Performance comparison of Equity Sectoral-Infrastructure mutual funds: HDFC Infrastructure fund logged 82.89 per cent returns in a year!

Nippon India Power & Infrastructure and Franklin Build India Fund have shown consistent returns of 18.92 per cent and 18.85 per cent since the scheme's launch.

Infrastructure development is a key driver of economic growth, and investing in companies that fuel this progress can be a lucrative strategy. Here, we delve into the world of Equity: Sectoral-Infrastructure Mutual Funds. These funds concentrate their holdings on companies involved in building and maintaining our nation's infrastructure from power grids and transportation networks to communication systems and urban development. We'll explore their performance, compare top contenders, and analyse factors to consider before investing in this dynamic sector.

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The following table shows equity: sectoral-infrastructure mutual funds’ performance comparison -

Data as of  April 09, 2024

Quant Infrastructure fund was launched on August 31, 2007, with an Asset Under Management (AUM) of Rs 2,207.59 Crore. It maintains an expense ratio of 2.01 per cent. Exhibiting a sharp ratio of 1.82, it demonstrates relatively good risk-adjusted returns. The fund's alpha stands at 11.76, indicating its performance above the benchmark. With a beta of 0.68, it signifies moderate sensitivity to market movements. The fund's mean return is recorded at 38.36, with a standard deviation of 18.33, suggesting its historical performance variability.

Franklin Build India fund commenced on September 4, 2009, boasting an AUM of Rs 2,148.72 Crore. Its expense ratio is slightly higher at 2.09 per cent. Despite a lower sharp ratio of 1.68 compared to the previous fund, it still demonstrates favorable risk-adjusted returns. The fund's alpha and beta are 6.73 and 0.58 respectively, indicating its performance and market sensitivity. Its mean return and standard deviation are recorded at 30.17 and 14.96 respectively, providing insights into its historical performance distribution.

HDFC Infrastructure fund was launched on March 10, 2008, with an AUM of Rs 1,607.18 Crore and an expense ratio of 2.17 per cent. It demonstrates a sharp ratio of 1.63, showcasing reasonable risk-adjusted returns. The fund's alpha and beta stand at 7.94 and 0.62 respectively, indicating its performance and market sensitivity. With a mean return of 32.64 and a standard deviation of 16.94, the fund's historical performance characteristics are outlined.

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Bandhan Infrastructure fund, introduced on March 8, 2011, has an AUM of Rs 1,009.31 Crore and an expense ratio of 2.26 per cent. Despite a lower sharp ratio of 1.53, the fund still maintains acceptable risk-adjusted returns. Its alpha and beta are 6.37 and 0.58 respectively, signifying its performance and market sensitivity. The fund's mean return and standard deviation are 29.91 and 16.24 respectively, illustrating its historical performance behaviour.

Nippon India Power & Infrastructure Infra fund, established on May 1, 2004, boasts the highest AUM among the mentioned funds, standing at Rs 4,264.63 Crore. It maintains a relatively lower expense ratio of 1.97 per cent. With a sharp ratio of 1.78, it demonstrates commendable risk-adjusted returns. The fund's alpha and beta are 8.42 and 0.59 respectively, indicating its performance and market sensitivity. Its mean return is recorded at 32.21, with a standard deviation of 15.31, outlining its historical performance characteristics.

Disclaimer: The article is for informational purposes only and not investment advice.