Return Analysis of Infrastructure Mutual Funds 2024

We typically compare mutual fund performance based on returns data, which is an excellent method for conducting investment analysis. Numerous websites display the returns data of mutual funds, making it easy to access and analyze. While this data is undoubtedly useful, there is room for improvement in how it's presented. One way to enhance this is through visual comparison of returns data.

Visual representations can make it easier to grasp complex information at a glance, helping investors make more informed decisions. I recently discovered a website that offers a visual representation of returns data for various mutual fund categories. This approach allows investors to quickly compare the performance of different funds, identify trends, and spot outliers.

Visual tools like graphs and charts can highlight key differences and similarities in performance, making the data more accessible and engaging. By integrating visual comparison tools, investors can better understand the relative performance of mutual funds, track their progress over time, and make more strategic investment choices. Emphasizing visual data can transform the way we analyze and select mutual funds, providing a clearer, more intuitive understanding of investment options.

Using the data from infrastructure mutual fund category, I will perform returns analysis of infrastructure mutual funds, before going deep into return analysis part, we should understand what is infrastructure mutual funds in India.

Infrastructure mutual funds in India are specialized investment funds that focus on investing in companies involved in the infrastructure sector. These funds typically invest in industries such as construction, engineering, utilities, transportation, energy, and other infrastructure-related businesses. The primary goal of these funds is to capitalize on the growth and development of the country's infrastructure, which is a key driver of economic progress.

Key Features of Infrastructure Mutual Funds in India:

1. Sector Focus:

• These funds specifically target companies that are directly or indirectly related to infrastructure development. This includes companies involved in building roads, bridges, airports, power plants, and other essential facilities.

1. Growth Potential:

• India’s infrastructure sector is poised for significant growth due to government initiatives and increasing urbanization. Investments in this sector are expected to yield substantial returns over the long term.

1. Diversification:

• Although focused on a single sector, these funds invest in a variety of companies within the infrastructure space, providing a level of diversification within the sector itself.

1. Government Support:

• The Indian government has been actively promoting infrastructure development through various policies and investment incentives, which can positively impact the performance of these funds.

1. Risk Factors:

• Investing in infrastructure mutual funds can be riskier compared to more diversified equity funds due to their concentrated sector focus. Economic downturns, regulatory changes, and project delays can significantly impact fund performance.

Benefits of Investing in Infrastructure Mutual Funds:

1. High Growth Potential:

• With the government’s push towards massive infrastructure projects, these funds have the potential for high returns as infrastructure development accelerates.

1. Inflation Hedge:

• Infrastructure investments can act as a hedge against inflation, as the sector often benefits from increased government spending and economic stimulus measures.

1. Long-Term Investment:

• Ideal for investors with a long-term horizon looking to benefit from the sustained growth in the infrastructure sector.

As we have become familiar with infrastructure mutual funds category, let see it return pattern in for different investment period. Infrastructure mutual funds in India are an exciting investment option for those looking to capitalize on the country's rapid development. These funds focus on companies involved in essential infrastructure projects like roads, bridges, airports, and power plants, making them a vital part of India's economic growth story.

Impressive Average Returns:

• 1-Year Average Returns:

• Regular funds: 65.73%

• Direct funds: 67.33%

• 3-Year Average Returns:

• Regular funds: 33.35%

• Direct funds: 34.63%

SIP (Systematic Investment Plan) Average Returns:

• 1-Year Average SIP Returns:

• Regular funds: 74.46%

• Direct funds: 76.18%

• 3-Year Average SIP Returns:

• Regular funds: 45.18%

• Direct funds: 46.49%

Risk and Performance Metrics:

• Average Sharpe Ratio: 1.79 (indicating strong risk-adjusted returns)

• Average Standard Deviation: 14.34% (showing moderate volatility)

These impressive average returns and robust performance metrics highlight the potential of infrastructure mutual funds as a lucrative investment option. The government's ongoing efforts to enhance the country's infrastructure, coupled with rising urbanization and economic growth, make these funds an attractive choice for investors looking to ride the wave of development.

