Minimum Amount To Invest In REITs

Wondering what the minimum amount to invest in REITs is and how you can get started?

Real Estate Investment Trusts (REITs) have made it easier than ever for individual investors to gain exposure to large-scale, income-generating real estate without owning property directly.

In India, REITs have become increasingly accessible to retail investors, thanks to progressive regulatory changes and simplified investment options.

Understanding the minimum investment requirement is essential for anyone looking to diversify their portfolio and earn stable, long-term returns through real estate-backed assets.

How Much to Invest in Real Estate Investment Trust?

Investing directly in listed REITs on the Indian stock exchanges (NSE and BSE) has become much more accessible. Previously, the minimum investment required was around ₹2 lakh, but SEBI’s regulatory changes have lowered this to ₹10,000–₹15,000, depending on the REIT’s unit price and brokerage fees.

This makes it easier for retail investors to participate in India’s real estate market with a relatively low capital outlay. For example, if a REIT unit is priced at ₹100, an investor can start with 100 units, totaling ₹10,000, plus any applicable brokerage and taxes.

At this stage, many investors naturally ask, how to make money investing in REITs? Understanding the minimum amount required helps investors see how returns are generated through dividends, rental income, and potential property appreciation.

By starting with the right minimum investment, investors can make their initial investment strategic, practical, and aligned with their financial goals.

Minimum Investment in REIT Mutual Funds India

REIT mutual funds, also known as Fund of Funds (FoFs), pool capital from multiple investors to invest in a diversified portfolio of REITs. These funds provide an indirect means of gaining exposure to the real estate sector. 

The minimum investment amount varies by fund house and scheme:

• SIP (Systematic Investment Plan): Some schemes allow investments starting from as low as ₹500 per month.
  
• Lump Sum Investment: Typically ranges from ₹5,000 to ₹10,000, depending on the fund’s policy.

So, an investor can begin investing in a REIT mutual fund with a monthly SIP of ₹500, accumulating exposure to a diversified portfolio of REITs over time.

How Much Should I Invest in REITs?

The amount to start investing in REITs depends on individual financial goals, risk tolerance, and investment horizon. For beginners, starting with a modest amount allows for learning and adjusting strategies without significant financial exposure. 

It’s advisable to assess personal financial situations and consult with a financial advisor to determine an appropriate investment amount.

For instance, an investor with a conservative risk appetite might start with ₹20,000 in a diversified REIT mutual fund, gradually increasing the investment as they become more comfortable with the asset class.

If you are interested in investing in REITs in India, then begin your journey now. To start, begin the process of opening a Demat account with a reliable stockbroker.

Still confused about choosing the right stockbroker? Fill in your details in the form below:

Conclusion

Investing in REITs in India is now more accessible, with minimum amounts from ₹10,000 for direct investments and as low as ₹500 for REIT mutual funds. This allows a wide range of investors to enter the real estate market, democratizing ownership.

With regulatory support and rising institutional interest, the future of REITs in India looks promising, offering stable returns and growth potential.

Still, it’s essential to evaluate your financial goals, understand risks, and consult a financial advisor to make informed investment decisions.

FAQs

Q1. What is the minimum amount required to invest in REITs in India?

The minimum amount to invest in listed REITs in India is typically between ₹10,000 to ₹15,000, depending on the unit price of the REIT and associated brokerage fees.

Q2. Can I start investing in REITs with a small amount?

Yes, REITs allow flexibility for small investors. You can begin with as low as ₹500 through REIT mutual funds via SIPs, making them accessible for all types of investors.

Q3. How much should I invest in REITs to begin with?

The amount you should invest in REITs depends on your financial goals and risk appetite. For beginners, starting with ₹20,000–₹50,000 in diversified REIT mutual funds or direct REIT units is a good starting point.