InvITs, or Infrastructure Investment Trusts, are gradually becoming the “go-to” choice for investors who love passive income but don’t want the uncertainty that comes with the stock market’s mood swings. And let’s be honest—who doesn’t want a stable monthly or quarterly payout, right?
Picture this: you’re sipping your morning chai, scrolling through your portfolio, and every quarter a fat dividend lands in your bank account – rent collected from airports, power transmission lines, highways, and data centres – without ever having to chase a tenant, fix a leaking roof, or pay society maintenance. Sounds too good to be true? Welcome to the world of InvITs!
If you’ve been wondering “What is InvIT?” lately, you’re not alone. Since 2021, retail money pouring into Infrastructure Investment Trusts (InvITs) has jumped more than 15×, and in 2025 the buzz is louder than ever. Mutual fund houses can’t stop launching InvIT-focused funds, WhatsApp groups are flooded with “buy this InvIT” tips, and even your uncle who still keeps money in fixed deposits is asking questions.
So let’s cut through the jargon and answer the two questions on everyone’s mind: What exactly is InvIT, and more importantly, how do you actually invest in InvITs in India without getting tangled in paperwork or losing your shirt?
Buckle up – this is going to be fun.
What is InvIT, Really?
InvIT stands for Infrastructure Investment Trust – think of it as a mutual fund that owns finished, cash-generating infrastructure assets instead of stocks or bonds.
Having said that, here’s the simplest way I explain it to my cousins: An InvIT is like becoming a part-owner of Delhi Airport, Mumbai-Pune Expressway, or a bunch of power transmission towers – but you don’t need ₹10,000 crore. You just buy units the same way you buy shares.
Launched by SEBI in 2014, InvITs were literally created to let normal folks like you and me fund India’s insane infrastructure boom and earn juicy dividends in return.
The Two Flavours of InvITs You’ll See in India
- Publicly Listed InvITs – Trade on NSE/BSE just like stocks (e.g., IndiGrid InvIT, PowerGrid InvIT, IRB InvIT). You can buy 1 unit or 10,000 units.
- Privately Placed InvITs – Only for big boys (institutions and high-net-worth folks). Retail investors can’t touch these directly.
99% of retail excitement in 2025 is around the four publicly listed ones:
- IndiGrid InvIT Fund
- PowerGrid Infrastructure Investment Trust (PGInvIT)
- IRB InvIT Fund
- India Infrastructure Trust (owned by Brookfield – trades less, but still public)
Why Are People Going Crazy About InvITs in 2025?
Because the math is mouth-watering.
- Dividend yields hovering between 8%–14% per annum (paid quarterly – yes, every 3 months!)
- Most of the income (90%+) has to be distributed to unit holders – by law.
- Lower volatility than mid-cap stocks.
- Your money is parked in hard assets – highways don’t go bankrupt like companies sometimes do.
- Tax perks that make your CA smile (more on this later).
Compare that to your bank fixed deposit crying at 6–7% pre-tax, and you’ll see why WhatsApp is exploding.
How Do InvITs Actually Make Money?
Imagine a toll road. Cars zoom, toll is collected, operating costs are paid, and the leftover cash is almost pure profit. That profit has to be given to you – the unit holder.
Typical revenue streams inside an InvIT portfolio:
- Toll collections (highways)
- Transmission charges (power lines – literally paid by Discoms for using the wires)
- Annuity payments (some roads get fixed payments from NHAI irrespective of traffic)
- Rental from telecom towers or data centres
- Airport fees in the future (yes, the pipeline is coming!)
Since most projects are already built and running (“brownfield”), there’s no construction risk. Cash flows are predictable like clockwork.
How to Invest in InvITs in India – Step-by-Step
Ready to jump in? Here are four ways, from easiest to slightly pro-level.
Method 1: Buy Directly on the Stock Exchange
If you already have a demat account, congratulations – you’re 5 minutes away.
- Open your trading app (Zerodha, Groww, Upstox – anything works).
- Search for the InvIT by its full name or symbol:
- IndiGrid → INDIGRID
- PGInvIT → PGINVIT
- IRB InvIT → IRBINFRA-IV (a bit confusing, I know)
- Place a buy order in the “Equity” or “Other” segment (not F&O).
- Minimum lot? Usually just 1 unit now (SEBI relaxed rules in 2023–24).
- Done. You’re now a proud infrastructure landlord!
Pro tip: Prices range between ₹90–₹140 per unit in Nov 2025. So ₹10,000 can buy you a decent chunk.
