By spending just ₹100, you can earn regular income from toll plaza sitting at home, just do this work!

InvIT Investment: There's a common perception that large infrastructure projects like roads, power lines, or gas pipelines only benefit the government or large construction companies. 

It used to be difficult for a typical investor to even imagine being able to participate in a highway's toll collection. However, the changing nature of the financial market has broken down this barrier. 

Now, even with just ₹100 in your pocket, you can invest in the country's infrastructure and share in the earnings that were previously limited to large corporations. This has been made possible through InvITs (Infrastructure Investment Trusts).

A new way to earn money from infrastructure

An InvIT is an investment vehicle similar to a mutual fund, but its focus is directly on infrastructure projects rather than on stock market companies. 

Simply put, it's a trust that raises money from investors and invests it in assets such as highways, power transmission lines, or gas pipelines. Income from these projects, such as toll plaza collections or power transmission charges, flows directly to the trust. 

Most importantly, according to market regulator SEBI regulations, InvITs are required to distribute at least 90 percent of their earnings to their investors (unit holders) in the form of dividends or interest.

Start your investment journey with just Rs 100.

Many InvITs are listed on the stock exchanges (NSE/BSE), and their units can be bought and sold like ordinary shares. They often cost less than ₹100. 

To participate, investors must have a demat and trading account, which can be easily opened with any brokerage house like Zerodha, Groww, or Upstox. Once you have an account, you can search for a listed InvIT of your choice and purchase a minimum of one unit. 

By purchasing a unit, you become a partner in the earnings of that infrastructure project. Currently, several options are available in the market, such as IRB InvIT, IndiGrid, Powergrid InvIT, and NHIT.

This is how earnings are made

The biggest attraction of investing in InvITs is regular income. Because these projects (such as toll roads) are already operational and generate regular cash flow, they are considered slightly less risky than stocks. 

Furthermore, they can act as a hedge against inflation. This is because toll rates and infrastructure charges increase over time, boosting the trust's earnings and ultimately, investor returns.

However, like every investment, there are some risks involved that should not be ignored. Investors should keep in mind that this investment is sensitive to interest rates. 

If interest rates rise in the economy, the prices of InvIT units may come under pressure. Furthermore, if traffic on a highway is lower than expected, toll collections will decrease, directly impacting your returns. 

Since these units are listed on the stock market, their prices are also affected by market fluctuations. Therefore, it is wise to assess your risk appetite before investing.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.