India is on the verge of an infrastructure boom. The country is experiencing massive growth in its infrastructure sector, thanks to increasing government investment and public-private partnerships, from new highways to modern airports. With all these developments, there's never been a better time to consider infrastructure mutual funds as part of your investment strategy.
But where should you start? The best infrastructure mutual funds offer a great way to capitalise on India’s economic growth while diversifying your portfolio. These funds invest in companies driving major projects across energy, transportation, and urban development—helping you tap into long-term growth opportunities.
In simple terms, infrastructure mutual funds are investment funds that focus on companies involved in developing and maintaining a nation's infrastructure. This includes sectors like transportation (roads, railways, airports), energy (power plants, renewable energy), telecommunications, and even urban development projects.
Investing in the best infrastructure mutual funds puts your money into the economy's backbone—projects essential for India’s growth. These funds collect money from investors like you and then allocate it to various infrastructure companies, providing a diversified way to invest in this high-potential sector without picking individual stocks.
Infrastructure mutual funds are a great option for investors looking for long-term growth and believe in the country's future development. With the government pushing for large-scale projects under initiatives like Smart Cities and Bharatmala, this sector is poised for continued expansion in 2024 and beyond.
Investing in infrastructure mutual funds in 2024 is a strategic way to benefit from India's growing infrastructure sector. Here are the key reasons:
Here is a list of the top 10 best infrastructure mutual funds for 2024. These funds have shown strong returns in the past three years and provide a balanced way to invest in key areas like energy, transport, and urban development.
| Best Infrastructure Mutual Funds in India | 3-Year Returns (%) |
|---|---|
| ICICI Pru Infrastructure Fund | 163.2 |
| HDFC Infrastructure Fund | 160.3 |
| DSP India T.I.G.E.R Fund-Reg | 145.0 |
| Bandhan Infrastructure Fund-Reg | 139.4 |
| Franklin Build India Fund | 138.0 |
| Invesco India Infrastructure Fund | 136.1 |
| Kotak Infra & Eco Reform Fund | 135.9 |
| Quant Infrastructure Fund | 132.7 |
| Tata Infrastructure Fund-Reg | 130.0 |
| HSBC Infrastructure Fund-Reg | 129.5 |
Below is an in-depth look at India's top infrastructure mutual funds for 2024. Each fund has its unique investment strategy, focus sectors, and performance history. We'll give detailed information for each fund, such as expense ratios, market caps, NAV, and returns.
ICICI Prudential Infrastructure Fund is one of the top-performing funds in the infrastructure sector and has consistently provided solid returns over the years. It invests in a mix of large-cap and mid-cap companies across sectors such as power, telecom, and transportation. Its investment strategy is aligned with India's infrastructure growth story, making it one of the best infrastructure mutual funds for long-term investors seeking exposure to this high-growth sector.
Fund Launch Date: August 31, 2005
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 58.1 | 162.2 | 325.6 |
Widely regarded as one of the best infrastructure mutual funds, the HDFC Infrastructure Fund focuses on companies involved in developing and maintaining infrastructure across India. This fund invests heavily in energy, transportation, and telecommunications sectors, aiming for long-term capital appreciation. Its strategy revolves around capitalizing on India's rapid infrastructure growth, making it a top choice for investors looking to benefit from both government projects and private sector initiatives.
Fund Launch Date: March 10, 2008
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 55.7 | 160.3 | 253.4 |
The DSP India T.I.G.E.R Fund is one of the best infrastructure mutual funds and stands out for its focus on economic reforms and infrastructure growth in India. T.I.G.E.R stands for "The Infrastructure Growth and Economic Reforms," and this fund invests in sectors that will benefit from India’s economic reforms, such as capital goods, construction, utilities, and transport.
Fund Launch Date: May 16, 2004
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 58.9 | 145 | 312.4 |
Also check: 10 Best EV Stocks in India 2024
Formerly known as the IDFC Infrastructure Fund, the Bandhan Infrastructure Fund primarily invests in physical infrastructure sectors like roads, energy, and construction. It takes a relatively conservative approach compared to other funds, making it ideal for risk-averse investors.
Fund Launch Date: March 28, 2011
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 71.1 | 139.4 | 336.4 |
Franklin Build India Fund focuses on long-term capital appreciation by investing in companies involved in infrastructure and infrastructure-related sectors. Its portfolio includes companies from the construction, engineering, and industrial sectors that are benefiting from government policies and India's growing demand for infrastructure.
