Investment Returns: There are many ways to invest money these days, and people often talk about gold, REITs, and AIFs because they are so different from each other. These investment choices don’t work the same way and they don’t give the same kind of returns either.
Gold is known as the traditional and safe option. It has been used for hundreds of years and people still trust it today. Gold is usally much more usefull.
Income Tax Refund Status 2025: Step-by-step guide to track your ITR refund online
Abhishek Khudania said gold still works as a hedge during uncertain times, especially when global tensions are high. He also said that gold has sometimes even done better than stock markets in the past few years. He explained that rich people usually keep about 5 to 15% of their money in gold, not to grow wealth fast but to balance their investments and reduce risk, reported CNBC TV18.
REITs and Real Estate
REITs, or Real Estate Investment Trusts, are a way for people to invest in real estate without actually buying property. These allow investors to earn money from commercial spaces like office buildings or malls without having to manage anything themselves. Vinayak Magotra explained that REITs are useful because people don’t need to be landlords or deal with any property issues.
They also give income regularly, which makes them attractive. With India’s commercial property market growing fast, REITs are becoming more popular. He also said the rules are improving, which means more transparency and better tax benefits. Khudania added that REITs in India are now worth over ₹1 lakh crore and they usually give a return of around 7% through rent and price increase of the property.
AIFs: For Bigger Risks
AIFs, or Alternative Investment Funds, are totally different. These are not the usual stock or mutual fund types. They deal with things like private equity, venture capital, hedge funds, and even pre IPO investments. They are often used by people who want to take more risk and want to explore unique ideas or businesses. Magotra said AIFs offer special strategies like long-short equity and investments in early-stage sectors.
Inheritance Isn’t Always Tax-Free for NRIs: All about Tax on Inheritance in India
Khudania said these funds can give returns between 12 to 18%, and they usually don’t follow public market patterns. This helps in keeping the portfolio balanced and gives access to professional fund managers who handle these investments well. AIFs had received over $150 billion by the end of 2024, which shows how fast they are growing in India.
Liquidity and Taxes
One major thing that separates these three options is how easy it is to take money out. Gold, whether in digital or physical form, is easy to sell and remains very liquid. REITs are listed on stock markets so they are also liquid but their prices can be affected by the overall market. AIFs, on the other hand, are not easy to exit. They have lockin periods and are better for people who can keep their money invested for a longer time.
Tax rules are also different for each one. Sudhir Kaushik shared that under the new tax regime, investors don’t get the Section 87A rebate on capital gains.
