Correlation of Indian REITS with equity and bond market, and how it fits into the portfolio of an Indian investor

Abstract

Real Estate Investment Trusts (REITs) are investment vehicles that allow individuals to invest in real estate properties without directly owning them. Instead, REITs pool money from multiple investors and use it to purchase and manage a portfolio of income-generating real estate assets, such as office buildings, shopping malls, apartments, and hotels. History of REITs dates to the early 60s, when the U.S.A Congress passed the REIT Act of 1960. This legislation initiated a new type of investment vehicle, by which small investors could take part in large-scale, income-generating real estate ventures. Its structure al lowed investors to pool their capital and invest in a diversified portfolio of real estate assets. Today, REITs have become a popular investment option for individuals and institutions alike. In addition to providing investors with a way to invest in real estate without the hassle of owning and managing properties themselves, REITs also offer the potential for steady income through dividends and the potential for capital appreciation. REITs are traded on major stock exchanges, and there are many different types of REITs that invest in different types of real estate assets and use different investment strategies.