Real estate funds, as indicated by their name, are special shares funds investing in good-quality real estate, either directly or via real estate companies. Minority parts of their portfolios are also invested in bond instruments and money market instruments ensuring the fund liquidity. Investors have the opportunity to use advantages resulting from the ownership of good-quality real estate without being liable personally for obligations arising out of the operation of the real estate. They participate in various segments of the real estate market – offices, shopping centres, logistic complexes, residential real estate, hotels, etc. – with various development cycles and thus with the possibility to optimize the total yield by choosing correct investment strategy. In combination with the growth of the real estate value, they can achieve attractive yield, comparable with more risky types of investment, in particular in the long-term horizon time. Real estate funds are best for investors who do not want to or cannot own real estate directly. The funds are classified into the category of the so-called alternative investments. As the yields of real estate funds do not depend on the development of stock and bond markets directly, they should be used as a supplement to the investment portfolio with a view to the increase of the yield potential and distribution of market risks.