Motilal Oswal MF launches Nifty REITs & Realty Index Fund; NFO opens September 25

Motilal Oswal Mutual Fund (MOMF) on Thursday announced the launch of the Motilal Oswal Nifty REITs & Realty Index Fund, an open-ended index fund that will track the Nifty REITs & Realty Total Return Index (TRI), subject to tracking error.

The new fund offer (NFO) will open on September 25 and close on October 9, 2026. The scheme will provide investors exposure to India's listed real estate ecosystem through a combination of real estate investment trusts (REITs) and realty companies.

The underlying index comprises NSE-listed REITs and eligible realty-sector stocks, weighted by free-float market capitalisation. REITs will account for at least 60% of the index weight, while individual stock weights are capped at 15% and sponsor-group weights at 32%. The index can have a maximum of 15 constituents and will be reviewed and rebalanced quarterly.

Index has delivered 17.29% 5-year CAGR, says AMC

According to Motilal Oswal AMC research, the Nifty REITs & Realty TRI has delivered a five-year compound annual growth rate (CAGR) of approximately 17.29%, compared with around 8.32% for the Nifty 50 TRI. The AMC said the index's volatility has been broadly in line with the broader market.

As of August 31, 2026, the index comprised five REITs and 10 realty-sector stocks. REITs represent the income-generating side of the real estate market, while realty companies are engaged in developing and selling properties.

India's listed REIT market has also expanded since its launch, with six listed REITs having a combined market capitalisation of more than ₹2.1 lakh crore. They have distributed more than ₹34,800 crore to unit holders since 2019, according to the AMC.

The fund's investment objective is to provide returns that closely correspond to the total returns of the Nifty REITs & Realty TRI, subject to tracking error. The minimum lump-sum investment during the NFO and on an ongoing basis is ₹500, in multiples of ₹1 thereafter. Multiple SIP frequencies are also available.

The fund will levy an exit load of 1% if units are redeemed on or before 15 days from allotment, while there will be no exit load after 15 days.

"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," said Pratik Oswal, Chief of Business – Passive Funds, Motilal Oswal Asset Management Company. "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," he added.

The fund will be managed by Swapnil Mayekar and Dishant Mehta for the equity component, and Rakesh Shetty for the debt component.