Real Estate Investment Trusts (REITs)
& Infrastructure Investment Trusts (InvITs)
Investments built on tangible assets, designed for stability, and long-term relevance.
What are REITs and InvITs?
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are market-linked investment vehicles registered with the Securities and Exchange Board of India, created to own, operate, and generate income from income-producing real estate and infrastructure assets.
REITs primarily invest in commercial real estate such as office parks, retail spaces, and business districts. InvITs, on the other hand, focus on infrastructure assets such as roads, power transmission lines, renewable energy assets, pipelines, and telecommunications infrastructure.
But at IIFL Capital Services Ltd., REITs and InvITs represent more than access to physical assets. They represent a shift in how wealth participates in the real economy, through ownership of assets that power commerce, connectivity, and everyday life.
These structures are built for investors who value visibility, cash flow predictability, and long-duration relevance. Assets that generate income steadily, evolve slowly, and anchor portfolios through market cycles.
We believe REITs and InvITs allow capital to stay grounded and invested in assets you can see, understand, and rely upon, while still participating in regulated, market-traded structures.
Because some forms of wealth grow quietly, paying you consistently, while standing firm over time.
Offerings
At IIFL Capital, we facilitate access to REIT and InvIT opportunities structured across distinct asset types, each aligned to different income, risk, and duration preferences.
Real Estate Investment Trusts (REITs)
REITs invest in completed, income-generating commercial real estate assets and distribute a significant portion of their cash flows to investors.
Investor Profile
REITs are suited for investors seeking stable cash flows, portfolio diversification, and participation in India's evolving commercial real estate landscape.
Key Characteristics
- Exposure to office parks, commercial buildings, and retail assets
- Regular income through rental distributions
- Market-listed, regulated investment structure
- Transparency through periodic disclosures and asset-level reporting
Investor Risk Appetite
Low to Moderate
Infrastructure Investment Trusts (InvITs)
InvITs invest in operational infrastructure assets that generate long-term, predictable cash flows.
Investor Profile
InvITs are designed for investors seeking income visibility, lower volatility relative to equities, and exposure to essential economic assets.
Key Characteristics
- Exposure to infrastructure assets such as highways, power transmission, renewable energy, and pipelines
- Long concession periods with contracted or regulated revenue streams
- Income distribution backed by operating cash flows
- Alignment with national infrastructure development
Investor Risk Appetite
Low to Moderate
Want help deciding what to choose?
At IIFL Capital Services Ltd., every decision is guided by clarity, context, and conviction — so your capital is always aligned with your purpose.
Connect UsOur Distinctive Edge
Asset-backed Exposure
Defining risks before returns to align with objective and long-term goals.
Income-focused Structures
Strategic allocation backed with research, valuation discipline, and conviction.
Regulated Market Vehicles
Active monitoring and rebalancing to manage risk, capture opportunity, and protect value.
Institutional-Quality Assets
Defining risks before returns to align with objective and long-term goals.
Ongoing Asset Oversight
Strategic allocation backed with research, valuation discipline, and conviction.
Transparent Reporting
Active monitoring and rebalancing to manage risk, capture opportunity, and protect value.
Why do investors consider investing in REITs / InvITs?
Investors consider REITs and InvITs when they seek predictable income from real, operating assets — without the complexities of direct ownership. These instruments offer exposure to institutional-grade real estate and infrastructure, with the convenience of a listed, market-traded format.
REITs distribute a significant portion of their income as dividends, backed by rental contracts and lease agreements. InvITs generate revenue through toll collections, power transmission charges, and long-term concession agreements. Both structures are designed to provide regular cash flow, supported by tangible, revenue-generating assets.
They are relevant for investors looking to diversify beyond equity and fixed income, reduce overall portfolio volatility, and add inflation-linked income streams. Because the underlying assets are physical and productive, they tend to evolve slowly and are less influenced by short-term market sentiment.
However, they also carry specific risks — including sensitivity to interest rate movements, occupancy rates, regulatory changes, and asset-level execution. Liquidity may be lower than traditional equity instruments, and returns depend on the quality and performance of specific assets within the trust.
REITs/InvITs are best suited for investors who value stability, visibility, and long-duration relevance — and who understand that income-oriented wealth creation may require patience and a willingness to hold through market cycles.
Difference between REITs/InvITs and Mutual Funds
Income generation through ownership of income-producing real estate assets
Wealth creation through diversified exposure to financial markets
Trust structure holding completed, operational commercial real estate
Pooled investment vehicle holding market securities
Office parks, commercial buildings, retail assets
Listed equities, bonds, money market instruments
Predominantly rental income and asset appreciation
Combination of capital appreciation and income, depending on fund type
Relatively high; backed by rental contracts and leases
Market-linked; dependent on security performance
Low; standardized trust portfolio
Low to moderate; category-based fund strategies
Asset-level disclosures and periodic reporting
Periodic portfolio disclosures
Listed and tradable on stock exchanges
Generally high; open-ended funds allow daily liquidity
Moderate; linked to real estate cycles, occupancy, and lease renewals
Category-dependent; equity funds carry higher volatility
Medium to long term income-oriented
Short to long term, depending on fund category
(Data required)
(Data required)
Market lot based; relatively low entry threshold
Very low; suitable for retail participation
Investors seeking stable income and asset-backed exposure
Investors seeking diversified market participation and accessibility
