REIT means Real Estate Investment Trust. REITs structure funds in which investors are allowed to earn dividends from real estate investments and for that they do not need to buy or finance any property. The capital of many investors is pooled to earn profits. REIT Funds are like mutual funds. Let us look at real estate mutual funds and their working in detail here.
What is a REIT fund?When the economy is thriving, the development of real estate and infrastructure is stimulated. During those days, Real Estate Investment Trusts played an important role in helping investors by opening the arena of the real estate sector and they invest in these funds to gain profits.
As the REITs are listed in Stock Exchange, they are considered a great investment in the real estate sector.
The purpose of Real Estate Investment Trust is to channelise the funds to invest in the ownership of the real estate or its operational functioning, which generates income for the investors in future.
REITs are mainly of two types:
Equity REITs
Mortgage REITs
Equity REITs mostly earn their revenue through rent from the properties such as hotels, offices, shopping complexes, etc.
Mortgage REITs:Mortgage REITs generate income from interest which is earned by investing in mortgages or the securities backed by mortgage. They finance residential or commercial properties.
Learn more about what is REIT Mutual Funds in India here Check how to invest in REIT in IndiaYour Feedback Matters! How was this Answer?
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What is a REIT fund?
Namita
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2021-09-21T09:58:34+00:00 2021-09-22T12:59:37+00:00Comment
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