Mirroring the overall bullishness in the equity market, the ICICI Prudential Infrastructure Fund – Direct Plan – Growth, an infrastructure mutual fund, has delivered a massive 65 percent annualised return in the past year and 606 percent absolute returns in last 10 years.
What is Infra mutual Fund?
An infra mutual fund is a type of investment that puts your money into projects like building roads and important facilities either privately or through publicly available options.
ICICI Prudential Infrastructure Fund – Direct Plan – Growth NAV
As of February 23, the NAV of the infra mutual fund stands at Rs 175.15 per unit, with a fund size of Rs 4,574.47 crore and an expense ratio of 1.16 percent.
Expense ratio is the fee you pay to a mutual fund company for managing your investment. It’s a percentage of the total money they’re taking care of for you.
For an actively managed portfolio, a good expense ratio is around 0.5 percent to 0.75 percent, but anything above 1.5 percent is generally considered high nowadays, as per MF experts.
ICICI Prudential Infrastructure Fund – Direct Plan – Growth Performance
The sectoral infra mutual fund has shown impressive returns: over 65 percent in the past year, 39.56 percent in 3 years, 29.68 percent in 5 years, and 21.57 percent in 10 years.
In absolute terms, the infra mutual fund has delivered remarkable returns: 171.80 percent in the last 3 years, 267.27 percent in 5 years, and an impressive 606.54 percent in 10 years.
At this rate of returns, Investing Rs 1 lakh in this infrastructure mutual fund approximately 10 years ago would have grown to over Rs 7 lakh today.
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Scheme Allocation
NTPC claims the highest share of fund allocation at 7.75 percent, trailed by L&T at 5.48 percent, ICICI Bank at 4.92 percent, and Gujarat Gas at 3.61 percent.
In terms of sectors, construction receives approximately 14 percent of the infra mutual fund’s allocation, power 12 percent, banks 11 percent, and cement and allied products 11 percent.
Portfolio Snapshot: Equities, Debt, and Sectoral Breakdown
The fund allocates 93.69 percent of its investments to domestic equities, with 47.86 percent in Large Cap stocks, 12.8 percent in Mid Cap stocks, and 16.82 percent in Small Cap stocks. Additionally, there is a 0.8 percent allocation to Debt, primarily in Government securities, accounting for 0.79 percent.
Risk-O-Meter – Very High
Risk-O-Meter – Very High suggests that this mutual fund is for savvy investors who understand big-picture trends and want to make specific bets for better returns than regular equity funds. But, it’s important to know there’s a chance of some losses, even if the market as a whole is doing well.
Exit Load
The exit load for investor of this infra mutual fund has been fixed at 1 percent. Exit load is a small portion taken from the money you get back when you sell some of your investment units.
Fund Manager – Ihab Dalwai
Peer Comparison
Franklin Build India Fund – Direct Growth
When comparing the one-year performance, ICICI Prudential Infrastructure Fund – Direct Plan – Growth has yielded lower returns than this Franklin fund, which has given 74.3 percent returns.
Franklin India Opportunities Fund – Direct Growth
In the past year, ICICI Prudential Infrastructure Fund – Direct Plan – Growth has performed less favorably, showing lower returns compared to this fund, which achieved a robust 70.7 percent return.
LIC MF Infrastructure Fund – Direct Growth
In the one-year performance comparison, ICICI Prudential Infrastructure Fund – Direct Plan – Growth has shown better returns compared to this fund, which has delivered a 62.8 percent return.
Fund Objective
To generate capital appreciation and income distribution to unit holders, by investing in stake/stake related papers of companies primarily in infrastructure theme. However, no confirmation or guarantee can be given as to whether the investment objective of the scheme will be achieved.
Tax Treatment of This Infra Mutual Fund
If you sell this infra mutual fund after 1 year from the purchase date, you’ll be subject to long-term capital gains tax. The current tax rate is 10 percent if your total long-term capital gains exceed 1 lakh, excluding any cess/surcharge. If sold within 1 year from the purchase date, short-term capital gains tax at a rate of 15 percent will apply, and this rate doesn’t include any cess/surcharge.
Asset Management Company (AMC)
AMC is ICICI Prudential Mutual Fund, which has Assets Under Management (AUM) of Rs 6,41,296 crore.
Disclaimer: This story is provided for informational purposes only and should not be construed as financial advice. FinTrooder.com does not assume responsibility for any losses incurred based on the information presented in this story. Readers are encouraged to conduct their own research and consult with financial professionals before making investment decisions.
