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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles

A real estate investment trust (REIT) in India primarily generates returns for unitholders through:

A REIT mainly generates returns from rental income and capital appreciation of income-producing real estate it holds. It distributes most of the income to unitholders, and the units are listed on exchanges, giving investors real estate exposure without owning property directly.

  1. ARental income and capital appreciation from income-producing real estateCorrect
  2. BInterest on government securities held as the main asset
  3. CTrading profits from commodity futures
  4. DDividends from shares of listed manufacturing companies

Explanation

A REIT owns and operates income-generating real estate, and distributes rental and other income to unitholders; the value of the units may also reflect appreciation of the properties. The other options describe unrelated asset classes.

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