How To Invest In InvITs?

Tavleen Kaur | | InvITs | No Comments

InvITs are investment pools that collect money from multiple investors (similar to a mutual fund) and utilize it to acquire and manage infrastructure projects. But how to invest in InvITs in India?

How to Invest in InvITs in India?

InvITs are important as they help any country grow by bringing more money into infrastructure, which everyone needs. They aim to give investors a steady income stream through regular dividend payouts.

Isn’t it an attractive source for passive income?

So, if you are looking for any such investment option, then here is how to begin your investment:

Steps to Investing in InvITs

Understand the Types – InvITs are broadly classified into Public InvITs (listed on stock exchanges and available to retail investors) and Private InvITs (for institutional and large investors).
Check Eligibility – Retail investors can participate in Public InvITs with a minimum investment amount, usually starting from around ₹10,000.
Open a Demat Account – Since Public InvITs are listed, you need a Demat and trading account just like for equities. You can choose any broker like Zerodha, Groww, Angel One, offering options to invest in InvITs.
Select the InvIT – Study available options such as IRB InvIT Fund, PowerGrid InvIT, or others. Look at their past performance, yield, and underlying assets.
Invest via IPO or Secondary Market – You can invest in InvITs when they launch their IPO, or buy/sell them on the stock exchange later.
Track Returns – Returns typically manifest as regular payouts and potential price appreciation on the exchange.

If you are interested to invest in InvITs in India then begin your journey now .To start begin the process of opening a Demat account with reliable stock brokers.

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Who Can Invest in InvITs?

So, as already mentioned, Infrastructure Investment Trusts (InvITs) are investment vehicles that allow individuals and institutions to invest in income-generating infrastructure assets, such as highways, power plants, and telecom towers, without directly owning or managing them.

They are designed to provide regular, predictable income along with potential capital appreciation, making them suitable for investors with a moderate risk appetite.

InvITs can be an attractive option for:

Retail investors seeking stable, recurring income.
Institutional investors are seeking long-term exposure to infrastructure.
Portfolio diversifiers aim to balance growth-oriented assets (like equities) with income-generating instruments.

By investing in Public InvITs, investors can benefit from quarterly payouts, professional management of infrastructure assets, and exposure to long-term economic growth, without the complexities of direct ownership.

What Is The Minimum Subscription Amount For Public InvITs?

While understanding how to invest in InvITs, one thing that excites new investors is how affordable it has become. SEBI’s move to lower the entry limit now lets even small investors take part in India’s infrastructure growth.

Earlier, the minimum investment was ₹1,00,000, which kept small investors on the sidelines.
Now, you can start with just ₹10,000 to ₹15,000, making it easier for retail investors to join the game.
This change has opened doors for many to participate in India’s growing infrastructure sector without needing huge capital.
All you need is a Demat account, choose a listed or upcoming Public InvIT, check the issue details, and invest with a few clicks.
Additionally, investors can enjoy steady dividend income from infrastructure assets — a benefit that was previously limited to large institutions.

Investing in InvITs is now simple, affordable, and accessible — a smart step toward building a diversified portfolio.

Benefits of InvITs

Here are a few benefits of investing in InvITs in India:

Regular Income: Investors receive dividend or interest income, making them attractive to those seeking a stable cash flow.
Diversification: Exposure to infrastructure reduces dependence on stock market volatility.
Liquidity: Since they’re traded on exchanges, Public InvITs are more liquid compared to direct infrastructure investment.
Accessibility: Retail investors can access large infrastructure assets with relatively small ticket sizes.

Risks of InvITs

Well, there are benefits, but like other investment products, there are risks too.

So, before you plan an investment, consider the following risks associated with investment in InvITs.

Market Risk: Like stocks, their value fluctuates on the exchange.
Regulatory Risk: Changes in government policies can affect profitability.
Project Risk: Delays in toll collection or lower than expected traffic can reduce returns.
Limited Track Record: InvITs are still new in India, so long-term performance data is limited.

Conclusion

InvITs bridge the gap between infrastructure developers and investors by channeling funds into essential projects while providing investors with regular income and diversification.

While they carry certain risks like any other market linked product, InvITs are an excellent option for those looking to tap into India’s booming infrastructure sector without directly owning or managing assets.

For retail investors, InvITs offer an opportunity to participate in the nation’s growth story with relatively small investments.

FAQs

Q1. How can I invest in InvITs in India?

You can invest in Public InvITs through a Demat account, either via IPOs or by buying units on the stock exchange.

Q2. What is the minimum amount required to invest in InvITs?

Retail investors can usually start with around ₹10,000 in Public InvITs.

Q3. What kind of returns do InvITs offer?

Returns generally come from regular income distributions (dividends/interest) and potential unit price appreciation.

Q4. Are InvITs safe for beginners?

They carry moderate risk less volatile than stocks but still affected by market, project, and regulatory risks.

Q5. Who should consider investing in InvITs?

They are suitable for investors seeking steady income, portfolio diversification, and exposure to infrastructure without managing assets directly.

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