HDFC Mutual Fund reopens commercial real estate index fund for subscription

Mumbai(The Uttam Hindu): HDFC Mutual Fund has reopened its HDFC BSE REITs and Commercial Real Estate Index Fund for ongoing subscription following its recent New Fund Offer (NFO).

The open-ended index fund seeks to track the BSE REITs and Commercial Real Estate Index (TRI), providing investors with diversified exposure to India’s commercial real estate ecosystem through a passive investment route. The underlying index comprises listed REITs and select commercial real estate companies with rental income-linked business models.

According to HDFC MF, the scheme is aimed at providing investors with relatively easy access to professionally managed, income-generating commercial real estate assets through the mutual fund structure. It also seeks to offer portfolio diversification, given the distinct return drivers associated with commercial real estate compared with traditional asset classes.

Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company, said the index fund format is intended to provide investors with a convenient way to participate in India’s long-term real estate growth opportunity. He added that the offering builds on HDFC AMC’s more than two decades of experience in passive investment strategies.