Features of Real Estate Funds

Real estate funds, where investors invest money to earn a profit in the sector of real estate. This fund helps a developer build and maintain a property. Real estate funds have various unique features.

It has many advantages, and it looks pretty lucrative and attractive, but not free from some risks or disadvantages. This type of fund can provide more return on investment or profit. But you need to take care of the risks to get a good return.

Knowing more about the list of real estate funds in India and discussing those can help get to know all those ways to make more profits.

Features of real estate funds

Real estate is one of the most popular investment options in India. This fund has been categorized under the most profitable investment funds. Undoubtedly, it has some unique features, including both positive and negative sides.

Knowing the list of real estate funds in India is essential to know about the features. According to which, you can decide the features after discussing the same.

Real estate fund investment can provide a fixed source of regular monthly income. It will also grow money through long-term investment. So, this type of fund is somehow different from other investment funds. Knowing all the characteristics will help you get more profit and avoid the risks.

Let’s discuss some of the features and the list of real estate investment funds.

List of real estate funds in India

There are different real estate funds in India. Some important them are

• Embassy Office Parks REIT
• Mindspace Business Parks REI
• Brookfield India Real Estate Trust
• Kotak International REIT FOF
• Mahindra Manulife Asia Pacific REITs FOF.

From this list, you can get some features common, which help to get a good profit and those are

Long Term Investment

Ideally, a real estate fund investment is for a long-term investment. It is so durable that an investor can hold it for up to decades. Not only for decades, but it can be held till the next generation.

Other investments have some fixed maturity dates, but it’s entirely up to the investor for real estate investment.

More return on investment

This fund has ideally been designed as a profitable investment fund. So, this investment fund will give you a good return on the investment over time. From the list of real estate funds in India, it can be decided that as long as you can hold the fund and get perfect updates about the property, you will get a good return on investment.

Location Factor

Unlike other investment funds, location is an excellent factor in real estate investment funds. A property in a good location will have high demand, which will have a higher value. Along with that, the value will increase at a higher rate. Thus, it will give a handsome profit. To be a good real estate investor, you need to get every update about the location.

Lack of Liquidity

Real estate investment is considered the sector with no liquidity in the investment. You cannot expect the investment in any property to earn profit within a few minutes or seconds. In other funds, you will be able to withdraw the investment with a profit within a few minutes, but not in real estate investments. By following the example of Real Estate Funds, you can see that in every real estate fund, there is no liquidity at all.

Needs too much knowledge

Pro investors have already shown their success in real estate investment funds. Though it has some risks investing in real estate investment funds, you can get a lot of profits. It is too important to have good knowledge of the list of real estate funds in India. Not only that, but it requires constant attention to the property. So, the best idea is to research and manage the property personally.

Low Transparency

The real estate investment fund has low transparency issues. Other funds keep their investors updated in real-time, but this doesn’t happen for real estate investment funds. There might be any hidden pieces of information or any issue unknown to the seller while buying a property. So, this is too important to research everything before proceeding with the investment.

Conclusion

A real estate fund is indeed a profitable plan for investment. Being a different type of investment, this has many unique features. There are many advantages, but this investment is not free from risks. By following the list of real estate funds in India and staying updated on it, you can minimize the risks. Also, you will need to keep yourself updated with the location and research the property to make more return on investment.