Real Estate Investment Trusts (REITs)

- REITs are securities linked to real estate that can be traded on stock exchanges once they get listed

- Under it, REITs sell units to investors. This money is invested in real estate projects to earn rental income.

- The income is then distributed to unit holders. Besides regular income from rents and leases, gains from capital appreciation of real estate also form an income for the unit holders. 

 🔹Infrastructure Investment trusts (InvITs)

-InvITs are investment schemes similar to mutual funds. They allow investment from individuals and institutional investors in infrastructure projects to earn a portion of the income as return.

- They can be considered as a modified version of REITs designed to suit the specific circumstances of the infrastructure sector.

- They attract long term finance to invest in infrastructure projects such as roads or highways which take some time to generate steady cash flows.