Real Estate Investment Trust/Real Estate Mutual Fund

The setting up of a Real Estate Mutual Fund can also provide some support to the cash starved housing sector. The Mutual Fund industry in India has received a tremendous boost but presently mutual fund are not permitted to hold real estate assets. But there already are sector funds where the public invests money exclusively in companies belonging to one sector. This concept just needs to be taken further to allow investments in real estate. Besides, a Real Estate Mutual Fund would, through the pooling in of resources, allow individuals with small amounts of cash to also take advantages of the returns available from the real estate market.