HDFC Asset Management Company has launched the HDFC BSE REITS and Commercial Real Estate Index Fund NFO, an open ended scheme passively tracking the BSE REITS and Commercial Real Estate Index (TRI). It opens on 15-09-2026 and closes on 17-09-2026.
The scheme aims to mirror this index’s returns, before fees and expenses, by holding the same listed REITs and commercial real estate companies in similar proportion. There is no assurance the objective will be met.
Investors wanting exposure to India’s listed REITs and commercial property businesses, without picking individual names themselves, may find this launch worth a look. Just Rs 100 is needed to start.
HDFC BSE REITS and Commercial Real Estate Index Fund NFO details
Fund name | |
Fund type | Open ended, passively managed index fund |
Category | Index Fund |
Nature of scheme | Replicates/tracks the Underlying Index |
Benchmark | BSE REITS and Commercial Real Estate Index (TRI) |
Fund managers | Nandita Menezes and Arun Agarwal (co-fund manager) |
NFO opens | 15-09-2026 |
NFO closes | 17-09-2026 |
Allotment/Reopening date | Not available; reopens for ongoing purchase and redemption after allotment |
Minimum investment | Rs 100, and any amount thereafter |
Additional investment | Rs 100, and any amount thereafter |
SIP amount | Not specified separately |
NAV | Rs 10 per unit during the NFO |
Stamp duty | 0.005% on allotment; 0.015% on transfer of units |
Entry load | Nil |
Exit load | 0.50% within 3 months of allotment; nil after |
HDFC Asset Management Company details
AMC name | HDFC Asset Management Company Limited |
Assets under management | ₹9.61 to ₹9.86 lakh crore |
Website | |
Registered office | Not available |
Contact number | 1800 3010 6767 (toll free) |
Source: AMFI India, New fund offer: HDFC BSE REITS and Commercial Real Estate Index Fund
What has HDFC AMC launched?
HDFC AMC has launched an open ended index fund built around the BSE REITS and Commercial Real Estate Index (TRI). This index brings together listed REITs, short for real estate investment trusts, with companies from India’s commercial real estate sector.
A REIT works a little like a fund for property: it pools investor money, holds income generating buildings such as office parks and malls, and passes on the rental income and gains to unit holders.
This scheme will not pick stocks on its own. As an index fund, it simply holds the same securities as its Underlying Index, in roughly the same weight. Units are priced at Rs 10 each during the NFO, and 95 to 100 percent of assets go into index securities, with a small remainder in debt and money market instruments for liquidity.
How does the HDFC BSE REITS and Commercial Real Estate Index Fund strategy work?
Being passive, the process is about replication, not stock picking.
Step | What happens? |
1 | BSE Index Services decides which REITs and companies belong in the index, and their weight. |
2 | HDFC AMC builds a portfolio mirroring this composition as closely as possible. |
3 | NFO money and later inflows buy the same securities, in the same proportion. |
4 | On index reconstitution, the fund manager rebalances within 7 calendar days. |
5 | Any security allotted outside the index via corporate action is sold within 7 calendar days. |
6 | Up to 5% sits in debt and money market instruments for smooth subscriptions and redemptions. |
7 | The AMC tracks the gap versus the index (tracking error) and works to keep it low. |
Let’s understand through an example
Say an investor named Priya, based in Ahmedabad, invests Rs 10,000 during the NFO. At Rs 10 per unit, she is allotted 1,000 units.
Her money buys a small slice of every REIT and real estate company in the index, in roughly the same proportion as the index itself. She does not choose which individual name to back.
If the index later drops one constituent, adds another, or reweights them, the fund follows suit within days, and Priya’s holding shifts automatically, without her placing any order.
Portfolio allocation
Per the SID:
Instrument | Minimum allocation | Maximum allocation |
Securities covered by the BSE REITS and Commercial Real Estate Index (TRI) | 95% | 100% |
Debt securities, money market instruments and units of debt mutual fund schemes | 0% | 5% |
Investment strategy
Tracking methodology and rebalancing: the fund holds its Underlying Index’s securities in the same proportion, rebalancing within 7 calendar days of any change to the index.
Stock selection: there is none. HDFC AMC does not apply its own view on which REITs or real estate companies to favour; the index decides that.
Risk controls: concentration and swings will largely match the index, as the fund manager keeps cash minimal to control tracking error.
Liquidity management: up to 5% may sit in debt and money market instruments. The scheme may lend securities within SEBI limits, but will not short sell.
