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Mutual Funds To Invest In

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With the entry of real estate mutual funds, builders will be hard-pressed to develop quality projects and leeway for sub-standard construction practices will be considerably reduced. Real estate funds are expected to acquire real estate assets with quality blue chip tenants and focus on growing markets witnessing substantial urban development.

Investing in real estate mutual funds (REMFs) could soon become a reality. Almost 18 months after the Securities and Exchange Board of India (SEBI) allowed the launch of REMFs, the market regulator now hopes to put out the final guidelines for these funds within a month.

The launch of REMFs has been stalled due to the absence of a proper valuation mechanism for investments in unlisted real estate entities and accounting norms to be followed for such funds. The regulator has been working on the issue with the Institute of Chartered Accountants of India (ICAI) and the Association of Mutual Funds in India (AMFI). A SEBI official said: “We have decided to use professional realty valuers for valuing investments in unlisted entities. The idea is that if private equity funds can invest in unlisted realty entities and have proper valuations so can mutual funds. We are finalising the guidelines."

REMFs, or mutual funds that pool public money to invest in real estate assets and companies, are allowed to park their money in mortgage-backed securities, equity, bonds and debentures of listed or unlisted real estate companies. There were also issues over the relevant accounting methods to be followed for such funds and confusion in the industry over the daily calculation of net asset value (NAV) of these funds.

Real estate being a more stable asset compared to equity, the mutual fund industry felt that the daily calculation of NAV was needless. It is understood that funds that invest only in real estate properties would not be required to calculate their NAV on a daily basis. However, funds that invest in shares and securities of real estate companies would need to calculate the NAV on a daily basis.

“All the necessary issues have been discussed and the ICAI has submitted the accounting norms as well," said A.P. Kurian, chairman of AMFI. A number of fund houses like ICICI Prudential, Principal and HDFC have been awaiting regulatory approval of their real estate fund schemes.

HDFC Property Fund, DHFL Venture Capital Fund, Kotak Mahindra Realty Fund, Kshitij Venture Capital Fund (A group venture of Pantaloon Retail India Ltd) and India Advantage Fund (ICICI) are some of the prominent real estate funds in India.

Mutual Funds To Invest In

Just like many of the other richest people in the world, Trump had to work his way up to being the big dog in real estate he is today. It was not just handed to him on a silver platter.

So, where does one start? Well, Donald Trump chose real estate as his avenue to riches. Why? Because he understood that real estate is a smart market to put your money in. There are a few reasons for this. First, real estate is always going to be there. Sure the market can fluctuate from time to time (any market can) but at the end of the day real estate is backed by something tangible, real property, and it will always have value.

As you begin your career into real estate investing, there are a few avenues you may want to try. You could choose an individual stock or bond to invest in or you could spread out your money buy buying into REITs and real estate mutual funds.

Buying an individual stock has some risk. What if that stock suddenly comes on hard times? It will take all of your money with it. That is something no investor likes to think about. Instead, why not focus on a more safe option, REITs and real estate mutual funds. The reason these are safer is because either one you buy into is like buying into a whole portfolio of stocks and bonds. Most REITs are made up of 10, 20 or more stocks and bonds in the real estate arena. So, your one share in the REIT will translate to dozens of shares of stocks.

Now you just have to decide which one to purchase. There are plenty of REITs and real estate mutual funds out there. That means you need to really sort through all of the offerings and come up with one that is best for you. A great place to get the research and information you need to make this decision is REITBuyer.com. REITBuyer.com is the first and only online brokerage that specializes in REITs and real estate mutual funds. This means all of their focus is on the market you want to be investing in. You will be surrounded by the tools and information you need to make wise decisions when investing.

The final thing to keep in mind is reinvestment. While your initial investment may make money, the key to really making money in investments is keeping your investment base growing. That means when you make money and get a dividend check you should not splurge with it. Instead put it back into your investment portfolio and let it continue to work for you.

This article was written by Earl E. Bird, III, spokesperson for the REITbuyer.com, a website designed to educate investors on REIT buying and investing in Real Estate Mutual Funds. Whether you are a savvy investment guru or a new investor looking for guidance, Reitbuyer.com has everything you need to be successful. Visit http://www.reitbuyer.com for more information.

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Both Properties Mls & Robert Shumake are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

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