Sunday, May 17, 2009

Become Powerful Through Knowledge in REITs and Real Estate Mutual Funds

When it comes to investments, a lot of people have had a number of complaints in the past year as they watched their investments drop through the floor, taking a lot of their investment money with them.

They have blamed everyone for their losses from Wall Street to the government, to specific CEOs. In many cases, they are right, those people led to some of the drops in their investment portfolios, but did you realize there are plenty of investors that did not lose money on the market? There were even some who made money. What made them different from you? The fact that they were educated and watching what they were doing and reacted accordingly.

This is something you too can do. You just need to know what you are investing in and how to deal with those investments.

Smart Investing

First, if you want less of a risk of losing your money you need to make sure you are putting it into an investing venue where you are less likely to lose it. This is when you want to choose something tangible. Think about it. Many of the stocks, bonds and mutual funds out there on the stock market are things that could completely disappear tomorrow. They are based on business ideas, which are just thoughts and plans, not something tangible.

Instead, consider fields like real estate where you will know that the investment is based on something tangible, property, and that it will be around. Sure real estate investments can have bad days, but they are still based on something with value and will always be around.

The next part of smart investing is to make sure that your investment is also one that is less likely to suffer a large loss. In this case it may be a 'don't put all your eggs in one basket' idea. Instead of putting all of your money into a single stock or bond, you may want to invest in a real estate investment trust (REIT) or real estate mutual fund where you have a number of stocks, bonds and other real estate interests that you will be buying into with each and every share. That means even if one of those interests has a bad day, the others will be happily chugging along and keep you from feeling too hard of a hit.

Find a Good Brokerage

When you're ready to invest in real estate you will want to work with a company like is the first and only online brokerage that specializes in real estate interest trusts and real estate mutual funds. Not only can you buy, sell, and organize your portfolios online with, but you can also be kept up to date with the latest news, trends and reports that are specifically geared towards your investments.

This is vital as knowing what is happening in your investment field is what is going to put you in the category of those who don't lose big in investments and are able to profit. The more you know about what is happening in the field, the easier it will be to know when to buy and sell and make smart investing decisions.

This article was written by Earl E. Bird, spokes person for the, a site dedicated to educating Real Estate Investors on how to invest in Real Estate Mutual Funds to diversify their investing portfolio. Visit to read more about Real Estate Stock Investing.

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