Recently, everyone has been discussing the topic of REITs fund subscription conditions and procedures - detailed explanation of REITs funds. The editor specially checked some relevant documents and compiled the following information for your reference.

What are REITs funds?

REITs fund refers to real estate investment trust fund, which is a fund managed by an asset management institution. It aims to provide investors with a way to obtain income by investing in the real estate market without directly purchasing real estate.

REITs funds invest in real estate-related securities, such as real estate investment trusts, real estate development companies, and real estate-related infrastructure.

REITs fund subscription conditions Investors can purchase REITs funds through the stock exchange, but they also need to meet certain conditions.

Investors must have a securities account and ensure that there are sufficient funds in the account.

Investors need to understand their risk tolerance in order to choose REITs fund products that suit them.

Investors need to know relevant information about the REITs funds they purchase, such as fund size, investment strategy, historical performance, etc.

REITs fund subscription process The subscription process for REITs funds is roughly the same as other fund products.

Investors need to choose a suitable REITs fund product and submit a subscription application to the securities company.

The securities company will apply to the corresponding fund management company to purchase fund shares based on the investor's application.

The fund management company will calculate the net value of the fund based on market conditions and issue corresponding fund shares to investors based on their subscription amount.

Investors can check the net value and market value of the REITs fund shares they hold at any time, and decide whether to continue to hold or sell based on market conditions.

Advantages and Disadvantages of REITs Funds Compared with other fund products, REITs funds have the following advantages: Investors can obtain investment income from the real estate market by purchasing REITs funds without directly purchasing real estate.

REITs funds have the characteristics of good liquidity, diversified investment, and high transparency, which can effectively reduce investment risks.

REITs funds have relatively low management fees and can provide investors with higher yields.

REITs funds also have some shortcomings, the most important of which is that their returns are closely related to the fluctuations of the real estate market and are greatly affected by factors such as the macroeconomic environment and policy changes.

The investment threshold of REITs funds is relatively high and requires greater financial strength.

Investors need to fully understand their risk tolerance and carefully choose REITs fund products that suit them.