Having said that, an investor can opt for financial instruments like REITs (Real Estate Investment Trust) which allows them to take exposure in real estate, albeit indirectly! REITs are highly liquid in nature. Few of them are already listed and traded like shares in the country’s stock exchanges, but their ticket size is small. Therefore, retail investors with small investment budgets can also take exposure to these instruments.
High Net Worth Individuals (HNIs) and ultra HNIs have another route of indirect exposure the Alternative Investment Funds (AIF). Though liquidity in AIFs is comparatively lower than REITs, the risks, as well as rewards from AIFs, are much higher.
Coming back to the option of holding residential property in one’s investment portfolio – one must keep in mind that the largest chunk of the investment goes into residential real estate.
This story is from the December 2020 edition of Outlook Money.
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This story is from the December 2020 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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