New Delhi, April 20 -- The Securities and Exchange Board of India (Sebi) has proposed enhancing investment limits for mutual funds (MFs) in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs)-in a move that will potentially boost the real estate and infrastructure sectors and diversify investment avenues.

However, experts have cautioned about potential risks related to liquidity, taxation, and regulatory compliance.

In a consultation paper released on 17 April, Sebi proposed increasing the single issuer investment limit for equity schemes from 5% to 10% of net asset value (NAV) and raising the overall investment limit in REITs and InvITs for equity and hybrid schemes from 10% to 20%.

The existing 10% lim...