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Business Standard
14-05-2025
- Business
- Business Standard
Dario Schiraldi's Perspective: Reshaping Indian Real Estate Portfolios with REITs and INVITs
VMPL New Delhi [India], May 14: Why institutional investors are turning to listed real estate and infrastructure trusts for liquidity, income resilience, and inflation India's real estate and infrastructure landscape undergoes a structural shift, institutional investors are rethinking how to access the sector with greater efficiency, transparency, and capital flexibility. At the forefront of this evolution are Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs)--emerging as preferred instruments for those seeking steady income, liquidity, and protection from rising inflation. "REITs and INVITs mark a fundamental redefinition of real estate exposure in institutional portfolios," says Dario Schiraldi, Deutsche Bank's former Managing Director and current CEO of VIDA Holding. "They provide structured access to income-generating assets while preserving the liquidity and transparency institutional investors require in a rapidly evolving macro environment." The Emergence of REITs and INVITs in India Overall, the traditional investment landscape in India was influenced by real estate assets and investments in assets through direct ownership, but this approach was very capital-consuming, illiquid, and very difficult to understand. REIT and INVIT structures were introduced by SEBI in 2014 and 2016, respectively and changed the direction of the investment landscape. These vehicles pool capital from multiple investors to acquire and manage revenue-generating assets such as office parks, logistics hubs, highways, and transmission lines, offering exposure to physical infrastructure in a liquid and regulated form. These instruments are gaining strong traction among pension funds, insurance firms, and family offices seeking reliable cash flows and institutional-grade governance. Why Are Institutional Investors Adopting REITs and INVITs? 1. Predictable Income and Inflation Resilience REITs and INVITs typically invest in mature, income-generating assets with long-term contracts. Whether rental income from commercial real estate or toll revenue from expressways, these flows translate into stable distributions for unit holders. As leases and usage fees often contain inflation-linked clauses, investors benefit from real income protection--critical in an environment where traditional fixed-income instruments face yield compression. "In an inflationary world, REITs and INVITs provide yield continuity while helping preserve purchasing power," Dario Schiraldi, Deutsche Bank's former leader explains. "They're not just yield enhancers--they're portfolio stabilisers." 2. Liquidity and Transparency REITs and INVITs, unlike direct property transactions, are all traded on stock exchanges and therefore can provide daily liquidity and price discovery. They are in a great position to offer both flexibility and accountability for institutions. Thanks to SEBI's regulatory oversight, you can count on the highest standards of governance, transparency, and independence when it comes to asset valuation. 3. Diversification and Scale Investing in REITs and INVITs provides broad sector and geographic exposure, due to the pooling of a wide range of assets within a single trust, which mitigates concentration risk. They present a scalable solution for investors seeking large-scale real estate allocation without direct asset management burdens. Market Performance and Momentum As of 2024, India hosts three listed REITs: Embassy Office Parks, Mindspace Business Parks, and Brookfield India Real Estate Trust. These have consistently delivered 6-8% annual yields, supported by steady office leasing demand in key metros. On the infrastructure side, INVITs like IRB INVIT and India Grid Trust have proven that user-based models--toll roads and power transmission--can generate predictable long-term cash flows. These vehicles are becoming core holdings for investors balancing long-duration liabilities or seeking alternatives to volatile equity and debt markets. Key Considerations and Risks Despite their appeal, REITs and INVITs are not risk-free. Unit prices remain susceptible to market sentiment and interest rate cycles. Asset quality, lease duration, and sponsor credibility must be carefully evaluated. Operational missteps or underperformance in underlying infrastructure projects can impair returns. "Thorough due diligence remains essential," Dario Schiraldi cautions. "Institutional investors must assess both the quality of underlying assets and the governance standards of the managing entities." A Strategic Asset Class for the Future India's rapid urbanisation, digital economy expansion, and infrastructure push--driven by programs like Gati Shakti--are setting the stage for exponential growth in tangible assets. REITs and INVITs offer an elegant solution for channelling long-term capital into these sectors while delivering liquidity, transparency, and consistent income. "The Indian real estate market is at an inflexion point," Schiraldi concludes. "Organised investment structures like REITs and INVITs empower institutional investors to participate in India's growth story without sacrificing control, diversification, or governance. This is not just an evolution--it's a redefinition of real estate investing." As India modernises its infrastructure and deepens its capital markets, REITs and INVITs are poised to play a central role in institutional portfolios. Investors seeking durable yield, regulatory clarity, and scalable access to tangible assets represent not just an opportunity, but a necessity in the next generation of portfolio strategy. (ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)
Economic Times
10-05-2025
- Business
- Economic Times
Gold, debt and stocks: Why multi-asset funds are the smartest play
So, What Exactly Is a Multi-Asset Allocation Fund? Live Events Why Is This Category Becoming More Popular in 2025? 