author
Carlos Balthazar Summ
author
Carlos Balthazar Summ
post date
30/05/2023
reading time
3 minutes
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Real estate investment funds (FIIs) are becoming increasingly popular in the financial market. They offer an excellent way to diversify portfolios with less impact from economic market fluctuations.
If you’d like to learn more about the main types of real estate funds, keep reading to clear up your doubts about this investment option.
Real estate investment funds (FIIs) work like a “condominium” where investors pool their money into real estate ventures. The invested funds are converted into monthly shares, and FIIs can include various segments, such as shopping malls, hospitals, and brick-and-mortar properties.
To choose the right real estate fund, it’s essential to understand the different types and identify which align best with your investor profile. Consider the diversification opportunities, risks, and potential returns in the current economic environment.
Evaluating a fund’s prospects can be subjective, but with skilled management, it becomes easier to align with your objectives and profile. CIX Capital offers tailored and personalized services to guide you in this process.
Here are four main types of real estate investment funds:
1. Brick Funds
Brick funds focus on investments in physical properties, such as buildings, assets, and real estate developments. The income is typically generated from property sales or rentals, making this a popular option for steady revenue.
2. Paper Funds
This type involves investing in real estate-related debt, and earning profits from interest payments, which are distributed to shareholders. Paper funds are considered less volatile compared to other types of funds and are managed by professional teams who monitor and analyze the investments.
3. Fund of Funds
This category involves investing in other funds within the same sector. The manager diversifies the portfolio by purchasing multiple funds, aiming to enhance returns and maximize profits.
4. Development Funds
Development funds invest in real estate projects that are in the planning or construction phases. These investments often focus on land or developments that will be sold later, offering significant profit potential.
Now that you’re familiar with the main types of real estate funds, how about learning how to purchase them through an investment brokerage?
Trust your wealth to the strategic insight of experienced investors who can provide detailed reports on the performance of the best real estate funds currently available. Rely on financial specialists to help you choose the most suitable fund for your investment goals.
Count on CIX Capital for expert guidance. Contact us today!
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CIX Capital is an investment by Maiz: maiz.com.br
