Hybrid Real Estate/Infra

REITs & InvITs

Own units in listed trusts that hold offices, malls, roads and power lines, and receive a share of their cash flows.

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RegulatorSEBI

Regulator: SEBI
Listed on: NSE and BSE
Distributions: Usually quarterly; not fixed
Buy from: 1 unit on the exchange

What are REITs and InvITs?

A Real Estate Investment Trust (REIT) owns commercial property — mostly office parks, along with malls and warehouses — and passes the rent it earns, after costs, to unitholders. An Infrastructure Investment Trust (InvIT) does the same with infrastructure such as toll roads, power transmission lines, gas pipelines and telecom towers.

Both are trusts regulated by SEBI and listed on the stock exchanges. When you buy a unit, you own a small share of the trust's cash flows, not a specific floor or stretch of road.

How they work in India

The trust usually owns its assets through special purpose vehicles (SPVs). Cash from those SPVs reaches you as a mix of interest, dividend and repayment of capital, and that mix matters for tax. Keep every distribution notice.

An illustrative example: you hold 400 units and the trust declares ₹3 per unit for the quarter. You receive ₹1,200 — perhaps ₹500 as interest, ₹500 as dividend and ₹200 as capital repayment. The actual split varies by trust and by quarter.

Unit prices move with interest rates, occupancy, tenant news and the broader market, so the yield you earn depends on the price you pay.

REIT vs InvIT at a glance

	REIT	InvIT
Assets	Offices, malls, warehouses	Roads, power lines, pipelines, towers
Income source	Rent	Tolls, tariffs, contracted payments
Key driver	Occupancy and lease renewals	Traffic, tariffs, concession life
Watch for	Vacancies, tenant concentration	Concession end dates, regulatory changes

One point is often missed with InvITs: many road and power assets run on concessions that end after a fixed period. As that date approaches, part of what you receive is effectively your capital coming back.

Things to compare before you choose

Asset quality — location, occupancy and lease expiry profile for REITs; remaining concession period for InvITs.
Borrowing levels — more debt leaves less cash for unitholders.
Distribution history and mix — how much has come as interest, dividend or capital repayment.
Sponsor and manager — track record and how their interests line up with yours.
Price vs net asset value — the published NAV per unit against the market price.

Investments in securities markets are subject to market risks; read all related documents carefully. Our team can help you compare listed trusts and place orders through your demat account.

Who is it for?

Investors who want property or infrastructure exposure without buying a building
Retirees and income seekers comfortable with payouts that can go up or down
Equity investors looking to add real assets to their portfolio
Demat account holders who can stay invested for several years

Key features

Required payouts

SEBI rules require these trusts to distribute at least 90% of their net distributable cash flows to unitholders, usually every quarter.

Completed, income-earning assets

REITs must hold most of their assets in completed, rent-generating property, which limits how much construction risk they can take.

Exchange liquidity

Units trade on NSE and BSE like shares, so you can buy or sell during market hours, subject to trading volumes.

Layered oversight

A manager runs the assets, a trustee oversees them on behalf of unitholders, and independent valuers value the portfolio periodically.

Small ticket size

You can start with a modest amount instead of the crores needed to buy commercial property directly.

How Ramasure helps

1
Understand your income need
We look at the income you want, how much property exposure you already have and how much price movement you can live with.
2
Compare listed trusts
Your relationship manager compares REITs and InvITs on asset type, occupancy or traffic, sponsor, borrowing levels and distribution history.
3
Demat and order
We help you open or link a demat account and place orders on the exchange, or apply in a public issue when one opens.
4
Distribution records
We help you keep each quarter's distribution notice, with its interest, dividend and capital repayment split, ready for your tax return.

Documents & eligibility

Documents you'll need

PAN card
Aadhaar or other address proof for e-KYC
Demat and trading account
Bank account linked to the demat account
Nominee details

Costs and risks to understand

Costs to check

Brokerage, exchange charges and STT on each trade
Management fees and trust expenses, which come out of cash flows before distribution
DP charges when you sell units
Tax on distributions, which depends on each component

Risks & things to know

Unit prices can fall, sometimes sharply, like any listed security
Distributions can drop if occupancy, rents, tolls or tariffs decline
Rising interest rates can weigh on unit prices and raise the trust's borrowing costs
Some trusts depend on a few assets, a few large tenants or a single sponsor
Trading volumes in some units are low, which can make exits slower

Frequently asked questions

Each payout is split into components. Interest is taxed at your slab rate, dividends may be exempt or taxable depending on the SPV's tax regime, and repayment of capital follows special rules. The trust's distribution notice shows the split; check current rules or ask your tax professional.

Under FY 2025-26 rules, units held for more than 12 months are long-term, taxed at 12.5% on gains above ₹1.25 lakh a year (a limit shared with listed equity gains). Shorter holdings are taxed at 20%.

They do different jobs. A REIT gives you a share in large commercial properties for a small amount, with exchange liquidity and no tenant management, but no control over the asset. A rental flat needs a large sum and ongoing effort, and you own it outright.

Small and medium REITs are a SEBI framework for trusts that hold smaller property portfolios. They have a much higher minimum investment and different risks from large listed REITs, so read the offer document carefully.

Important information

Bonds, debentures and corporate fixed deposits carry credit and default risk. Review the credit rating and offer documents before investing.
Bank deposits are covered by deposit insurance up to the limit prescribed by law; corporate deposits and bonds are not covered.
Prices of listed bonds may move with interest rates, and liquidity in the secondary market may be limited.

Read all disclosures

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Questions about REITs & InvITs?

Tell us what you need. Your relationship manager will compare suitable options and walk you through every step.