The chart below depicts the growth in Net Asset Value of Real Estate Based funds versus Equity Based funds in Nigeria every month since January 2013.
The chart speaks for itself, however here is our own interpretation of what we see;
- The equities based funds have nose dived since the drop in stock market prices which began in 2014.
- Real Estate Based Funds have been flat within the same period either due to lack of liquidity or that investors have avoided pouring funds in that sector
- Real Estate based funds include REITs and other funds purely dedicated to investing in real estate.
- The chart also suggest real estate based funds are a good hedge against inflation
- The chart, however ignores returns such as dividend, which may change the outcome of the results.