Let’s first provide a few details about HDFC Nifty Realty Index Fund. It will be the first fund to replicate the performance of the real estate index.
The new fund has been open for investors to subscribe to since March 7, 2024. The closing date is March 21, 2024. For more details, please look at the above table.
The fund’s underlying index – Nifty Realty Index – has beaten the Nifty 50 and 500 just 9 per cent of the time on a 10-year monthly rolling returns basis since 2007!
Real estate as a sector is inherently cyclical. As a result, the index’s performance swings wildly, as you can see above. Simply put, this sector is very risky.
The index has only 10 companies. It excludes firms from allied sectors like building materials and housing finance. In other words, its limited breadth makes it highly risky.