India's first-ever REIT and InvIT index is released by NSE Indices

The first Real Estate Investment Trusts and Infrastructure Investment Trusts index in the nation, the Nifty REITs and InvITs Index were introduced last week by NSE Indices Ltd, a division of the National Stock Exchange (NSE). The index intends to monitor the performance of publicly listed and traded REITs and InvITs on the NSE according to a statement from the exchange.

A financial instrument called a real estate investment trust (REIT) or an infrastructure investment trust (InvIT) owns real estate or infrastructure assets that generate income. REITs invest in real estate projects whereas InvITs invest in long-term infrastructure projects. Investors gain access to a variety of regularly income-producing real estate and infrastructure assets through these trusts.

In order to raise money for cash-generating infrastructure and real estate projects, REITs and InvITs are recognised as strong alternative financial tools. These instruments give investors exposure to real estate or infrastructure assets and provide risk diversification from more common asset classes like stock, debt, gold and produce consistent income.

The weights of the securities in the index will be determined by their free-float market capitalization. A security cap of 33% applies to each security's weight within the index, and a cap of 72% applies to the combined weight of the top three stocks. The base value of the Nifty REITs and InvITs index is 1,000 and the index is evaluated and rebalanced after every three months.

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India's first-ever REIT and InvIT index is released by NSE Indices

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