Kotak AMC introduces India’s first diversified REIT Mutual Fund


Kotak Mahindra AMC (Kotak Mutual Fund) launched Kotak International REIT Fund of Funds.  It was India’s first diversified REIT Mutual Fund. 

 Kotak International REIT Fund of Funds is an open-ended mutual fund scheme. This mutual fund will invest in units of SMAM Asia REIT Sub Trust Fund. This mutual fund scheme will have a diversified investment portfolio which comprises of listed Real Estate Investment Trusts (REITs). This REITs will invest in real estate projects like residential, office, data centres, warehousing, retail and hospitality. The SMAM is one of the largest Asia Pacific (Ex Japan) REIT funds. They are investing in listed REITs in the Asia Pacific region. The New Fund Offer (NFO) is open now.

Sumitomo Mitsui DS Asset Management Co. Ltd, Asia, Katsunosuke Ozawa Councilor, expressed that they are very happy to be part of Kotak’s international REIT Fund. The new fund will help the country’s long-term investors to invest in a diversified portfolio of real estate projects across the Asia Pacific region through listed REITs. 

Kotak International REIT Fund of Funds produces an opportunity for domestic investors to invest and also they can get benefit from this. The benefit is from growth in the real estate market without actually owning the full asset. Real Estate Investment Trusts (REIT) own, promote, or finance income-generating real estate. The SMAM Asia REIT Sub Trust Fund is managed by Sumitomo Mitsui DS Asset Management Company Limited. The company has a significant portfolio of listed Real Estate Investment Trusts in Singapore, Hong Kong and Australia. The New Fund Offer will close on 21st December.

Nilesh Shah, MD & CEO, Kotak Mahindra Asset Management Company said that Real Estate Investment Trusts (REITs) have seen limited growth in India. The local investors are getting a substantial opportunity from the Asia Pacific region and they are getting lots of benefit from growth across different sectors of real estate. These regions are expected to see a massive demand in real estate assisted by growth in consumer consumption, urbanization and thus expects to become the centre of the global market. Investment in a REIT FoF ensures opportunity for investors to develop a more stable portfolio with asset allocation over and above the traditional equity and debt instruments.


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