In my past posts I did not recommended to invest in Reliance Infrastructure Fund and Franklin build India Fund in the NFO Stage and so many people asked for clarification and I gave them. Then I came up with Best Tax Saving Funds and so their were so many queries from many people asking which infrastructure funds they should invest and so here I am once again lists some of the best Infrastructure fund and which fund is expected to outperform in the future.
Canara Robeco Infrastructure Fund
Launched in Novemeber 2005 and has given significant returns since then. It has given 18.12 percent annualized return since its inception which I think is very good.
| Top 5 Sectors | % Net Asset |
|---|---|
| Energy | 23.61 |
| Services | 15.90 |
| Communication | 13.79 |
| Diversified | 9.88 |
| Financial | 8.63 |
ICICI Prudential Infrastructure Fund
Launched in August 2005 and has given significant returns since then. It has given 26.88 percent annualized return since its inception.
| Top 5 Sectors | % Net Asset |
|---|---|
| Energy | 36.59 |
| Financial | 12.58 |
| Metals | 10.87 |
| Communication | 7.42 |
| Engineering | 4.83 |
Tata Infrastructure Fund
Launched in December 2004 and has given significant returns since then. It has given 25.40 percent annualized return since its inception.
| Top 5 Sectors | % Net Asset |
|---|---|
| Energy | 23.56 |
| Financial | 17.69 |
| Metals | 11.53 |
| Engineering | 11.29 |
| Diversified | 10.14 |
Source of all data is valueresearchonline.com as on 31/07/2009
Final Thoughts on Infrastructure funds
My best choice among the three is Canara Robeco Infrastructure Fund for
- Good past performance.
- Its not very heavy on Metals.
- Its heavy on Services Industries.
- Heavy on communication and specially Bharti Airtel.
I would have also preferred to have Engineering heavy for this fund but then it can be something that can be done away with.
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{ 29 comments… read them below or add one }
hi,
for the next financial year, to avoid tax, we have option to invest in infrastructure funds rt? which fund is good in this category?
Thanks
Siva
Siva, I am not able to get your question. You mean infrastructure funds for tax savings or what?
It is infra bond, not fund.
Example: L& T Infrastructure Bonds
Hello Shabbir,
I have few queries regarding next finacial investment.
1) As per new budget Infra fund we can invest 20 K in addiotnal to 1 lac . so this Infra fund you mentioned can be invested .. Also how we can invest
2) i have SBI magnum & HDFC tax saver ELSS whose 3 years is over so should i continue as it is giving good returen or we withdraw it.
3) Regarding home loan i have 11 Lakh loan pending woth 10 % floating . Curreny bank is odfeering by paying conversion fee (1% of outstaning ) can convert to 8.75 % . Is it good advise to convert.
As i have already paid before 1% at that time from 12.25 to 10%.
Thanks in advance
Thanks & regards
Amit S
Amit, Regarding your query 1 I am not able to get what you are talking about and is it infrastructure bond you mean?
For 2 I think you should offload it and invest in your loan. See http://shabbir.in/factors-to-consider-before-investing/
Dear Shabbir,
Thank you for prompt response.
1) Ya i am talking about infrstructure fund. Can we invest this fund as per new budget in Canara Robeco Infrastructure Fund . Also how can we do it.
2) Thank you i got this reply
3) Should i do conversion (10% to 8.75%) in same bank by paying 1% Fee of outstanding amount.
Thanks & Regards
Amit
I am not sure if Canara Rebeco Fund investment will save your tax but for investing in those funds you should ask your broker or else you can visit any bank branch and they can help you invest in that fund.
Regarding loan conversion I am sure you are good at maths and see what is best for you.
suppose I invest in a good mutual fund and got good profit after a period of 5 years. Should I exit or be invested on that mutual fund? What should we consider to exit a mutual fund?
Need for money should be your main driving force to come out of mutual fund or else if things do not work well switch is good option.
