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THIS ARTICLE IS FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY. THE WEBSITE OWNER IS NOT RESPONSIBLE FOR ANY INVESTMENT DECISIONS MADE BASED ON THIS CONTENT. INVESTMENTS IN invITs ARE SUBJECT TO MARKET RISKS, INCLUDING LOSS OF CAPITAL. INVESTORS ARE ADVISED TO CONSULT THEIR FINANCIAL ADVISOR BEFORE MAKING ANY INVESTMENT.
INTRODUCTION TO InvIT IN INDIA
INFRASTRUCTURE INVESTMENT TRUSTS (InvITs) ARE A RELATIVELY NEW INVESTMENT VEHICLE IN INDIA DESIGNED TO ALLOW INVESTORS TO EARN STABLE INCOME FROM INFRASTRUCTURE ASSETS LIKE HIGHWAYS, POWER TRANSMISSION LINES, PIPELINES, TELECOM TOWERS ETC.
InvITs FUNCTION SIMILARLY TO MUTUAL FUNDS BUT INVEST IN INCOME-GENERATING INFRASTRUCTURE PROJECTS AND DISTRIBUTE EARNINGS TO INVESTORS REGULARLY.
AS PER REGULATIONS, InvITs MUST DISTRIBUTE AT LEAST 90% OF THEIR NET CASH FLOWS TO INVESTORS, MAKING THEM A STRONG INCOME-GENERATING INSTRUMENT.
Who Regulates InvIT in India?
InvITs in India are regulated by:
Securities and Exchange Board of India
Governed under:
SEBI (Infrastructure Investment Trusts) Regulations, 2014
Key Regulatory Rules:
Minimum 80% investment in completed assets
90% income must be distributed
Sponsor must hold minimum 15% stake
History & IPO Timeline of InvIT in India
First InvIT IPO:
2017 → IRB InvIT Fund (First listed InvIT in India)
Major InvIT IPO Timeline:
| Year | InvIT Name | Sector |
| 2017 | IRB InvIT Fund | Roads |
| 2018 | India Grid Trust (IndiGrid) | Power |
| 2021 | PowerGrid InvIT (PGInvIT) | Power |
| 2022 | NHAI InvIT / Bharat Highways | Roads |
| 2023–25 | Multiple private + public InvITs | Mixed |
| 2026 | Raajmarg InvIT IPO | Roads |
Total ~4 major public InvIT IPOs till 2025
2026 pipeline expected ₹25,000+ crore fundraising
How InvIT Works (Structure)
InvIT has a 3-tier structure:
- Sponsor (Project Owner)
- Trustee (Safeguard investors)
- Investment Manager (Operations)
Revenue Sources:
Toll collections
Power transmission tariffs
Lease rentals
Investment Amount & Entry Cost
Earlier:
Minimum ₹10 lakh investment
Now (Post listing):
₹10,000 – ₹15,000 (retail friendly IPOs)
Dividend Yield, ROI & Returns
Typical Returns in India:
| Parameter | Range |
| Dividend Yield | 6% – 15% |
| Average Yield | 9% – 12% |
| Total Return (ROI) | 10% – 14% |
| Long-term IRR | 12% – 15% |
Some InvITs give up to 14–15% yield
Stable yields around 9–9.5% common
Example: IRB InvIT Fund Returns
Annual Dividend: ₹7 per unit
Dividend Yield: ~11.5%
If You Invest ₹1,00,000:
| Yield | Annual Income |
| 10% | ₹10,000 |
| 12% | ₹12,000 |
| 14% | ₹14,000 |
Quarterly payouts possible (regular cash flow)
Example Calculation (All InvIT Combined View)
If you invest ₹1 lakh in each major InvIT:
| InvIT | Yield | Income |
| IRB InvIT | 11% | ₹11,000 |
| IndiGrid | 10% | ₹10,000 |
| PowerGrid InvIT | 12% | ₹12,000 |
| Others Avg | 9% | ₹9,000 |
Total Investment: ₹4,00,000
Annual Income: ₹42,000 (approx)
Return Metrics Explained
1. ROI (Return on Investment)
Total return including dividend + price appreciation
2. ROC (Return on Capital)
Cash return vs invested capital
3. Yield
Annual dividend / current price
4. IRR (Internal Rate of Return)
Long-term annualized return (~12–15%)
Scope of InvIT in India
Why InvIT is Growing Fast:
Government infrastructure push
Monetization of highways & assets
Stable income demand
Low interest rate alternatives
Expected growth:
₹25,000 crore+ fundraising in 2026
Future Sectors:
Roads & highways
Renewable energy
Telecom towers
Gas pipelines
Advantages of Investing in InvIT
Regular income (quarterly dividend)
High yield vs FD
Professional management
Diversification
Tax efficiency
Risks & Fraud Scope in InvIT
Major Risks:
- Cash Flow Risk
Lower traffic → lower toll income
- Interest Rate Risk
Rising rates reduce attractiveness
- Regulatory Risk
- Debt Risk
High leverage projects
- Price Volatility
Fraud Scope:
Very low due to SEBI regulation
Risks mainly operational, not fraud-based
Comparison: InvIT vs FD vs Stocks
| Parameter | InvIT | FD | Stocks |
| Risk | Medium | Low | High |
| Return | 9–14% | 5–7% | 12–20% |
| Income | Regular | Fixed | Variable |
| Liquidity | High | Low | High |
Taxation of InvIT
Dividend: Taxable
Interest: Taxable
Capital Gains: Applicable
Who Should Invest in InvIT?
Income-focused investors
Retired individuals
Conservative investors
Portfolio diversification seekers
Who Should Avoid?
