Earning Through Toll Taxes: Investment Insights from Ujjawal Pahwa

Investment expert Ujjawal Pahwa offers an intriguing opportunity for investors looking for stable and less risky income streams: earning from toll taxes through infrastructure investments. While it's not possible to earn from every toll tax, understanding the nuances of Infrastructure Investment Trusts (InvITs) can open doors to lucrative and steady returns. This article delves into the world of InvITs, explaining their structure, types, benefits, and how to invest in them.

Understanding Infrastructure Investment Trusts (InvITs):

InvITs function similarly to mutual funds, allowing both individual and institutional investors to directly invest in infrastructure projects. By investing in InvITs, you get a chance to earn a portion of the income generated by these projects. This can include returns from toll taxes in the case of road and highway projects. It's a collective investment scheme regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Types of InvITs as per SEBI Regulations:

InvITs can vary based on the type of infrastructure they own or operate. Ujjawal Pahwa highlights the five key types:

• Energy: This includes investments in power generation and distribution projects.
• Transport & Logistics: Such as operating highways, toll roads, and other transportation infrastructure.
• Communications: Investments in optical fibre networks, telecom towers, and similar projects.
• Social and Commercial Infrastructure: Including parks, educational institutions, and commercial buildings.
• Water and Sanitation: Covering irrigation networks, sanitation, and water supply systems.

Advantages of Investing in InvITs:

Investing in InvITs offers two significant advantages:

• Fixed Income: They provide a stable and regular income stream, which is less risky compared to other investment types.
• Diversification: InvITs allow diversification of your investment portfolio into various infrastructure sectors.
• How to Invest in InvITs:
• Investing in InvITs is similar to trading in equities. Public InvITs are listed on stock exchanges like the NSE and BSE, and their units can be bought and sold without a lock-in period. This flexibility adds to their appeal as an investment option.

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Ujjawal Pahwa's guide to investing in infrastructure projects through InvITs offers a compelling avenue for investors to earn steady returns, including from toll taxes. With their fixed income potential and diversification benefits, InvITs are an attractive option for those looking to venture beyond traditional investment routes. As with any investment, it's essential to do thorough research and consider the risks involved.