You must have seen toll plazas while going on a long road trip. To cross the toll, you have to pay a tax, which is deducted through Fastag or manually. Toll tax is a big source of income for the government. Now you too can earn a good amount from toll tax. Infrastructure Investment Trusts (InvITs) give you this opportunity, just like mutual funds. By investing a small amount, you can get a small part of the income as a return by investing directly in infrastructure.
Make toll tax a source of your additional income
To earn money from toll tax, you have to invest in infrastructure investment trusts. Their main objective is to promote infrastructure like roads, bridges, and toll plazas in India. This is a great way to invest your savings in areas that play an important role in the development of the country and can also provide you with regular income.
Get a chance to earn big returns even with a small amount
Infrastructure Investment Trusts (InvITs) are a type of mutual fund through which potential individual or institutional investors can earn a small part of the income from infrastructure as returns by investing small amounts directly. This is a great opportunity for those who want to have a stake in large infrastructure projects but are not able to invest a large amount at once.
InvITs are registered with SEBI, and investors’ money remains safe
InvITs can be set up as trusts and are registered with SEBI (Securities and Exchange Board of India). An InvIT mainly consists of 4 things: 1) Trustee, 2) Sponsor, 3) Investment Manager, and 4) Project Manager. This structure protects the interests of investors and ensures that investments are managed professionally. Under SEBI rules, InvITs have to distribute at least 90% of their income among investors, giving you regular returns.
Helpful in capital recycling
InvITs help infrastructure developers recycle capital stuck in long-term infrastructure projects. These projects may include roads, transmission lines or renewable assets. However, it comes under market risk. Therefore, it is important to research well before making any kind of investment. Thoughtful investment can prove beneficial for you.
How much return is received
InvITs have to distribute at least 90% of the cash among investors. This means that you can earn good money even by investing ₹ 10,000. You can buy InvIT funds through online platforms like Groww. There is no maximum limit to investment, so you can invest according to your capacity. This is an attractive option for investors who want to take advantage of the growth prospects in the infrastructure sector along with regular income.