HDFC Mutual Fund announces reopening of HDFC BSE REITS and Commercial Real Estate Index Fund for ongoing subscription

HDFC Mutual Fund today announced that it has re-opened the HDFC BSE REITS and Commercial Real Estate Index Fund post the completion of its NFO period. The fund was open for subscription from September 15 to September 17.

The fund is an innovative offering designed to provide investors with simple, convenient and diversified access to India’s growing commercial real estate ecosystem through a passive investment route and aims to track the BSE REITS and Commercial Real Estate Index, a first-of-its-kind benchmark that provides exposure to listed REITs alongside select commercial real estate companies with rental income–linked business models.

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The fund house further said that the filing marks an important milestone in broadening the investment universe available to Indian investors and making institutional-quality commercial real estate exposure more accessible through the mutual fund structure.

The scheme seeks to address a longstanding gap in investor portfolios by offering easy access to a unique asset class. REITs are globally recognized as a transparent and regulated way to participate in income-generating real estate assets, offering the potential for a combination of regular income and long-term capital appreciation.

Now, investors can gain exposure to professionally managed commercial real estate assets with a relatively small investment through the mutual fund format. The product is expected to appeal to investors seeking an additional source of portfolio diversification, given the relatively distinct return drivers of commercial real estate compared to traditional asset classes.

Beyond investor benefits, REITs play a vital role in the broader economy by enabling efficient monetization of completed real estate assets, attracting long-term institutional capital and supporting the creation of high-quality commercial real estate assets that helps to contribute to India’s economic growth, according to the fund house.

The launch of the HDFC BSE REITS and Commercial Real Estate Index Fund represents another step in our commitment to democratizing access to innovative investment opportunities for Indian investors and fulfil our mission to be the wealth creator for every Indian,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company.

“By providing this exposure via index fund format, we aim to offer investors an innovative and convenient way to participate in India’s long-term real estate growth opportunity. This latest offering demonstrates our commitment to delivering excellence in Index Solutions, leveraging our 20+ years of experience in passive strategies,” Munot further said.

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HDFC BSE REITS and Commercial Real Estate Index Fund is suitable for investors who are seeking returns that commensurate (before fees and expenses) with the performance of the BSE REITs and Commercial Real Estate Index (TRI), over long term, subject to tracking error and want investment in equity securities covered by the BSE REITs and Commercial Real Estate Index (TRI).

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