Top 5 Infrastructure Mutual funds to invest in 2017-2018

Top 5 Infrastructure Mutual funds to invest in 2017-2018-minTop 5 Infrastructure Mutual funds to invest in 2017-2018


3 years back, I have written about how Infrastructure sector going to be for 3-4 years and why investors need to invest in some of the best infrastructure mutual funds. Some of the top infra mutual funds have doubled the investments in the last 2 to 3 years. Govt. of India has increased its infra spending in last week Budget 2017-2018. Should you invest in infra mutual funds now? Which are the top mutual funds in Infrastructure segment which you can bet on? How long should you hold these Infra mutual funds? In this article, I would provide analysis about Top 5 Infrastructure Mutual funds to invest in 2017-2018.

Also Read: Best Sector Mutual Funds to invest to double your money in short term to medium term

What are Infrastructure Mutual Funds?


Infrastructure mutual funds are those which invests in companies that either directly or indirectly involved in Infrastructure development in India. Companies which are in the industry like Energy, Real Estate, Power, Metals etc., would fall under the Infrastructure segment. Companies under Banking, Finance, Transportation, sector etc., would contribute indirectly to Infrastructure development. Infrastructure mutual funds would invest in all such stocks.

How was Infrastructure sector 5 years back and how is it now?


Infrastructure stocks have crashed heavily in the 2008 market crash. Infrastructure mutual funds have seen the huge negative impact during that time till 2014. Though Sensex has recovered and reached new highs in 2014, Infrastructure stocks were still lagging behind as there was no effort till then for Infrastructure development. However, it was a turning point in 2014 where new government got formed and its focus was in Infra development. This is where I recommended to invest in Infra Mutual Funds in 2014. These have provide good returns to investors. However with Govt. of India increasing its spending on Infra year on year, Infrastructure Sector would continue to grow in next few years.

How I picked up these Top Infrastructure Mutual funds?


I have picked these infra mutual funds based on below parameters:

  • Infra funds that provided highest returns in last 5 years, 3 years and 1 year and even 1 month (before and after budget impact).
  • Funds that are ranked by Value Research Online (VRO) as 5 Star, 4 Star and 3 Star indicating them as high rated funds.
  • Funds that are ranked by Crisil as Rank-1, Rank-2 and Rank-3 where Crisil indicated them as high rated funds.
  • Funds where Assets Under Management (AUM) is over Rs 100 Crores. This proves investor confidence in the fund.

Are these Infra Funds high risk?


These funds invests in only in one sector i.e. Infrastructure, hence are high risk. One need to keep an eye on the sector. These are NOT for long term investors. These are for short term high risk investors only.

Also Read: Scripbox Vs FundsIndia – Which one you should pick for your mutual fund investments?

Top 5 Infrastructure Mutual funds to invest in 2017-2018


Below are some of the top infrastructure mutual funds which you can look to invest now in 2017.

Top#1 – Franklin Build India Fund


Overview: This MF scheme aims to generate capital appreciation by investing in companies engaged either directly or indirectly in infrastructure related activities. Infrastructure related activities include development, operations, management and maintenance of various infrastructures such as transportation, energy, resources & other infrastructure.

Why should you invest: This Mutual fund performed well in short term to medium term of 1 to 5 years. It gave 25% annualized returns in last 5 years, 36% annualized returns in last 3 years and 40% returns in last 1 year. If you would have invested Rs 5,000 per month through SIP in last 5 years, your investment would have been Rs 60,000 and the investment would have grown to Rs 115,000.

Value Research Online ranks it as 5-Star and Crisil as Rank-1.

With Govt. of India allocating higher spending in Infrastructure, Infra stocks are expected to perform well in next 3-5 years.

This is one of the best Infra Mutual fund to invest in 2017-2018.

Top#2 – L&T Infrastructure Mutual Fund


Overview: The scheme objective is to generate capital appreciation by investing primarily in companies that are engaged in the area of infrastructure. The fund would select fundamentally sound companies, having potential to deliver superior earning growth in long run.

Why should you invest: This Mutual fund even performed well in short term to medium term of 1 to 5 years. It gave 17% annualized returns in last 5 years, 33% annualized returns in last 3 years and 41% returns in last 1 year. If you would have invested Rs 5,000 per month through SIP in last 5 years, your investment would have been Rs 60,000 and the investment would have grown to Rs 104,000.

Value Research Online ranks it as 4-Star and Crisil as Rank-1.

This is one of the top Infrastructure Mutual funds to invest in 2017-2018.

