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NSE Indices has launched India’s first ever Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs) Index - Nifty REITs & InvITs Index.
The Nifty REITs & InvITs index aims to track the performance of REITs and InvITs that are publicly listed and traded.
REIT and InvIT are an investment vehicle that owns revenue-generating real estate or infrastructure assets. REITs invest in real estate projects whereas InvITs invest in infrastructure projects with long gestation period.
In a press release, Mukesh Agarwal, CEO, NSE Indices said. “REITs and InvITs are recognised as strong alternative financial instruments to raise funds against the cash generating infrastructure and real estate projects. For investors, these instruments provide exposure to real estate or infrastructure assets and offer diversification of risk from regular asset classes like equity, debt and gold and generate regular income. The Nifty REITs & InvITs Index will track the performance of publicly listed REITs & InvITs and act as a benchmark for active funds.”
The move opens gate for fund houses to launch passive funds focussing on REITs and InvITs.
