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Reasons to choose real estate private equity funds

23, November 2016 | Prashant Mehta

Real estate is an investment option that possesses the potential to offer long-term returns to investors.These returns are healthy and stable. Moreover, when you add real estate to your traditional portfolio that comprises stocks, it has the ability to reduce volatility while increasing return on investment. However, it becomes very important to understand various types of real estate investment options and the impact each option can have on your overall investment portfolio.

Real estate private equity funds are becoming an increasingly popular investment option in India. They are a type of asset class comprising equity and debt investments in property. Investments in a real estate private equity fund generally involve an active management strategy,which could include moderate reposition, releasing of various properties for development, or extensive redevelopment.
Following are some important reasons for you to invest in real estate private equity funds:

Not linked to stock market fluctuations
One of the major factors that differentiate real estate private equity funds from REITs is the fact that they are not linked to stock market fluctuations. The value of private equity real estate funds does not rise or fall based on stock market volatility or due to events that have nothing to do with real estate fundamentals. Hence, they help you in diversifying your portfolio while balancing your risks.

Less volatile compared with REITs
Real estate private equity funds are less volatile compared with REITs, which are a highly volatile asset class. In a scenario where interest rates are likely to rise, it is going to be tough for investors buying REITs. This makes private equity funds a lucrative option for real estate investors.

Minimise your overall exposure to risk
Real estate private equity funds are a highly effective option for you largely because they divers if your investments and spread your risks. Each property in a fund is run as a different business center, which means one's under performance would not affect the other. 

To know more about investing in real estate private equity funds, call us on 0+91-22-28583333

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Real estate is an investment option that possesses the potential to offer long-term returns to investors.These returnsare healthy and stable.

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