The vast majority of investors plan to increase their allocation of capital to real estate within the next two years. Actively managed real estate funds can give investors more affordable options and opportunities for their investment. What benefits can these funds provide you with as an investor? Here are three reasons to invest in real estate investment funds.
Greater Investment Returns
Some real estate funds give you the ability to reinvest your dividends. Dividend reinvestment can lead to higher returns from the compounding interest. In turn, this can generate more residual income. Before you invest, ensure that the portfolio is in the hands of an excellent fund manager and look closely at a manager’s overall track record. A successful manager should be happy to provide you with that information.
Portfolio Risk Minimization
An actively managed real estate fund can help provide insulation against stock market volatility by spreading risk across various types of real estate assets. The key to portfolio risk minimization is identifying segments of the real estate market that are resistant to swings in stock market volatility and investing accordingly. High-quality real estate fund managers will do this for you. For example, opportunities may exist to purchase new commercial real estate such as industrial warehouses that have seen increased demand due to E-commerce. Other possibilities include real estate that addresses affordable housing shortages and even repurposed office spaces for other uses.
When considering actively managed funds to help diversify your portfolio, look for high-quality assets that help mitigate potential risks of investing. Actively managed funds target a wide variety of assets; nevertheless, they are still easily accessible and can generate significant financial returns.
Lower Costs To Capitalize On Trends
Active funds can help you capitalize on trends quickly. These funds invest in real estate and real estate related equities, which allows them to capitalize on short and long term trends. But be careful, as quickly as trends come, they can go, which can affect profitability at these firms.
If you are looking for more opportunities to invest in real estate, actively managed real estate funds can be an ideal option for your portfolio. You can research these funds online or speak with a financial advisor at a commercial real estate company. An experienced funds manager should be able to help you choose the best investments for your financial situation.
Download HappyNest today on App Store or Google Play.
That’s right, the moment you’ve all been waiting for is finally here: as of today our mobile app, HappyNest, is available for both Apple and Android devices! Okay, but let’s take a step back. For those of you that don’t already know what HappyNest is and what we’re about, HappyNest is a mobile app that provides everyday people like you and me with access to top-quality, high-performing real estate investments, making the entry into this asset class easier, and allowing everyone the ability to truly diversify their investment portfolio. When it comes to investing, many of us consider the stock market the ultimate (or even only) financial investment option–after all, that’s how it’s usually portrayed in the media. Without a diversified portfolio, however, each and every one of us risks losing large amounts of money from a dip in the market. An often-overlooked alternative is Real Estate Investment Trusts (REITs). REITs (pronounced “reets”) allow each investor to own a stake in real estate properties that have the potential for both share value appreciation and dividend-based income (derived from rent and real estate value growth, of course). If you don’t believe us, just look at the numbers: between 1960 and 2015, REITs outperformed global stocks, averaging 6.43% per year, compared to just 5.45% for global stocks. Our founder and CEO, Jesse Prince, recently discussed the impetus behind HappyNest: “I created HappyNest so that investors, regardless of their financial means, could achieve their savings goals. Our easy-to-use mobile app removes all of the traditional barriers to investing in commercial real estate with a $10 minimum investment. It’s part of our mission to educate investors about the benefits of having a diversified financial strategy that includes options like real estate investing so everyone can have a brighter financial future.” Traditionally, accessing non-traded REITs has been very difficult for several reasons, including high minimum costs for investing, high management fees, and high front-end load fees. At HappyNest, we try to do things differently. If you use our app, you’ll have access to a high-quality REIT for as little as $10–not to mention the flexible investment options, investment education, and guidance we provide on real estate investment best practices. HappyNest will allow you to:
- Easily Access a Top Real Estate Fund. An easy-to-use, intuitive user interface will allow you to set up and manage your accounts quickly and easily.
- Invest With Flexibility. Invest in amounts that meet your lifestyle and investment goals. Quickly choose your goals and determine how much you need to invest in order to meet them.
- Maximize Investment Returns. Take advantage of reduced fees to ensure your investment dollars are working for you–not an investment manager.
The HappyNest app allows everyone to diversify their portfolio through commercial real estate investment and gain access to an asset class that has proven itself as a secure, high-performing, long-term investment option. For more information on our app or our company, visit www.myhappynest.com. Download HappyNest for iOS or Android and start planning for your financial future today. About HappyNest HappyNest is an app that allows investors to unlock the potential of real estate, starting with just $10. Experience the stability, tax benefits, and wealth creation traditionally reserved for those of advanced means–all from a smartphone–with HappyNest’s commercial real estate app. Investors can own an equity interest in a portfolio of high-quality commercial real estate and continuously receive dividends for years to come. Visit www.myhappynest.com and follow us on Instagram, Facebook, and Twitter for more information.
Download HappyNest today on App Store or Google Play.