S&S Investment Balance

dunstonh

Options might include investing in companies whose values are closely linked to property values (eg construction, housing associations, etc) or in a fund of funds, to spread the risk of property investment. I was trying to understand precisely what the "best practice" of investing a proportion of ones portfolio in property really meant.

Those types of funds already exist but they are significantly higher up the risk scale. Blackrock Global Properties tracker for example. However, funds like that increase your volatility and risk. Whereas bricks and mortar fund reduce the volatility.

arbster

dunstonh wrote: »

Those types of funds already exist but they are significantly higher up the risk scale. Blackrock Global Properties tracker for example. However, funds like that increase your volatility and risk. Whereas bricks and mortar fund reduce the volatility.

Thank you too, that makes sense and explains why Property rightly sits between High Yield Bonds and UK Equity in the risk spectrum.