In The Mid To Late-1990S The Stock Market Was A The Advantages of REITs

You are searching about In The Mid To Late-1990S The Stock Market Was A, today we will share with you article about In The Mid To Late-1990S The Stock Market Was A was compiled and edited by our team from many sources on the internet. Hope this article on the topic In The Mid To Late-1990S The Stock Market Was A is useful to you.

The Advantages of REITs

Real Estate Investment Trust (REIT) is an investment vehicle that provides real estate holdings. It resembles mutual fund investments with a diversified investment array; moreover, it has some tax advantages. In asset management, REITs can provide diversification for a portfolio.

Because of the unique nature of REITs, a fund that invests in real estate holdings can provide a good way to hedge the stock and bond markets. If you remember right after the late 1990s internet tech boom, the market underwent a major correction. The stock market went down considerably and worried investors because of the stock market volatility. As capital pulled away from the market, more investors were looking for other types of investments including real estate.

Real estate subsequently surged because of low interest rates and interest in new forms of investments. As popularity in housing rose, the medium price per home surged as well. With dropping stock prices, real estate became the safe haven that concerned investors were looking for.

REITs could be a great investment option for asset management purposes. It not only provides diversity, but it provides consistent returns. In fact, REITs have provided roughly an average annualized return of 12.6% (12.6% return on average every year) in the past 30 years. A popular benchmark, the S&P 500, has returned 12.2% over the same time frame. Even with the slight advantage over the S&P, the .4% difference can provide cumulative returns over the long run.

REITs also have tax advantages. Since 90% of the profits are returned directly to the investors, double taxation is avoided. Typical corporate profits are taxed twice since the taxes are first taxed on the corporate level and then with the individual shareholder.

REITs also have the flexibility of stock funds. Under the proper portfolio management, they can provide liquidity by being able to sell their holdings without any restrictions. This allows the managers to be able to invest in other real estate that might be hot at the moment.

These trusts can even be diversified among various geographic locations and real estate types like corporate offices and homes. For only a few thousands dollar as the minimum investment, an investor can take advantage of ownership in diversified properties as a part of his/her asset management.

REITs not only provide capital investment, but they are also income for investors. The income stream is mainly from rental income. Each month, the managers provide income distributions that are generally consistent. This is a great vehicle for someone looking for high dividends found in large corporations.

As inflations rises, corporate profits become relatively lower. Stocks, therefore, are exposed to inflation risks. However, REITs can act like inflation hedges. While the cost of living rises, rental income can rise as well. So rising rental income can offset the inflation factor.

REITs provide a great way for investors to diversify their holdings. Asset management will benefit by the tax advantages, inflation hedging capabilities, geographical diversity and most importantly, portfolio diversity. For more information about REITs, consult your financial planner or contact a major mutual fund company.

Video about In The Mid To Late-1990S The Stock Market Was A

You can see more content about In The Mid To Late-1990S The Stock Market Was A on our youtube channel: Click Here

Question about In The Mid To Late-1990S The Stock Market Was A

If you have any questions about In The Mid To Late-1990S The Stock Market Was A, please let us know, all your questions or suggestions will help us improve in the following articles!

The article In The Mid To Late-1990S The Stock Market Was A was compiled by me and my team from many sources. If you find the article In The Mid To Late-1990S The Stock Market Was A helpful to you, please support the team Like or Share!

Rate Articles In The Mid To Late-1990S The Stock Market Was A

Rate: 4-5 stars
Ratings: 1427
Views: 4139729 6

Search keywords In The Mid To Late-1990S The Stock Market Was A

In The Mid To Late-1990S The Stock Market Was A
way In The Mid To Late-1990S The Stock Market Was A
tutorial In The Mid To Late-1990S The Stock Market Was A
In The Mid To Late-1990S The Stock Market Was A free
#Advantages #REITs

Source: https://ezinearticles.com/?The-Advantages-of-REITs&id=618091

Related Posts

default-image-feature

In 2014 Foreign Purchases Of U.S Corporate Stocks And Bonds Investing Basics – Risk vs. Reward

You are searching about In 2014 Foreign Purchases Of U.S Corporate Stocks And Bonds, today we will share with you article about In 2014 Foreign Purchases Of…

default-image-feature

Impact On Stock Price For Merging In An All-Stock Deal Mergers and Acquisition – A Case Study and Analysis of HP-Compaq Merger

You are searching about Impact On Stock Price For Merging In An All-Stock Deal, today we will share with you article about Impact On Stock Price For…

default-image-feature

If U Invest In Stocks.U Have A Share In Company How to Make Money With Stocks – How to Educate Yourself to Become a Successful Day Trader

You are searching about If U Invest In Stocks.U Have A Share In Company, today we will share with you article about If U Invest In Stocks.U…

default-image-feature

If I Work For A.Hedge.Fund Can I Buy Stocks Minimize Investment Risk by Investing in Hedge Funds

You are searching about If I Work For A.Hedge.Fund Can I Buy Stocks, today we will share with you article about If I Work For A.Hedge.Fund Can…

default-image-feature

If I Have Several Positions In.Stock Which.Pposition Closes First Horse Racing Handicapping Post Position Biases for Good Bets and Winning Horses

You are searching about If I Have Several Positions In.Stock Which.Pposition Closes First, today we will share with you article about If I Have Several Positions In.Stock…

default-image-feature

Is Buying Stock Worth It Yahoo Answers Site Answers.Yahoo.Com Blackberry Apps, Themes, and Music

You are searching about Is Buying Stock Worth It Yahoo Answers Site Answers.Yahoo.Com, today we will share with you article about Is Buying Stock Worth It Yahoo…