Real Estate Fund Emerges As A Promising Prospect

November 6, 2007	(6 votes, average: 2.5 out of 5)  Loading ...
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Investing in property has come up as an excellent prospect to gain high returns within short period of time. This is mainly because of capital appreciation. Contrary to regular returns, high returns come at a cost as making investments in real estate which has nowadays become very cumbersome. What you have to be the most careful about is narrowing down on the right property.

Properties are becoming expensive day be day. It requires the investor to commit large funds at a single go. Funds are locked up for a long time and the money invested is illiquid. Therefore, many investors have to stay away from such a form of investment.

This was once a major drawback which ahs been worked on and improved to a certain extent when many companies promoted real estate funds. These are venture funds with a focus on real estate, managed by the market regulator SEBI. The authority managed it under the category of venture capital funds.

The offer document of these funds is privately circulated. The investment is high with the minimum amount to stand at Rs 25 lacs. The funds are gaining popularity among high net worth individuals (HNI). Liquidity remained the main problem as they had a lock in period of maximum six years.

The scenario changed with the recent policies drafted by SEBI. It can change the way investors should approach properties for investments. SEBI opened the gates for the launch of real estate mutual funds (REMF) which are based on the concept of pooled diversification. REMF will have an investment aim to put money directly or indirectly in Indian real estate and will be governed by SEBI (Mutual Funds) Regulations.

News Published Under:   Real Estate Trends |

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