SEBI has recently amended MF regulations whereby REITs investments by MF schemes are re-classified as ‘equity’ category instead of the earlier ‘hybrid’ category. The reclassification is done considering the nature of REITs more inclined towards equity and is in line with global practices.
Before this change, MF schemes had to adhere to the 10% investment limit applicable for hybrid category while taking any REITs exposure in the portfolio.
Pursuant to the change, REITs are now considered as equity investments and therefore would have potential to attract greater fund flow as well as be included in major equity indices.
Coming to your question of specific REIT based MF schemes, I would say currently we have only a few (5 to be specific) REITs which are listed on the stock exchange.
To have schemes only with REITs as underlying, it would be preferable to have more REITs listed on the exchange as that would increase the pool available to the FM to make the selection and would reduce concentration risk in the portfolio.
Having said that this step is in the right direction where REITs would become more liquid, would have better price discovery and therefore would attract more REITs listing.
Not very conversant with the taxation bit for an individual. For the MF, it being a tax-exempt entity nothing changes and for investors they would to continue in MF units which are classified as equity.
First of all congratulations on reaching an AUM of almost a Billion Dollars.
Presently your product offerings more or less covers everything an investor needs. Is there further room for innovation in this space (more so in passive)? More specifically is there something in the pipeline that no one else is offering?
It’s better if the last updated date is present everywhere where the iNAV is posted.
Is it possible to get a iNAV graph over time? For example, with LTGILTCASE, it’s impossible to tell what’s going on by just looking at the ETF Market candle prices.
@VishalJain there is lot of Deviation in case of newly launched etfs like Niftycase, silver case etc wrt inav. When can we expect some sort of convergence to inav? Today I thought of placing order for niftycase but it’s deviated as much as 0.25%
Its possible for us to display time for the iNAVs on our assets and do not have a control on other platforms such as exchanges, etc, but will take your feedback.
As for an iNAV graph, for LTGILTCASE, it is updated 4 times a day and its just an indicative number. Not sure how it will help in use for technicals.
Hey Anubhav, while differentiation is not always possible especially for a set of certain exposures, we think there’s a long way to go in streamlining the investing experience which is where a lot of our effort is focussed on. In terms of products, you will hopefully see some unique propositions on the debt side in the coming months. Rgds
The market prices are highly unreliable because the actual daily percent gain(as per iNAV) is very low compared to volatility of the ETFs. The body of the candle is very big making it harder to know the actual movement.