Sectoral Infrastructure Mutual Funds

Sectoral - Infrastructure funds are equity funds that invest a minimum of 80% of total investment amount in sectors related to construction, metal & mining, basic materials and finance.

Read more

Best Sectoral Infrastructure Mutual Funds to Invest Today

Fund Categories
Collections
AMC/Fund Houses
ICICI Prudential Asset Management Company LimitedHDFC Asset Management Co LtdSBI Funds Management LtdKotak Mahindra Asset Management Co LtdNippon Life India Asset Management LtdAditya Birla Sun Life AMC LtdAxis Asset Management Company LimitedUTI Asset Management Co LtdMirae Asset Investment Managers (India) Private LimitedDSP Asset Managers Private LimitedTata Asset Management LimitedBandhan Asset Management Company LimitedHSBC Asset Management(India)Private LtdDSP Investment Managers Private LimitedFranklin Templeton Asst Mgmt(IND)Pvt LtdIDFC Asset Management Company LimitedCanara Robeco Asset Management Co. Ltd.Edelweiss Asset Management LimitedInvesco Asset Management (India) Private LtdQuant Money Managers LimitedPPFAS Asset Management Pvt. LtdMirae Asset Mutual FundMotilal Oswal Asset Management Company Limited - Portfolio ManagersSundaram Asset Management Company LtdMirae Asset Global Inv (India) Pvt. LtdBaroda BNP Paribas Asset Management India Pvt. Ltd.JM Financial Asset Management LimitedMahindra Manulife Investment Management Pvt. Ltd.LIC Mutual Fund Asset Management LimitedPGIM India Asset Management Private LimitedDaiwa Asset Mgmt. (India) Pvt. Ltd.Fund PineBridge Mutual FundUnion Asset Management Co. Pvt. Ltd.Baroda Asset Management India LimitedBajaj Finserv Asset Management LimitedPrincipal Asset Management Private LimitedWhiteOak Capital Asset Management Limited360 ONE Asset Management LimitedJPMorgan Asset Management India Pvt. LtdEdelweiss Mutual FundBank of India Investment Managers Private LimitedITI Asset Management LimitedNavi AMC LimitedNJ Asset Management Private LimitedICICI Prudential Asset Mgmt.Company LimitedFranklin Templeton Asset ManagementIDBI Asset Management LimitedQuantum Asset Management Co Pvt. Ltd.Samco Asset Management Pvt LtdHelios Capital Asset Management (India) Private LimitedGroww Asset Management Ltd.Trust Asset Management Private LimitedTaurus Asset Management Company LimitedShriram Asset Management Co LtdOld Bridge Asset Management Private LimitedZerodha Asset Management Private LimitedING Investment Mgnt (India) Private Ltd.Baroda BNP Paribas Mutual Fund
Risk
Infrastructure Mutual Funds SIP Calculator
Calculate SIP returns based on past data
  • SIP

  • One-Time

Select Frequency

Investment Amount

Disclaimer : Projections/estimations is backtested using historical data

Start SIP in Sectoral Infrastructure Mutual Funds as low as Rs. 50

Daily SIP | Weekly SIP | Monthly SIP

Read more

How does Sectoral Infrastructure mutual funds work?

Sectoral infrastructure mutual funds work by pooling money from individual investors and investing it primarily in companies operating within the infrastructure sector. Here's how they typically operate

  • Fund Formation

     A mutual fund company (AMC) establishes a sectoral infrastructure mutual fund with a specific investment objective focused on the infrastructure sector. The fund's investment objective, strategy, and guidelines are outlined in its prospectus.

  • Fund Manager Selection

    The mutual fund company appoints a fund manager or a team of managers responsible for making investment decisions for the fund. The fund manager(s) analyze market trends, economic conditions, and sector-specific factors to identify potential investment opportunities within the infrastructure sector.

  • Portfolio Construction

    Based on the fund's investment objectives, the fund manager constructs a portfolio by selecting a diversified mix of stocks or securities of companies involved in infrastructure development. These companies may include those engaged in building and managing transportation systems, energy utilities, telecommunications networks, and other essential infrastructure facilities.

  • Research and Analysis

    Fund managers conduct in-depth research and analysis to identify promising investment opportunities within the Infrastructure sector. This includes analyzing company financials, growth prospects, product pipelines, market trends, competitive landscape, regulatory environment, and macroeconomic factors impacting the Infrastructure industry.

Advantages of investing in Sectoral Infrastructure mutual funds

Sectoral Infrastructure mutual funds concentrate on investing in companies within the Infrastructure sector, offering several potential advantages:

  • Focused Exposure

    Sectoral infrastructure mutual funds provide focused exposure to the infrastructure sector, allowing investors to specifically target companies involved in infrastructure development. This focused exposure can be beneficial for investors who want to capitalize on the growth potential of this sector.

