Today we will see everything about real estate investment funds. They are one of the alternatives available for those who want to invest in real estate.

These funds are managed by companies specialized in this type of investment and which bring together the investments of several investors.

As a result, they direct these amounts to different investments in the real estate area, such as construction, leasing or resale.

These investments bring together savings from different people or companies. They then turn to the financial market in order to make a profit.

That is, investments cause money to generate income, which, in turn, is divided among investors.

Therefore, the objective of this type of investment is to monetize the values on the real estate market, in order to maximize and divide them.

Those who manage these funds are companies specializing in investments. They represent clients and manage the money they invest.

When entering an investment fund, the client makes an investment to purchase shares. Each unit has a prior value stipulation, which may vary according to the value of the project.

The profit of each investor, in this way, will be proportional to the shares that belong to him, so that whoever has more shares will receive a greater profit.

Discover the main types of this type of investment and find out how each one works!

These are funds in which the number of shares – that is, investors – is variable and can increase or decrease according to market demand.

Thus, they can witness, over time, the entry and exit of investments, which makes them more or less strong.

Another type of investment fund corresponds to the closed model. Unlike the previous modality, here there is a maximum number of participations.

In other words, when opening the fund there is a stipulation, among the initial investors, as to the maximum number of investors that will be accepted.

This number is fixed. Because of this, it is only possible to purchase investment units when there are quotas available for sale, respecting the ceiling.

The third and final type of investment funds mixes the two previous types. In other words, it has two categories of participation.

One of them is presented in a fixed number, so that it follows the participation ceiling with a pre-determined number of shares.

The other category, in turn, is open, allowing entry to as many investors as they wish to participate.

Discover, in the items below, the main advantages of investing your savings in a Real Estate Investment Fund.

One of the main advantages of investment funds is that you leave your money in the hands of financial market experts.

Investment portfolio managers have experience and knowledge of how the market works.

Also, they are always in touch with share prices, highs and lows. Likewise, they are capable of making predictions about the future of the market.

With this, you increase the chances that the applications will bring profit. Here your money is in good hands and can work in your favor while you rest peacefully.

Another advantage of Real Estate Investment Funds is the diversification of investments.

Since each portfolio brings together values invested by several investors, it has a larger amount to invest.

What happens, then, is that the portfolios divide this amount into more than one investment. This reduces risks and increases the chances of profits.

Much better than betting all your chips on just one investment is dividing them into different profit possibilities.

Also, note that this would hardly be possible when investing alone. The amount of a single investor is limited, making it difficult to act on different fronts simultaneously.

Unlike what happens in individual real estate investments – such as purchasing a property to rent – Investment Funds do not worry about taxes.

The main disadvantage of this type of investment is that you, the consumer, have no control over how your savings are invested.

After all, the investment of your money is outsourced here. Therefore, it is the portfolio manager who will decide which are the best uses of the fund's values.

Another point is that part of the profit goes to the portfolio manager, and this percentage is determined at the opening of the investment.

Now that you know everything about Real Estate Investment Funds, you may be interested in investing in them. Check out the items below on how to do this!

Firstly, it is essential that you know how much you have available to invest. To do this, save part of your savings for emergencies.

The remainder, then, will be in Real Estate Investment Funds.

Furthermore, many banks and financial institutions have investment portfolios that include Real Estate Investment Funds.

For example, Caixa Geral de Depósitos has Fundimo, which has a diversified portfolio and was the one that achieved the most profit in 2020.

After learning about the main Real Estate Investment Fund options, get in touch with the ones that interest you most.

Know the conditions, minimum investments and the main investment targets made with savings, as well as the frequency of profit sharing.

Finally, if you are looking for a Home Loan, check out BNI Credit.