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Real Estate Investment Trusts (REITs) have gained popularity in India, offering retail investors a chance to invest in premium real estate without the hassle of direct ownership. Previously, such opportunities were available only to high-net-worth individuals, but REITs have made commercial real estate more accessible to a wider range of investors.Understanding REITs: the basicsREITs are companies that own, manage, or operate high-quality, income-generating real estate assets. They allow investors to participate in real estate markets without buying physical property. REITs pool money from multiple investors to acquire and manage real estate assets, distributing at least 90% of their earnings once every six months. This makes them a compelling option for those seeking regular income.In India, REITs are regulated by the Securities and Exchange Board of India (SEBI).Who should consider investing in REITs?REITs are suitable for investors who:Want to own premium Grade-A commercial real estate with a small capital outlay.Are comfortable with moderate risk and market fluctuations but want lower complexity than directly owning and managing property.Seek a steady income stream through regular, tax-efficient distributions.Want to diversify their portfolio with real estate exposure.Aim for long-term wealth accumulation through rental yields and potential capital appreciation.Assessing risk appetiteLike any investment, REITs come with some risks. Key risks to consider include:Market risk – REIT unit prices can fluctuate based on global and domestic economic conditions, affecting investment returns.Distribution risk – Regular distributions depend on rental income, interest rates, tenant demand, operating costs, and economic conditions. A decline in occupancy rates or rental values may impact distributions.Setting investment goalsIndian REITs offer attractive investment opportunities for retail investors. When considering REITs, primary goals should include:Earning regular income – REITs are required to distribute 90% of their cash flows once every six months, ensuring consistent payouts.Building a diversified portfolio – REITs have low correlation with other asset classes and cover different sectors and locations.Maintaining liquidity – Unlike traditional real estate investments, REIT units trade freely on stock exchanges, allowing investors to buy and sell easily.Balancing goals and risksREITs provide an opportunity for stable income and potential capital appreciation, making them a valuable addition to an investment portfolio. However, investors must carefully assess their financial goals, risk tolerance, and market conditions before investing.By conducting thorough research and aligning REIT investments with long-term financial plans, retail investors can build a resilient and diversified portfolio. As the Indian REIT market continues to evolve, it presents significant potential for those looking to benefit from this innovative asset class.(The author, Pratik Dantara, is Head of Investor Relations & Strategy at Nexus Select Trust and an Executive Committee Member of the Indian REITs Association. Views are personal.)Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own and do not represent the views of The Economic Times.

US President Donald Trump said a deal with TikTok's Chinese parent ByteDance to sell the short video app used by 170 million Americans would be struck before a deadline on Saturday. Trump set the April 5 deadline in January for TikTok to find a non-Chinese buyer or face a U.S. ban on national security grounds due to have taken effect that month under a 2024 law. "We have a lot of potential buyers," Trump told reporters on Air Force One late on Sunday. "There's tremendous interest in Tiktok," adding, "I'd like to see Tiktok remain alive." TikTok did not immediately comment. Reuters reported on Friday private equity firm Blackstone is evaluating making a small minority investment in TikTok's U.S. operations, according to two people familiar with the matter. Blackstone is discussing joining ByteDance's existing non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, in contributing fresh capital to bid for TikTok's U.S. business. The group has emerged as front-runners. Washington says TikTok's ownership by ByteDance makes it beholden to the Chinese government and Beijing could use the app to conduct influence operations against the United States and collect data on Americans. Trump previously said he was willing to extend the April deadline if an agreement over the social media app was not reached. Last week, he acknowledged the role China will play in getting any deal done, including giving its approval, saying "maybe I'll give them a little reduction in tariffs or something to get it done." Vice President JD Vance has said he expects the general terms of an agreement resolving the ownership of the social media platform to be reached by April 5. The future of the app used by nearly half of all Americans has been up in the air since a 2024 law, passed with overwhelming bipartisan support, required ByteDance to divest TikTok by January 19. The White House has been involved to an unprecedented level in the closely watched deal talks, effectively playing the role of investment bank.