{"id":18478,"date":"2026-07-24T12:20:19","date_gmt":"2026-07-24T12:20:19","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=18478"},"modified":"2026-07-30T10:13:10","modified_gmt":"2026-07-30T10:13:10","slug":"reits-invits-a-complete-guide","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/reits-invits-a-complete-guide\/","title":{"rendered":"REITs &amp; InvITs: A Complete Guide for Investors"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#aioseo-how-do-you-actually-buy-units-4\">How Do You Actually Buy Units?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-how-much-income-do-they-pay-out-7\">How Much Income Do They Pay Out?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-how-are-reits-and-invits-taxed-10\">How Are REITs and InvITs Taxed?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-reit-vs-invit-at-a-glance-13\">REIT vs InvIT at a Glance<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-why-do-investors-choose-these-16\">Why Do Investors Choose These?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-conclusion-19\">Conclusion<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-frequently-asked-questions-25\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">A <strong>Real Estate Investment Trust (REIT)<\/strong> primarily owns and manages income-generating real estate assets such as office parks, shopping malls, warehouses, and data centers. It pools money from multiple investors to invest in a <a href=\"https:\/\/navia.co.in\/blog\/tag\/portfolio-check\/\" title=\"portfolio check\">portfolio<\/a> of income-generating real estate assets. REITs generally distribute a significant portion of the cash flows generated from their underlying assets to unitholders, subject to applicable regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">An <strong>Infrastructure Investment Trust (InvIT)<\/strong> follows a similar structure but invests primarily in infrastructure assets such as highways, power transmission lines, gas pipelines, and telecom towers. It may also invest a limited portion of its assets in infrastructure projects under construction, subject to the applicable <a href=\"https:\/\/www.sebi.gov.in\" target=\"_blank\" rel=\"noopener\">SEBI<\/a> regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Both REITs and InvITs are investment trusts regulated by SEBI. Listed REITs and InvITs are traded on recognized stock exchanges, allowing investors to buy and sell their units just like equity shares.<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8\"><strong>&#128161; Quick Answer<\/strong><br>A REIT (Real Estate Investment Trust) owns income-generating real estate such as offices, malls and warehouses; an InvIT (Infrastructure Investment Trust) owns infrastructure such as highways, power lines and pipelines. Both are SEBI-regulated trusts whose listed units trade on the exchange like shares, distribute a significant share of their cash flows to unitholders, and are taxed by the nature of each distribution and on capital gains. Their returns are market-linked, not a fixed rate.<\/blockquote>\n\n\n\n<h2 id=\"aioseo-how-do-you-actually-buy-units-4\" class=\"wp-block-heading has-text-color has-link-color wp-elements-337eaa71149a0d7262d848e78e4ec35a\" style=\"color:#032268\"><strong>How Do You Actually Buy Units?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Listed <strong>REIT and InvIT <\/strong>units can be purchased through a <a href=\"https:\/\/navia.co.in\/blog\/tag\/demat-account\/\" title=\"demat account\">demat<\/a> and trading account, similar to equity shares. Investors can buy and sell listed units through recognised stock exchanges in accordance with the applicable exchange trading requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">A separate investment route exists for certain privately placed InvITs that are intended for eligible investors and are subject to the investment requirements prescribed under the applicable SEBI regulations. These requirements do not generally apply to listed REITs and InvITs traded on recognized stock exchanges.<\/p>\n\n\n\n<h2 id=\"aioseo-how-much-income-do-they-pay-out-7\" class=\"wp-block-heading has-text-color has-link-color wp-elements-494f5f80c95297ab08af0d72a16d219f\" style=\"color:#032268\"><strong>How Much Income Do They Pay Out?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Under the applicable SEBI regulations, REITs and InvITs are generally required to distribute a significant portion of their distributable cash flows to unitholders, subject to the applicable regulatory framework. Distributions are made in accordance with the applicable regulations and the trust&#8217;s distribution policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Although REITs and InvITs may provide periodic distributions, their returns are market-linked and should not be considered equivalent to <a href=\"https:\/\/navia.co.in\/blog\/indias-bond-market-in-2026\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=reits_invits\">fixed-income products<\/a>.<\/p>\n\n\n\n<h2 id=\"aioseo-how-are-reits-and-invits-taxed-10\" class=\"wp-block-heading has-text-color has-link-color wp-elements-291340dd5b49041c9c4c523fdaad2245\" style=\"color:#032268\"><strong>How Are REITs and InvITs Taxed?