How to Invest In REITs? – Forbes Advisor INDIA
The real estate sector in India has conventionally been a highly preferred asset class for investors on account of the capital appreciation and inflation hedge it offers. However, owing to the inherent limitations in owning a property viz. huge investment outlay, lack of scope for geographic diversification, tight liquidity, among other reasons, a more diversified and secured investment opportunity in the form of real estate investment trusts or REITs, is being considered for investment.
REITs enable an investor to invest in a portfolio of income-generating real estate assets, by purchasing units of the REIT, similar to units of a mutual fund. Any income generated by the underlying real estate assets is then distributed by the REIT to its unitholders. Here’s what you need to know before investing in REITs.