Unraveling Real Estate Investment Trusts (REITs)

Understanding REITs: REITs offer a gateway for small investors to engage in real estate ventures without direct property management hassles. REIT Composition: They invest in diverse properties like offices, malls, and hotels, generating income from rentals or interest from loans.

Types of REITs: Explore equity, mortgage, hybrid, public non-listed, and private REITs, each catering to distinct investment preferences and risk profiles. Compliance Standards: SEBI guidelines mandate asset base requirements, SPV criteria, distribution norms, and investment composition for REITs to ensure transparency and investor protection.

Benefits of REIT Investment: Diversification, dividend income, liquidity, and risk-adjusted returns make REITs an attractive investment avenue. Investment Avenues: Investors can access REITs through direct purchase, mutual funds, or ETFs, providing flexibility and varied exposure.

Tax Implications: REITs enjoy pass-through status, but unitholders are taxed on dividend income and capital gains, with specific provisions for treatment and taxation.