KNOW ABOUT THE INVESTMENT INSTRUMENTS CALLED InvITs

KNOW ABOUT THE NEW INVESTMENT INSTRUMENT -------INFRASTRUCTURE INVESTMENT TRUST InvITs

Invits are like mutual funds here a sponsor raises capital and invest in infrastructure assets such as road , highways , power transmission lines

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Invit as a viable investment opportunity depends upon how much you understand the instrument The returns of invits depends on two things 1. Utilisation of the asset underlying in invits 2. Addition of new assets to the portfolio

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Which are the publicly listed invits? Indigrid Powergrid IRB

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returns that invits generate as of august 2021 india grid invits has generated return of 56% IRB has generated return of 83% Powergrid has generated return of 20%

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Experts say there can be invits post tax returns of 7-9% which can help you beat inflation

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If the invits underlying assets Becomes zero or less in value due to depreciation and if the invits does not add new assets it could be a bad news for investors

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Taxation on invits Short term capital gains tax 15% Long term capital gains tax 10%

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