REITs and InvITs — Earning Passive Income From Real Assets
REITs and InvITs let you own a slice of real estate and infrastructure — and earn regular income — without buying property.
On this page
REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) let you invest in income-generating real estate and infrastructure through units that trade on the exchange — no property purchase required.
How they work
A REIT owns a portfolio of rent-earning commercial properties (offices, malls); an InvIT owns operating infrastructure (roads, power transmission, pipelines). They pool investor money, collect rent or toll/usage income, and are required by SEBI to distribute most of it to unitholders — which is why they appeal to income seekers.
What you earn
- Regular distributions — a mix of dividend, interest and capital return, usually paid quarterly.
- Capital appreciation — the unit price can rise with the value of the underlying assets.
The trade-offs
- Liquidity — units trade on the exchange via your demat account, unlike physical property.
- Lower ticket size — a fraction of buying real estate outright.
- Risks — unit prices fluctuate, income isn’t guaranteed, and they’re sensitive to interest rates (like bonds) and occupancy/usage.
Who they suit
Investors wanting real-asset exposure and regular income as a diversifier — not a replacement for equity growth. Taxation of the different income components varies; check current rules. See what are REITs and InvITs. Education only, not a recommendation.
