One can enjoy a number of benefits by investing in REITs, here’re some of the key advantages associated with REITs;
- High dividend yield as REITs payout 90% of their total taxable earnings as dividends to shareholders.
- Investing in REITs helps to diversify a client’s investment portfolio.
- Tradable securities; Listed REITs can be traded on the stock exchanges similar to stocks, and other tradable instruments.
- High liquidity: Buying and selling of REIT investment instead of physical properties are comparatively highly liquid.
- REITs are strongly regulated by SEBI REITs regulations 2014.
- Less minimum subscription capital requirements avail small investors to undertake investment in REITs.
- Disclosure of financial information and other important business facts provides transparency advantages.
