Top Real Estate Mutual Funds in India

​Around the world, real estate investing has been the most well-known method of making money. Nonetheless, most investors are put off by the exorbitant cost of real estate. However, for investors wanting to have exposure to real estate for investing purposes, mutual funds in India are the best option for you.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

In this blog, we shall discuss these funds below, as well as their characteristics and advantages.

Overview of Best Real Estate Mutual Funds

Here is a list of top real estate funds where you can invest to profit and earn a steady income over time.

HDFC Housing Opportunities Fund

This is a housing-themed fund that bets on India’s home-buying boom by investing in real estate developers, construction companies, and related sectors like cement, steel, and home finance. It holds a big chunk in top builders like Prestige Estates Projects, Ashoka Buildcon, and Macrotech Developers, giving it a strong tilt toward the housing ecosystem rather than just pure property stocks.

Tata Housing Opportunities Fund

A relatively new thematic fund that focuses purely on the housing story, investing in companies that benefit from rising home demand — from builders to material suppliers and even REITs. Its portfolio is heavily tilted toward real estate, with major holdings in Prestige Estates, DLF, Brigade Enterprises, TARC, and Suraj Estate Developers, making it a concentrated play on India’s long-term housing growth.

​HSBC Infrastructure Fund

This fund blends infrastructure and real estate, so it’s not just about flats and offices but also roads, power, and urban development projects. It has a meaningful real estate exposure through stocks like Reliance Industries (via its property arm), Brigade Enterprises, Phoenix Mills, and DLF, giving investors a balanced way to ride both infrastructure and property growth.

​ICICI Prudential Infrastructure Fund

One of the oldest and largest infrastructure funds, it mixes roads, power, and urban projects with a smaller but strategic allocation to real estate stocks. It holds companies involved in construction and urban development, indirectly giving exposure to property growth while being more diversified than a pure housing fund.

​SBI Real Estate Opportunities Fund

As the name suggests, this is a pure real estate fund that invests mainly in real estate developers, construction firms, and REITs. It’s designed as a direct play on India’s property sector, homes, offices, malls, and warehousing, so it’s more volatile but also more focused than broader infrastructure funds.

​ITI Large Cap Fund

This is a large-cap fund that includes a small but deliberate allocation to real estate as part of a diversified portfolio of blue-chip companies. Its property exposure comes through Reliance Industries, DLF, KNR Constructions, Max Estates, and Brigade Enterprises, making it a good option for conservative investors who want some real estate exposure without going all-in on the sector.

​ICICI Prudential Mid Cap Fund

A well-known mid-cap fund that, while not a real estate fund, holds a decent chunk in mid-sized property and construction companies. Its real estate exposure (around 9%) includes names like Phoenix Mills (retail malls), Godrej Properties, and Prestige Estates, so it offers property upside as part of a broader mid-cap growth strategy.

​Taurus Infrastructure Fund

Another infrastructure-focused fund that balances roads, power, and urban projects with a meaningful slice in real estate stocks. It’s positioned as a more balanced, cycle-resilient play where property is one part of a broader infrastructure story, rather than the main theme.

​Conclusion

Real estate mutual funds present an effective means of diversifying an investment portfolio, particularly for those who may not have the capital to purchase property outright. However, before investing in REIT mutual funds or real estate ETFs in India, it is vital for investors to carefully assess their financial objectives, risk appetite, investment horizon, and overall asset allocation. Additionally, performing a detailed analysis of earnings per share (EPS) growth and historical dividend income can help investors make more informed decisions and optimise potential returns over time.