Infrastructure Mutual Funds Deliver Near 28% Three-Year Returns; LIC MF Infrastructure Fund Leads

Infrastructure-themed mutual funds posted close to 28% returns over the last three years. The numbers come from Association of Mutual Funds in India (AMFI) data as on May 21. For finance readers, this theme may suit diversification needs. It also stays linked to long-term investing and compounding benefits.

The best three-year performer in this set was LIC MF Infrastructure Fund. The scheme delivered 28.27% in the regular plan and 29.92% in direct. DSP India T.I.G.E.R. Fund and Nippon India Power & Infra Fund followed. Returns and benchmarks varied across funds, despite similar sector exposure.

Scheme Name	Benchmark	Regular Return (%)	Direct Return (%)	Benchmark Return (%)
LIC MF Infrastructure Fund	Nifty Infrastructure TRI	28.27	29.92	21.44
DSP India T.I.G.E.R. Fund	BSE India Infrastructure TRI	26.98	28.24	29.1
Nippon India Power & Infra Fund	Nifty Infrastructure TRI	26.56	27.59	21.44
Bank of India Manufacturing & Infrastructure Fund	BSE India Manufacturing Total Return Index (TRI) - 50% & BSE India Infrastructure	25.35	27.22	3.29
Canara Robeco Infrastructure Fund	BSE India Infrastructure TRI	24.72	26.33	29.1

Among the five, LIC MF Infrastructure Fund tracked the Nifty Infrastructure TRI. DSP India T.I.G.E.R. Fund used the BSE India Infrastructure TRI as its benchmark. Nippon India Power and Infra Fund also tracked Nifty Infrastructure TRI. Bank of India Manufacturing & Infrastructure Fund used a blended manufacturing and infrastructure benchmark.

Infrastructure mutual funds sit within thematic mutual fund categories. These schemes invest in equity and debt instruments of infrastructure-linked companies. The underlying firms may work on bridges, roads, and similar assets. This structure lets investors access infrastructure sector exposure through one fund, rather than buying many stocks.

How infrastructure mutual funds spread sector risk

Even with a theme label, these funds usually avoid a single narrow industry. Portfolios often include construction, power, cement, railways, roads, ports, and capital goods. Many also hold metals, engineering, logistics, and transportation names. This mix can reduce dependence on any one sub-sector within infrastructure.

Returns in infrastructure-based thematic mutual funds often improve during recovery and expansion phases. When GDP growth strengthens, capital spending may increase. This can expand project pipelines and raise capacity use. In such periods, construction, capital goods, and power segments may report stronger earnings.

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AMFI data as on May 21 showed five infrastructure-themed schemes with three-year returns near 28%. LIC MF Infrastructure Fund led this set, while other funds tracked different infrastructure benchmarks. Infrastructure mutual funds remained theme-focused but spread holdings across linked segments. Performance still depended on sector cycles and broader economic conditions.