Understanding the REITs and InvITs Index:

• This innovative index aims to monitor the performance of REITs and InvITs that are listed and traded on the NSE.
• REITs primarily invest in real estate projects, while InvITs are focused on infrastructure projects with extended gestation periods.
• The index is subject to quarterly reviews and rebalancing, with its weightage based on free-float market capitalization. The base date has been set as July 1, 2019, with a base value of 1000.
• Each security has a cap of 33%, and the combined weight of the top three securities is capped at 72%.
• REITs and InvITs encompass revenue-generating real estate and infrastructure assets, respectively.
• These investment vehicles offer a viable option for investors seeking to diversify their portfolios by including revenue-generating real estate and infrastructure assets.
• They also provide a means for investors to diversify risk away from traditional asset classes such as equity, debt, and gold.
• REITs and Invits, while popular among global investors, are relatively new to the Indian market and can be leveraged by mutual funds.
• Mutual funds based on the REITs and InvITs index could offer a more diversified investment option compared to investing in individual REITs and InvITs.
• The leading constituents of the Nifty REITs and InvITs index include:

• • Embassy Office Parks REIT (32.9% weight)
  • Powergrid Infrastructure Investment Trust (20.2%)
  • Mindspace Business Parks REIT (15.3%)
  • India Grid Trust (15.3%).