Write short notes on the followings: Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

Real Estate Investment Trusts (REITs) A Real Estate Investment Trust (REIT) is a collective investment scheme that owns, operates or finances income- producing real estate. REITs provide all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive, and revitalize. REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF). The stockholders of a REIT earn a share of income produced through real estate investment-without buying any finance property. Infrastructure Investment Trusts (InvITs) Whereas, considering the importance of infrastructure sector with an aim to provide a suitable platform for financing/refinancing infrastructure projects and allow the investors to participate in growth story of infrastructure, the Government introduced a new investment vehicle named Infrastructure Investment Trusts (InvITs) in 2014. The primary objective of InvITs is to promote the infrastructure sector of India by encouraging more individuals to invest in it. Typically, such a tool is designed to pool money from several investors to be invested in income- generating assets. The cash flow thus generated is distributed among investors as dividend income. When compared to Real Estate Investment Trust or REITs, the structure and operation of both are quite similar. An InvITs is established as a trust and is registered with the SEBI.