To me, there is no meaning for analyzing the price movement of mutual fund as its operation is different from individual stock. A mutual funds contains a basket of stocks in different sector and its prices is determined by the closing price of each stock of the day after management fee, trustee fee as well as other fees specified in prospectus. Therefore, some mutual funds might go up when market drop due to its portfolio composition. To evaluate a mutual fund, a better way is to study its net return consistency but not price movement.
As for REIT, as it is supported by real estate holding, as long as the market price is lower than its NAV, it is a great buy provided that the properties the trust is holding is good in nature such as high occupancy, good rental, less default etc. You also can analyze it based on it net return consistency before any investment. We should also analyze whether the properties is generating good rental income for the trust and whether it is at near full occupancy.
Above are just my idea but not a strict rule. I disclaim for any liability on the above comments. You should make the final decision by yourself.Generally speaking, I prefer shopping malls than office block. Therefore, I rather look for REIT with shopping malls in their portfolio. Do note that this is my personal preference and what I like may be you hate the most. Do your homework and let your common sense works for you before jump into any conclusion.
Good luck.
How Technical Chart Helps on Identifying Entry Timing of Mutual Fund and REITs?
Reviewed by Pisstol Aer
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Published :
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