REITs generally appeal to a wide spectrum of investors. REITs in general are stable, a long term holding providing regular distributions. Hence it well-loved by retirees, pension funds, income funds and individuals are more risk averse.
If you wish to churn and make quick gains in the stock market, they may not be the right instrument for you.
However, that said, the SREITs (-8%) have outperformed the STI (-22%) year to date in terms of price performance
If you have small capital , REITS is not the way to go. Capital appreciation is poor but dividend is awesome. BUT if you have small capital but your plan is to grow your REITS into a huge porfolio over a few years and investing consistently monthly , THEN it is a good idea.
If you have big capital then REITS is the way to go, you can quit your job and collect dividend money and shake leg lol.
For me im not born rich, so i dont have big capital. I would go for capital appreciation dividends.
Once i get a huge snowball (capital) then I plan to buy REITS to collect dividend money.
hope my english makes sense LOL.
above are just my opinions. im not a financial advisor.
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If you're looking for companies with expotential growth (no dividends), I find REITs may not be suit...
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