NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
Which feature distinguishes a Real Estate Investment Trust (REIT) from a typical open-ended mutual fund scheme in India?
REIT units are listed on stock exchanges, so investors exit by selling units in the market rather than redeeming them with the trust at NAV daily. This is unlike open-ended mutual fund schemes, which offer continuous purchase and redemption at NAV.
- AREIT units are listed on a stock exchange and are not redeemed directly with the trust on demandCorrect
- BREIT units can be redeemed at NAV on every business day
- CREIT cannot own any income-generating real estate
- DREIT units can be issued only to foreign investors
Explanation
REIT units are listed and traded on exchanges, so investors exit by selling in the market rather than redeeming with the trust at NAV. Open-ended mutual fund schemes offer continuous redemption at NAV. REITs are designed to own income-generating real estate.
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