REIT portfolio tips
- Prior to making any decision on precisely what to invest in, you must determine why you’re investing—and define your risk tolerances and investment goals.
- The aggressive investor pursuing generous returns over short periods of time should not allocate a high percentage of assets into REITs as they are a singles-hitter’s game.
- Allocations to REIT investments will differ for every investor, dependent on his or her age, risk tolerance, financial goals, and need for present income, but we think that a 15 to 20 percent allocation to REITs is suitable for majority of investors.
- A bare minimum of six to eight REITs is required to attain a basic amount of diversification when investing in individual REIT stocks.
- Unless an investor is extremely confident about sectors that will perform best over the intermediate term, a portfolio allocated according to market weighting we think is most appropriate.
- Those who wish to take part in the long-term benefits of REIT investing but who want to avoid the worry associated with constant monitoring of their REIT investments can make use of the services of a competent stockbroker, investment adviser, or financial planner.
- Investors that would rather avoid individual REIT research can invest passively through REIT mutual funds—either actively managed or indexed—or even a REIT ETF. These options present a great way for individuals to secure adequate REIT diversification and with minimal use of time.
7 Great REIT Portfolio Tips Conclusion
We hope you enjoyed reading and find 7 Great REIT Portfolio Tips useful. Click on the button below to see REITs listed in their sectors.