Multi-Asset Real

Estate Fund
( MARE Fund )

Raghav Singhal - 46
 Table of Content
1 Problem

2 The Solution

3 How Will Returns be Generated ?

4 MARE Fund Features ?

5 Role of NBFC

6 REITS + Mutual Funds V/S MARE FUND

7 Drawbacks
 Problem

Real Estate
Investors
Companies
High Debt Burden No instrument available
No Current Cash Flow which gives exposure
to real estate, equity
NBFCs and HFCs (including and debt market
trusteeships) total lending together
towards the Indian real estate Very less direct
market is at 63%.  options available to
invest in Real Estate
Gross NPA’S stood at 6.8% market for retail
(2021, est. increase 250 bps) investors

Source: https://economictimes.indiatimes.com/
 The Solution
Real
Estate
AMC
Compan
y

MARE Fund
NBFC

Investor
 How Will Returns be Generated ?
Grade A
Real
Estate
Grade B AMC
Compan
y
Grade C

MARE Fund
NBFC

Investor
 MARE Fund Features ?

1 Maturity: 5 yrs

2 Lockin: 6 months

3 Minimum Investment Needed: 5000

4 Can be invested in Lump Sum or SIP bases

Minimum percentage to be invested in real

5
estate company or project is 60%

6 Liquidity: Can be sold anytime after lockin

period
 Role of NBFC

1 Issuer of the Instrument

Decide the ratio in which the money will

2 be divided in Real Estate projects and
equity and debt instrument

Prepare semi-annual report detailing the

3 performance of the fund
 REITS + Mutual Funds V/S MARE FUND
Our fund helps real estate companies to
manage their debt obligations whereas REITS 1
invest in Individual Projects and provide loans

MARE fund enjoys a share of revenue of the

real estate projects and may give a return 2
higher than that of REITS

MARE FUND
Provides exposure to the equity market along
with real estate and minimum investment 3
required is lower in MARE fund (5K vs 15K)

Acts as a fund of mutual funds and experts

choose the mutual funds or stocks to invest in 4
 Drawbacks

1 2 3
Long gestation Layering of fees One time
period as an due to long term
average real investment in return with
estate project different mutual no interest or
takes a few years funds and dividend
to develop. NBFC’s fees income
Long Layering of One time
gestation fees payment
THANK
YOU