Tools to get started

Equip yourself with basic investment tools for a smoother investment journey and to help you grow your own healthy portfolio.

If you are keen on real estate, you needn’t just own physical property. You can also buy the shares of a Real Estate Investment Trust (REIT). A REIT is a company that owns and manages income-generating real estate assets. REITs offer five key advantages:

Affordability

Unlike buying physical properties, REITs can be purchased with small initial outlays. They offer a more affordable investment proposition.

Diversification

You can diversify your risk exposure by different geographic locations and property types from apartments and offices, to shopping centres, hotels, hospitals and warehouses.

Low correlation

REITs tend to have low correlation to equities, largely due to their more predictable income stream which in turn reduces their share price volatility.

Income generation

As REITs are required by law to distribute at least 90% of taxable income to shareholders each year, you can be assured of receiving a regular dividend income, although the amount may vary each year.

Liquidity

The ability to easily buy and sell units in REITs makes them a liquid proxy to physical real estate.

The general concepts shared are for educational purposes only and not for the use in the marketing or sale of any Eastspring investment products.


Viewers are advised to be cautious if they intend to invest in any products that are used in the illustrations as the illustrations do not cover the full spectrum of considerations required in making an investment decision.


This information is not an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such an offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such an offer or solicitation. It should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any investments if mentioned herein.


The information contained herein does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors may wish to seek advice from a financial adviser before any making investment decision. In the event that an investor chooses not to seek advice from a financial adviser, he should consider carefully whether the investment in question is suitable for him.


Eastspring Investments (excluding JV companies) companies are ultimately wholly-owned/indirect subsidiaries/associate of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV’s) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company, a subsidiary of M&G plc (a company incorporated in the United Kingdom).