People with high income like businessmen, CEOs, doctors, CAs are now investing in real estate investment funds.  High income professionals like businessmen, doctors, CEOs and CAs are investing in real estate investment funds

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Ahmedabad7 days agoAuthor: Vimukta Dave

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People with high income usually invest in prime locations or a good project in the property market. It is now seen that professionals such as businessmen, doctors, lawyers, chartered accountants in this category are investing in real estate investment funds instead of investing directly in properties.

Anuranjan Mohot, managing director of Lumos Alternate Investment Advisors Pvt Ltd, says that high income or high net worth individuals (HNIs) are now slowly investing in real estate investment funds. The big reason for this is that the return on investment in this is safe and there is no problem of maintaining physical property.

Trend changed in the last two years

According to Anuranjan, real estate investment fund or alternative investment fund invests more than most institutes and private equity. Earlier, high individuals who invested at least one crore rupees were hardly seen. This trend has changed in the last two years.

There is increasing investment inflow from HNI. Professionals such as doctors, lawyers, people associated with management of large companies, CEOs, businessmen, chartered accountants are investing in reality funds. At the same time, Lumos is going to launch a fund of Rs 300 crore soon.

Good returns and no hassles

Monil Parikh, managing partner of Ahmedabad-based Purple Elephant Reality Fund, which launched the Rs 100 crore fund, said that buying and then maintaining physical property is not an easy task. Apart from this, this work also takes time. People from high income classes are unable to make time for this from their busy schedule.

Secondly, both black and white payments have to be done in the property. People usually avoid it. The most important thing is that the return on investment, physical property prices increase by only 3-4% annually. At the same time, the reality fund is getting 15-18% profits. Also, if the fund gets listed, then it also gets a dividend of 7-8%.

Where does the fund invest?

  • New Housing and Commercial Projects
  • Stressed project and property if there is financial problem
  • Stocks of real sector listed companies
  • Property is purchased and leased
  • Investment in reality related companies in the form of mutual funds

Investors profit up to 15%

Sharad Mittal, chief executive officer of Motilal Oswal Real Estate Fund, says real estate investment funds in India started in 2008. Now the average is getting around 15% return. This good profit is pulling investors.

However, last year no large fund was launched due to Corona. If it were, then it would have got a good response at this time. The real estate investment fund invests in the beginning of a large real estate project, as it gives good profits. Apart from this, investments are also being made in stocks of reality companies.

Recovery in property market after a long time

VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, says that the property market is recovering after a long time. The interest rate is also at its lowest level ever. Due to this demand has come in real estate. No funds were launched in 2020 due to Corona, but the funds that came in the year before that increased the investment of people with large income.

Although HNI investment is lower compared to overall institutional investment, the interest of people with higher income is seen increasing in real estate funds. This trend may increase in the coming days.

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Mohit Yadav

By Mohit Yadav

Mr. Mohit Yadav holds a degree of M.A. in Mass Communication with specialization in journalism. He has a work experience of 6 years and has worked overseas also. He is chief journalist and covers National news. You can contact him here Email:-