Investing in real estate shares or buying shares in FIIs: which is the best option?

Pak have a tradition of being interested in the real estate sector. In addition to the direct purchase of properties, it is possible to expose yourself to this segment through the financial market. You can invest in real estate shares or real estate fund shares (FII) , for example.

Both options have risks and advantages, and may be more or less suited to the strategy of each investor. Thus, understanding these opportunities is essential to intelligently decide whether it is worth investing.

Interested? So keep reading this article and ask your questions about which is the best option: investing in real estate shares or FIIs!

What is an action and how does this investment work?

The first step in understanding the best option between investing in stocks or real estate funds is knowing what each of these concepts means. In this sense, a share is the smallest part of a company’s share capital.

The investor who acquires the paper becomes a partner of the company and is entitled to participate in its results. Furthermore, there are two main ways to obtain income: through the appreciation of the share price and through the distribution of dividends.

The first case occurs when the shareholder sells the stock at a higher price than he paid for the purchase, making a profit. On the other hand, the distribution of dividends occurs when the company divides the benefits among the shareholders.

However, in addition to paying attention to the possible gains that stocks allow, it is also necessary to analyze the risks of this investment. For that, check the following information:


One of the main risks of investing in stocks is the unpredictability of earnings. Since they are variable income investments , it is impossible to be sure about the return on the asset.

In addition, it is necessary to consider the risks of the sector in which the shares you are acquiring are operating. Some segments may be affected by climate change, the fall in the dollar or economic crises, for example.

Finally, be sure to consider liquidity risk. In some cases, unattractive stocks can be difficult to trade in the market. This makes the investor not always easy to turn their investment into cash quickly.

What are the main examples of real estate actions?

Now that you understand what a stock is, you can go deeper into the subject and learn about some of the options for assets aimed at the real estate market. It is worth considering that the Pak stock exchange, B3, considers two groups of companies in this sector.

Check below which are these groups and examples of shares listed on the stock exchange in each of them:

real estate exploration

The real estate companies belonging to the real estate exploration group have their activities focused on the purchase and sale, or rental of real estate. These properties can be industrial, commercial or residential.

What is and how does investing in FII work?

So far you have understood what stocks are and have seen examples of real estate companies traded on the stock exchange. Now is the time to know what a real estate investment fund is to identify which of these options is best suited to your strategy.

An FII is a type of collective investment, which is managed by a specialized professional . Therefore, the manager is responsible for the investments — and the investor acquires shares in the fund, having proportional access to the results obtained.

This is the standard dynamics of all mutual funds. However, in real estate funds, shares are traded B3. The funds raised from shareholders are used for investment in the real estate sector.

Therefore, these funds can be a way to invest in the real estate sector without having to buy a property, or trade shares in the segment individually. Another advantage of FIIs is that they can distribute dividends among shareholders.

What are the types of real estate fund?

In addition to understanding what real estate funds are, it is also necessary to analyze the different types of funds that exist. After all, each one may be more suitable for you, according to your strategy.

Are they:

Brick backgrounds

In brick funds, the allocation of resources is directed towards investment in physical properties. They can work in different ways, investing in corporate buildings, warehouses, malls, educational institutions, hospitals, among other structures.

Paper backgrounds

In the case of paper funds, the resources are directed to fixed income securities linked to the real estate market. So the volatility of the investment is usually lower, compared to brick funds, for example.

funds of funds

The last type of FII is the fund of funds, in which the shareholders’ resources are invested in shares of other real estate funds. By investing in this alternative, you participate simultaneously in different FIIs, favoring portfolio diversification.

Real estate shares or FIIs: which is the best option?

As you’ve noted, there are risks and rewards to investing in both real estate stocks and FIIs.

After all, the choice of investments must be linked to your investor profile and financial goals. Thus, it will be possible to consider your risk tolerance, as well as outline the best strategy to achieve what you are looking for in the financial market.

Investing in real estate stocks or buying shares in FIIs can be an interesting strategy. To define what to do, you must study the opportunity and consider the risks and advantages of each. You can even diversify by including both options in your portfolio.

Post your Comments

logged inYou must be to post a comment.