Sunday, June 15, 2008

HSBC Infrastructure and Real Estate Fund and SBI Real Estate Equity Fund: how will they fare?

The Securities and Exchange Board of India (Sebi) had, a few weeks ago, announced the rules of the game for real estate funds. At least two real estate funds are already awaiting Sebi’s approval. These funds will not directly invest in real estate projects as they are ordinary equity funds and invest in shares of real estate and construction companies.

Given the serious damage to the prices of realty stocks this year, it is unclear how many investors will buy the idea now. But, the likely launch of two realty-focused stock funds clearly shows that fund houses want to help investors chase the momentum in these stocks, or they truly believe in the long-term prospects of the sector. Read More

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