Ranjit Jha, managing director & chief executive officer of Rurash Financials, calls the move “a landmark decision that aligns Indian regulation with global practices.” He explains that Reits, while still offering stable rental yields like debt, will now be formally treated like equity. “This change has already boosted investor confidence, with units rallying on expectations of higher participation and stronger price discovery,” Jha says.
Jha points out that while Reits remain less volatile than stocks, they will now mirror equity market swings more closely.
“The reclassification primarily impacts how mutual funds allocate to Reits, not the tax liability of end investors,” Jha clarifies.
As Jha sums it up: “Investors now get the best of both worlds, steady income from rents and the upside of being part of the equity market mainstream. The flip side is they must be ready to stomach more volatility.”
Read the Full article at – https://www.business-standard.com/finance/personal-finance/reits-as-equity-what-this-now-means-for-your-investment-portfolio-125092300752_1.html