REITs And InvITs Index:
NSE Indices Ltd, a subsidiary of the National Stock Exchange (NSE), launched India’s first-ever Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) Index
- The new index aims to track the performance of REITs and InvITs that are publicly listed and traded on the NSE.
- The index will be reviewed and rebalanced every quarter.
- The weights of securities within the index are based on their free-float market capitalization, subject to a security cap of 33% each and the aggregate weight of top-3 securities is capped at 72%.
- The top constituents of the Nifty Reits & InvITs index include Embassy Office Parks Reit, Powergrid Infrastructure Investment etc.
- It is a company that owns, operates, or finances income-generating real estate.
- Most of them are publicly traded like stocks, which makes them highly liquid (unlike physical real estate investments).
- It is modelled after mutual funds; REITs pool the capital of numerous investors.
- This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves.
- These are mutual fund-like institutions that enable investments into the infrastructure sector by pooling small sums of money from a multitude of individual investors for directly investing in infrastructure
- These are set up as a trust and registered with SEBI.