India’s mutual fund industry continues to deepen its footprint in Infrastructure Investment Trust (InvIT) and Real Estate Investment Trusts (REITs), with 25 fund houses investing around ₹55,000 crore in these two instruments so far, according to AMFI chairman Sundeep Sikka.

“Speaking on behalf of the mutual funds, you’ll be pleased to know that 25 mutual funds have invested around ₹55,000 crore in InvITs and REITs so far—roughly 1% of the AUM,” Sikka said at the National Conclave on REITs and InvITs 2025 in New Delhi today.

Sikka said mutual funds currently hold about 1% of industry AUM in these products, but he expects this share to “grow multifold” as awareness deepens and regulatory frameworks strengthen.

Drawing a comparison, he pointed out that gold ETF assets grew from ₹14,000 crore four years ago to nearly ₹1 lakh crore today, underscoring how investor interest rises rapidly once trust and clarity increase.

Sikka said the evolution of InvITs mirrors the early days of the mutual fund industry, calling it a “nostalgic” reminder of how the sector first took shape. He highlighted that a strong regulatory framework and industry collaboration enabled mutual funds to expand from an AUM of ₹9 lakh crore in 2011 to their current scale.

According to him, InvITs, introduced in 2014, have seen a similar steady and well-supported growth journey, driven by consistent regulation and collective industry effort.

He urged industry participants to work together, saying that the “association must always function in the interest of the industry, not any individual stakeholder”.

He also welcomed the Sebi’s clarity on classifying equity and debt for InvITs and REITs. This makes it “easier for portfolio managers and, more importantly, helps us add value to our unit holders.”

Speaking at the event, Sebi chairman Tuhin Kanta Pandey indicated that the regulator is examining the calibrated inclusion of Real Estate Investment Trusts (REITs) in key market indices. Bringing REITs into benchmark indices, he said, would enhance their liquidity, improve visibility, and encourage greater institutional participation in the segment.

Pandey said the top priority is improving liquidity. Classifying REITs as equity for mutual funds will boost entry and exit and attract passive and foreign flows. InvITs, being more like debt instruments, need dedicated institutional investment limits to raise allocations.