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.
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AUM ₹750 Cr •
Expense 1.38%
AUM ₹6424 Cr •
Expense 1.24%
AUM ₹5646 Cr •
Expense 0.89%
AUM ₹883 Cr •
Expense 0.99%
AUM ₹1965 Cr •
Expense 0.82%
AUM ₹1666 Cr •
Expense 0.7%
AUM ₹2524 Cr •
Expense 0.61%
AUM ₹2908 Cr •
Expense 0.91%
AUM ₹3991 Cr •
Expense 0.66%
AUM ₹529 Cr •
Expense 0.94%
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Mutual Fund Returns Calculator
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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.
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.
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.
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.
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
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.
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