return of FD
In today's era, when most banks are able to give only 6 to 8 percent annual return on FD, then rising inflation is silently weakening the savings of common people. In such a situation, Infrastructure Investment Trusts i.e. InvITs have emerged as a strong option for investors who want not only safe but also better and regular income.
Market experts believe that by investing in the right InvIT, annual income ranging from 9 percent to 15 percent is possible. This is the reason why investors are now shifting from FD and savings accounts to these new options.
InvITs are SEBI regulated trusts that invest in the country's essential infrastructure projects such as highways, power transmission lines, gas pipelines and toll roads. A large part of the income from these projects is distributed to investors. According to the rules, InvITs have to give at least 90 percent of their distributable income to unitholders every quarter. This is the reason why those who invest in them get regular and stable cash flow.
Powergrid Infra InvIT is the first InvIT of the country, which was launched by the government company POWERGRID. It has fully operational power transmission projects, which operate on long-term contracts. In the current financial year, this InvIT has distributed about ₹ 12 per unit, which makes its yield more than 13 percent. This is considered a strong option for those looking for stable income.
The focus of IRB InvIT Fund is on toll-based highway projects. It has many important road assets belonging to NHAI. This year this InvIT gave a dividend of around Rs 7.5 per unit, due to which the yield was around 13 percent. However, the level of debt is a bit high, so it is important to understand the risk before investing.
If an investor wants a stake in the gas sector, then India Infrastructure Trust can be an option. Its main asset is the natural gas transportation pipeline. This InvIT has distributed more than Rs 15 per unit, which shows a yield of about 14 percent. However, due to high valuation, it is better to invest in it wisely.
Capital Infra Trust focuses on national and regional highway projects. Even though the unit price may have been under pressure in recent months, with a dividend of more than Rs 30 per unit, it is appealing to investors who prefer regular income over capital gains. InvITs can give higher returns than FDs, but they also have risks. It is very important to understand the risks associated with leverage, asset quality and sector. With a long-term perspective and proper selection, InvITs can become a strong source of income in your portfolio.
