges, including management headaches and the complete blockage of precious capital, which is not the case with Bluechip Funds.


In conclusion, Bluechip Mutual Funds presents a more flexible, liquid, and potentially rewarding investment option compared to residential real estate. However, it’s important to note that Mutual fund investments are subject to market risks, and past performance does not guarantee future results. Additionally, the historic return of 12% is provided for informational purposes.


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