Power Grid InvIT IPO: Can InvITs really deliver double the returns of a bank FD?

If you are not a senior citizen, the maximum interest that you can earn from a fixed deposit at SBI is not more than 5.4 per cent. Analysts say Power Grid InvIT IPO can give 10-12 per cent dividend annually. Now that would be double of what the SBI FD pays.

But before you invest your hard-earned money in the IPO, let us first understand what exactly is an InvIT? Is it like any other stock? In today’s special podcast with independent market expert Rajiv Nagpal, we discuss the pros and cons of investing in InvITs.

Welcome to the show, Mr Nagpal.

1) Can you explain what is an InvIT and how is it different from an REIT?
2) Are InvITs suitable for all types of retail investors?
3) Can InvIT be a good alternative to bank fixed deposits, given the fact that current interest rates are so low?
4) What are the risks of investing in an InvIT? Can liquidity be a concern?

Thank you Mr Nagpal. That’s all in today’s special podcast but keep checking this space for more such interesting content. Good bye!