SEBI's Latest Investment Guidelines for Real Estate Mutual Funds
The Securities and Exchange Board of India (SEBI) has issued a significant clarification regarding investment parameters for real estate mutual funds, expanding their potential investment landscape.
Key Highlights of the Regulatory Update
- SEBI has broadened the investment scope for real estate mutual funds
- Investment permissions now cover properties in:
- 35 cities with million-plus urban agglomerations
- 27 cities categorized under the million-plus category
- The classification is based on the Census 2001 data
Implications for Investors
The regulatory modification provides mutual fund managers with greater flexibility in selecting property investment locations. By allowing investments across a wider range of urban centers, SEBI aims to enhance the potential for diversification and returns in real estate mutual fund portfolios.
This regulatory clarification represents a strategic move to support more dynamic and geographically comprehensive real estate investment strategies within the mutual fund ecosystem.