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Infrastructure Mutual Funds English

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Best Infrastructure Mutual Funds

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

NameAUM (Cr)NAV (Rs)Minimum SIP (Rs)
ICICI Pru Infrastructure Fund5703.04207.55100
DSP India T.I.G.E.R Fund4896.20365.95100
Quant Infrastructure Fund4103.6146.131000
Franklin Build India Fund2738.26165.10100
Tata Infrastructure Fund2479.68210.98100
Bandhan Infrastructure Fund1934.0664.91100
Invesco India Infrastructure Fund1470.2679.95100
Canara Rob Infrastructure Fund883.84182.21100
LIC MF Infra Fund619.2258.601000
Bank of India Mfg & Infra Fund404.9068.19100

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.

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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.

NameExpense Ratio (%)Minimum SIP (Rs)
Quant Infrastructure Fund0.661000
Invesco India Infrastructure Fund0.71100
Bandhan Infrastructure Fund0.85100
DSP India T.I.G.E.R Fund0.91100
Bank of India Mfg & Infra Fund0.95100
Canara Rob Infrastructure Fund0.96100
Franklin Build India Fund0.97100
ICICI Pru Infrastructure Fund1.18100
Tata Infrastructure Fund1.18100
LIC MF Infra Fund1.421000

Top Infrastructure Mutual Funds

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

NameCAGR 3Y (Cr)Minimum SIP (Rs)
ICICI Pru Infrastructure Fund40.46100
LIC MF Infra Fund39.601000
DSP India T.I.G.E.R Fund38.40100
Quant Infrastructure Fund38.141000
Bandhan Infrastructure Fund37.96100
Franklin Build India Fund37.46100
Canara Rob Infrastructure Fund36.74100
Invesco India Infrastructure Fund36.65100
Tata Infrastructure Fund35.69100
Bank of India Mfg & Infra Fund33.83100

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.

NameAMCExit Load (%)
Tata Infrastructure FundTata Asset Management Private Limited0.25
Quant Infrastructure FundQuant Money Managers Limited0.5
Bandhan Infrastructure FundBandhan AMC Limited0.5
ICICI Pru Infrastructure FundICICI Prudential Asset Management Company Limited1
LIC MF Infra FundLIC Mutual Fund Asset Management Limited1
DSP India T.I.G.E.R FundDSP Investment Managers Private Limited1
Franklin Build India FundFranklin Templeton Asset Management (India) Private Limited1
Canara Rob Infrastructure FundCanara Robeco Asset Management Company Limited1
Invesco India Infrastructure FundInvesco Asset Management Company Pvt Ltd.1
Bank of India Mfg & Infra FundBank of India Investment Managers Private Limited1

Infrastructure Mutual Funds Returns

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

NameAbsolute Returns – 1Y (%)Minimum SIP (Rs)
LIC MF Infra Fund81.591000
Bandhan Infrastructure Fund80.63100
Invesco India Infrastructure Fund72.64100
Quant Infrastructure Fund70.621000
Canara Rob Infrastructure Fund69.59100
Franklin Build India Fund67.09100
DSP India T.I.G.E.R Fund65.51100
Bank of India Mfg & Infra Fund63.53100
ICICI Pru Infrastructure Fund60.12100
Tata Infrastructure Fund58.19100

Historical Performance Of Infrastructure Mutual Funds

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

NameCAGR 5Y (Cr)Minimum SIP (Rs)
Quant Infrastructure Fund41.881000
Invesco India Infrastructure Fund35.82100
Bandhan Infrastructure Fund35.67100
Bank of India Mfg & Infra Fund35.50100
ICICI Pru Infrastructure Fund33.85100
Canara Rob Infrastructure Fund33.74100
DSP India T.I.G.E.R Fund33.58100
LIC MF Infra Fund32.901000
Franklin Build India Fund32.41100
Tata Infrastructure Fund32.39100

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.

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.

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FAQs – Best Infrastructure Mutual Funds

1. What Are Infrastructure Mutual Funds?

Infrastructure mutual funds are sector-specific funds that invest in companies involved in the infrastructure sector, such as energy, transportation, telecommunications and construction. These funds aim to benefit from the growth in infrastructure development and typically carry higher risk due to sector concentration.

2. What Are The Top 5 Infrastructure Mutual Funds in India?

Top 5 Infrastructure Mutual Funds India #1: ICICI Pru Infrastructure Fund
Top 5 Infrastructure Mutual Funds India #2: DSP India T.I.G.E.R Fund
Top 5 Infrastructure Mutual Funds India #3: Quant Infrastructure Fund
Top 5 Infrastructure Mutual Funds India #4: Franklin Build India Fund
Top 5 Infrastructure Mutual Funds India #5: Tata Infrastructure Fund

These funds are listed based on the Highest AUM.

3. What Are The Best Infrastructure Mutual Funds?

The best infrastructure mutual funds based on expense ratio include Quant Infrastructure Fund, Invesco India Infrastructure Fund, Bandhan Infrastructure Fund, DSP India T.I.G.E.R Fund and Bank of India Mfg & Infra Fund. These funds focus on infrastructure-related sectors, providing growth opportunities for investors seeking sector-specific exposure.

4. How To Invest In Infrastructure Mutual Funds?

To invest in Infrastructure Mutual Funds, research funds with strong long-term returns in the infrastructure sector. Open an account with Alice Blue, complete KYC requirements and start investing through lump sum or SIP options.

5. Is It Safe To Invest In Infrastructure Mutual Funds?

Investing in Infrastructure Mutual Funds carries risks like any equity investment. While these funds offer the growth potential, they can be volatile. Assess your risk tolerance and investment goals before investing. Consider them as part of a diversified portfolio.

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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.

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