Tag Archive: Expected return


This is a constant discussion that I have been doing with people around me, People admire real estate and  they are blogstill the firm believer that real estate give better returns than any other asset class.

Here am breaking the myth with few examples and facts although the message was forwarded to me on a WhatsApp group and it really make sense:

Film actor Rajesh Khanna bought a bungalow in iconic Carter Road in Mumbai for Rs.3.5 lakhs in 1970. His heirs sold it recently for Rs.85 crores. The property has multiplied by 2428 times or an annualized return of 19.38% over 44 years.  Continue reading

History shows that mutual fund investors generally increase inflows after observing periods of strong performance. They buy at bloghigh prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.

This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.”  Continue reading

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