Best Infrastructure Mutual Funds

The below table shows a list of the best Infrastructure Mutual Funds based on AUM, NAV and minimum SIP.

Name	AUM (Cr)	NAV (Rs)	Minimum SIP (Rs)
ICICI Pru Infrastructure Fund	5703.04	207.55	100
DSP India T.I.G.E.R Fund	4896.20	365.95	100
Quant Infrastructure Fund	4103.61	46.13	1000
Franklin Build India Fund	2738.26	165.10	100
Tata Infrastructure Fund	2479.68	210.98	100
Bandhan Infrastructure Fund	1934.06	64.91	100
Invesco India Infrastructure Fund	1470.26	79.95	100
Canara Rob Infrastructure Fund	883.84	182.21	100
LIC MF Infra Fund	619.22	58.60	1000
Bank of India Mfg & Infra Fund	404.90	68.19	100

Introduction To Infrastructure Mutual Funds

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Prudential Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹5,703.04 crores, a 5-year CAGR of 33.85%, an exit load of 1% and an expense ratio of 1.18%. The SEBI risk category is Very High. Its asset allocation includes 92.93% in Equity, 5.10% in Cash & Equivalents, 1.15% in Treasury Bills, 0.71% in REITs & InvIT and 0.12% in Rights.

DSP India T.I.G.E.R Fund

DSP India T.I.G.E.R Fund is a Sectoral-Infrastructure mutual fund scheme from DSP Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

DSP India T.I.G.E.R Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹4,896.20 crores, a 5-year CAGR of 33.58%, an exit load of 1% and an expense ratio of 0.91%. The SEBI risk category is Very High. Its asset allocation includes 92.65% in Equity, 6.65% in Cash & Equivalents, 0.63% in REITs & InvIT and 0.08% in Rights.

Quant Infrastructure Fund

Quant Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from Quant Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Quant Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹4,103.61 crores, a 5-year CAGR of 41.88%, an exit load of 0.5% and an expense ratio of 0.66%. The SEBI risk category is Very High. Its asset allocation includes 67.14% in Equity, 14.79% in Futures & Options, 14.58% in Cash & Equivalents and 3.49% in Treasury Bills.

Franklin Build India Fund

Franklin Build India Fund is a Sectoral-Infrastructure mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Franklin Build India Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹2,738.26 crores, a 5-year CAGR of 32.41%, an exit load of 1% and an expense ratio of 0.97%. The SEBI risk category is Very High. Its asset allocation includes 95.80% in Equity, 4.01% in Cash & Equivalents and 0.19% in Rights.

Tata Infrastructure Fund

Tata Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from Tata Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Tata Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹2,479.68 crores, a 5-year CAGR of 32.39%, an exit load of 0.25% and an expense ratio of 1.18%. The SEBI risk category is Very High. Its asset allocation includes 95.94% in Equity, 3.35% in Cash & Equivalents, 0.60% in REITs & InvIT and 0.11% in Rights.

Bandhan Infrastructure Fund

Bandhan Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from Bandhan Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Bandhan Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹1,934.06 crores, a 5-year CAGR of 35.67%, an exit load of 0.5% and an expense ratio of 0.85%. The SEBI risk category is Very High. Its asset allocation includes 95.27% in Equity, 4.54% in Cash & Equivalents and 0.19% in Rights.

Invesco India Infrastructure Fund

Invesco India Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from Invesco Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Invesco India Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹1,470.26 crores, a 5-year CAGR of 35.82%, an exit load of 1% and an expense ratio of 0.71%. The SEBI risk category is Very High. Its asset allocation includes 96.58% in Equity and 3.42% in Cash & Equivalents.

Canara Robeco Infrastructure Fund

Canara Robeco Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from Canara Robeco Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Canara Robeco Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹883.84 crores, a 5-year CAGR of 33.74%, an exit load of 1% and an expense ratio of 0.96%. The SEBI risk category is Very High. Its asset allocation includes 95.96% in Equity and 4.04% in Cash & Equivalents.

