Upcoming NFO: Motilal Oswal Mutual Fund Files for Motilal Oswal Nifty REITs & Realty Index Fund

Motilal Oswal Mutual Fund has proposed the Motilal Oswal Nifty REITs & Realty Index Fund, an open-ended index fund tracking the Nifty REITs & Realty Total Return Index.  

The scheme is classified under “Other Schemes – Index Fund” and seeks returns linked to the benchmark and long-term capital growth. The Scheme Information Document is dated August 30, 2026.  

Portfolio Allocation 

The fund will invest 95% to 100% of its assets in securities forming part of the Nifty REITs & Realty Index. Debt and money market instruments can account for 0% to 5%.  

The portfolio will hold index securities in the same proportions as their benchmark weights, subject to tracking error.  

Index Composition 

The underlying index comprises 15 listed REITs and Realty-sector stocks. Constituents are weighted by free-float market capitalisation, subject to a 15% cap for an individual security.  

As of July 31, 2026, Brookfield India Real Estate Trust had the largest weight at 15.75%, followed by Embassy Office Parks REIT at 14.42% and Nexus Select Trust at 13.54%. The top three accounted for 43.71%.  

Index Performance 

As of July 31, 2026, the index recorded annualised returns of 11.86% over one year and 19.02% over three years. Annualised volatility stood at 13.97% and 13.66% for the two periods, respectively.  

Investment Terms 

The scheme will offer Regular and Direct Plans, with only the Growth Option. The New Fund Offer (NFO) price is ₹10 per unit, and the minimum lump-sum investment is ₹500.  

SIPs start at ₹100 for daily instalments and ₹500 for weekly, fortnightly and monthly instalments.  

Exit Load and Tracking 

A 1% exit load applies if units are redeemed on or before 15 days from allotment, while it is nil thereafter. The units are not proposed to be listed on a stock exchange. Under normal market conditions, tracking error is not expected to exceed 2% a year.  

Read More: Kotak Mahindra Mutual Fund Files for Kotak Nifty Infrastructure Index Fund! 

Conclusion 

Motilal Oswal Nifty REITs & Realty Index Fund will invest mainly in the 15 securities forming the underlying index. The scheme will follow the index subject to tracking error. 

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