Maximize Your Property Sale: Tax Strategy That Works

Note: All the returns are taken as post tax.

Property values include rental income if any +plus capital gain.

Conclusion: We believe that paying capital gains tax and investing the net proceeds in mutual funds offers a significantly better risk-reward profile than reinvesting in property purely for the purpose of saving tax.

Mutual funds provide key advantages like:

• Liquidity – assets can be sold anytime without long waiting periods
• No legal or title-related hassles – unlike real estate
• No maintenance or tenant issues – making it stress-free
• Diversified exposure and professional management – improving overall efficiency

While real estate is illiquid and comes with operational and compliance burdens, mutual fund investments can be tracked daily and tailored to your risk profile. With a disciplined approach and a well-planned strategy, mutual funds are a superior choice — especially with a 5-year investment horizon. It also depends upon the age of the investor. This is not a one fit all solution.

In our view, if one can manage short-term emotional volatility and focus on long-term goals, mutual funds clearly emerge as the more efficient, flexible, and rewarding option.