The question of whether to invest in real estate or mutual funds is common among Peruvians seeking to grow their savings, according to a May 5 press release. Both options are regulated and accessible, but they function differently and suit different investor profiles.
The topic is relevant as both the real estate and mutual fund markets in Peru have shown significant growth. In 2024, the mutual fund market reached S/ 48,221 million in managed assets with nearly 70,000 new investors joining the system. Meanwhile, Lima’s real estate market saw record sales of over 24,700 homes in 2025 with a year-on-year growth of 19%.
Investing in property involves purchasing a physical asset that can generate monthly rental income and appreciate over time. Rental yields in Lima range from about 3.9% to 6.6% annually depending on location, with an average near 5.27%. However, this option requires significant initial capital and offers lower liquidity since selling property may take weeks or months.
Mutual funds allow individuals to pool resources into diversified portfolios managed by professional administrators under regulation from the Superintendencia del Mercado de Valores (SMV). These instruments offer higher liquidity—investors can usually redeem their holdings within days—and require less initial capital than real estate purchases.
Each investment type carries distinct risks: property investments face issues such as vacancy periods and tenant default while mutual funds are subject to financial market volatility and management decisions by fund administrators. Taxation differs as well; rental income is taxed at five percent on gross revenue while gains from mutual funds are taxed at five percent upon withdrawal if there is a profit.
Paz Centenario operates within the real estate sector by providing listings for apartments, houses, offices for rent or sale along with informational content on legal matters related to property transactions according to the official website. The company maintains operations based in Lima, Peru.
The press release concludes that no single investment option fits all circumstances; combining both strategies may offer resilience against various economic scenarios.
