Zerodha founder explains how real estate versus stock market investing has performed in 20 years
Nikhil Kamath, co-founder and CIO of True Beacon and Zerodha recently shared some interesting data on his Twitter account comparing investment in real estate and the stock market over the past 20 years and their performance in comparison over said period.
The graphical representation, which Kamath attributed the research to a Twitter account called The Oddball, showed the value of a property relative to the cumulative value of investments at the end of each year from 2000 to 2020.
Kamath tweeted the data with the caption asking subscribers to predict how asset classes will perform over the next 20 years. “Any guesses on the next 20?” He tweeted.
For real estate investment, it is said that in case one buys a house, the person will have to pay various overheads and down payments on the loan taken for the same, which all constitute the initial investment. Whereas if one had initially rented and invested the capital instead, the person could have bought the same house while earning a profit of about ??2.5 crore in 2020, according to data.
Kamath often shares an interesting set of data related to investments, personal finances and more on his Twitter account. Zerodha, the Bengaluru-based brokerage house, started operations in August 2010. The startup was started by brothers Nithin and Nikhil Kamath. Whereas True Beacon, led by Zerodha co-founder Nikhil Kamath and Richard Pattle, manages assets worth ??1,300 crore with over 300 high net worth (HNI) and high net worth (UHNI) clients around the world.
Never miss a story! Stay connected and informed with Mint. Download our app now !!