NSE launches Nifty REITs & InvITs 90:10 Index: What it is, how it works and why it matters

The National Stock Exchange's index services arm, NSE Indices, has launched the Nifty REITs & InvITs 90:10 Index, a new thematic benchmark designed to track the performance of all publicly listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India. The index is expected to serve as a benchmark for asset managers launching active investment products focused on these yield-generating assets.

What is the Nifty REITs & InvITs 90:10 Index?

The newly launched index tracks the combined performance of listed REITs and InvITs using a periodic capped free-float market capitalization methodology. While both asset classes are included, REITs will account for at least 90% of the index weight, with InvITs making up the remaining allocation.

The index has 13 constituents, a base date of April 1, 2021, and a base value of 1,000. It will be calculated at the end of each trading day and rebalanced every quarter—in March, June, September and December.

Key features

The index has been designed with concentration limits to prevent excessive exposure to a few securities.

Feature	Details
Constituents	13 listed REITs and InvITs
REIT Allocation	Minimum 90% aggregate weight
Maximum Weight per Security	33%
Top 3 Constituents	Combined weight capped at 62%
Rebalancing	Quarterly (March, June, September, December)
Methodology	Periodic Capped Free-Float

Portfolio Composition

The index is heavily tilted towards the real estate sector.

Realty: 90.09%
Power: 5.35%
Services: 3.69%
Construction: 0.86%

The largest constituents include Embassy Office Parks REIT (29.11%), Brookfield India Real Estate Trust (17.73%), Nexus Select Trust (15.38%), Knowledge Realty Trust (14.41%), and Mindspace Business Parks REIT (13.46%).

How has the index performed?

Based on historical back-tested data shared by NSE Indices, the benchmark has delivered:

Period	Total Return
Quarter-to-Date	6.07%
Year-to-Date	3.71%
1 Year	18.29%
5 Years	12.72% CAGR
Since Inception	13.07% CAGR

The index has a dividend yield of 5.11%, reflecting the regular income-generating nature of REITs and InvITs. Its relatively low beta of 0.15 against the Nifty 50 also suggests lower sensitivity to broader equity market movements.

Why does it matter?

REITs and InvITs have emerged as an important investment avenue for investors seeking a mix of regular cash flows and long-term capital appreciation. Until now, investors had limited benchmark options dedicated to these instruments.

The launch of the Nifty REITs & InvITs 90:10 Index provides a standardized performance yardstick for India's listed real estate and infrastructure trusts. It is also expected to support the development of new investment products such as mutual funds and exchange-traded funds (ETFs) tracking the segment.

For investors, the benchmark offers a transparent way to monitor the performance of India's growing REIT and InvIT market, while helping fund managers measure returns against a dedicated index instead of broader equity benchmarks.