The Reserve Bank of India (RBI)´smove to allow banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Funds (InvITs) might not find many takers, if experts are to be believed. Currently, banks can invest in instruments such as mutual fund schemes, venture capital funds and equities to the extent of 20 per cent of their net owned funds. This limit will now include REITs and InvITs. REITs and InvITs typically offer higher yields but carry higher risks as well. This is because money raised through these instruments is invested in projects in the real estate and infrastructure sectors, which can be impacted due to cyclicality. A bank which would have already lent to these companies can now also take an equity interest in these companies´ projects via REITs and InvITs. Analysts sayabank which has lent toareal estate developer, for instance, would typically know all the intricacies about the projects and may consider investing in these instrume