What is REIT in India..? should you invest or avoid..?

REITs are just like stocks, with REITs you invest in Real Estate with less investment, REITS stand for Reals Estate Investment Trust that owns and manages Real Estate. You can invest in a REIT by purchasing shares of the companies directly, or through mutual funds, or ETFs.. Currently there are three listed REITS ind India Mindspace REIT, Embassy REIT, Brook field India REIT , If you want to directly invest you can choose any one of these.



Should you Invest or avoid…? to decide on those let us some of the advantages and disadvantages of Investing in REITS.


Advantages:

  • You can get the regular Income from dividends, REITS will give higher returns.

  • You can diversify you portfolio. To sustain volatility only the way is to diversify the portfolio, with REITS you can diversify your portfolio.

  • You can Invest in Real Estate with less money like 10,000 to 15,000.

  • REITs are highly liquid unlike Real Estate site or building, you can buy when ever you want similarly you can sell whenever you want.

Disadvantages:

  • You have to pay taxes on income you got through REITS.

  • You can’t buy single REIT, you have to buy at least specified lot size.

  • If you can afford and maintain you can better directly real estate property because when you buy REITS you have pay some extra charges, so you may not get as many returns as you get from direct investment.

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FunTech Team

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