What is Infrastructure Investment Trust: 5 key points to know about InvIT
1.InvIT is a collective investment scheme that enables direct investment in infrastructure projects to earn a small portion of income as return.2.InvIT invests in assets that generate cash flow, such as roadways, highways and other high-value infrastructural projects.
3.The objective of InvIT is to promote the infrastructure sector of India by encouraging more investment.
4.The units of InvIT are listed on stock exchanges, which helps provide liquidity.
5.InvITs carry the risk of failure of projects, besides political and regulatory risks.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
This story originally appeared on: India Times - Author:Faqs of Insurances
