Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»MF investments in Invits, Reits may continue to be low – Mutual Funds News
    Investments

    MF investments in Invits, Reits may continue to be low – Mutual Funds News

    April 21, 20252 Mins Read


    Mutual fund managers are unlikely to aggressively invest in Real Estate Investment Trust (Reits) and Infrastructure Investment Trust (InvITs), despite the market regulator – the Securities and Exchange Board of India’s — proposal to double the existing limit to 20%.  

    The reason: Muted returns by these instruments. For example, in the past six months, the Nifty REITS and InvITs index have fallen by around 5%. The value of some of them have fallen up to 12%, with Powergrid InvIT, IRB InvIT Fund, and Nexus Select Trust falling the most. Only Mindspace Business Parks REIT and National Highways Infra have risen by around 2%. Even over a one year period, Nifty REITS and InvITs index has risen 3.95% against 8.44% rise in the benchmark 50-stock index. 

    Deepak Shenoy, founder of Capitalmind said that the proposed limit increase will not have an immediate impact on investment decisions as they have not given great returns. However, the proposal provides flexibility to invest in them in future when the risk-reward becomes favourable. He also expressed his worry about these instruments being riskier than debt due to an added regulatory risk. 

    However, Ajay Tyagi, head of equities at UTI Asset Management believes that the proposal to increase the investment limit for these instruments in equity and hybrid schemes to 20% from 10% earlier will provide flexibility, adding that it will help in better risk management of the portfolio.. 

    Anthony Heredia, CEO of Mahindra Manulife Mutual Fund added that this option will help diversify into an asset that is likely to become relevant over time.

    According to SEBI, this will provide more investment avenues and further diversification to schemes of Mutual Funds. “The proposal is also expected to increase the capital inflow into these instruments, broadening their market base and liquidity,” the consultation paper said.

    In addition to the limit increase, SEBI has also asked for public comments on if there is a merit in classifying such securities as “equity” and their consequent inclusion in equity indices for the purpose of investment by Mutual Funds as REITs and InvITs combine the features of both equity and debt instruments. 

    It was also deliberated by the advisory committee whether the inclusion of these  instruments as  constituents  of  equity  indices would  be  appropriate  and  fair  to  investors  in  schemes  following  such  indices  as benchmark.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Are You Overpaying Debt At The Expense Of Retirement?

    Investments

    Lock a job by 46 or risk forced retirement: HR insider reveals brutal hiring reality

    Investments

    What Are Bonds? A Beginner’s Guide (2025)

    Investments

    Harrison Ford Shared Major Career Update Regarding Retirement

    Investments

    Fidelity Investments® Releases 2025 Retiree Health Care Cost Estimate, a Timely Reminder for All Generations to Begin Planning

    Investments

    Dana White has made some huge investments since $4 billion UFC sale including Power Slap and an energy drink

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    Great Southern Copper mise sur Especularita et d’autres actualités des sociétés cotées à Londres

    Fintech

    Fintechs ramp up lobbying over earned wage access, crypto

    Investments

    Le premier parc éolien flottant de France entièrement en service

    Editors Picks

    La CNMV autorise l’offre publique d’achat visant à retirer BAIN de la cote, soumise par Borges International

    April 29, 2025

    Ce groupe de métal de Loire-Atlantique tourne un clip avec un clown dans le bus et dans un supermarché !

    March 23, 2025

    Trump’s Crypto Reversal: Ex-President Reportedly Holds More Than $1M In Digital Assets

    August 17, 2024

    NMECON Cryptocurrency Exchange Enters the U.S. Market with Cutting-Edge AI 5.0 Trading Platform

    June 18, 2025
    What's Hot

    Gold Cup : les États-Unis dominent la Trinité-et-Tobago 5-0 à leur premier match

    June 15, 2025

    Poly Property Group Co., Limited annonce des changements au sein de son conseil d’administration et de ses comités -Le 21 février 2025 à 09:38

    February 20, 2025

    Inland Real Estate Income Trust, Inc. annonce ses résultats pour l’exercice clos le 31 décembre 2024 -Le 05 mars 2025 à 22:13

    March 5, 2025
    Our Picks

    Gold hits all-time high: Precious metal tops $2,500 an ounce for first time

    August 16, 2024

    Bonds Award 2025: la Côte d’Ivoire sacrée “Émetteur le plus impressionnant d’Afrique” en 2025

    June 18, 2025

    3 Underperformed Coins To Hoard For 2x Gains

    July 12, 2024
    Weekly Top

    Cenovus Energy cuts 2025 production forecast

    July 31, 2025

    Summer McIntosh wins third World Aquatics Championships gold but falls just short of 200m butterfly world record

    July 31, 2025

    Global steel output down 2.2% in the first half of 2025

    July 31, 2025
    Editor's Pick

    Globalworth Real Estate Investments : un optimisme prudent pour l’année à venir -Le 11 mars 2025 à 08:40

    March 10, 2025

    Digital euro too much control for EU? « Euro Weekly News

    February 13, 2025

    Cryptocurrency exchange Kraken to buy NinjaTrader for $1.5bln

    March 20, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.