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MFs have been allowed to invest 10% of their AUM in REITs and InvITs. Will this affect fund performance?

"It will have an affect on your fund performance to some degree," says Dhirendra Kumar

Transcript: These are relatively new investment avenues allowed by SEBI. It isn't necessary for fund houses to invest the 10% of the AUM in these options. Your fund manager will take a call depending on the prospects that he sees. We are still concerned about the liquidity of these avenues as there are not many options at present. It will have an affect on your fund performance to some degree. It might generate great returns or it might just be a disappointment, and that is not easy to predict now.

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