The REITs and InvITs Index tracks the performance of publicly listed and traded REITs and InvITs on the NSE.
The index’s base year is 1 July 2019, and it will be reviewed and rebalanced every quarter.
The index’s securities’ weights are determined based on their free-float market capitalization, with a security cap of 33% each, and the top three securities’ combined weight is capped at 72%.
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The Nifty Reits & InvITs index’s top constituents include Embassy Office Parks REIT and Powergrid Infrastructure Investment.
What are REITs?
Companies that own, operate, or finance income-generating real estate.
Publicly traded like stocks, making them highly liquid.
Modeled after mutual funds, pooling the capital of numerous investors.
Enables individual investors to earn dividends from real estate investments without the need to buy, manage, or finance any properties themselves.
What are InvITs?
Mutual fund-like institutions that allow investments in the infrastructure sector by pooling small sums of money from individual investors.
Set up as a trust and registered with SEBI.
Composed of four parties: Trustee, Sponsor(s), Investment Manager, and Project Manager.
Source: Live Mint
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