China Real Estate Investment Trust Fund: A Choice Worth Investing.
Real estate investment trusts (REITs) are funds with real estate as the main investment target. Its investment strategy is to purchase and manage real estate assets by pooling investors' funds and provide investors with stable income. From 20 14, China began to pilot REITs funds and became one of the largest REITs markets in the world. In this article, we will discuss the performance of REITs in China and whether it is worth buying.
The Present Situation of Real Estate Investment Trust Fund in China
The issuance of REITs funds in China has been in the pilot stage since 20 14. At present, the assets in China's REITs market are small, but with the gradual relaxation of policies and the gradual maturity of the market, it is expected that the REITs market in China will develop rapidly in the next few years. By the end of 20021,there were1fund in China REITs market, with a total scale of13.3 billion yuan.
Earnings performance
The income performance of China Real Estate Investment Trust Fund is relatively stable. Wind data shows that as of the end of 20021,the average yield of Huaxia REITs Fund was 4.28%, while the average yield of Shanghai Composite Index was 6.5% in the same period. Although REITs fund has a low rate of return, its risk is also low, because its investment target is real estate assets, and the value of real estate assets is relatively stable.
Capital proposal
In the long run, China Real Estate Investment Trust Fund is a worthwhile investment choice. Because its investment target is real estate assets, and the value of real estate assets is relatively stable. With the gradual maturity of China's REITs market, the return rate of REITs funds is expected to increase in the future. Investors are advised to properly allocate REITs funds under the condition of controllable risks.
Risk warning
Although the risk of REITs fund is relatively low, its risk still exists. The fluctuation of the real estate market will directly affect the returns of REITs funds. The investment target of REITs fund is real estate assets, which is poor in liquidity and it is difficult for investors to buy and sell at any time. The management cost of REITs fund is relatively high, which will also have a certain impact on investors' income.
REITs fund is a kind of fund with real estate as its main investment target. Its income is stable and its risk is relatively low. Although the REITs market in China is small, with the gradual relaxation of policies and the gradual maturity of the market, it is expected that the REITs market in China will develop rapidly in the next few years. Investors are advised to properly allocate REITs funds under the condition of controllable risks.