Summary of this article
Edelweiss launches India's first Nifty REITs index fund.
The NFO opens August 5 with Rs 100 minimum.
Sebi regulations now allow mutual funds to hold REITs.
The year 2026 has been an eventful one for equity investors as multiple mutual fund houses have launched new schemes. Amid the rising investor interest in mutual fund investing, Edelweiss Mutual Fund has launched the Edelweiss Nifty REITs & Realty Index Fund.
Notably, the Index Fund is India's first open-ended mutual fund scheme, which seeks to replicate the returns generated by the Nifty REITs & Realty Total Return Index. The New Fund Offer for this thematic fund is scheduled to open for public subscription on August 5.
The NFO will close on August 19. Following the closure of the NFO, the scheme will reopen for continuous sale and repurchase at Net Asset Value (NAV) based prices from September 2.
Edelweiss Nifty REITs & Realty Index Fund: Key Details
The underlying benchmark for the scheme is the Nifty REITs & Realty Total Return Index. Here’s a look at some of the key details of the scheme:
Edelweiss Nifty REITs & Realty Index Fund: Minimum Subscription
Investors can subscribe to the NFO with a minimum application amount of Rs. 100 and in multiples of Re. 1 thereafter, with the scheme offering both Direct Plan and Regular Plan options.
Edelweiss Nifty REITs & Realty Index Fund: What Does The Fund Invest In
The portfolio allocation of the scheme is structured to invest 95 to 100 per cent of its net assets in securities which are a part of the Nifty REITs & Realty Index. Additionally, the fund may invest up to 5 per cent of its net assets in debt and money market instruments. As of June 30, 2026, the index’s constituents include listed REITs and several realty sector stocks.
The index is led by Brookfield India REIT with the highest weightage at 15.99 per cent, followed closely by Embassy Office Parks REIT at 15.11 per cent and Nexus Select Trust at 13.87 per cent. Knowledge Realty Trust holds a 7.92 per cent weightage, while DLF Ltd. accounts for 7.69 per cent of the index. Mindspace Business Parks REIT makes up 7.40 per cent, and Phoenix Mills. represents 7.03 per cent.
The portfolio is further diversified by Lodha Developers Ltd. at 5.12 per cent, Prestige Estates Projects Ltd. at 5.10 per cent, Godrej Properties Ltd. at 4.88 per cent, and Oberoi Realty Ltd. at 4.02 per cent. Rounding out the final allocations are Brigade Enterprises Ltd. with a weightage of 1.79 per cent, Anant Raj Ltd. at 1.54 per cent, Aditya Birla Real Estate Ltd. at 1.34 per cent, and Sobha Ltd. accounting for the remaining 1.19 per cent.
Edelweiss Nifty REITs & Realty Index Fund: Who Is It Ideal For
According to the scheme information document, the risk of the fund is categorised as very high. The scheme will be managed by Bharat Lahoti and Assistant Fund Manager Manasi Jalgaonkar. This index fund is ideal for investors seeking long-term capital appreciation and looking for returns that correspond with the performance of the Nifty REITs & Realty Total Return Index through a single, passively managed portfolio, according to the document.
Indirect vs Direct REIT Investing
Investors can invest in Real Estate Investment Trusts (REITs) directly. However, investing through the mutual fund route can potentially offer advantages compared to investing in physical commercial real estate or directly investing in REITs.
One of the key advantages is cost; investment in REITs via mutual funds lowers the barrier to entry, allowing investors to participate with a minimum initial application amount of just Rs. 100, and in multiples of Re. 1 thereafter.
The mutual fund route also reduces the illiquidity and high concentration risks that typically deter retail investors from physical real estate markets. The mutual fund framework also offers investors a tax advantage, as the regular distributions generated by the underlying REITs compound internally within the fund rather than being immediately paid out and taxed in the investor's hands.
Sebi’s Regulatory Catalyst
Edelweiss Nifty REITs & Realty Index Fund has been launched following a major change in Sebi’s regulatory framework, which recognised REITs as securities eligible for mutual fund investment.
On January 1, 2026, the market regulator reclassified REITs as equity instruments. Additionally, the market regulator permitted these instruments to be formally included in equity indices following a six-month stabilisation buffer, which ended on July 1. The regulatory developments paved the way for the creation of the underlying benchmark and ultimately made it possible for Edelweiss Mutual Fund to launch a REIT-focused scheme.
