What Is a Real Estate Investment Trust (REIT), and How to Invest in a REIT IPO using UPI in Angel One?

A Real Estate Investment Trust (REIT) is a company that pools funds from multiple individuals to invest in income-generating real estate. Similar to mutual funds, REITs allow people to earn from real estate without the need to buy or manage it. Investing in real estate in India is cumbersome and requires thorough research. However, REITs have a transparent and liquid structure, with 90% of the income generated being paid to investors as dividends and only 10% retained by the company. Most REITs invest in commercial real estate and lease it out, with the income distributed among investors. Mortgage REITs finance projects, with interest earned as dividends.

REITs are similar to shares of a publicly traded firm, REIT units can be purchased and are listed on exchanges. Investors can purchase shares in REIT mutual funds or exchange-traded funds in addition to publicly listed REITs.