New Delhi, Jan. 29 -- Real Estate Investment Trusts (REITs) are designed for investors seeking exposure to real estate without the complexities of owning physical property. For risk-averse investors, real estate should ideally form only 5-10% of the overall portfolio, and REITs offer a convenient way to gain that exposure without buying a house or a commercial asset outright.

Investing in a REIT is essentially an indirect way to invest in real estate. When you buy a physical property, you typically own a single asset, with an upfront investment of at least Rs.25 lakh, even in smaller cities. Ownership also brings responsibilities such as finding tenants, managing maintenance, and handling legal paperwork.

REITs, by contrast, allow inves...