Understand Market Volatility and How to Use It to Your Advantage
Real estate funds (FIIs) are an increasingly popular option among investors seeking stable returns and portfolio diversification.
Investing in FIIs allows ordinary people, with less capital, to invest in large real estate projects, such as shopping malls, commercial buildings and even bank branches.
Furthermore, real estate funds can be composed of physical properties, by financial papers the real estate market or a mixture of both.
However, with so many options on the market, it is essential to understand the different types of funds available and how to choose the ideal one for your goals.
You Brick Backgrounds are those who invest directly in physical properties, such as commercial buildings, logistics warehouses, shopping centers, among others.
The income from these funds usually comes from the rent paid by tenants of the properties, in addition to the possible appreciation of the properties themselves over time.
These funds are ideal for those looking for a more stable passive income, as rental payments tend to be predictable.
However, they are also subject to vacancy (when the property is unoccupied) and devaluation in the real estate market.
Example of Brick Backgrounds:
These funds may be attractive to those who believe in the recovery of the real estate sector, but it is important to consider the risks associated with vacancy and the economic health of the sector.
Unlike Brick Funds, Paper Funds invest in financial assets linked to the real estate sector, such as Real Estate Receivables Certificates (CRIs), Real Estate Credit Letters (LCI), among others.
These funds have as their source of income the interest and monetary corrections of these securities.
Paper Funds are often an interesting choice in times of high inflation, as many of these securities are indexed to inflation, offering protection against the loss of purchasing power.
However, they can be more volatile, as the yield depends on fluctuations in interest rates and the economy.
Example of Paper Funds:
Investors who prefer greater predictability in returns and protection against inflation may find Paper Funds more suitable for their strategies.
You Hybrid Funds are those that mix investments in both physical real estate (bricks) and debt securities (paper), offering internal diversification.
They can invest in multiple real estate asset classes at the same time, seeking a balance between income and capital appreciation.
The flexibility of Hybrid Funds can be advantageous in times of economic uncertainty, as the fund manager can reallocate assets according to market conditions.
However, this diversification may also mean that the fund does not take advantage of booms in specific sectors as much, as it will be spread across different areas.
Example of Hybrid Funds:
These funds may be interesting for investors who prefer not to choose between physical properties or securities and want to rely on the manager's expertise to balance the portfolio.
Choosing the ideal real estate fund depends on some key factors:
To facilitate the investment process, there are several applications that allow you to track and purchase FII shares quickly and easily.
Here are some suggestions, with download links and reviews:
These applications are good options for those who want to start investing in real estate funds in a practical way, with tools for analyzing and monitoring investments.
Choosing the best FIIs for your portfolio requires a detailed and careful analysis.
Furthermore, it is important to remember that diversification is key to reducing risk.
Use information regularly provided by funds and other reliable sources to make informed decisions.
Remember that the help of a financial advisor can be valuable in this process.
