What are REITs?
REITs, or Real Estate Investment Trusts, are investment vehicles that allow individuals to invest in portfolios of real estate assets. These trusts own or finance income-producing real estate in various property sectors.
What are InvITs?
InvITs, or Infrastructure Investment Trusts, are similar to mutual funds and provide a way for investors to invest in infrastructure projects like roads, highways, and power transmission assets.
How do REITs and InvITs differ from traditional investment avenues?
While traditional investments often involve buying assets directly, REITs and InvITs allow investors to buy units in these trusts, providing exposure to the real estate or infrastructure sector without owning the assets directly.
What are the advantages of investing in REITs and InvITs?
They offer regular income streams, transparency, and potential for capital appreciation. These trusts also provide diversification and the ability to invest in large-scale properties or projects that may be otherwise out of reach for individual investors.
How are REITs and InvITs regulated in India?
The Securities and Exchange Board of India (SEBI) oversees the functioning, regulation, and promotion of REITs and InvITs in India.
Why is the regulatory body focusing on REITs and InvITs?
Given the significant potential of REITs and InvITs in driving the future of infrastructure and real estate, there's a concerted effort to develop their market further.
Is there market interest in REITs and InvITs?
Yes, there has been continuous interest, as indicated by new registrations in recent years.
This FAQ offers a clear overview of REITs and InvITs, helping aspirants understand their nature, benefits, and the recent initiatives surrounding them.