Top 5 Infra Mutual Funds to invest in 2018-2019

Top 5 Infra Mutual Funds to invest in 2018-2019Top 5 Infra Mutual Funds to invest in 2018-2019


In the last 1 month, stock markets are in correction mode. Majority of Infra Stocks are down now. Top Infra Mutual Funds NAV has declined between 1% to 7% in the last 1 month due to stock market correction. Do Infra Sector is still looking promising? Is it the right time to invest in Infra Mutual Funds? Which are the top 5 mutual funds in Infrastructure segment which you can bet on? Should you invest thru SIP or lumpsum in these Top 5 Infra Mutual Funds in 2018? In this article, I would provide analysis about Top 5 Infra Mutual funds to invest in 2018 in India.

Also Read: Top Sector Mutual Funds to invest in India now in 2018

What are Infrastructure Mutual Funds?


If you are already familiar about Infra Funds, you can skip this section.

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 is the Infra Sector looking now?


After the new govt formed 4 years back, they have been focusing on Infrastructure Sector. Recent Budget also indicates that Govt of India is increasing its spending on Infra Sector year on year. For the next 2-3 years Infra sector would continue to be on focus.

Hence, one can invest in Infra mutual funds which would invest in Infra Stocks. However, picking good Infra Mutual Funds is key.

How I picked up these Top 5 Infra Mutual Funds to invest in 2018-2019?


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.

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 rated them as good funds.

Funds where Assets Under Management (AUM) is over Rs 100 Crores. This proves investor confidence in the fund.

In the last 1 month, Infra sector stocks took beating along with other large cap stocks due to market correction. Hence one should not compare the last 1 month correction. However, they need to take into consideration of any downside that happened in assessing the defence strategy of the fund.

Are these Infra Funds high risk?


These funds invests in only in one sector i.e. Infrastructure, hence these 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 who are willing to invest for 1-3 years tenure.

Top 5 Infra Mutual Funds to invest in 2018-2019


Below are some of the top infrastructure mutual funds which you can look to invest now in 2018-2019.

Top#1 – Franklin Build India Fund


Top Infra Mutual Funds for 2018 - Franlin 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 26% annualized returns in last 5 years, 14% annualized returns in last 3 years and 22% 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-3.

With Govt. of India allocating higher spending in Infrastructure, Infra stocks are expected to perform well in next 2-3 years. This is one of the best Infra Mutual fund to invest in 2018.

Top#2 – L&T Infrastructure Mutual Fund


Top Infra Mutual Funds for 2018 - L&T Infra 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 24% annualized returns in last 5 years, 19% 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 119,000.

Value Research Online ranks it as 5-Star and Crisil as Rank-1. This is one of the top Infrastructure Mutual funds to invest in 2018.

Top#3 – Kotak Infrastructure and Economic Reforms Fund


Top Infra Mutual Funds for 2018 - Kotak Infra and eco reform 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 22% annualized returns in last 5 years, 13% annualized returns in last 3 years and 23% 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 105,000.

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 2018-2019.

Also read: Best Large Cap Mutual Funds to invest in 2018

Top#4 – Aditya Birla SL Infrastructure Mutual Fund


Top Infra Mutual Funds for 2018 - Aditya BSL Infra FundOverview: 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 20% annualized returns in last 5 years, 12% annualized returns in last 3 years and 26% 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-3. This is one of the best Infrastructure Mutual funds to invest in India in 2018.

Top#5 – IDFC Infra Mutual Fund


Top Infra Mutual Funds for 2018 - IDFC Infra FundOverview: The scheme seeks to generate long-term capital growth through an active diversified portfolio of predominantly equity and equity related instruments of companies that are participating in and benefiting from growth in Indian infrastructure and infrastructural related activities.

Why should you invest: This Mutual fund performed well in short term to medium term of 1 to 5 years. It gave 18% annualized returns in last 5 years, 18% annualized returns in last 3 years and 33% 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 105,000.

Value Research Online ranks it as 4-Star and Crisil as Rank-2. This is one of the good Infrastructure Mutual funds to invest in 2018.

Here is the summary of Top 5 Infra Mutual Funds to invest in India in 2018-2019


List of Top 5 Infra Mutual Funds to invest in 2018 in India

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


Here are 4 more good funds in Infra Sector. If you are investing in these funds, continue to invest in them.

1) DSP BR India T.I.G.E.R. Fund

2) Tata Infrastructure Fund

3) Reliance Diversified Power Fund

4) Canara Robecco Infra Fund

Also Read: Best Mutual Funds to invest in 2018 from Rural Segment

Should you Invest in Infra Mutual Funds through SIP or Lumpsum?


Since Infra Stocks are taking correction now, you can invest in lumpsum now and durin every SENSEX correction of 1,000 to 2,000 points. However, investing through SIP could be always a good idea during volatile markets.

Conclusion: Infrastructure sector is looking positive. Hence, I feel investors can look to invest in these top 5 Infra 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 Best Infra Mutual Funds in 2018 !!!

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Suresh

Top 5 Infra Mutual Funds to invest in 2018-2019

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