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 — 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.
