6 best-performing infrastructure investment trusts to invest in in 2024

India's recent focus on promoting infrastructure development is a notable trend with significant consequences. The interim budget for 2024 highlighted a focus on infrastructure development and included a historic budget. INR11.11 billion (3.4% of GDP). A number of important announcements were made across a variety of areas. Furthermore, the link between India's infrastructure development and the promotion of foreign investment through bilateral investment treaties (BITs) is expected to strengthen India's economic strategy.

Focus on infrastructure-themed funds

The construction, logistics and transportation sectors are certainly critical industries that should be monitored for increased foreign involvement, spurring India's growing focus on infrastructure development. Investing in individual stocks involves risk. Therefore, allocating funds to mutual funds operating in the infrastructure sector can be a wise strategy for long-term wealth growth.

Mutual funds that invest in telecommunications networks, transportation systems, and utilities such as gas, electricity, and water fall into the infrastructure category. This widens your investment horizon when choosing the right fund and increases the strength of your portfolio. Some of the best mutual funds in the infrastructure space that can help you grow your wealth over the long term include:

Canara Robeco Infrastructure Fund

Canara Robeco Infrastructure Fund, offered by Canara Robeco Mutual Fund, focuses on investing in companies that are actively addressing and benefiting from India's growing infrastructure scenario. Launched in December 2005, the fund adheres to a 'growth' style and has a 'very high' risk meter rating. The fund has a relatively low portfolio turnover compared to other infrastructure funds, perhaps suggesting a focus on a long-term investment strategy.

An attractive aspect of investing in this fund is that it does not consistently outperform its benchmark (S&P BSE India Infrastructure TRI) over different time periods. Like other infrastructure funds, this fund is subject to high risks due to sector-specific volatility. Nevertheless, compared to certain peers, the fund has lower assets under management (AUM), which may impact its diversification and negotiation ability.

Bandhan Infrastructure Fund

Bandhan Infrastructure Fund, offered by Bandhan Mutual Fund, primarily invests in companies that are actively involved in and benefit from India's growing infrastructure sector. The fund was established in December 1999 and has a commendable track record, serving investors seeking long-term capital growth through infrastructure exposure.

For investors looking to tap into India's expanding infrastructure sector, Bandhan Infrastructure Fund offers an interesting option. The objective of the scheme is to achieve long-term capital growth by investing in companies that are actively involved in and benefit from India's infrastructure development. The company primarily invests in stocks and stock-related products.

An examination of the fund's portfolio composition reveals a focus on sectors such as transportation, power, construction, real estate, and other infrastructure-related industries. In addition, the Fund may allocate investments to companies indirectly related to infrastructure, such as companies involved in the supply of materials and equipment.

Quant Infrastructure Fund

For investors looking to participate in India's burgeoning infrastructure sector, the Quant Infrastructure Fund offers another attractive option. Its objective is to enhance the value of capital and provide long-term growth opportunities by investing in a portfolio of companies concentrated in India's infrastructure sector. The fund's portfolio structure is very similar to other funds in the sector, with a focus on industries such as transportation, power, construction, real estate and other infrastructure-related sectors. Additionally, investments will be made in companies involved in the supply of materials and equipment.

UTI Infrastructure Fund

UTI Infrastructure Fund, offered by UTI Mutual Fund, is a trusted mutual fund designed to achieve long-term capital growth through investments in companies operating in India's infrastructure sector. Established in November 2002, the fund currently has a commendable track record and significant assets under management.

The fund has a rich history of over 20 years in the infrastructure sector and has demonstrated the ability to successfully navigate diverse market cycles. The idea behind the injection of capital into this fund is to increase capital value by allocating funds primarily to equity and equity-related securities of companies directly or indirectly engaged in infrastructure-related activities within the Indian economy. The focus is on creating. The fund is sector-based and thematically driven, providing focused exposure to infrastructure sectors that benefit from India's continued development initiatives.

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund, offered by ICICI Prudential Mutual Fund, seeks to generate capital growth by investing in companies that are involved in and benefit from India's growing infrastructure sector. Introduced in July 2005, it boasts significant AUM while holding a 'high' risk rating.

Our investment objective is to seek capital growth by investing in the equity and equity-related securities of companies primarily involved in, or expected to benefit from, infrastructure-related activities. The fund boasts a diversified portfolio that invests in multiple infrastructure-related sectors such as transportation, power, construction and real estate, providing broad exposure. The large amount of assets under management in direct plans reflects investor confidence and potential bargaining power. Nevertheless, the portfolio turnover rate is relatively high compared to other infrastructure funds, potentially increasing costs and impacting stability.

SBI Infrastructure Fund

SBI Infrastructure Fund, offered by SBI Mutual Fund, aims to enhance long-term capital value by investing in companies that are actively engaged in and benefiting from India's growing infrastructure sector. Introduced in July 1996, the fund allocates investments primarily in equity and equity-related instruments of companies that are directly or indirectly involved in infrastructure-related activities within the Indian economy.

The fund has an extensive track record and is rated “Very High'' on Risk Meter. Its large amount of assets under management indicates investor confidence and potential bargaining power. With an equity-focused portfolio, this fund invests primarily in equities and may offer greater growth prospects compared to funds. A balanced infrastructure fund.

The performance speaks for itself

The following table shows some of the top mutual funds in the infrastructure space and their 10-year returns, highlighting the need for investors to maintain the status quo and not succumb to the frequent highs and lows that this sector causes. doing.

Infrastructure funds require very long investment horizons, typically 7 to 10 years, due to their high risk and potential volatility. This highlights the need for a high risk tolerance to survive market fluctuations and uncertainties. Investors considering the risks inherent in thematic funds should have a clear understanding of the risks associated with sector-specific funds and demonstrate a willingness to withstand the constant volatility within this sector.