I have invested in ICICI Ifrastructure MF(Growth) with an SIP of Rs 1000 per month starting 07 June 2010. Do u think its the correct decision? Any modifications that you recommend regarding the monthly investment amount?
SIP is always better and you have choosen to an extent good fund.
I have few queries regarding next finacial year investment.
1) As per new budget Infra fund we can invest 20000 in addiotnal to 1 lac . please suggest which Infra fund is best and how to invest as i am in hyderabad.
2. i want ot invest in SIP pls suggest me some good SIP funds.
Thanks in advance
Thanks & regards
Himanshu C
Himanshu, I have already listed the infra funds in the post and what else do you want ?
Hi Shabbir,
In this FY ’10-’11 we can invest in infrastructure bond upto 20K which can be availed as additional tax exemption above the 100K(max) tax benefit declarations. If someone invests in infrastructure funds, shall it be considered as investment under infrastructure bond section? Can you please share your view.
Thanks and regards,
Sampad Roy
Bonds and funds are not same thing Sampad.
Hi, Siva, Amit-s Himanshu,
I think you all are confusing infrastructure fund of various mutual funds houses which are not eligible under the new act.The long term infrastructure bonds eligible for deduction under section 80CCF of the income tax act stipulates the benefit is limited to rs20000/- in a financial year.The amount is directly deducted from your gross income.Recently,only one institution i.e, IFCI has come up with this new scheme for the financial year 2010-11.
thanks.
The new tax exemptions proposed for Rs. 20,000 cannot be put in the infrastructure funds being currently being offered by MF Houses.
This new fund will have alomger lock-in period and fixed returns.
Hi Shabbir,
I have finished SIP in Tata Infrastructure Fund for last 2 years. I would like to continue SIP for next 2 yrs in one of the infrastructure fund, will you recommend to stick to the same Tata Infrastructure or should I switch ? If yes then to which fund ?
Advice on this is greatly appreciated.
Best Regards
Gopi
No not Tata Infrastructure fund any more and I will suggest you to look at other funds that have given better returns than Tata Infra fund for last one year and go for them.
Hi Shabbir,
Can i invest in ICICI Pru Infra fund 4 three years at dis stage….
Amount approx: 1 lac…
If it is open ended fund you can at any time.
Hi Shabbir,
I need suggestion from you
1: I invested inICICI Pru life time gold anually Rs 20000.
The market NAV is not good now…should i withdraw as locking period of 3 years is over or will wait for 10 yrs??
2: I want 2 invest in Infrastructure bond which is being included as Tax Exemption.
Please suggest me any good Infrastructure bond
3: I want to invest in Short term Infrastructure fund can you suggest me any which has a good forecast
Best Regards
Amrita
If you are not seeing the appreciation you can come out and Bonds I have never preferred and so cannot suggest.
Hi shabbir,
i’ve invested in Birla sunlife Gold Plus 70k in the first year and subsequently 10k and 10k in next two years, to day the policy stands at 1.38L.
1. Is the fund doing good ?
2. should I stay invested, now that the lock-in is over ?
3. what is the alternate investment
4. I’ve a house loan running, do u suggest i withdraw BSLI n put the money in the house loan or i invest it some where to save tax ?
Your reply is sincerely awaited
Mukesh
1. If you are making good it should be a good fund.
2. If you have good returns you should remain invested and when there is rally you can think about booking partial profits.
3. Many other funds and stocks.
4. You should always invest in your loan. See http://shabbir.in/factors-to-consider-before-investing/
i need best shariah complaint MF
IDFC Mutual Fund today announced the launch of IDFC Infrastructure Equity Fund, an open ended equity fund. It started on 14 February 2011. I have invested in it and i think it is going to do really well because the sector is surely going to come up four or five years down the line.
Dear Shabbir,
Pse let me know best top 10 infrastruture bond in India for investment under section 80….. for exemption form Income Tax.
Why do you need 10 different bonds?