Do solid assets give solid returns?

It seems to have turned farmers to crorepatis. Old uncleji who hung on to that tiny little Bandra flat since the 1970s, is now a man of fortune. If Real Estate worked for our forefathers, why shouldn't it work for us? Gold also has a similar story. The women in our families swear by it and it has protected wealth before the world had even heard the words 'mutual fund' and 'SIP.'

The story of these asset classes is more complex than meets the eye. Real Estate investors often ignore the effect of compounding in their calculations. They forget to take into account the property taxes, society maintenance charges and countless plumber, electrician and carpenter payments they have made over the years. The Rent Control Acts in 1950s and 60s destroyed real estate value by weakening property titles. Gold Investors often took enormous risks with their personal safety by storing gold in their homes. They were often defrauded by unscrupulous jewellers and subject to hefty making and melting charges. Recent events such as demonetisation and the black money clampdown have further muddied the investment picture.

So should you invest in them now or shouldn't you? In our latest Money Hangout, Dhirendra Kumar will take up this question along with your other personal finance queries. Join us.

When are gold and real estate good investments?
Date: Friday, Jan 27, 2017
Time: 12:30 PM - 1:00 PM

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