Basics of InvITs

Understand how InvITs work. An InvIT does for infrastructure what a REIT does for property — turns large, illiquid assets into tradable units.

What sits inside one

Typically roads, transmission lines, gas pipelines or telecom towers — assets with long-term contracted cash flows. That contracted nature is the main attraction.

Operational versus under-construction

InvITs holding completed, revenue-generating assets carry lower risk and steadier distributions. Those with under-construction projects carry execution risk in exchange for potential upside.

Public and private

Publicly listed InvITs are tradable and accessible at small ticket sizes. Private InvITs are institutional, illiquid, and generally unsuitable for retail investors.

The risk position

Distributions depend on the underlying assets performing, on regulatory and tariff decisions, and on interest rates. Unit prices are market-linked and returns are not assured.

Before you decide

Everything above is general. What is right for you depends on what you are protecting, what you already hold, and what you can sustain. That is a fifteen-minute conversation, and it is free.