Property Fund Investments

Property investment funds pool money from a number of investors and invest in property according to the rules of the fund itself. Some funds are open-ended (i.e. there is no end date by which the fund must sell all its assets and return the proceeds to investors) and some have specified terms for investing and realising the profits – e.g. a 5 or 10 year term.Open-ended funds typically have a market listing to enable investors to buy and sell their holdings in the fund.

Investors in funds hold shares in the fund and do not own the underlying assets (properties) of the fund so these are not suitable investments for those wishing to manage their own property portfolios.