NSE launches India’s first REITs and InvITs index
Investing in real estate or infrastructure companies is seen as a good option for investment. It is believed that in such companies the risk is less and its returns are also good. But investing in such companies requires a lot of money, due to which many investors were not able to invest their money directly in such companies, but now by expanding it, investors are also being given this benefit.
NSE Indices Limited, a branch of the National Stock Exchange (NSE), on Tuesday launched the country’s first real estate investment trust (REIT) and infrastructure investment trust (InvIT) index. It is an investment vehicle that gives ownership of a revenue generating real estate or infrastructure asset.
Mukesh Agarwal, CEO, NSE Indices, said the objective of the index is to track the performance of REITs and InvITs that are publicly listed and traded on the NSE. REITs and InvITs are recognized as strong alternative financial instruments for raising funds against cash-generating infrastructure and real estate projects.
How do these indexes work?
REITs invest in real estate projects, while InvITs invest in infrastructure projects with a longer duration. Through these trusts, investors are given in the form of dividend on the basis of units purchased, which also gives good returns. The Nifty REITs and InvITs Index has a base value of 1,000 and is reviewed on a quarterly basis.
