How to Invest in REIT Funds

Investing in REIT funds is a simple way to diversify your portfolio and get involved in the real estate market. This type of investment has been around for years and it has grown in popularity recently. Here are the basics of REIT funds and how you can invest in them. 

REITs

The term REIT stands for real estate investment trust. This type of investment is basically a type of mutual fund that invests in real estate. Instead of putting money into stocks or bonds, this type of fund is going to put money into different types of real estate. The fund is going to pool all of the money from their investors together in order to purchase properties. 

Open an Account

The first thing that you are going to need to do in order to invest in REITs is to open a brokerage account. You should be able to work with any stock broker that you want for this purchase. In order to open an account, you will need to fill out a basic form that includes personal information about yourself. You will then need to provide the company with payment in order to fund your account. 

Research REITs

Once you have an account opened with a broker, you will be able to start researching the available REIT options in front of you. There are many different types of REIT that you could choose to invest in. For example, you could put money into a residential REIT, a retail REIT, a healthcare REIT, or a number of different options. All of these REITs are going to provide you with different benefits as an investor. For example, if you want stability, investing in a healthcare REIT might be a good idea. You will be able to invest in an industry that is poised for rapid growth. This type of REIT invests in hospitals and clinics. Most of the time, these are solid businesses that are not going to be going anywhere in the near future. 

Your broker should provide you with a way to research the different REIT options that are available to you. It is important that you do as much research as you can about every option that you are considering. You will want to check out the investment strategy of the REIT as well as its past history. 

Purchase Shares

Once you have decided on which REIT you want to invest in, you should be able to purchase it directly through your broker. If you are using a broker that provides you with an online trading platform, you should be able to purchase it directly from your computer. If you do not trade through an online trading platform, you can talk to your broker and they will place the order for you. Shares of REITs are available to purchase directly from the stock exchanges. Therefore, you should be able to order as many shares as you want in this method.

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