Infrastructure is the foundation upon which a nation’s long-term economic development is built. In India, this sector plays a pivotal role not only in supporting growth but also in enhancing productivity, connectivity, and quality of life. Roads, railways, power, ports, and digital infrastructure collectively drive industrial progress and create employment opportunities.
Infrastructure investment in India is not just a policy priority, it is an economic necessity. The Union Budget for 2025–26 allocated ₹11.11 lakh crore towards infrastructure development, underlining the government's commitment to building world-class assets. With the National Infrastructure Pipeline (NIP) progressing steadily, infrastructure mutual funds emerge as a compelling thematic investment avenue for investors with a long-term horizon.
To help investors make informed choices, here’s a list of the leading mutual funds focused on India’s infrastructure growth. These funds differ in strategy, sector focus, and risk profiles but all aim to capture opportunities arising from the country’s ambitious infrastructure roadmap.
| Fund Name | NAV (₹) | AUM (₹ Cr.) | 5-Year CAGR (%) | Manager |
| ICICI Prudential Infrastructure Fund | 198.6 | 8,043 | 37.3 | Ihab Dalwai |
| DSP India T.I.G.E.R. Fund | 319.3 | 5,517 | 34.1 | Charanjit Singh |
| SBI Infrastructure Fund | 41.4 | 3,599 | 29.3 | Bhavin Vithlani |
| Quant Infrastructure Fund | 42.3 | 2,968 | 38.8 | Ankit Pande |
| Franklin Build India Fund | 162.2 | 2,943 | 32.5 | Ajay Argal |
| HDFC Infrastructure Fund | 47.8 | 2,571 | 35.0 | Srinivasan Ramamurthy |
| HSBC Infrastructure Equity Fund | 48.1 | 2,430 | 36.2 | Venugopal Manghat |
| Kotak Infra & Eco Reform Fund | 36.4 | 2,272 | 24.5 | Nalin Rasik Bhatt |
| UTI Infrastructure Fund | 67.6 | 1,889 | 28.2 | Sankith Trivedi |
| Invesco India Infrastructure Fund | 63.9 | 1,607 | 32.5 | Amit Nigam |
1. ICICI Prudential Infrastructure Fund
Launched in 2005, this fund is a veteran in the thematic category. Managed by Ihab Dalwai, it holds the highest AUM among infrastructure funds, signalling strong investor confidence. It has delivered an impressive 5-year CAGR of 37.3 percent by focusing on capital goods, energy, and engineering sectors. The fund adopts a balanced strategy with exposure across large-cap and mid-cap companies involved in infrastructure development.
Short for The Infrastructure Growth and Economic Reforms Fund, DSP T.I.G.E.R. has been a consistent performer. Under the leadership of Charanjit Singh, it maintains a diversified portfolio that captures both core and ancillary infrastructure themes such as utilities, cement, and financials linked to capital investment cycles. Its NAV stands at ₹319.3 with a 5-year CAGR of 34.1 percent.
SBI’s offering in this space is a steady performer backed by the reputation of India’s largest mutual fund house. Managed by Bhavin Vithlani, the fund invests predominantly in engineering, construction, and cement companies. Its relatively moderate NAV of ₹41.4 and AUM of ₹3,599 crore make it accessible for retail investors. The fund’s 5-year return of 29.3 percent reflects its conservative yet effective approach.
This fund stands out for its tactical allocation model and high-conviction bets. With Ankit Pande at the helm, the Quant Infrastructure Fund has delivered a standout 5-year CAGR of 38.8 percent, the highest among its peers. It frequently rebalances its portfolio to capture market momentum and is suitable for investors comfortable with slightly higher volatility in pursuit of higher returns.
Ajay Argal manages this fund with a focus on bottom-up stock selection. Franklin Build India Fund emphasises quality infrastructure names and avoids cyclical overexposure. With a 5-year CAGR of 32.5 percent, it offers a strong mix of consistency and long-term capital appreciation. The fund’s NAV of ₹162.2 and well-diversified sectoral mix make it a strong contender for patient investors.
Managed by Srinivasan Ramamurthy, HDFC’s infrastructure fund aims to capture opportunities from India’s capital expenditure cycle. It blends large-cap stability with mid-cap growth potential. With an NAV of ₹47.8 and AUM of ₹2,571 crore, the fund has posted a robust 5-year CAGR of 35.0 percent. Its strategy involves long-term positions in capital goods, logistics, and public sector undertakings.
