Thursday, November 12, 2009

Managing Alternative Real Estate Investments

Private equity investment fund is somewhat different from REIT products. Direct investment in shares. Investment managers have the freedom to invest in stocks. Funds may be invested entirely in stocks, but because there’s motto diversification, investment managers rarely invest in one stock alone. Generally, the investment manager to invest a minimum of five shares to spread investment risk.

Private equity fund of funds is usually quite large and always hoping enough returns and standards always provide the return of about 15 percent of the lowest, and some have target rate of return of 25 percent per year.

Investment managers generally invest with these returns and when it is exceeded, will immediately seek out other markets that can provide results for the rate of return. However, the investment could remain as long as can give greater results.

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