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Alternative of Real Estate Investment

➡️REITS

- Mutual funds of Real estate where it pools the funds of investors and invests it in income generating Commercial Real Estate like malls, offices etc

🔸 You will get 2 types of income: Capital appreciation and rental income.
🔸 Only three Listed REITS are present in India namely,
- Brookfield India Real Estate Trust
- Embassy Office Parks REIT
- Mindspace Business Parks REIT
- Only 2 rules to remember for REITS

1. It is mandatory for reits to distribute 90% of the cashflows to its investors as dividend.

2. It is mandatory for reits to invest 80% of funds in income generating assets and only 20% investment in under construction assets

- Talking about Returns,
- On an average investors have received, 7-9% rental income and 4-5% capital appreciation so overall 11% return pre tax.

Let us know your questions in the comment section.
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