By making a small investment in an FII, investors may have easy access to the real estate market through the professional management of a real estate portfolio. However, while FIIs offer benefits such as liquidity, accessibility, asset diversification, and income tax exemption on earnings (if certain conditions are met), they subject investors to certain risks, such as: market risks that affect the value of the real properties; risks related to the cycle of the real estate market and the class of asset itself (vacancy, delinquency, etc.); risks related to fluctuations and liquidity in the secondary market that may affect the value of the shares; among other factors.
Finally, FIIs should be considered as medium-to-long-term investments as they combine the characteristics of both a fixed-income security (recurring distribution of earnings backed by real estate assets) and an equity investment (shares traded in the secondary market).