Professional investors - fund managers - collect money to then invest in several different properties. Thanks to their experience, fund managers can often generate high returns. When investing, investors have the choice between open and closed funds.
Open-ended real estate funds have many properties in their portfolio. Mostly, they have an unlimited investment volume. Thus, the fund's assets continue to grow as new investors add money. You can also sell shares at any time.
However, with closed-end real estate funds, the volume is limited. Once all shares have been sold, they are closed. You must then keep your own fund shares until the end of the term. Closed-end funds are also often invested in only one or two properties.