High growth seekers
Short-term traders
Risk-averse FD-only investors
Key Takeaways
InvIT = Stable income + moderate growth
Yield: 9–14%
Best for passive income
Regulated by SEBI → relatively safe
INDIA GRID TRUST: FULL QUARTER-WISE DISTRIBUTION
IndiGrid follows quarterly payouts consistently
Source-based breakdown shows multi-component distribution (interest + dividend + capital repayment)
Historical Trend (Condensed Year-wise Quarter Table)
| Year | Q1 | Q2 | Q3 | Q4 | Total |
| FY26 | 4.00 | 4.00 | — | — | — |
| FY25 | 3.75 | 3.75 | 3.70 | 4.10 | 15.35 |
| FY24 | 3.5 | 3.5 | 3.5 | 3.6 | ~14.1 |
| FY23 | 3.3 | 3.3 | 3.3 | 3.4 | ~13.3 |
| FY22 | 3.19 | 3.18 | 3.18 | 3.2 | ~12.7 |
| FY21 | 3.0 | 3.0 | 3.0 | 3.0 | ~12.0 |
| FY18–20 | 2.5–3.0 range |
Example: Q1 FY22 payout ₹3.19/unit
IRB InvIT Fund – QUARTERLY DATA
Quarter-wise Sample Dataset
| Quarter | Announcement Date | Distribution (₹/unit) | Type |
| Q3 FY22 | Feb-2022 | 2.40 | Interest + Capital |
| Q2 FY22 | Nov-2021 | 2.00–2.30 | Mixed |
| Q1 FY22 | Aug-2021 | ~2.10 | Mixed |
| FY21 Avg | — | 2.0–2.5 | Stable |
| FY20 Avg | — | 2.2–2.8 | Toll-based |
| FY19 Avg | — | 2.5–3.0 | Higher traffic |
| IPO 2017 | — | ~2.0 | Initial |
IRB payouts depend on traffic/toll collection volatility
POWERGRID INFRASTRUCTURE INVESTMENT TRUST – QUARTERLY DATA
Detailed Distribution Table
| Quarter | Ex-Date | Payment Date | Distribution (₹/unit) |
| Feb-2026 | Feb-2026 | Feb-2026 | 2.92 |
| Nov-2025 | Nov-2025 | Dec-2025 | 4.50 |
| Aug-2025 | Aug-2025 | Sep-2025 | 1.25 |
| Feb-2025 | Feb-2025 | Feb-2025 | 3.25 |
| Nov-2024 | Nov-2024 | Dec-2024 | 4.50 |
| Aug-2024 | Aug-2024 | Sep-2024 | 2.75 |
| Feb-2024 | Feb-2024 | Mar-2024 | 4.50 |
| Nov-2023 | Nov-2023 | Dec-2023 | 4.00 |
| Aug-2023 | Aug-2023 | Sep-2023 | 3.56 |
| Feb-2023 | Feb-2023 | Feb-2023 | 3.75 |
Source: Dividend history dataset
Trend Summary
| Year | Approx Total |
| FY25 | ~12 |
| FY24 | ~14 |
| FY23 | ~13 |
| FY22 | ~7–8 |
NATIONAL HIGHWAYS INFRA TRUST (NHIT)
NHIT is not fully exchange-traded initially → limited public quarterly data
Available Distribution Pattern
| Period | Distribution (₹/unit) | Frequency |
| FY25 | ~8–9 | Semi-annual |
| FY24 | ~7–8 | Semi-annual |
| FY23 | ~6–7 | Semi-annual |
| FY22 | ~5–6 | Semi-annual |
NHIT pays less frequently but stable highway income
FINAL INSIGHT TABLE
| InvIT | IPO Year | Avg Quarterly (₹) | Growth Trend |
| IndiGrid | 2017 | 3 → 4 | Strong growth |
| IRB InvIT | 2017 | 2 → 2.5 | Moderate |
| PowerGrid | 2021 | 3 → 4.5 | Stable |
| NHIT | 2021 | ~2–4 (semi) | Stable |
₹1 LAKH INVESTMENT – REALISTIC QUARTERLY INCOME
| InvIT | Quarterly Income |
| IndiGrid | ₹2,500 – ₹3,500 |
| PowerGrid | ₹2,500 – ₹3,000 |
| IRB InvIT | ₹2,000 – ₹2,500 |
| NHIT | ₹2,000 (semi-adjusted) |
CONCLUSION
InvITs in India are emerging as a powerful alternative investment option combining features of bonds and equities. With strong government backing, increasing IPOs, and attractive yields, they are expected to play a major role in the future of income investing.
InvIT in India – MCQs (SSC / Banking Exams)
Q1. (SSC CGL 2023)
What does the term InvIT stand for?
A) Investment Trust in Infrastructure
B) Infrastructure Investment Trust
C) International Investment Trust
D) Institutional Investment Tool
Answer: B
Explanation: InvIT stands for Infrastructure Investment Trust.
Q2. (IBPS PO 2022)
InvITs in India are regulated by which authority?
A) RBI
B) SEBI
C) IRDAI
D) NABARD
Answer: B
Explanation: InvITs are regulated by the Securities and Exchange Board of India.
Q3. (SSC CHSL 2021)
In which year were InvIT regulations introduced in India?
A) 2010
B) 2012
C) 2014
D) 2016
Answer: C
Explanation: SEBI introduced InvIT Regulations in 2014.
Q4. (SBI PO 2023)
Which was the first InvIT listed in India?
A) PowerGrid InvIT
B) IndiGrid
C) IRB InvIT Fund
D) NHAI InvIT
Answer: C
Explanation: IRB InvIT Fund was the first listed InvIT in 2017.
Q5. (SSC MTS 2022)
What percentage of cash flows must InvITs distribute to investors?
A) 50%
B) 70%
C) 80%
D) 90%
Answer: D
Explanation: InvITs must distribute at least 90% of net cash flows.
Q6. (IBPS Clerk 2021)
InvITs mainly invest in which type of assets?
A) Agricultural land
B) Gold
C) Infrastructure projects
D) Foreign bonds
Answer: C
Explanation: InvITs invest in income-generating infrastructure assets.
Q7. (SSC GD 2023)
What is the minimum percentage of investment that InvITs must make in completed assets?
A) 50%
B) 60%
C) 80%
D) 100%
Answer: C
Explanation: At least 80% must be invested in completed assets.
Q8. (RBI Assistant 2022)
What type of income do InvIT investors primarily receive?
A) Salary
B) Dividend / Interest
C) Rent only
D) Bonus shares
Answer: B
Explanation: Investors receive dividend, interest, and distributions.
Q9. (SSC CPO 2023)
What is the typical dividend yield range of InvITs in India?
A) 2–4%
B) 5–7%
C) 9–14%
D) 15–20%
Answer: C
Explanation: InvITs generally offer yields between 9%–14%.
Q10. (IBPS RRB 2021)
InvITs are most similar to which investment instrument?
A) Fixed Deposit
B) Mutual Fund
C) Cryptocurrency
D) Insurance
Answer: B
Explanation: InvITs pool funds like mutual funds.
Q11. (SSC CGL 2022)
Which sector is NOT commonly associated with InvIT investments?
A) Highways
B) Power Transmission
C) Telecom Towers
D) FMCG
Answer: D
Explanation: FMCG is not an infrastructure sector.
Q12. (SBI Clerk 2023)
What is the primary objective of InvITs?
A) Capital appreciation only
B) Tax saving
C) Regular income generation
D) Speculation
Answer: C
Explanation: InvITs are designed for stable income.
Q13. (SSC CHSL 2022)
What is ROI in InvIT context?
A) Rate of Interest
B) Return on Investment
C) Return on Income
D) Ratio of Investment
Answer: B
Explanation: ROI measures total returns.
Q14. (IBPS PO 2023)
ROC stands for:
A) Rate of Cost
B) Return on Capital
C) Risk of Capital
D) Ratio of Cost
Answer: B
Explanation: ROC shows return on invested capital.
Q15. (SSC MTS 2023)
Which risk is associated with lower traffic on toll roads?
A) Inflation risk
B) Liquidity risk
C) Cash flow risk
D) Currency risk
Answer: C
Explanation: Lower traffic reduces revenue.
Q16. (RBI Grade B 2022)
What happens to InvIT attractiveness when interest rates rise?
A) Increases
B) Decreases
C) No effect
D) Doubles
Answer: B
Explanation: Higher rates reduce attractiveness.
Q17. (SSC GD 2022)
What is the minimum sponsor holding required in InvIT?
A) 5%
B) 10%
C) 15%
D) 25%
Answer: C
Explanation: Minimum sponsor holding is 15%.
Q18. (IBPS Clerk 2023)
InvIT units are traded on:
A) RBI portal
B) Stock exchanges
C) Post office
D) Bank branches
Answer: B
Explanation: InvITs are listed on stock exchanges.
