Infrastructure funds are equity-oriented thematic mutual funds that have emerged as attractive investment options by providing long-term growth prospects by investing in infrastructure-focused companies. Also, these companies are showing huge returns lately with the topper in one-year returns (HDFCInfrastructure Fund) providing a whopping 84.50 per cent returns.
Generally, these funds invest 80 per cent of their portfolio in equity and equity-related instruments in the infrastructure theme. Infrastructure funds may also invest 0 to 20 per cent, in other equity and equity-related instruments, for diversification and another 20 per cent in debt and money market instruments. According to the Association of Mutual Funds in India (AMFI) data, 14 schemes in this category have completed five years in the market, among which again Quant Infrastructure Fund has emerged at the top with 37.39 per cent.
Quant Infrastructure Fund: Undoubtedly this fund is the topper in the category with the second-highest 1-year return of 83.59 per cent but over other tenures, it beats its competitors. Over 3 and 5 years, it maintains exceptional performance with returns of 42.77 per cent and 37.39 per cent, respectively. In 10 years, it boasts a topper-in category of 23.87 per cent, reflecting consistency in the long term. Except for a 3-year tenure and one year when it got the second-best performance, it is the topper in all other tenures.
HDFC Infrastructure Fund: This infrastructure fund showcases the highest returns over 1 year at 84.50 per cent. Over 3 years, it demonstrates exceptional performance with a return of 42.45 per cent, but its returns over longer tenures are not in the top 5, with 21.89 per cent over 5 years and 15.29 per cent over 10 years.
Bandhan Infrastructure Fund: Bandhan Infrastructure Fund clocked top 5 performances across open, three and five-year returns, reflecting consistency. It has a whopping one-year return of 83.52 per cent. Over 3 years, it maintains a return of 38.58 per cent, and over 5 and 10 years, it clocked 26.65 per cent and 19.75 per cent respectively.
Invesco India Infrastructure Fund: This fund also offered top 5 performances across three tenures, showing consistency. Its one-year return is at 76.93 per cent and its performance over longer periods at 5, and 10 years at 29.40 per cent, and 22.53 per cent respectively shows consistency.
ICICI Prudential Infrastructure Fund: ICICI Prudential Infrastructure Fund with the highest AUM of Rs 5,041.95 crore, stands as a top performer in the infrastructure fund segment. It has the highest three-year returns at 43.41 per cent and the third-highest 5-year returns at 28.08 per cent.
