Public offering REITs refer to real estate investment trusts issued by Public Offering of Fund companies, which allow ordinary investors to indirectly participate in the real estate market by purchasing fund shares. So why did the public offering of REITs plummet? What aspects should fund investment pay attention to?

What is the reason for the sharp drop in public offering REITs?

1, influenced by macroeconomic factors. The real estate market is influenced by many factors, such as interest rate, economic cycle and policy changes. If economic growth slows down, interest rates rise or relevant policies tighten, it may have a negative impact on the real estate market, which will lead to a decline in the net value of publicly offered REITs.

2. It is related to the inherent risks of the fund. Public offering REITs invest in the real estate market, and the real estate market itself has high risks, such as imbalance between supply and demand, house price fluctuation and credit risk. If the real estate market in a certain area is adjusted or the bubble bursts, the value of public offering REITs will decline. In addition, the risk control strategy of the fund and the investment decision of the fund manager may also have an impact on the performance of public offering REITs.

What aspects should fund investment pay attention to?

1. Understand the investment strategy and risk characteristics of the fund. Different public real estate investment trusts may invest in different types of real estate, such as commercial real estate, residential real estate or industrial real estate. Investors should carefully read the prospectus and related materials of the Fund to understand the investment scope, risk-return characteristics and operation mode of the Fund.

2. Pay attention to the management team and management level of the fund. The experience and ability of fund managers have an important influence on the performance of funds. Investors can evaluate whether they are suitable for their investment needs by studying the background, past investment performance and investment style of fund managers.

3. Diversify investment risks. Don't put all your eggs in one basket. Investors can reduce the specific risks of a single fund or a single industry by investing in multiple funds of different types or industries.

The above is an introduction to the reasons for the sharp drop of public offering REITs, hoping to help you. Most reits funds belong to Public Offering of Fund and a few belong to private equity funds.