Most investors understand two things very easily.

One: fixed deposits give stability, but limited upside.
Two: equities give growth, but with volatility.

But there is a third space slowly becoming important in India — assets that generate regular cash flows from real infrastructure.

These are not “story stocks”. These are operating assets. They already exist. They generate revenue. They have contracts. They distribute cash flows.

This is where InvITs come in.

InvIT stands for Infrastructure Investment Trust.

Think of it like a mutual fund-style structure, but instead of investing in stocks or bonds, it owns infrastructure assets.

These assets may include:

The InvIT earns income from these assets and distributes a large portion of cash flow to investors.

In simple language:

You are not building the infrastructure. You are investing in an entity that owns operational infrastructure and shares cash flows with you.

That is why InvITs are gaining popularity among investors who want income plus exposure to India’s infrastructure growth.

India needs massive infrastructure.

Power demand is rising. Renewable energy capacity is expanding. Roads, logistics, data centres, power transmission and storage infrastructure will need large capital over the next decade.

Traditionally, only governments, large institutions and private equity funds could invest in such assets. Retail and HNI investors had limited access.

InvITs changed that.

They allow investors to participate in infrastructure assets in a listed, regulated and more transparent format.

This is why the asset class is becoming important:

Earlier, infrastructure investing was only for institutions. Now, it is slowly becoming accessible to HNIs and informed investors.

The structure is simple once you break it down.

At the top, there is the InvIT Trust. Investors buy units of this trust.

The trust owns stakes in infrastructure assets through special purpose vehicles, or SPVs.

These SPVs own the actual assets — for example, a transmission asset or a solar power project.

The assets generate revenue through long-term contracts. After operating costs, debt servicing and other expenses, the available cash flow moves up to the InvIT.

Then the InvIT distributes income to unit holders.

Broadly, an InvIT investor earns money in two ways:

So, InvITs are not exactly FDs. They are not pure equity either. They sit somewhere between income-generating real assets and listed market instruments.

This asset class has attracted institutional investors over the years.

In India, InvITs have seen participation from:

Globally also, infrastructure is a favourite asset class for long-term investors such as pension funds and sovereign funds. The reason is simple: they need long-duration cash flows.

A pension fund does not want excitement every day. It wants predictability over many years.

That is exactly what mature infrastructure assets can provide.

InvITs are not risk-free.

They are safer than many operating businesses because the underlying assets are mature and revenue-generating. But they are still market-linked instruments.

Safety depends on five things:

A good InvIT is not safe because it has a fancy name. It is safer when assets are operational, contracts are strong, leverage is controlled, and cash flows are visible.

That is the right way to look at it.

Most Indian portfolios are very basic.

FD.
Mutual fund.
Equity.
Gold.
Real estate.

But infrastructure assets are different.

They can provide regular cash flow and are linked to long-term economic activity. Power transmission, renewable generation, roads and pipelines are not dependent on daily consumer mood.

This is why InvITs can help diversify portfolios.

They provide exposure to real assets without buying physical real estate. And unlike direct real estate, you are not dealing with tenants, repairs, brokers, stamp duty, society issues or “sir cheque kal milega” situations.

InvITs also expand the idea of real assets.

It is not only property.

It can be:

For investors who want income and diversification, this can become a useful satellite allocation.

Not the full portfolio.
Not blind allocation.
But definitely worth understanding.

Anzen India Energy Yield Plus Trust is a listed energy InvIT. It is focused on energy infrastructure assets — mainly transmission and renewable energy.

Sponsor: SEPL Energy Private Limited (part of the Edelweiss Alternates Group)

Asset Portfolio: Includes inter-state power transmission networks across Karnataka, Punjab, Haryana, Bihar, and large-scale solar projects (such as in Rajasthan).

Distributions: As an InvIT, it is mandated to distribute at least 90% of its net cash flow to unitholders quarterly.

Ticker: Traded on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under the symbol ANZEN.

In Anzen’s case, list of prominent investors include L&T, Azim Premji Trust, IISc, Nippon, BNP Mutual Fund, Bank of Baroda Mutual Fund, Magma Insurance and Adecco PF.

As per the company-provided update, Anzen completed acquisition of 12 operational solar SPVs during FY26 with total capacity of around 816 MWp. These assets are spread across states such as Rajasthan, Andhra Pradesh, Telangana, Uttar Pradesh and Punjab. After the acquisition, the portfolio expanded to around 15 operational energy infrastructure assets across transmission and solar assets.

AUM has increased meaningfully to around ₹6,552 crore post recent acquisitions, nearly tripling since listing. The platform also raised around ₹696 crore through a preferential issue, which was used toward acquisition of renewable assets.

This is important because scale matters in InvITs.

A small InvIT with few assets has concentration risk. A larger InvIT with multiple assets, diversified geographies and different asset types can potentially offer better stability.

In Anzen’s case, the direction is clear:

Anzen has maintained a visible distribution track record.

The distribution history shows quarterly distributions of around ₹2.45 per unit for several quarters through FY24 and FY25. In Q1FY26 and Q2FY26, distribution moved to ₹2.75 per unit. The company update also mentions Q4FY26 distribution declared at ₹2.75 per unit.

For income-oriented investors, this matters because InvITs are judged heavily on distribution visibility.

India is building infrastructure at scale. Renewable energy, transmission, storage and grid infrastructure will need long-term capital. InvITs provide a structure where investors can participate in these assets and receive cash flows from operating infrastructure.

Anzen’s recent acquisitions have changed its profile meaningfully. From a smaller transmission-focused platform, it is becoming a more diversified energy InvIT with solar and transmission exposure, higher AUM, quarterly distributions and a visible acquisition strategy.

If you think this is interesting and you would like to learn more about this, feel free to revert back.

We will schedule a group call to learn more about this in next week. Reply to this email to participate in the call.

Happy learning!

Warm regards

Tejas

LP Fincare Services LLP