Unlocking Investment Opportunities: Understanding the World of REITs and Asset Tokenization
Introduction:
On March 20, 2024, Bengaluru hosted the 'ETMarkets Emerging Investment Opportunities' event in collaboration with Mudrex. The event aimed to guide both seasoned and novice investors towards diversified investment avenues beyond traditional equities. Among the esteemed speakers was Avijit Mishra, Co-Founder of Alt DRX, who delved into the intricacies of Real Estate Investment Trusts (REITs) and the burgeoning realm of asset tokenization.
Understanding REITs:
Mishra initiated the discussion by gauging the audience's familiarity with REITs, emphasising their significance in the investment landscape. He elucidated, «REITs are pooling vehicles wherein investors can collectively invest in a trust managing income-generating real estate.» With a focus on India's burgeoning market, Mishra highlighted, «Currently, there are four REITs regulated by SEBI listed on the NSE and BSE.»
Mishra underscored the accessibility of REITs, stating, «One of the most important benefits of REITs is the ability to own real estate assets in small ticket sizes, enhancing liquidity.» He further expounded on the asset classes permitted by SEBI, including commercial properties like offices, hotels, retail, industrial spaces, and healthcare facilities.
Benefits and Structure of REITs:
Enumerating the benefits, Mishra outlined, «REITs offer liquidity, transparency, asset quality, diversification, and regulated frameworks.» He detailed the structural
