Motilal Oswal Mutual Fund (MOMF) has announced the launch of its latest passive offering, the Motilal Oswal Nifty REITs & Realty Index Fund. The open-ended scheme is designed to replicate the Nifty REITs & Realty Total Return Index (TRI), providing investors with a liquid, rules-based entry into India’s listed real estate sector.
While traditional real estate investments require massive upfront capital and suffer from illiquidity, this index fund blends income-generating REITs with growth-driven developer stocks.
The New Fund Offer (NFO) opens for subscription on September 25, 2026, and closes on October 9, 2026.
FUND ISSUE & INDEX SNAPSHOT
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| NFO Window | September 25, 2026 – October 9, 2026 |
| Underlying Index | Nifty REITs & Realty Total Return Index (TRI) |
| Minimum Investment | ₹500 (Lump sum and SIP options available) |
| Index Composition | 5 REITs ("Landlords") + 10 Realty Stocks ("Builders")|
| Exit Load | 1% if redeemed within 15 days; Nil after 15 days |
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Dual Growth Engines: How the Index Strategy Works
The underlying index tracks NSE-listed REITs and eligible realty-sector stocks weighted by free-float market capitalization:
- REITs Allocation: REITs are assigned a minimum weight of $\ge 60\%$ in the index. As “landlords,” REITs own completed, revenue-generating commercial properties and are legally required to distribute at least 90% of their Net Distributable Cash Flow to unit holders.
- Realty Developers: The remaining portion tracks developer stocks. As “builders,” these companies drive growth through project launches, bookings, and property sales.
- Index Risk Controls: Individual stock weights are capped at 15%, sponsor-group weights are capped at 32%, and the index contains a maximum of 15 constituents, rebalanced quarterly.
“Five landlords. Ten Builders. One basket.” — Current index composition as of August 31, 2026.
Historical Performance & Market Headroom
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 broader Nifty 50 TRI, with volatility remaining broadly comparable to the broader market.
5-YEAR COMPOUND ANNUAL GROWTH (CAGR)
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| Nifty REITs & Realty TRI: ~17.29% |
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| Nifty 50 TRI: ~8.32% |
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India’s listed REIT market currently commands over ₹2.1 lakh crore in market capitalization across six listed REITs, having distributed over ₹34,800 crore to unit holders since 2019 while offering an average yield of approximately 5.7%. Furthermore, with only 32% of Grade-A office stock currently listed, significant long-term growth potential remains.
Speaking on the launch, Pratik Oswal, Chief of Business – Passive Funds at Motilal Oswal AMC, noted:
“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.”
Key Scheme Details & Management Team
- Minimum Application: ₹500 and in multiples of ₹1 thereafter for both lump-sum and systematic investment plans (SIP).
- Exit Load Structure: 1% if redeemed or switched out on or before 15 days from allotment; zero exit load after 15 days.
- Fund Management Team: Managed by Swapnil Mayekar and Dishant Mehta (Equity portion) alongside Rakesh Shetty (Debt portion).
