HDFC Mutual Fund Pauses Large Investments in Nifty Realty Fund

3 Apr 2024 , 01:47 PM

HDFC Mutual Fund has announced a halt in accepting lump sum investments for its HDFC Nifty Realty Index Fund effective April 8. Additionally, systematic investment plans (SIPs) and top-ups will be restricted to ₹1 Lakh.

The HDFC Nifty Realty Index Fund, launched in early March, is solely dedicated to the domestic real estate sector. Initially open for subscription from March 7 to March 21, it resumed ongoing subscriptions and redemptions from April 2.

The Nifty Realty index has witnessed a year-to-date increase of over 19%, with DLF holding the highest weightage among constituents at 29.2%, followed by Macrotech Developers at 14.1%, Godrej Properties, and Phoenix Mills.

HDFC Mutual Fund ranks as the third-largest asset management company in India based on assets, with assets under management (AUM) totaling ₹6.29 Lakh crore as of February-end.

According to Nuvama analyst, housing demand in India’s top seven cities surged by 20% year-on-year and 7% month-on-month in February 2024. Year-to-date demand for the calendar year 2024 rose by 13% year-on-year, while supply witnessed a 28% decline. Prices experienced an uptrend in most cities, particularly soaring by 20% in Bengaluru in February 2024 compared to the previous year. The analyst anticipates an improvement in sales momentum, especially for organized developers.

Currently, the Nifty Realty index tops the list of losing sectoral indices, declining by more than 1% today.

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