Yes. From January 1, 2026, REITs fall under the “equity-related” classification for all mutual funds and SIFs. This means REIT exposure contributes to a scheme’s equity allocation limit. Even though REITs offer income stability, their price movement is strongly market-linked, which aligns more closely with equity risk behaviour.

No. Debt funds can only continue holding REITs they already owned as of Dec 31, 2025. This is called “grandfathering.” It prevents sudden selling pressure and protects investors, but the fund cannot increase its REIT position because it no longer aligns with the risk profile of a debt scheme.

It may -especially in debt schemes that gradually divest REITs. Since REITs behave like equity and can be more volatile than debt instruments, any sale or market movement can influence NAV temporarily. However, SEBI’s gradual divestment encouragement helps avoid disruption.

SEBI provides a six-month stabilization period so index providers, AMCs, and benchmark-linked products (ETFs, index funds) can adjust systematically. This avoids sudden benchmark changes, reduces tracking error, and ensures fair inclusion rules are followed.

No. AMCs only need to issue an addendum updating classification. Investors do not need to provide consent because the underlying investment mandate remains aligned with regulatory standards. This keeps processes efficient and investor-friendly.

Grandfathering, a regulatory mechanism that allows existing investments to continue under old rules even after new rules come into effect. In this circular, debt schemes’ REIT holdings are grandfathered to prevent forced selling and protect investor interests.