1. Equities Are Volatile, Not Cheap 2. Debt Has Stabilised, But Yields Are Capped 3. Gold Is Quietly Doing Its Job 4. The New Investing Generation Wants Simplicity How Much Do These Funds Allocate? Equity allocations in MAAFs range from just over 20% (for conservative models) to 70% or more (for aggressive growth strategies). Debt allocations vary just as much — from under 10% in some funds to over 50% in others. Gold or alternative assets (like international equity or REITs) often make up 5–20%, depending on the fund's objective. What About Tax Efficiency? Are There Risks? Manager's skill matters: In dynamically allocated funds, poor asset calls can hurt performance. The fund's success depends on how well the managers read macro signals. Asset class caps: Some funds may be constrained by internal rules or SEBI mandates, limiting flexibility. Lag in aggressive markets: In a bull run, a MAAF may underperform a 100% equity fund, simply because it's holding debt or gold for protection. What Makes a Good MAAF? Have a clear asset allocation framework (and communicate it transparently) Show a track record of navigating both bull and bear markets Include exposure to non-traditional assets (like global equities or REITs) for added diversification Deliver consistency, even if not the highest headline returns Final Thoughts: Balance is the New Alpha In 2025, Indian investors are standing at an inflexion point. Equity valuations are running high, debt yields have started to flatten, and gold is no longer just a cultural asset — it's a strategic one. In this environment, the conventional wisdom of 'just stay in equities' is being challenged. And a quiet category of mutual funds — multi-asset allocation funds (MAAFs) — is starting to are not the flashy, high-return funds that dominate social media. But for investors who care about stability, resilience, and a smoother investing experience, multi-asset allocation funds may be one of the smartest decisions in today's simply, it's a mutual fund that spreads your money across at least three different asset classes — typically equity, debt, and gold. Some mutual funds even extend their reach by providing exposure to international equities, REITs (Real Estate Investment Trusts), or InvITs (Infrastructure Investment Trusts).Think of it as a pre-assembled portfolio managed by professionals. Instead of juggling different funds for equity growth, debt stability, and gold protection, a MAAF wraps them all into one. That means fewer decisions, less panic during market dips, and a built-in diversification rise of MAAFs isn't random. It's being driven by a combination of market volatility, macro uncertainty, and maturing investor equity markets have delivered handsome returns over the past few years. But valuations have reached multi-year highs in several sectors. That doesn't mean a crash is coming, but it does suggest that the next few years might see slower, bumpier a period of rising interest rates, most debt instruments have stabilised. Yields are no longer falling, but they're not expected to rise significantly either. Debt, therefore, becomes a useful anchor — it adds predictability without dragging too much on has done what it always does in times of macro uncertainty — protect capital. With geopolitical risks, shifting interest rate policies in the West, and inflation still a concern, gold adds a meaningful hedge against sharp equity investors are not just looking for alpha (market-beating returns) — they're looking for clarity, peace of mind, and consistency. MAAFs simplify portfolio management and reduce decision fatigue, especially for those who are just starting or want to automate their investing point is: no two MAAFs are alike. Their design depends on the fund house's philosophy, the target risk level, and the market a lesser-known advantage: you don't pay capital gains tax when the fund switches between asset classes an investor manually switches between, say, a debt fund and a gold ETF, each move triggers a taxable event. However, in a Mutual Asset Allocation Fund (MAAF), the fund manages this rebalancing, which doesn't impact the investor's tax bill unless they sell the entire makes MAAFs more efficient for long-term investors who want asset allocation without tax leakage every time markets — but they're manageable and largely these are trade-offs for a smoother ride — and often, that's precisely what investors want no one-size-fits-all answer. But a solid MAAF will typically:In an era of algorithmic trades, viral stock picks, and economic headwinds, the idea of 'playing it safe' has often been dismissed as boring. But in 2025, boring looks allocation funds aren't about chasing the next 30% return. They're about reducing regret, managing risk, and staying invested without second-guessing every market turn. For long-term wealth building, that's often the difference between good plans and great funds may not make you rich overnight, but they could make you a more confident investor over time. And that might just be the smartest investment you make this author Chakravarthy V. is Cofounder & Executive Director, Prime Wealth Finserv. Views are own): Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
08-05-2025
- Business
- Time of India
Sebi revises REIT, InvIT disclosure guidelines for offer documents
Under the new rules, REITs and InvITs issuing offer documents or follow-on offers must disclose audited financial statements for the last three financial years and a stub period, if applicable, Sebi said in two separate circulars. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: Sebi on Wednesday revised the disclosure requirements for Real Estate Investment Trusts and Infrastructure Investment Trusts , revising norms related to financial information in offer documents and post-listing the new rules, REITs and InvITs issuing offer documents or follow-on offers must disclose audited financial statements for the last three financial years and a stub period, if applicable, Sebi said in two separate the latest audited financials are older than six months from the date of filing, additional stub period financials must be provided. In the case of follow-on offers where the entity has not existed for three years, disclosures must cover the period of existence and the stub period, the regulator initial offers, audited combined financial statements of the REIT and InvIT shall be disclosed in the offer document / placement also specified additional disclosures, which will be included as a part of the audited financial information and shall also be subjected to audit. These include project-wise operating cash flows, contingent liabilities and commitments as of the date of the latest financial information will be audited by peer-reviewed auditors approved under the REIT and InvIT circulars will applicable with immediate effect except for the requirements specified under Chapter 4 which shall be applicable for disclosure of financial information for the period beginning on or after April 1, 2025, Sebi the continuous compliance front, REITs and InvITs are required to submit quarterly and year-to-date financial results within 45 days of quarter-end, except for the final quarter to the stock the annual financial results must be submitted within 60 days of the financial year-end, and the final quarter results must reconcile the full-year audited figures with those reported up to the third disclosure of unit holding patterns has also been made more rigorous. REITs and InvITs must report their unit holding pattern one day prior to listing, quarterly within 21 days, and within 10 days of any capital restructuring leading to a change exceeding two per cent in the total outstanding had formed a Working Group for review of compliance requirements for REITs and InvITs, constituted under the aegis of Hybrid Securities and Advisory Committee (HySAC).The regulator issued revised guidelines on the basis of the report of the Working Group.
