Mutual funds warm up to Reits and InvITs, but exposure remains low

Total investments surge 27x in 5 years to nearly Rs 20,000 crore; still only 0.3% of the MF AUM

Even as mutual funds (MFs) increasingly invest in real estate investment trusts (Reits) and infrastructure investment trusts (InvITs), their total exposure has remained below 0.4 per cent of the industry’s assets under management (AUM).

 

Although MFs have been permitted to allocate up to 10 per cent of their AUM to these assets since early 2017, significant investment growth has been seen only recently.

 

From ₹734 crore in March 2020, investments have risen to nearly ₹20,000 crore in March 2025, according to Prime Database. Still, this accounts for just 0.3 per cent of the MF industry’s ₹65.7 trillion AUM.

 

Experts note