- An open-ended scheme replicating/tracking NIFTY Realty Index (TRI)
Bengaluru: HDFC Asset Management Co. Ltd., investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses launches the HDFC NIFTY Realty Index Fund. The captioned NFO opens on March 7th and closes on March 21st, 2024.
The realty sector is critical to the economy as it is one of the sectors that drives economic growth, employment and government revenues. The realty sector has the potential for long-term growth with large scale development across residential, commercial, retail, hospitality and SEZ projects. Improving affordability, increased urbanization and improved transparency through government initiatives could drive growth for years to come. Furthermore, listed realty companies’ fundamentals have improved with continued formalization of the sector along with higher profitability and reduced leverage over the last 6-7 years.
HDFC NIFTY Realty Index Fund offers investors exposure to a diversified portfolio of real estate stocks through a single instrument, eliminating the need for individual stock selection. It is an open-ended scheme that aims to replicate the NIFTY Realty Index. The fund could be suitable for investors who seek diversified exposure to the growth potential of the realty sector and have high volatility tolerance. Investors may approach sector funds as complementary over existing exposure to other equity fund categories that are diversified in nature. Sectoral funds carry higher risk; thus, one could take controlled exposure to such funds. Investors could also use the SIP route to take exposure over a period of time.
Commenting on the launch of the HDFC NIFTY Realty Index Fund, Mr. Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Company, “At HDFC Mutual Fund, our mission to be the wealth creator for every Indian continues to drive us to offer a wide range of investment solutions to meet the needs of investors. We remain committed to delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. We are pleased to add the HDFC NIFTY Realty Index Fund to our bouquet of Index Solutions.”