Method 2: Invest Through Mutual Funds
Too lazy to track four InvITs? Let the pros do it.
These funds have launched in the last 18 months and are exploding:
- HDFC InvIT Fund of Fund
- ICICI Prudential Infrastructure Investment Trust FoF
- Tata Ethical Fund now has a big InvIT allocation
- Even debt funds are mixing 10–20% InvITs for higher yield.
SIP from ₹100 possible. Perfect for beginners.
Method 3: New Fund Offers (NFOs) of InvITs
Sometimes sponsors launch fresh InvITs (like Embassy Office Parks did with REITs). Jump in during NFO if you want units at ₹100 face value before they start trading at premium/discount.
Method 4: Debt Portion – InvIT Bonds
Some InvITs also issue NCDs (non-convertible debentures) with 9–10% coupon. Slightly different animal, but yummy fixed-income play.
Taxation of InvITs
This is where InvITs beat the pants off most investments.
- Dividends → Tax-free in your hands for most part (sponsor pays tax before distribution under current rules).
- Interest income (small portion) → Taxed at slab.
- Capital gains
- If you sell units held >24 months → LTCG 12.5% (no indexation now, sorry).
- <24 months → 20% STCG (Budget 2024 change).
- Bonus: You can set off capital losses against InvIT gains.
Compare this with rental income (30% tax + cess) and suddenly owning physical property feels like the 1990s.
Risks
Let’s keep it real:
- Interest rate risk → If rates rise sharply, unit prices can dip (though dividends stay safe).
- Regulatory risk → Government can change toll rates or transmission tariffs.
- Sponsor risk → If the sponsor (IndiGrid is backed by KKR, PGInvIT by PowerGrid Corp) messes up, you feel the heat.
- Liquidity → Not as liquid as Nifty stocks; bid-ask spread can be wide on bad days.
But honestly? For a 10–12% yield asset, these risks feel pretty tame.
Which InvIT Should You Buy in November 2025?
| InvIT | Sponsor | Main Assets | Approx Yield (2025) | Unit Price Range | My Two Cents |
| IndiGrid | KKR & Sterlite Power | Power transmission + solar | 12–14% | ₹125–135 | Most aggressive, highest yield |
| PGInvIT | PowerGrid Corp | Power transmission lines | 9–11% | ₹90–100 | Safest – government backing vibe |
| IRB InvIT | IRB Infrastructure | Highways (toll + annuity mix) | 10–12% | ₹65–75 | Cheap, slightly riskier traffic |
| India Infra Trust | Brookfield | Pipelines + highways | 8–10% | ₹100–110 | Steady Eddie |
InvIT vs Other Investments
| Feature | InvIT | FD | Bond | Debt Fund |
| Return | 7–12% | 6–8% | 6–10% | 5–9% |
| Liquidity | Moderate | High | Low–Moderate | High |
| Volatility | Low | None | Low | Low |
| Risk | Low–Moderate | Low | Low–Moderate | Low |
| Tax Efficiency | Medium–High | Low | Medium | Medium |
InvITs beat FDs and many bonds in returns, but they also carry moderate risks. They’re ideal for investors wanting a balance of stability and higher yield.
FAQs
Q: Is InvIT better than REIT?
A: Apples and oranges. REITs = commercial offices/malls (growth + moderate yield). InvITs = stable cash cows with higher yield but lower capital appreciation.
Q: Can I get a loan against InvIT units?
A: Yes! Banks have started accepting them as collateral (up to 50% LTV).
Q: Are dividends guaranteed?
A: Not guaranteed, but 90% distribution is mandatory, and assets are annuity-style – so pretty close.
Q: Should I invest all my money in InvITs?
A: Hell no! 10–25% of portfolio is the sweet spot for most people.
Q: What’s the minimum investment?
A: Literally ₹90–₹140 if buying directly. Mutual fund route = ₹100 SIP.
Q: Will InvITs crash if the stock market crashes?
A: They dip, but nowhere close to mid-caps. March 2020, IndiGrid fell only 25% vs Nifty’s 40%.
Conclusion
By now you should have zero confusion about “What is InvIT?” and a crystal-clear roadmap on how to invest in InvITs in India.
The beauty is this: India needs ₹100+ lakh crore for infrastructure by 2030. The government can’t fund it alone. That’s where you and I come in – buying tiny slices of the next 50 years of growth and getting paid handsomely every quarter.
Happy investing, and may your dividends always be fat and quarterly!
