Summary of Real Estate Investment Trusts (REITs)

Real estate investment trusts offer a way to invest in real estate without actually having to buy properties yourself. Are REITs right for you? The answer depends on your assessment of your risk comfort level, and your knowledge of REITs and the options for investing in them. Many investors who would like to invest in REITs at the lowest possible level of risk consider investing in equity REITs that diversify their holdings across several sectors, or they consider mutual funds that invest in REITs.

If you need to diversify your portfolio by adding assets other than stocks and bonds and you have a reasonable tolerance for investment risk, then you might consider REITs. They offer some of the investment benefits of real estate investing without the hassle of being a landlord.