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Posted over 1 year ago

Real Estate Direct Investment versus a Real Estate Fund Investment

Direct Investment versus a Fund Investment

Introduction

When it comes to investing in the equity market, there are many options. One option is direct investment, which means you buy and sell shares directly from the company. Another option is through a fund, which is a type of collective investment vehicle that invests in securities such as stocks, bonds or mutual funds on behalf of its investors.

Single asset fund

  • Single-asset fund: A single-asset fund is a fund that invests in one asset class, such as Real Estate. While these funds are less common than diversified funds, they are still the most popular type of fund. They tend to perform better during periods of inflation and high volatility thanks to their ability to protect your portfolio from risk (the downside). This performance can also come at a cost, however; since these funds aren't diversified across multiple investments like a blind pool fund, they may have a higher risk profile than other types of funds.

Blind pool fund

A blind pool fund is a fund that is not tied to any particular asset. This means you cannot go out and buy shares in this type of investment like you can with stocks and bonds. Instead, blind pools are generally set up by investment firms, who use them as a way to raise money for projects that have yet to be identified.

As their name suggests, these types of investments are often “blind” because you don't know exactly what assets they're going into until after they've been invested in something already—and even then it's still possible that the assets won't be revealed until later down the line!

Conclusion

The key takeaways from this article are that direct investment allows focusing your effort on one particular asset. Fund investments provide investors with diversification, which helps reduce some of the risk profiles.

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