HDFC Mutual Fund launches first ever NIFTY Realty Index Fund

HDFC NIFTY Realty Index Fund (NFO) is an open-ended index fund launched by HDFC Mutual Fund that aims to track the performance of the NIFTY Realty Index TRI. The minimum investment amount is Rs 100 and there is no entry load. The new fund offer is open for subscription from March 7, 2024, to March 21, 2024.

This is the first index fund reflecting the Nifty realty index.

Investment objective

The investment objective of the HDFC NIFTY Realty Index Fund (NFO) is to generate commensurate returns (before fees and expenses) with the performance of the NIFTY Realty Index TRI (Underlying Index), subject to tracking error.

This product is suitable for investors who are seeking commensurate Returns (before fees and expenses) with the performance of the NIFTY Realty Index (TRI) over the long term, subject to tracking error. Investment in equity securities covered by the NIFTY Realty Index.

Risk-o-meter: HDFC NIFTY Realty Index Fund – very high,

Funds Allocation

Benchmark

HDFC NIFTY Realty Index Fund will benchmark against the NIFTY Realty Index (TRI)

Fund Managers

Nirman Morakhia, Age: 39, Educational Qualification: BMS, MBA, Total Experience (in years): 15

Arun Agarwal, Age: 50, Educational Qualification: B. Com, CA, Total Experience (in years): 25

About Nifty Realty Index

The growth in foreign investor inflows into the real estate industry was a major factor in the real estate stock market’s boom, with Nifty Realty emerging as the best-performing index in 2023. The Nasdaq-listed investment management firm Colliers reports that during the six years from 2017 to 2022, India saw foreign institutional inflows into real estate totalling USD 26.6 billion, a threefold increase over the previous six-year period. The research states that 81% of the real estate investments made between 2017 and 22 were from outside sources.

After PSU banks, the index has increased by 125% in only a single year, making it the most valuable sector. The benchmark Nifty, however, increased by more than 26% in a single year. nearly the past five years, the index has increased by nearly 288%, while the Nifty has increased by 103%.

Realty index has increased by more than 147% from its 52-week low of Rs 370.65 formed in March 29, 2023.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.