Question

Can someone explain 1) the definition of Real Estate Investment Trusts ( REIT ) with an example and 2) definition of commingled funds with an example??

Please explain it in detail. Thank you :)

Answer 1

1. Real estate investment trust is a company which will be issuing with the units of real estate in the market and it will provide an opportunity for investment for various individuals as these real estate investment trust are issuing it's units in market.

Real estate investment trust are traded like normal stocks in the markets and these funds are having a high rate of liquidity and they are providing the investor to invest into the real estate without owning a property they can even invest in smaller units which is representation of property.

For Example, if you want to invest into the earning of a property but you don't want to own it, then you should be owning the units of real estate investment trust in order to invest into that real property because real estate investment trust are only investing into the real estate and earning through rent.

2. Commingled fund is a fund which will be providing the centralised access to all the assets which are invested by the investor into the economy so it can be a centralised form of controlling fund which can control all the assets which are held in the portfolio of the investor's and it will be leading to the expert professional Management by centralisation of all the stocks which are held by the investor in its portfolio

One of the example of commingled fund is workplace retirement fund.