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Invest In Indian Real Estate Mutual Fund
Real Estate has long been seen as an asset class with great investment possibilities. Real Estate Investment in India offers investment options in quality assets at a reasonable price, their realization within the set time frame, promising above-decent to staggering returns.

Considering the wealth -enhancing role ofIndian real estate funds , REMFs in India have emerged as a great tool for wealth creation. REMFs are mutual fund schemes that invest directly or indirectly in real estate. Returns are in line with the current market yields. Regular investments in REMF can be easy as you will be able to invest even small amounts in them.

SEBI will soon introduce the Real Estate Mutual Funds (REMFs) as close ended units which would be listed on the bourses. These REMFs are globally known as Real Estate Investment Trusts (REITs). REITs in India will improve access to stable, global and competitively priced capital, as well as lead to stronger and more professional property businesses.

The essential difference between a REIT and a mutual fund is that investments made in REIT are traded in real estate stocks and not invested in stocks of companies. REITs offer a heavier liquidity than Mutual Funds. Mutual Funds are trusts that mobilize and pool in resources from investors with the common objective of investing in specified markets – equity or fixed income.

REITs can help bring transparency and efficiency to the sector and also help attract foreign capital seeking commercial property opportunities in India and elsewhere. It will also make builders stick to quality projects and also reduce sub-standard construction practices.

The government has permitted foreign direct investment in India in real estate. Many domestic venture funds have been set up. Realty funds in India also include those that are devoted to property development, investment in malls etc.

Prominent companies promoting realty funds in India include HDFC Property Fund, DHFL Venture Capital Fund, Kotak Mahindra Realty Fund, ICICI’s real estate fund, and HDFC India Real Estate Fund (HI-REF).

Some of the international companies aggressively investing in the sector are Carlyle, Blackstone, Morgan Stanley and Warbus Pincus.



Author:
admin
Time:
Friday, September 28th, 2007 at 2:05 am
Category:
Stock Exchange
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