Open and closed real estate funds serve different investment strategies Berlin, 06.02.2012 – the investment in real estate funds is important for many years part of risk scattered Depot strategies. In closed-end funds, the real estate are even sales leader, with the open-end fund real estate commitments represent an interesting alternative to the many possibilities of the distribution on different asset classes. Especially in times of low building interest as at present, the focus is often on the real estate market, because loans are cheap. Why then not in this asset class investing? A well-founded knowledge of the specifics of the Fund belongs to the discovery of the correct Fund type and the appropriate weighting in the own Depot next to the corresponding knowledge base. A common expert recommendation is the broad establishment of own investment. Open and closed real estate funds offer what advantages and disadvantages? Differences, opportunities and advantages and disadvantages of open and closed real estate funds are closed-end real estate funds total corporate investments in one or a very limited number of real estate projects. The purchase of shares is possible only during the drawing phase. After the closure of the Fund, typically no purchases or sales are possible.
The so-called secondary market, which is connected and not always liquid with some disadvantages an exception here. The capital over a multi-year period, which is also an entrepreneurial risk subject to is therefore intense. Yields are achieved by distributions, resulting mostly from the rental income. Open-ended real estate funds represent a widely dispersed investment alternative real estate companies and many different real estate projects, etc. the selection depends on the decisions of the Fund management. A share purchase and sale daily at any time, on the composition of the Fund (so is invested in which individual values or projects) is outside the sphere of influence of the Fund shareholders.