With a new year ushered, everyone seems hopeful regarding a new start, especially the investors. However, the debate pertaining to the investment still remains. Since the new year only started, it is a quite perplexing to determine the investments portfolios which will ensure a high return. Will 2018 be a year in making for the investors and what more changes will affect them remain an uncertainty which no one can shake. But worry not, various market gurus seem to have predicted and forecasted various investment portfolios, which will surely make you those extra dollars on your income and that extra year-end bonus.

Real Estate Mutual Funds: The Best Choice for 2018

Since it is difficult to select from an overwhelming array of investment profiles, we suggest you better invest your dollar and dime in real estate mutual funds. With the inception of mutual funds in the real estate sector, it has become effectively simple to invest in the real estate sector without having to buy a physical property. However, you must understand various factors which affect the real estate mutual funds market.

What are Real Estate Mutual Funds?

In real estate mutual funds, there are various companies involved, which are responsible for owing, financing, brokering and renting a wide pool of real estate properties. These companies are deemed as REIT. The earnings from the various real estate properties are shared with the shareholders of REITs in the forms of dividends. In simpler terms, real estate mutual funds are much like the equity mutual funds in stock markets.

Why Choose Real Estate Mutual Funds?

REITs (Real Estate Investment Trusts) allow external buyers and investors to invest in their company via mutual funds which are then used to buy or lease properties. The returns earned from these properties are shared with the investors thus, making it possible for investors to earn high returns with moderate risk from real estate segment. As per statistics, REITs return as much as 90% of the earnings on the dividends to their shareholders. Thus, it is pertinent to note that Real Estate Mutual Funds yield higher returns as compared to other mutual funds investment sector.

Which Real Estate Mutual Funds to Invest in?

While real estate mutual funds provide higher returns, the risk factor outlying it cannot be ignored and should not be neglected either. Due to the moderately high risk involved in real estate mutual funds, it is paramount to choose a trustworthy companion. Given the statistics and forecast by the market gurus for the year 2018, you can invest in the below popular real estate mutual funds in India.

• Aditya Birla Real Estate Fund
• HDFC Property Fund
• ICICI Pru India Opportunities Real Estate Fund
• Birla Sun Life Global Real Estate Fund

Real estate suffered a lot in the last year but the government schemes and policies have seemed to uplift the market and going into 2018 real estate will be a hot spot for investors and thus, investments in real estate mutual funds will be profitable, to say the least.