Real estate mutual funds invest in publicly-traded companies in the real estate industry, and are slightly different than REITs. A real estate mutual fund invests in companies in the real estate industry.
These companies will include real estate brokerage companies in the commercial, residential, or raw land sector, as well as the lending institutions that are involved in such transactions, among other holdings.
One example of how they are slightly different than REITS, is that REITs offer shares of interest in specific real estate properties held in a trust, and real estate mutual funds offer shares of interest in companies in the real estate industry, which may or may not have an ownership interest in the same sorts of properties held in a REIT.
Some direct REIT exposure is available in REIT funds, which are comprised of several REITs. REITs are known for their high dividend yield, but this may not be the case with a real estate mutual fund.
What's Important to Know About Real Estate Investments?
Should I Have Real Estate Investments?
What Are REITs?