Street signs: Savvy investors use InvITs to exit mutual funds without cost

Several mutual fund houses had to obtain one-time shareholder consent to invest in InvITs

Several mutual fund (MF) houses had to obtain one-time shareholder consent to invest in Infrastructure Investment Trusts (InvITs). The approval had to be taken at the scheme level. According to  the Securities Exchange Board of India’s (Sebi’s) guidelines, fund houses had to waive off exit load on unit holders who didn’t wish to continue with the scheme. According to market players, several savvy investors used this as an opportunity to exit, saving around 100 basis points in cost.

Chandan Kishore Kant   

Hudco grey market premium at 30% 

Shares of state-owned Housing and Urban Development Corporation