Edelweiss Asset Management Limited has launched the Edelweiss Nifty REITs & Realty Index Fund, an open-ended index fund. The New Fund Offer (NFO) opens on 05-08-2026 and closes on 19-08-2026.
The fund tracks the Nifty REITs & Realty Total Return Index. That index holds a mix of listed Real Estate Investment Trusts, called REITs, and shares of real estate companies. A REIT owns rent-earning buildings, such as offices and malls, and passes most of the rent to its investors.
Edelweiss describes this as India’s first index fund built around REITs and realty together. It lets you take exposure to listed real estate through a mutual fund, without buying property yourself. Returns are not guaranteed and move with the market.
Edelweiss Nifty REITs & Realty Index Fund NFO details
Item | Detail |
Fund name | |
Fund type | Open-ended index fund |
Category | Index fund (equity, real estate theme) |
Nature of scheme | Passive, replicates the Nifty REITs & Realty TRI |
Benchmark | Nifty REITs & Realty Total Return Index |
Fund managers | Bharat Lahoti; Manasi Jalgaonkar (assistant) |
NFO opens | 05-08-2026 |
NFO closes | 19-08-2026 |
Allotment / re-opening | Within 5 business days of NFO closure |
Minimum investment | Rs 100, then in multiples of Re 1 |
Additional investment | Rs 100, then in multiples of Re 1 |
SIP amount | Not available |
NAV during the NFO | Rs 10 per unit |
Riskometer | Very High |
Stamp duty | 0.005% on purchases |
Entry load | Nil (not permitted in India) |
Exit load | Nil |
Expense ratio | Up to 0.90% a year |
Edelweiss Asset Management Limited: AMC details
Item | Detail |
AMC name | Edelweiss Asset Management Limited |
Assets under management | ₹1.78 lakh crore |
Website | |
Registered office | Edelweiss House, Off C.S.T Road, Kalina, Mumbai 400098 |
Contact number | 1800 425 0090 |
Source: AMFI India, New fund offer | Edelweiss Nifty REITs & Realty Index Fund
What has Edelweiss launched?
This is a passive index fund. It does not try to beat the market; it copies one index, the Nifty REITs & Realty Total Return Index, as closely as it can. About 95% to 100% of your money goes into the index’s securities, with up to 5% in debt and cash for day-to-day needs.
Because it is passive, there is no manager picking stocks. The job is to hold the same securities as the index, in the same weights, and adjust when the index changes. For a refresher on how mutual funds work, see Zenith’s guide to mutual funds in India.
The index is a blend: at least 60% in listed REITs, the rest in real estate company shares such as developers. From 1 January 2026, REITs count as equity in Indian indices, so this scheme is classified as an equity fund.
How the Edelweiss REITs & Realty index strategy works
The process is rule-based. The fund follows the index, not a manager’s view. Here is the flow.
Step | What happens |
1 | You invest during the NFO at Rs 10 per unit. |
2 | The fund pools the money and buys the securities in the index. |
3 | At least 60% goes into REITs, the rest into realty stocks. No security can go above 15%. |
4 | The index is reviewed each quarter (March, June, September, December), and the fund rebalances to match. |
5 | If a new REIT qualifies, it can replace the smallest holding, since the index keeps at most 15 securities. |
6 | A small slice stays in debt or cash to meet redemptions. |
7 | The NAV then moves with the index, minus costs. That gap is tracking error. |
Let us understand with an example
Say you invest Rs 10,000 during the NFO at Rs 10 per unit. You get 1,000 units. That money buys the index’s holdings in their set weights, roughly Rs 6,000 into REITs and Rs 4,000 into realty shares. As the index rises or falls, your NAV follows, minus fees. This only shows the mechanism, not a likely return.
Portfolio allocation of the index
The fund mirrors the index. As on 30-06-2026, the split was 60.3% REITs and 39.7% realty. The largest holdings:
Security | Type | Weight |
Brookfield India Real Estate Trust | REIT | 16.0% |
Embassy Office Parks REIT | REIT | 15.1% |
Nexus Select Trust | REIT | 13.9% |
Knowledge Realty Trust | REIT | 7.9% |
Mindspace Business Parks REIT | REIT | 7.4% |
DLF Ltd | Realty equity | 7.7% |
Phoenix Mills Ltd | Realty equity | 7.0% |
Lodha Developers Ltd | Realty equity | 5.1% |
These weights change at each quarterly rebalance, so the mix shifts over time.
Investment strategy behind the fund
The strategy is to track, not to select. The fund holds the same securities as the index, in the same proportion, and takes no active bets on any builder or REIT. Tracking error is the small gap between the fund’s return and the index return, caused by fees, cash and rebalancing timing. A well-run index fund keeps it low, but it never fully disappears.
The index has built-in limits on concentration. No security can cross 15%, one corporate group is capped at 32%, and at least 60% must stay in REITs. For liquidity, the fund keeps a small debt and cash sleeve, and being open-ended, you can buy or redeem at NAV. There is no exit load.
