What advantages will Real Estate Mutual Funds (REMFs) offer to real estate investors?
Retail investors will be able to participate in the real estate sector. In case of venture capital funds, the minimum investment size is around Rs 1 crore. For REMFs, this is expected to come down to about Rs 10,000. Fit ‘n’ fine | Bizzy moms | Mother’s Day special | Gift your mom Retail investors will have one more investment option to diversify their portfolio. Institutional investors will get a good exit option by way of transfer of assets to REMF. Real estate as an asset class provides excellent risk-adjusted returns along with low correlations with other asset classes. More India business stories | Stock tips on your mobile What advantages do they offer to the real estate sector in general? The sector will get an additional source of capital via retail investors’ money. Companies’ operations will become more transparent and accountable. The incidence of black money in the sector will be reduced. Based on the US model, what kind of returns can investors expect from REMFs in India?
