Someone bought a property for ₹40L and sold it at his desired price of ₹80L.

He was happy! But he could've made better returns by selling it at ₹78L.

Curious? Human mind is wired to talk in absolute numbers rather than

He bought property 8 years back and sold it for ₹80L, which gave him an
annualized return of 9%.

But he started finding a buyer 6 months back and at that time, he got an offer
of ₹78L from a prospective buyer.

He refused.

Had he accepted the offer, his returns would have been 9.3% annualized.

That gain is the value of his time.

He got just ₹2L more after 6 months of wait. That reduced his returns.

Can you guess return on a property someone bought in 1980 for ₹5L and sold it
for ₹2Cr in 2020?

Just 9.7%.

Stocks gave higher returns - Sensex was a no-brainer which has given more than
13% during the same time.

Percentages act as an eye-opener when you're investing.

Tip: When calculating returns on a property, make sure you include capital gains
tax, registry fee, brokerage, and other charges involved.

What are your thoughts on this?

What return expectations should you keep with equity Mutual Funds?

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Originally posted by Anupam Roongta on LinkedIn