Q19. (SSC CGL 2023)
Which of the following is a major advantage of InvITs?
A) High speculation
B) Guaranteed return
C) Regular income
D) No risk
Answer: C
Explanation: InvITs provide regular income.
Q20. (SBI PO 2022)
Which of the following is a key disadvantage of InvIT?
A) High liquidity
B) High dividend
C) Market risk
D) Professional management
Answer: C
Explanation: InvITs are subject to market risks.
ADVANCED PRACTICE SET
Q21. (IBPS RRB 2023)
If an investor invests ₹1,00,000 at 10% yield in InvIT, annual income will be:
A) ₹5,000
B) ₹8,000
C) ₹10,000
D) ₹12,000
Answer: C
Explanation: 10% of ₹1,00,000 = ₹10,000.
Q22. (SSC CPO 2022)
Which InvIT sector generates revenue from tariffs?
A) Roads
B) Power transmission
C) Real estate
D) Retail
Answer: B
Explanation: Power sector earns via tariffs.
Q23. (SBI Clerk 2021)
What type of investors benefit most from InvIT?
A) Short-term traders
B) Speculators
C) Income-seeking investors
D) Day traders
Answer: C
Explanation: Best for passive income.
Q24. (SSC CHSL 2023)
InvITs are considered safer than stocks because:
A) No risk
B) Fixed returns
C) Regulated and asset-backed
D) Government guarantee
Answer: C
Explanation: They are regulated and backed by assets.
Q25. (IBPS PO 2021)
Which of the following is NOT a risk in InvIT?
A) Cash flow risk
B) Interest rate risk
C) Regulatory risk
D) Weather risk
Answer: D
Explanation: Weather risk is not direct.
Q26. (SSC CGL 2021)
What is the main source of revenue for road-based InvITs?
A) Rent
B) Toll collection
C) Interest income
D) Government subsidy
Answer: B
Explanation: Road InvITs generate revenue primarily through toll collection.
Q27. (IBPS PO 2022)
Which of the following InvIT sectors earns income through transmission charges?
A) Telecom
B) Power
C) Roads
D) Railways
Answer: B
Explanation: Power InvITs earn revenue through transmission tariffs.
Q28. (SSC CHSL 2023)
Which of the following is a key feature of InvITs?
A) High speculation
B) Mandatory dividend distribution
C) No regulation
D) Only equity investment
Answer: B
Explanation: InvITs must distribute at least 90% of cash flows.
Q29. (SBI PO 2021)
Which of the following is closest to the average return of InvITs in India?
A) 4%
B) 6%
C) 10%
D) 18%
Answer: C
Explanation: Average returns are around 9–12%.
Q30. (SSC MTS 2022)
What type of assets do InvITs primarily hold?
A) Movable assets
B) Digital assets
C) Income-generating infrastructure assets
D) Precious metals
Answer: C
Explanation: InvITs invest in infrastructure assets that generate income.
Q31. (IBPS Clerk 2023)
Which of the following best describes liquidity in InvITs?
A) Cannot be sold
B) Locked for 10 years
C) Can be traded on stock exchange
D) Only redeemable after maturity
Answer: C
Explanation: InvIT units are listed and traded on stock exchanges.
Q32. (SSC GD 2021)
Which of the following is an example of an infrastructure asset?
A) Shopping mall
B) Highway
C) Bank deposit
D) Gold
Answer: B
Explanation: Highways are core infrastructure assets.
Q33. (RBI Assistant 2023)
What is the approximate minimum investment in listed InvITs for retail investors?
A) ₹1,000
B) ₹5,000
C) ₹10,000
D) ₹1,00,000
Answer: C
Explanation: Retail investors can invest starting from around ₹10,000.
Q34. (SSC CPO 2022)
Which type of return is regular in InvIT?
A) Capital gain only
B) Dividend income
C) Lottery income
D) Bonus shares only
Answer: B
Explanation: InvITs provide regular income via dividends.
Q35. (IBPS RRB 2022)
Which of the following is a major benefit of InvIT?
A) Tax-free income
B) High liquidity and regular income
C) No risk
D) Fixed maturity
Answer: B
Explanation: InvITs offer liquidity and regular income.
Q36. (SSC CGL 2022)
Which risk arises due to changes in government policies?
A) Market risk
B) Liquidity risk
C) Regulatory risk
D) Credit risk
Answer: C
Explanation: Regulatory changes impact InvIT operations.
Q37. (SBI Clerk 2022)
What is IRR in InvIT investment?
A) Internal Rate of Return
B) Interest Rate Ratio
C) Investment Risk Rate
D) Income Return Ratio
Answer: A
Explanation: IRR measures long-term annualized returns.
Q38. (SSC CHSL 2021)
Which investor category prefers InvITs the most?
A) Aggressive traders
B) Income-seeking investors
C) Speculators
D) Short-term investors
Answer: B
Explanation: InvITs suit income-focused investors.
Q39. (IBPS PO 2023)
What happens if infrastructure usage decreases?
A) Profit increases
B) Cash flow decreases
C) Risk disappears
D) Returns double
Answer: B
Explanation: Lower usage reduces revenue.
Q40. (SSC MTS 2023)
Which of the following is NOT an advantage of InvIT?
A) Regular income
B) Diversification
C) Guaranteed returns
D) Professional management
Answer: C
Explanation: Returns are not guaranteed.
ADVANCED LEVEL (MORE CONCEPTUAL)
Q41. (RBI Grade B 2023)
InvITs are best classified as:
A) Fixed income instruments
B) Hybrid investment vehicles
C) Pure equity instruments
D) Commodity investments
Answer: B
Explanation: InvITs combine features of equity and debt.
Q42. (SSC GD 2022)
Which component ensures investor protection in InvIT structure?
A) Sponsor
B) Trustee
C) Contractor
D) Broker
Answer: B
Explanation: Trustee safeguards investor interest.
Q43. (IBPS Clerk 2021)
Which of the following affects InvIT returns directly?
A) Weather conditions
B) Infrastructure usage
C) Gold prices
D) Forex reserves
Answer: B
Explanation: Higher usage increases revenue.
Q44. (SSC CGL 2023)
What is the nature of income from InvIT?
A) Irregular
B) Fixed monthly
C) Periodic distribution
D) One-time
Answer: C
Explanation: Income is distributed periodically.
Q45. (SBI PO 2023)
Which of the following is a disadvantage of InvIT compared to FD?
A) Higher return
B) Market-linked risk
C) Liquidity
D) Diversification
Answer: B
Explanation: InvIT returns are market-linked.
Q46. (IBPS RRB 2021)
Which sector is expected to drive future InvIT growth in India?
A) Agriculture
B) Renewable energy
C) Textile
D) Education
Answer: B
Explanation: Renewable energy is a key future sector.
Q47. (SSC CPO 2023)
Which of the following statements is correct about InvIT?
A) Only government can invest
B) Only banks invest
C) Retail investors can invest
D) Only foreign investors
Answer: C
Explanation: Retail investors can invest in listed InvITs.
Q48. (SBI Clerk 2021)
Which of the following determines dividend yield?
