InvestorQ : Is it true that mutual funds are getting interested in REITs investing?
Priyanka N made post

Is it true that mutual funds are getting interested in REITs investing?

Answer
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Neelam Naik answered.
4 weeks ago


The Indian REITs space is still too small to make a significant contribution since we only have two REITs listed in India. But the reality is that Indian mutual funds are definitely getting interested in this space as is evident from the rising MF investments in REITs.

It does look like Indian mutual funds started seeing the merits of investing in REITs in the last few months. Between January 2020 and June 2020, the MF investments in REITs jumped 3-fold to Rs.735 crore. That is also a 10-fold jump on a YOY basis.

Currently there are only two listed REITs in the Indian market i.e. Embassy REITS and Mindspace REITs. While Embassy was listed in the bourses in July last year, the Mindspace REITs only listed a month back and both have performed well post listing.

The reasons are not far to seek as traditional avenues of investments are drying up. With interest rates falling consistently and debt becoming out of favour, the demand for REITs among institutional investors is gradually picking up and that could be good news.