Kotak Mahindra Asset Management Company has launched India's first diversified Real Estate Investment Trusts (REIT) Mutual Fund — Kotak International REIT Fund of Funds (FoF).
A REIT FoF allows investors to earn dividends from real estate investments without having to buy, manage or finance any properties themselves. Kotak Mahindra's MF scheme will invest in real estate projects such as residential, office, warehousing, retail, data centers and hospitality units listed with SMAM Asia REIT Sub Trust Fund.
The SMAM Asia REIT Sub Trust Fund, is one of the largest Asia Pacific REIT Funds managed by Sumitomo Mitsui DS Asset Management Company Limited. The portfolio consists of REIT funds from Singapore, Australia and Hong Kong.
This MF scheme is open-ended in nature, meaning investors can buy and sell units at Net Asset Value even after the New Fund Offer.
The New Fund Offer has begun for subscription from Monday and will be open until December 21.
Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Company said: "While REIT market has seen limited growth in India, the Asia Pacific region provides a phenomenal opportunity for local investors to benefit from growth across sectors of real estate. These regions are expected to see a massive demand in real estate backed by growth in consumer spending, urbanization, and becoming the epicenter of global trade."