- An Infrastructure Investment Trust (InvITs) is like a mutual fund, which enables direct investment of small amounts of money from possible individual/ institutional investors in infrastructure to earn a small portion of the income as return.
- InvITs can be treated as the modified version of REITs designed to suit the specific circumstances of the infrastructure sector.
- InvITS are like mutual funds in structure.
- InvITs can be established as a trust and registered with Sebi.
- An InvIT consists of four elements: 1) Trustee, 2) Sponsor(s), 3) Investment Manager and 4) Project Manager.
- Why in news? SEBI granted permission to three companies to launch the trusts