A few years ago, while driving down the Mumbai–Pune Expressway, I remember paying the toll and thinking to myself—who really earns from all this money that thousands of vehicles pay every single day? Back then, I assumed it was just the government or the private concessionaire. It was only later that I discovered something fascinating: investors like me can also share in these earnings through Infrastructure Investment Trusts (InvITs). That realization changed the way I looked at infrastructure in India.

Understanding InvITs in Simple Terms

InvITs are basically a way for people like us to invest in big infrastructure projects. Instead of pooling money to buy shares like mutual funds, InvITs pool money to own income-generating assets such as highways, power transmission lines, and renewable energy projects.

Here’s how it works: the company that built the project transfers it into a trust. This trust then invites investors to buy units, and in return, we earn from the revenue generated—whether it’s toll fees from a road, electricity transmission charges, or rentals from telecom towers.

For the first time, ordinary investors like me can get a slice of infrastructure that was earlier reserved for governments, large institutions, and global funds.

Why InvITs Matter for Me as an Investor

I see InvITs as a blend of stability and purpose. They’re not just about returns; they’re about participation in India’s growth. Some reasons why I like them are:

  • Regular income: InvITs are required to distribute at least 90% of their net distributable cash flow. That means I receive steady payouts, much like a bond or FD, but with a twist of growth.

  • Affordable entry: Earlier, owning infrastructure required massive investments. With InvITs, even a few thousand rupees can make me part-owner of projects worth crores.

  • Diversification: Adding InvITs gives my portfolio a new layer beyond equity and fixed income.

  • Credibility: With SEBI regulation and listed InvITs, there’s an added sense of trust and transparency.

The Risks I Don’t Ignore

Of course, I remind myself that no investment is perfect. InvITs are tied to operational realities. A slowdown in traffic can reduce toll collections, policy changes can affect revenues, and rising interest rates can make them less attractive compared to other instruments. Also, since the market for InvITs in India is still developing, liquidity can sometimes be limited.

InvITs in India’s Growth Story

When I think about India’s ambitious infrastructure goals—whether it’s renewable energy, modern highways, or stronger transmission lines—InvITs seem like a natural fit. They help bring global and domestic capital into projects that power our economy.

PowerGrid InvIT, for instance, allows investors to share in revenues from nationwide electricity transmission lines. IRB InvIT connects investors to highways across India. For me, there’s a strange satisfaction in knowing that when I drive on a certain road or switch on a light, I could also be indirectly benefiting as an investor.

Looking Ahead

The beauty of InvITs lies in the fact that they merge personal finance with national progress. I earn income, and at the same time, I contribute to building better infrastructure. It’s not often that investments let you balance both.

Final Thought

Every time I now pay a toll or read about a new solar project, I remind myself that with InvITs, I have a chance to be more than just a consumer. I can be a participant in India’s development journey. That blend of steady returns and meaningful contribution is what makes InvITs truly special for me.