LIC MF Infrastructure Fund

LIC MF Infrastructure Fund is a sectoral infrastructure mutual fund scheme from LIC Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

LIC MF Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹619.22 crores, a 5-year CAGR of 32.90%, an exit load of 1% and an expense ratio of 1.42%. The SEBI risk category is Very High. Its asset allocation includes 94.77% in Equity and 5.23% in Cash & Equivalents.

Bank of India Manufacturing & Infrastructure Fund

Bank of India Manufacturing & Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from Bank of India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Bank of India Manufacturing & Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹404.90 crores, a 5-year CAGR of 35.50%, an exit load of 1% and an expense ratio of 0.95%. The SEBI risk category is Very High. Its asset allocation includes 95.94% in Equity, 4.00% in Cash & Equivalents, 0.04% in Rights and 0.02% in Treasury Bills.

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What Are Infrastructure Mutual Funds?

Infrastructure Mutual Funds are specialized equity funds that primarily invest in companies involved in developing and maintaining infrastructure. These funds focus on sectors like construction, energy, transportation, telecommunications and utilities, aiming to capitalize on infrastructure growth.

These funds typically allocate a majority of their assets to stocks of companies engaged in infrastructure-related activities. This includes construction firms, engineering companies, power generators, road developers and telecom service providers.

Infrastructure Mutual Funds can be attractive to investors who believe in the long-term growth potential of infrastructure development. They offer exposure to a sector crucial for economic growth and are often supported by government initiatives.

Features Of Infrastructure Mutual Funds 

The main features of Infrastructure Mutual Funds include sector-specific focus, potential for long-term growth, correlation with economic development, exposure to government initiatives, and diversification across various infrastructure sub-sectors.

• Sector Focus: These funds concentrate investments in infrastructure-related companies, providing targeted exposure to this critical economic sector.

• Long-term Growth Potential: Infrastructure development is often a long-term process, offering the potential for sustained growth over extended periods.

• Economic Linkage: Infrastructure sector performance is closely tied to overall economic growth, potentially benefiting from economic expansion.

• Government Initiative Exposure: These funds can benefit from government policies and spending on infrastructure development projects.

• Sub-sector Diversification: Infrastructure funds often spread investments across various sub-sectors like transportation, energy and telecommunications.

Best Infrastructure Mutual Funds 

The table below shows the best Infrastructure Mutual Funds based on the lowest to highest expense ratio.

Name	Expense Ratio (%)	Minimum SIP (Rs)
Quant Infrastructure Fund	0.66	1000
Invesco India Infrastructure Fund	0.71	100
Bandhan Infrastructure Fund	0.85	100
DSP India T.I.G.E.R Fund	0.91	100
Bank of India Mfg & Infra Fund	0.95	100
Canara Rob Infrastructure Fund	0.96	100
Franklin Build India Fund	0.97	100
ICICI Pru Infrastructure Fund	1.18	100
Tata Infrastructure Fund	1.18	100
LIC MF Infra Fund	1.42	1000

Top Infrastructure Mutual Funds

The table below shows the Top Infrastructure Mutual Funds Based on the Highest 3Y CAGR.

Name	CAGR 3Y (Cr)	Minimum SIP (Rs)
ICICI Pru Infrastructure Fund	40.46	100
LIC MF Infra Fund	39.60	1000
DSP India T.I.G.E.R Fund	38.40	100
Quant Infrastructure Fund	38.14	1000
Bandhan Infrastructure Fund	37.96	100
Franklin Build India Fund	37.46	100
Canara Rob Infrastructure Fund	36.74	100
Invesco India Infrastructure Fund	36.65	100
Tata Infrastructure Fund	35.69	100
Bank of India Mfg & Infra Fund	33.83	100

