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An open ended scheme replicating/tracking BSE REITS and Commercial Real Estate Index (TRI)

 

HDFC Mutual Fund (HDFC MF), one of India's leading mutual fund houses, today announced that it has re-opened the HDFC BSE REITS and Commercial Real Estate Index Fund (the “Scheme”) post its recent NFO. The fund is an innovative offering designed to provide investors with simple, convenient and diversified access to India’s growing commercial real estate ecosystem through a passive investment route. The fund aims to track the BSE REITS and Commercial Real Estate Index, a first-of-its-kind benchmark that provides exposure to listed REITs alongside select commercial real estate companies with rental income–linked business models. The filing marks an important milestone in broadening the investment universe available to Indian investors and making institutional-quality commercial real estate exposure more accessible through the mutual fund structure.

 

The Scheme seeks to address a longstanding gap in investor portfolios by offering easy access to a unique asset class. REITs are globally recognized as a transparent and regulated way to participate in income-generating real estate assets, offering the potential for a combination of regular income and long-term capital appreciation. Now, investors can gain exposure to professionally managed commercial real estate assets with a relatively small investment through the mutual fund format. The product is expected to appeal to investors seeking an additional source of portfolio diversification, given the relatively distinct return drivers of commercial real estate compared to traditional asset classes. Beyond investor benefits, REITs play a vital role in the broader economy by enabling efficient monetization of completed real estate assets, attracting long-term institutional capital and supporting the creation of high-quality commercial real estate assets that helps to contribute to India’s economic growth.

Commenting on the filing, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said: “The launch of the HDFC BSE REITS and Commercial Real Estate Index Fund represents another step in our commitment to democratizing access to innovative investment opportunities for Indian investors and fulfil our mission to be the wealth creator for every Indian. By providing this exposure via index fund format, we aim to offer investors an innovative and convenient way to participate in India’s long-term real estate growth opportunity. This latest offering demonstrates our commitment to delivering excellence in Index Solutions, leveraging our 20+ years of experience in passive strategies.”

 

BSE Disclaimer: The “BSE REITS and Commercial Real Estate Index” is a product of BISPL, a subsidiary company wholly owned by BSE Limited (“BSE”), and the BSE REITS and Commercial Real Estate Index” has been licensed for use by HDFC Asset Management Company Limited. BSE® and SENSEX® are registered trademarks of BSE Limited. HDFC BSE REITS and Commercial Real Estate Index Fund is not sponsored, endorsed, sold or promoted by BISPL, BSE, or their respective affiliates.” Please read the full Disclaimers in relation to BSE REITS and Commercial Real Estate Index in the SID of the Product.

The Scheme’s underlying index being thematic in nature carries higher risks versus diversified equity mutual funds on account of concentration and theme specific risks.

HDFC Mutual Fund: SEBI Registration Number: MF/044/00/6

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.