Fractional Ownership means several investors joined together to pool money to make an investment. The income or gain generated from the investment is in proportion to the investment made by each investor.
Example: 3 investors join together and invest Rs.50,00,000 each to buy a hotel worth Rs.1,50,00,000. When the Hotel was sold for profit, each investor will receive 1/3rd of the profit generated from the sale of the hotel, apart from the capital invested. This implies that each investor held 1/3rd or 33.33% ownership in the Hotel i.e. called a fractional ownership.