Should You SIP In REITs During A Market Downturn? Key Risks & Asset Allocation Explained

REITs should not necessarily be approached like equity mutual funds during a market downturn, where investors may increase SIPs to benefit from lower prices. Sanchita Mukherji, Senior Business Economist & Market Observer, Managing Partner, Talk The Walk LLP, explains why REITs require a different investment approach based on an investor’s risk profile, liquidity needs and investment horizon. Since REITs combine elements of equity, fixed income and alternative assets, investors must also consider interest rates, commercial real estate cycles and underlying property performance. The discussion explains why understanding these factors is crucial before increasing exposure to REITs.