NHAI Investment Scheme: Now common investors will also be able to earn by investing money in the national highways of the country. Through the new investment system of NHAI, investors can get regular income from the toll collection received from the roads, which can become a better option than FD.
National Highway Investment Scheme: Till now, whenever the name of National Highway came, the picture of toll plazas, long roads and journey came to mind, but now the same highways are going to become a new way of earning for the common people. The National Highway Authority of India (NHAI) has created an investment model that will allow retail investors to invest directly in the country’s roads for the first time. The name of this initiative is ‘Highway Infra Investment Trust’ (RIIT). It has received the approval of market regulator SEBI and soon it can open for general investors.
How will you be able to invest in highways?
Till now the path to investment in highways and big infrastructure projects was open only to big companies and foreign investors. But through this new Public InvIT Scheme, now retail and domestic investors will also be able to participate directly in it. Just like you buy units in mutual funds, now you will become a share in the earnings from toll tax by buying units in roads.
What will be the way to invest in National Highways?
- You must have a Demat Account.
- When IPO comes, you will be able to invest through brokerage apps like Zerodha, Groww, Angel One.
- After listing, its units can be bought and sold in the stock market.
How will this scheme of NHAI work?
Just like we buy units in the stock market, in the same way we buy units of InvIT in this also. The trust manages the roads built with that money by taking them on lease from the government. Toll tax received from these roads becomes the trust’s income. The money that remains after deducting expenses is distributed among the unit holders. That means every vehicle running on the road can increase the income of your investment.
What is INVIT?
The full name of InvIT is Infrastructure Investment Trust. It is an investment model similar to a mutual fund. Invests mutual fund money in shares. InvIT invests money in projects like roads, electricity, infrastructure. A large part of the earnings from these are given to investors in the form of dividends.
What benefit will you get?
- A large part of the income from InvIT is given to investors in the form of dividend.
- This is special for those people who want fixed income every year and expect slightly higher returns from a scheme like FD.
- This scheme is linked to NHAI, that is, being a completely government model, the trust factor in investment becomes quite strong.
- This can be beneficial for long term investors. As traffic increases, toll collection will increase and income may also increase.
10 big banks included in this scheme of NHAI
SBI
pnb
HDFC Bank
ICICI Bank
Axis Bank
IDBI Bank
IndusInd Bank
Yes Bank
Bajaj Finserv Ventures
NaBFID