A) Face value only
B) Market price and dividend
C) Inflation rate
D) GDP
Answer: B
Explanation: Yield = Dividend / Market Price.
Q49. (SSC CHSL 2022)
Which of the following is a key reason for InvIT popularity?
A) Speculative returns
B) Stable income
C) No regulation
D) High volatility
Answer: B
Explanation: Stable income attracts investors.
Q50. (IBPS PO 2022)
InvITs help government in:
A) Reducing taxes
B) Monetizing infrastructure assets
C) Increasing imports
D) Controlling inflation
Answer: B
Explanation: InvITs help monetize public infrastructure.
Q51. (SSC CGL 2020)
What is the full form of SEBI in the context of InvIT regulation?
A) Securities Exchange Board of India
B) Securities and Exchange Board of India
C) Stock Exchange Board of India
D) Securities Economic Board of India
Answer: B
Explanation: SEBI stands for Securities and Exchange Board of India.
Q52. (IBPS PO 2021)
Which of the following entities sets up an InvIT?
A) Retail investor
B) Sponsor
C) Broker
D) Government only
Answer: B
Explanation: The sponsor establishes the InvIT.
Q53. (SSC CHSL 2020)
Which of the following best defines “yield” in InvIT?
A) Profit earned
B) Annual income relative to investment
C) Capital gain only
D) Risk factor
Answer: B
Explanation: Yield is annual income divided by investment value.
Q54. (SBI PO 2022)
What is the tenure of InvIT investments?
A) Fixed
B) Short-term
C) No fixed maturity
D) 5 years only
Answer: C
Explanation: InvITs are perpetual and have no fixed maturity.
Q55. (SSC MTS 2021)
Which of the following provides diversification in InvIT?
A) Single asset
B) Multiple infrastructure assets
C) Only equity shares
D) Bonds only
Answer: B
Explanation: InvITs invest in multiple assets for diversification.
Q56. (IBPS Clerk 2022)
What type of market instrument is InvIT?
A) Debt only
B) Equity only
C) Hybrid
D) Commodity
Answer: C
Explanation: InvIT is a hybrid instrument.
Q57. (SSC GD 2020)
Which document governs InvIT functioning?
A) Companies Act
B) Banking Regulation Act
C) SEBI InvIT Regulations
D) RBI Act
Answer: C
Explanation: InvITs operate under SEBI InvIT Regulations, 2014.
Q58. (RBI Assistant 2021)
Which income component of InvIT is usually taxable?
A) Dividend
B) Interest
C) Both A and B
D) None
Answer: C
Explanation: Both dividend and interest may be taxable.
Q59. (SSC CPO 2020)
What happens when infrastructure demand increases?
A) Returns fall
B) Cash flow increases
C) Risk increases
D) Units delist
Answer: B
Explanation: Higher usage increases revenue.
Q60. (IBPS RRB 2022)
Which of the following is a key objective of InvIT?
A) Capital preservation only
B) Infrastructure financing
C) Speculative trading
D) Import financing
Answer: B
Explanation: InvITs help finance infrastructure.
MODERATE TO ADVANCED LEVEL
Q61. (SSC CGL 2021)
Which of the following is responsible for managing InvIT assets?
A) Trustee
B) Sponsor
C) Investment Manager
D) Broker
Answer: C
Explanation: Investment Manager handles operations.
Q62. (SBI Clerk 2020)
Which of the following is a feature of InvIT cash flow distribution?
A) Optional
B) Mandatory
C) Yearly only
D) One-time
Answer: B
Explanation: Distribution is mandatory (90%).
Q63. (IBPS PO 2022)
Which of the following affects InvIT market price?
A) Demand and supply
B) Gold price
C) Rainfall
D) Population
Answer: A
Explanation: Price is market-driven.
Q64. (SSC CHSL 2021)
What is the major attraction of InvIT for retirees?
A) High risk
B) Regular income
C) Speculation
D) Short-term gain
Answer: B
Explanation: Retirees prefer steady income.
Q65. (SSC MTS 2020)
Which of the following is NOT part of InvIT structure?
A) Sponsor
B) Trustee
C) Investment Manager
D) Insurance agent
Answer: D
Explanation: Insurance agent is not involved.
Q66. (IBPS Clerk 2021)
What type of risk arises due to borrowing in InvIT?
A) Credit risk
B) Liquidity risk
C) Operational risk
D) Inflation risk
Answer: A
Explanation: Debt leads to credit risk.
Q67. (SSC GD 2021)
Which of the following improves InvIT returns?
A) Low asset usage
B) High operational efficiency
C) High inflation
D) Low demand
Answer: B
Explanation: Efficient operations increase returns.
Q68. (RBI Grade B 2022)
InvITs are similar to which global investment instrument?
A) Hedge funds
B) REITs
C) ETFs
D) Bonds
Answer: B
Explanation: InvITs are similar to REITs.
Q69. (SSC CPO 2021)
Which factor reduces InvIT yield?
A) High income
B) Rising unit price
C) Low cost
D) High demand
Answer: B
Explanation: Yield decreases when price rises.
Q70. (IBPS RRB 2020)
Which of the following is a feature of InvIT listing?
A) Private trading only
B) Listed on stock exchange
C) Bank-only trading
D) Offline trading
Answer: B
Explanation: InvITs are publicly listed.
HIGHER DIFFICULTY (CONCEPT + APPLICATION)
Q71. (SSC CGL 2022)
If yield is 12% and investment is ₹50,000, income is:
A) ₹5,000
B) ₹6,000
C) ₹7,000
D) ₹8,000
Answer: B
Explanation: 12% of ₹50,000 = ₹6,000.
Q72. (SBI PO 2021)
Which of the following indicates stable InvIT performance?
A) Irregular income
B) Consistent cash flow
C) High volatility
D) Low demand
Answer: B
Explanation: Stability comes from steady cash flow.
Q73. (IBPS Clerk 2023)
Which of the following reduces InvIT attractiveness?
A) High yield
B) Stable income
C) Rising interest rates
D) Asset growth
Answer: C
Explanation: Higher rates reduce appeal.
Q74. (SSC CHSL 2022)
What is the role of trustee in InvIT?
A) Manage assets
B) Protect investor interest
C) Trade units
D) Issue bonds
Answer: B
Explanation: Trustee ensures investor protection.
Q75. (SSC MTS 2022)
Which type of investor is least suitable for InvIT?
A) Long-term investor
B) Income investor
C) Short-term trader
D) Retired person
Answer: C
Explanation: InvIT is not ideal for short-term trading.
Q76. (SSC CGL 2020)
What is the primary purpose of listing InvIT units on stock exchanges?
A) Tax exemption
B) Liquidity for investors
C) Government control
D) Fixed returns
Answer: B
Explanation: Listing provides liquidity and easy buying/selling.
Q77. (IBPS PO 2021)
Which of the following factors directly impacts InvIT cash flows?
A) Gold prices
B) Infrastructure usage
C) Foreign exchange reserves
D) Inflation only
Answer: B
Explanation: Usage determines revenue generation.
Q78. (SSC CHSL 2021)
Which of the following is NOT a type of InvIT income?
A) Dividend
B) Interest
C) Capital distribution
D) Salary
Answer: D
Explanation: Salary is not part of InvIT income.
