As the Indian real estate sector experiences a resurgence, driven by rising demand in both residential and commercial spaces, real estate mutual funds have become an increasingly appealing option for investors. The sector has benefitted from strong government initiatives and increased urbanisation, which have boosted infrastructure development.
With the commercial and residential markets witnessing a steady rise in property prices, especially in key metropolitan areas, real estate funds present an opportunity for growth.
In this article, we will delve into the top-performing real estate mutual funds for December 2024, evaluated based on their 3-year CAGR.
| Name | AUM (₹ Crore) | CAGR 3Y (%) | Expense Ratio (%) |
| HSBC Infrastructure Fund | 2,611.16 | 28.89 | 0.97 |
| HDFC Housing Opp Fund | 1,453.04 | 22.47 | 1.2 |
| ICICI Pru Midcap Fund | 6,330.47 | 21.99 | 1.05 |
| ITI Large Cap Fund | 360.06 | 15.1 | 0.5 |
Note: The top 4 real estate mutual funds list in India in December here is sorted as per the 3-yr CAGR as of November 26, 2024.
The HSBC Infrastructure Fund is an open-ended equity scheme primarily focused on investing in the equity and equity-related instruments of companies in the infrastructure sector.
As of October 2024, the fund’s portfolio includes substantial investments in sectors such as Capital Goods (37.07%) and Construction (15.67%). Among its top holdings are Larsen & Toubro (7.38%), a leader in construction, and Bharat Electronics (7.28%), a major player in the capital goods sector.
Key metrics:
The HDFC Housing Opportunities Fund aims to deliver long-term capital appreciation by investing primarily in equity and equity-related instruments of companies engaged in or poised to benefit from the growth in housing and related business sectors.
As of October 2024, the fund’s portfolio includes substantial investments in the Construction sector (22.76%) and Materials sector (18.93%). Key holdings include Larsen & Toubro (7.09%) in the construction space and Ambuja Cements (6.91%) in the materials sector.
Key metrics:
The ICICI Prudential Midcap Fund is designed to offer long-term capital appreciation by primarily investing in a diversified portfolio of midcap stocks. It focuses on companies with market capitalisations that fall within the range of the Nifty Midcap 100 Index.
As of October 2024, the fund has notable allocations in the Metals & Mining sector (15.36%) and Construction (10.98%). Top holdings in the portfolio include Phoenix Mills (3.33%), a leading player in the construction sector, and Godrej Properties (3.11%)
Key metrics:
The ITI Large Cap Fund seeks to achieve long-term capital appreciation by predominantly investing in equity and equity-related securities of large-cap stocks.
As of October 2024, the sector allocation of the fund includes Financials (27.63%) and Construction (9.59%). The top stock holdings in the portfolio are HDFC Bank (7.37%) in the Financials sector and Larsen & Toubro (3.59%) in the Construction sector.
Key metrics:
In addition to the above, there is the Tata Housing Opportunities Fund that was launched on September 2, 2022. As of October 2024, the fund has an AUM of ₹609.92 crore.
The portfolio is significantly weighted towards the Construction sector, with 23.24% of the total allocation. Key stock holdings include Prestige Estates Projects (6.11%) and Larsen & Toubro (4.97%), both major players in the real estate and construction industry.
Key metrics:
Investing in real estate mutual funds presents exciting opportunities but also involves certain risks. Before making any investment, investors need to evaluate their risk appetite, financial objectives, and investment horizon. Seeking advice from a financial advisor can offer valuable guidance in crafting a strategy that suits personal goals and risk tolerance, ensuring an informed approach to navigating the real estate market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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