Fund Launch Date: September 04, 2013
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 60.8 | 138 | 291.4 |
Invesco India Infrastructure Fund is a balanced option for investors looking for moderate risk. It invests in a diversified portfolio across various infrastructure-related sectors like energy, telecom, and construction. This fund focuses on large and mid-cap companies, giving investors exposure to stable, established companies as well as growing businesses.
Fund Launch Date: November 21, 2007
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 66.1 | 136.1 | 354.5 |
This fund has a unique focus on infrastructure as well as economic reforms. Kotak Infra & Eco Reform Fund invests in companies that benefit from both infrastructure growth and government reforms in India. It offers a balanced portfolio of large-cap and mid-cap companies operating in the construction, utilities, and engineering sectors.
Fund Launch Date: December 25, 2005
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 54.8 | 135.9 | 307.7 |
Quant Infrastructure Fund is known for its aggressive investment style, focusing on high-growth opportunities within the infrastructure sector. This fund is considered as one of the best infrastructure mutual funds because it has consistently delivered impressive returns, investing in companies across sectors like power, telecommunications, and transportation. It takes a high-risk, high-reward approach, which has attracted investors looking to capitalise on India's rapid infrastructure development.
Fund Launch Date: January 01, 2008
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 60.9 | 132.7 | 450 |
Tata Infrastructure Fund focuses on delivering long-term capital appreciation by investing in infrastructure sectors such as power, telecom, and construction. The fund maintains a well-diversified portfolio, spreading its investments across different sub-sectors of infrastructure to reduce risk while aiming for stable growth. It is suitable for investors looking for consistent returns over a longer period.
Fund Launch Date: December 31, 2004
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 53 | 130 | 296.1 |
HSBC Infrastructure Fund is designed for conservative investors looking for steady, low-risk returns. It primarily focuses on sectors like energy, transportation, and utilities. This fund aims to provide stable returns by investing in well-established companies with predictable cash flows and a solid growth outlook. While it may not offer the highest returns, it’s a safer bet for those looking for long-term investment in the infrastructure space.
Fund Launch Date: March 27, 2008
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 52.2 | 129.5 | 272.9 |
Infrastructure mutual funds offer unique advantages that can significantly boost your long-term financial growth. Here are some key benefits:
While infrastructure mutual funds offer promising returns, they do come with certain risks that investors should carefully consider:
Also check: 10 Best SWP Mutual Funds in India 2024
India's infrastructure landscape is evolving rapidly in 2024, creating opportunities for investors. Key trends include:
The Union Budget 2024-25 plays a pivotal role in driving infrastructure growth across sectors. Here's a breakdown of key allocations and goals impacting the industry:
Investing in Infrastructure Mutual Funds with Lakshmishree is simple and straightforward. Follow these quick steps to begin your investment journey:
The infrastructure sector in India is diverse, contributing to overall economic growth. Key segments include:
Investing in India's best infrastructure mutual funds can be a great strategy for long-term wealth creation, especially given the government's focus on infrastructure development. With sectors like transportation, energy, and telecom set to grow significantly, these funds offer both growth potential and diversification. If you're looking for a way to capitalise on India's infrastructure boom while managing risk, infrastructure mutual funds could be the right choice for your portfolio. Make sure to assess your risk appetite and financial goals before investing.
Best infrastructure mutual funds include Quant Infrastructure Fund, Franklin Build India Fund, and DSP India T.I.G.E.R Fund; these funds have shown solid returns over the years and focus on sectors benefiting from India's infrastructure growth.
The Quant Infrastructure Fund is frequently recognised as one of India's top-performing infrastructure mutual funds. It has delivered strong historical returns and offers exposure to high-growth infrastructure sectors, making it a popular choice for investors looking to capitalize on India’s development projects.
Infrastructure funds can be a good long-term investment, especially in a growing economy like India, where infrastructure is a key focus area for development. These funds can offer high returns due to government initiatives but also come with risks, such as sector concentration and market volatility.
Infrastructure mutual funds typically invest in sectors like transportation (roads, railways, airports), energy (renewable and non-renewable), telecommunications (5G and fibre networks), and urban development (smart cities, affordable housing). This diversified exposure to essential infrastructure sectors helps mitigate risks and capitalise on government projects.
Investing in infrastructure mutual funds is easy with platforms Lakshmishree. Simply open an account, complete your KYC, and explore the available infrastructure fund options. You can invest through a lump sum or set up a SIP (Systematic Investment Plan) based on your financial goals.
Disclaimer: This article is for educational purposes only and should not be considered financial advice. Always conduct your research and consider consulting with a financial advisor before making any investment decisions.
