Motilal Oswal Mutual Fund has announced the launch of its latest fund offer, Motilal Oswal Nifty REITs & Realty Index Fund , an open-ended scheme replicating/tracking the Nifty REITs & Realty Total Return Index (TRI), subject to tracking error, providing exposure to India's listed REITs and real estate companies.
The new fund offer or NFO of the fund will open for subscription on September 25 and will close on October 9.
The investment objective of the scheme is to provide returns that closely correspond to the total returns of the performance of the Nifty REITs & Realty Total Return Index, subject to tracking error.
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The fund house further said that real estate has traditionally been accessed only through direct property ownership — a relatively illiquid route that generally requires a large upfront investment. While REITs (Real Estate Investment Trusts) have gradually made income-generating real estate accessible in a listed, tradable form, and Realty stocks represent the developer side of the sector, listed real estate can provide an additional avenue for investors to access the sector.
The Motilal Oswal Nifty REITs & Realty Index Fund provides exposure to listed REITs and Realty companies through a transparent, index-based approach.
The performance will be benchmarked against Nifty REITs & Realty Total Return Index and will be managed by Swapnil Mayekar (Fund Manager – for Equity component) and Dishant Mehta (Associate Fund Manager - for Equity component) and Rakesh Shetty (Fund Manager -for the debt component).
The underlying index draws on NSE-listed REITs and eligible Realty-sector stocks, weighted by free-float market capitalisation, with REITs ≥60% of the index weight. Individual stock weights are capped at 15% and sponsor-group weights at 32%, with a maximum of 15 constituents.
The index is reviewed and rebalanced quarterly, in accordance with the index methodology. REITs and Realty stocks represent two distinct engines of the same real estate cycle. REITs — the "*landlords" — own completed, income-generating buildings and are required to distribute at least 90% of Net Distributable Cash Flow to unit holders. Realty companies — the "builders" — are engaged in developing and selling projects, with profits arriving in lump sums tied to launches, bookings and possession.
By combining both within one index, the fund provides exposure to listed REITs and Realty companies through a rules-based index approach. “Five landlords. Ten Builders. One basket” represents the current index composition of 5 REITs and 10 Realty-sector stocks as of 31-Aug-2026.
According to Motilal Oswal AMC research, the Nifty REITs & Realty TRI has delivered a 5-year CAGR of approximately 17.29%, compared to approximately 8.32% for the Nifty 50 TRI, with volatility broadly in line with the broader market.
India's listed real estate universe also remains in its early stages — only around 32% of REIT-eligible Grade-A office stock is listed today — pointing to meaningful headroom as more real estate assets get listed over time.
This product is suitable for investors seeking long-term capital growth and returns that correspond to the performance of the Nifty REITs & Realty Total Return Index, subject to tracking error.
An exit load of 1% will be redeemed if redeemed on or before 15 days from the allotment. The exit load will be nil, if redeemed after 15 days from the allotment.
"Real estate has always been part of the Indian investor's portfolio, but almost entirely through direct property — illiquid, capital-intensive, and hard to diversify. The Motilal Oswal Nifty REITs & Realty Index Fund brings together India's listed REITs and real estate companies in one rules-based basket, giving investors a transparent and liquid way to participate in this theme, without needing to pick individual stocks or time the cycle,” said Pratik Oswal, Chief of Business – Passive Funds, Motilal Oswal Asset Management Company.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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