Best Real Estate Mutual Funds in January 2026 Based on 3-Year CAGR

India’s real estate sector continues to play an important role in economic growth, supported by housing demand, infrastructure development, and expansion in warehousing and data centres. 

Sector-linked mutual funds provide indirect exposure to real estate, construction, and allied industries through diversified portfolios.

Here are some real estate and infrastructure-oriented mutual funds to consider in January 2026 based on their 3-year CAGR.

Best Real Estate Mutual Funds in India in January 2026 Based on 3-Year CAGR

Note: The data above is ranked as per 3-year CAGR, and is as of Jan 8, 2026.

Overview of the Real Estate Mutual Funds in January 2026

1. ICICI Prudential Midcap Fund

This fund focuses on mid cap companies across sectors, including real estate-linked businesses. It has supported by diversified stock selection.

• Benchmark: Nifty Midcap 150 TRI
• Tracking Error: 2.09

2. HSBC Infrastructure Fund

The fund provides exposure to infrastructure-related companies, including construction, power, and logistics. Returns may fluctuate due to sector-specific cycles.

• Benchmark: Nifty Infrastructure TRI
• Tracking Error: 6.08

3. HDFC Housing Opportunities Fund

This thematic fund invests in companies associated with housing, construction materials, and related industries. It aims to benefit from long-term housing demand.

• Benchmark: Nifty Housing TRI
• Tracking Error: 2.47

4. Tata Housing Opportunities Fund

The fund follows a housing focused investment approach, covering real estate developers, building material suppliers, and allied sectors.

• Benchmark: Nifty Housing TRI
• Tracking Error: 4.32

5. ITI Large Cap Fund

A large cap oriented fund that includes exposure to real estate linked companies alongside other established businesses, offering relatively lower volatility.

• Benchmark: Nifty 100 TRI
• Tracking Error: 2.87

Best Real Estate Mutual Funds in January 2026 Based on Expense Ratio

Read More: Best Monopoly Stocks in January 2026: HAL, CDSL, IRCTC and More Based on 5-yr CAGR Basis.

Conclusion

Real estate and infrastructure-linked mutual funds continue to offer long-term exposure to India’s housing and development themes.

Performance varies based on market conditions, sector cycles, and fund strategy. Investors should align fund selection with their risk profile, investment horizon, and financial objectives while maintaining portfolio diversification.

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. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.