Streamline investment for insurance, pension funds in InvITs: NITI Aayog

A staggered approach should be followed for streamlining of investment guidelines and limits to keep pace with the growth in the InvIT market, it suggested

The NITI Aayog has suggested streamlining limits for investment by insurance and pension funds in infrastructure investment trusts (InvITs) to promote active participation by investors to fund infrastructure (infra) projects.
 
“The long-term nature of infra projects requires active participation from investors looking at a similar return profile from their investments. However, the existing investment guidelines for insurance and pension funds limit the exposure of such funds to InvIT/real estate investment trust (REIT) assets,” the Aayog said in the guidebook of the National Monetisation Pipeline (NMP).
  
The investment limit for insurance funds is currently capped at 3 per cent of fund size of the insurer, and 5 per