Wednesday, September 10, 2008

Invest in ProFunds Real Estate Mutual Funds

If you pay any attention to investment information, then someone has probably told you at some point to 'invest in real estate.' This can, of course, mean putting your money into a physical home or building, but it can also mean investing in real estate mutual funds. ProFunds is one of the many investment companies that offer customers the chance to invest in real estate mutual funds.

Decide what your objectives are for investing in real estate mutual funds. Ask yourself the following:
--How much risk are you willing to take on?
--How much are you willing to invest?
--How long do you anticipate staying in the market?

Go to the ProFunds Web site and request the prospectus for the ProFunds real estate mutual fund. Select the "ProFunds Info" link on the right side of the navigation bar. You may have a hard copy mailed to you or download an electronic copy.

Read the prospectus carefully and note any service fees.

Go to the ProFunds Web site. Under Quick Links, click on "Research the ProFunds".

Look at the "Quick Links" menu on the right hand side of the screen. From here, you can download ProFunds Quickfacts, NAVs (Net Asset Values) and performance charts.

Make sure you understand the information presented to you in these research materials.

Decide whether or not you're ready to take on the risk associated with this fund.

Contact ProFunds to set up an account.

Tips & Warnings

  • ProFunds offers investing opportunities without transaction fees, which allows investors to keep up with trends and to re-invest accordingly.
  • Be sure to devote enough time to keeping up with the changes in real estate as the ProFund Real Estate Mutual Fund generally follows the direction of the real estate sector as a whole.
  • Savvy investors know that past performance is not indicative of the future, but it can certainly be an indicator. If you're feeling less than confident in an investment choice you've made, consult a reliable broker for further guidance.
  • The ProFunds Real Estate Mutual Funds are managed somewhat aggressively, so be ready for volatility.
  • ProFunds Real Estate Mutual Funds are naturally invested only in the real estate sector. Be sure that this does not represent your entire investment portfolio.

No comments: