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United News of India
5 days ago
- Business
- United News of India
Growing confidence in yield-generating assets turn InvITs & REITs into a big draw
Mumbai, July 8 (UNI) Rising investor interest amid growing confidence in yield-generating assets is leading to a good growth in volumes of REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trust) publicly traded in the last two years, a study said. The total volumes of public InvITs traded increased by 128.23 per cent in the last two years while that of public REITs surged by a whopping 399.54 per cent since FY2023, ICRA Analytics said. The Real Estate Investment Trusts and Infrastructure Investment Trusts are investment vehicles that allow investors, both individual and institutional, to participate in the real estate and infrastructure sectors, respectively, without directly owning properties or infrastructure assets. In terms of traded value, public InvITs grew by 115.53 per cent in the last two years while public REITs increased by 177.78 per cent since FY2023. The volumes of public InvITs traded, which stood at 2735 lakh units in FY23, has increased to 6242 lakh units in FY25. On a year-on-year basis, volumes traded increased by 20.52 per cent from 5179 lakh units in FY24. The volumes of public REITs traded increased from a mere 3273 lakh units in FY23 to 16,350 lakh units in FY25. On a year-on-year basis, it grew by 230.10 per cent from 4953 lakh units in FY24. The public InvITs' traded value stood at Rs 6121 crore in FY25 as against Rs 2840 crore in FY23; while REITs was at Rs 31,206 crore in FY25 as compared with Rs 11,234 crore in FY23. On a year-on-year basis, InvITs' traded value grew by 14.41 per cent from Rs 5350 crore in FY24 while that of REITs increased by 157.47 per cent from Rs 12,120 crore in FY24. The total number of unitholders in both these instruments put together increased by 8.23 per cent at 67.23 crore in FY25, as against 62.12 crore in FY24. There are currently five InvITs and four REITs which are publicly traded. UNI PC PRS
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Business Standard
5 days ago
- Business
- Business Standard
REIT trading jumps 400% in 2 years: Alternative Investment boom decoded
If you're looking to grow your wealth with more stability and less daily drama than the stock market, there's a new wave of investments that's catching attention: REITs and InvITs. These options are increasingly being used by everyday investors to earn steady returns while backing the country's infrastructure and real estate growth. According to rating agency ICRA Analytics, trading in REITs and InvITs has surged in just the last two years: REIT volumes rose 400% from FY23 to FY25 InvIT volumes jumped 128% during the same period Value of REITs traded: from ₹11,234 crore in FY23 to ₹31,206 crore in FY25 Value of InvITs traded: from ₹2,840 crore to ₹6,121 crore That's a clear sign that more people are buying in—especially individual investors and not just large institutions. So, what are REITs and InvITs? Think of REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) as mutual funds—but instead of owning stocks or bonds, these invest in income-generating real estate or infrastructure assets. You can buy units of REITs or InvITs on the stock market, just like shares, and earn income from the rent, tolls, or fees they collect. REITs own office buildings, malls, and other commercial real estate. InvITs invest in infrastructure like highways, power transmission lines, and telecom towers. In terms of traded value, public InvITs grew by 115.53 per cent in the last two years while public REITs increased by 177.78 per cent since FY2023. What's Driving the Demand? Reliable Income: These assets typically provide regular payouts, making them attractive for investors looking for yield, especially when bank FDs and savings accounts offer limited returns. Infrastructure and Office Boom: Government policies on infrastructure and office space demand (especially from global firms setting up operations in India) are creating a pipeline of assets for these funds to grow. Market Confidence: Public InvITs saw a 4% rise in market value year-on-year, and REITs rose 10%, showing solid backing from both retail and institutional investors. What the numbers say: The volumes of public InvITs traded, which stood at 2735 lakh units in FY23, has increased to 6242 lakh units in FY25, said ICRA. On a year-on-year basis, volumes traded increased by 20.52 per cent from 5179 lakh units in FY24. The volumes of public REITs traded increased from a mere 3273 lakh units in FY23 to 16,350 lakh units in FY25. On a year-on-year basis, it grew by 230.10 per cent from 4953 lakh units in FY24. The public InvITs' traded value stood at Rs 6121 crore in FY25 as against Rs 2840 crore in FY23; while REITs was at Rs 31,206 crore in FY25 as compared with Rs 11,234 crore in FY23. On a year-on-year basis, InvITs' traded value grew by 14.41 per cent from Rs 5350 crore in FY24 while that of REITs increased