The correct answer is Trusts.

Infrastructure Investment Trust (InvITs)

• An Infrastructure Investment Trust (InvITs) is a Collective Investment Scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as a return. 
• The InvIT is designed as a tiered structure with the Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs).
• The InvITs are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014. 

​Structure of InvITs

• Structured like mutual funds, they have a trustee, sponsor(s), investment manager and project manager.
  • Trustee (certified by Sebi) has the responsibility of inspecting the performance of an InvIT.
  • Sponsor(s) are promoters of the company that set up the InvIT.
  • The investment manager is entrusted with the task of supervising the assets and investments of the InvIT.
  • The project manager is responsible for the execution of the project.

Features and Benefits

• InvITs enable investors to buy a small portion of the units being sold by the fund depending upon their risk appetite. 
• Given that such trusts comprise largely of completed and operational projects with positive cash flow, the risks are somewhat contained.
• Unitholders also benefit from favourable tax norms, including exemption on dividend income and no capital gains tax if units are held for more than three years.