Types of FII and key metrics
Fund-of-funds, hybrid and development funds
3 min
Beyond pure brick and pure paper, three more categories round out the FII universe.
Fundos de fundos (FoF)
A FoF invests in other FIIs rather than directly in property or credit. Buying one cota gives you a ready-made, diversified basket managed by a professional who rotates between funds and tries to buy cotas trading at a discount.
- Strength — instant diversification and active allocation in a single ticker.
- Weakness — a double layer of fees (the FoF's fee plus the fees of the funds it owns).
Híbridos (hybrid)
A hybrid fund mixes strategies — for example holding both physical properties and CRIs. The aim is to balance the steady rent of brick with the rate-sensitive income of paper. The trade-off is that its behavior is harder to characterize; read the mandate to know what you actually own.
Desenvolvimento (development)
A development fund finances or builds real estate from the ground up, aiming to profit when projects are completed and sold or leased.
- Strength — higher potential return.
- Weakness — higher risk and often lumpier, less predictable income while projects are under construction. Less suited to an investor who needs steady monthly cash flow.
Knowing which bucket a fund falls into tells you, before any metric, what kind of risk and income to expect.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.