Invest in Real Estate with little money. Earn dividends from REITs.

A Real Estate Investment Trust, or REIT, is a trust that owns and operates a portfolio of income-generating💰 real estates assets, such as office buildings🏢, shopping malls🏬, and residential apartments🏡

REITs pool capital from individuals and institutional investors and invest in a diversified portfolio of properties. Investors in a REIT receive dividends based on the rental income generated by the properties in the portfolio.

REITs are a relatively new investment option in India, as the first publicly traded REIT was launched only in 2019.

As of April 2023, there are 3 REITs listed on the stock exchange. They are Embassy Office Parks REIT, Mindspace Business Park REIT, and Brookfield India Real Estate Trust.

How safe is investing in REITs?🦺

In India, REITs are regulated by the Securities and Exchange Board of India (SEBI). REITs must adhere to strict rules regarding portfolio diversification, leverage, and income distribution.

The SEBI has also set the below rules to safeguard the interest of retail investors like us.

1. REITs should invest 80% of the total capital in completed properties/income-generating assets. Only 20% of the total capital can be invested in under-construction assets.

2. 90% of the net distributable cash flow should be distributed to unitholders (Investors) through interest or dividends.

Read more about how REITs work, the 4 types of income generated from REITs and more about the benefits and risks of investing in REITs in our latest blog.

Link - https://blog.vrid.in/2023/04/18/what-are-real-estate-investment-trusts-reits-how-do-they-work-and-is-investing-in-reits-safe/

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