Invest in property fund

MarcoM

Hi,

I had a look at the m & g real estate fund and the returns from 2008 to 2013 are in excess of 50%.
My current portfolio has next to none property investments. I would like to know what you guys think about investing a property fund and your experiences of this.

Thanks

jimjames

If I was wanting to invest in an illiquid asset like property I would be looking at an investment trust rather than a fund so that the manager is able to plan holdings long term without needing to buy & sell to fund redemptions and purchases.

F&C run a property trust but there are a number of others that you may want to look at.

Ark_Welder

MarcoM wrote: »

Hi,

I had a look at the m & g real estate fund and the returns from 2008 to 2013 are in excess of 50%.

This would be the Global Real Estate Securities fund rather than the Property Portfolio fund? The former invests in shares in companies and REITs, whereas the latter holds property directly. So GRES shouldn't suffer from liquidity problems as could happen with PP, but PP offers the greater diversification away from equities than does GRES (holds equities) or REITs (traded as equity).

grey_gym_sock

i don't think an open-ended fund investing in illiquid assets works very well. i'd either go with an open-ended fund investing in shares, or a closed-ended company (REIT, IT, or other).