Investing in infrastructure mutual funds not only provides an opportunity to earn significant returns but also contributes to the nation's growth. Whether you prefer regular or direct funds, the numbers speak for themselves—these funds are delivering stellar average performance, making them a compelling addition to any diversified investment portfolio. If you're looking to invest in India's future while reaping substantial rewards, infrastructure mutual funds might just be the perfect fit for you.

Top 5 Infrastructure Mutual Funds Based on 3-Year Returns (Latest Data visit www.bmsmoney.com )

1. ICICI Prudential Infrastructure Fund: The ICICI Prudential Infrastructure Fund tops the list with an impressive 3-year return of 39.86%. Its strong Sharpe Ratio of 2.31 highlights its excellent risk-adjusted returns, making it a top choice for risk-averse investors. The fund's standard deviation of 12.37% indicates moderate volatility, ensuring a balanced risk profile.

• 3-Year Return: 39.86%

• 1-Year Return: 60.82%

• 1-Year SIP Return: 67.94%

• 3-Year SIP Return: 47.40%

• Sharpe Ratio: 2.31 (indicating strong risk-adjusted returns)

• Standard Deviation: 12.37% (showing moderate volatility)

1. LIC MF Infrastructure Fund: LIC MF Infrastructure Fund has demonstrated stellar performance with a 3-year return of 38.20%. It leads in both 1-year and 1-year SIP returns, reflecting its recent outperformance. The fund's Sharpe Ratio of 2.12 and standard deviation of 13.35% indicate a strong balance between returns and risk.

• 3-Year Return: 38.20%

• 1-Year Return: 85.69% (highest 1-year return among the top funds)

• 1-Year SIP Return: 103.08% (highest 1-year SIP return)

• 3-Year SIP Return: 51.97%

• Sharpe Ratio: 2.12 (indicating strong risk-adjusted returns)

• Standard Deviation: 13.35% (showing moderate volatility)

1. HDFC Infrastructure Fund: HDFC Infrastructure Fund offers a solid 3-year return of 36.65%. Its consistent performance is reflected in its 3-year SIP return of 49.92%. With a Sharpe Ratio of 2.12, the fund provides strong risk-adjusted returns, though its standard deviation of 15.92% indicates higher volatility compared to some peers.

• 3-Year Return: 36.65%

• 1-Year Return: 66.85%

• 1-Year SIP Return: 66.86%

• 3-Year SIP Return: 49.92%

• Sharpe Ratio: 2.12 (indicating strong risk-adjusted returns)

• Standard Deviation: 15.92% (showing higher volatility compared to others)

1. Quant Infrastructure Fund: Quant Infrastructure Fund has delivered a commendable 3-year return of 36.06%. Its high 1-year return of 74.27% and 1-year SIP return of 76.57% demonstrate strong recent performance. However, the fund's Sharpe Ratio of 1.50 and higher standard deviation of 17.33% suggest a higher risk-reward profile.

• 3-Year Return: 36.06%

• 1-Year Return: 74.27%

• 1-Year SIP Return: 76.57%

• 3-Year SIP Return: 45.58%

• Sharpe Ratio: 1.50 (indicating good risk-adjusted returns)

• Standard Deviation: 17.33% (showing higher volatility)

1. DSP India T.I.G.E.R. Fund: DSP India T.I.G.E.R. Fund rounds out the top five with a 3-year return of 36.01%. It boasts a strong 1-year return of 68.01% and an impressive 1-year SIP return of 79.42%. The fund's Sharpe Ratio of 1.96 and standard deviation of 14.28% indicate a solid balance of returns and risk, making it a reliable choice for investors.

• 3-Year Return: 36.01%

• 1-Year Return: 68.01%

• 1-Year SIP Return: 79.42%

• 3-Year SIP Return: 47.17%

• Sharpe Ratio: 1.96 (indicating strong risk-adjusted returns)

• Standard Deviation: 14.28% (showing moderate volatility)

Conclusion:

These top-performing infrastructure mutual funds offer a blend of high returns and robust risk management, making them attractive options for investors looking to benefit from India's infrastructure growth. Each fund has unique strengths, and investors should consider their risk tolerance and investment horizon when selecting the best fund to meet their financial goals.