New Delhi, June 18 -- Over the past year, neither equities nor government bonds have delivered particularly exciting returns. The Nifty 50 returned a negative 8%, while the Nifty G-Sec index, a proxy for government bonds, returned just 1%.

In contrast, the Nifty REIT & InvITs index delivered 11%, alongside periodic cash payouts comprising dividends, interest and principal repayments. (performance data sourced from www.niftyindices.com as on 10 June 2026.)

Given this relative outperformance, it is understandable why investors are taking a closer look at Reits. But before doing so, it is important to understand what drove these returns and what role they play in your portfolio.

A Real Estate Investment Trust (Reit) pools investor capital...