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.

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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.