Best Real Estate Mutual Funds in December 2025 Based on 3Y CAGR

The contribution of India’s real estate sector to GDP has risen from 6% in 2017 to 13% in 2024. The industry is on track to add US$1 trillion to India’s GDP by 2030, and will grow at a rate of 10–11% per annum. Residential real estate is expected to lead with an 88% market share, followed by commercial real estate.

With the introduction of New Labour Codes, labour costs may rise by 3–4% for real estate companies. However, as per news reports, a rate cut could lift mid-income housing demand. Moreover, the increasing demand for data centers and warehouses is likely to expand industrial growth. 

Here are some of the best real estate mutual funds you can explore for investments in December 2025. 

Best Real Estate Mutual Funds in India in December 2025 Based on 3-Yr CAGR 

Overview of the Real Estate Mutual Funds in India in December 2025

ICICI Prudential Midcap Fund

It is a strong mid-cap performer with high alpha and consistent long-term growth, suitable for investors seeking aggressive yet stable mid-cap exposure.

• Benchmark: Nifty Midcap 150 TRI
• Tracking Error: 2.56
• Minimum SIP: ₹5,000

HSBC Infrastructure Fund

It is a high-growth infrastructure-focused fund with strong returns but higher volatility, ideal for investors wanting exposure to India’s infrastructure expansion.

• Benchmark: Nifty Infrastructure TRI
• Tracking Error: 6.54

HDFC Housing Opportunities Fund

It is a thematic fund targeting the housing sector with healthy returns and moderate volatility, suitable for long-term investors seeking sector-specific opportunities.

• Benchmark: Nifty Housing TRI
• Tracking Error: 3.24
• Minimum SIP: ₹100

Tata Housing Opportunities Fund

A housing-theme fund that offers steady returns with slightly higher variance, suitable for investors looking for focused exposure to real estate-linked businesses.

• Benchmark: Nifty Housing TRI
• Tracking Error: 4.89
• Minimum SIP: ₹150

ITI Large Cap Fund

It is a stable large-cap fund with strong alpha and lower volatility, ideal for conservative investors who prefer steady long-term wealth creation.

• Benchmark: Nifty 100 TRI
• Tracking Error: 3.17

Best Real Estate Mutual Funds in India in December 2025 Based on Highest Alpha

Read more: Gold ETF Assets in India Surpass Milestone of ₹1 Lakh Crore in October 2025.

Conclusion

India’s real estate and infrastructure-linked mutual funds show steady long-term potential. The sector is growing due to higher housing demand, more data centres, and rising warehousing activity. Investors should match their choices with personal goals, track fund performance, and stay diversified.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual fund investments in the securities market are subject to market risks. Read all the related documents carefully before investing.