For the first time ever, individuals can invest like the most sucessful institutions by allocating to private market investments.
Learn more about our Modern Portfolio Theory 2.0
Our technology opens up the previously unattainable world of private market investing to you, giving you the opportunity to invest under the same sophisticated portfolio strategy that the largest and most successful professional investors have used to earn higher returns.
|Public market When you invest in the stock market, you or your investment advisor buys shares in an auction environment where prices are heavily bid up. vs||Private market When you invest with Fundrise, you’re investing in private market assets that we purchase through a negotiated sale to keep prices low.|
|Investment Horizon Daily liquidity||Investment Horizon 3 - 7 years|
|Trailing 20 yr. annual return 8.2%||Trailing 20 yr. annual return 12.3%|
Auction liquidity costs you 33% of your return –
whether or not you use it.
We follow a “value investing” strategy, meaning we buy investments for less than what we believe is their intrinsic value (i.e. their replacement cost). This is a strategy that many people now say is virtually impossible to execute in the highly efficient public markets.
Value investing has tended to produce more stable returns over the long term, a strategy to which many of the most famous investors have attributed their success.
Pictured: Elysium 14, a Fundrise asset in Washington, DC
According to numerous sources listed below, a one standard deviation increase in private equity holdings, such as those available on Fundrise, is associated with approximately 4.1% greater returns per year.
Dyck, A. and Pomorski, L. “Investor Scale and Performance in Private Equity Investments.” Oxford Review of Finance 2016, 20 July 2015, pp. 1081-1106; Fundrise White Paper, “Why Private Markets Outperform Traditional Publicly-Traded Stocks & Bonds,” May 16, 2017; Cambridge Associates’ 2016 Q1 US Private Equity Index; and Wall Street Journal, “Calpers Is Sick of Paying Too Much for Private Equity,” April 16, 2017
“The Old Way” is the annualized dividend yield of the Vanguard REIT ETF, which is 3.91% as reported by vanguard.com on May 26, 2017. “The Fundrise Way” is the weighted average of the Q3 2017 daily distributions of each of the eDirect investments in the Fundrise “Supplemental Income” portfolio.