6 days ago

EPFO, insurers may drive India’s next REIT, InvIT growth

A report says pension funds and insurance companies could invest more money in REITs and InvITs.

These are investment vehicles linked to real estate and infrastructure projects.

The Employees’ Provident Fund Organisation currently has limited exposure to them.

Allowing EPFO to invest more widely could bring over ₹60,000 crore into the market.

Insurance companies also have room to increase their allocations.

The report says pension funds could add about ₹2.2 lakh crore of demand by 2030.

More long-term investors could make the market deeper and steadier.

The report estimates that the market could exceed ₹20 lakh crore by 2030.

Key facts

EPFO investible corpus: Around ₹31.2 lakh crore
Potential EPFO impact: A 2% additional allocation could direct more than ₹60,000 crore to REITs and InvITs.
Current insurance limit: IRDAI caps combined REIT and InvIT exposure at 6% of insurers’ investments.
Potential insurance impact: A 1-percentage-point increase in insurance exposure could channel more than ₹60,000 crore.
Pension demand by 2030: Estimated incremental demand of around ₹2.2 lakh crore.
Market size projection: REIT and InvIT assets under management could rise from nearly ₹10 lakh crore to more than ₹20 lakh crore by 2030.
Total additional investment pool: The report estimates potential additional demand of ₹11.6 lakh crore across several investor groups by 2030.

businesstoday.in · 6 days ago