InvITs issue units to the investors for the amount of investments made by them. However these units differ from traditional investments. Explain.

Answer 4(c) Comparative Analysis Infrastructure Investment Trust (InvITs) vis-à-vis Traditional Investments Particulars InvIT units Direct Investment in Infrastructure segment Infrastructure Company Equity Shares Investment Characteristics Minimum lot size of 1 unit Freely transferable listed securities Professionally managed No entry / exit load Nothing less than one crore (For strata units) Illiquid & non-transparent market Hassles in managing assets Transaction costs involved Minimum lot size of 1 share Freely transferable listed securities No entry / exit load Return Profile Returns driven by capital appreciation and regular cash distribution (90% mandatory) Returns driven by a timely and profitable exit Returns driven by capital appreciation and dividends (Not mandatory) Tax Efficiency Dividends: Exempted# Interest: Taxable# Rent: Taxable# Rent is taxable Dividends are taxable # Investors to check the type of income they receive and tax treatment