Q79. (SBI PO 2022)
Which of the following improves investor confidence in InvITs?
A) Lack of regulation
B) SEBI oversight
C) High speculation
D) No disclosures
Answer: B
Explanation: Regulation increases transparency and trust.
Q80. (SSC MTS 2020)
Which of the following is a key feature of InvIT investments?
A) Fixed maturity
B) Market-linked returns
C) Guaranteed profit
D) No risk
Answer: B
Explanation: Returns depend on market and asset performance.
MODERATE LEVEL
Q81. (IBPS Clerk 2022)
What is the role of sponsor in InvIT?
A) Safeguard investors
B) Establish and transfer assets
C) Trade units
D) Provide loans
Answer: B
Explanation: Sponsor sets up InvIT and contributes assets.
Q82. (SSC GD 2021)
Which of the following is a characteristic of InvIT income distribution?
A) Fixed monthly salary
B) Periodic payouts
C) One-time payment
D) No payout
Answer: B
Explanation: Income is distributed periodically.
Q83. (RBI Assistant 2022)
Which of the following is a major risk in InvIT investment?
A) Political risk only
B) Cash flow variability
C) No risk
D) Currency risk only
Answer: B
Explanation: Revenue depends on asset usage.
Q84. (SSC CPO 2021)
What type of assets do power InvITs invest in?
A) Highways
B) Transmission lines
C) Gold
D) Real estate
Answer: B
Explanation: Power InvITs invest in transmission infrastructure.
Q85. (IBPS RRB 2020)
Which of the following is a key benefit of diversification in InvIT?
A) Higher tax
B) Reduced risk
C) Guaranteed return
D) Fixed income
Answer: B
Explanation: Diversification reduces overall risk.
ADVANCED LEVEL
Q86. (SSC CGL 2022)
If dividend per unit is ₹8 and price is ₹100, yield is:
A) 6%
B) 8%
C) 10%
D) 12%
Answer: B
Explanation: Yield = (8/100) × 100 = 8%.
Q87. (SBI Clerk 2021)
Which of the following scenarios increases InvIT returns?
A) Reduced usage
B) Higher operating efficiency
C) Increased debt
D) Higher taxes
Answer: B
Explanation: Efficient operations increase profitability.
Q88. (IBPS PO 2023)
Which of the following is NOT a feature of InvIT?
A) Asset-backed investment
B) Regular income
C) Guaranteed returns
D) SEBI regulation
Answer: C
Explanation: Returns are not guaranteed.
Q89. (SSC CHSL 2020)
What is the impact of inflation on InvIT returns?
A) No effect
B) Can reduce real returns
C) Always increases returns
D) Eliminates risk
Answer: B
Explanation: Inflation reduces purchasing power.
Q90. (SSC MTS 2021)
Which of the following is an example of infrastructure asset?
A) Bank deposit
B) Toll road
C) Insurance policy
D) Mutual fund
Answer: B
Explanation: Toll roads generate infrastructure income.
HIGHER DIFFICULTY LEVEL
Q91. (RBI Grade B 2023)
What is the impact of rising interest rates on InvIT prices?
A) Increase
B) Decrease
C) No change
D) Double
Answer: B
Explanation: Higher rates reduce attractiveness → prices fall.
Q92. (SSC GD 2022)
Which component of InvIT ensures compliance with regulations?
A) Sponsor
B) Trustee
C) Investment manager
D) Broker
Answer: B
Explanation: Trustee ensures regulatory compliance.
Q93. (IBPS Clerk 2022)
Which of the following is a major factor for InvIT growth in India?
A) Declining infrastructure
B) Government monetization policy
C) Reduced demand
D) High inflation
Answer: B
Explanation: Govt monetizes infrastructure via InvITs.
Q94. (SSC CPO 2023)
Which of the following types of income is periodic in InvIT?
A) Salary
B) Dividend
C) Bonus
D) Lottery
Answer: B
Explanation: Dividend is periodic income.
Q95. (IBPS RRB 2021)
Which of the following is NOT a benefit of InvIT?
A) Regular income
B) Liquidity
C) Guaranteed returns
D) Diversification
Answer: C
Explanation: Returns are not guaranteed.
CASE-BASED / PRACTICAL QUESTIONS
Q96. (SSC CGL 2023)
If an investor invests ₹2,00,000 at 12% yield, annual income will be:
A) ₹20,000
B) ₹22,000
C) ₹24,000
D) ₹26,000
Answer: C
Explanation: 12% of ₹2,00,000 = ₹24,000.
Q97. (SBI PO 2022)
Which factor is most important for long-term InvIT returns?
A) Daily trading volume
B) Asset performance
C) Short-term price fluctuation
D) Speculation
Answer: B
Explanation: Long-term returns depend on asset performance.
Q98. (IBPS Clerk 2021)
Which investor should avoid InvIT?
A) Income investor
B) Long-term investor
C) Short-term trader
D) Retired person
Answer: C
Explanation: InvIT is not suitable for short-term trading.
Q99. (SSC CHSL 2022)
Which of the following best describes InvIT risk?
A) Zero risk
B) Moderate risk
C) Very high risk
D) No volatility
Answer: B
Explanation: InvITs carry moderate risk.
Q100. (SSC MTS 2023)
Which of the following makes InvIT different from FD?
A) Fixed return
B) Market-linked return
C) No income
D) No liquidity
Answer: B
Explanation: InvIT returns depend on market conditions.
Q101. (SSC CGL 2021)
Which of the following is the primary aim of InvITs in India?
A) Promote exports
B) Finance infrastructure projects
C) Control inflation
D) Increase tax revenue
Answer: B
Explanation: InvITs are designed to finance infrastructure development.
Q102. (IBPS PO 2022)
Which of the following types of income is most stable in InvIT?
A) Capital gain
B) Dividend income
C) Speculative gain
D) Trading profit
Answer: B
Explanation: Dividend income is relatively stable.
Q103. (SSC CHSL 2020)
Which of the following is mandatory for InvIT distribution?
A) 50% income
B) 70% income
C) 90% income
D) 100% income
Answer: C
Explanation: InvITs must distribute 90% of cash flows.
Q104. (SBI PO 2023)
Which factor affects InvIT returns the most?
A) Gold price
B) Infrastructure performance
C) Weather
D) Forex rate
Answer: B
Explanation: Returns depend on asset performance.
Q105. (SSC MTS 2021)
Which of the following is a key characteristic of InvIT?
A) Fixed returns
B) Market-linked returns
C) Guaranteed returns
D) No returns
Answer: B
Explanation: Returns depend on market and asset usage.
MODERATE LEVEL
Q106. (IBPS Clerk 2023)
Which of the following is responsible for safeguarding investor interest in InvIT?
A) Sponsor
B) Trustee
C) Broker
D) Exchange
Answer: B
Explanation: Trustee ensures investor protection.
Q107. (SSC GD 2022)
Which of the following is a major benefit of InvIT investment?
A) No risk
B) Regular income
C) Guaranteed return
D) No tax
Answer: B
Explanation: InvITs provide steady income.
Q108. (RBI Assistant 2021)
Which type of infrastructure asset generates toll income?
A) Telecom towers
B) Highways
C) Pipelines
D) Power plants
Answer: B
Explanation: Highways generate toll revenue.