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Distributions from REITs and InvITs may comprise different components, each of which may be subject to a different tax treatment under the applicable income tax laws. Depending on the nature of the distribution, components such as interest income, dividend income, rental income, or return of capital may be taxed differently based on the applicable tax provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Similarly, any gains arising from the sale of REIT or InvIT units are generally subject to capital gains tax under the applicable income tax laws. The tax treatment may vary depending on factors such as the holding period and the prevailing tax regulations. Since tax laws may change over time and individual circumstances differ, consult a qualified tax professional or refer to the latest applicable tax provisions before making investment or tax-related decisions.<\/p>\n\n\n\n<h2 id=\"aioseo-reit-vs-invit-at-a-glance-13\" class=\"wp-block-heading has-text-color has-link-color wp-elements-f0fd0328b96db6703b19111b74884b6c\" style=\"color:#032268\"><strong>REIT vs InvIT at a Glance<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Feature<\/strong><\/th><th><strong>REIT<\/strong><\/th><th><strong>InvIT<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Primary assets<\/strong><\/td><td>Income-generating real estate assets<\/td><td>Infrastructure assets<\/td><\/tr><tr><td><strong>Can hold projects under construction?<\/strong><\/td><td>Generally invests in completed, income-generating real estate assets<\/td><td>May invest a limited portion of its assets in projects under construction, subject to applicable SEBI regulations<\/td><\/tr><tr><td><strong>SEBI classification<\/strong><\/td><td>Classified based on the applicable SEBI regulatory framework.<\/td><td>Classified based on the applicable SEBI regulatory framework.<\/td><\/tr><tr><td><strong>Distribution requirement<\/strong><\/td><td>Distributes cash flows to unitholders in accordance with applicable SEBI regulations<\/td><td>Distributes cash flows to unitholders in accordance with applicable SEBI regulations<\/td><\/tr><tr><td><strong>Trading requirements (listed units)<\/strong><\/td><td>Subject to the applicable exchange trading requirements<\/td><td>Subject to the applicable exchange trading requirements<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=reits+and+invits\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"341\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-24-2026-04_55_34-PM-1024x341.png\" alt=\"REITs and InvITs on the Navia All in One App\" class=\"wp-image-18483\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-24-2026-04_55_34-PM-1024x341.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-24-2026-04_55_34-PM-300x100.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-24-2026-04_55_34-PM-150x50.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-24-2026-04_55_34-PM-768x256.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-24-2026-04_55_34-PM-1536x512.png 1536w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-24-2026-04_55_34-PM-2048x683.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 id=\"aioseo-why-do-investors-choose-these-16\" class=\"wp-block-heading has-text-color has-link-color wp-elements-7be19dcb60f259d42063dddd7d0eb08a\" style=\"color:#032268\"><strong>Why Do Investors Choose These?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>REITs and InvITs <\/strong>provide investors with an opportunity to gain exposure to income-generating real estate and infrastructure assets. They combine the accessibility of exchange-traded investments with exposure to physical assets through a SEBI-regulated investment structure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Like any market-linked investment, REITs and InvITs are subject to risks. Their distributions and market value may be influenced by factors such as property occupancy, infrastructure asset performance, market conditions, and regulatory changes. Consider your financial goals, risk tolerance, and investment horizon before making an investment decision. Investors using the <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.naviaall.app&amp;pcampaignid=web_share\" title=\"\">Navia All-in-One App<\/a> can conveniently monitor their REIT and InvIT holdings alongside their other listed investments.<\/p>\n\n\n\n<h2 id=\"aioseo-conclusion-19\" class=\"wp-block-heading has-text-color has-link-color wp-elements-579d6fada18d32e3afe239ec84cc52c9\" style=\"color:#032268\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">REITs and InvITs allow investors to gain exposure to income-generating real estate or infrastructure assets without directly owning or managing them. Listed REITs and InvITs are traded on recognized stock exchanges and distribute cash flows to unitholders in accordance with the applicable SEBI regulations. As with any market-linked investment, investors should read the relevant offer documents and understand the associated risks before investing.<\/p>\n\n\n\n<h3 style=\"color:#ec4d37\">Key Takeaways<\/h3>\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.6em;line-height:1.8\">A REIT owns income-generating real estate (offices, malls, warehouses, data centres); an InvIT owns infrastructure (highways, power lines, pipelines, telecom towers).<\/li>\n<li style=\"margin-bottom:0.6em;line-height:1.8\">Both are SEBI-regulated trusts; listed units trade on recognised exchanges through a demat and trading account, like equity shares.<\/li>\n<li style=\"margin-bottom:0.6em;line-height:1.8\">They distribute a significant portion of distributable cash flows to unitholders, but returns are market-linked &#8212; not a fixed rate like a fixed deposit.<\/li>\n<li style=\"margin-bottom:0.6em;line-height:1.8\">Distributions can mix interest, dividend, rental income, or return of capital &#8212; each taxed differently; capital gains on sale depend on the holding period. Consult a tax professional.