REIT, or Real Estate Investment Trust is a liquid, dividend paying means of participating in the real estate market. They can invest in commercial properties, mortgages, or a combination of both. Generally they invest in shopping malls, office complexes, apartments, warehouses, hotels, or even golf courses. Some even specialize in specific types of properties, or geographical locations.

REIT securities pay dividends and offer possibilities of price appreciation experienced by real estate owners. You can buy a REIT just like you buy a stock, or mutual fund. Most of the major mutual fund families offer these funds to their shareholders.

Because mutual funds allow shareholders to reinvest dividends in additional fund shares, this is a good vehicle for investors looking for stable growth. Since they are dividend paying securities, the yield will rise as the share price declines just like a Corporate Bond. So if interest rates continue to rise, they will produce a higher and higher income for investors who need income as the share prices fall.