Key Takeaways
- • Business Today commentary by Jain argues REITs, InvITs and AIFs can complement a diversified portfolio, but they are not automatically safer or better diversifiers than conventional assets.
- • According to data cited in the article, cumulative AIF commitments stood at approximately ₹16.94 lakh crore as of March 31, 2026, with investments made crossing ₹6.76 lakh crore.
- • Category II AIFs accounted for the largest share of commitments at around ₹12.74 lakh crore, per Jain's article.
- • SM REITs could give investors access to smaller income-generating commercial properties with a starting amount of ₹10 lakh, avoiding direct operational responsibilities.
- • Jain says the sector's future depends on "strong regulation, transparent investment structures and technology-enabled access," with digital platforms central to the next phase.
Summary
A Business Today article by Jain examines whether REITs, InvITs and AIFs can diversify investor portfolios. REITs allow investors to hold professionally managed portfolios of income-generating commercial properties without owning whole buildings or handling leasing and maintenance. InvITs offer exposure to operating infrastructure such as roads, power transmission networks and renewable energy projects. Jain noted that listed REITs and InvITs have introduced individual investors to institutional-style real-asset investing and offer greater trading flexibility than direct ownership, although prices can fluctuate and liquidity is not guaranteed in all conditions.
AIFs provide a route into private markets, spanning private equity, private credit, real estate and other specialised strategies. According to data cited in the article, cumulative AIF commitments reached approximately ₹16.94 lakh crore as of March 31, 2026, while investments made had crossed ₹6.76 lakh crore. Category II AIFs held the largest share of commitments, at around ₹12.74 lakh crore. The article stresses that AIFs differ materially from listed REITs and InvITs in liquidity, investment horizon, minimum investment and risk, and that investors should understand strategy, fees, lock-in provisions and underlying assets before committing capital.
SM REITs could extend the model to smaller income-generating commercial properties, bringing fragmented segments of the commercial property market into a regulated format. Jain highlighted access with a starting amount of ₹10 lakh and the potential for digital distribution to formalise the segment.
Jain believes technology will be central to the next phase of alternative investing, simplifying discovery, onboarding, documentation, portfolio monitoring and transaction execution, and potentially reducing barriers for investors outside major metropolitan wealth centres. The article cautions, however, that alternatives are not inherently safer diversifiers. REITs and InvITs remain exposed to market movements, interest rates and underlying asset performance, while AIFs may involve illiquidity, valuation uncertainty and higher fees. The article concludes that these products should be assessed alongside existing holdings, financial goals, liquidity needs and risk tolerance, complementing rather than replacing conventional allocations.
AIFs provide a route into private markets, spanning private equity, private credit, real estate and other specialised strategies. According to data cited in the article, cumulative AIF commitments reached approximately ₹16.94 lakh crore as of March 31, 2026, while investments made had crossed ₹6.76 lakh crore. Category II AIFs held the largest share of commitments, at around ₹12.74 lakh crore. The article stresses that AIFs differ materially from listed REITs and InvITs in liquidity, investment horizon, minimum investment and risk, and that investors should understand strategy, fees, lock-in provisions and underlying assets before committing capital.
SM REITs could extend the model to smaller income-generating commercial properties, bringing fragmented segments of the commercial property market into a regulated format. Jain highlighted access with a starting amount of ₹10 lakh and the potential for digital distribution to formalise the segment.
Jain believes technology will be central to the next phase of alternative investing, simplifying discovery, onboarding, documentation, portfolio monitoring and transaction execution, and potentially reducing barriers for investors outside major metropolitan wealth centres. The article cautions, however, that alternatives are not inherently safer diversifiers. REITs and InvITs remain exposed to market movements, interest rates and underlying asset performance, while AIFs may involve illiquidity, valuation uncertainty and higher fees. The article concludes that these products should be assessed alongside existing holdings, financial goals, liquidity needs and risk tolerance, complementing rather than replacing conventional allocations.
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