Real Estate Funds vs. REITs: Which is the Better Investment?
When it comes to investing in real estate, there are several options available. Two popular choices are real estate funds and real estate investment trusts (REITs). Both investment vehicles allow investors to diversify their portfolios, earn passive income, and benefit from appreciation in property values. However, each option has its own set of advantages and disadvantages. In this post, we will explore the differences between real estate funds and REITs to help you determine the better investment for you. What are Real Estate Funds? Real estate funds are a type of mutual fund or exchange-traded fund (ETF) that invests in a diversified portfolio of real estate assets. The assets can range from residential and commercial properties to mortgages, construction loans, and other real estate-related investments. Real estate funds allow investors to gain exposure to the real estate market without owning any property directly. Instead, they pool their money with oth