Yes, REITs can be a valuable addition to your portfolio. And yes, over the past two years, REITs have done well compared to stocks. But take this important investing rule to heart: past performance does not necessarily predict future performance. Just because REITs did well in the past is no guarantee they will continue to do so in the future. Remember also that we are talking about the stock, REIT, and property markets as a whole—not individual companies or properties.

The lesson here is not to get excited based on short-term price data and make investing decisions you may regret. Instead, you must also understand the risks involved with every investment, as well as have an analytical framework for making good decisions.

That’s exactly what Part 2 of this guide will do.

Additional Resources

Bursa Malaysia’s REIT FAQs