Fundamentals

What is the difference between a real estate fund and a REIT?

5 min read · 08/02/2026

The differences between the two structures — how they operate, who invests in them and what defines each one.

A REIF and a REIT are not the same legal structure

A real estate investment trust (REIT) is a joint stock company; its shares trade on the exchange and any investor can buy and sell them. A real estate investment fund (REIF) is not a company but a pool of assets with no separate legal personality, and its participation units are offered only to qualified investors.

Both invest in the same asset class. What separates them is the legal structure through which an investor comes to own a share of those assets.

REIF

A pool of assets with no legal personality
Ownership through participation units
Issued to qualified investors
Unit value calculated from independent valuation

REIT

A joint stock company under capital markets legislation
Ownership through shares
Publicly traded on the exchange
Share price set by supply and demand on the exchange

How does an investor enter each structure?

In a REIT the investor becomes a shareholder in a company. The share is bought and sold on the exchange and its price moves through the day with supply and demand; no qualified investor status is required.

In a REIF the investor buys a unit of a portfolio. Participation units are offered only to qualified investors, on the terms set out in the fund's issuance document, and they change hands under the fund's own rules rather than on an exchange.

Two structures investing in the same asset class ask the investor two different questions: daily liquidity, or a defined portfolio?

How is the value of a unit set?

In a REIT the exchange sets the price. The company's net asset value and its traded share price can diverge; the discount or the premium is the market's view of the company.

In a REIF the unit value is calculated from the portfolio's assets as valued by independent valuation firms. The value comes from the portfolio itself rather than from the market's expectation of it on any given day.

Which structure is built for which investor?

A REIT is built for an investor who wants daily liquidity on the exchange and exposure to real estate in small amounts.

A REIF is for the qualified investor who wants a stake in a particular project or portfolio, within a defined strategy and over a longer horizon. Which of the two fits depends on the investor's horizon, their need for liquidity and their appetite for risk.

Take a closer look at our funds.

Compare the strategies, portfolio structures and current information behind Asrem Portföy's real estate and venture capital funds.

Go to the funds

Which documents should be read before deciding?

Both structures are regulated and both carry public disclosure obligations. The comparison is made in the official documents each of them is required to publish.

Issuance Document
The fund's investment strategy, governing principles and the conditions that apply to investors.
Fund Bulletin
The fund's current portfolio and its developments over the period.
Financial Reports
The reports carrying the fund's periodic financial information.
KAP Disclosures
Official public disclosure announcements relating to the fund.
Investor Centre
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This content has been prepared for general information purposes and does not constitute investment advice. Before making an investment decision, the fund's current official documents and the investor's own circumstances should be assessed.