Who can invest in REIT in India?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

An investor can invest as low as Rs 2 lakh in REIT.

The projected return on investment in REIT is between 8% to 14% annually with minimum risks. REITs are less volatile than the stock market, FDs, mutual funds and gold because as per regulations 80% of the REITs must be of rent-generating assets.

The rents for properties owned by REIT are very likely to rise steadily over the years. This is similar to owning a property, earn the rentals and enjoy the appreciation in the property prices.

A realistic return on investment expectation would be in the range of 7-8% annually, after adjusting the fund management fee. Investors can earn two types of income from REITs; through capital gains on the sale of REIT units and a dividend income.

Topic: Real Estate Investment Trust (REIT) IPO Explained Article

1 Comments

1. Gandhi

| Link | Mar 15, 2019 6:45:12 PM Reply

Is dividend from ReIT tax free or otherwise.

1.1. Team Chittorgarh.com

| Link | Mar 16, 2019 2:14:06 PM

No, dividend from ReIT is not tax-free. No special tax relief is given to ReITs by the government.

The ReIT dividend income is considered as a regular flow of income. It is the similar way the dividends from stocks are paid and taxed.

Find more questions on this topic

Ask Your Question