Mutual Funds Vs Fixed Deposits: Which Is Right For You?

REITS & INVITS

REITs & INVITs: Passive Income for Homemakers and Retirees

• Jan 30, 2026

1. Introduction: When markets feel shaky, regular income feels comforting

Let's be honest. When markets keep going up and down like a seesaw, most people stop thinking about "high returns" and start thinking about one simple thing, steady cashflow. Especially homemakers and retirees. You don't want daily stress. You want money coming in quietly, without checking charts every morning.

Fixed deposits don't pay much anymore. Rental property sounds good, but managing tenants, maintenance, paperwork… headache. Stock market? Too volatile for many people.

And that's where REITs and INVITs quietly enter the picture.

Most folks don't realize this, but these instruments were created exactly for people who want monthly or quarterly income without owning physical property or running a business. If you're just starting to understand such modern investment options, learning from experts helps, check out share market classes in pune. They explain these concepts in plain language, not finance jargon.

2. What are REITs and INVITs

REITs (Real Estate Investment Trusts)

These are companies that own income-generating real estate, like office buildings, malls, IT parks, warehouses. Instead of you buying a flat or shop, you buy units of a REIT.

• They collect rent → expenses are paid → remaining money is distributed to investors.

INVITs (infrastructure investment trusts)

These own infrastructure assets like highways, power transmission lines, gas pipelines, renewable energy assets. They earn money through tolls, usage charges, or long-term contracts, and pass income to investors.

Both are listed on stock exchanges. You can buy them just like shares.

3. Why they suit homemakers and retirees

To be honest, these instruments were almost designed for this category.

Here's why they work so well:

• Regular cashflow (mostly quarterly, sometimes monthly)
• No active management needed
• Lower volatility compared to stocks
• Backed by real assets
• Transparent income distribution rules

You don't have to run around managing tenants or roads. Professionals handle everything. You just receive your share of income.

4. How income distribution works

SEBI rules say REITs and INVITs must distribute at least 90% of their net cashflows to investors. That's huge. Most companies don't do this.

The payout usually comes as:

• Interest income
• Dividend
• Repayment of capital

Don't worry about the structure too much. What matters is — money hits your bank account regularly.

Example: If you invest ₹10 lakh in a REIT with an 8% annual yield, you may receive roughly ₹20,000 every quarter (before tax adjustments). Not bad for passive income.

5. Indian REIT and INVITs examples

Embassy Office Parks REIT

Owns office spaces leased to big names like Infosys, Accenture, TCS. Rent comes in month after month. Investors receive consistent payouts.

Mindspace Business Parks REIT

Similar story. It parks, long leases, predictable income.

Powergrid INVIT

Owns power transmission assets. Income is backed by long-term government-linked contracts. Very stable.

IRB INVIT

Owns highway assets. Toll collections create cashflow.

Many retirees already invest in these without even realising they're using a "trust" structure.

6. Comparison with fixed deposits

Most homemakers and retirees love FDs. Nothing wrong with that. But let's compare honestly.

Fixed deposits:

• Safe, yes
• Interest usually 5–7%
• Interest fully taxable
• Returns may not beat inflation

REITs & INVITs:

• Backed by real assets
• Yields often 7–10% (varies)
• Some tax efficiency
• Potential for small capital appreciation also

If you ask me, REITs and INVITs don't replace FDs, they complement them.

6. Liquidity: Who wins?

FDs charge a penalty if you break them early. Mutual funds are more flexible, you can redeem whenever you want, except ELSS tax-saving funds. So mutual funds win this round.

7. Risks involved

No investment is 100% risk-free. Not even FDs (inflation risk is real).

With REITs and INVITs, risks include:

• Interest rate changes (prices may fluctuate)
• Vacancy risk (for REITs)
• Traffic or usage risk (for INVITs)
• Regulatory changes

But compared to equities, risk is much lower. And income tends to remain stable even when prices fluctuate.

The trick is, don't panic on daily price movement. Focus on income.

8. Benefits for homemakers

Many homemakers:

• Want money working quietly in the background
• Don't want daily decision-making stress
• Like predictable cashflow for household expenses

REITs and INVITs fit perfectly. You invest once, then periodically receive income. No phone calls, no paperwork, no tenant drama.

Some even use payouts to:

• Fund SIPs for children
• Cover utility bills
• Reinvest for compounding

9. Benefits for retirees

Retirees usually have a lump sum from:

• PF
• Gratuity
• Retirement corpus

Parking everything in FD means low growth. Parking everything in equity feels risky.

REITs and INVITs sit nicely in between:

• Better yield than FD
• Lower volatility than equity
• Predictable cashflow

Many retirees create a simple structure:

• Some money in FD for safety
• Some in REITs/INVITs for income
• Some in equity funds for long-term growth

Balanced, peaceful, practical.

10. Taxation overview

This is where people get confused.

Income from REITs/INVITs can be:

• Interest (taxed as per slab)
• Dividend (often tax-free in your hands)
• Capital repayment (not taxed immediately)

Taxation depends on structure and your income slab. That's why it's good to understand or consult once before investing big amounts. But overall, tax efficiency is often better than FD interest, especially for retirees in lower slabs.

11. How to start investing

You need a demat account

• Search for listed REITs or INVITs
• Check yield history and asset quality
• Invest like you buy shares
• Track income, not daily price

No special account needed. No paperwork mess.

12. Should you invest all your money in REITs & INVITs?

No. Never go all-in on anything.

But allocating 10–30% of your income-focused portfolio here makes a lot of sense for:

• Homemakers
• Retirees
• Conservative investors
• Anyone wanting predictable cashflow

Balance is key.

13. Conclusion: Steady income beats daily stress

If you ask me, REITs and INVITs are one of the most underrated income tools in India. They sit quietly, do their job, and send money to your bank account without drama.

For homemakers and retirees especially, this is a powerful way to create passive income without running businesses or managing properties.

And if you want to understand these instruments properly before investing, learning always helps. Check out online share market classes, to build confidence and clarity. Because the best investment is not just money, it's knowing where and why you're investing.

14. Disclaimer

This blog is provided for general information only and does not represent financial advice. Please take investment decisions after consulting a SEBI-registered financial advisor. Past performance is not indicative of future outcomes. Investments have inherent market risks, learn before you earn.

15. Frequently Asked Questions (FAQs)