The paper describes a simple and cost effective method for the realization of an optical interferometer based on holographic optics, which use minimal bulk optical components. The optical arrangement in the proposed method involves a very simple alignment procedure and inexpensive holographic recording material is used in the formation of holographic optical elements. The proposed interferometer set-up is quite suitable for performing optical test studies on phase (transparent) objects in real-time. Recording schemes for the formation of holographic optical elements and the related technique for the realization of the interferometer set-up along with the experimental results have been presented.