Triple Net
vs.
Mutual Funds
Average Mutual Fund Returns
Before we can talk about Multual Fund “average” returns, it is important to define what “average” means.
Let’s say you invest $100,000 and the market goes up 50%, then down 50%, then up 50% then down 50%.
$100,000 x 150% = $150,000
$150,000 x 50% = $75,000
$75,000 x 150% = $112,500
$112,500 x 50% = $56,250
$150,000 x 50% = $75,000
$75,000 x 150% = $112,500
$112,500 x 50% = $56,250
This produces an “average” return of 0%, whereas, in reality, you’ve lost 43.75%!!
According to Dalbar’s 2015 Quantitative Analysis, the average mutual fund investor made just over 2.54% from 1993 to 2013 with the 30-year annual return being 1.9%.
With a triple net property, your returns are significantly higher and they are immune to the wild swings of the economy. You never pay fees and your income is guaranteed by a multi-billion dollar corporation for 10-25 years. You also pay significantly less in taxes because of depreciation.
