SHOULD YOU INVEST IN REITS?
Investors India|August 2021
A new development has occurred that is likely to draw more retail investors towards Real Estate Investment trusts (REIT). The Securities and Exchange Board of India (Sebi) has amended its regulations for REITs. Henceforth, investors will be able to apply for the IPO (initial public offer) of a REIT with as small an amount as Rs. 10,000-15,000. And they will be able to buy and sell just one unit of these instruments in the secondary market. Earlier, the minimum investment requirement was much higher and hence beyond the reach of many retail investors.
SHOULD YOU INVEST IN REITS?

Why should you consider investing in REITs? The first reason is that they will allow you to diversify your portfolio beyond equities, fixed income, and gold. REITs invest in grade A commercial property. Investing directly in such properties is beyond the financial capability of many retail investors.

This is an asset class that is especially favoured by investors who desire a regular income, say, affluent retirees. REIT regulations make it mandatory for these investment vehicles to distribute 90 per cent of their cash flows to investors semi-annually.

The regulations have been framed in such a manner that REITs can’t invest in under-construction properties, which carry development risk. 80 per cent of their assets must be invested in completed properties.

This story is from the August 2021 edition of Investors India.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the August 2021 edition of Investors India.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM INVESTORS INDIAView All
Indians are Developing Weak Bones
Investors India

Indians are Developing Weak Bones

In India, 1 out of 8 males and 1 out of 3 females suffer from osteoporosis, making India one of the largest affected countries in the world.

time-read
5 mins  |
December 2024
"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"
Investors India

"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"

Yes, we certainly believe innovation is a powerful theme with immense potential for the coming years, and we are excited to bring it to our investors.

time-read
4 mins  |
December 2024
What is Hybrid Mutual Fund?
Investors India

What is Hybrid Mutual Fund?

Hybrid Mutual Fund is a combination of more than one type of fund. While they invest in shares of companies listed on the exchange, like equity funds.

time-read
4 mins  |
December 2024
Should you invest in dynamic bond funds?
Investors India

Should you invest in dynamic bond funds?

Dynamic bond funds have delivered a category average return of 8.68 per cent over the past year, making them the fourth best-performing category, following long-duration funds, constant maturity gilt funds, and gilt funds. With interest rate cuts yet to begin, these funds remain a viable option for investors seeking to benefit from possible rate reductions.

time-read
3 mins  |
December 2024
The Multicap Solution to India's MultiDimensional Growth
Investors India

The Multicap Solution to India's MultiDimensional Growth

India is entering a transformative era of economic growth, backed by a unique combination of demographic strength, infrastructure development, and rising global prominence.

time-read
2 mins  |
December 2024
The Long-Term Benefit of Investing in Children's Future
Investors India

The Long-Term Benefit of Investing in Children's Future

A child is the most treasured part of any parent's life, and naturally, we want to give them the best of what the world has to offer. This often means not only ensuring we can meet their needs but also nurturing them to pursue their unique aspirations. Each child has their own dreams and challenges, making the early years critical as they lay the foundation for a healthy and fulfilling future.

time-read
2 mins  |
December 2024
ASK THE EXPERT
Investors India

ASK THE EXPERT

Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida

time-read
3 mins  |
November 2024
How to Naturally Reverse Fatty Liver Disease
Investors India

How to Naturally Reverse Fatty Liver Disease

The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.

time-read
2 mins  |
November 2024
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Investors India

Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile

Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?

time-read
5 mins  |
November 2024
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Investors India

India will continue to enjoy benefits of a close US relationship and trade will continue to grow

Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?

time-read
3 mins  |
November 2024