Mutual funds can now invest more in REITs—what should small investors do?
Last Update Date: 06-10-2026
Published by Mint
Abhishek Kumar's role: Quoted
Abhishek Kumar said the change does not alter the core trade-off: direct REITs offer largely tax-free distributions, while funds suit those wanting diversification and SIPs. He also pointed out that India's REIT market is small and thinly traded.
More of Abhishek's views on mutual funds
After SEBI reclassified REITs as equity instruments, letting mutual funds raise their REIT holdings, the article asks whether small investors should buy REITs directly or through funds. It compares tax treatment, flexibility, diversification, liquidity and concentration risk, and expects only a modest change in fund allocations.
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Mutual funds can now invest more in REITs—what should small investors do?