Sage-Tips

Which is better Invit or REIT?

If we compare the stability and revenue generation, REITs are more stable since 80\% of their assets are invested in income-generating assets with rental contracts that ensure a steady income. On the other hand, the cash flows of InvITs depend on a lot of factors that can affect their capacity utilization.

Is REITs a good investment in India?

REITs are ideal for investors who want a steady income with minimum risks. Moreover, investors can earn two types of income from REITs – one through capital gains post the sale of REIT units, and the other via dividend income.

What is the difference between Invit and REIT?

REITs are better insulated from regulatory/ political risks. REITs hold land and buildings with on a freehold basis or on lease from a government authority. InvITs comprise of concessions where the projects are returned to the authority or are rebid post the concession period.

How many InvITs are there in India?

There are currently 15 SEBI-registered InvITs in India and the first two publicly-listed ones were India Grid Trust and IRB InvIT Fund. In May 2021, the Powergrid Infrastructure Investment Trust completed its public listing becoming the third publicly-listed InvIT in India.

Are InvITs a good investment?

“In addition to portfolio diversification, InvITs can provide regular income to investors with some visibility on the indicative cash flows. Returns are in 8-10\% range, and are currently yielding higher than traditional fixed income products,” said Satheesh Krishnamurthy, head – private Banking, Axis Bank.

How much should I invest in REIT in India?

Eligibility of REITs 80\% of the investment must be made in properties that are capable of generating revenues. Only 10\% of the total investment must be made in real estate under-construction properties. The company must have an asset base of at least Rs 500 crores.

How many InvITs are listed in India?

There are currently 15 SEBI-registered InvITs in India and the first two publicly-listed ones were India Grid Trust and IRB InvIT Fund.

Which is the best InvITs in India?

Powergrid InvIT, India Grid Trust and IRB InvIT Fund are the three publicly listed InvITs open to retail investors. Powergrid InvIT (listed in May 2021) has been sponsored by the state-owned Power Grid Corp of India, the country’s dominant power transmission company.

Is Powergrid InvIT dividend tax free?

Powergrid InvIT, India Grid Trust and IRB InvIT Fund are the three publicly listed InvITs open to retail investors. In the June 2021 quarter, they distributed ₹5.64, ₹4.60 and ₹6 per unit, respectively of which 80 per cent, 92 per cent and 24 per cent was tax-free in the hands of the investors.

What is REIT Invit?

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) now constitute a new asset class available for investors, allowing investors to invest in completed real estate and infrastructure assets with a low ticket size and adequate liquidity.

Are REITs a good investment option in India?

India saw its first REIT (Real Estate Investment Trust) in 2019. Two years later there are now three (Mindspace REIT, Brookfield REIT, and Embassy REIT). REITs as an investment option have gained significant popularity among institutions & retail investors.

Are REITs the future of India’s office space?

India saw its first REIT (Real Estate Investment Trust) in 2019. Two years later there are now three (Mindspace REIT, Brookfield REIT, and Embassy REIT). REITs as an investment option have gained significant popularity among institutions & retail investors. This is in spite of the cloud over future growth of office spaces.

What are REITS and infrastructure investment trusts (invits)?

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) were introduced in the US during the 1960s and given a nod to be launched in India by the Securities and Exchange Board of India (SEBI) in 2014.

What is the difference between mortgage REIT and invit?

The income generated from the property is then distributed as dividends to the investors. With mortgage REITs, you will be investing in mortgages taken against commercial properties. Investors earn through the EMIs paid by the borrower. As for InvITs, they are also of two types- completed projects and under-construction projects.