Following a two-year decline, real estate funds have been turning in solid, steady performances since late last year. Real estate funds generally invest in real-estate investment trusts, or REITs, rather than in companies which earn revenues from selling goods and services, and fall under a different regulatory act than other securities. The difference in revenue model can provide diversification in an equity portfolio, and the difference in structure can provide relatively strong current income. In most cases, this distribution comes in the form of dividends which are paid to investors quarterly.
Many people have a lot of assets but no money to spend.
Their investments grow in equity, but not in current income. In addition, the slowing economy has little effect on REITs. Copyright 2001 INT Media Group, Incorporated All Rights Reserved.