Motilal Oswal Mutual Fund has opened the Motilal Oswal Nifty REITs & Realty Index Fund NFO, an open-ended index scheme from Motilal Oswal Asset Management Company Limited.
The offer runs from 25-09-2026 to 09-10-2026 at Rs 10 per unit.
The scheme copies the Nifty REITs & Realty Total Return Index, buying the same shares and REIT units in the same proportion, without trying to beat it. For anyone wanting a stake in India’s listed property businesses without picking names, that is the appeal.
Motilal Oswal Nifty REITs & Realty Index Fund NFO details
Particulars | Details |
Fund name | |
Fund type | Open-ended index fund |
Category | Other schemes, index fund |
Nature of scheme | Replicates its benchmark index |
Benchmark | Nifty REITs & Realty Total Return Index |
Fund managers | Swapnil Mayekar, Dishant Mehta, Rakesh Shetty |
NFO opens | 25-09-2026 |
NFO closes | 09-10-2026 |
Allotment date | Not available |
Minimum investment | Rs 500, multiples of Re 1 |
Additional investment | Rs 500, multiples of Re 1 |
SIP amount | Rs 100 daily, Rs 500 monthly, Rs 1,500 quarterly |
NAV during NFO | Rs 10 per unit |
Plans and options | Regular and Direct, growth only |
Listing | Not proposed to be listed |
Stamp duty | 0.005% of purchase value |
Entry load | Nil |
Exit load | 1% within 15 days of allotment, nil after |
Motilal Oswal Mutual Fund: AMC details
Particulars | Details |
AMC name | Motilal Oswal Asset Management Company Limited |
Assets under management | ₹261.33 crore as of September 2026 |
Website | |
Registered office | 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Prabhadevi, Mumbai 400025 |
Contact number | +91 8108622222, +91 22 40548002 |
Source: AMFI India, New fund offer: Motilal Oswal Nifty REITs & Realty Index Fund
What has Motilal Oswal Mutual Fund launched?
This is a passive equity index fund. Passive means the fund manager does not choose which shares look attractive. The index decides and the fund follows.
The index holds two kinds of business. First, REITs, or real estate investment trusts. A REIT owns rent-paying commercial property such as offices and malls, lists its units on the exchange, and hands most of the rent it collects to unit holders. You buy a unit the way you buy a share, not a flat.
Second, realty companies, meaning listed developers that build and sell projects.
So one holding gives you a slice of both the rent-collecting and the building side of Indian property. The objective is returns closely matching the index total return, subject to tracking error.
Between 95% and 100% sits in index constituents, the rest in debt and money market instruments.
Also read: Navi Nifty REITs & Realty Index Fund NFO
How does the index fund strategy work?
The mechanic is simple to describe and fiddly to run. NSE Indices sets the list and the weights, and the fund matches it.
Step | What happens? |
1 | NSE Indices publishes the index constituents and weights |
2 | The fund buys those REIT units and realty shares in proportion |
3 | Up to 5% stays in debt and money market instruments for liquidity |
4 | On reconstitution, the fund trades to match the new list |
5 | Corporate actions such as bonus or rights issues are mirrored |
6 | If index shares are unavailable, derivatives stand in, capped at 20% |
7 | Drift outside the allocation band is fixed within 7 calendar days |
Understanding the fund through an example
Picture a small index with four members, two REITs and two realty companies, weighted 30%, 25%, 25% and 20%.
Invest Rs 10,000 and the fund puts about Rs 3,000 into the first, Rs 2,500 each into the next two, Rs 2,000 into the last.
Now say NSE Indices drops one realty company at the next review and adds another. The fund sells the first and buys the second at the specified weight. Nobody at the AMC judges whether the newcomer is any good. The rule book decides.
Portfolio allocation of this index fund
Instrument | Minimum | Maximum |
Constituents of the Nifty REITs & Realty Index | 95% | 100% |
Debt and money market instruments | 0% | 5% |
The scheme will not invest in InvITs, overseas securities, securitised debt, AT1 or AT2 bonds, unrated debt or credit default swaps.
Investment strategy of this index fund
Because the scheme is passive, there is no stock selection story here. The manager’s job is accuracy, not judgement.
The number that matters is tracking error, the gap between what the index does and what the NAV does. Fees, idle cash and trading costs widen it.
Scheme documents say it should stay within 2% a year in normal conditions, published daily on the AMC and AMFI websites.
The scheme may also lend securities, up to 20% of net assets.
