Real estate investment trusts or REITs own, operate, or finance income-producing real estate across many property sectors.The real estate investment trust is a way to invest in real estate passively.
Before adding any asset class to your portfolio, it is better to examine your risk tolerance and weigh the pros and cons to determine if REITs are a good investment for your situation.
Equity REITs
Equity REITs own or operate income-producing real estates like shopping malls, commercial real estate, health care facilities, apartment buildings, etc,.
It provide financing for income-producing real estate by borrowing money at low short-term interest rates and purchase mortgages that pay more excellent long-term interest rates.