5 Mutual Funds Driving India's Real Estate Boom - Are You In?

Explore the five mutual funds fueling India's real estate surge, offering investors a unique opportunity to capitalize on the nation's ongoing infrastructure and housing boom.

Real EstateMutual FundsInfrastructureHousingInvestmentReal EstateJun 06, 2025

5 Mutual Funds Driving India's Real Estate Boom - Are You In?

Real Estate:Walk around the outskirts of any Tier 2 city these days, and you’ll hear the same sounds — construction machines humming, trucks unloading cement, workers laying bricks under a rising sun. That’s not just real estate coming up — that’s India shifting gears. We’ve entered a phase where cities like Nagpur, Coimbatore, Indore, and Raipur aren’t just satellite locations anymore. They’re turning into self-contained growth hubs. People are moving in, factories are being set up, schools are opening, roads are widening — and the government’s wallet is wide open to support all of this.

From highways and industrial parks to metro lines and smart cities, infrastructure is the new face of development. And wherever infra grows, real estate quietly thrives alongside. Not just the big builders or cement giants — but also housing finance firms, interior design brands, construction tech startups, and even banks. This isn’t a one-off boom. It’s a slow, powerful tailwind — the kind of shift that doesn’t make noise every day, but compounds quietly. That’s exactly why mutual fund houses have started taking it seriously. They’ve launched infra-and-housing-themed funds that give investors a seat at this massive table. Let’s talk about five of them that have caught the eye — not just because of returns, but because of the story they’re chasing.

1. Tata Housing Opportunities Fund

This fund feels like it was built with a bird’s-eye view. It doesn’t just put money into real estate companies and call it a day — it dives deeper. It looks at the entire housing ecosystem — cement makers, paint companies, housing finance, tiles, you name it. The idea is simple: when someone builds a house, 10 other industries benefit. And this fund taps into all of them. You’ll find names like Prestige Estate, DLF, and HDFC in the portfolio. With a domination of over 20% by banks and 18% by construction, the fund says it all! What’s nice? It’s not trying to time the real estate cycle. It’s riding the housing wave over the next 10–15 years by keeping a bottom-up approach. Indeed, the real magic of real estate in India is just starting to unfold.

2. Taurus Infrastructure Fund

This one’s been around quietly, doing its job, without much noise. Taurus Infra Fund isn’t massive in size, but it’s got its eyes in the right place — companies that are literally building India. From road contractors and bridge developers to infrastructure financing players and cement manufacturers, it’s a tight portfolio with strong intent. They often hold stocks like Afcon, DLF, and TARC — real operators in the space, not just market favorites. It holds around 13% of its holdings in real estate stocks. The fund has also delivered a palatable CAGR of over 24% in the past 5 years! It’s a nice pick for someone who believes in backing the “builders of Bharat” — quite literally.

3. HDFC Housing Opportunities Fund

Now this one takes a very smart approach. Instead of just betting on builders and property developers, it focuses on companies that make houses liveable. So you’ll find consumer-facing businesses in the mix — paints, fans, tiles, bathroom fittings, even home finance. Think of companies like Prestige Estate, Ashoka Buildcon, and Macrotech Developers with the overall fund delivering a CAGR of 22% in the past 5 years. It’s kind of like investing in everything that comes after you buy the house. Clever, right? It’s a quieter way of participating in the housing boom without riding the real estate rollercoaster.

4. Bandhan Focused Equity Fund

This isn’t a dedicated infra fund, but a focused equity fund that naturally leans towards India’s emerging infrastructure theme. It runs a concentrated portfolio — around 25 to 30 stocks — and a good chunk of those are in sectors like cement, capital goods, engineering, and finance, favorite stocks being Prestige Estate and Signature Global. It doesn’t scream “real estate,” but when you peel the layers, you’ll find that it’s quietly sitting in the middle of the action. The fund’s major investment is in real estate stock worth 8.92%. What’s admirable is their long-term belief — they don’t just chase headlines. They go deep, stay patient, and ride with conviction.

5. ICICI Prudential Infrastructure Fund

Old is gold — and ICICI Pru Infra Fund proves it. It has been around for over a decade and has seen both the highs and lows of India’s infrastructure push. But it’s never lost sight of the big picture. From top names like NCC and IRB Infra to real estate bets like Oberoi Realty, the fund is a strong blend of reliability and thematic focus. It has delivered a CAGR of 33% over the past 5 years. It’s the kind of fund you can park money in and forget for a few years, trusting that the India growth story will eventually reward patience.

Closing Thoughts: A Seat on the Real Estate Ship

Look — this isn’t just about a sector doing well. This is about a long-term transformation in how and where India grows. And we’re still in the early innings. These mutual funds are more than just products. They’re ways to get on the boat — while the ocean is still calm and full of opportunity. Because five years from now, when Tier 2 cities become economic centers and affordable housing goes mainstream, the ones who stayed invested early will be smiling. If you’ve ever believed in the India growth story, this is one of its most exciting chapters — and the mutual funds above are some of the best ways to be a part of it.

Frequently Asked Questions

What is the Tata Housing Opportunities Fund?

The Tata Housing Opportunities Fund is a mutual fund that invests in the entire housing ecosystem, including cement makers, paint companies, housing finance, and tiles. It aims to benefit from the growth of the housing sector over the next 10-15 years.

What is the Taurus Infrastructure Fund known for?

The Taurus Infrastructure Fund is known for its focus on companies that are building India, such as road contractors, bridge developers, and infrastructure financing players. It has delivered a CAGR of over 24% in the past 5 years.

How does the HDFC Housing Opportunities Fund differ from other real estate funds?

The HDFC Housing Opportunities Fund focuses on companies that make houses liveable, such as paints, fans, tiles, and bathroom fittings. It offers a quieter way to participate in the housing boom without riding the real estate rollercoaster.

What is the unique feature of the Bandhan Focused Equity Fund?

The Bandhan Focused Equity Fund is a concentrated portfolio of 25-30 stocks, with a significant portion invested in sectors like cement, capital goods, engineering, and finance. It quietly sits in the middle of the infrastructure and real estate action with a long-term belief.

What makes the ICICI Prudential Infrastructure Fund a reliable investment?

The ICICI Prudential Infrastructure Fund has been around for over a decade and has a strong blend of reliability and thematic focus. It has delivered a CAGR of 33% over the past 5 years, making it a solid choice for long-term investors.