InvIT – Infrastructure Investment Trust – is India’s revolutionary way to invest in roads, power transmission lines, telecom towers, pipelines, and other infrastructure assets. Launched in 2014 and listed since 2017, InvITs are making high-yield infra investing available to retail investors from just ₹100 per unit. Think of it as the “REIT for roads and power lines”.
What exactly InvIT in India?
An InvIT (Infrastructure Investment Trust) is a trust registered under the SEBI that invests pooled funds in infrastructure assets. Think of an InvIT as similar to a mutual fund — but instead of stocks, it invests in roads, power-transmission lines, toll highways, pipelines, renewable-energy assets, telecom towers and other long-term infrastructure.
InvITs make it possible for everyday retail investors and institutions alike to own a slice of India’s infrastructure — without the burden of managing assets themselves.
How InvITs Work: Structure and Returns
InvITs are set up by a “sponsor” — usually an infrastructure company or a developer — which transfers ownership of assets to the trust. Then, the trust issues “units” to investors, who become unit-holders. An independent trustee oversees the assets, while an investment manager handles allocation and asset performance.
Because many infrastructure assets generate steady cash flows — for example, tolls or transmission-tariff revenues — InvITs tend to deliver stable income. Moreover, as per regulations, an InvIT must distribute at least 90% of its net distributable income to investors. Also, under SEBI norms, at least 80% of InvIT assets should be in completed and income-generating infrastructure projects. The rest (up to 20%) may be in under-construction projects or certain approved securities
Benefits of InvIT for Retail and Institutional Investors:
Investing in an InvIT in India offers several advantages. First, investors enjoy stable cash flows because infrastructure assets generate steady revenue. Second, InvITs provide diversification since returns are not tightly linked to equity market volatility. Another benefit is tax efficiency. Many distributions from InvITs—such as dividends from SPVs that paid the right taxes—are tax-free for unitholders. Therefore, investors often choose InvITs to balance risk and income.
Moreover, InvITs offer liquidity when they are listed on stock exchanges. Investors can buy or sell units easily. In addition, the regulated structure ensures transparency. SEBI publishes regular compliance updates, which helps investors track performance.
InvIT’s Future in India: Unlocking Infrastructure’s Potential
With growing demand for infrastructure and policy support from the government, InvITs are positioned for a big leap. As India aims to meet enormous infrastructure needs by 2030, InvITs will likely play a central role in financing roads, renewables, rail-related projects, logistics and urban infrastructure.
In addition, as more assets get monetised, and more institutional investors enter, InvITs could emerge as a mainstream asset class — offering steady income, diversification, and long-term value. However, educating retail investors, improving liquidity, and ensuring strong governance remain key.
Conclusion:
InvIT in India is more than just another financial product — it’s a bridge between traditional investors and large-scale infrastructure assets. With regulation, professional management, and growing market size, InvITs offer a transparent pathway to invest in roads, power, logistics, and more. The future of Indian infrastructure now trades in your demat account!
– Ketaki Dandekar (Team Arthology)
Read more about InvIT here – https://groww.in/investment-trust