Kotak Mahindra Asset Management Company on Monday announced the launch of Kotak International REIT Fund of Funds, an open-ended mutual fund scheme that will invest in units of SMAM Asia REIT Sub Trust Fund. The country's first diversified REIT Mutual Fund, the scheme will have a diversified investment portfolio comprising listed REITs, which will invest in realty projects in the residential, office, data centre, warehousing, retail and hospitality segments, Kotak Mahindra AMC said in a statement.
The new fund offer (NFO) opened for subscription on Monday, December 7. and will close on December 21.
"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," said Nilesh Shah, managing director and CEO, Kotak Mahindra Asset Management Company.
"These regions are expected to see a massive demand in real estate backed by growth in consumer spending, urbanization and becoming the epicentre of global trade," he said.
The Kotak International REIT Fund of Funds offers an opportunity for domestic investors to invest and benefit from growth in real estate market without actually owning the entire asset, said Kotak Mahindra AMC, a wholly-owned subsidiary of Kotak Mahindra Bank.
Investment in the REIT Fund of Funds gives investors an opportunity to create a more balanced portfolio with asset allocation beyond the traditional equity and debt instruments. The SMAM Asia REIT Sub Trust Fund is one of the largest Asia Pacific (Ex Japan) REIT funds investing in listed REITs in the Asia Pacific region, the company said.