Do you know what REITs fund is in financial management?

I believe that anyone who has invested in funds will have a certain understanding of funds. Everyone knows that our common securities funds mainly invest in stocks and bonds, but few people know about REITs funds. Let's learn about them together. What is REITs Fund?

the full name of p>RETIs fund is Real Estate Investment Trust, which translates to Real Estate Trust and Investment Fund or Real Estate Trust and Investment Fund. From the Chinese name, we can know that the main investment direction of REITs funds is real estate/real estate, but because of the background of "housing and not speculation" in China, the main investment direction of REITs funds issued in China has become the infrastructure field.

According to the official website of Shanghai Stock Exchange, REITs' investment in infrastructure mainly includes three aspects:

① Transportation facilities: hasty logistics, toll roads, airports and ports, etc.

② municipal facilities: water, electricity, gas and heat;

③ other infrastructure: pollution control, information network, industrial park, etc.

however, we need to know that REITs funds invest in the real estate after asset securitization (such as ABS) to indirectly hold the share of assets, instead of directly purchasing the property rights of real estate to obtain assets. Advantages of REITs funds

For most of us ordinary investors, REITs funds mainly have three advantages:

① Low investment threshold

The low threshold of REITs funds is not compared with other securities funds, but with other real estate investments. Want to know that direct investment in real estate often requires tens of millions of investment, this amount is difficult for most people to take out, but REITs funds are not. For example, the minimum subscription amount of five REITs funds listed on the Shanghai Stock Exchange in 221 is only 1 yuan, and in fact, the amount invested after the placement is even lower, which means that investors can participate in real estate investment even if the amount of funds is not large through REITs funds.

② The dividend ratio is high

There is no dispute about the dividend ratio. One of the structural characteristics of REITs funds is the dividend ratio. According to the regulations, public offering of REITs funds is mandatory to pay dividends, and the distribution ratio of income is not less than 9% of the annual available funds for infrastructure projects, which means that at least 9% of the income needs to be distributed to investors.

③ Building a reasonable portfolio

Some relatively mature investors like to build a portfolio to spread investment risks, but most securities funds in the market are invested in the stock market or the bond market, and the correlation is relatively high. When the market is in a bad mood, there may be large losses. The REITs fund invests in real estate projects, and by matching the REITs fund to build a reasonable portfolio, the correlation of the portfolio can be reduced, so as to achieve the purpose of diversifying risks. 3 matters needing attention in investing in REITs funds

The advantages of investing in REITs funds have been mentioned above, but there are also two matters needing attention in the investment process.

① Pay attention to risks

When investing in securities funds, we all know that the net value of funds will change with the fluctuation of stock prices, and there may be risks of losses. Although REITs funds are not investing in stocks, there are also some risks, such as: operational risks, poor operation of projects in operation, centralized expiration of leases, etc. Managing risks, limited ability of fund managers, making wrong judgments, etc. Market risks, economic downturn, oversupply of competing products, etc ...

As investors, these risks are inevitable, but when selecting REITs funds, we can do our homework first and choose REITs from better fund companies or fund management teams to invest.

② Liquidity of funds

REITs funds are closed-ended, that is, they can't be redeemed directly before maturity. From this perspective, liquidity is relatively weak; However, REITs funds can be traded in the secondary market, but it is necessary to know that the price fluctuation in the secondary market may be relatively large, and the transaction price may not be equal to its net value, and it needs to be discounted to sell.

REITs are medium-and long-term investments, and it is best to use idle funds that will not be used in the short term when investing.

To sum up, REITs refers to real estate trust and investment funds, and REITs issued in China are mainly invested in infrastructure construction.