Mutual funds infused Rs 670 crore in REITs in 2019
Emerging investment instruments REITs and InvITs seem to be finally catching investors’ fancy, with mutual funds investing a whopping Rs 12,000 crore in such units in 2019.
Fund managers infused Rs 670 crore in real estate investment trusts (REITs) and Rs 11,347 crore in infrastructure investment trusts (InvITs) last year, according to the Securities and Exchange Board of India (Sebi).
Mutual funds have increased their exposure in these investment avenues over the past one year. Investment by fund houses in REITs jumped to Rs 72.5 crore in December 2019 from a mere Rs 7 crore in January 2019, while the same in InvITs rose to Rs 948 crore from Rs 611 crore during the period under review.
Market experts believe that REITs could be a potential investment option giving good returns as interest of investors in the residential segment is declining due to inability to monetise assets and limited appreciation in property prices.
They further said that investment in InvITs may pick up in the coming months following Reserve Bank of India’s decision to allow banks to lend to InvITs.
Sebi Chairman Ajay Tyagi, who had met scores of foreign investors in the US in October, said he saw keen interest from them in emerging areas such as REITs and InvITs.