Archive · 22 Jul 2026
REITs vs InvITs: Key Differences and Investment Insights
REITs and InvITs are like special funds that let people invest in big buildings or big projects like roads and power plants without having to buy them directly.
REITs focus on buildings like offices and malls, while InvITs focus on things like highways and power plants.
Both give regular money to investors, but they have different risks and returns.
REITs are easier to buy and sell, but InvITs have grown more in the last five years.
Investors need to think about what they want and how much risk they can handle before choosing between them.
REITs invest in income-generating real estate assets like commercial buildings and shopping malls.
InvITs focus on operational infrastructure assets such as highways and power plants.
REITs require a minimum investment of Rs 50,000, while InvITs require Rs 1 lakh.
REITs have delivered an annualized return of 8.9% over the past five years.
InvITs have shown a CAGR growth of 12.79% in the last five years.
- Who
- Investors looking for regular income and exposure to real assets.
- What
- Comparison between Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
- When
- Over the past five years.
- Where
- India, as regulated by the Securities and Exchange Board of India (SEBI).
- Why
- To understand the differences, risks, and returns of REITs and InvITs for informed investment decisions.
REITs
InvITs
Investment Structure
REITs
REITs invest in income-generating real estate assets like commercial buildings, shopping malls, and hotels.
InvITs
InvITs focus on operational infrastructure assets such as highways, power plants, and telecom towers.
Risk Profile
REITs
REITs are sensitive to interest rate changes and market liquidity.
InvITs
InvITs face risks linked to infrastructure project performance and regulatory changes.
Minimum Investment
REITs
REITs require a minimum investment of Rs 50,000.
InvITs
InvITs require a minimum investment of Rs 1 lakh.
Liquidity
REITs
REITs generally enjoy better liquidity due to lower unit prices and wider retail participation.
InvITs
InvITs have lower liquidity and are a relatively niche investment category.
Returns
REITs
REITs have delivered an annualized total index return of nearly 8.9% in the last five years.
InvITs
InvITs have clocked a CAGR growth of 12.79% in the last five years.
- REITs Minimum Investment
- Rs 50,000
- InvITs Minimum Investment
- Rs 1 lakh
- REITs Annualized Returns (5 years)
- 8.9%
- InvITs CAGR Growth (5 years)
- 12.79%
- REITs Asset Allocation
- At least 80% in completed, income-generating properties
- InvITs Asset Allocation
- At least 80% in completed and revenue-generating infrastructure projects