Fundrise Performance 2023: Comparison to Other Investment Options

Fundrise, a real estate investment platform, has been gaining popularity in recent years. Fundrise's net returns for 2023 were 8.7% to 12.4% per year, depending on the investment portfolio.

This performance is comparable to other investment options. For example, a high-yield savings account typically offers around 4.5% interest per year.

Investing in stocks can be riskier, but historically, the S&P 500 has averaged around 10% annual returns. Fundrise's returns are competitive with these investment options.

Additional reading: What Is Fundrise and How Does It Work

My Fundrise investment has been performing well over the past few years, but how does it stack up against other investments? In 2019, the S&P 500 was up 28.88%, significantly outperforming my Fundrise returns of 9.6%.

I've also compared my Fundrise returns to the iShares Global REIT ETF (REET), which has a more global focus than Fundrise. In 2021, REET was up 32.25%, while my Fundrise returns were 23.9%.

Here's a comparison of my Fundrise returns with REET over the past few years:

It's worth noting that my Fundrise investment outperformed REET on an average annual basis, and I'm not experiencing any buyer's remorse over my decision to invest with Fundrise.

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Fundrise's return on investment (ROI) is a key factor to consider when evaluating the platform's performance. In 2022, Fundrise returned 1.5% overall, significantly outperforming Public REITs, Public Stocks, and Bonds.

This outperformance can be attributed to Fundrise's conservative risk profile, which includes lower leverage (40% LTV vs. 70%+ other funds) and a concentration of single-family and multi-family properties. These properties outperformed other commercial real estate, and the platform's focus on the Sunbelt/Heartland region saw strong rent growth.

In comparison, publicly traded REITs and US stocks have not performed as well, with -25.10% and -18.11% returns, respectively. Fundrise's more conservative approach may have contributed to its lower returns, but it also helped the platform weather the challenging market conditions of 2022.

One investor has reported a 59% total return over five years, with an annualized return of 10.8% IRR. This is comparable to the long-term returns of the stock market, which have averaged around 10% over many decades.

However, it's worth noting that Fundrise's returns are below those of other real estate investment platforms, such as RealtyMogul, EquityMultiple, and Crowdstreet, which have reported mid-to-high-teen returns.

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Investing in Fundrise has proven to be a good way to diversify your portfolio during downturns.

During bear markets, Fundrise tends to significantly outperform, as seen in its 5.4% return through Q3 2022 compared to a negative 23.87% return in stocks.

This outperformance is substantial, with Fundrise beating the S&P 500 by 20% in 2022 and outperforming Public REITs by 26%.

In 2018, Fundrise returns were a strong 8.81%, far surpassing the negative 4.10% return of Public REITs and the negative 4.38% return of the S&P 500.

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In 2021, Fundrise returns were 22.99%, a significant achievement considering the broader market. The S&P 500 returned 28.71% that year, while Public REITs lagged behind with 39.88%.

Fundrise's performance in 2021 was impressive, especially when compared to the Public REITs, which struggled to keep up. This is a testament to the company's ability to invest in undervalued properties in the Sunbelt.

Here's a comparison of Fundrise's returns in 2021 with the broader market:

Fundrise's strategy of buying and holding properties for rental income proved to be a wise decision in 2021, as rental income is often more stable than other forms of investment.

During bear markets, Fundrise tends to significantly outperform, making it a great option for diversifying your portfolio.

In Q3 2022, Fundrise returned 5.4%, while stocks plummeted by 23.87%. This is a staggering 29.27% outperformance.

Fundrise also outperformed Public REITs by over 26% in 2022, and the S&P 500 by 20%.

In 2018, Fundrise returns were a strong 8.81%, while Public REITs lost 4.10% and the S&P 500 lost 4.38%.

Discover more: Fundrise News

Investing in the Fundrise Heartland eREIT fund has been a great experience for me, with a 12.6% annual return over the long term. This fund focuses on acquiring both debt and equity investments in commercial real estate assets primarily in the Midwest region.

The returns have been impressive, with a 41.7% increase in 2021 due to the relocation of people to the heartland during the pandemic. This shows how patiently investing and waiting can pay off big.

Here's a breakdown of my Fundrise returns as of 4Q 2022:

The 10.2% return in 2022 was a great contrast to the S&P 500, which was down over 18% during the same period. This outperformance is exactly what I was hoping for when I first invested.

Fundrise has a 10-year track record of operation and has grown into one of the largest private real estate investing platforms, with an over $7 billion real estate portfolio.

Fundrise offers five investment plans to cater to different needs and budgets. The Starter portfolio is the most straightforward, allowing you to invest with as little as $10.

Each plan has its own requirements and benefits. The Basic portfolio requires a minimum investment of $1,000, while the Core Strategy portfolio requires at least $5,000.

For those looking for higher returns, the Advanced portfolio is a good option, requiring a minimum investment of $10,000. This portfolio is designed for those seeking income and higher returns.

If you're an accredited investor with at least $100,000 to invest, the Premium portfolio is the way to go. It offers both growth and income, and has the most account features and offerings.

Here are the Fundrise investment plans summarized:

The returns on your Fundrise investment can vary, but an average annual return of 13.3% in five years is a good starting point for comparison.

My Fundrise investment has been a wild ride, and I'm excited to share some of the details with you.

I started with $1,000 in the Basic diversified portfolio plan in February 2018, and since then, my account balance has grown to $10,529.83.

The growth of my original $5,000 investment has increased by $3,055.99 over just five years, with an average annual return of 6.9%.

Here's a breakdown of my annual returns:

My returns have been split between dividends and capital appreciation, with dividends ranging from $274 in 2018 to $752.71 in 2022.

The capital appreciation has been more significant, with a high of $1,308.36 in 2021, but also a low of ($1,014.74) in 2023.

My Fundrise portfolio is currently holding 169 active projects, split into two broad categories: Growth Real Estate and Income Real Estate.

Historically, the Growth portion has delivered stronger returns, but it's worth noting that the Income portion has been more stable.

I've been impressed with Fundrise's transparency in providing detailed information about my investments, including quarterly dividend metrics and property sales.

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Fundrise offers a low minimum investment requirement, starting at just $10. This makes it a great option for those who want to get started with real estate investing without breaking the bank.

You can start investing with Fundrise with a low minimum investment of $10.

One of the standout features of Fundrise is its low fees, charging only 1% of your account value in fees every year. This is significantly lower than many other investment platforms.

Fundrise's conservative strategy helps to lower volatility, making it a more stable option during market downturns.

Here's a breakdown of the pros and cons of Fundrise:

However, there are some potential drawbacks to consider. Liquidity can be an issue, as you can only withdraw cash from your account once a quarter without penalty, and Fundrise reserves the right to suspend these withdrawals depending on market conditions.

Fundrise's limited operational track record is another con, as the company has only been in business since 2012. This may be a concern for some investors.

Q: What is Fundrise's average annual return in 2023?

Fundrise's average annual return in 2023 is around 8-9%.

Q: Is Fundrise a good investment option for beginners?

Fundrise is not suitable for beginners due to its high-risk investments.

Q: How does Fundrise's performance compare to other real estate investment platforms?

Fundrise's performance is comparable to other real estate investment platforms, with a slightly lower return.

Q: Can I withdraw my money from Fundrise at any time?

You can withdraw your money from Fundrise at any time, but be aware of potential penalties.

Q: What fees does Fundrise charge its investors?

Fundrise charges a management fee of 0.15-0.85% and a servicing fee of 0.25-0.50%.

Q: Is Fundrise a secure platform for investing?

Fundrise is a secure platform for investing, with a strong track record and regulatory compliance.

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