Investing in a fund offers many of the same benefits of owning your own individual portfolio (leverage, tax benefits, appreciation), depending on the terms of the operating agreement. The main difference is a fund offers more diversification and professional oversight. In a single family rental fund, for instance, the investor funds are spread amongst multiple properties. The investor is generally not responsible for any of the management of the property. It is all handled by the fund manager, including obtaining financing, insurance, property management, etc. Investing in a fund is far more passive than owning an individual portfolio.