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1.
The number of mutual funds investing in REITs totals _______.
Close to 80. NAREIT's Website lists close to 80 mutual funds that invest in REITs.
2.
One advantage of investing in a real estate investment trust is _______.
The potential for reasonably high dividends. REITs can add considerable income potential to an investment portfolio.
3.
A real estate investment trust that invests heavily in equity may offer the investor _______.
Increased stability. REITs that invest in equity are generally less volatile than those that invest primarily in mortgage loans.
4.
The Tax Reform Act of 1986 expanded the powers of real estate investment trusts by _______.
Allowing them to manage and operate real estate developments. Prior to the Tax Reform Act of 1986, REITs could own real estate, but they could not manage or operate it.
5.
A real estate investment trust is most likely to focus on the area of _______.
Equity. More than 90 percent of REITs invest in equity; smaller numbers invest in mortgage loans or a combination of equity and mortgage loans.
