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What are the risks in REIT investment?

Investment in REIT is not risk-free and subject to the following risks;

  • Liquidity risk: Although public REIT units are traded on an exchange but it is comparatively less liquid than investment in other stocks and bonds.
  • Market risk: Financial market risks, changes in interest rates, and taxation norms directly affect the REIT returns. Further, it is vulnerable to real estate market trends and fluctuations.
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