Canara Robeco Infrastructure Fund delivers Rs 1.61 lakh on Rs 10,000 investment in 20 years; should you invest

Canara Robeco Infrastructure Fund has completed 20 years, marking a significant milestone for one of India’s oldest thematic equity schemes. A Rs 10,000 investment made at its launch on December 2, 2005, would have grown to Rs 1.61 lakh as of November 28, far outpacing the Rs 1.24 lakh that the BSE Sensex Total Return Index (TRI) delivered over the same period. The fund has generated a 14.91% CAGR since inception, compared with 13.46% from the additional benchmark.

As of November 28, the fund managed Rs 916.58 crore in assets. The Regular Plan – Growth Option recorded 1-year, 3-year and 5-year CAGRs of 1.32%, 24.29% and 28.96%, respectively. In comparison, the scheme’s benchmark, the BSE India Infrastructure TRI, returned –4.58%, 26.61% and 32.39%, while the BSE Sensex TRI delivered 8.72%, 12.15% and 15.56% over the same periods. The performance mix reflects the fund’s ability to outperform broader markets consistently while occasionally trailing its pure-play infrastructure benchmark in phases of sharp sectoral rallies.

Performance of the fund

While the fund has outperformed the Sensex TRI across 1, 3, and 5 years, its returns have lagged the infrastructure benchmark (BSE India Infrastructure TRI) in 3- and 5-year periods and outperformed only in the 1-year timeframe. This suggests strong stock selection but some drag relative to pure-play infra peers.

1-year: Fund 1.32% vs. Benchmark –4.58%

3-year: Fund 24.29% vs. Benchmark 26.61%

5-year: Fund 28.96% vs. Benchmark 32.39%

Investment strategy

The scheme invests 80–100% of its portfolio in infrastructure-related equities, with the flexibility to allocate up to 20% to debt and money market instruments. It may also invest up to 10% in REITs and InvITs, providing exposure to India’s expanding infrastructure investment universe. This allocation framework allows the fund to participate meaningfully in the country’s capex cycle while maintaining prudent risk buffers.

According to fund managers Vishal Mishra and Shridatta Bhandwaldar, the investment strategy emphasises research-led stock selection, strong fundamentals, and disciplined portfolio construction. The fund’s exposure spans industrials, utilities, engineering, and transportation—areas expected to benefit from India’s long-term infrastructure push. The AMC highlighted that this breadth enables the scheme to remain diversified within the thematic mandate.

Peer watch

Infra mutual funds showed varied performance across short-, medium-, and long-term horizons, with clear leaders emerging in each period. Over one month and six months, ETF-based strategies such as ICICI Prudential Nifty Infrastructure ETF and Nippon India ETF Nifty Infrastructure BeES held up better than most active funds, reflecting their diversified exposure and lower cost structures. In the one-year period, these ETFs were the only ones delivering positive returns, highlighting the sector’s volatility.

For longer horizons, active management proved more rewarding. LIC MF Infrastructure Fund, Franklin Build India Fund, and HDFC Infrastructure Fund dominated 3-year returns with strong double-digit CAGRs. Over five and ten years, ICICI Prudential Infrastructure Fund and Quant Infrastructure Fund emerged as consistent outperformers, showcasing superior stock selection and sector positioning. These long-term leaders demonstrate that disciplined active strategies can significantly outperform passive peers in thematic sectors.

Time Period | Rank | Fund Name                                               | Return (%)
------------|------|----------------------------------------------------------|------------
1 Month     | 1    | SBI Infrastructure Fund - Direct Plan                    | -0.54
            | 2    | ICICI Prudential Nifty Infrastructure ETF                | -0.60
            | 3    | Nippon India ETF Nifty Infrastructure BeES               | -0.65

------------|------|----------------------------------------------------------|------------
6 Months    | 1    | Motilal Oswal Infrastructure Fund - Direct Plan          | 5.07
            | 2    | ICICI Prudential Nifty Infrastructure ETF                | 3.30
            | 3    | Nippon India ETF Nifty Infrastructure BeES               | 3.04

------------|------|----------------------------------------------------------|------------
1 Year      | 1    | ICICI Prudential Nifty Infrastructure ETF                | 6.38
            | 2    | Nippon India ETF Nifty Infrastructure BeES               | 5.85
            | 3    | Bank of India Mfg & Infra Fund - Direct Plan             | -0.37

------------|------|----------------------------------------------------------|------------
3 Years     | 1    | LIC MF Infrastructure Fund - Direct Plan                 | 26.58
            | 2    | Franklin Build India Fund - Direct Plan                  | 25.05
            | 3    | HDFC Infrastructure Fund - Direct Plan                   | 24.72

------------|------|----------------------------------------------------------|------------
5 Years     | 1    | ICICI Prudential Infrastructure Fund - Direct Plan       | 31.00
            | 2    | Quant Infrastructure Fund - Direct Plan                  | 29.24
            | 3    | HDFC Infrastructure Fund - Direct Plan                   | 28.99

------------|------|----------------------------------------------------------|------------
10 Years    | 1    | Quant Infrastructure Fund - Direct Plan                  | 20.27
            | 2    | Bank of India Mfg & Infra Fund - Direct Plan             | 19.06
            | 3    | Franklin Build India Fund - Direct Plan                  | 19.01