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New Delhi: A Branch of NSE INDEX LIMITED, National Stock Exchange (NSE) on Tuesday launched the country’s first real estate investment trust And Infrastructure Investment Trust index — Nifty REIT And InvITs index. The objective of the index is to track the performance of REIT And InvITs It is publicly listed and traded 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.
REIT invest in real estate projects, while InvITs invest in long-term infrastructure projects. 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 for raising funds against 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,” said Mukesh Agarwal, CEO, NSE Indices.
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.
Nifty REIT And the InvITs index has a base value of 1,000 and the index will be reviewed and rebalanced on a quarterly basis.
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