by 157.47 per cent from Rs 12,120 crore in FY24, as per ICRA. The total number of unitholders in both these instruments put together increased by 8.23 per cent at 67.23 crore in FY25, as against 62.12 crore in FY24. There are currently five InvITs and four REITs which are publicly traded. Should you invest? REITs and InvITs offer a balance of income and potential appreciation—but they are not risk-free. Market movements, interest rate changes, and occupancy levels in properties can affect returns. However, for long-term investors looking to diversify beyond traditional stocks and mutual funds, these instruments can offer: Quarterly income Exposure to real assets Listed and regulated options with daily liquidity As of now, there are five publicly traded InvITs and four REITs available in India, and more are expected to launch through IPOs as market interest grows. 'Market capitalisation of public REITs has grown by a healthy ~10 per cent over FY2024. This remarkable growth underscores renewed institutional and retail investor appetite for commercial real estate-backed securities, supported by uptick in office demand and resilient rental yields. Public InvITs have witnessed ~4 per cent rise in market capitalisation on a year-on-year basis. The consistent uptick points to ongoing confidence in the infrastructure financing ecosystem and growing recognition of InvITs as long-term yield instruments,' said Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics. The year-on-year growth in traded volume, traded value, and market capitalisation for both REITs and InvITs highlights robust market participation and a favourable investment climate. These trends reflect the growing maturity of India's alternative investment space and its increasing appeal to both domestic and global investors. The government's focus on infrastructure development and asset monetisation plans will provide a steady pipeline of assets for InvITs to expand, while the growing number of GCCs is expected to drive the demand for good-quality Grade A office space, providing scope for commercial real estate to come under REITs. Amid strong market momentum and growing investor interest from both institutional and retail segments, there is expected to be a noticeable uptick in activity in the IPO space for REITs and a trend of private entities transitioning to public market structures, reflecting overall positive sentiment and confidence in capital markets." Sengupta added.
India Gazette
6 days ago
- Business
- India Gazette
Investor interest growing for REITs, InvITs; volumes and value both increasing: ICRA Analytics
New Delhi [India], July 7 (ANI): Rising investor interest amid growing confidence in yield-generating assets is leading to good growth in volumes of publicly traded REITs and InvITs over the last two years, ICRA Analytics said in a statement Monday. The total volumes of public InvITs traded increased by 128.23 per cent in the last two years, while that of public REITs surged by a whopping 399.54 per cent since 2022-23, ICRA Analytics said, a wholly owned subsidiary of ICRA Ltd. REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are investment vehicles that allow investors, both individual and institutional, to participate in the real estate and infrastructure sectors, respectively, without directly owning properties or infrastructure assets. In terms of traded value, public InvITs grew by 115.53 per cent in the last two years, while public REITs increased by 177.78 per cent since 2022-23, said the report. The volume of public InvITs traded, which stood at 2,735 lakh units in 2022-23, has increased to 6,242 lakh units in 2024-25. On a year-on-year basis, volumes traded increased by 20.52 per cent from 5,179 lakh units in 2023-24. The volumes of public REITs traded increased from a mere 3,273 lakh units in 2022-23 to 16,350 lakh units in 2024-25. On a year-on-year basis, it grew by 230.10 per cent from 4,953 lakh units in 2023-24. The total number of unitholders in both these instruments combined increased by 8.23 per cent to 67.23 crore in 2024-25, compared to 62.12 crore in 2023-24. There are currently five InvITs and four REITs which are publicly traded. 'Market capitalisation of public REITs has grown by a healthy 10 per cent over 2023-24. This remarkable growth underscores renewed institutional and retail investor appetite for commercial real estate-backed securities, supported by uptick in office demand and resilient rental yields. Public InvITs have witnessed 4 per cent rise in market capitalisation on a year-on-year basis,' said Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics. 'The consistent uptick points to ongoing confidence in the infrastructure financing ecosystem and growing recognition of InvITs as long-term yield instruments,' added Sengupta. The year-on-year growth in traded volume, traded value, and market capitalisation for both REITs and InvITs highlights robust market participation and a favourable investment climate. 'These trends reflect the growing maturity of India's alternative investment space and its increasing appeal to both domestic and global investors,' ICRA Analytics added. (ANI)
