Retail investors should avoid InVITS unless they know underlying business

Comparatively, REITs are simpler, and revenues are predictable

Recently, capital market regulator Securities and Exchange Board of India reduced the minimum investment limits on real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). The minimum subscription limit for REITs is brought down to Rs 50,000, from the earlier Rs 2 lakh. For InvITs, it is reduced from Rs 10 lakh to Rs 1 lakh.

The move makes REITs and InvITs more accessible to retail investors now. “Both these products can add diversification to an investor’s portfolio,” says Amit Jain, co-founder, Ashika Wealth Advisors. “While REITs are easier to understand for a retail investor, InvITs can be complex,”