In the news
October 7, 2021
Individuals can diversify their portfolio if they invest in InvITs; more for InvITs with multiple assets. Investors can get a steady income and associated risks are significantly lower.
InvITs can be an effective retirement planning tool. Retirees have the option of getting risks redistributed and acquiring a fixed income.
InvITs are easy to enter and exit. This feature enhances the liquidity aspect. But, quick selling of high-valued properties may prove difficult for small investors.
If needed, investors can get professional management of their assets. Resources get allocated effectively and avoid fragmentation of holdings.
Investors get a fixed income from InvITs. 90% of the total net cash flow from an InvIT has to be distributed to those who have invested. Earnings from these investments are steady. In cases where InvITs have surplus cash flow, a dividend income on investments is received by investors.
Promoters can significantly reduce debt burdens through asset sales. Additionally, the proceeds from InvITs allow promoters to reinvest in other portfolio projects.