Closed-end mutual real estate funds compare favorably with other funds thanks to the possibility to conduct investment and rental activities and a wide range of possible transactions in the real estate market. Compared to foreign practices, Russian real estate funds are not widespread. The study identifies key advantages and disadvantages of investing in real estate through real estate funds, reviews funds’ functional problems and state of the regional real estate fund market in the Republic of Tatarstan. The findings can be used to develop an investment strategy for both institutional and individual investors.