REITs and InvITs, explained
A REIT (Real Estate Investment Trust) owns income-generating commercial property — offices, malls — and passes most of the rent to unitholders. An InvIT does the same for operating infrastructure like roads and power transmission.
How they work
Both are listed on the exchange and trade like a stock, held in your demat account. They are required to distribute most of their net cash flow to unitholders regularly, which is why they’re valued for income.
How to invest
On ROAR you can buy REIT and InvIT units like any share — search the name, place a delivery order at ₹0 brokerage, and the units sit in your demat. They offer a low-ticket way to add real-estate and infrastructure exposure to a diversified portfolio.
Risks to know
Unit prices move with the market and with interest rates (higher rates can pressure them), and income can vary with occupancy or asset performance. They are market-linked, not fixed-income — read the offer documents.
Frequently asked questions
How do REITs make money for investors?
Mainly through regular income distributions from rent, plus potential capital appreciation if the unit price rises.
Do I need a demat account for REITs and InvITs?
Yes. REIT and InvIT units are held in demat and trade on the exchange like shares. ROAR opens a free demat account.
Are REITs and InvITs safe?
They are market-linked investments — prices and income can fluctuate with markets, interest rates and the underlying assets. They are not guaranteed like a fixed deposit.
What is the difference between a REIT and an InvIT?
A REIT owns income-generating real estate (offices, malls); an InvIT owns operating infrastructure (roads, power lines). Both distribute most of their cash flow to unitholders.