by Suman Gupta
NSE’s index services subsidiary, NSE Indices Limited today launched India’s first ever Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs) Index – Nifty REITs & InvITs Index.
The Nifty REITs & InvITs index aims to track the performance of REITs and InvITs that are publicly listed and traded (listed and traded or not listed but permitted to trade) at the National Stock Exchange. The weights of securities within the index are based on their free-float market capitalization subject to a security cap of 33% each and aggregate weight of top 3 securities is capped at 72%. The Nifty REITs & InvITs Index has a base date of July 01, 2019, and a base value of 1000. The index will be reviewed and rebalanced on a quarterly basis.
A real estate investment trust (REIT) or an infrastructure investment trust (InvIT) is an investment vehicle that owns revenue-generating real estate or infrastructure assets. REITs invest in real estate projects whereas InvITs invest in infrastructure projects with long gestation period. Through REITs & InvITs investors get exposure to diversified regular income generating real estate and infrastructure asset.
Mr. Mukesh Agarwal, CEO, NSE Indices, said. “REITs and InvITs are recognised as strong alternative financial instruments to raise funds against the cash generating infrastructure and real estate projects. For investors, these instruments provide exposure to real estate or infrastructure assets and offer diversification of risk from regular asset classes like equity, debt and gold and generate regular income. The launch of the Nifty REITs & InvITs Index – India’s first ever REITs & InvITs Index aligns with NSE’s vision to provide market representative benchmarks for different asset classes. The Nifty REITs & InvITs Index will track the performance of publicly listed REITs & InvITs and act as a benchmark for active funds.”
