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.
[wpdatachart id=161]
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.
