NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
Which of the following best describes a Real Estate Investment Trust (REIT) in the Indian context?
A REIT is a trust that pools investor money to own and operate income-generating real estate and passes most of the income on to unit holders. It is not a lender, an equity fund focused on construction shares, or a PMS account.
- AA trust that pools money from investors to own and operate income-generating real estate and distributes most of the income to unit holdersCorrect
- BA company that lends only to home buyers and issues pass-through certificates
- CA scheme that invests solely in equity shares of listed construction companies
- DA portfolio management account holding only land parcels in the client's name
Explanation
A REIT is a trust that owns and operates income-generating real estate assets and distributes a large share of its income to unit holders. The other options describe lending, equity investing or a PMS account, none of which is a REIT.
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