Top#3 – Kotak Infrastructure and Economic Reforms Fund


Overview: The MF scheme aims to generate long term capital appreciation by investing in equity and equity related securities of stocks that are engaged in infrastructure and unfolded economic reforms leading to economic development of India.

Why should you invest: This Mutual fund performed well in short term to medium term of 1 to 5 years. It gave 16% annualized returns in last 5 years, 33% annualized returns in last 3 years and 34% returns in last 1 year. If you would have invested Rs 5,000 per month through SIP in last 5 years, your investment would have been Rs 60,000 and the investment would have grown to Rs 100,000.

Value Research Online ranks it as 4-Star and Crisil as Rank-2.

This is one of the top Infrastructure Mutual funds to invest in 2017-2018.

Also Read: Top Performing Midcap Mutual funds in India

Top#4 – DSP Blackrock India TIGER Fund


Overview: The scheme aims generate capital appreciation by investing in equity and equity related securities of corporates that could benefit from ongoing structural changes and economic reforms in the country. The portfolio is well diversified across sectors, market capitalisation and between private & PSU companies and will get benefit from increased government spending on infrastructure and increased private participation and revival in the corporate capex cycle.

Why should you invest: This Mutual fund performed well in short term to medium term of 1 to 5 years. It gave 14% annualized returns in last 5 years, 28% annualized returns in last 3 years and 35% returns in last 1 year. If you would have invested Rs 5,000 per month through SIP in last 5 years, your investment would have been Rs 60,000 and the investment would have grown to Rs 94,000.

Value Research Online ranks it as 3-Star and Crisil as Rank-3.

This is one of the good Infrastructure Mutual funds to invest in 2017.

Top#5 – Birla SL Infrastructure Mutual Fund


Overview: The scheme aims to provide capital appreciation by investing predominantly in a diversified portfolio of equity and equity related securities of companies that are participating in the growth and development of infrastructure in India. It also invest a small portion of its corpus in money market instruments & in ADG/GDR.

Why should you invest: This Mutual fund performed well in short term to medium term of 1 to 5 years. It gave 15% annualized returns in last 5 years, 27% annualized returns in last 3 years and 32% returns in last 1 year. If you would have invested Rs 5,000 per month through SIP in last 5 years, your investment would have been Rs 60,000 and the investment would have grown to Rs 94,000.

Value Research Online ranks it as 4-Star and Crisil as Rank-3.

This is one of the top 5 Infrastructure Mutual funds to invest in India in 2017.

Here is the summary of Top 5 Infra Mutual Funds to invest in IKndia in 2017-2018.


List of Top 5 Infrastructure Mutual funds to invest in 2017-2018-min

Also Read: Best Mutual Funds for your idle money

Your funds are not listed in top 5 Infra Mutual funds list above?


Here are 3 more funds which are doing good. If you have invested in them stay invested.

 Some more top Infrastructure Mutual funds to invest in 2017-2018

Conclusion: Infrastructure sector is looking positive. Hence, I feel investors can look to invest in these top 5 infrastructure mutual funds for the next couple of years so that your money would grow at a faster pace. Instead of investing in lump sum investment, look to invest through SIP.

Happy investing in Infrastructure Mutual Funds !!!

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Suresh

Top 5 Infrastructure Mutual funds to invest in 2017-2018

5 comments

  • Aditya Singh

    Hi Suresh,

    FOA .. thanks for all the superb articles that you have posted over the years.. I think this is my first comment on your blog but I am huge fan of this blog for quite some time now.

    I was just looking at these infra funds holding portfolio.

    so here is my query .. if you look at Franklin Build India fund portfolio which has majority of its investment in Banks almost 40% though it claims to be a infra fund
    vs
    L&T infra fund which has its majority in the infra companies. So the question is if the infra sector is going to boom why to invest in a fund which is heavily invested in banks ? I will invest in a fund which is based on infra companies like the later one.

    Suggestion Please.

  • Subir Nag

    top 5 Infrastructure Mutual Fund probably best SIP advise in this financial situation where Bank’s Recurring deposit interest is too low. It is very very useful advise for small investor. Thanks a lot.

  • A VISWANATHAN

    Dear Shri Suresh

    I have invested Rs.40000/= in SBI Pharma Fund Direct Plan -Option Growth on 15.12.2015. But till date there is no growth in NAV and its present value is Rs.37604/- (as on 10.02.2017) showing a loss of Rs.2396/-.

    Please enlighten me whether I can still hold or change to any other mutual fund.

    Eagerly waiting for your reply.

    A VISWANATHAN

    • Hi Viswanath, You can hold. 1) You should have invested them through SIP 2) Since pharma funds taking beating due to various reasons, this fund is showing negative returns. You can hold this for some more time.

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