The essential idea
What is it?
A REIT owns income-producing real estate, while an InvIT owns or operates infrastructure assets. Investors participate through listed units without directly owning an office, mall, road, or power asset.
These products remain market-linked businesses. Occupancy, tenants, traffic, tariffs, leverage, refinancing conditions, and sponsor quality all influence outcomes.
The main types
REITs
Trusts holding eligible income-producing real estate.
InvITs
Trusts holding infrastructure such as roads, transmission, or renewable projects.
Fund exposure
Some mutual funds hold REIT or InvIT units within a broader mandate.
Risk at a glance
What can go wrong?
Typical range: Moderate to high. Actual risk depends on the product’s portfolio, implementation, and market conditions.
Operating risk
Vacancy, tenant stress, traffic, or project performance can affect cash flows.
Leverage and refinancing
Borrowing magnifies outcomes and increases interest-rate sensitivity.
Market risk
Listed prices fluctuate and can diverge from reported asset value.
Sponsor risk
Governance and the sponsor’s execution record matter.
Who may find it relevant?
Potentially relevant for
- ✓ Investors seeking listed real-asset exposure
- ✓ Diversified income-oriented allocations
- ✓ Those willing to analyse assets and sponsors
Be especially cautious if
- ! Anyone expecting fixed or guaranteed distributions
- ! Investors ignoring leverage
- ! Those expecting the experience of owning a home
What should you compare?
- 01Asset and tenant concentration
- 02Occupancy or utilisation
- 03Debt and refinancing schedule
- 04Distribution coverage
- 05Sponsor and governance record
Frequently asked questions
Are REITs the same as real-estate mutual funds?
No. A REIT directly holds eligible income-producing real estate through a trust structure; a fund may own property-related securities or REIT units.
Continue from education to evidence
Compare actual funds with context.
A category guide is a starting point, not a personal recommendation.