Product Overview
Real Estate Investment Trusts (REITs) and Infrastructure Investment
Trusts (InvITs) are innovative investment vehicles that allow individuals to invest in
income-generating real estate and infrastructure assets without directly purchasing
property. By pooling funds from multiple investors, REITs and InvITs provide access to
high-quality assets, such as commercial properties and infrastructure projects, with a
potential for stable returns and regular income.
How They Work
REITs and InvITs operate similarly to mutual funds, pooling investor
capital to acquire and manage a portfolio of real estate or infrastructure assets:
REITs: Primarily invest in income-producing real estate assets,
including office spaces, retail malls, and commercial buildings. Revenue is
generated through rental income, which is distributed to investors as dividends.
InvITs: Focus on infrastructure assets, such as toll roads, power
transmission lines, and renewable energy projects. Earnings come from fees, tariffs,
or other income generated by these assets, which are then passed on to investors.
Both REITs and InvITs are listed on stock exchanges, providing
liquidity and ease of access for investors who wish to buy or sell their units.
How Investors Earn Money
Investors in REITs and InvITs earn returns through two main
sources:
Regular Income: REITs and InvITs are required to distribute a
significant portion of their income to unit holders, ensuring steady income from
rental or usage fees.
Capital Appreciation: Over time, the value of the underlying assets
may appreciate, leading to potential capital gains if the units are sold at a higher
price than the purchase price.
Both REITs and InvITs are listed on stock exchanges, providing
liquidity and ease of access for investors who wish to buy or sell their units.
Risk Involved
Like all investments, REITs and InvITs carry certain risks:
Market Risk: Changes in property or infrastructure market
conditions can impact REIT and InvIT values.
Interest Rate Risk: Rising interest rates can affect asset
valuations and investor demand, potentially impacting returns.
Occupancy and Usage Risk: For REITs, lower occupancy rates or
vacancies can reduce income; for InvITs, decreased usage or operational
inefficiencies can affect revenue.
Returns Delivered in the Past
Historically, REITs and InvITs have provided returns in the range of X%
to Y% per annum, depending on asset type, market conditions, and overall economic
environment. They are generally seen as a stable investment option, with returns
primarily derived from consistent income distributions rather than speculative
gains.
Why Should Customers Invest in This Product?
Need for Infrastructure and Real Estate Investment: With growing
urbanization and the need for infrastructure development, REITs and InvITs offer a
convenient way to invest in these essential sectors.
Regular Income Potential: Both REITs and InvITs provide regular
distributions, making them attractive for investors seeking steady cash flow.
Portfolio Diversification: REITs and InvITs add diversity to
portfolios, reducing reliance on traditional equity and debt investments.
Affordable Access: Investors can gain exposure to high-quality
assets without the high capital requirements of direct real estate or infrastructure
investment.
Why Choose Swadeshi Money?
Access to Quality REITs and InvITs: Swadeshi Money provides a wide
selection of trusted REITs and InvITs, enabling clients to invest in well-managed
real estate and infrastructure assets.
Distribution Expertise: With Swadeshi Money’s experience in
investment distribution, clients can confidently access REITs and InvITs without the
need for extensive research or management.
Transparency and Convenience: We prioritize clear, transparent
investment processes, offering clients valuable insights and simplified access to
high-quality REIT and InvIT products.
