Posts

Showing posts from December, 2020

REITs in India

Image
Visit our site with comprehensive information on investing REITs and InvITs in India (books on REITs in India, blogs, videos on REITs in India, training for REITs in India): https://reitspro.com/ https://reitspro.com/ Find out more about REITs (links that you may visit): The ultimate REITs Primer: A book on REIT investing in India Which type of investors find investment in REIT/ InvIT suitable for their needs? Financial and Investment Planning: Advantage REITs REITs Book: Table of Content s REITs Book: Chapters described in brief Interactive workshops on REITs & InvITs are conducted for those interested in an in-depth understanding. If you are interested in a webinar/ workshop, send a mail with the caption "REIT Workshop" to:  Books By Gaurav Jain (Amazon links) REIFA or Real Estate Investment & Financial Analysis (published in 2017) REITs & InvIts Primer (published in 2020)  

Which type of investors find investment in REIT/ InvIT suitable for their needs?

The current write-up seeks to explore the following Q & A: Qs: Which type of investors find investment in REIT/ InvIT suitable for their needs? Ans:The investment is ideal for any investor with a risk-return profile falling between equity and debt.   v   In India, investment in REITs/ InvITs is highly regulated by SEBI and it is now possible for any investor (retail or institutional) to invest in them through stock exchanges. v   Investment is undertaken in exchange tradeable instruments which are termed as “units” v   These units of REITs/ InvITs are issued by special financial vehicles which source money from various investors and invest the same in income generating real estate assets/ infrastructure. v   The legislative framework  provides safety to investors and the taxation framework gives these vehicles a pass-through status to benefit the investors by avoiding multiple taxation points v   The units represent a proportionate...

Investment Planning: Advantage REITs

  Investment Planning: Advantage REITs REITs stand for real estate investment trusts, and REIT units are useful financial products for investment planning purposes. To understand their utility in investment planning, we start with ignoring the part of real estate and we look at them solely as financial products. We analyze the products in comparison to the most widely-used financial products and then extrapolate their usage for financial and investment planning. The two major categories of investment, traditionally, are debt investment and equity investment. Debt investment aims at generating regular returns during the investment period whereas equity investment largely aims at capital appreciation. Debt investors want steady income, safety of investment and avoid risks of equity markets. Although they get regular and steady income stream with debt investments, they are always in danger of losing out on capital appreciation because long time-frames have exponential cyclical ups...

Retirement Corpus planning & REITs

  It is a known fact that REIT and InvIT investments are a favorite of pension funds like the Canadian firm, Brookfield or the Singapore Pension fund, GIC. Here we explore the reason for the same.  The Canada Pension Plan Investment Board (CPPIB) has invested in Embassy REIT, GIV has invested in indigrid InvIT and Brookfield has even come out with its own REIT in 2021. The reasons for their preference of REITs are explored below: A) What do these investors seek: Investors seek regular cash-flows. They also wish to protect their capital over time as one of the biggest fears is inflation eating into capital. B) Disadvantages/ Shortcomings of a typical corpus fund yielding interest (debt investing):  Longevity may prove to be a bane for these individuals as capital gets eroded or the inflation makes their cash flows inadequate. The advantage offered by REITs counter the above problems. This advantage is inherent in the way REITs assets perform and...