A Class Asset ; Real Estate Mfs Promise to Change the Landscape of Realty Investments and Make Them Accessible to All. Here's What You Should Know.

Summary

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Investing in real estate just got easier. Following the Securities and Exchange Board of India's (SEBI's) nod to real estate mutual funds (REMFs), small investors can now grab a piece of the real estate investment pie. Even better, they will now have none of the problems associated with huge investments, tedious paperwork, high stamp duties and the property management expertise that direct investment in real estate usually entails. Investors now have a chance to diversify their investments, buy real estate for small sums and participate in an asset class that's growing by the day. Says Jai Mavani, Executive Director, KPMG India: REMFs provide the property market with an investor base. For investors, it offers an attractive investment option. Both parties benefit.

Like any other mutual fund, REMFs invest money collected from a large number of investors in real estate assets, and earn income by renting or leasing the property, and/or through capital appreciation. Says Akhilesh Singh, Business Head, Emkay Midas Wealth Management: People in India have traditionally liked fixed asset investments. But property has always been seen as an asset class that suited only high net worth individual (HNI) investors who could afford the large investments.

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A Class Asset ; Real Estate Mfs Promise to Change the Landscape of Realty Investments and Make Them Accessible to All. Here's What You Should Know.

But now, feel financial planners, retail investors will be able to participate in the real estate sector with investments of as little as Rs 5,000 to Rs 10,000. In comparison, real estate venture capital funds, available only to HNIs, institutions and global investors, require a minimum investment of around Rs...

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