Stock Market Investment: Earn Money Every Time a Vehicle Hits the Road

Many investors believe the stock market is the only way to build wealth. But what if you could earn money every time a car passes on a highway? Sounds interesting, right?

This is not a fantasy. It’s possible through a smart investment option backed by government infrastructure projects — InvITs.

Let’s understand how this investment works, its benefits, risks, and who should consider investing.

What Are InvITs?

InvITs (Infrastructure Investment Trusts) are investment instruments regulated by SEBI that allow investors to earn income from large-scale infrastructure assets.

They function similarly to mutual funds, but instead of investing in stocks or bonds, InvITs invest in revenue-generating infrastructure projects such as:

National highways and toll roads

Power transmission lines

Renewable energy projects

Gas pipelines

The income earned from these projects is distributed to investors regularly.

 

How Do InvITs Generate Income?

When vehicles use toll roads or when electricity flows through transmission lines, these assets generate cash flow. InvITs collect this revenue and, as per SEBI rules, distribute at least 90% of net cash income to investors.

This makes InvITs attractive for those looking for stable and predictable income.

Types of InvITs in India

1. Operational (Revenue-Generating) InvITs

Invest in completed and functional projects

Generate immediate income

Usually launched through public offerings

Lower risk compared to under-construction projects

2. Under-Construction InvITs

Invest in projects still being developed

Units are mostly offered via private placement

Higher risk but potential for higher returns

InvIT Structure in India

An InvIT is established as a trust and must be registered with SEBI. It includes four major entities:

• Sponsor – The company that sets up the InvIT

• Trustee – Safeguards investor interests

• Investment Manager – Manages assets and operations

• Project Assets – Roads, power lines, pipelines, etc.

This structured approach ensures transparency and professional management.

 

Advantages of Investing in InvITs

Exposure to multiple infrastructure projects in one investment

• Regular and stable income

• Listed on stock exchanges — easy to buy and sell

• Managed by experienced professionals

• Mandatory high cash distribution (90%)

• Backed by essential, long-term infrastructure assets

• Risks & Disadvantages of InvITs

• Policy or regulatory changes can impact returns

• Rising inflation may increase operating costs

• Project delays can affect revenue

• Not entirely risk-free like fixed deposits

Who Should Invest in InvITs?

InvITs are ideal for investors who:

Seek long-term, steady income

Want exposure to government-backed infrastructure projects

Can tolerate moderate risk

Are high-net-worth individuals or institutions

Minimum investment is usually around ₹10 lakh, making it more suitable for HNIs.

Before investing, always evaluate your financial goals, risk appetite, and investment horizon.

Frequently Asked Questions (FAQ)

Are InvITs safe investments?

InvITs are regulated by SEBI and invest in essential infrastructure, but they still carry market and policy-related risks.

Do InvITs give regular income?

Yes. Most InvITs distribute income quarterly or semi-annually.

Can retail investors invest in InvITs?

Yes, through stock exchanges or IPOs, but minimum investment limits apply.

Are InvIT returns guaranteed?

No investment is guaranteed. Returns depend on project performance and economic conditions.

How are InvITs different from mutual funds?

Mutual funds invest in financial assets, while InvITs invest in physical infrastructure assets.

Conclusion

InvITs offer a unique opportunity to earn passive income from real-world infrastructure like highways and power projects. If you are looking beyond traditional stocks and want exposure to stable, long-term assets, InvITs can be a smart addition to your portfolio.

However, like all investments, they come with risks. Proper research and financial planning are essential before investing.

In simple terms, every time a vehicle drives on a highway, your investment could be working for you.