NSE Indices Ltd, a subsidiary of National Stock Exchange (NSE), has launched India’s first ever Real Estate Investment Trusts Index (Reits) and Infrastructure Investment Trusts Index (InvITs).
Key Points Of Reits and InvITs Index
- Real Estate Investment Trusts Index (Reits) and Infrastructure Investment Trusts Index (InvITs) has been launched to track the performance of REITs and InvITs that are publicly listed and traded on the NSE.
- Real Estate Investment Trusts Index (Reits) and Infrastructure Investment Trusts Index (InvITs) are investment vehicles that own revenue-generating real estate and infrastructure assets, providing diversification and regular income.
- The Nifty Real Estate Investment Trusts Index (Reits) and Infrastructure Investment Trusts Index (InvITs) tracks the performance of publicly listed REITs and InvITs, providing a market-representative benchmark for active funds.
Features Of Reits and InvITs Index
- The Real Estate Investment Trusts Index (Reits) and Infrastructure Investment Trusts Index (InvITs) has a base date of July 1, 2019, a base value of 1,000 and will be reviewed and rebalanced quarterly.
- The weights of securities within the index are based on free-float market capitalization, subject to a security cap of 33% each. The average weight of the top three securities is capped at 72%.
- Since its inception, the index has delivered a total return at a compounded annual growth rate (CAGR) of 10.48%, including dividends, with a price return of 0.22%.
- The index comprises three sectors: realty, power, and services, weighing 57.5%, 35.6%, and 6.8%, respectively.
- It includes six companies: Embassy Office Parks REIT, POWERGRID Infrastructure Investment Ltd., Mindspace Business Parks REIT, India Grid Trust, Brookfield India Real Estate Trust, and IRB INVIT Fund, with weights of 32.95%, 20.27%, 15.35%, 15.34%, 9.22%, and 6.87%, respectively.
Details Of Reits and InvITs Index
National Stock Exchange of India Limited
- The National Stock Exchange of India Limited (NSE) is India’s largest financial market
- National Stock Exchange was incorporated in the year 1992 to bring about transparency in the Indian equity markets.
- National Stock Exchange of India Limited was the first exchange in India to provide modern, fully automated electronic trading.
- Headquartered in Mumbai, the National Stock Exchange of India Limited (NSE) conducts transactions in the wholesale debt, equity, and derivative markets.
- It allows for new listings, initial public offers (IPOs), debt issuances and Indian Depository Receipts (IDRs) by overseas companies raising capital in India.
- S&P CNX Nifty is the benchmark index introduced by NSE.
- Some of its other indices are CNX Nifty Junior, India VX, S&P CNX Defty, S&P CNX 500, etc.
- The exchange offers clearing and settlement services through its wholly-owned unit, the National Securities Clearing Corporation set up in 1995
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