How to Build a Diversified Portfolio with Fractional Real Estate Investing in India | PropFTX
Real Estate Investing is No Longer Just for the Wealthy In the past, real estate investing was considered a game for the wealthy. Buying a full apartment or commercial space required significant capital, legal processes, and time. But not anymore. With fractional real estate, you can start investing in premium properties with a much lower entry point. And with platforms like PropFTX, investors today can diversify their real estate holdings just like a stock portfolio—smartly, strategically, and affordably. This article explains how you can build a well-balanced, diversified real estate portfolio using fractional ownership through PropFTX. What is Fractional Real Estate? Fractional real estate investing means multiple investors co-own a high-value property by investing small amounts. Each investor owns a fraction of the asset, proportionate to their investment. For example, if a ₹10 crore property is split into 100 equal shares of ₹10 lakh each, investors can participate by purchasing any number of shares based on their budget. Through , investors get access to: Grade-A commercial and residential assets Legally structured SPVs (Special Purpose Vehicles) Digital ownership and rental income tracking Transparent exit and resale options Why Diversify Your Real Estate ? Diversification is not just a stock market concept—it works beautifully in real estate too. Instead of investing your entire capital in one property, you spread your funds across various property types, locations, and risk profiles. Benefits include: Reduced risk from market fluctuations Multiple income streams (rent + appreciation) Flexibility and liquidity Increased exposure to high-growth areas How to Build a Diversified Portfolio? Spread Across Locations Real estate is highly location-dependent. Properties in high-demand metro cities and emerging growth corridors, allowing investors to spread geographical risk. Suggested Mix :- Metro: Mumbai, Bangalore, Hyderabad Tier-2: Pune, Kochi, Jaipur Tourist: Goa, Rishikesh Balance Rental Income vs Growth Asset :- Core Assets: Fully leased properties offering regular rental income. Growth Assets: Properties in developing areas that can deliver higher appreciation. Example via PropFTX :- A pre-leased office in Bangalore (rental focus) A residential plot in Pune near a new highway (growth focus) Invest in Varied Ticket Sizes :- Fractional ownership starting as low as ₹25,000, which helps you: Start small and learn Spread capital across 3–5 different assets Maintain liquidity while growing your portfolio Choose a Trusted Platform :- When it comes to fractional real estate, the platform ensures: End-to-end due diligence SPV-based legal ownership Monthly updates and dashboards Investor-first approach and exit options Sample Diversified Portfolio (₹5 Lakh Investment) Fractional real estate investing has changed the game for retail investors. You no longer need to block large sums or manage entire properties yourself. With platforms like PropFTX, you can build a professionally managed, diversified real estate portfolio with ease. Whether you want monthly income, long-term growth, or exposure to different cities, PropFTX allows you to build a tailored strategy that suits your financial goals. So why wait? Start small, think big, and let your money work across multiple properties—all through PropFTX. Subscribe to our Blog for the Latest News on how best to optimise not just your time, but investments too. Check out our previous blogs. Click here
Fractional Real Estate and Tax Efficiency: Maximizing Returns and Minimizing Liabilities
In the whirlwind world of real estate investment, one thing reigns supreme: ‘Tax Efficiency’. In the Indian market, where every penny counts and regulations shift like sands in the wind, understanding the nuances of tax efficiency is crucial. Enter fractional real estate investing, an innovative instrument reshaping the investment landscape and emphasizing tax optimization. If you have a substantial amount of cash burning a hole in your pocket and are eyeing prime property in metro cities like Mumbai or Bengaluru, hold your horses! Before diving headfirst into the real estate abyss, let’s talk about tax efficiency. In a country like India, where tax laws can be as complex as a Rubik’s Cube, savvy investors always seek strategies to maximize returns while minimizing liabilities. So, what exactly is fractional real estate? Simply put, it’s like owning a slice of the pie without swallowing the whole thing. Instead of shelling out a hefty sum to buy an entire property, investors can pool their resources and purchase fractions of high-value assets. Think of it as the real estate version of a timeshare, but without the tacky sales pitch. Now, why should you care about tax efficiency? In India, property taxes, capital gains taxes, and stamp duties can eat into your profits faster than you can say “ROI.” But fear not, fractional real estate offers a lifeline in the form of tax optimization strategies. Recent laws and regulations have bolstered the appeal of fractional real estate in India. For example, the introduction of Real Estate Investment Trusts (REITs) in 2019 allows individuals to invest in income-generating real estate assets without the hassle of property management. The best part? REITs offer favourable tax treatment, making them a darling among tax-conscious investors. But wait, there’s more! In 2023, the government rolled out the red carpet for Real Estate Mutual Funds (REMFs), providing yet another avenue for investors to explore fractional real estate. With REMFs, investors can enjoy the benefits of diversification and professional management, all while reaping the rewards of tax-efficient investing. Still not convinced? Let’s hear from the experts. According to tax attorney Ramesh Gupta, “Fractional real estate has emerged as a game-changer for investors looking to optimize their tax liabilities. By spreading their investments across multiple properties, investors can mitigate risk and enjoy tax benefits that were once reserved for the elite.” But enough talk, let’s crunch some numbers. Recent data from the National Real Estate Development Council (NAREDCO) shows exponential growth in the market for fractional real estate in India, with annual returns averaging around 12% to 15%. With tax-efficient investment vehicles like REITs and REMFs, experts predict these figures will only continue to climb. Still sceptical? Consider this real-life example. Meet Priya, a savvy investor from Chennai who recently ventured into fractional real estate. Instead of sinking her savings into a single property, Priya invested in a REIT specializing in commercial real estate. She enjoyed steady rental income and benefited from tax advantages that maximized her returns while minimizing her liabilities. With the rise of fractional real estate and tax-efficient investment vehicles like REITs and REMFs, investors have more tools at their disposal than ever before. If you’re ready to take your investment portfolio to the next level, embrace the power of fractional real estate and unlock the full potential of tax optimization. What are you waiting for? Happy investing! Subscribe to our Blog for the Latest News on how best to optimise not just your time, but investments too. About the Author: Avanne Dubash, Consultant Anchor at ET NOW, holds over 15+ years of experience as a Prime Time Business News Anchor with ET Now. Renowned for hosting major events like The India Economic Conclave, she conducts insightful interviews with top market voices on ‘The Market & First Trades’ and engages with industry leaders on ‘Startup Central,’ alongside contributing her perspectives across various platforms.