Time of India
27-06-2025
- Business
- Time of India
B30 locations witness surge of 27% YoY in assets at Rs 13.28 lakh crore in May: ICRA Analytics
Assets from B30 locations increased from 12.66 lakh crore in April 25 to 13.28 lakh crore in May 20255, representing a surge of 5%. However, on a yearly basis, the same rose by 27%. Assets from T30 locations increased by 22% year-over-year in May 2025 and nearly 18% of the assets of the mutual fund industry originated from B30 locations in May 2025, according to a press release by ICRA Analytics. Source: ICRA Analytics Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo Also Read | Parag Parikh Flexi Cap Fund, Quant Small Cap Fund among 17 mutual funds which deliver over 20% XIRR on SIP investments in 10 years B30 locations tend towards equity assets. As of May 2025, nearly 76.41% of the assets from B30 locations are invested in equity schemes, and 9.38% are in balanced schemes. Close to 11.71% of the assets from the B30 location are in debt-oriented schemes, while the same from the T30 location accounts for 31.13%. In May 2025, 27.33% of assets held by individual investors was from the B30 locations while 4.67% of institutional assets came from B30 locations. Live Events According to the release, institutional assets are concentrated in T30 locations, accounting for 95.34 % of the total. In May 2024, 26.45% of assets were held by individual investors from B30 locations and 4.75% of institutional assets from B30 locations. Also Read | MNC mutual funds struggle to perform, lose 3% in 1 year. What's driving the underperformance? As of May 2025, approximately 26.56% of retail investors opted for direct investments, while 65.94% of retail investors came through the route of Non-Associate Distributors. Around 28.27% of High Net Worth Individual (HNI) assets were directly invested. Additionally, 47.18% of the mutual fund industry's assets were invested directly, and 46.32% came from Non-Associate Distributors. Source: ICRA Analytics ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
19-06-2025
- Business
- Time of India
Global market volatility dents net inflows in equity mutual funds to drop by 22% in May: ICRA Analytics
The net inflows into equity mutual funds were Rs 19,013.12 crore in May against Rs 24,269 crore in April. The net flow in equity-oriented funds witnessed MoM fall of 21.66% and a YoY decline of 45.20%, which can be attributed to the rising global volatility that has been worsened by geopolitical tensions stemming from India's Operation Sindoor against Pakistan and ongoing worries about global inflation. Additionally, net inflow in Domestic ETFs (other than Gold ETFs) fell 78.55% MoM in May-25 after touching an all-time high of Rs. 19,057 crore in Apr-25, according to a release by ICRA Analytics. Also Read | ITC and Cochin Shipyard among stocks that Quant Mid Cap Fund bought and sold in May Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » The assets under management (AUM) of the Indian mutual fund industry grew on a year-on-year basis by 22.55% in May 2025 to Rs 72.20 trillion. AUM of open-ended growth/equity-oriented schemes witnessed the highest YoY growth of 26.21% in May-25, closely followed by other open-ended schemes (24.45%) and hybrid schemes (22.12%). Other schemes comprise index funds , ETFs and FoF investing overseas, according to data from the Association of Mutual Funds in India (AMFI). Live Events Under the equity category, AUM of sectoral/thematic funds witnessed the maximum YoY growth of 45.99%, followed by multi-cap funds, which grew 40.37%. In the debt space, the AUM of the long duration scheme category rose 53.15% YoY followed by the money market (44.49%) and ultra short duration (32.51%) categories. Within the index funds and ETF space, the Gold ETF schemes grew 97.08% YoY in May-25 to Rs 62,453 crore, followed by a modest growth of 30.95% in index funds over the same period to Rs 3 lakh crore. The number of folios grew YoY as on May 2025 by 28.15%. This growth can be attributed to other schemes for which folios over the year grew by 43.29% while that of equity schemes grew by 28.80%. Meanwhile, folio count for debt-oriented schemes witnessed a YoY uptick of 0.89%. The total number of outstanding SIP accounts grew 3% over the year to 905.57 lakhs in May 2025 from 875.89 lakhs in the same period of the previous year. The number of contributing SIP accounts grew 30% from May 2025 to 856.00 lakhs in May 2025. Also Read | Money market funds outshine liquid & overnight funds in May. Time to rethink emergency fund strategy? SIP contribution over the year grew 28% to Rs. 26,688 crore in May 2025 from Rs 20,904 crore in the same period of the previous year. SIP AUM increased by 27% over the year in May 2025, while it grew by 5% over the month. SIP AUM as a % of month end AUM stood at 20.24% in May 2025 as compared to 19.57% in May 2024. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
