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What is a REIT? What are the possible advantages of having a REIT in your investment...

What is a REIT? What are the possible advantages of having a REIT in your investment portfolio?

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REIT is a real estate investment trust that invests in income generating real estates. REITs distribute significant amount of its net income in the form of dividends to investors.

The possible advantages of having a REIT in your investment portfolio include:

  • REITs offer diversification benefits to our portfolio
  • REITs pay a regular dividend, so the portfolio generates periodic cash flows at regular invtervals
  • REITs also provide inflation protection. With rise in inflation the value of REITs increase
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