Edelweiss Mutual Fund is set to launch India's first REITs-oriented index fund, offering investors a new way to gain exposure to the listed real estate sector through a single mutual fund. Announcing the fund, Edelweiss Mutual Fund Managing Director and CEO Radhika Gupta described it as a simpler way to invest in real estate, saying the mutual fund structure addresses several challenges associated such as high capital requirements, illiquidity and concentration risk.

Gupta posted on social media platform X that, “You wanted a REIT focused MF? It is here! Announcing India’s first REIT oriented mutual fund. Real estate has always been one of India's favourite asset classes, but large capital requirements, illiquidity and concentration risk have made investors keep a distance………….We are very happy to make access to REITs easy, and do it first. Opening 5th August, a lot more details in the presentation.”


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The Edelweiss Nifty REITs & Realty Index Fund, which will open for subscription on August 5, will track the Nifty REITs & Realty Total Return Index. The fund will provide investors with exposure to a portfolio of listed Real Estate Investment Trusts (REITs) and leading real estate companies through a single investment.

According to Gupta, real estate has always been one of India's most preferred asset classes. However, many investors have stayed away from the sector because investing directly in property requires substantial capital, offers limited liquidity and often results in concentrated exposure.

She said the new index fund seeks to overcome these challenges by providing diversified access to India's listed real estate ecosystem through a mutual fund.

Gupta highlighted that the Nifty REITs & Realty Total Return Index has been designed to increase its allocation to REITs as more REITs get listed in India. Over time, the index has the potential to evolve into a 100% REIT-focused index, allowing investors to benefit from the growing listed REIT market.

She also pointed to the tax efficiency this new fund structure will offer. According to Gupta, distributions received from the underlying REITs can continue to compound within the fund instead of being paid out and taxed as regular distributions, making it a more efficient investment vehicle for long-term investors.

Gupta added that the fund will offer diversified exposure to an asset class that has already attracted significant institutional participation and continues to benefit from favourable long-term growth trends.

Edelweiss Nifty REITs & Realty Index Fund

Edelweiss Nifty REITs & Realty Index Fund will open for subscription from August 5 to August 19. The fund house describes this fund as - from skyline to portfolio, the new way to invest in Indian real estate.

The fund house believes that five factors are driving the upcycle in the real estate sector which includes - urbanisation & rising incomes, infrastructure led development, GCCs driving office demand, manufacturing & logistic expansion, and rising institutional capital.

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The fund aims to mirror the returns of Nifty REITs & Realty Total Return Index, subject to tracking error and at present, the composition of the index construct is nearly 60% in Indian REITs and 40% in realty stocks.

The fund will be managed by Bharat Lahoti and Manasi Jalgaonkar. The minimum NFO subscription amount will be Rs 100 and in multiples of Re 1 thereafter.

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