Experts call the strategy “asset allocation”. It means spreading your investments as widely as possible and not investing in just one asset class. Real estate and/or real estate funds belong in any well-structured securities account.

With a KanAm Grund open-ended real estate fund, you are adding stability to your securities account. These funds act as an ideal counterweight to more speculative investments such as equities.

The chart below from the recent study conducted on behalf of BVI Bundesverband Investment und Asset Management e.V. by the Lehrstuhl für Empirische Kapitalmarktforschung (Department of Empirical Capital Market Research) at WHU – Otto Beisheim School of Management and the Institut für Kapitalmarktforschung und Finanzierung (Institute of Capital Market Research and Finance) at Ludwig-Maximilians University in Munich indicates that whereas stock markets often suffered losses of over 20% in times of crisis, open-ended real estate funds were in fact able to generate a positive investment performance during these periods.

The performance of open-ended real estate funds remained steady and stable without the volatility and strong price fluctuations typical of stocks.