The Sebi move to notify the guidelines for real estate mutual funds (REMFs) was not only cheered by the MF players but also by the real estate players and the developers. HDFC MF, promoted by the housing finance major HDFC and others is believed to be the first asset management company (AMC) to grab the opportunity provided by these guidelines and is expected to be the first one to come out with the REMF. However, Milind Barve, CEO, HDFC MF could not be reached for the comment.
Ajay Bagga, CEO, Lotus India MF, said, ?This is a very good move by the Sebi and this will be useful to the retail investor in the country. In India there has been a savings of Rs 35,000 crore every year and almost 50% of the people invest in physical assets such as shops, factories and houses. This is a positive sign for the future of the real estate sector in our country?.
Sandesh Kirkire, CEO, Kotak Mahindra MF also echoed the same view and said, ?This is the positive move for the real estate sector in our country as I think there will be more transparency in the real estate market. Apart from this, retail investors in the country will benefit by this move by taking an exposure in the real estate asset, which could not be possible for him with very little saving available at his disposal.?
Rajivdeep Bajaj, CEO, Bajaj Capital said, ?The Sebi move will bring real estate assets as a new asset class among the mutual fund investors. In the longer run, it is expected that real estate as an asset class will catch up with the most preferred asset class the equities. The REMFs is expected to be the most popular among the growth investors, as it will provide them an opportunity to participate in India?s real estate boom?.
Sameer Kamdar, National head, MF, Mata Securities also welcomed the Sebi move but raised an important point on the issue of net asset value (NAVs) of the close-ended REMF schemes. He said normally the NAV of the close-ended exchange traded schemes are quoted at a discount to the NAVs. Though the exchange traded platform provides an exit option to the investors but why should it suffer a loss?, he asked.
AP Kurian, chairman, Amfi said, ?We were expecting this notification from Sebi anytime now, as we were in constant touch with them on this issue for the past few months. We will be committed to the guidelines by the Sebi on the REMFs?.
According to Pranay Vakil, chairman, Knight Frank India, ?It is a very good thing that Sebi has issued guidelines for floating REMFs, as the scheme is expected to bring in $15 billion (Rs 60,000 crore) to the Indian real estate market.?
Mayur Shah, managing director, Marathon Group said, ?So far, small investors could not hold on to properties, which could yield good long-term rentals.?