Potential benefits of the fund
Potential benefit | Why it matters |
Listed real estate exposure | Property exposure without owning or managing it. |
Diversification in one fund | REITs and realty shares across many buildings, cities and tenants. |
Low entry amount | You can start with Rs 100. |
Low cost, passive | Expense ratio capped at 0.90% a year. |
Liquidity | Redeem at NAV instead of finding a property buyer. |
Equity taxation | Treated as an equity fund for tax. |
Key risks to weigh
Risk | What it means |
Market risk | Prices of REITs and realty shares can fall, and the NAV with them. |
Sector concentration risk | The whole fund sits in one sector. A property slump hits it all. |
Interest rate risk | REIT prices often fall when interest rates rise. |
Tracking error | The fund may not match the index exactly. |
Liquidity risk | Some underlying REITs and stocks trade less often. |
Short index history | The index started in March 2026, so the record is limited. |
Who may consider this fund
Investor type | Why it may fit |
Wants listed real estate exposure | Property-linked returns without owning a flat, shop or office. |
Looking to diversify | Adds an asset that moves differently from broad equity and debt, over a 5-year-plus horizon. |
Comfortable with very high risk | Accepts sharp swings and single-sector concentration for long-term growth. |
Prefers passive investing | Likes a low-cost, rule-based fund over an active one. |
If unsure whether it fits your plan, talk it through with Zenith’s mutual fund advisors.
Who may not find it suitable
Investor type | Why it may not fit |
Wants regular payouts | Income compounds inside the fund. It is not paid out as rent. |
Short-term investor | Real estate is cyclical, so a short holding raises the risk of loss. |
Needs capital stability | The Very High rating means the value can fall sharply. |
Wants active management | It only tracks an index and will not try to dodge a downturn. |
Comparison with traditional investment options
Feature | Fixed deposit | Debt mutual fund | Hybrid fund | Equity mutual fund | This fund |
Risk | Low | Low to moderate | Moderate | High | Very high |
Return potential | Low, fixed | Low-mod | Moderate | High | High |
Volatility | None | Low | Moderate | High | High |
Liquidity | Low-mod | High | High | High | High |
Horizon | Short-med | Short-med | Medium | Long | Long |
Suitable investor | Safety | Income | Balanced | Growth | Realty tilt |
Edelweiss Nifty REITs & Realty Index Fund review by Zenith Finserve
This is a focused, single-sector fund. It suits an investor who already holds a core of equity and debt and wants a small satellite allocation to listed real estate, over five years or more. It is not a first fund for a new investor. The risk sits at the top of the scale, since everything is in one sector and REIT prices react to interest rates. The upside is diversification, as real estate can move differently from a plain equity or debt portfolio.
Index past performance (not the fund): as on 30-06-2026, the Nifty REITs & Realty TRI showed a 3-year return of about 19.1% a year and a since-inception return, from July 2021, of about 17.6% a year (source: NSE). The fund is new and has no record yet. Past performance may or may not be sustained.
Weigh your suitability, horizon and liquidity needs before you invest.
How Zenith Finserve can help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith
Axis Nifty50 Equal Weight Index Fund NFO: another passive index fund, but on the Nifty 50, not real estate.
HDFC Nifty Metal ETF FOF NFO: also a passive, single-sector route, into metals rather than realty.
Jio BlackRock Prism Hybrid Long Short Fund NFO: a hybrid SIF that can hold REITs and InvITs among many assets.
Also read: TRUSTMF Large & Mid Cap Fund NFO, a recent active equity launch, for contrast.
Frequently asked questions
What is the Edelweiss Nifty REITs & Realty Index Fund?
A passive index fund tracking the Nifty REITs & Realty TRI, giving exposure to listed REITs and realty shares.
When does the NFO open and close?
It opens on 05-08-2026 and closes on 19-08-2026.
What does the fund invest in?
About 95% to 100% in the index’s REITs and realty shares, with up to 5% in debt or cash.
What is the minimum investment?
From Rs 100 during the NFO, then in multiples of Re 1.
Is the Edelweiss Nifty REITs & Realty Index Fund NFO good to invest in?
It depends on your goals, horizon and risk comfort. It is a Very High risk, single-sector fund best suited to a long horizon and a satellite role in a wider portfolio.
Does the fund pay me rent or regular income?
No. Income compounds inside the fund and is realised only when you redeem.
What is tracking error?
The small gap between the fund’s return and the index return, from fees, cash and rebalancing.
How is this fund taxed?
As REITs now count as equity, it is taxed as an equity fund.
Is there an exit load, and how risky is it?
The exit load is nil. The riskometer rating is Very High, in line with its benchmark.
Who manages the fund?
Bharat Lahoti, with Manasi Jalgaonkar as assistant fund manager.
