Now Reading: Motilal Oswal Mutual Fund launches Nifty REITs & Realty Index Fund
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Motilal Oswal Mutual Fund launches Nifty REITs & Realty Index Fund
Motilal Oswal Mutual Fund launches Nifty REITs & Realty Index Fund
Motilal Oswal Mutual Fund has launched a new open-ended index fund that tracks the Nifty REITs & Realty Total Return Index (TRI). The fund will invest in NSE-listed REITs and realty sector…
Motilal Oswal Mutual Fund has launched a new open-ended index fund that tracks the Nifty REITs & Realty Total Return Index (TRI). The fund will invest in NSE-listed REITs and realty sector stocks based on the index's methodology. The New Fund Offer (NFO) opens on 25 September and closes on 9 October 2026.
The minimum investment is Rs 500, with additional investments in multiples of Re 1. The index includes at least 60% weight in REITs, with a single stock cap of 15% and a sponsor group cap of 32%. As of 31 August 2026, the index had 5 REITs and 10 realty companies. An exit load of 1% applies if units are redeemed within 15 days of allotment.
Indian Opinion Analysis
This fund gives retail investors a passive route to the listed real estate segment, which has traditionally been dominated by direct property purchases and unregulated private investments. REITs in India were formally introduced after SEBI's 2014 regulations, but retail participation has remained low due to limited awareness and high lot sizes in direct REIT units. The index's five-year CAGR of 17.29% has outperformed the Nifty 50 TRI's 8.32%, though past returns do not guarantee future performance. The quarterly rebalancing and sector cap structure aim to manage concentration risk. Investors will track how the fund's actual returns compare with the index after expenses and exit load costs.
Source: bazaar.businesstoday.in
This brief was synthesised by AI from the source linked above.
