Top 12 Must-Know Different Types of Investments

5. Real Estate Investment Trusts (REITs)

REITs are companies that own, operate, or finance income-generating real estate. Investors can buy shares in a REIT, which allows them to invest in large-scale commercial properties without direct ownership.

Pros:

  • Provides regular dividend income
  • Diversification into real estate without owning property
  • Liquidity since REITs are traded like stocks
  • Tax advantages such as pass-through income

Cons:

  • Dividends are taxed as ordinary income
  • Vulnerable to interest rate changes
  • Management fees can reduce returns
  • Lack of control over the specific properties in the portfolio

Click NEXT PAGE to learn more…

Previous page 1 2 3 4 5 6 7 8 9 10 11 12 13 14Next page
Back to top button