Potential benefits of this NFO
Potential benefit | Why does it matter? |
Rule-based holdings | The index decides holdings, leaving no room for manager bias |
Property exposure without a purchase | Commercial rent and developer growth from Rs 500 |
Daily liquidity | Redeem on any business day, proceeds in 3 working days |
Two return sources | Rent-linked REITs alongside growth-linked realty companies |
Published tracking data | Disclosed daily, so you can see how closely the index is followed |
What can affect returns in this fund
Factor | What does it mean? |
Index movement | The fund holds index members however expensive they look, so a fall drags the NAV down |
Sector concentration | All in one sector, so a property slowdown has nowhere to hide |
Tracking error | Costs and cash keep returns from matching the index exactly |
Interest rate movement | REIT and realty valuations react to rate changes |
Liquidity of constituents | A thinly traded index member is harder to trade at the intended price |
Who may consider this REITs and realty index fund NFO?
Investor type | Why it may fit |
Holds diversified equity funds already | It works as a small satellite holding beside a core portfolio |
Wants property exposure, not property | Nothing to register or maintain, and Rs 500 starts it |
Backs Indian property long term | A 2033 onwards goal gives room for a full cycle |
Prefers rules to discretion | Holdings follow a published index, not a manager’s view |
NRIs tracking Indian real estate | Property participation without owning assets from abroad |
Who may not find this fund suitable?
Investor type | Why it may not fit |
A first-time investor | A single-sector fund is a demanding first buy. A diversified fund is the usual start |
A goal inside 3 years | Sector returns are lumpy, and a short window may end on a weak patch |
Needs regular income | Only the growth option is offered, no IDCW payout |
Already heavy in property | A flat and this fund lean the same way |
Wants to trade intraday | Units are not listed, so deals happen at day end NAV |
Comparison with traditional investment options
Parameter | Fixed deposit | Debt mutual fund | Hybrid fund | Equity mutual fund | This new fund |
Return potential | Fixed, known upfront | Modest | Moderate | Market linked | Market linked, one sector |
Price movement | None | Low | Moderate | High | High and concentrated |
Liquidity | On maturity | High | High | High | High, 15 day load |
Suggested holding period | Chosen upfront | 1 to 3 years | 3 to 5 years | 5 years plus | 7 years plus |
Typically suited to | Capital safety | Parking surplus | Balanced goals | Long-term wealth | Satellite exposure |
Motilal Oswal Nifty REITs & Realty Index Fund review by Zenith Finserve
This fund has a narrow job. It holds one sector, and the scheme documents do not pretend otherwise. That makes it a satellite allocation, the kind that sits at 5% to 10% of an equity portfolio, not the base of one.
The horizon follows. Property cycles in India run long, and a sector index can go nowhere for years before it moves. Our reading is that this suits money earmarked for 2033 or later. Saving for a 2029 down payment? Wrong vehicle.
Tracking error is the number to watch once the fund has a record, and it is published daily. Until then this is an untested copy of a young index. Check how it fits your goals and existing holdings before deciding.
How Zenith Finserve can help
At Zenith Financial Management, 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.
More on how we work: our about us page, our comprehensive financial management guide and what our clients say.
Similar NFOs on Zenith
- Navi Nifty REITs & Realty Index Fund NFO: same index, so it comes down to cost and tracking accuracy.
- Edelweiss Nifty REITs & Realty Index Fund NFO: the first fund on this index in India.
- HDFC BSE REITs and Commercial Real Estate Index Fund NFO: a BSE index, different mix of REITs and developers.
- Kotak Nifty Capital Markets Index Fund NFO: another single-sector passive fund, for comparison.
Motilal Oswal Nifty REITs & Realty Index Fund NFO: frequently asked questions
1. What are the Motilal Oswal Nifty REITs & Realty Index Fund NFO dates?
The offer opens on 25-09-2026 and closes on 09-10-2026.
2. Is the Motilal Oswal Nifty REITs & Realty Index Fund NFO good to invest in?
It depends on your goal and what you already hold. A single-sector fund suits a small satellite position, not a core allocation.
3. What does this fund invest in?
Listed REITs and realty companies in the Nifty REITs & Realty Index, at 95% to 100% of assets.
4. What is a REIT in simple terms?
A REIT owns rent-earning commercial property, lists its units on the exchange and passes most of the rent to unit holders.
5. What is the minimum investment in this NFO?
Rs 500, in multiples of Re 1. Additional purchases also start at Rs 500.
6. Can I start a SIP in this fund?
Yes, from Rs 100 daily, Rs 500 monthly or Rs 1,500 quarterly.
7. What is the exit load?
1% if you redeem within 15 days of allotment, nothing after.
8. Will the units be listed on a stock exchange?
No. You buy and redeem at the applicable NAV on business days.
9. What is tracking error and how much is expected here?
It is the gap between the index return and the NAV return. Scheme documents say it should stay within 2% a year in normal conditions.
10. Who manages the Motilal Oswal Nifty REITs & Realty Index Fund?
Swapnil Mayekar and Dishant Mehta manage the equity portion, with Rakesh Shetty on debt. Regular and Direct plans are offered, growth option only.
