Mutual Fund Exposure to REITs and InvITs: ₹19,485 Crore
Why in the news
Mutual fund holdings of REITs and InvITs grew about 27 times in five years yet remain a tiny slice of the industry.
Key facts
- Cap: up to 10% of AUM allowed since 2017.
- Participation: 22 of about 45 AMCs; SBI, ICICI Prudential and HDFC hold 77%.
- Index: Nifty REITs and InvITs Index (2023) returned 8.5% in a year and about 16% annualised over five.
- Slow growth: thin liquidity, a universe of 4 REITs and 18 InvITs, strong equity returns and weak evaluation skills.
SEBI proposals
| Parameter | Now | Proposed |
|---|---|---|
| Cap for equity and hybrid schemes | 10% | 20% |
| Single issuer limit | 5% | 10% |
- Also floated: treat as equity; dedicated schemes. The MF Advisory Committee opposes some.
- Real estate AIFs: ₹73,903 crore, the top sector, 15% of ₹5.06 trillion AIF investment.
Exam angle
- Terms: REIT, InvIT, AUM, AIF.