Mutual Fund Alternatives ? With Lower Risk and Higher Returns
Written by admin on April 19th, 2011Mutual funds as a group perform badly over the longer term.
Most cannot out perform the share index furthermore, a mutual fund is considered good if it reaches double digit gains.
If you take into account the effect of inflation on growth, mutual funds don’t look so attractive and the risk is high, with 30% or more in terms of drawdown and years to recovery in many instances.
So what are the alternatives?
There are plenty of mutual fund alternatives that not only offer higher returns, but lower risk and here we will look at one.
We all know that property is a good solid long term investment and it gets even better if it’s overseas investment property.
Overseas investment property is:
Cheap
Has high growth potential and low risk in many locations
can be very tax efficient
The country we will look at here is Costa Rica.
An example of the high growth potential can be made is illustrated by the following example.
A property purchased for just ,000 near the popular holiday resort of Jaco 15 years ago, is worth 0,000 today.
The above gets even better when you consider these gains were steady and drawdowns were small and short lived.
But it gets better.
Overseas investment property can not only yield capital gains, it can also provide valuable extra rental income and act as a free holiday home – so you get to enjoy it to!
Will Costa Rica continue to provide great investment returns?
The answer is yes.
As more Americans want beach front property at affordable prices and in Costa Rica properties can cost up to 70% less than in the USA and Costa Rica is only a 2 hour flight away.
There are many expanding resorts where property can be bought cheaply with solid long term capital growth potential.
The buying process is easy.
Costa Rica encourages foreign investment and overseas buyers get the same rights as residents.
Investing in overseas property is also much easier than many people think.
You don’t need any specialist knowledge and there are many Realtors who specialize in helping foreign buyers acquire the right property in terms of:
Their budget and their expectations in terms of growth.
Many investors simply hope their mutual funds will deliver above average capital gains, but the odds are against them, despite what the sales literature says.
Of course, the risk is also high when investing in mutual funds and losing periods can and do, last years.
Costa Rica offers a great alternative to mutual funds and offers high returns, coupled with low risk.
If you are looking for solid longer term gains then an overseas property investment in a country such as Costa Rica is ideal.
Add in the potential for good rental income and a free holiday home and you have an investment you can actually enjoy as well, in one of the most beautiful countries on earth.
Consider the facts
Add all the above up and you have an investment that is well worth considering, from both a financial and a lifestyle point of view.
Over 100,000 Americans and other foreign investors have bought property in Costa Rica and maybe you should consider it to.
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