By 2025, there is a marked resurgence in India’s property market, a trend that is attracting established financiers as well as newbies. The real estate sector has asserted itself as a reliable player amid the swings in the stock market caused by global political uncertainties. This trend is borne by a surge in property demand, supportive governmental policies, and hearty profits by industries linked to real estate.
Mutual funds investing in real estate offer variety, knowledgeable handling, and access to the full spectrum of the real estate value chain. These property-focused mutual funds have regained the attention of financiers. Let’s examine five mutual fund schemes primed to capitalize on the resurgence in India’s real estate sector.
Firstly, the Tata Housing Opportunities Fund was inaugurated in September 2022. Instead of exclusively focussing on property developers, this fund employs a thematic approach. Not only does it support housing finance, but it also involves cement and construction materials, electricals, paints, home appliances, among other sectors poised to profit from the property boom.
Next, established in March 2007, the Taurus Infrastructure Fund seeks to exploit the opportunities offered by India’s significant investment in infrastructure. This spans sectors such as roads, railways, real estate, power, and city development. Over the past five years, this fund has provided a 24.14% CAGR return, thanks to a revival in capital expenditure and increased housing-related infrastructure demand.
The HDFC Housing Opportunities Fund is part of one of India’s most established and respected Asset management companies. This fund focuses on enterprises that stand to benefit from the demand for housing—ranging from cement, paint, tiles, electricals, and home finance to consumer durable goods.
Bandhan Focused Equity Fund is a high-conviction multi-cap fund investing in up to 30 stocks. The fund aims to build a concentrated portfolio of top ideas of any market capitalisation. Furthermore, it invests capital tactically into businesses closely connected with the housing and infrastructure value chain.
The ICICI Prudential Infrastructure Fund adopts a blend of top-down and bottom-up stock picking. It has a strong inclination towards cyclical companies projected to benefit from the resumption of the capital expenditure, urbanisation, and government-led infrastructure initiatives. Since its inception in 2005, the fund has withstood multiple market cycles, establishing itself as a reliable performer in the infrastructure segment.
An overview of the Top 5 Mutual Funds with substantial Real Estate Allocation was shared as of June 02, 2025. Though thematic mutual funds concentrating on real estate do not guarantee smooth performance, they do allow investors exposure to India’s changing infrastructure landscape, which is buttressed by governmental policies, demographic trends, and long-term demand factors.
Nevertheless, investors must bear in mind that an investment in such thematic funds needs to be strategic and long-term. These funds are not designed as an avenue for short-term gains, nor to chase trends. Rather, they are an opportunity for those investors who can navigate market cycles, manage temporary corrections, and are in pursuit of substantial gains over a 7–9-year horizon.