Equity mutual funds mainly invest in company shares, but some schemes also allocate a portion of their portfolios to overseas securities, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These investments provide exposure to international markets, commercial property and infrastructure assets alongside traditional equity holdings.
According to a post shared by Value Research on X, some equity mutual funds have significant allocations to these alternative investments. WhiteOak Capital Dividend Yield Fund leads the list, with 79.4% of its net assets invested in REITs and InvITs. Meanwhile, technology-focused schemes such as Edelweiss Technology Fund and Franklin India Technology Fund hold foreign securities within this category.
Here is a closer look at the leading funds and the types of investments they hold.
What Are Foreign Securities, REITs and InvITs?
Foreign securities include shares of companies listed overseas and exchange-traded funds (ETFs) that trade in international markets. They allow investors to gain exposure to businesses and economies outside India.
Real Estate Investment Trusts (REITs) invest in or operate income-generating properties, including office buildings and shopping malls. REIT units can be listed and traded on stock exchanges such as the National Stock Exchange (NSE).
Infrastructure Investment Trusts (InvITs) hold infrastructure assets such as highways and electricity transmission networks. Through listed or privately placed trust units, investors can participate in income generated by these assets.
Top 10 Equity Mutual Funds With Exposure to These Investments
The following table lists the funds with the highest combined exposure to foreign securities, REITs and InvITs, based on the portfolio disclosures cited below.
| Mutual fund | Exposure (% of net assets) | Investment categories |
|---|---|---|
| WhiteOak Capital Dividend Yield Fund | 79.4% | REITs and InvITs |
| Edelweiss Technology Fund | 26.9% | Foreign securities |
| Franklin India Technology Fund | 20.2% | Foreign securities |
| Franklin India Dividend Yield Fund | 19.8% | Foreign securities and REITs |
| WhiteOak Capital Multi Asset Allocation Fund | 19.6% | Foreign securities, REITs and InvITs |
| Parag Parikh Flexi Cap Fund | 18.2% | Foreign securities and REITs |
| Kotak Pioneer Fund | 17.3% | Foreign securities |
| DSP Multi Asset Allocation Fund | 17.2% | Foreign securities, REITs and InvITs |
| Invesco India Multi Asset Allocation Fund | 16.8% | Foreign securities and InvITs |
| WhiteOak Capital Equity Savings Fund | 16.2% | REITs and InvITs |
<text color=”secondary” size=”sm”>Source: Value Research. Only active funds are considered, based on September 2026 portfolio disclosures.</text>
Key Holdings of the Leading Mutual Funds
WhiteOak Capital Dividend Yield Fund tops the list, with 79.4% of its net assets allocated to REITs and InvITs. Its reported REIT holdings include Bagmane Prime Office REIT, Nexus Select Trust, Mindspace Business Parks REIT and Knowledge Realty Trust. Its InvIT investments include Cube Highways Fund, National Highways Infra Trust and Vertis Infrastructure Trust.
Edelweiss Technology Fund has 26.9% exposure to foreign securities, with Nvidia, Apple Inc. and Mphasis among its leading holdings. Franklin India Technology Fund also invests in foreign securities, with exposure of 20.2%.
Franklin India Dividend Yield Fund has 19.8% exposure across foreign securities and REITs. Its reported holdings include Taiwan-based MediaTek Inc. and Embassy Office Parks REIT.
WhiteOak Capital Multi Asset Allocation Fund allocates 19.6% to foreign securities, REITs and InvITs. Its holdings include Vanguard S&P 500 ETF, Cube Highways InvIT Fund and Nexus Select Trust.
Parag Parikh Flexi Cap Fund has 18.2% exposure to foreign securities and REITs, with Alphabet and Embassy Office Parks REIT among its reported holdings.
The remaining funds in the top 10 are Kotak Pioneer Fund, DSP Multi Asset Allocation Fund, Invesco India Multi Asset Allocation Fund and WhiteOak Capital Equity Savings Fund, with combined exposure ranging from 16.2% to 17.3% of net assets.
What Does This Mean for Investors?
Exposure to foreign securities, REITs and InvITs can provide mutual funds with access to different markets and asset classes beyond Indian company shares. However, the level and type of exposure vary considerably between schemes.
Investors should not choose a mutual fund based solely on its allocation to these assets. A fund’s investment objective, risk profile, portfolio composition, costs and suitability for individual financial goals should also be considered before investing.
Disclaimer: This article is intended for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any mutual fund. Portfolio allocations and holdings may change over time. Investors should verify the latest scheme disclosures and consult a SEBI-registered investment adviser before making investment decisions.