Real Estate Investing 101 by Michele Cagan

Author:Michele Cagan
Language: eng
Format: epub, azw3
Publisher: Adams Media
Published: 2019-06-10T16:00:00+00:00

Choosing the Right Fund

Before choosing a real estate mutual fund to invest in, you’ll want to know what’s in its portfolio. At least 80 percent of a fund’s holdings have to be the investment type indicated by its name, but sometimes the names are (purposely) vague, allowing more flexibility. Make sure that the funds you consider actually contain the type of real estate investments you want.

You can narrow down potential picks using online fund screeners, available on sites like Morningstar (www.morningstar.com) and Kiplinger (www.kiplinger.com; click on the “Tools” section). If you already have a brokerage account, you’ll have access to all of their screening tools as well.

Some of the factors to compare include:

• Loads are sales charges that kick in when you buy (front-end load) or sell (back-end load) open-end mutual fund shares.

• Expense ratio refers to ongoing fees for the fund, which range from 0.09 percent to more than 3 percent; lower fees are associated with index funds, higher fees with managed funds.

• Minimum investment requirement for open-end funds typically ranges from $500 to $3,000 for the initial investment only.

• NAV (net asset value) equals the total current value of all assets held by the fund minus any outstanding liabilities divided by the total number of outstanding shares [(assets – liabilities)/shares].

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.