SM REITs reshape the landscape by investing in both commercial and residential properties, offering more flexibility than traditional REITs, which usually stick to commercial real estate. The properties in SM REITs are typically smaller and less expensive, allowing for more focused investments. While traditional REITs might own massive office buildings or shopping malls, SM REITs might zero in on smaller residential projects or commercial spaces perfect for small and medium-sized enterprises (SMEs). One key difference is that SM REITs are geared towards investors with a higher risk appetite. SEBI has set the minimum investment for SM REITs at Rs 10 lakh, compared to the Rs 10,000 to Rs 15,000 needed for traditional REITs. This higher entry point reflects the greater risk—and potentially greater reward—of these investments.