REITs & InvITs AUM to ₹20 Lakh Cr: Portfolio Impact

THE PIP (TL;DR)

India’s real asset investment trusts are on a growth path, offering a stable income avenue for your portfolio. The Assets Under Management (AUM) for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) is projected to double from ₹10 lakh crore to ₹20 lakh crore by 2030, according to Avendus Capital. This expansion is driven by regulatory enhancements from SEBI, including classifying REITs as equity and broadening mutual fund investment access. For you, this surge means more diversified options to invest in tangible assets like commercial property and infrastructure, potentially boosting your long-term returns through distributions and capital gains.

India’s Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) market, currently managing ₹10 lakh crore across 32 listed trusts, is on a trajectory to reach ₹20 lakh crore in Assets Under Management (AUM) by 2030. This significant growth, as projected by Avendus Capital, signifies a robust expansion in options for investors looking to tap into real assets. The Nifty REITs & InvITs Index has already shown strong performance, delivering 19.24% in total returns over the last year and a 12.79% CAGR over five years.

The impetus behind this growth stems from crucial regulatory changes and increasing institutional interest. The Reserve Bank of India’s (RBI) repo rate cut in 2025 initially boosted yields, making these instruments more attractive. Further, SEBI’s (Securities and Exchange Board of India) move in January 2026 to classify REITs as equity instruments, alongside expanding mutual fund access to InvITs in February 2026, has significantly opened the floodgates for mutual fund inflows.

For your personal finances, this means a growing opportunity to diversify beyond traditional stocks and bonds into income-generating real assets like commercial offices, shopping malls, roads, and power projects. REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are structured to invest at least 80% of funds in operating, revenue-generating assets, ensuring a steady stream of income. They are also mandated to distribute 90% of their Net Distributable Cash Flows (NDCF) to investors, typically on a quarterly basis, providing a regular payout that could complement your existing Systematic Investment Plans (SIPs) or dividend income.

The inclusion of REITs in equity indices from July 1, 2026, is expected to further attract capital via Exchange Traded Funds (ETFs) and index funds, increasing liquidity and visibility. This regulatory support, combined with the inherent advantage of financializing real assets, positions REITs and InvITs as a compelling, long-term component of a diversified portfolio, allowing you to participate in India’s infrastructure and real estate growth story directly.

ONE THING TO CONSIDER TODAY

Today might be a good time to review your portfolio’s diversification and consider how exposure to real assets through REITs or InvITs could align with your long-term income goals.