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Business Standard
02-05-2025
- Business
- Business Standard
Sebi mulls easing InvIT, REIT norms to boost ease of doing business
The market regulator is mulling relaxations to the Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) framework in a bid to promote ease of doing business. The Securities and Exchange Board of India (Sebi) issued a discussion paper on Friday proposing a slew of reliefs. These include changes in the definition of 'public' for minimum public unitholding requirement, alignment of minimum allotment with trading lot for privately placed InvITs, and timelines for submitting various reports. Sebi has also sought comments on adjustment of negative cash flows at holding companies with distributions received from special purpose vehicles (SPVs) in calculation of net distributable cash flow (NDCF). NDCF refers to the amount a REIT can distribute to its unitholders after deducting all operational expenses and obligations. Sebi proposes reducing disclosures in QIP document The Securities and Exchange Board of India (Sebi) proposed amendments to the "placement document" for qualified institutions placement (QIP) on Friday, aiming to streamline disclosure requirements by focusing solely on issue-relevant information. QIP, a key fundraising avenue for listed companies, accounted for 35 per cent of equity-based fund mobilisation in 2023–24. Sebi's proposal considers that listed companies already comply with continuous disclosure obligations, and the existing format's extensive requirements may be time-consuming and lead to redundant information. Sebi relaxes norms for stock brokers to expand in GIFT City The Securities and Exchange Board of India (Sebi) on Friday waived the requirement of seeking specific approvals from the regulator for stock brokers to undertake business in GIFT-IFSC. In a circular, the market regulator stated that brokers could undertake securities market-related activities under a separate business unit (SBU), which will have to be ring-fenced from the activities in the domestic market and the accounts will be kept at arm's length. Net worth of the SBU will also be considered separately. Further, decisions on eligibility, risk management, inspection, claims and investor grievance for such SBUs will fall under the GIFT City regulator. Carlyle exits PNB Housing Private equity (PE) major Carlyle Group's affiliate firm Quality Investment Holdings on Friday sold its entire 10.44 per cent stake in mortgage lender PNB Housing Finance. The PE major sold 27.12 million shares at ₹1,000.2 apiece to raise ₹2,713 crore. Several mutual funds (MFs) and foreign investors bought shares in small quantities. Among the top buyers were Kotak Mahindra MF (₹342 crore), Nippon India MF (₹301 crore), Morgan Stanley (₹130 crore) and Aditya Birla Sun Life MF (₹125 crore). Shares of PNB Housing rose 4.3 per cent after the 'clean out' trade to end at ₹1,054, valuing the company at ₹27,383 crore.
Business Upturn
30-04-2025
- Business
- Business Upturn
Monarch Networth Capital gets Registered Fund Management Entity (Retail) license from IFSCA
By Aman Shukla Published on April 30, 2025, 10:23 IST Monarch Networth Capital IFSC Private Limited, a wholly owned subsidiary of the MNCL Group, has secured a Registered Fund Management Entity (Retail) license from the International Financial Services Centres Authority (IFSCA). This development allows the company to operate as a retail fund manager from its base at GIFT City, India's international financial hub. With this license, Monarch IFSC can now engage in a broad spectrum of fund management activities. These include investing in securities and financial products, managing retail investment schemes, launching Exchange Traded Funds (ETFs), and overseeing public offerings for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The license also permits the management of Family Investment Funds and allows the firm to conduct non-retail fund activities such as restricted schemes, special situation funds, and Portfolio Management Services (PMS), including multi-family office structures. The approval positions Monarch Networth Capital among a select group of Indian institutions with FME (Retail) status at GIFT IFSC. Notably, most license holders are established asset management companies, making Monarch one of the few non-AMCs to gain entry. Monarch already manages approximately ₹900 crore in long-only equity assets under its domestic AIF arm, Monarch AIF. As it marks five years of operation, the group plans to expand its offerings by launching equity-focused products from GIFT City in FY26, targeting foreign investors under the AIF framework. Additionally, the firm has submitted an application for a Mutual Fund license during FY25 and is working closely with regulatory authorities to meet necessary compliance requirements. This new license reflects the group's growing footprint in international financial services and aligns with its broader strategy to enhance product diversity for global and domestic clients. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
