Mutual fund schemes offer a portfolio of investments to investors. So far, mutual funds have offered equity, debt, gold, international equity and even commodity investing to investors. manulife-and-pgim-are-launching-reit-fund-of-funds-should-you-invest-7502131.html">Now, mutual funds are starting to offer a new asset class -- real-estate.

Mutual funds will be investing in an international fund, which in turn will hold a portfolio of real estate investment trusts (REITs). REITs like mutual funds hold a portfolio of investments, but in this case rent-paying real estate. REITs also benefit from any capital appreciation of their real estate investments.

But, keep in mind that any sector-specific or theme-based investing does come with its own set of risks.

In an interaction with Moneycontrol’s Jash Kriplani, Ashutosh Bishnoi, managing director and chief executive officer of Mahindra Manulife Mutual Fund, explains how mutual fund REITs will work and how they will be different from existing REIT products. The new fund offer of Mahindra Manulife Asia Pacific REITs FoF has opened on September 28, 2021.