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Owning a piece of the stock market, or even a skyscraper, no longer requires crores.
In 2025, fractional investing has become the bridge between ambition and accessibility, letting everyday investors buy partial shares of assets that were once limited to institutions and high-net-worth individuals.
But what exactly is a fractional share, how does it work, and who actually owns it? Let’s break it down.
A fractional share represents a portion of a single unit of ownership in a company or asset:.
In simple terms, if a full share costs ₹1,000 and you buy 25% of it, you own 25% of that share: and receive 25% of its returns.
This concept has moved beyond equities. Fractional real estate ownership now allows investors to co-own premium commercial properties and earn rent and appreciation proportional to their investment.
Suppose you own 9 shares of ABC Ltd., and the company announces a 3-for-2 stock split. After the split, you’ll have 13.5 shares, which the broker might round to 14 whole shares.
Your total ownership percentage in the company remains exactly the same.
Now imagine a Mumbai commercial property valued at ₹50 crore divided into 10,000 digital units (tokens). Each token represents 0.01% ownership in the property.
If you buy 50 tokens, you effectively own 0.5% of that property: and earn that share of rental income and appreciation over time.
That’s how platforms like PropFTX are transforming real estate into investable, tradeable digital assets.
At its core, fractional investing pools capital from multiple investors to buy one large asset.
Each investor then owns a fraction of that total value and earns returns proportionally.
Both models share one principle: shared ownership, shared rewards.
Fractional shares can arise in multiple ways:
In India, SEBI has introduced a new framework under Small and Medium REITs (SM REITs) to bring fractional real estate ownership under regulation.
At the same time, GIFT City’s regulatory sandbox is piloting tokenised property units for NRI and institutional investors, signaling a broader move toward compliant, technology-backed fractional investing.
Yes, but how depends on the asset type.
In the stock market, fractional shares cannot be traded directly on exchanges.
Instead, brokers or custodians aggregate them and sell to other buyers. You receive the cash equivalent credited to your account.
In real estate, fractional ownership units or tokens can be traded on secondary marketplaces hosted by regulated platforms like PropFTX.
That means you can exit your investment early, potentially even before the underlying property is sold, a key differentiator from traditional property investing.
Ownership rights differ between markets. In stocks, the brokerage or depository holds full shares on your behalf, while you own the fractional entitlement and its associated returns.
In fractional real estate, your name (or entity name) is recorded in the SPV’s investor registry, making you a legal co-owner of the underlying asset.
In India, SEBI’s evolving guidelines ensure that these rights: rent distribution, capital gains, and resale, are legally protected under regulated structures
Wondering if Fractional real estate is a good investment for you in 2025? Read our full breakdown here.
Fractional shares follow the same taxation principles as their parent assets.
NRIs investing via GIFT City platforms also face TDS deductions and FEMA compliance, which platforms like PropFTX simplify through escrow and RBI-approved channels.
India’s regulatory and technological ecosystems are converging fast.
With Maharashtra’s ₹50 trillion asset tokenisation plan, RBI’s pilot on deposit tokenisation, and GIFT City’s fractional real estate experiments, a new investment era is emerging.
The future won’t just be about buying property: it’ll be about owning verified, divisible, and liquid assets across India’s fastest-growing markets.
At PropFTX, we’re building toward that future - one tokenised property at a time - giving investors the choice between active control and passive income, without the traditional barriers of real estate investing.
Want to explore fractional ownership in verified, income-generating Indian properties?
Visit PropFTX.com and discover how you can start with as little as ₹50,000.
Fractional shares are democratizing investing, breaking down assets into affordable units while keeping ownership, compliance, and returns intact. Whether it’s stocks or skyscrapers, fractional ownership is making India’s favourite asset class accessible to all.
A fractional share represents less than one full unit of ownership in a company or property. Investors earn proportional returns from it.
Yes. While stock-based fractional shares are sold via brokers, real estate fractional units can be resold on regulated marketplaces like PropFTX.
For stocks, it’s managed through your broker’s custodian account. For real estate, your ownership is recorded in an SPV or REIT structure.
Yes, provided you invest via SEBI-regulated or GIFT City-compliant platforms. Always check for legal disclosures and property due diligence.
Depending on the asset type, investors can expect 7–10% IRR combining rental yield and appreciation, with lower entry points than full ownership.
