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Real Estate Stocks through Fund managers’ Lens
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With the overall real estate industry contributing about 9 percent, the housing sector contributes major chunk 5-6 percent to the country’s Gross Domestic Product (GDP).

New Delhi, July 3: Real Estate Stocks have been always a most popular alternative investment for many investors and fund managers. However, it has become more attractive in near term due to number of changes in the real estate laws.

Yes, the real estate sector of our country has been going through significant transformation in Modi’s Regime. Investing on real estate sector through Mutual funds is a safe and wise way. The dedicated and experienced Fund managers are out there to invest your money through their expertise and research.

However, in the past Mutual fund managers have under weighted real estate stocks. As per the Dalal Street Investment Journal real estate report, the mutual fund industry in the country had a total exposure of Rs 2,000 crore to real estate stocks that is too little 0.3% of the total equity exposure held by funds, as on May 31, 2017.

And, if you watch closely the worth of this equity exposure has almost doubled from `Rs 1,100 crore in March 2016 over the last one year. This is mainly owing to selective buying in certain stocks and rise in the underlying stock prices.

Let us look at some of the best stocks held by mutual funds- Godrej Properties, DLF, Brigade Enterprises, Sobha Ltd. and Prestige Estates. In the past year, Godrej Properties, Sobha Ltd and Brigade Enterprises have witnessed additions. This has happened after the stocks has seen price corrections post demonetization.

Moreover, DLF Limited (Delhi Land & Finance) has seen fund managers reducing positions. Fund Managers have been adding positions to ancillary stocks like cement and housing finance. Except few names in the real estate sector their sentiment to real estate stocks remains subdued.

Akash Singh

Author: Akash Singh

Akash Singh is a passionate free lance writer based in Noida. He’s designed the content for various reputed online financial and real estate portals. He has completed his Bachelor’s in Management from Mumbai University and has earned his MBA International Business (HR) Degree from prestigious Amity University. He loves to invest his time in the laps of nature, and enjoys life to the fullest.