Real estate is an investment option that possesses the potential to offer long-term returns to investors. These returns are healthy and stable. Moreover, when you add real estate to your traditional portfolio that comprises stocks, it has the ability to reduce volatility while increasing return on investment. However, it becomes very important to understand various types of real estate investment options and the impact each option can have on your overall investment portfolio.
Real estate private equity funds are becoming an increasingly popular investment option in India. They are a type of asset class comprising equity and debt investments in property. Investments in a real estate private equity fund generally involve an active management strategy, which could include moderate reposition, releasing of various properties for development, or extensive redevelopment.