Data compiled by PRIME Mutual Funds Database shows MF exposure to REITs and InvITs having surged many times over in the aftermath of the Covid-19 pandemic taking hold.
MF exposure to listed REITs and InvITs is set to rise to seven (from the present-day six), with the Rs 3,200-crore Nexus Select Trust REIT initial public offering scheduled to open this week for subscription.
ICICI Prudential MF and HDFC MF had the highest exposure at the end of March 2023, with investments worth Rs 2,002 crore and Rs 1,459 crore, respectively.
According to analysts, the surge in MF investments coincides with improving financial metrics of commercial real estate and the government’s thrust on infrastructure.
MF regulations allow schemes (including equity, debt, and hybrid funds) to invest up to 10 per cent of their portfolios in REITs and InvITs.
Recently, NSE Indices launched India’s first REITs & InvITs Index, widening the scope of MFs to come out with passive REIT and InvIT funds. However, the index now faces concentration risks due to the presence of just six listed REITs and InvITs.
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