Top 5 Infrastructure Mutual Funds for 2025

The Indian infrastructure sector is an important component of the country’s economic vitality and development, benefiting from government private sector investment. The industry has grown significantly due to government initiatives such as the National Infrastructure. Physical and infrastructure improvements across transport, power, urban development and industrial hubs to lay a solid foundation for the future.

The sector is expanding exponentially with an estimated annual growth rate of around 8-10%. Key areas such as roads, railways, city infrastructure and power have received significant investment which has driven the sector’s progress. The NPI, with an investment plan of around Rs 1.40 lakh crore over the next five years from 2020 to 2025, has highlighted the government’s commitment to infrastructure development. This includes roads, airports, ports, city transport and temporary housing projects.

The 2024 budget allocates USD 24 billion for infrastructure projects, an increase of 10% from the previous year. This reflects the government’s unwavering commitment to the sector, the strong demand for infrastructure services and the various attractions from various states, thus boosting market sentiment. Investing in infrastructure mutual funds can help investors capitalize on the growth potential of the Indian infrastructure sector. These funds invest in a diversified portfolio of companies across different infrastructure sectors, helping to reduce the risk associated with any single industry or company. The lack of infrastructure development is consistent with the current demand for a land-dependent and sustainable India with broader economic goals, infrastructure is good for mutual funds.

Here’s a curated list of top-performing infrastructure mutual funds:

1. Nippon India Power & Infra Fund Direct-Growth

Nippon India Power & Infra Fund Direct-Growth is an equity mutual fund scheme launched in 2013. Investors can start their investment journey with a minimum SIP of 100 rupees or a lamsum investment of 5000 rupees. The fund manages total assets of Rs 7556.63 Crores and has a current NVA of Rs 375.51 as of 20 December 2024. In the last year, this mutual fund has 33.90% return.

The mutual fund has delivered a CAGR of 33.36% in the last three years and it has posted a CAGR of 31% in the last five years. The expense ratio of the fund is 0.95%. From the fund’s total AUM, its top holdings include Larsen & Toubro at 9.86%, NTPC at 6.26%, Reliance Industries at 6.07%, Bharti Airtel at 5.60%, UltraTech Cement at 4.00%.

2. ICICI Prudential Infrastructure Fund Direct-Growth

ICICI Prudential Infrastructure Fund Direct-Growth is an equity mutual fund scheme launched in 2013. Investors can start their investment journey with a minimum SIP of 100 rupees or a lamsum investment of 5000 rupees. The fund manages total assets of ₹6,989.56 Crores and has a current NVA of ₹201.04 as of 20 December 2024. In the last year, this mutual fund has a 34.47% return.

The mutual fund has delivered a CAGR of 36.33% in the last three years and it has posted a CAGR of 31.21% in the last five years. The expense ratio of the fund is 0.95%. From the fund’s total AUM, its top holdings include Larsen & Toubro at 9.08%, NTPC at 4.01%, ICICI Bank at 3.70%, Shree Cement at 3.57%, and JM Financial at 3.39%.

3. SBI Infrastructure Fund Direct-Growth

SBI Infrastructure Fund Direct-Growth is an equity mutual fund scheme launched in 2013. Investors can start their investment journey with a minimum SIP of 500 Rupees or a lamsum investment of 5000 rupees. The fund manages total assets of ₹5,006.44 Crores and has a current NVA of ₹53.44 as of 20 December 2024. In the last year, this mutual fund has a 27.35% return.

The mutual fund has delivered a CAGR of 28.48% in the last three years and it has posted a CAGR of 26.68% in the last five years. The expense ratio of the fund is 0.95%. From the fund’s total AUM, its top holdings include Reliance Industries at 8.78%, Larsen & Toubro at 8.18%, Shree Cement at 5.21%, Bharti Airtel at 4.88%, Grindwell Norton at 4.12%.

4. Quant Infrastructure Fund Direct-Growth

SBI Infrastructure Fund Direct-Growth is an equity mutual fund scheme launched in 2013. Investors can start their investment journey with a minimum SIP of 1000 Rupees or a lamsum investment of 5000 rupees. The fund manages total assets of ₹3,585.30 Crores and has a current NVA of ₹42.44 as of 20 December 2024. In the last year, this mutual fund has a 32.73% return.

The mutual fund has delivered a CAGR of 27.11% in the last three years and it has posted a CAGR of 36.58% in the last five years. The expense ratio of the fund is 0.95%. From the fund’s total AUM, its top holdings include Larsen & Toubro at 9.64%, ITC at 9.60%, Reliance Industries at 9.44%, Tata Power at 7.83%, Samvardhana Motherson International at 7.25%.

5. HSBC Infrastructure Fund Direct-Growth

HSBC Infrastructure Fund Direct-Growth is an equity mutual fund scheme launched in 2013. Investors can start their investment journey with a minimum SIP of 500 Rupees or a lamsum investment of 5000 rupees. The fund manages total assets of ₹2,585.33 Crores and has a current NVA of ₹54.01 as of 20 December 2024. In the last year, this mutual fund has a 35.08% return.

The mutual fund has delivered a CAGR of 29.50% in the last three years and it has posted a CAGR of 27.47% in the last five years. The expense ratio of the fund is 0.95%. From the fund’s total AUM, its top holdings include NTPC at 8.42%, Bharat Electronics at 7.78%, Larsen & Toubro at 7.50%, Bharti Airtel at 6.43%, Aditya Birla Real Estate at 4.18%.

Information Collect Dhan & Jasly