How to Invest in REITs in Zerodha

If you’re looking to diversify your portfolio with real estate but don’t want the hassle of directly buying property, Real Estate Investment Trusts (REITs) can be a great option. Zerodha, India’s largest online stock brokerage firm, makes investing in REITs simple and accessible through its trading platform, Kite. Let’s get into the detail of how to invest in REITs in Zerodha 

How to Invest in REITs in Zerodha Online

 With Zerodha, you can buy and sell REIT units just like stocks, track their performance in real time, and manage your investments seamlessly. 

Along with its user-friendly interface, Zerodha provides educational resources and tools that make it easier for both beginners and experienced investors to understand and invest in REITs.

Here are the steps you can follow to invest in REITs in India using the Zerodha platform: 

Open Demat Account with Zerodha

First of all, you need to open a Demat and Trading account with Zerodha. You can open an account online for FREE by following a few simple steps below: 

1. Visit the Zerodha website or download the Kite app.
2. Complete the KYC process by submitting your identity and address proofs.
3. Link your bank account to facilitate smooth transactions.
4. Once your account is active, you’re ready to invest.

Research Available REITs

You don’t want to invest in just any REIT without careful consideration. Research is key. In India, some of the most popular REITs include:

• Brookfield India Real Estate Trust
• Embassy Office Parks REIT
• Mindspace Business Parks REIT
• Nexus Select Trust REIT

What to watch while selecting a REIT:

• Portfolio quality: What kind of properties does the REIT own? Commercial real estate in good locations would be preferred.
• Occupancy and collection of rents ratio: This indicates the stability of the REIT’s income.
• Management team: A seasoned management team will take care of the REIT, being managed efficiently.

Tip: You can see thorough details of REIT performance from Zerodha’s Kite platform or other financial websites.

Invest in Selected REITs in Zerodha

After researching, it’s time to make an application for REIT IPOs. Here’s how to invest in REIT in Zerodha online in Zerodha Kite mobile app or web:

How to Invest in REITs in Zerodha Kite Mobile App?

1. Click on Orders.
2. Click on IPO.
3. Choose the REIT IPO that you want to apply for from the list.
4. Click Apply and input your UPI ID.
5. Select or modify the Quantity and Price. The quantity should be a multiple of the lot size, and the price should fall in the issue price band.
6. Mark the Undertaking box and swipe to authenticate.
7. Accept the mandate on your UPI app.

How to Invest in REITs in ZerodhaKite Web?

1. Click on Orders.
2. Click on IPO.
3. Click on Apply.
4. Enter the UPI ID, the Quantity, and the Price (the same applies to the mobile version).
5. Mark the Undertaking box and click.
6. Accept the UPI mandate in your UPI app.

IPO bids can be placed between 10:00 AM and 4:30 PM on the issue opening and closing days. Zerodha initiates an email to accept the UPI mandate, and you can view the bid status the next day on the NSE website.

Conclusion

Investing in REITs through Zerodha is a straightforward and effective way to gain exposure to the real estate sector. 

Invest safely following the above-stated steps. Effective research, keeping your investment objectives in mind, and seeking advice from a financial advisor if necessary, should always be practiced.

FAQs

Q1: Is it possible to invest in REITs through Zerodha’s Coin platform?

No, Coin is a mutual fund alone. REITs are listed on the share market, and therefore, you require a trading account to invest in REITs.

Q2: I want to know the amount to invest in a REIT.

The minimum amount would vary based on the lot size of the REIT. For instance, Nexus Select Trust REIT had a lot size of 150 units at about ₹95-₹100 per unit.

Q3: I want to withdraw my REIT IPO application.

Once you apply, you cannot withdraw your application for the REIT IPO. But if there is some fault in the UPI ID, you can use Netbanking ASBA as an alternative route.