7. HSBC Infrastructure Equity Fund
This fund takes a broad-based view of the infrastructure space, including power, utilities, engineering, and construction materials. Venugopal Manghat has managed the fund with an active allocation style, resulting in a 5-year CAGR of 36.2 percent. Its NAV of ₹48.1 makes it accessible, and the fund benefits from global research support, helping it identify overlooked domestic opportunities.
8. Kotak Infra & Economic Reform Fund
Nalin Rasik Bhatt manages this fund with a thematic focus on companies expected to benefit from government reforms and infrastructure spending. Though it has a relatively lower 5-year CAGR of 24.5 percent, it offers exposure to policy-led themes such as roads, ports, and railways. Its NAV is modest at ₹36.4, making it a good entry point for long-term investors seeking exposure to reform-led infrastructure growth.
The UTI Infrastructure Fund is led by Sankith Trivedi and takes a diversified approach across infrastructure sub-sectors. With a 5-year CAGR of 28.2 percent, it has managed to balance risk and reward effectively. Its top holdings include companies from construction, engineering, cement, and utilities. Its NAV of ₹67.6 reflects steady growth without aggressive volatility.
10. Invesco India Infrastructure Fund
Amit Nigam manages the Invesco India Infrastructure Fund with a bottom-up strategy and a long-term perspective. The fund’s 5-year CAGR of 32.5 percent highlights its effective stock picking in capital-intensive industries. Despite a lower AUM of ₹1,607 crore, it has performed consistently and is ideal for investors seeking focused exposure to core infrastructure companies.
Government Policy Support: Infrastructure development receives strong government backing through increased budget allocations, reaching ₹11.11 lakh crore in recent budgets. Policy initiatives like the National Infrastructure Pipeline, PM Gati Shakti, and Asset Monetisation Programme provide sustained growth momentum.
Economic Growth Correlation: Infrastructure development directly correlates with economic growth, making these funds beneficiaries of India's expanding economy. As GDP grows, infrastructure demand increases proportionally.
Inflation Hedge: Infrastructure assets often exhibit inflation-hedging characteristics as project revenues typically increase with inflation, protecting real returns over time.
Diversification Benefits: Infrastructure funds provide exposure to sectors typically underrepresented in diversified equity funds, offering portfolio diversification benefits.
Long-term Growth Potential: With India's infrastructure investment requirements estimated at USD 4.5 trillion by 2040, the sector offers substantial long-term growth opportunities.
Participation in India's Growth Story: Infrastructure mutual funds offer direct participation in India's economic transformation and development journey. With the government's focus on becoming a developed nation by 2047, infrastructure development remains a critical enabler.
Professional Management: Fund managers bring expertise in analysing complex infrastructure projects, government policies, and sector dynamics that individual investors may find challenging to evaluate independently.
Diversified Exposure: Rather than investing in individual infrastructure companies, mutual funds provide diversified exposure across multiple sub-sectors, reducing company-specific risks while maintaining thematic focus.
Liquidity Advantage: Unlike direct infrastructure investments (such as InvITs or infrastructure bonds), mutual funds offer daily liquidity, allowing investors to enter or exit positions as needed.
Systematic Investment Option: SIP investments in infrastructure funds allow rupee-cost averaging, potentially reducing the impact of market volatility while building wealth systematically over time.
Tax Efficiency: Infrastructure mutual funds qualify for equity taxation benefits, with long-term capital gains (holding period > 1 year) taxed at 12.5% for gains exceeding ₹1.25 lakh annually.
Infrastructure sector mutual funds represent a compelling investment opportunity for long-term wealth creation, offering direct exposure to India's infrastructure development story. The sector's strong fundamentals, government policy support, and long-term growth potential make it an attractive thematic investment.
The top 10 infrastructure funds identified offer diverse approaches to capturing infrastructure growth, from focused power and energy themes to diversified infrastructure exposure. Investors should select funds based on their specific risk-return preferences, investment goals, and conviction in the infrastructure growth story.
With India's infrastructure investment requirements estimated at trillions of dollars over the coming decades, infrastructure mutual funds provide an accessible and professionally managed avenue for participating in this transformational journey. However, as with all equity investments, careful due diligence, appropriate portfolio allocation, and long-term commitment remain essential for investment success.
Disclaimer: This analysis is for informational purposes only and should not be construed as investment advice. Past performance does not guarantee future results. Investors should consult qualified financial advisors before making investment decisions.
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