As India’s real estate sector experiences robust growth, several mutual funds are strategically increasing their exposure to capitalize on this momentum. Equitymaster highlights five mutual funds that are actively investing in real estate stocks, offering investors a diversified approach to participate in this booming sector.
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Quant Infrastructure Fund
This sectoral fund focuses on infrastructure-related companies, with a notable allocation to real estate. As of October 2023, it holds 6.93% in DLF Ltd. and 4.33% in NCC Ltd., totaling an 11.26% exposure to real estate stocks. The fund’s diversified approach across market capitalizations aims to balance growth and risk. -
Tata Housing Opportunities Fund
Launched in September 2022, this thematic fund targets entities benefiting from the housing sector’s growth. It allocates 3.77% to DLF Ltd., 3.66% to Prestige Estates Projects Ltd., and 3.37% to Brigade Enterprises Ltd., culminating in a 10.8% exposure to real estate equities. -
Quant Focused Fund
Aiming for capital appreciation through a concentrated portfolio, this fund has a 7.19% allocation to DLF Ltd. Its focused investment strategy seeks to capitalize on select high-conviction stocks within the real estate sector. -
HSBC Small Cap Fund
Targeting emerging companies, this fund invests in small-cap stocks with growth potential. It holds 2.02% in Brigade Enterprises Ltd., 1.8% in Mahindra Lifespace Developers Ltd., 0.98% in NCC Ltd., and 0.88% in Sobha Ltd., amounting to a 5.68% exposure to real estate stocks. -
SBI Infrastructure Fund
Focusing on infrastructure growth, this fund includes real estate companies in its portfolio. It allocates 2.72% to Sobha Ltd. and 2.59% to Brigade Enterprises Ltd., totaling a 5.31% exposure to the real estate sector.
These mutual funds offer investors varied strategies to tap into India’s expanding real estate market. However, potential investors should assess each fund’s investment approach, risk profile, and alignment with their financial goals before investing.
