What are Real Estate Funds primarily designed to invest in?

Bonds issued by real estate companies Securities of companies in the real estate sector Physical properties directly Government infrastructure projects

What is a key characteristic of Real Estate Investment Trusts (REITs) in the context of real estate funds?

They are exclusively focused on residential properties They are a potential investment target for real estate funds They are primarily managed by individual investors They are prohibited from investing in commercial real estate

What is a significant advantage of Real Estate Funds compared to direct property ownership?

Guaranteed higher returns Elimination of all investment risks Greater control over property management Enhanced liquidity for investors

How do Real Estate Funds offer protection against inflation?

By investing in fixed-income securities By holding a diversified portfolio of international stocks By capitalizing on rising property values and rental income By exclusively investing in government-backed securities

What is a primary risk factor associated with Real Estate Funds?

Fluctuations in currency exchange rates Changes in government regulations regarding fund management Volatility in the stock market Sensitivity to interest rate changes