REITs: Good option for investors seeking regular income, diverse portfolio

But initial investors have to deal with low liquidity on exchanges, lack of choices, and absence of track record

Embassy Office Parks, the joint venture between Bengaluru-based Embassy group and US-based private equity fund Blackstone, plans to file the offer document for its real estate investment trust (REIT) soon. REITs, a long-awaited investment product, will give retail investors access to one more asset class with which to diversify their portfolios. 

REITs offer several advantages to retail investors. First, the underlying asset here is commercial real estate. If the retail investor were to invest directly in commercial real estate, the ticket size required would run into millions. “With REITs, investors will be able to invest in quality commercial real estate