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Channel: ET Money
For years, Real Estate Investment Trusts (REITs) have been one of the most convenient ways to own commercial real estate – office parks, malls, the kind of property most of us could never buy directly.
But investing in them came with two frictions: there was no mutual fund that let you hold them conveniently, and the taxation was genuinely painful to deal with.
Both of those problems are finally being solved.
India is set to have its first-ever REIT mutual funds and two new fund offers (NFOs), one from Edelweiss and one from WhiteOak, are already open.
If you’ve ever held a REIT directly, you’ll know the distributions get split into interest, dividends, capital repayments and more, and each of them are taxed differently. Inside a mutual fund wrapper, all those complications go away.
In this video, we break down India’s first-ever REIT mutual funds, how they’re built, how they differ, and whether they are suitable for you.
The Edelweiss fund is a passive index fund while WhiteOak’s is actively managed and blends REITs, InvITs plus equity.
Chapters:
00:00 India’s first REIT mutual funds
02:15 REIT mutual funds composition
05:45 The tax problem these funds solve
08:18 Performance of REIT index vs Nifty 500
11:35 Conclusion
Both NFOs are available on the ET Money app: https://bit.ly/4hSrVAt
Want to go one step deeper? Check out our video on India’s top REITs and InvITs: https://www.youtube.com/watch?v=n0l-LtDp0nE
Subscribe to ET Money for more such data-backed investing and personal finance insights: https://www.youtube.com/@ETMONEY
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Video length: 12:59