The base value of the Nifty REITs and InvITs index is 1,000 and the index will be reviewed and rebalanced on a quarterly basis. (Representational Image)
The objective of the index is to track the performance of publicly listed and traded REITs and InvITs on the NSE, the exchange said in a statement.
NSE Indices Limited, a branch of National Stock Exchange (NSE), on Tuesday launched the country’s first Real Estate Investment Trusts and Infrastructure Investment Trusts Index – Nifty REIT and InvITs Index.
The objective of the index is to track the performance of publicly listed and traded REITs and InvITs on the NSE, the exchange said in a statement.
A real estate investment trust (REIT) or infrastructure investment trust (InvIT) is an investment vehicle that owns revenue-generating real estate or infrastructure assets. REITs invest in real estate projects, while InvITs invest in infrastructure projects with a longer duration. Through these trusts, investors get exposure to diversified regular income-generating real estate and infrastructure assets.
“REITs and InvITs are recognized as strong alternative financial instruments to raise funds against cash-generating infrastructure and real estate projects. For investors, these instruments are suitable for real estate or real estate projects,” said Mukesh Agarwal, CEO, NSE Indices. Provide exposure to infrastructure assets and offer diversification of risk from regular asset classes such as equity, debt and gold and generate regular income.
The weighting of securities within the index will be based on their free-float market capitalization, each subject to a safety cap of 33 percent, and the total weighting of the top three securities is capped at 72 percent.
The base value of the Nifty REITs and InvITs index is 1,000 and the index will be reviewed and rebalanced on a quarterly basis.
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