Infrastructure theme funds have had a rather poor run in the past one year when compared with the diversified basket. On an average, these funds have delivered 9.4 per cent return.
The objective of these schemes is to generate long-term capital growth by investing in companies that are participating in and benefiting from growth in Indian infrastructure and related activities. Generally, they invest in infrastructure stocks that form a part of the CNX Infrastructure Index.
There are only 14 funds that have a track record of five years or more. All of them have outperformed the CNX Infrastructure Index which had given a negative return of 12 per cent over the last five years. However, these funds have underperformed the broader market indices, BSE Sensex, Nifty and BSE 500 in the five-year period.
However, 87 per cent of the infrastructure schemes have beaten the CNX Infrastructure Index by delivering more than 4 per cent return in the past one year. Interestingly, 40 per cent of the funds have given double-digit returns of between 12 and 30 per cent.
Top performers have been Canara Robeco Infrastructure and ICICI Pru Infrastructure over the past five years. DSP BR India T.I.G.E.R. managed to climb the ladder to second place over a one-year time period.
TOP PERFORMERS
Franklin Build India took advantage from higher exposure to financial services and energy sectors. Its top three stock holdings are ONGC, JK Lakshmi Cement and ICICI Bank with allocation of 7.5 per cent, 5.5 per cent and 4.4 per cent, respectively. JK Lakshmi Cement turned out to be a multi-bagger, delivering a massive 200 per cent return in the past one year . ICICI Bank has given 31 per cent and ONGC delivered 20 per cent.
Even DSP BR India T.I.G.E.R fund has higher allocation to financial and energy sectors with almost 33 per cent and 13 per cent, respectively. Its top portfolio holdings are ICICI Bank, Larsen & Toubro, IndusInd Bank and SBI.
On the other hand, the IDFC Infrastructure fund, which has underperformed its benchmark CNX Infrastructure Index, suffered as a result of heavy allocation to Energy (41 per cent), Diversified (16.6 per cent) and Engineering (15 per cent) sectors.
Reliance Infrastructure and Sundaram CAPEX Opportunities are the other two schemes that have underperformed the CNX Infrastructure Index over the past one year period.