Скачать или смотреть How to Earn From Toll Tax?

Infrastructure investment trusts are a form of investment instrument that is similar to a mutual fund. This investment form is regulated by SEBI (Securities and Exchange Board of India).

Infrastructure investment trusts own, operate, and manage revenue-generating infrastructure projects and assets. In the long term, these assets earn cashflows which are distributed to the investors.

When investing in InvITs, investors must be cautious about the following risks.

Operational risks: There can be delays in collection, ad hoc expenses, or even tariff changes. All these affect the cashflows of the business. Hence it is important to invest in them with quality assets.

Refinancing risk: Debt is the major source of funding for most infrastructure projects. Fluctuations in interest rates can pose a refinancing risk. Hence it is important to choose assets with an AAA rating.

Regulatory risks: They are considerably new to the investing space and have strict regulations. Hence any regulation changes can impact the cashflows.

Return risk: Public InvITs trade on the stock exchange just like equities. Also, they can be exposed to capital gains and losses. Apart from this, the cashflows can vary for different years as they depend on the underlying businesses