Demat Account: What are REITs and how to invest in them? MintGenie explains

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emat account has evolved beyond mere equity trading, now offering investors a spectrum of avenues to diversify their portfolios across various asset classes. Apart from stocks, investors can seamlessly venture into bonds, mutual funds, ETFs, as well as Real Estate Investment Trusts (REITs). Traditionally, Indians have favored real estate investments due to their potential for capital appreciation and steady rental income.

However, this required substantial capital, typically ranging from ₹50 lakh to ₹1 crore, especially in metropolitan areas. For investors seeking exposure to real estate without hefty investments, REITs provide a viable alternative. REITs enable individuals to participate in the real estate market without the need for a substantial corpus, offering accessibility and diversification.

Also Read: 4 key implications of insider trading regulations on demat account holders In this article, we will delve into the concept of Real Estate Investment Trusts and elucidate how investors can leverage their demat accounts to engage with them effectively. Real Estate Investment Trusts are investment vehicles that own, operate, or finance income-generating real estate across various sectors, such as commercial properties, residential complexes, or infrastructure projects. They allow individual investors to invest in real estate assets without directly owning or managing them.

REITs collect funds from investors and allocate them to real estate ventures such as office spaces and shopping malls. Subsequently, they distribute the generated returns to the investors. Also Read: Demat Account: How to gift shares? MintGenie explains Consider an example with "ABC REIT," which specialises in the ownership and management of