Invest in REITs & InvITs
A Real Estate Investment Trust (REIT) owns commercial real estate like office parks, malls, and warehouses, and collects rent from the businesses that occupy them.
An Infrastructure Investment Trust (InvIT) owns assets like toll roads, power lines, and gas pipelines, and collects usage fees from them. In both cases, most of that income gets paid out to unitholders every quarter.
Both are listed on the stock exchange. Buy units and you own a slice of those assets and the income they produce.
How to invest
Buy on the exchange
Search for the REIT or InvIT by name on Kite and place an order like any stock. You can start with a single unit.
Apply to new IPOs
Browse upcoming REIT and InvIT IPOs on Kite, apply via UPI, and units are credited to your demat account after allotment.
Things to know before investing
Distributions aren't guaranteed
If properties are vacant or infrastructure usage drops, payouts reduce.
Unit prices fluctuate
They move with interest rates and market conditions. You can lose money if you sell during a downturn.
Liquidity varies
Some REITs and InvITs trade infrequently, which can make it harder to exit at your preferred price.
Tax treatment differs from dividends
Distributions are taxed based on how the trust classifies them: as interest, dividend, or return of capital. Capital gains tax applies when you sell units.
Many trusts carry debt
High leverage increases financial risk, especially when income from the underlying assets falls.
FAQs
How do I earn from REITs and InvITs?
You receive regular cash distributions from rent (REITs) or usage fees like tolls and transmission charges (InvITs). You can also earn capital gains if unit prices rise and you sell later.
How is REITs different from buying a real estate stock?
Real estate companies earn from developing and selling property, so you profit mainly through share price appreciation. REITs own completed, income-generating properties and are required to distribute most of that income to you regularly.
What is the minimum investment?
You can start with one unit, which typically costs between Rs. 200 and Rs. 500. For new IPOs, a minimum lot size applies.
How often are distributions paid?
Most REITs and InvITs distribute quarterly, directly to your linked bank account.
Can I trade REITs and InvITs intraday?
Yes. They are listed on the exchanges and can be traded during market hours, subject to liquidity.