Is the stock market the best instrument to make money... read on

I don’t think so.

On an average, a company pays 2% dividend annually. Consider that you invest Rs. 1 crore in the stock market. You are entitled to approximately Rs.2 lakhs annually. This isn’t enough to live a lavish lifestyle. Also you can expect to grow your investment by 10% or something, which means that your dividends also grow by 10% annually.

On the other hand, you can consider alternatives like the real estate. You can buy a decent house in the NCR region of India in Rs. 1 Crore and let it out on rent. A decent property fetches you Rs.30,000 rent monthly. Thats about Rs. 3.5 lakhs annually. Thats a lot more than the dividend amount you were getting. However, property rates don’t grow by 10% annually, but your rent does. This would be just slightly better if not equal. Stocks can go down some years, but property rates will increase, albeit by a small percentage.

Another upcoming option is… Airbnb😄. People are buying properties and converting them to make them fit for letting them out on a daily booking basis. Expected income is about Rs.5000 per day. Yes, that much! 😁. However, you cannot expect to fill out your property 365 days a year, so don’t get overexcited. Some days it will remain vacant, and you will have a high maintenance cost since it needs to be in top notch condition every day. However, you can expect 5–6% returns on your property cost annually, which for Rs. 1 Crore is more than Rs.5 Lakhs.

Disclaimer:

These are just estimates and my own opinion. I don’t intent to promote or suggest that you go for any one or more options from above. Please do your own research before investing your money.

-Mudit ‘Moody’ Agarwal.