I developed my views around asset allocation through years working with pension funds.
A typical pension fund will allocate up to 10% of assets to real estate - direct ownership of properties or owning a fund that owns properties. I've replicated this approach by allocating five percent of my liquid assets in a real estate fund through my 401k. However, I've started to wonder if this still makes sense, as an individual.
I own my home with a paid-off mortgage. It represents about 30% of my net worth, so I have real estate exposure. I own US stock index funds. About 3% of the S&P 500 is invested in real estate through REITs.
Given my exposure to real estate through home ownership and equity market ownership, does it still make sense to allocate a portion of my investments to a real-estate only fund?