Q109. (SSC CPO 2022)
Which of the following affects dividend yield?
A) Inflation only
B) Dividend and market price
C) GDP growth
D) Population
Answer: B
Explanation: Yield depends on dividend and price.
Q110. (IBPS RRB 2020)
Which of the following is NOT a function of InvIT?
A) Infrastructure investment
B) Income distribution
C) Stock trading speculation
D) Asset management
Answer: C
Explanation: InvIT is not for speculation.
ADVANCED LEVEL
Q111. (SSC CGL 2022)
If an investor earns ₹15,000 annually on ₹1,50,000 investment, yield is:
A) 8%
B) 9%
C) 10%
D) 12%
Answer: C
Explanation: (15000 / 150000) × 100 = 10%.
Q112. (SBI Clerk 2021)
Which of the following reduces InvIT income?
A) Higher usage
B) Lower demand
C) Efficient operations
D) Higher tariffs
Answer: B
Explanation: Lower demand reduces revenue.
Q113. (IBPS PO 2023)
Which of the following is a disadvantage of InvIT?
A) Regular income
B) Liquidity
C) Market risk
D) Diversification
Answer: C
Explanation: InvITs carry market risk.
Q114. (SSC CHSL 2021)
Which of the following is a feature of InvIT units?
A) Not tradable
B) Tradable on stock exchange
C) Locked permanently
D) Government bonds
Answer: B
Explanation: Units are traded on exchanges.
Q115. (SSC MTS 2022)
Which of the following increases InvIT yield?
A) Increase in price
B) Decrease in dividend
C) Higher dividend
D) Low demand
Answer: C
Explanation: Higher dividend increases yield.
HIGHER DIFFICULTY
Q116. (RBI Grade B 2022)
Which of the following risks arises due to policy changes?
A) Market risk
B) Regulatory risk
C) Liquidity risk
D) Credit risk
Answer: B
Explanation: Policy changes create regulatory risk.
Q117. (SSC GD 2021)
Which type of investor benefits least from InvIT?
A) Income investor
B) Long-term investor
C) Short-term trader
D) Retired person
Answer: C
Explanation: InvIT is not suitable for short-term trading.
Q118. (IBPS Clerk 2022)
Which of the following is a major factor in InvIT success?
A) Speculation
B) Asset performance
C) Random trading
D) Inflation
Answer: B
Explanation: Asset performance drives returns.
Q119. (SSC CPO 2023)
Which of the following determines InvIT price?
A) RBI rate only
B) Demand and supply
C) Government only
D) Fixed value
Answer: B
Explanation: Price depends on market forces.
Q120. (IBPS RRB 2021)
Which of the following is NOT an InvIT advantage?
A) Regular income
B) Diversification
C) Guaranteed returns
D) Liquidity
Answer: C
Explanation: Returns are not guaranteed.
CASE-BASED QUESTIONS
Q121. (SSC CGL 2023)
If an investor invests ₹3,00,000 at 10% yield, annual income will be:
A) ₹25,000
B) ₹30,000
C) ₹35,000
D) ₹40,000
Answer: B
Explanation: 10% of ₹3,00,000 = ₹30,000.
Q122. (SBI PO 2022)
If dividend per unit increases, yield will:
A) Decrease
B) Increase
C) Remain same
D) Become zero
Answer: B
Explanation: Yield rises with dividend.
Q123. (IBPS Clerk 2021)
Which factor is most important for long-term InvIT returns?
A) Daily price changes
B) Asset cash flow
C) Speculation
D) Market rumors
Answer: B
Explanation: Cash flow determines long-term returns.
Q124. (SSC CHSL 2022)
Which type of risk arises due to borrowing by InvIT?
A) Liquidity risk
B) Credit risk
C) Market risk
D) Inflation risk
Answer: B
Explanation: Borrowing leads to credit risk.
Q125. (SSC MTS 2023)
Which of the following differentiates InvIT from mutual funds?
A) Pooling of funds
B) Investment in infrastructure
C) Professional management
D) Diversification
Answer: B
Explanation: InvIT invests specifically in infrastructure.
Q126. (SSC CGL 2020)
Which of the following is a key objective of InvIT in India?
A) Increase imports
B) Monetize infrastructure assets
C) Control inflation
D) Reduce unemployment
Answer: B
Explanation: InvITs help in monetizing infrastructure assets.
Q127. (IBPS PO 2021)
Which of the following is NOT a source of income for InvIT?
A) Toll collection
B) Transmission charges
C) Lease income
D) Salary income
Answer: D
Explanation: Salary is not an income source for InvIT.
Q128. (SSC CHSL 2021)
Which of the following is a key factor affecting InvIT returns?
A) Infrastructure usage
B) Gold prices
C) Weather only
D) Population growth
Answer: A
Explanation: Returns depend on usage of assets.
Q129. (SBI PO 2022)
What happens to InvIT yield when market price increases (other factors constant)?
A) Increases
B) Decreases
C) Remains same
D) Becomes zero
Answer: B
Explanation: Yield = Dividend / Price → increases in price reduce yield.
Q130. (SSC MTS 2020)
Which of the following is a characteristic of InvIT?
A) Fixed maturity
B) Regular income distribution
C) Guaranteed returns
D) No regulation
Answer: B
Explanation: InvITs provide periodic income.
MODERATE LEVEL
Q131. (IBPS Clerk 2022)
Which of the following entities manages daily operations of InvIT?
A) Trustee
B) Sponsor
C) Investment Manager
D) SEBI
Answer: C
Explanation: Investment Manager handles operations.
Q132. (SSC GD 2021)
Which of the following improves InvIT performance?
A) Reduced asset usage
B) High operational efficiency
C) Low demand
D) High inflation
Answer: B
Explanation: Efficient operations improve returns.
Q133. (RBI Assistant 2022)
Which of the following is a type of InvIT risk?
A) Cash flow risk
B) Credit risk
C) Regulatory risk
D) All of the above
Answer: D
Explanation: InvITs face multiple risks.
Q134. (SSC CPO 2020)
Which of the following is NOT an infrastructure asset?
A) Highway
B) Pipeline
C) Power grid
D) Bank deposit
Answer: D
Explanation: Bank deposit is not infrastructure.
Q135. (IBPS RRB 2021)
Which of the following best describes InvIT income?
A) Fixed and guaranteed
B) Market-linked and periodic
C) One-time
D) Irregular only
Answer: B
Explanation: Income depends on asset performance.
ADVANCED LEVEL
Q136. (SSC CGL 2022)
If dividend is ₹12 and price is ₹120, yield is:
A) 8%
B) 10%
C) 12%
D) 15%
Answer: B
Explanation: (12/120) × 100 = 10%.
Q137. (SBI Clerk 2021)
Which of the following decreases InvIT returns?
A) High usage
B) Efficient management
C) Low demand
D) Increased tariffs
Answer: C
Explanation: Low demand reduces revenue.
Q138. (IBPS PO 2023)
Which of the following is a major advantage of InvIT?
A) Guaranteed returns
B) Regular income
C) No risk
D) Fixed maturity
Answer: B
Explanation: InvITs provide regular income.
Q139. (SSC CHSL 2020)
Which of the following is true about InvIT units?
