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Real Estate Investment Trusts (REITs) that owns, operates, and manages real estate properties i.e. offices, industrial parks, data centers, healthcare centers, medical facilities, warehouses, and many others from where it generates rental income.
Unlike it, Infrastructure Investment Trusts (InvIT) companies pool money from investors and invest it in infrastructure projects only such as highways construction, road constructions, bridges, and others to generate regular cash flow.
Let's find out more about REITs and InvITs here as under
| Difference | REITs | InvIT |
|---|---|---|
1ncome Certainty |
Highly certain because minimum 80% is to be generated from income deriving properties. |
Less certain because there is no such condition and dependency over capacity usage and scalability. |
Regulatory requirements |
SEBI Real Estate Investment Trust Regulations 2014 |
SEBI Infrastructure Investment Trust Regulations 2014 |
Liquidity |
High due to less minimum capital subscription requirement |
Less due to high trading lot size |
Minimum subscription requirement |
Rs. 50,000 is the minimum subscription requirement to invest in REITs. |
InvITs have high minimum subscription requirement as it needs Rs. 1 lakh investment. |
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Zerodha Trade@20
