Asset management companies (AMCs) have optimistically launched infrastructure funds aiming to gain from India's ambitious infrastructure plans. However, the returns have not been very encouraging. Currently there are 17 infrastructure funds in the market. We analysed the performance of these 17 open-ended funds since inception. Out of these 17 funds, 10 have outperformed their respective benchmarks while seven have failed to beat their benchmarks.
Tata Infrastructure Fund, launched in January 2005, has been the top performer. It posted a net asset value (NAV) return of 26% since its inception while its benchmark BSE 100 yielded 21.20% during the same period. Birla Sun Life Infrastructure Fund has been the runner-up. The fund launched in June 2009, had NAV return of 25% while its benchmark S&P Nifty rose 15.98% during the same period. ICICI Prudential Infrastructure Fund, Franklin Build India Fund, and UTI Infrastructure Fund are among the top five funds which gave NAV return between 22%-24%, racing ahead of their benchmarks.
Among the poor performers, AIG Infrastructure and Economic Reform Fund was the worst; its NAV plunged by 2% while its benchmark BSE 100 inched up 1.17%. The fund was launched in February 2008. The NAV of Baroda Pioneer Infrastructure Fund has remained flat from its launch on July 2010 to 16 August 2010 at a time when its benchmark CNX 100 gained 17.58%.
SBI Infrastructure Fund Series I - Growth plan, which was launched in July 2007, has yielded a paltry 2% NAV return since the fund's inception when its benchmark BSE 100 climbed 7.31% over the same period.
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