Mutual funds stay cautious on Reits despite Sebi’s equity reclassification

Last Update Date: 05-10-2026

Published by Mint

Abhishek Kumar's role: Quoted

Abhishek Kumar said fund houses may be holding back because the small Reit market exposes them to liquidity risk, and cautioned that the limited choice and low assets under management can bring concentration and liquidity risk for investors.

Mint reports that mutual funds remain cautious about Reits even after Sebi reclassified them as equity from January 2026. Fund houses cite thin liquidity, few listed Reits and limited price upside, while hybrid funds must now fit Reits within their equity limits. Some argue index inclusion and more supply could help over time.

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Mutual funds stay cautious on Reits despite Sebi’s equity reclassification

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