About the InvIT Sector
Infrastructure investment trusts (InvITs) are an investment vehicle that allows individuals to invest in infrastructure projects such as roads, bridges, and power plants. InvITs pool money from investors and use it to buy and operate infrastructure assets. Investors in InvITs receive regular income distributions from the assets the trust owns. InvITs can be both privately held as well as publicly traded. InvITs tend to have predictable cash flows and also have a blend of debt and equity for diversification.
Future Outlook of the InvIT Sector
InvITs (including REITs) have a potential of around ₹8 lakh crore in India over the next 4 to 6 years. As of January 2023, there were 19 InvITs and 4 REITs registered in India with a combined asset under management of over ₹3.5 trillion.
Treatment of InvITs as equity instruments, rise in telecom infrastructure, and gas pipelines will create more liquidity for InvITs. A major push for infrastructure development by the government through strategies such as the National Infrastructure Pipeline and the National Monetisation Pipeline will increase the demand for InvIT-led infrastructure development in the future.
Things To Consider Before Investing in the InvIT Sector
- Understand the sector: Check if the InvIT is part of a high-growth sector with an increasing quantum of opportunities or not.
- Understand the projects: Check what are the projects that the InvIT is investing its money and efforts in and how capable it is in completing the project efficiently.
How To Invest in InvITs?
Investing in InvITs via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired InvIT.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