Infrastructure Mutual Funds List

The table below shows the Infrastructure Mutual Funds List Based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Name	AMC	Exit Load (%)
Tata Infrastructure Fund	Tata Asset Management Private Limited	0.25
Quant Infrastructure Fund	Quant Money Managers Limited	0.5
Bandhan Infrastructure Fund	Bandhan AMC Limited	0.5
ICICI Pru Infrastructure Fund	ICICI Prudential Asset Management Company Limited	1
LIC MF Infra Fund	LIC Mutual Fund Asset Management Limited	1
DSP India T.I.G.E.R Fund	DSP Investment Managers Private Limited	1
Franklin Build India Fund	Franklin Templeton Asset Management (India) Private Limited	1
Canara Rob Infrastructure Fund	Canara Robeco Asset Management Company Limited	1
Invesco India Infrastructure Fund	Invesco Asset Management Company Pvt Ltd.	1
Bank of India Mfg & Infra Fund	Bank of India Investment Managers Private Limited	1

Infrastructure Mutual Funds Returns

The table below shows Infrastructure Mutual Funds Returns Based on 1Y return

Name	Absolute Returns – 1Y (%)	Minimum SIP (Rs)
LIC MF Infra Fund	81.59	1000
Bandhan Infrastructure Fund	80.63	100
Invesco India Infrastructure Fund	72.64	100
Quant Infrastructure Fund	70.62	1000
Canara Rob Infrastructure Fund	69.59	100
Franklin Build India Fund	67.09	100
DSP India T.I.G.E.R Fund	65.51	100
Bank of India Mfg & Infra Fund	63.53	100
ICICI Pru Infrastructure Fund	60.12	100
Tata Infrastructure Fund	58.19	100

Historical Performance Of Infrastructure Mutual Funds

The table below shows Historical Performance Of Infrastructure Mutual Funds Based on 5Y return

Name	CAGR 5Y (Cr)	Minimum SIP (Rs)
Quant Infrastructure Fund	41.88	1000
Invesco India Infrastructure Fund	35.82	100
Bandhan Infrastructure Fund	35.67	100
Bank of India Mfg & Infra Fund	35.50	100
ICICI Pru Infrastructure Fund	33.85	100
Canara Rob Infrastructure Fund	33.74	100
DSP India T.I.G.E.R Fund	33.58	100
LIC MF Infra Fund	32.90	1000
Franklin Build India Fund	32.41	100
Tata Infrastructure Fund	32.39	100

Factors To Consider When Investing In Infrastructure Sector Mutual Funds

When investing in Infrastructure Sector Mutual Funds, consider economic outlook, government policies, fund performance, manager expertise and expense ratio. These factors can significantly impact the fund’s performance and suitability for your investment portfolio.

• Economic Outlook: Infrastructure development is closely tied to economic growth. Assess economic projections and their potential impact on infrastructure spending.

• Government Policies: Infrastructure projects often depend on government initiatives. Evaluate current and potential future policies that could affect infrastructure development.

• Fund Performance: Analyze the fund’s historical performance against its benchmark and peer funds. Consider both short-term and long-term performance metrics.

• Manager Expertise: Research the fund manager’s experience in the infrastructure sector. Their expertise can significantly influence the fund’s performance.

• Expense Ratio: Compare expense ratios across different infrastructure funds. Lower fees can have a substantial impact on long-term returns.

How To Invest In the Best Infrastructure Mutual Funds?

To invest in the best Infrastructure Mutual Funds, start by researching funds with strong long-term performance. Consider factors like expense ratios, fund manager expertise and the overall outlook for infrastructure development. Align the investment with your financial goals and risk tolerance.

Choose between lump sum investments or Systematic Investment Plans (SIPs) based on your financial situation. SIPs can be particularly beneficial for sector-specific funds like infrastructure, allowing you to average out the impact of market volatility over time.

Open an account with Alice Blue. Complete the necessary documentation, including KYC requirements and initiate your investment. Regularly review your portfolio, keeping an eye on infrastructure sector trends and the fund’s performance relative to its benchmark.

