Most Indians think only big companies and the government make money from toll plazas. Truth: ordinary investors can also earn a share of that toll revenue — legally.
The tool is called InvIT (Infrastructure Investment Trust).
If you can invest even ₹1,000–₹10,000, you can become an indirect highway owner and earn from vehicles passing daily.
Table of Contents
What Exactly is InvIT?
Plain definition — no jargon:
You invest in a trust → The trust owns highways → Highways collect toll → Toll income is shared with you.
Think real estate investment trust (REIT) but for roads, bridges, power lines.
✅ Regulated by SEBI
✅ Listed on Stock Market
✅ Monthly/Quarterly payout like rental income
Why Toll Revenue > Stock Market Trading for Passive Income?
Traffic increases every year. Trucks, buses, cars → constant cash flow.
Hard facts:
- Indian highways traffic growth: 7–9% YoY
- Logistics boom due to e-commerce
- 26 new expressways under Bharatmala project
When economy grows → toll income grows → investor payout grows.
How Much Can You Actually Earn?
Example: If you invest ₹50,000 in a decent InvIT…
| Metric | Average Value (2024-25) |
|---|---|
| Annual Return (Distribution Yield) | 8% – 12% |
| Inflation Protection | Good |
| Risk Level | Lower than stocks |
| Liquidity | Listed — sell anytime |
Expected yearly earnings:
₹50,000 × 10% ≈ ₹5,000 passive income / year
Not life-changing. But stable & growing.
Best InvITs in India (2025)
We ONLY list existing, SEBI-regulated, and payout-proven ones.
| Name | Sector | Distribution Yield | Highlight |
|---|---|---|---|
| IRB InvIT | Highways & Toll | 12–13% | Oldest, strong toll assets |
| PowerGrid InvIT | Transmission Lines | 9–10% | Govt-backed stability |
| NHAI InvIT | National Highways | 7–8% | Strong traffic assurance |
👉 Reference: SEBI Filings, FY2024-25 investor reports
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Step-by-Step: How to Invest in Toll Income
No fancy work. Just:
1️⃣ Open any Demat account (Zerodha, Groww, Upstox etc.)
2️⃣ Search: IRB InvIT / NHAI InvIT
3️⃣ Buy units like normal shares
4️⃣ Hold — and receive distributions in bank
⏱ Payout frequency: Quarterly / Monthly (varies by InvIT)
Real Example: More Traffic = More Money for You
FASTag collections have jumped like crazy:
- 2019: ₹2,200 crore
- 2024: ₹7,728 crore 🆙
Source: NHAI + MoRTH Data
Every tap on toll = income machine running.
Risk — Don’t be Blind
Brutal truth:
Returns are NOT guaranteed.
Risks that matter:
| Risk | Why it matters |
|---|---|
| Traffic slowdown | Economy drop = fewer vehicles |
| Government policy changes | Toll rules can shift |
| High debt projects | Lower payouts |
| Market volatility | Unit price can fall |
✅ Lower risk than small-cap stocks
❌ Not risk-free like FD
Tax Rules (Simple)
- Payout split: Interest + Dividend + Capital Repayment
- Tax varies by component (not fully tax-free)
This isn’t illegal jugaad. It’s regulation-backed investment.
Who Should Avoid InvITs?
If you want:
❌ Quick profit
❌ Speculation
❌ Crypto-like thrill
→ Stay away.
This is a long-term cashflow investment (3–7 years).
So… Should You Invest?
YES, if:
- You want stable passive income
- You believe India’s highway growth continues
- You invest for 3+ years horizon
NO, if:
- You panic when markets dip
Small start + SIP = smart approach.
Final Verdict (Brutally Straight)
Toll income is one of the safest passive income sources average Indians can access — if they use InvITs wisely.
Stop thinking —
“Sirf Govt paisa banati hai”
If highways run ⇒ You earn.
If country grows ⇒ You grow.
Disclaimer : This is not investment advice. Do your own research or consult a SEBI-registered advisor.
FAQ InvIT Investment 2025
How to purchase InvIT bonds online?
You can buy InvIT bonds online through:
Brokerage platforms like Zerodha, Groww, Upstox
Demat-linked banks like ICICI Direct, HDFC Securities
NSE/BSE bond platforms during public issues
Requirements:
✅ Demat Account
✅ PAN & KYC
✅ Net Banking / UPI enabled
Pro-tip: Always verify coupon rate, lock-in, and credit rating before investing.
How to invest in InvIT in India?
There are 3 ways:
Stock Exchanges – Buy listed InvIT units like stocks
NFO / IPO – Apply during new issue
Mutual Funds FoF – Indirect exposure to InvITs
Minimum investment can be as low as ₹500 – ₹1,000 in listed InvITs.
What are the best InvITs to invest in India?
Market leaders (as of 2025):
NHAI InvIT – Toll revenue based
IRB InvIT – Road assets + strong distribution
PowerGrid InvIT – Transmission revenue (Gov-backed)
Krsnaa / Brookfield – Select logistics & infra players
Choose based on yield stability, sponsor strength, and asset quality — not only high returns.
How to invest in NHAI InvIT bonds?
You can invest via:
Zerodha / Groww / AngelOne (Demat required)
BSE India Direct platform
Bank broker accounts
Steps:
Search: NHAI InvIT
Check yield, credit rating, maturity
Place buy order
Complete payment via UPI/Net Banking
Are NHAI InvIT bonds government-backed?
Partially ✅
NHAI is a government authority, but the InvIT is a separate trust regulated by SEBI — NOT a guaranteed return by Govt.
Don’t treat it as “Risk-Free” — risk is lower but still present.
What returns can I expect from InvIT investments?
Typical distribution yield:
📌 7% – 10% annually
Combination of:
Interest
Dividend
Principal repayment
Past yield is not a future guarantee. Always check updated performance.
Is InvIT better than FD?
InvITs are generally considered safer than traditional equity investments because they are backed by real, income-generating infrastructure projects like highways, power grids, and pipelines. The cash flow is predictable, and distribution rules ensure that at least 90% of the income is paid back to investors. However, they are not risk-free — returns depend on project performance, regulatory decisions, and interest rate changes. So yes, InvITs offer stability, but don’t be stupid and assume “guaranteed returns.” They’re safer than stocks, but riskier than government bonds.
Can beginners invest in InvITs?
Yes ✅
Minimum investment is low + predictable cashflow.
But beginners must know:
Price fluctuates on exchanges
Yield may change over time
Corporate governance matters
What is the tax on InvIT distributions?
The minimum amount required to invest in InvITs depends on whether you buy units on the stock exchange or subscribe to a public issue. On the exchange, you usually need to buy one lot, costing anywhere between ₹10,000 to ₹15,000+ depending on the InvIT price. In a fresh IPO or public issue, the minimum can go up to ₹1 lakh or more. So yes, the entry ticket is low enough for small investors in the secondary market, but primary offerings still require bigger capital.
Are InvITs safe for long-term investors?
Safer than regular equities
Riskier than Govt securities
Invest if you like:
✅ Monthly/Quarterly cashflow
✅ Infrastructure-linked growth
✅ Lower volatility than stocks
Avoid if:
❌ You panic when price drops
❌ You need capital in short term
