Even though real estate funds and real estate investment trusts are similar, they are different in terms of the type of investment, liquidation, and distribution.
Real estate funds are collective investments in which several individuals combine their assets to invest in securities. Privately owned real estate assets are acquired, managed, and executed by real estate funds.
Dividend payments from REITs must constitute at least 90% of their taxable revenue. Some don’t pay corporation taxes by giving all of their profits to investors and shifting the cost of paying income tax to their shareholders.