Know what is InvITs?
InvITs are a means of investment by which the infrastructure assets or projects of the companies can be kept at one place and the investors get the facility of getting regular income with small amount of money. It is an Alternative Investment Fund (AIF) which works like mutual funds. Its regulation is with the market regulator SEBI. In these, it is mandatory to give 90 percent of the net cash flow to be distributed to the unit investors. Along with this, the limit for investing in under construction assets has been fixed. InvITs are a good way to monetize assets.
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InvITs are a good option
Makes InvITs a sponsor. Through this, investment is made in infrastructure projects directly or through Special Purpose Vehicle (SPV). A government official said, “InvITs are a good option. There is a demand for long-term funds in the infrastructure sector. This will also give the EPFO an opportunity to diversify its investments.”
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