NSE Indices Launches Nifty REITs & InvITs 90:10 Index To Benchmark Listed Trusts

NSE Indices, a subsidiary of the National Stock Exchange (NSE), has launched the Nifty REITs & InvITs 90:10 Index, a thematic benchmark designed to track the combined performance of all publicly listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India.

The index is intended to serve as a benchmark for asset managers running active funds focused on the listed REIT and InvIT space and is also expected to support the development of passive products such as mutual funds and exchange-traded funds tracking this segment.

How The Index Is Constructed

The index follows a periodic capped free-float market capitalisation methodology and currently has 13 constituents.

REITs are required to maintain a minimum aggregate weight of 90%, with InvITs making up the remaining allocation, which gives the index its 90:10 name. Individual constituent weights are capped at 33%, and the combined weight of the top three constituents is capped at 62%, limiting concentration risk.

The index has a base date of 1 April 2021 and a base value of 1,000. It is calculated on an end-of-day basis and will be reconstituted and rebalanced quarterly in March, June, September and December.

Composition And Sector Exposure

The realty sector dominates the index, accounting for 90.09% of the portfolio. Power follows at 5.35%, services at 3.69% and construction at 0.86%.

The five largest constituents by weight are Embassy Office Parks REIT at 29.11%, Brookfield India Real Estate Trust at 17.73%, Nexus Select Trust at 15.38%, Knowledge Realty Trust at 14.41% and Mindspace Business Parks REIT at 13.46%. Together these five names account for approximately 90% of the total index weight.

Performance Since Inception

The index has delivered a total return of 18.29% over one year, a compound annual growth rate of 12.72% over five years and a compounded annual growth rate (CAGR) of 13.07% since inception on 1 April 2021. The index carries a dividend yield of 5.11%, reflecting the income-generating nature of the underlying REIT and InvIT structures.

The launch gives investors and fund managers a dedicated, transparent yardstick against which to measure the performance of India's growing listed REIT and InvIT market, filling a gap that had previously required comparison against broader equity benchmarks.

Also Read - Bank of Baroda Confirms Data Breach, Employee Email Compromised; Shares Down 1%