Potential benefits of the HDFC BSE REITS and Commercial Real Estate Index Fund
Single window access to REITs and commercial real estate | Exposure to India’s listed REIT and realty businesses without researching individual names |
Low entry point | Rs 100 minimum makes it accessible to first time investors |
Transparent, rule based investing | Holdings mirror a published index, so the logic is easy to follow |
No entry load | Investors do not pay a charge to enter the scheme |
Key risks
Risk | What does it mean? |
Market risk | REIT and real estate company values can fall with broader market or sector conditions. |
Concentration risk | The fund invests in a single sector, so returns are tied closely to how real estate and REITs perform. |
Tracking error | Returns may differ slightly from the index due to fees, expenses and cash held for liquidity. |
Liquidity risk | Some REIT units can trade less actively than large cap stocks, which may affect rebalancing. |
Who may consider this fund?
Investors seeking real estate exposure without buying property directly | Offers indirect participation through listed REITs and realty companies |
Investors with a 5 year plus horizon and no near term liquidity need | Real estate and REIT businesses can move in cycles over shorter periods |
Investors who hold a diversified equity fund and want a satellite allocation | Being sector concentrated, it suits a smaller holding, not a core portfolio |
Who may not find it suitable?
Investors seeking broad, diversified equity exposure | This fund is concentrated in REITs and real estate, not the wider market |
Investors who may need money back within 3 months | A 0.50% exit load applies to redemptions within 3 months of allotment |
Investors uncomfortable with sector specific swings | May want to also discuss SIF advisory with their advisor |
Comparison with traditional investment options
Option | Risk | Liquidity and horizon |
Fixed Deposit | Low | Fixed tenure; premature exit usually allowed with penalty |
Debt Mutual Fund | Low to moderate | Open ended; shorter to medium horizons |
Hybrid Fund | Moderate | Open ended; medium term goals |
Equity Mutual Fund | Moderately high to high | Open ended; 5 years or more |
This New Fund | High, sector concentrated | Open ended after NFO; 5 year plus horizon, no near term liquidity need |
This comparison informs, not ranks. The right mix depends on an investor’s own goals and existing portfolio.
HDFC BSE REITS and Commercial Real Estate Index Fund Review by Zenith Finserve
This fund suits investors wanting measured, indirect exposure to India’s listed REIT and commercial real estate space, comfortable with a single sector holding rather than a diversified core investment. It fits best as a smaller, satellite allocation, not a core portfolio substitute.
Given the sector concentration and real estate’s cyclical nature, this suits a 5 year plus horizon, where short term swings matter less. Investors with an investment plan should weigh how it fits alongside existing allocations. Evaluate your own goals before applying; this is Zenith’s institutional assessment, not a recommendation to 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
Edelweiss Nifty REITs & Realty Index Fund NFO: tracked the Nifty REITs & Realty index; a comparable sector launch, same Rs 100 minimum, nil entry or exit load.
Navi Nifty REITs & Realty Index Fund NFO: another REIT and realty focused index fund launched earlier in September 2026, a similar low cost structure.
Mirae Asset BSE Information Technology Index Fund NFO: tracks a different BSE sector index, useful for comparing how concentrated sector funds carry a distinct risk profile.
Frequently Asked Questions
What is the HDFC BSE REITS and Commercial Real Estate Index Fund NFO?
A new fund offer from HDFC Asset Management Company for an open ended index fund tracking the BSE REITS and Commercial Real Estate Index (TRI).
When does the HDFC BSE REITS and Commercial Real Estate Index Fund NFO open and close?
It opens on 15-09-2026 and closes on 17-09-2026.
What index does this fund track?
The BSE REITS and Commercial Real Estate Index (TRI), which includes listed REITs and commercial real estate companies.
Is HDFC BSE REITS and Commercial Real Estate Index Fund NFO good to invest in?
That depends on your own goals, horizon and comfort with sector concentration. This is not a recommendation; assess suitability individually.
What is the minimum investment amount?
Rs 100, both for the initial investment and any additional purchase.
What is the exit load for this fund?
0.50% if redeemed or switched out within 3 months of allotment; nil after that.
Who manages the HDFC BSE REITS and Commercial Real Estate Index Fund?
Nandita Menezes and Arun Agarwal, as named in the SID.
How is this different from a broad market index fund such as a Nifty 50 index fund?
A Nifty 50 fund spreads money across sectors; this fund concentrates in one, so it carries higher sector specific swings.
Can I start a SIP in this fund?
The SID does not specify a separate SIP amount. Check with the AMC or your distributor once the scheme reopens after the NFO.
HDFC BSE REITS and Commercial Real Estate Index Fund review: what should investors know before applying?
It is sector concentrated and suited to longer horizons, not a diversified core holding. See more NFO coverage on Zenith’s news section or explore mutual fund advisory to see how it fits your plan.
