Open-Ended Real Estate Funds: a Solid Basis for Your Investment
Properties are stable, tangible assets. By investing in an open-ended real estate funds you acquire an indirect interest in several properties. This will enable you to benefit from the fundamental stability of real estate – without shouldering the administrative burden of a property owner.
Open-ended real estate funds practice a wide risk diversification by location, type of use, tenant structure, and size category of the properties. It is a good way to minimise market risks.
Other advantages: Open-ended real estate funds...
- are subject to constant government supervision through the German Supervisory Authority for Financial Services (BaFin).
- are largely protected against inflation through indexed leases for their properties.
- principally manifest but minor fluctuations in value (volatility) because the wide diversification of their real estate makes them less dependent on economic developments.
Investors benefit from
- the possibility of a high income tax-free share in the return on investment.
- a principally flexible financial investment without a fixed term of contract.
- the option to commit themselves even with modest savings instalments.
