In investing, “Diversification is the only free lunch” - Harry Markowitz.

For most investors, diversification tends to end with stocks and bonds. However, contrary to common perception, there exists a wide array of investment options which can help in diversifying the portfolio and optimise its risk adjusted performance.

Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT) are among such instruments that enable investors to diversify their portfolios beyond stocks and bonds.

While this is an emerging asset class in India, there is data available from global markets that presents evidence of a robust historical performance with relatively lower correlation to stocks and bonds.

This strategy aims to provide an alternative investment avenue to investors, offering a blend of regular income and capital growth.

It is suitable for investors with a medium to long term time horizon and a moderate to high tolerance for price volatility.