5 Best Performing Infrastructure Mutual Funds to invest in 2019

Top 5 Best Performing Infrastructure Mutual Funds to invest in India in 2019Best Performing Infrastructure Mutual Funds to invest in 2019


Now it Modi 2.0 Wave. Many experts believe that Banking and Infrastructure would be the best sectors to invest in 2019 in Modi 2.0 wave. Infrastrucure sector has been stable in the last 3 years. However it has shown signifant improvement in the last 3 months. This sector expected to excite investors in the next 2-3 years. Which are the Best Performing Infrastructure Mutual Funds to invest in 2019 in India? Which are the Top 5 Infrastructure Mutual Funds that are expected to perform well in the next 2-3 years.

Also Read: Best Bluechip Mutual Funds to invest in India

What are Infrastructure Mutual Funds?


If you are already aware, skip this section.

Infrastructure mutual funds are those sector funds which invest in stocks / companies that are either directly or indirectly involved in the infrastructure development in India. Companies from energy, power, metals, estate etc., are a part of infrastructure sector.

Why to invest in Infrastructure Mutual Funds now in India?


Modi’s Government focus has been infrastructure in the last 5 years. According to the recent budgets 2017-18 and 2018-2019, the Government of India has increased its infrastructure spending.  Government is expected to announce more reforms and increased spending even this year, hence the sector will continue to boom over the next 3-5 years.

How we filtered good Infrastructure mutual funds to invest now?


1) Infrastructure funds that gave highest returns in the last 10 years, 5 years and 3 years are considered. This would help us to know how these performed in various market cycles.

2) Infrastructure funds that has good star rating from Value Research Online.

3) Funds that has low beta is considered. This means that such fund would fall at lower pace compared to stock market correction.

4) In certain cases, we have considered Alpha. This means that how far fund would give higher returns compared to benchmark. Since it is sector fund, we felt, its alpha could be misleading or can give incorrect information, hence considered only in some cases.

Who can invest in Infrastructure Mutual Funds?


These sector funds invests in stocks that would benefit from Infrastructure spending. Hence such funds are very high risk. If you are high risk investor and willing to invest for 3-5 years time frame, you can invest part of your portfolio in such mutual funds. Low risk investors and investors who want to invest for long term should stay away from such funds.

Best Performing Infrastructure Mutual Funds to invest in 2019 India


Let us quickly jump into some of the good Infrastructure mutual funds that one can invest in India.

#1 – Franklin Build India Fund


Strategy of the Fund

The 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.

Fund Performance

This fund gave 19% annualized returns in the last 5 years and 15% annualized returns in the last 3 years.

This fund is running on Modi 2.0 Wave expecting to for higher spending and gave 17% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 0.71. This means its volatility is lower than benchmark.

Its Alpha is 3.6. It means that this would be able to generate 3.6% higher returns compared to its benchmark.

What’s the portfolio of this fund?

ICICI Bank, SBI, Axis Bank, HDFC Bank, Bharti Airtel, BPCL, Ultratech Cement, NTPC, KEI Industries, Petronet LNG, ACC, JK Cement etc.,

Why to invest in this fund?

This fund is consistent performer and gave 17% annualized returns in the last 9.5 years. Value Research rates this fund as 5 Star. This fund has lower Beta which is good during volatile markets. This fund has high alpha and can give higher returns compared to its benchmark. This is one of the Best Performing Infrastructure Mutual Funds to invest in 2019 in India.

#2 – Kotak Infrastructure and Economic Reform Fund


Strategy of the Fund

The Scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms.

Fund Performance

This fund gave 12% annualized returns in the last 10 years, 13% annualized returns in the last 5 years and 11% annualized returns in the last 3 years.

This fund is running on Modi 2.0 Wave expecting to for higher spending and gave 16% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 0.79. This means its volatility is lower than benchmark.

Its Alpha is -1. It means that this would be able to generate 1% negative returns compared to its benchmark.

