After SEBI, AMFI Plans to Label REITs as Equity in January 2026

According to the Nuvama Alternative and Quantitative Research, Knowledge Realty Trust (KRT), Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust and Brookfield India Real Estate Trust might soon land in the equity mutual funds category during AMFI's next semi-annual reclassification in January 2026.

Just last month, SEBI shook things up by officially tagging Real Estate Investment Trusts (REITs) as 'equity-related instruments'. The goal? To increase the investments in these real estate options that have been overlooked in mutual funds.

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Abhilash Pagaria, the head of Nuvama Alternative Research, noted that if AMFI goes ahead and slots REITs into equity share categories, it is expected that KRT and Embassy Office Parks will slide into the mid-cap category of mutual funds. Mindspace Business Parks, Nexus Select Trust and Brookfield could end up as small-caps.

Mutual fund managers always keep a close watch on AMFI's stock categorisation list, which is basically the rulebook for shuffling large-cap, mid-cap and small-cap holdings. Sure, this re-categorisation would not automatically trigger massive inflows or outflows, but active equity fund managers have to align their portfolios within a month of the new list dropping. How much they adjust is totally up to the fund manager's decision.

AMFI rolls out these reclassifications twice a year and the official January 2026 list should hit in the first week. This decision could open doors for more Mutual Fund money flowing into REITs like Embassy and Nexus, making them hotter picks for diversified portfolios.

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