After Sebi, Amfi likely to put equity tag on Reits in Jan rejig

Mutual Fund Investors Must Watch for Changes in January 2026

According to recent announcements, the Association of Mutual Funds in India (AMFI) may reclassify Real Estate Investment Trusts (REITs) like KRT and Embassy into mid-cap equity in January 2026.

Expected Changes

• KRT and Embassy may be reclassified into mid-cap equity.
• Mindspace, Nexus, and Brookfield could join small-cap equity.
• This move follows SEBI's decision to boost mutual fund participation in REITs.

Impact on Fund Managers

Fund managers will need to adjust their portfolios accordingly, as the official list of reclassified shares is set to arrive in early January.

As per the Securities and Exchange Board of India (SEBI), the reclassification of REITs as 'equity-related instruments' aims to boost mutual fund participation in these instruments.

Official List Release

AMFI will release the official list of reclassified shares in the first week of January, affecting the equity share categories.

Reclassification Timeline

Mutual fund managers must keep an eye on the AMFI stock categorisation list, which serves as a rulebook for moving across large-cap, mid-cap, and small-cap stocks.

While re-categorisation need not lead to fresh inflows or outflows, an active equity fund manager must align their holdings within a month of the new list.

Importance of AMFI Stock Categorisation List

The mutual fund industry body announces the reclassification of shares twice a year.

Mutual fund investors should watch for changes in January 2026, as the reclassification of REITs may have a significant impact on their portfolios.

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