Real Estate Funds, also known as FIIs, are investment funds intended for investment in real estate ventures. They are a way to invest in the real estate market without the need to buy a property. FIIs are constituted as "closed condominiums", where it is not possible to redeem shares before the end of the fund's term.
Investment in FIIs is carried out through the purchase of quotas which, in turn, represent a fraction of the fund's equity. Quotas are traded on the stock exchange, as if they were company shares. In this way, the investor can buy and sell shares of FIIs in the secondary market, that is, on the stock exchange, through a broker.
FIIs are professionally managed by a financial institution, which is responsible for making investment decisions for the fund. This management is remunerated through an administration fee, which is charged on the fund's equity. In addition, some FIIs also charge a performance fee, which is an additional remuneration for the manager if the fund achieves a certain performance.
Income from FIIs comes from renting real estate, selling real estate, dividends from shares in real estate companies, among others. These earnings are distributed to shareholders in the form of dividends, usually on a monthly basis. The profitability of an FII is given by the sum of the dividends received and the appreciation of the fund's shares.
FIIs are a way to diversify investments, as they allow access to different types of real estate (residential, commercial, logistics, etc.), to different geographic regions and to different segments of the real estate market (construction, rent, sale, etc). In addition, FIIs have greater liquidity than real estate, as shares can be sold on the stock exchange at any time.
On the other hand, FIIs also have risks. The main one is the market risk, which is the possibility of the fund's shares devaluing. This can occur for several reasons, such as the deterioration of the economy, the increase in interest rates, the vacancy of the fund's properties, among others. In addition, there is credit risk, which is the possibility that tenants will not pay rent, and management risk, which is the possibility that the fund manager will make inappropriate investment decisions.
In addition to FIIs, there are other types of investments in real estate, such as the direct purchase of real estate, the purchase of shares in real estate companies and the purchase of real estate debt securities. Each of these investments has its characteristics, advantages and disadvantages, and must be chosen according to the investor's profile and objectives.
The securities market is a segment of the financial market where debt securities, which are financial instruments representing a loan, are traded. The investor who buys a bond is lending money to the issuer of the bond, which can be a government, a corporation or a financial institution. In exchange, the investor receives the right to receive the borrowed amount in the future, plus interest.
Debt securities can be short-term (with a maturity of up to one year), medium-term (with a maturity of between one and five years) or long-term (with a maturity of more than five years). They can be prefixed (where the interest rate is set at the time of purchase of the bond) or post-fixed (where the interest rate is set according to an inflation index or the basic interest rate).
The bond market is a form of financing for governments and companies. For investors, it is a way of investing money with the expectation of receiving a return in the future. However, like any investment, the purchase of debt securities has risks, such as credit risk (possibility that the issuer of the security does not pay the amount borrowed) and market risk (possibility that the value of the security depreciates).
In summary, both FIIs and the bond market are forms of investment that can bring attractive returns to investors. However, they also have risks and must be chosen according to the profile and objectives of each investor. In addition, it is important to keep in mind that success in investing requires study, planning and discipline.