What’s the portfolio of this fund?

Shree Cement, Larsen & Toubro, Ultratech Cement, Indraprastha Gas, Solar Industries, GE Power India, Thermax, Supreme Industries etc.,

Why to invest in this fund?

This fund is consistent performer and gave 12% annualized returns in the last 10 years. Value Research rates this fund as 4 Star. This fund has lower Beta which is good during volatile markets. However this fund has 1% negative alpha which is small concern. However, considering the consistent performance, one can invest in this Best Performing Infra Fund in 2019.

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#3 – DSP T.I.G.E.R. Fund


Strategy of the Fund

The fund seeks to 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.

Fund Performance

This fund gave 11% annualized returns in the last 5 years and 13% annualized returns in the last 3 years.

This fund is running on Modi 2.0 Wave expecting to for higher spending and gave 19% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 0.89. This means its volatility is lower than benchmark.

Its Alpha is 0.79. It means that this would be able to generate 0.79% higher returns compared to its benchmark.

What’s the portfolio of this fund?

ICICI Bank, SBI, Axis Bank, L&T, HDFC Bank, NTPC, KNR Constructions, Indusind bank, Siemens, Kalpataru Power Trans, Ashoka Buildcon, ACC, Tata power etc.,

Why to invest in this fund?

This fund is consistent performer and gave 16% annualized returns since inception in 15 years. Value Research rates this fund as 4 Star. This fund has lower Beta which is good during volatile markets. This fund has high alpha and can give higher returns compared to its benchmark. This is one of the Top Performing Infra Mutual Funds to invest now.

#4 – Tata Infrastructure Fund


Strategy of the Fund

The scheme aims to provide income distribution and medium to long term capital gains by investing predominantly in equity or equity related instruments of the companies in the infrastructure sector.

Fund Performance

This fund gave 11% annualized returns in the last 5 years and 12% annualized returns in the last 3 years.

This fund is running on Modi 2.0 Wave expecting to for higher spending and gave 17% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 0.83. This means its volatility is lower than benchmark.

Its Alpha is -0.69. It means that this would be able to generate 0.69% negative returns compared to its benchmark.

What’s the portfolio of this fund?

L&T, ICICI Bank, Astral Poly Technik, Shree Cement, KNR Constructions, ONGC, Sadhbhav Engineering, Power Grid Corp etc.,

Why to invest in this fund?

This fund is consistent performer and gave 13% annualized returns since inception in 15 years. Value Research rates this fund as 3 Star. This fund has lower Beta which is good during volatile markets. This is one of the Top Performing Infra Funds to invest now in 2019.

Also Read: Best Mutual Funds Portfolio to invest for next 8-10 years

#5 – SBI Infrastructure Fund


Strategy of the Fund

The fund’s investment criteria would be to invest in equity stocks of those companies which are either directly or indirectly engaged in infrastructure growth in the Indian economy and aims at long term growth in capital.

Fund Performance

This fund gave 11% annualized returns in the last 5 years and 11% annualized returns in the last 3 years.

This fund is running on Modi 2.0 Wave expecting to for higher spending and gave 18% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 0.77. This means its volatility is lower than benchmark.

Its Alpha is -0.7. It means that this would be able to generate 0.7% negative returns compared to its benchmark.

What’s the portfolio of this fund?

L&T, Bharti Airtel, Kennametal India, Eligi Equipments, NTPC, ABB, JMC Projects, Interglobe Aviation, Axis Bank etc.,

Why to invest in this fund?

This fund is consistent performer and gave 11% annualized returns in the last 10 years. Value Research rates this fund as 3 Star. This fund has lower Beta which is good during volatile markets. This is one of the Good Infra Funds to invest now in India in 2019.

List of 5 Best Perfoming Infrastructure Mutual Funds to invest in 2019 in India


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Suresh KP

Your Friend in investment advice

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