What is the appeal of J-REITs that can be understood in one minute?
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One of the strengths of diversified investment is that it is easy to hedge risks such as vacancies.
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Diversified investment(Bun-san,diversification) Means that the investment amount is diversified into several thingsinvestmentIt is a method to do. If you invest in one thing and the value of the investment target declines for some reason, the investment funds will almost run out, so this is an investment method used to mitigate such risks. Mainly suitable for medium- to long-term investment styles. In addition, a balanced type that packs multiple financial products, stocks, and bonds.Investment trustThere is also.
The main distribution methods are as follows.
Disperse in time
It is a method of diversifying investment time. The basis of investment is "buy cheap and sell high", but it is virtually impossible to "buy cheap" because it is not known whether the price of what you just bought will decrease or increase after that. Therefore, instead of investing all the funds at once, for example, a method such as dividing the funds every month is adopted.
Diversify investment destinations
When investing in a stock, the value of the stock is lost when the investee company collapses. Therefore, instead of investing all the funds in the stocks of one company, we take a method of diversifying the funds into the stocks of multiple companies. There is a style of diversifying into promising stocks and aiming for returns, and a style of diversifying into stocks with opposite price movements, such as export companies and import companies. The former style is medium risk and the latter style is low risk.
Diversify investment products
A method of combining investment products that tend to have opposite price movements, such as when a bond goes up, the stock goes down, and when the stock goes up, the bond goes down. This style is low risk. There is also a method of diversifying into foreign currency deposits and yen deposits, or domestic bonds and foreign bonds, and in addition to aiming for returns due to exchange rate fluctuations, returns at the original interest rate can also be expected.
Even if the value of one investment target decreases by investing in multiple things, the investment amount of that one investment amount is small compared to the whole, so the assets do not decrease much. In the case of stock investment, the investment targetbankruptcy,Delisted, In the case of foreign currencyHyper inflationIt also has the meaning of reducing damage caused by decisive situations. If held for a medium to long term, a return that exceeds the bank interest rate can be expected.[Source required]
There is less risk but less return. In addition, since it is necessary to invest in multiple fields and types, a large amount of money is required for the sales commission of the investment. In addition, it is necessary to closely monitor the operational status of their investment targets, and many investors are skeptical about diversifying their funds.[Source required]