Real Estate Investment Trusts
About
- Real Estate Investment Trusts (REITs) are pooled investment vehicles like mutual funds. However, the REITs, as the name suggests, invest in real estate projects like workspaces, malls, etc.
- REITs are required to be listed, traded on stock exchanges, and can be bought and sold just like shares of any listed company.
- The income for the REIT comes in the form of rental income from real estate investments as well as capital gains on the sale of such properties.
- Thus, investing in REITs enables investors to earn a share of the income generated by the asset without directly purchasing the asset.
- REITs in India are regulated by SEBI under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations 2014.