Kotak Mahindra Asset Management Company (KMAMC) has launched the Kotak Nifty Realty Index Fund, an open-ended passive scheme tracking the Nifty Realty Index. According to reports from Mint, the New Fund Offer (NFO) opened on October 26, 2026, and will close on November 9, 2026. The fund offers investors access to India's evolving real estate opportunity through a passive investment strategy linked to the Nifty Realty Index.
As reported by Mint, investors can invest a minimum amount of ₹1,000 during the NFO period, with any amount thereafter subject to terms and conditions specified in the Scheme Information Document. The fund comprises 10 NSE-listed real estate stocks as of September 30, 2026, and is rebalanced semi-annually. The scheme is classified as 'very high risk' and investors are advised to consult financial experts before making investment decisions.
According to Mint, India's real estate sector is positioned to become a US$1 trillion market, supported by strong residential demand, commercial expansion, infrastructure spending and urbanisation. The opportunity spans residential, commercial, retail, hospitality and industrial warehousing segments. The Nifty Realty Index has demonstrated strong performance with 14.14% CAGR over 3 years, 10.91% CAGR over 5 years, and 15.84% CAGR over 10 years. However, past performance may not be sustained in future and KMAMC does not guarantee returns.
As reported by Mint, the fund is managed by Satish Dondapati, Jeetu Valechha Sonar and Abhishek Bisen. The investment objective is to provide returns corresponding to the total returns of securities as represented by the underlying index, subject to tracking errors. The fund seeks to replicate the index, offering investors a straightforward passive route to participate in the listed real estate sector while navigating the sector's cyclical nature and stock-specific risks.
