NFO Alert: Edelweiss Mutual Fund launches India's first REIT-based Index Fund

Edelweiss Mutual Fund has announced the launch of Edelweiss Nifty REITs & Realty Index Fund, India's first REIT-based Index Fund.

The new fund offer or NFO of the fund is open for subscription and will close on August 19.

The open-ended index scheme seeks to replicate the Nifty REITs & Realty Total Return Index (TRI), subject to tracking error. The fund provides investors with exposure to India's listed real estate ecosystem through a diversified passive investment strategy by investing in listed Real Estate Investment Trusts (REITs) and listed real estate stocks.


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The underlying index currently maintains a minimum 60% allocation to listed REITs, with the remaining allocation comprising listed real estate companies. The index methodology is constructed in such a way that the allocation to REITs can increase upto 100% as the eligible listed REIT universe expands.

The launch comes at a time when India’s real estate sector is being supported by long-term structural trends, including urbanisation, infrastructure development, demand for Grade A commercial assets from Global Capability Centres, and the expansion of manufacturing and logistics. India’s listed REIT market has also evolved with regulatory developments, growing investor participation and the inclusion of REITs in broader market indices.

The Nifty REITs & Realty Total Return Index combines income-generating listed REITs with listed real estate companies, enabling investors to access the income-generating potential of commercial real estate assets as well as the growth potential of listed real estate businesses through a single passive investment solution. The index follows a transparent, rules-based methodology with Quarterly Reviews to maintain diversified exposure across the listed real estate universe.

The scheme 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.

REITs have emerged as an increasingly accessible way to participate in commercial real estate by providing exposure to professionally managed, income-generating assets through an exchange-traded structure. Compared with direct real estate ownership, they offer greater liquidity, lower entry barriers, professional management and diversification across assets, tenants and geographies. The fund combines these characteristics with the convenience of a mutual fund structure.

The scheme is suitable for investors seeking long-term capital appreciation by investing in securities covered by the Nifty REITs & Realty Total Return Index (TRI), subject to tracking error. Investors should consult their financial advisors to determine whether the scheme is suitable for their investment objectives and risk profile.

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"Real estate has long been an important asset class for Indian investors, but access has often been limited by high capital requirements and operational complexities. REITs have helped democratize access to quality, income-generating real estate assets through a regulated and transparent structure. With India’s first REIT-based index fund, we are making it even simpler for investors to gain diversified exposure to this asset class through a low-cost and accessible investment solution. We believe this fund expands investment opportunities and helps investors build more diversified portfolios,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.

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