REIT: Here’s all you need to know
Live MintReal estate investment trusts are collective investment vehicles that operate and manage property portfolios and give returns to investors. There are three types of REIT available: equity REITs which purchase, own and manage income-generating properties; mortgage REITs which lend money directly or indirectly to real estate owners; and hybrid REITs which are a combination of the first two, according to a report by Care Ratings. The structure of a REIT is similar to the structure of a mutual fund, but the money is invested in commercial real estate rather than equities and fixed income securities, said Vishal Dhawan, founder, Mumbai-based Plan Ahead Wealth Advisors. “REITs help the investors get exposure in properties from all geographies and of all sizes, which may not be possible while investing in real estate directly,” he said.