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Is it good to invest in real estate mutual fund?

Tags: real estate mutual fund

Asked by : mangesh pawar |  29 Apr '08 11:13 am

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1. 

Like every other sectoral mutual fund which has high risk involved, real estate also will follow the same course. The real estate market can go through cyclical changes. If the prices have been touching the skies, they can dip too. Real estate comes with high profit potential but it entails high risk too.

Says arunraj vs 29 Apr '08 11:14 am

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2. 

Hi mangesh, It is good to invest in real estate mutual fund since real estate business is booming. But market value may be varying as the mutual funds are investing in stocks.
V.K.Kanniappan

Says Kanniappan Kanniappan 16 May '08 06:14 am

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3. 

Beter to have ohter idia to invest than reality estate sector.

Says Nirlep Chauhan 30 Apr '08 03:32 pm

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4. 

yes

Says krishna rao 29 Apr '08 11:13 am

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5. 

it is better to invest in infrastructure mutual funds of hdfc or reliance

Says prithipal sethi 15 May '08 10:33 pm

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6. 

yes definitely you can invest in the real estate MF. This is beacuse the prices of property have been rising at a fast pace. Though the rate of rise will slow down in the future, chances of the prices decreasing are very less. This is because the demand for property is rising day by day and so it proves to be the most valuable asset that you can have today.

Says ChaluTakla 30 Apr '08 02:52 pm

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7. 

Will have to wait and watch as we dont have any previous figures to measure them.

Says ram kishore rathi 01 May '08 03:06 pm

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8. 

difficult to predict becoz formulation of that is a problem.a part can be exposed in that

Says wiZwealth 30 Apr '08 02:11 pm

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9. 

Real Estate Mutual Fund will typically invest in Cement companies, Companies that provide home solutions, steel companies, Architecture firms, etc.

Now the demand for these products (cement, steel, etc) will always be there. So it is a secure and lucrative option.
But to think about it, a company which manufactures cement, cannot make a mind blowing huge profit unless they open another factory. Likewise for all commodities.

So my advice is, invest if you are looking for a safe investment option. At the same time, don't expect a magical growth of money. It will give you moderate returns.

Says swati Vishwanath 30 Apr '08 04:58 pm

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10. 

Sector funds are subject to more volatility and need closer monitoring. For those who can tolerate higher risk and are willing to monitor the trends and outlook for the concerned sector, investment in real estate funds may yield good returns. For investors who do not monitor the markets that closely, a portfolio diversified with respect to the geographical distribution is better suited.

Says bharat 30 Apr '08 01:21 pm

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