InvIT
Also called Infrastructure Investment Trust
Infrastructure Investment Trust: a SEBI-regulated trust that owns income-earning infrastructure such as roads or power lines and lists its units on the stock exchange.
An InvIT, or Infrastructure Investment Trust, lets you own a slice of income-earning infrastructure through units bought on the stock exchange. It works like a REIT, but for roads, power lines and similar assets. Payouts and unit prices can fall, so it’s a market-linked investment. See how it fits among other options in passive income in India.
Questions people ask
What is the full form of InvIT?
InvIT stands for Infrastructure Investment Trust. It pools investors' money to own infrastructure assets such as roads, power transmission lines or pipelines, and its units are listed on the stock exchange.
How does an InvIT pay investors?
Under SEBI's InvIT rules, an InvIT must distribute at least 90% of its net distributable cash flows to unitholders. Each payout can mix interest, dividend and repayment of capital, and each part is taxed differently. Payouts are not guaranteed.
Is an InvIT the same as a REIT?
They work the same way but own different things. A REIT owns rent-earning property such as office parks, while an InvIT owns infrastructure. Both are regulated by SEBI, trade on the exchange, and their unit prices can rise or fall.
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