Nifty REITs & InvITs Index

Nifty REITs & InvITs Index

Nifty REITs & InvITs Index

About

  • The¬†Index aims to track the performance of REITs and InvITs that are publicly listed and traded on the NSE.
  • The weights of securities within the index are based on their free-float market capitalization, subject to a security cap of 33% each and an aggregate weight of top-3 securities capped at 72%.
  • The index has a base date of 1 July 2019 and a base value of 1,000.
  • The index will be reviewed and rebalanced on a quarterly basis.

Top Constituents

  • The top constituents of the Nifty Reits & InvITs index include Embassy Office Parks Reit, Powergrid Infrastructure Investment, Mindspace Business Parks Reit, and India Grid Trust.
  • The index has 57.5% weight to Real estate, 35.6% to power, and 6.8% to services.

Infrastructure Investment Trust

  • An¬†InvIT is a collective Investment Scheme¬†similar to a¬†mutual fund,¬†which enables¬†direct investment of money from individual and institutional investors in infrastructure projects¬†to earn a small portion of the income as a return.
  • InvITs are listed on exchanges just like stocks ‚ÄĒ through Initial Public Offering (IPO).
  • InvITs are regulated by the Securities and Exchange Board of India (SEBI) (Infrastructure Investment Trusts) Regulations, 2014.

Real Estate Investment Trust

  • REIT refers to¬†an entity created with the sole purpose of channeling investible funds¬†into operating, owning, or financing income-producing real estate.
  • REITs are modeled on the lines of mutual funds and provide investors with an extremely liquid way to get a stake in real estate.
  • It is a type of security that provides all types of investors, big or small, with an outlet for regular income, portfolio diversification, and long-term capital appreciation. Like any other security, REITs can enlist themselves on a stock exchange.
  • In India, the¬†REITs were introduced by the SEBI in 2007.

Municipal Bonds

  • A¬†municipal bond (muni)¬†is a¬†debt security issued by a state, municipality, or county¬†to¬†finance its capital expenditures,¬†including the construction of highways, bridges, or schools.
  • Through muni bonds, a municipal corporation raises money from individuals or institutions promises to pay a¬†specified amount of interest,¬†and returns the¬†principal amount¬†on a specific maturity date.
  • These are mostly¬†exempt from federal taxes and from most state and local taxes,¬†making them especially attractive to people in high-income tax brackets.

Related Links:

National Investment and Manufacturing ZonesGoods and Service Tax (GST)
CPI ‚Äď Consumer Price IndexIndex of Industrial Production or IIP
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