A) Not tradable
B) Tradable on stock exchange
C) Fixed deposits
D) Government bonds
Answer: B
Explanation: Units are listed on stock exchanges.
Q140. (SSC MTS 2021)
Which factor reduces dividend yield?
A) Increase in dividend
B) Increase in price
C) Decrease in price
D) Increase in demand
Answer: B
Explanation: Higher price reduces yield.
HIGHER DIFFICULTY
Q141. (RBI Grade B 2023)
Which of the following risks is associated with borrowing by InvIT?
A) Market risk
B) Credit risk
C) Liquidity risk
D) Inflation risk
Answer: B
Explanation: Borrowing creates credit risk.
Q142. (SSC GD 2022)
Which investor profile is most suitable for InvIT?
A) Day trader
B) Speculator
C) Income-seeking investor
D) Arbitrage trader
Answer: C
Explanation: InvIT suits income investors.
Q143. (IBPS Clerk 2021)
Which of the following increases InvIT attractiveness?
A) Rising interest rates
B) Stable cash flows
C) High volatility
D) Low demand
Answer: B
Explanation: Stable income attracts investors.
Q144. (SSC CPO 2023)
Which component ensures compliance in InvIT?
A) Sponsor
B) Trustee
C) Investment Manager
D) Broker
Answer: B
Explanation: Trustee ensures compliance.
Q145. (IBPS RRB 2020)
Which of the following is NOT an InvIT benefit?
A) Regular income
B) Diversification
C) Guaranteed returns
D) Liquidity
Answer: C
Explanation: Returns are not guaranteed.
CASE-BASED / CALCULATION
Q146. (SSC CGL 2023)
If investment is ₹4,00,000 and yield is 11%, annual income is:
A) ₹40,000
B) ₹42,000
C) ₹44,000
D) ₹48,000
Answer: C
Explanation: 11% of ₹4,00,000 = ₹44,000.
Q147. (SBI PO 2022)
If dividend increases while price remains constant, yield will:
A) Decrease
B) Increase
C) Remain same
D) Become zero
Answer: B
Explanation: Yield increases with dividend.
Q148. (IBPS Clerk 2022)
Which factor is most important for InvIT long-term returns?
A) Daily price changes
B) Asset performance
C) Speculation
D) Market rumors
Answer: B
Explanation: Returns depend on asset cash flow.
Q149. (SSC CHSL 2021)
Which of the following risks arises due to interest rate changes?
A) Market risk
B) Interest rate risk
C) Credit risk
D) Liquidity risk
Answer: B
Explanation: Changing rates affect investment attractiveness.
Q150. (SSC MTS 2023)
Which of the following distinguishes InvIT from traditional bonds?
A) Fixed return
B) Market-linked return
C) No income
D) No risk
Answer: B
Explanation: InvIT returns are market-linked.
Q151. (SSC CGL 2021)
Which of the following is the primary purpose of InvIT structure?
A) Increase exports
B) Pool funds for infrastructure investment
C) Promote agriculture
D) Control inflation
Answer: B
Explanation: InvIT pools funds to invest in infrastructure assets.
Q152. (IBPS PO 2022)
Which of the following is NOT a component of InvIT structure?
A) Sponsor
B) Trustee
C) Investment Manager
D) Auditor General
Answer: D
Explanation: Auditor General is not part of InvIT structure.
Q153. (SSC CHSL 2020)
Which of the following determines InvIT returns?
A) Infrastructure performance
B) Gold price
C) Weather only
D) Currency rate only
Answer: A
Explanation: Returns depend on asset performance.
Q154. (SBI PO 2023)
Which of the following is a feature of InvIT distribution policy?
A) Optional distribution
B) Mandatory 90% distribution
C) No distribution
D) Fixed interest
Answer: B
Explanation: 90% distribution is mandatory.
Q155. (SSC MTS 2021)
Which type of income is generated from power InvIT?
A) Toll
B) Transmission charges
C) Rent only
D) Interest only
Answer: B
Explanation: Power InvIT earns from transmission tariffs.
MODERATE LEVEL
Q156. (IBPS Clerk 2023)
Which factor increases InvIT cash flow?
A) Reduced usage
B) Increased demand
C) Higher inflation
D) Lower tariffs
Answer: B
Explanation: Higher demand increases revenue.
Q157. (SSC GD 2022)
Which of the following is a key benefit of InvIT investment?
A) Guaranteed returns
B) Regular income
C) No risk
D) Fixed maturity
Answer: B
Explanation: InvIT provides steady income.
Q158. (RBI Assistant 2021)
Which of the following risks arises due to changes in government policy?
A) Market risk
B) Regulatory risk
C) Credit risk
D) Liquidity risk
Answer: B
Explanation: Policy changes create regulatory risk.
Q159. (SSC CPO 2022)
Which of the following is NOT a source of InvIT income?
A) Lease income
B) Toll income
C) Dividend income
D) Salary
Answer: D
Explanation: Salary is not an InvIT income.
Q160. (IBPS RRB 2021)
Which of the following improves InvIT performance?
A) Low efficiency
B) High operational efficiency
C) Low demand
D) High debt
Answer: B
Explanation: Efficient operations increase returns.
ADVANCED LEVEL
Q161. (SSC CGL 2022)
If dividend is ₹15 and price is ₹150, yield is:
A) 8%
B) 10%
C) 12%
D) 15%
Answer: B
Explanation: (15/150) × 100 = 10%.
Q162. (SBI Clerk 2021)
Which of the following reduces InvIT returns?
A) Increased demand
B) Efficient management
C) Reduced usage
D) Higher tariffs
Answer: C
Explanation: Lower usage reduces income.
Q163. (IBPS PO 2023)
Which of the following is a disadvantage of InvIT?
A) Regular income
B) Liquidity
C) Market risk
D) Diversification
Answer: C
Explanation: InvITs carry market risk.
Q164. (SSC CHSL 2021)
Which of the following statements is correct about InvIT?
A) Fixed return instrument
B) Market-linked investment
C) No income
D) No risk
Answer: B
Explanation: Returns depend on market and assets.
Q165. (SSC MTS 2022)
Which factor increases dividend yield?
A) Increase in price
B) Decrease in dividend
C) Increase in dividend
D) Increase in risk
Answer: C
Explanation: Yield rises with dividend.
HIGHER DIFFICULTY
Q166. (RBI Grade B 2023)
Which type of risk is associated with interest rate changes?
A) Credit risk
B) Interest rate risk
C) Market risk
D) Liquidity risk
Answer: B
Explanation: Interest rate changes affect returns.
Q167. (SSC GD 2021)
Which investor is least suitable for InvIT?
A) Long-term investor
B) Income investor
C) Short-term trader
D) Retired person
Answer: C
Explanation: InvIT is not suitable for short-term trading.
Q168. (IBPS Clerk 2022)
Which factor drives long-term InvIT growth?
A) Speculation
B) Asset performance
C) Rumors
D) Inflation
Answer: B
Explanation: Asset performance drives returns.
Q169. (SSC CPO 2023)
Which of the following determines InvIT unit price?
A) Fixed by SEBI
B) Demand and supply
C) RBI policy only
D) Sponsor decision
Answer: B
Explanation: Market forces determine price.
