MUMBAI: According to Nuvama Alternative & Quantitative Research, Knowledge Realty Trust (KRT), Embassy Office Parks, Mindspace Business Parks, Nexus Select Trust, and Brookfield may be classified under equity categories in the upcoming reclassification by the Association of Mutual Funds in India (AMFI) scheduled for January 2026.
Recently, the Securities and Exchange Board of India (SEBI) redefined Real Estate Investment Trusts (REITs) as ‘equity-related instruments’ to encourage greater participation from mutual funds.
If REITs are moved to the equity categories by the mutual fund industry body, KRT and Embassy may be categorized as mid-caps, while Mindspace, Nexus, and Brookfield could be classified as small caps, as noted by Abhilash Pagaria, head of Nuvama Alternative.
Mutual fund managers should monitor the AMFI stock categorization, which acts as a guideline for classifications of large-cap, mid-cap, and small-cap stocks. Though reclassification may not directly affect inflows or outflows, portfolio adjustments must be made within a month according to the updated list, with rebalancing decisions resting with the fund manager.
The mutual fund industry body announces share reclassifications biannually, with the official list expected from AMFI in the first week of January.
