NSE Indices launches India’s first-ever REITs and InvITs index

NSE Indices Limited introduced the Nifty REITs & InvITs Index, the first of its kind in India, designed to monitor the performance of publicly listed and traded Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) at the National Stock Exchange, whether listed or unlisted but authorized to trade.

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The Nifty REITs & InvITs Index:

As per NSE’s statement, the Nifty REITs & InvITs Index determines the weights of the securities included based on their free-float market capitalization, with a security cap of 33% each. Additionally, the combined weight of the top three securities is limited to 72% of the total weight of the index.

What are REITs & InvITs Index:

According to NSE’s press statement, the Nifty REITs & InvITs Index was established with a base date of July 1, 2019, and an initial value of 1000. The index will undergo a review and rebalancing process every quarter, as per the proposal.

A real estate investment trust (REIT) and an infrastructure investment trust (InvIT) are both investment vehicles that provide investors with exposure to revenue-generating real estate or infrastructure assets. REITs primarily invest in real estate projects, while InvITs invest in infrastructure projects that have long gestation periods.

By investing in REITs and InvITs, investors can benefit from regular income generated by diversified real estate and infrastructure assets. These investment vehicles are often considered hybrid securities, as they offer a combination of equity and fixed income characteristics.

REITs and InvITs are publicly traded, allowing investors to buy and sell shares on stock exchanges like any other security. The income generated by these trusts is typically distributed to investors in the form of dividends.

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