In today’s highly informed, hyper-cynical, investment-crazy world, we are constantly on the lookout to safeguard ourselves. We are taught from a young age to save- it starts with our piggy bank, soon taking the shape of an app; the jingle of our coins quickly turning into the pinging of notifications. So, as we go from that tangible saving, we can touch, to numbers on a screen locked away behind ministerial procedures, it’s important we adapt to investment opportunities that may not have been considered, previously.

So, which is the better investment, real estate or stock market? The answer is both. Each has its benefits, and each has its drawbacks, and what informs your exact allocation towards either is you- your short and long-term goals, your financial situation, and the fundamental anchor of it all- your risk tolerance. It would be crude to state that any investment is devoid of emotion because each number correlates to your hard work, and this in turn is a key part of your attitude toward risk.

For people looking for greater liquidity on their investment, possibly unable to tie their funds into the long game, the stock market makes for a very enticing route. Markets see extreme corrections and growth year on year, something that real estate does not. Real Estate grows at 10% or 20%, whereas the stock market can see growth of 50% and upwards. So, if a potential quick buck is a deciding factor, stocks can be the more lucrative option, but beware of the pains of market volatility especially in the short term!

It’s often regarded by seasoned investors to take careful risks; oxymoron indeed. No investment is without its risk, but none is as volatile as the stock market. There’s a bleak saying that comes to mind- the higher you climb, the harder you fall. That’s not to deter from investing in exciting stocks, but to consider the substantial risks involved. It is widely thought that the best mitigant to risk is diversification and that is where an allocation to real estate can come into play.

Now consider Real Estate Investments, a tangible asset, and as we are often told, land appreciates over time. Over the past decade, property investment in Mumbai was on an incline, visible in the influx of high-rise structures peppering the skyline. An unfortunate reality is that a number of projects in Mumbai also faced regulatory changes and delays, and in some cases stalled entirely. In such cases, investors in those projects were strapped and liquidity became a significant issue, however, the tangibility of the property as a piece of land still retains a value, which is not always the case with stocks. One of the greater risks associated with investing in real estate is the large investment for a longer timeline, which leaves your investment tied up. That said, much like the stock market, provided everything goes well, investing in property allows you to utilise your investment to supplement your existing income.