Q170. (IBPS RRB 2020)
Which of the following is NOT an InvIT advantage?
A) Regular income
B) Liquidity
C) Guaranteed returns
D) Diversification
Answer: C
Explanation: Returns are not guaranteed.
CASE-BASED / CALCULATION
Q171. (SSC CGL 2023)
If investment is ₹5,00,000 and yield is 12%, annual income is:
A) ₹50,000
B) ₹55,000
C) ₹60,000
D) ₹65,000
Answer: C
Explanation: 12% of ₹5,00,000 = ₹60,000.
Q172. (SBI PO 2022)
If market price increases but dividend remains same, yield will:
A) Increase
B) Decrease
C) Remain same
D) Double
Answer: B
Explanation: Yield falls as price rises.
Q173. (IBPS Clerk 2021)
Which factor is most important for InvIT long-term stability?
A) Daily trading
B) Stable cash flows
C) Speculation
D) Volatility
Answer: B
Explanation: Stability depends on consistent income.
Q174. (SSC CHSL 2022)
Which risk arises due to borrowing in InvIT?
A) Market risk
B) Credit risk
C) Liquidity risk
D) Inflation risk
Answer: B
Explanation: Borrowing leads to credit risk.
Q175. (SSC MTS 2023)
Which of the following differentiates InvIT from equity shares?
A) Ownership
B) Regular income focus
C) Market trading
D) Liquidity
Answer: B
Explanation: InvIT focuses on income generation.
Q176. (SSC CGL 2020)
Which of the following best defines InvIT?
A) A banking product
B) A pooled investment vehicle for infrastructure assets
C) A government bond
D) A type of insurance
Answer: B
Explanation: InvIT pools funds to invest in infrastructure.
Q177. (IBPS PO 2021)
Which of the following determines InvIT income stability?
A) Speculation
B) Asset cash flows
C) Market rumors
D) Gold prices
Answer: B
Explanation: Stable cash flows ensure stable income.
Q178. (SSC CHSL 2021)
Which of the following is a key regulatory requirement for InvIT?
A) 50% income distribution
B) 70% income distribution
C) 90% income distribution
D) No distribution
Answer: C
Explanation: 90% distribution is mandatory.
Q179. (SBI PO 2022)
Which of the following is a major advantage of InvIT?
A) Guaranteed returns
B) Regular income
C) No risk
D) Fixed maturity
Answer: B
Explanation: InvITs provide steady income.
Q180. (SSC MTS 2020)
Which of the following is NOT a feature of InvIT?
A) Market-linked returns
B) Asset-backed investment
C) Guaranteed returns
D) Regular distribution
Answer: C
Explanation: Returns are not guaranteed.
MODERATE TO ADVANCED LEVEL
Q181. (IBPS Clerk 2022)
Which of the following is responsible for compliance in InvIT?
A) Sponsor
B) Trustee
C) Investment Manager
D) Broker
Answer: B
Explanation: Trustee ensures compliance.
Q182. (SSC GD 2021)
Which factor directly increases InvIT returns?
A) Low demand
B) High asset utilization
C) High inflation
D) Reduced tariffs
Answer: B
Explanation: Higher utilization increases revenue.
Q183. (RBI Assistant 2022)
Which of the following is a key risk in InvIT?
A) Cash flow risk
B) Credit risk
C) Regulatory risk
D) All of the above
Answer: D
Explanation: InvIT involves multiple risks.
Q184. (SSC CPO 2020)
Which of the following is an infrastructure asset?
A) Gold
B) Toll road
C) Savings account
D) Insurance
Answer: B
Explanation: Toll road is an infrastructure asset.
Q185. (IBPS RRB 2021)
Which of the following best describes InvIT returns?
A) Fixed
B) Guaranteed
C) Market-linked
D) Zero
Answer: C
Explanation: Returns depend on asset performance.
ADVANCED LEVEL
Q186. (SSC CGL 2022)
If dividend is ₹20 and price is ₹200, yield is:
A) 8%
B) 10%
C) 12%
D) 15%
Answer: B
Explanation: (20/200) × 100 = 10%.
Q187. (SBI Clerk 2021)
Which factor reduces InvIT income?
A) Increased usage
B) Efficient operations
C) Decreased demand
D) Higher tariffs
Answer: C
Explanation: Lower demand reduces income.
Q188. (IBPS PO 2023)
Which of the following is a disadvantage of InvIT?
A) Liquidity
B) Regular income
C) Market risk
D) Diversification
Answer: C
Explanation: InvIT carries market risk.
Q189. (SSC CHSL 2021)
Which of the following is true about InvIT trading?
A) Not tradable
B) Tradable on stock exchange
C) Only offline
D) Fixed maturity
Answer: B
Explanation: InvIT units are listed.
Q190. (SSC MTS 2022)
Which of the following increases yield?
A) Higher price
B) Lower dividend
C) Higher dividend
D) Lower demand
Answer: C
Explanation: Yield increases with dividend.
HIGHER DIFFICULTY
Q191. (RBI Grade B 2023)
Which of the following risks is due to interest rate changes?
A) Credit risk
B) Interest rate risk
C) Liquidity risk
D) Market risk
Answer: B
Explanation: Interest rate changes impact returns.
Q192. (SSC GD 2022)
Which investor is most suitable for InvIT?
A) Speculator
B) Day trader
C) Income investor
D) Arbitrage trader
Answer: C
Explanation: InvIT suits income-focused investors.
Q193. (IBPS Clerk 2021)
Which factor improves InvIT attractiveness?
A) Rising rates
B) Stable income
C) High volatility
D) Low demand
Answer: B
Explanation: Stable income attracts investors.
Q194. (SSC CPO 2023)
Which factor determines InvIT price?
A) Government fixed
B) Demand and supply
C) Sponsor decision
D) RBI only
Answer: B
Explanation: Price is market-driven.
Q195. (IBPS RRB 2020)
Which of the following is NOT an InvIT advantage?
A) Regular income
B) Liquidity
C) Guaranteed returns
D) Diversification
Answer: C
Explanation: No guaranteed returns.
CASE-BASED / CALCULATION
Q196. (SSC CGL 2023)
If investment is ₹6,00,000 at 10% yield, annual income is:
A) ₹50,000
B) ₹55,000
C) ₹60,000
D) ₹65,000
Answer: C
Explanation: 10% of ₹6,00,000 = ₹60,000.
Q197. (SBI PO 2022)
If dividend decreases and price remains constant, yield will:
A) Increase
B) Decrease
C) Remain same
D) Double
Answer: B
Explanation: Yield decreases with dividend.
Q198. (IBPS Clerk 2022)
Which factor is key for InvIT long-term returns?
A) Daily trading
B) Asset performance
C) Speculation
D) Rumors
Answer: B
Explanation: Asset cash flow drives returns.
Q199. (SSC CHSL 2021)
Which risk arises due to borrowing?
A) Market risk
B) Credit risk
C) Liquidity risk
D) Inflation risk
Answer: B
Explanation: Borrowing leads to credit risk.
Q200. (SSC MTS 2023)
Which of the following distinguishes InvIT from FD?
A) Fixed return
B) Market-linked return
C) No income
D) No risk
Answer: B
Explanation: InvIT returns are market-linked.
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