Motilal Oswal MF Launches Nifty REITs & Realty Index Fund
New Delhi, September 24, 2026: Motilal Oswal Mutual Fund has announced the launch of the “Motilal Oswal Nifty REITs & Realty Index Fund,” an open-ended scheme replicating the Nifty REITs & Realty Total Return Index (TRI), subject to tracking error. The New Fund Offer (NFO) opens on September 25, 2026, and will close on October 9, 2026, it said in a press release.
The fund provides exposure to India’s listed real estate ecosystem by combining Real Estate Investment Trusts (REITs) and realty development companies through a rules-based framework. The underlying index draws on NSE-listed REITs and eligible realty-sector stocks weighted by free-float market capitalization, with REITs comprising at least 60% of the index weight. Individual stock weights are capped at 15% and sponsor-group weights at 32%, with a maximum of 15 constituents. As of August 31, 2026, the index composition features five REITs and ten realty-sector stocks.
According to research from Motilal Oswal AMC, the Nifty REITs & Realty TRI delivered a 5-year CAGR of approximately 17.29%, compared to 8.32% for the Nifty 50 TRI. India’s listed REIT universe currently represents around 32% of REIT-eligible Grade-A office stock, with six listed REITs commanding a market capitalization exceeding Rs 2.1 lakh crore and having distributed over Rs 34,800 crore to unit holders since 2019.
Pratik Oswal, Chief of Business – Passive Funds at Motilal Oswal Asset Management Company, said, “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.”
The minimum application amount during the NFO and on an ongoing basis is set at Rs 500, with multiples of Rs 1 thereafter. An exit load of 1% applies if units are redeemed on or before 15 days from allotment, while no exit load is charged after 15 days. The scheme will be managed by Swapnil Mayekar, Fund Manager, and Dishant Mehta, Associate Fund Manager, for the equity component, and Rakesh Shetty, Fund Manager, for the debt component.
