Infrastructure funds are those sector funds that invest in companies that are either directly or indirectly involved in the infrastructure development in India. For instance, an IT sector fund invests only in IT companies, a banking sector fund only in banks, and so on. This one sector-only exposure makes them one of the riskiest mutual funds. Companies that are involved in the industry like metals, energy, estate, power, etc., are a part of the infrastructure mutual fund category.
Who Should Invest in infrastructure mutual funds?
Investors who are keen to invest in this fund and are risk-takers can invest in these funds. However, they are advised to check the performances of the scheme along with their AUM. Also, one should not forget that these funds are sector-specific funds and such funds are high in risk. Thus, an investor who has thorough knowledge about this sector and is experienced in equity Investing should only invest in this fund.
In the previous year, mutual fund schemes investing solely in infrastructure have provided an average return of 51.84 percent. Top performers in the category have achieved returns of up to 106% returns on SIP in 5 year.
Retail mutual fund investors can gain exposure to the infrastructure subject through two methods: thematic funds investing in infrastructure businesses and diversified equity funds.
Infrastructure Push under PM Gati Shakti Program
Under the new PM GatiShakti initiative, the Union Budget 2022 places a strong focus on infrastructure development. This new strategy, according to Finance Minister Nirmala Sitharaman, is a revolutionary method for economic growth and sustainable development powered by seven engines: roads, railways, airports, ports, mass transportation, waterways, and logistics infrastructure. Mutual fund advisers and fund managers feel that this drive will be good for infrastructure investments.
5 Top Performing Infrastructure Mutual Funds
These 5 are top-performing infrastructure mutual funds based on the return performance in the last 3 years. Among these 5 funds, the top 3 funds have out-performed the category average in all investment horizons and also given better annual average returns. While the other two also performed good in 1, 2, and 3 year annualized returns, their returns 5th year could not perform well compared to the category average returns in 5 years. Annualised returns below:
Annualised Returns
| Infrastructure Mutual Fund | 1-Year | 2-Year | 3-Year | 5-Year | Since Inception |
|---|---|---|---|---|---|
| Quant Infrastructure Fund - Direct Plan - Growth | 46.21% | 56.15% | 32.66% | 22.09% | 15.56% |
| BOI AXA Manufacturing & Infrastructure Fund - Direct Plan - Growth | 19.78% | 33.49% | 22.24% | 15.95% | 14.41% |
| Invesco India Infrastructure Fund - Direct Plan - Growth | 20.83% | 27.18% | 21.68% | 15.94% | 16.80% |
| Canara Robeco Infrastructure - Direct Plan - Growth | 20.82% | 29.08% | 18.46% | 11.55% | 13.74% |
| ICICI Prudential Infrastructure Fund - Direct Plan - Growth | 25.50% | 34.62% | 18.16% | 12.42% | 12.64% |
SIP- Absolute Returns
| Infrastructure Mutual Fund | 1-Year | 2-Year | 3-Year | 5-Year |
|---|---|---|---|---|
| Quant Infrastructure Fund - Direct Plan - Growth | 7.50% | 68.38% | 88.37% | 106.47% |
| BOI AXA Manufacturing & Infrastructure Fund - Direct Plan - Growth | 1.91% | 35.70% | 50.98% | 59.62% |
| Invesco India Infrastructure Fund - Direct Plan - Growth | 1.21% | 33.09% | 46.26% | 59.09% |
| Canara Robeco Infrastructure - Direct Plan - Growth | 3.99% | 37.54% | 46.00% | 49.65% |
| ICICI Prudential Infrastructure Fund - Direct Plan - Growth | 7.95% | 47.06% | 51.78% | 55.56% |
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
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