Real estate investment trust fund (REIT), also known as "REIT", was originally defined as "an unincorporated organization with multiple trustees as managers and shares with convertible income".
REITs are clearly defined as closed-end investment funds that hold real estate, mortgage-related assets or both.
REITs have unique advantages that other investment products do not have:
First, the long-term return of REITs is determined by the value of the real estate it invests in. Real estate has low correlation with other financial assets and relatively low volatility, and has the function of preserving value during inflation.
Second, double taxation can be avoided, and there is no minimum investment capital requirement.
Third, REITs are required to distribute 90% of the income as dividends, so that investors can obtain relatively stable immediate income.