facebookIf I have 5k spare to invest into a specific sector REIT, would it makes more sense to put all 5k into one or split it into 2 REITs (same sector)? Assuming both REITs similar performance&dividend - Seedly

Anonymous

12 Jul 2021

REITs

If I have 5k spare to invest into a specific sector REIT, would it makes more sense to put all 5k into one or split it into 2 REITs (same sector)? Assuming both REITs similar performance&dividend

Hoping to hear some thoughts from the community..

Just also wondering if there is any benefit of focusing in 1 REIT per sector.

For diversification, I should be fine; I have investment into different sectors REITs for dividend, growth stocks, gold, US and China Etfs.

Discussion (4)

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Vince

20 Aug 2021

Blog Owner at REIT-TIREMENT

If both are really good, then I would split

Split. (Assume both are good reit?)

Same as my initial thinking when i 1st invested in banks.

Previously, my thinking all the trend of 3 banks are similar, when 1 go up, the other 2 also go up, most of the time. So i just buy 1.

1) Normal days, the 2 reits may perform the same. But when crisis strike different reit manager will react differently. Dividend cut, etc

2) Although the Reits performance may be the same, the reits properties geographical location may be different. Eg. If 1 reits more properties at UK , if UK get covid or politic issue, then the property performance will get affected.​​​

Tan Choong Hwee

12 Jul 2021

Solutions Specialist at Providend

Since you have already diversifed into different sectors, there is no real need diversifying into 2 ...

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