Entrepreneur Regrets Selling Plot And Reinvesting Money In Mutual Funds; Here's Why

Mall recounted his decision 15 years ago to purchase a plot of land, which he sold three years later. During the brief period he owned the land, its value surged tenfold

Author and entrepreneur Sandeep Mall has sparked a conversation on the social media platform X (formerly Twitter) with his recent post delving into investment insights and reflections on missed opportunities. Mall elaborated on his personal experience, recounting how transitioning his funds from real estate to mutual funds ultimately turned out to be an unfavourable investment strategy for him.

In his detailed post, Mall recounted his decision 15 years ago to purchase a plot of land, which he sold three years later. During the brief period, he owned the land, its value surged tenfold, presenting a substantial profit opportunity. However, Mall disclosed that instead of reinvesting in real estate or exploring alternative avenues, he redirected the proceeds from the land sale into mutual funds.

Reflecting on his investment journey, Mall revealed that over a span of 12 years, the funds he allocated to mutual funds have appreciated by 2.5 times. However, the current value of the plot of land has escalated to an astonishing 100 times its initial worth. In hindsight, Mall realised that if he had retained ownership of the land for the entire 15-year period instead of reinvesting in mutual funds, he would have substantially increased his financial gains.

“Had invested in a plot 15 years or so back and in three years it grew 10x and in some emotional moment sold it. Later on invested that sun in MFs which in 12 years have grown around 2.5 times. Came to know the plot today is 100x.” He wrote on X.

The Mall post has received considerable attention from the X users and attracted many comments. “It's alright I guess, the pursuit of profitability never truly ends. A close friend with over a million-dollar portfolio once told me that he couldn't have achieved it if he'd been consumed by regret for booking profit early. He told me to view it as a blessing as long as it's in the green,” wrote one of the X users.

“You are comparing the two extremes: the best of the real estate with the worst of equity. Lets reverse the role and then see. Apart from the asset class, the decision and timing also plays an important role which you have not factored in,” added a second user.

A third user said, “I have a completely opposite story. Invested in a plot in Sarjapura Bangalore in 2010. Decided to sell in 2016 as direct equity was giving better return. Sold finally in 2019 at 40 per cent profit. Started direct equity investment in 2014 and was able to grow capital 17 x in last 10 years.”