Impact Of Market Trends On Infrastructure Mutual Funds In India

Market trends significantly impact Infrastructure Mutual Funds in India. Economic cycles, government policies, budget allocations and global infrastructure trends can all influence the performance of infrastructure companies, thereby affecting the returns of these funds.

During periods of increased government focus on infrastructure development, these funds may perform well. Conversely, economic slowdowns or reduced infrastructure spending can negatively impact fund performance.

How Infrastructure Sector Mutual Funds Perform In Volatile Markets?

In volatile markets, Infrastructure Sector Mutual Funds can experience significant fluctuations. These funds are sensitive to economic indicators, government policies and sector-specific news, which can lead to periods of high volatility in their performance.

During market downturns, infrastructure stocks may be affected due to concerns about project delays, funding issues, or reduced government spending. However, these funds may show resilience if infrastructure development is prioritized as a means of economic stimulus.

Benefits Of Infrastructure Mutual Funds

The main benefits of Infrastructure Mutual Funds include exposure to a crucial economic sector, the potential for long-term growth, diversification across infrastructure sub-sectors, participation in nation-building and the potential to benefit from government initiatives.

• Sector Exposure: These funds provide focused exposure to the infrastructure sector, a critical driver of economic growth.

• Long-term Growth: Infrastructure development is often a long-term process, offering the potential for sustained growth over extended periods.

• Sub-sector Diversification: Infrastructure funds typically invest across various sub-sectors like transportation, energy and telecommunications.

• Nation-building Participation: Investors can indirectly participate in nation-building efforts through infrastructure development.

• Policy Benefits: These funds can potentially benefit from government policies and initiatives focused on infrastructure development.

Risks Of Investing In Infrastructure Mutual Funds

The main risks of investing in Infrastructure Mutual Funds include project execution delays, regulatory challenges, economic sensitivity, long gestation periods and potential for cyclical performance. Investors should be aware of these risks before allocating funds to this sector.

• Execution Delays: Infrastructure projects often face delays due to various factors, which can impact the performance of related stocks.

• Regulatory Challenges: Changes in regulations or policies can significantly affect infrastructure projects and company performance.

• Economic Sensitivity: Infrastructure spending is often linked to economic conditions, making these funds vulnerable to economic downturns.

• Long Gestation Periods: Many infrastructure projects have long gestation periods, which can delay returns on investments.

• Cyclical Performance: The infrastructure sector can be cyclical, potentially leading to periods of underperformance compared to the broader market.

Contribution Of Infrastructure Mutual Funds To Portfolio Diversification

Infrastructure Mutual Funds can contribute to portfolio diversification by providing focused exposure to a crucial economic sector. While not diversified themselves, these funds can complement other investments in a well-rounded portfolio, potentially enhancing overall returns and risk-adjusted performance.

However, it’s important to balance the allocation to sector-specific funds like infrastructure with broader market investments. Overexposure to any single sector can increase portfolio risk and volatility.

Who Should Invest In Infrastructure Mutual Funds?

Infrastructure Mutual Funds are suitable for investors with a long-term investment horizon and a positive outlook on infrastructure development. These funds can be appropriate for those seeking exposure to the infrastructure sector and who are comfortable with the potential volatility associated with sector-specific investments.

Investors should have a time horizon of at least 5-7 years, given the long-term nature of infrastructure projects. It’s also beneficial to have some understanding of the infrastructure sector and its dynamics.

Impact Of Fund Manager Expertise On Infrastructure Mutual Funds In India Performance

Fund manager expertise can significantly impact the performance of Infrastructure Mutual Funds in India. Experienced managers with deep knowledge of the infrastructure sector can potentially identify promising projects, anticipate policy changes and navigate sector-specific challenges more effectively.

Skilled managers may also be better equipped to adjust the fund’s holdings in response to changing market conditions or government initiatives. Their expertise can be particularly valuable in a specialized sector like infrastructure, where understanding complex projects is crucial.

FAQs – Best Infrastructure Mutual Funds

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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.