Infrastructure mutual funds
What is Infrastructure Mutual Fund?
Infrastructure plays a very important role in the development of a country and so there are companies which are engaged in developing and providing infrastructure-based operations. Mutual fund schemes which invest in the stocks and securities of such infrastructure-based companies are called infrastructure mutual funds.
Now, when it comes to companies linked to infrastructural activities, there can be companies which are directly involved in infrastructure as well as companies which are indirectly involved with the same. The companies which deal in energy, power, real estate, metals, etc. are companies which are directly engaged in the development of the infrastructure in India while companies engaged in activities like banking, transportation, finance, etc. are indirectly involved in the infrastructure activities of the country. Basically, they both contribute but in different ways.
Infrastructure Fund is basically Sectoral Funds since it invests in a particular sector with a specific fund objective. So, the sector-specific infrastructure mutual funds usually have good potential for growth. However, when buying such a specialized mutual fund scheme, many investors often feel confused about choosing the best fund for their portfolio.
So, here are the top five infrastructure mutual funds which investors can opt for if they want to invest in the infrastructure segment –
1. L & T Infrastructure Fund
Backed by a reputed mutual fund house, L & T Infrastructure Fund is an open-ended equity sectoral fund which was launched in September 2007. As on 31st March 2019, the Assets under Management (AUM) of the fund stood at INR 1918 crores and the expense ratio for the direct plan was 1.02%, the fund follows the benchmark of NIFTY Infrastructure TRI.
2. HDFC Infrastructure Fund
HDFC is a leading name in the mutual fund segment and its infrastructure fund is one of the top rated infrastructure funds of India. The Assets under Management (AUM) as on 30th April 2019 stood at 828 crores. The expense ratio of the fund direct plan has a ratio of 1.83%.
3. IDFC Infrastructure Fund
IDFC Infrastructure Fund is another thematic equity mutual fund. The size of the fund is INR 955.69 crores while the expense ratio is 1.03%.
4. Franklin Build India Fund
Franklin Templeton is a leading mutual fund house with a variety of schemes. Its Build India Fund is good infrastructure fund which was launched in September 2009. The benchmark of the fund is S & P BSE India Infrastructure TRI. The Assets under Management stood at INR 1256 crores as on 31st March 2019.
5. Kotak Infrastructure and Economic Reforms Fund
The last name on the list is Kotak Infrastructure and Economic Reforms Fund As on 31st March 2019, the Assets under Management stood at INR 385 crores and the expense ratio of the fund was 1.26%.
So, if you are looking to diversify your financial portfolio and want to invest in sector-specific infrastructure funds, take your pick from the above-mentioned funds and you can earn good returns.