REITs & InvITs

Own a Share of Income-Generating Real Estate and Infrastructure

Listed trusts that hold offices, malls, power lines and roads, and pass most of their cash flow to unitholders. Units trade on the exchange like shares.

At a Glance

Risk level

Moderate to High

LowVery High

Minimum investment

One trading lot on the exchange — small for most listed trusts; check the current lot and unit price

Tenure / liquidity

No lock-in for units bought on the exchange; trusts are perpetual or long-dated. A medium- to long-term horizon is generally suggested.

Who it's for

Investors seeking periodic income alongside some growth potential
Those wanting real estate or infrastructure exposure without buying property
Investors with a demat account and a medium- to long-term horizon
Portfolios looking to diversify beyond equity and fixed income

Key features

SEBI-regulated trusts listed on NSE / BSE
Required to distribute most of their net distributable cash flows
Distributions can include interest, dividend and repayment of debt components
Professionally managed portfolios of completed, income-generating assets

Taxation snapshot

Interest component of distributions: taxed at your slab rate
Dividend component: taxable or exempt depending on the SPV's tax regime
Repayment of debt component: generally not taxed on receipt, but may reduce your cost of acquisition under current rules
Units: STCG (held up to 12 months) 20%; LTCG (over 12 months) 12.5% on gains above ₹1.25 lakh a year

Tax treatment as per current law and subject to change; please consult a qualified Chartered Accountant before investing.

How They Work

How REITs and InvITs Work

Both are trusts regulated by SEBI. You buy units, the trust owns the assets through special purpose vehicles (SPVs), and cash flow is passed on to you.

Units

A REIT or InvIT issues units, much like a company issues shares. Each unit represents a proportionate interest in the trust's assets. Units are listed on NSE / BSE and held in your demat account.

Listed and traded on the exchange
Held in demat form
Trust owns assets through SPVs

Distributions

Trusts are required to distribute most of their net distributable cash flows to unitholders, usually every quarter. A distribution may be made up of interest, dividend and repayment of debt (and sometimes other income), and each component is taxed differently.

Usually quarterly
Interest, dividend and repayment-of-debt components
Amount varies and is not guaranteed

NAV vs Market Price

The trust periodically publishes a Net Asset Value (NAV) based on independent valuation of its assets. Units trade at a market price set by buyers and sellers, which can be above or below NAV.

NAV based on independent valuation
Market price can differ from NAV
Unit prices move with rates, sentiment and asset performance

Know the Difference

REIT vs InvIT

Aspect	REIT	InvIT
Underlying assets	Income-generating real estate — offices, malls, business parks	Infrastructure — power transmission, roads, pipelines, telecom towers
Income source	Rent from tenants under leases	Tariffs, tolls, annuities or usage charges
Regulation	SEBI (Real Estate Investment Trusts) Regulations, 2014	SEBI (Infrastructure Investment Trusts) Regulations, 2014
Key drivers	Occupancy, rental rates, lease renewals	Traffic, tariffs, regulatory terms, availability
Asset life	Buildings with long economic life	Some assets run on concessions with a defined end date
Key risks	Vacancy, tenant concentration, interest rates	Regulatory and concession risk, traffic risk, interest rates

Listed Trusts

Listed REITs and InvITs

A selection of well-known listed trusts to illustrate the range of underlying assets.

Name	Type	Underlying Assets	Distribution Yield
Embassy Office Parks REIT	REIT	Office	See latest
Mindspace Business Parks REIT	REIT	Office	See latest
Brookfield India Real Estate Trust	REIT	Office	See latest
Nexus Select Trust	REIT	Retail malls	See latest
India Grid Trust (IndiGrid)	InvIT	Power transmission	See latest
PowerGrid Infrastructure Investment Trust	InvIT	Power transmission	See latest
IRB InvIT Fund	InvIT	Roads	See latest

Distribution yields change with unit prices and payouts — we share current figures on request. List is indicative, not a recommendation.

How to Buy

Buying REIT and InvIT Units

Demat & Trading Account

Units are held in demat form, so you need a demat and trading account with a SEBI-registered broker.

Buy on the Exchange

Listed units trade on NSE / BSE during market hours. Trading lots are now small for most listed trusts — check the current lot and price.

Receive Distributions

Distributions are credited to your bank account linked to the demat. The trust's statement shows the split between interest, dividend and repayment of debt.

Key Risks

Risks to Understand Before Investing in REITs and InvITs

REITs and InvITs are market-linked. Unit prices and distributions depend on the performance of the underlying assets, interest rates and market sentiment.

Distributions can fall or be paused if occupancy, tariffs, tolls or collections decline.
Rising interest rates can weigh on unit prices.
Trading volumes in some units can be thin, which may affect the price you get.
InvIT assets on concessions may have a finite life, which affects long-term value.
Read the offer document, annual report and latest investor presentation of the trust.

How to Invest

1
Understand the Trust
We explain the trust's assets, distribution history and key risks, using its offer document and investor disclosures.
2
Set Up Your Account
Use your existing demat and trading account, or open one with a SEBI-registered broker.
3
Buy & Track
Buy units on the exchange, then track distributions and the component-wise tax statement each quarter.

Have questions about REITs and InvITs?

Speak to our team — no obligation. We'll explain the options, risks and costs.

Talk to an Advisor WhatsApp +91 93809 44718

FAQs

Common Questions About REITs and InvITs

Are REIT and InvIT distributions fixed?

No. Distributions depend on the cash flows of the underlying assets and can go up, down or be paused. Past distributions do not indicate future payouts.

How is a REIT different from buying property?

A REIT gives you a share of a professionally managed portfolio of completed, income-generating properties, with small ticket sizes and exchange liquidity. You do not own a specific property and you bear market price risk on the units.

Why is the distribution split into interest, dividend and repayment of debt?

Trusts hold assets through SPVs and receive cash from them in different forms. Each component is passed on to you and is taxed differently under current law, which is why the trust reports the split every quarter.

Can I sell units anytime?

Listed units can be sold on the exchange during market hours if there is a buyer. Prices and volumes vary, so you may receive more or less than you paid.

Disclaimer: Unit prices fluctuate. Distributions are not guaranteed. Read the trust's offer document and latest disclosures before investing; the list of trusts on this page is illustrative and not a recommendation.

WealthBay Private Limited — AMFI-registered Mutual Fund Distributor, ARN-29566. WealthBay acts as a distributor of third-party financial products and earns commissions from product providers. Please read all scheme / offer documents carefully before investing.