About InvITs
An Infrastructure Investment Trust (InvIT) is a SEBI-regulated vehicle that pools money from investors to fund income-generating infrastructure projects — such as highways, power lines, and telecom towers. Like a mutual fund, an InvIT distributes most of its cash flows (tolls, tariffs, etc.) to unit-holders.
Key features
- Distribution requirement: InvITs are mandated to distribute at least 90% of net distributable cash flows to investors, typically half-yearly.
- Underlying assets: Primarily operational, revenue-generating infrastructure — highway tolls, power tariffs, and similar.
- Market liquidity: Publicly listed InvITs trade on the NSE/BSE, so units can be bought or sold through a Demat account.
Risk note: InvIT distributions and unit prices are market-linked and can fall as
well as rise. Past distribution levels are not a guarantee of future payouts.