What is a REIT?
A REIT acts exactly like a Mutual Fund, but instead of buying stocks or bonds, it pools money from thousands of investors to buy, develop, and manage Grade-A commercial properties (IT parks, massive malls, logistics hubs). The rent collected from these tenants is distributed directly to unit-holders as dividends.
Why Invest in REITs?
- Fractional Exposure with Deep Liquidity: You can buy a single unit on the stock exchange for ₹350. You can sell it instantly during market hours. Normal property takes months to sell.
- Zero Maintenance Hassles: You never have to deal with leaky pipes, tenant negotiations, or property taxes. The REIT manager handles everything.
- Mandatory Dividends: By law in India, REITs must distribute 90% of their net distributable cash flows to investors at least twice a year.