Real estate investment requires a large amount of money, but sometimes it can also yield huge returns. Before investing in a plot, flat, or commercial property, other investment options like REITs can also be considered. Real estate investment trusts (REITs) allow investors to invest in this sector without purchasing actual property. These often invest in various property projects and give investors an opportunity to gain economic benefits in this segment.
How does it work?
By investing in REITs, a person does not invest his money in real property, but buys shares in the name of the company that invests in real estate property. Through shares, a person becomes a shareholder of that property and receives a share of the monthly or annual income. It gives investors the opportunity to have an exchangeable stake in the real estate segment without directly purchasing the actual property. Before investing through REITs, investors should pay attention to the risks and returns so that the right investment decision can be taken.
SEBI (Securities and Exchange Board of India) has made many rules and guidelines for REITs. According to these guidelines, REITs have to follow certain parameters for investment. These guidelines ensure that shareholders receive benefits in the form of dividends or interest on a regular basis.
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Now you can start investing with Rs 10 thousand
The quantity of shares and the minimum investment amount have recently been changed, allowing more people to invest in REITs. The minimum investment amount in REIT was earlier Rs 2 lakh, which was reduced by SEBI to Rs 50,000. Later it was again reduced to Rs 10,000-15,000. SEBI also reduced the trading lot from 200 units to one unit. By investing in this, investors can get fair returns from the market. In the financial year 2020-21, it has given an average return of 6-7 percent to investors.
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