REITs vs InvITs: 5 differences to know

1.Both are investment vehicles that allow people to pool money and invest.
2.REITs invest in real estate properties, such as office buildings, shopping malls, hotels, and residential apartments. InvITs invest in infrastructure assets like highways, power plants, airports, etc.
3.REITs generate revenue primarily through leasing, renting or selling real estate properties. InvITs generate income from fees paid by users of infrastructure assets, such as tolls, tariffs, and usage fees.
4.REITs are typically more liquid due to lower price units and smaller trading quantities as compared to InvITs.
5.REITs are subject to market risks and property value fluctuations, whereas InvITs are more prone to political and regulatory risks.


Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.