Real estate investment trusts (REITs) are a major consideration for any fixed income portfolio and offer a wide diversification and higher returns. There are many types of REITs available but we will have a look here at some of them. Approximately 24% of REIT investments are in shopping malls and freestanding retail. This represents the single biggest investment by type in America and is known as Retail REITs. REITs that own and operate multi-family rental apartment buildings as well as manufactured housing or the residential REITs are mostly urban centered. Healthcare REITs invest in the real estate of hospitals, medical centers, nursing facilities and retirement homes. The success of this real estate is directly tied to the healthcare system. Office REITs invest in office buildings and they receive rental income from tenants who have usually signed long-term leases. Approximately 10% of REIT investments are in mortgages. Here investing in mortgages instead of equity does not imply that they are risk free. The bottom line is REITs, like every other investment in 2008, suffered greatly. But despite this, they continue to be an excellent addition to any diversified portfolio. Read more at: : http://www.investopedia.com/articles/mortgages-real-estate/10/real-estate-investment-trust-reit.asp