Corona period: Mutual fund’s three times investment in real estate in first half

Investment of mutual funds in the real estate investment trust (REIT), the emerging medium of investment, tripled to Rs 735 crore in the first half of this year.

However, investment of mutual funds in the Infrastructure Investment Trust (INVIT) fell by eight per cent during this period. 4,968 crore came to Rs. This has been reported in the data of market regulator Securities and Exchange Board of India (SEBI).

In the Indian context, Reit and Invit are very new means of investment, but they are quite popular abroad. Reit is a portfolio of real estate properties, with most of them already leased. Inwit consists of assets like highways, power transmission etc. Combining the two tools, mutual funds have increased their investment compared to a year ago.

735 crores in six months

The investment of fund houses in REIT has increased from a mere Rs seven crore in January 2019 to Rs 71 crore in January this year and Rs 402 crore in June 2020. The fund managers invested Rs 735 crore in Reit in the first six months of this year, compared to Rs 249 crore in the year-ago period.

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