REITs are equity, not fixed income, experts say

Experts are correcting a common misconception that Real Estate Investment Trusts (REITs) are fixed-income investments. Edelweiss Mutual Fund MD & CEO Radhika Gupta and Dezerv co-founder Vaibhav Porwal explain that REITs, despite regular payouts, carry equity-like risks tied to rental income, occupancy, and property cycles. SEBI's recent classification of REITs as equity-related instruments, effective from January 2026, reinforces this view. They recommend REITs for diversification, not as debt substitutes, and caution against chasing high yields.