The Success of InvITs – Part...

If you are not living under the rock, then chances are high that you might have stumbled upon terms such as InvITs & REITs, the latest progeny in the much-dreaded birth line of financially engineered products. The last large-scale experiment & greed thereto (recall CDOs CDS) resulted in the global recession. At the same time, the Indian populace at large was insulated from the direct inferno, but the aftermath left none unperturbed. The innocent ‘why’ does immediately rear its ugly head in our minds, but that is a discussion for another time. Painting the entire gamut with a single brush may not always be prudent. Hence, in the ever-dynamic & simultaneously evolving FOMO world, it is important to understand both the products in-depth and then makes an informed decision about the darkness of their hue. Starting as a novel investment vehicle to diversify the investor’s base while maintaining a delicate equilibrium between risk & rewards, both InviTs, and REITs have caught the imagination of the ultraconservative, FD-guzzling retail wealth of the country.

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