<\/li>\n<li style=\"margin-bottom:0.6em;line-height:1.8\">Weighing income options? Compare with <a href=\"https:\/\/navia.co.in\/blog\/what-is-income-funds\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=reits_invits\">income funds<\/a> and the broader <a href=\"https:\/\/navia.co.in\/blog\/indias-bond-market-in-2026\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=reits_invits\">Indian bond market<\/a>.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Did you find this interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\">We&#8217;d love to know what you think &#8211; <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc?typeform-source=navia.co.in\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png\" alt=\"yes or no feedback form\" class=\"wp-image-8335\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h1 class=\"wp-block-heading has-text-align-center\" id=\"aioseo-frequently-asked-questions-25\"><strong>Frequently Asked Questions<\/strong><\/h1>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How Does a REIT Differ from an InvIT?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">A <strong>REIT<\/strong> primarily invests in income-generating real estate assets such as office buildings, shopping malls, and warehouses. An <strong>InvIT<\/strong> primarily invests in infrastructure assets such as highways, power transmission lines, gas pipelines, and telecom towers.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Who Can Invest in REITs and InvITs?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Listed REITs and InvITs can be bought by any investor with a demat and trading account, since their units trade on recognized stock exchanges just like equity shares. A separate route exists for certain privately placed InvITs, which are intended for eligible investors and are subject to the investment requirements prescribed under the applicable SEBI regulations.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How much income must REITs and InvITs pay out?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Under the applicable SEBI regulations, REITs and InvITs are generally required to distribute a significant portion of their distributable cash flows to unitholders in accordance with the applicable regulatory framework.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How are REIT and InvIT payouts taxed?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">A REIT or InvIT payout can be made up of different components &#8212; such as interest income, dividend income, rental income, or return of capital &#8212; and each component may be subject to a different tax treatment under the applicable income tax laws, depending on its nature. Because tax laws may change and individual circumstances differ, consult a qualified tax professional or the latest applicable tax provisions before relying on any specific treatment.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What tax applies when I sell REIT or InvIT units?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Capital gains arising from the sale of REIT or InvIT units are generally taxable under the applicable income tax laws. The tax treatment may vary depending on factors such as the holding period and the prevailing tax regulations.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Are REITs riskier than fixed deposits?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">REITs and InvITs are <strong>market-linked investments<\/strong>, whereas fixed deposits typically offer a predetermined rate of return. The value of REIT and InvIT units, as well as their distributions, may be influenced by factors such as market conditions, the performance of the underlying assets, and regulatory changes.<\/p>\n\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER:<\/strong> <strong>Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Full disclaimer: <a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Real Estate Investment Trust (REIT) primarily owns and manages income-generating real estate assets such as office parks, shopping malls, warehouses, and data centers. It pools money from multiple investors to invest in a portfolio of income-generating real estate assets. REITs generally distribute a significant portion of the cash flows generated from their underlying assets [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[2],"tags":[1206,393,22,1205,53,243,340,45,32],"class_list":["post-18478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments","tag-indian-stock-market","tag-investing","tag-investor","tag-invits","tag-marketperformance","tag-navia","tag-reits","tag-trading","tag-wealth-creation"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/REITsInvITsACompleteGuideforInvestor.jpeg","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2026\/07\/REITsInvITsACompleteGuideforInvestor.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/18478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=18478"}],"version-history":[{"count":5,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/18478\/revisions"}],"predecessor-version":[{"id":18666,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/18478\/revisions\/18666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/18481"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=18478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=18478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=18478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}