Introduction • Historically, real estate is a highly popular investment option in India with tremendous long-term growth potential for investors with stable returns. Real estate investments not only diversify your portfolio to provide you with greater returns, but also reduce volatility. • Over the past decade, real estate PE funds have become a highly popular and lucrative investment option for Indian investors. Real estate PE funds provide investors with a lucrative mix of equity and debt investments in property investments.
Following are some vital points that make real estate PE funds your smartest investment funds:
Stock market fluctuations generally do not affect real estate PE funds • Real estate PE funds are not linked to the stock markets. Therefore, their performance does not get affected by stock market fluctuations unlike REITs that linked to the stock market. The best part about real estate PE funds is that any rise or fall in the stock markets does not lead to unwanted spikes in real estate PE funds. Thus, events that have no link with real estate fundamentals would have no impact on the performance of real estate PE funds. Hence, real estate PE funds would help you diversify your portfolio and balance risks effectively.
Real estate PE funds are not as volatile as REITs • Real estate PE funds are less volatile compared with REITs as an investment asset class. REITS tends to follow the crests and troughs of the stock markets, which makes them a highly volatile asset class. In fact, in a rising interest scenario, investors will be less likely to buy REITs and would tend to move towards real estate PE funds as a lucrative investment option.
Real estate PE funds can mitigate your overall exposure • Real estate PE funds tend to provide investors with an option where they can spread their risks effectively while getting strong returns. The best part about areal estate PE fund is that it runs every property that it possesses as a significantly different business centre. Thus, in case one property investments fails or under performs, its impact does not spill over into other property investments that the fund possesses. • To know more about investing in real estate private equity funds, call us on 022-28577647.orvisit us at www.altsmart.in