Realty funds are now offering innovative investment avenues to the middle class and HNIs.
The Economic Times Realty funds offering innovative investment avenues Pradeep was ecstatic. He had just received a larger than expected year-end bonus. After a vacation to Shimla with family, he was now wondering how to invest the remaining amount productively for the future. He considered buying a flat in Mumbai, using the bonus as down payment and taking a loan for the remaining amount. Though he would get a tax benefit on interest repayment, prevailing high rates worried him. He was not sure about finding the right property with a good rate. He was told that yields on commercial property were better than those on residential, but the ticket size was higher. The likes of Pradeep can take heart as there are now useful vehicles in the form of Real Estate VC funds and Real Estate PMS. They address precisely the problems mentioned above. For a fee (typically 2% annually), they take money from investors and invest in a set of realty projects. They take a share of profits from in