REITs are classified according to how they invest their money including
A)equity REITs.
B)mortgage REITs.
C)mutual fund REITs.
D)Both A and B.

Question

Quizplus · Accepted Answer

REITs are generally classified into two categories based on how they invest their money: Equity REITs and Mortgage REITs. Equity REITs invest mainly in income-producing real estate properties and generate returns through the rent collected from tenants, while Mortgage REITs invest in real estate-related debt instruments such as mortgages, loan portfolios, and other real estate-backed securities. Mutual fund REITs are not a common classification for REITs as they do not exist as a separate type, but some mutual funds do invest in REITs. Therefore, the correct choice is D, as both Equity REITs and Mortgage REITs are common types of REITs.

REITs Are Classified According to How They Invest Their Money