Best Investment Option: Stocks, Real Estate or FDs

Stocks Markets vs Real Estate

The stock market is an intersection where buyers and sellers of stocks belonging to various companies meet. Despite the more dynamic nature of stocks, real estate provides more control over monetary activities. An individual with stocks is a mere spectator, swaying along the direction in which the company's stocks are moving. Unlike the above, you are in direct control of your assets. Also, unlike the risks under stocks, a real estate asset is a much safer investment, where the asset value isn't subjected to drastic fluctuation.

But when one talks about stock markets, the higher rate of return should never be undermined. Stocks can be disposed off too easily, unlike real estate assets. Stocks enable you to invest in various sectors and themes, while real estate is restricted to one's financial capability.

Real Estate vs Fixed Deposits

Real estates and Fixed Deposits, both provide the financial security that an investor is looking for. Under fixed deposits, an investor is assured of their returns. Liquidity in fixed deposits is very high. One can break the FD anytime he/she wants. The same scenario, during urgency, cannot be repeated in real estate for one might have to dispose of the asset in value much cheaper than the true market value. Also, fixed deposits are flexible to invest in, with an option to invest any amount for a time duration ranging from a month to a decade.

Alongside, one disadvantage of fixed deposits is their low returns, which barely competes with the nation's inflation rate. Properties bought in real estate puts one in direct control of his/her investment. Where fixed deposits are stagnant to an extent, real estate values doesn't follow the same capping as does the former.
 

Fixed Deposits vs Stock Markets

As discussed, under fixed deposit an investment is more secure as compared to stocks. But this security comes at a cost of low returns. Investment in the stock market would yield a higher dividend. Another aspect dividing these two would be liquidity. Stocks can be sold or bought at an easier rate. Whereas, fixed deposits come with a stipulated lock-in period. If one wishes to withdraw their FDs within this time period, they will attract a pre-closure charging fee and receive the amount at a lower rate of interest.
 

The table above aptly sums up various points surrounding stock markets, fixed deposits, and real estate. Every investment policy is unique. The three compared above; each has pros that are highly lucrative for an investor. It hence falls upon the investor to make the right investment depending upon his/her capability.

Each investment avenue, fixed deposits, real estate, and the stock market, offers unique advantages. The ideal choice depends on an investor’s goals, risk tolerance, and financial capability