On July 10, 2026, Edelweiss Mutual Fund submitted offer documents with SEBI for its Edelweiss Nifty REITs & Realty Index Fund, an open-ended scheme tracking the Nifty REITs & Realty Total Return Index (TRI). According to reports from Upstox, the NFO period and price details have not been announced yet, though the fund carries a 'very high' risk-o-meter rating. The fund is classified as an open-ended scheme tracking the Nifty REITs & Realty Total Return Index (TRI) and is designed for long-term investment horizons. As reported by Business Standard, Edelweiss MF is likely to be the first mover in launching REIT-focused mutual fund schemes, with a few other fund houses also considering launching passive REIT funds tracking either the Nifty REITs & Realty Index or the BSE REITs and Commercial Real Estate Index.
The scheme aims to generate returns that are in line with the performance of the Nifty REITs & Realty Total Return Index, subject to tracking errors. As reported by Upstox, 95-100% of assets will be allocated in securities covered under Nifty REITs and Realty index, while up to 5% will be allocated to debt and money market instruments. The fund is a passively managed index fund that will invest in securities in the same proportion as the index constituents, making it suitable for investors seeking exposure to the REITs and realty sector through a systematic, rules-based approach. According to Business Standard, the inclusion of REITs in equity indices and the introduction of dedicated schemes are expected to deepen liquidity, attract more flows and broaden investor participation in REITs, while offering MF investors greater diversification and a more tax-efficient route to investing in REITs.
During the NFO period, the minimum investment is ₹100 and subsequent investments must be in multiples of ₹1. According to Upstox, no exit load is applicable under the scheme. The allotment process will be completed within 5 business days from the closure of the NFO period after due reconciliation of fund receipts for all valid applications. The fund is classified as a FoFs (Overseas) scheme and is designed for long-term investment horizons, making it suitable for investors with a medium to long-term investment perspective. As reported by Business Standard, the scheme will offer diversified exposure across multiple REITs and real estate stocks in a single investment, with direct investments in REITs involving multiple layers of taxation, whereas investing through the fund provides a more tax-efficient structure.
The scheme is managed by Bharat Lahoti, who has 19 years of experience in the research function of financial services organizations, as reported by Upstox. The fund carries a 'very high' risk-o-meter rating, indicating significant market volatility potential. According to Business Standard, the inclusion of REITs in equity indices follows Sebi's decision to classify them as equity in January 2026. The two REIT-focused indices currently include real estate stocks because of the limited number of listed REITs in India, with REITs accounting for around 60-65% of the index weight, major constituents being Embassy Office Parks REIT, Brookfield India Real Estate Trust and Nexus Select Trust, while developers such as DLF, Lodha Developers, Prestige Estates Projects, Godrej Properties and The Phoenix Mills make up the rest. As reported by Edelweiss AMC, the fund can serve as a proxy for real estate investing by combining the income-generating characteristics of REITs with the growth potential of listed real estate companies, with investors seeking regular cash flows able to use systematic withdrawal plans (SWP) to create an income stream.
