Distinguish between Real Estate Investment Trusts (REITs) and Infrastructure Investment Trust (InvITs) with reference to brief concept, growth prospect, income stability and associated risks.

Difference between Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) Basis of Difference REITs InvITs Brief Concept REITs serves as an investment tool that helps own and operate income generating real estate properties. Such properties serve as a stream of annual revenue and mostly include warehouses, healthcare centres, commercial buildings, malls, etc. InvITs is planned to pool money from investors to invest it in assets generating cash flow. Moreover, they invest in projects like roadways, highways and other high-value infrastructural units. Growth prospect The growth prospects of REITs rely on the redevelopment or acquisition of assets, new construction, etc. Their growth prospect depends mainly on the success of acquisition and concession of assets. Income Stability REITs tend to provide a steady flow of income mostly because their income yielding properties come with extensive rental contracts. The stability of income for InvITs depends mainly on those factors that tend to affect the capacity of usage and also the scalability of tariffs. Hence, in most cases, income is quite uncertain. Associated risks REITs are better from insulated regulatory/political risks. REITs tend to hold properties that are either leased or owned on a freehold basis. The infrastructure sector is prone to react to regulatory policies and political interference. Thus, parking funds in infrastructure investment trusts often prove risky.