Investing in Funds

Real Estate Investment Trusts

1

Real estate investment trusts (REITs) allow investors to invest in property, without having to do all the hard work. Instead, the management of the fund will buy and manage the investments.

2

It’s possible to find REITs for all types of real estate, whether it be commercial or residential. The companies usually specialize in a particular type of real estate, distributing rental payments to investors.

3

Many REITs are publicly traded on a stock market and can be found through a stockbroker. There are 3 types of REIT, which are Equity REITs, Mortgage REITs and Hybrid REITs.

4

Equity REITs own and manage income-producing real estate for investors, Mortgage REITs lend money to real estate owners and earn interest, while Hybrid REITs do both (owning, managing and lending). 

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