  • Diversification

    While sectoral infrastructure funds focus on a specific industry, they often invest in a diversified portfolio of companies within that sector. This diversification helps spread risk across different companies and projects, reducing the impact of negative events affecting any single company.

  • Long-Term Growth Potential

    Infrastructure investments tend to have long-term growth potential, as they are tied to essential services and assets needed for economic development and societal functioning. Investing in sectoral infrastructure funds allows investors to participate in the growth of infrastructure projects, which can generate stable returns over time.

  • Infrastructure Spending Trends

    Many governments worldwide are increasing their spending on infrastructure projects to support economic growth, improve public services, and address infrastructure deficiencies. Investing in sectoral infrastructure funds can provide exposure to these spending trends, potentially benefiting from increased demand for infrastructure-related goods and services.

Limitations of investing in sectoral Infrastructure mutual funds

While investing in sectoral infrastructure funds can offer potential benefits, it's important for investors to be aware of the limitations and risks associated with this type of investment:

  • High Volatility

    Sectoral infrastructure mutual funds can be highly volatile due to their narrow focus on a specific sector. Fluctuations in the infrastructure sector, influenced by economic, regulatory, and geopolitical factors, can lead to significant price swings in the fund's holdings, impacting overall fund performance.

  • Limited Diversification

    Despite being mutual funds, sectoral infrastructure funds lack the diversification benefits typically associated with broader equity funds. Since they focus primarily on companies within the infrastructure sector, investors may face increased concentration risk compared to more diversified funds, which can amplify losses during sector-specific downturns.

  • Dependency on Sector Performance

    The performance of sectoral infrastructure mutual funds is heavily dependent on the performance of the infrastructure sector. If the sector underperforms or faces challenges, such as regulatory hurdles, project delays, or funding constraints, the fund's returns may suffer, regardless of the individual company's performance within the portfolio.

  • Market Timing Risk

    Investing in sectoral infrastructure mutual funds requires investors to accurately time their entry and exit points, as the performance of the infrastructure sector can be cyclical. If investors buy into the fund at the peak of the sector's cycle, they may experience losses if the sector subsequently experiences a downturn.

Points to consider before investing in Sectoral Infrastructure Mutual Funds

Before investing in Sectoral Infrastructure mutual funds, it's important to consider several key points to make informed investment decisions.

  • Investment Objectives

    Determine whether investing in sectoral infrastructure mutual funds aligns with your investment objectives. Consider whether you seek long-term capital appreciation, income generation, or portfolio diversification through exposure to the infrastructure sector.

  • Risk Tolerance

    Assess your risk tolerance and willingness to withstand volatility. Sectoral infrastructure funds can be highly volatile due to their narrow focus on a specific sector, so ensure that you are comfortable with the potential fluctuations in value.

  • Sector Outlook

    Evaluate the current outlook for the infrastructure sector. Consider factors such as government spending on infrastructure projects, regulatory changes, economic conditions, and industry trends that may impact the sector's performance.

  • Portfolio Diversification

    Determine how sectoral infrastructure mutual funds fit into your overall investment portfolio. Ensure that investing in this sector aligns with your broader diversification strategy and does not overly concentrate risk in a single sector.

How to start investing in Sectoral Infrastructure with INDmoney?

Now that you have understood what is Sectoral Infrastructure Mutual Fund, you need to know how easily you can start your investment with INDmoney. Just follow these simple steps given below, to start your mutual fund investment journey with us.

  • Step 1

    Download the INDmoney app and create your free investment account by completing your KYC ( Know Your Customer).

  • Step 2

    Once your Free investment account is ready, you can either search for a Sectoral Infrastructure Mutual Fund or go to the mutual fund section and tap on Sectoral Infrastructure mutual funds.

  • Step 3

    Choose a Sectoral Infrastructure Mutual Fund by looking at aspects like past returns, volatility, downside capture ratio, AUM, Expense ratios and underlying stocks and sectors.

  • Step 4

    You can choose to set up SIP in Sectoral Infrastructure Mutual Funds or even invest as lumpSum. Once you are on the individual Sectoral Infrastructure mutual fund page click from the bottom “One-time” for lump sum investment or “SIP” for systematic investment plan. 

  • Step 5

    Choose the amount that you want to invest as SIP or LumpSum.

  • Step 6

    Set up payments. If you choose to set up SIP in Sectoral Infrastructure Mutual Funds, you can do a free automatic pay set up via bank mandate or UPI. If you choose to invest in lumpsum (one-time) then you can pay via UPI, netbanking, NEFT or RTGS.


     

INDmoney is 100% Safe and Secure!

Your security and privacy are our top priority!

  • ISO Certification Icon

    27001:2022

    ISO Certified

  • Audited By Icon

    Audited by

    cert-in empanelled auditors

  • Secured Icon

    AES 256-BIT

    SSL Secured

img

Your personal information is protected.

With AES 256-bit encryption and TLS 1.3 secure data in transit.