SEBI has announced that from 1 January 2026, all investments made by Mutual Funds and Specialized Investment Funds in REITs will be treated the same way as equity investments. Existing REIT investments held in debt mutual fund schemes will be allowed to continue, but SEBI has asked fund houses to slowly reduce them when market conditions allow. InvITs will continue to be treated as hybrid instruments, with no change. AMFI will now list REITs according to their market-cap category, and mutual funds must update their scheme documents—this update will not count as a major change. REITs can be added to equity indices only after 1 July 2026.
