Mirae Asset introduces Infrastructure Fund targeting India’s fast-growing development sectors

Mirae Asset Investment Managers (India) has announced the launch of the Mirae Asset Infrastructure Fund, a new open-ended equity scheme designed to tap into India’s expanding infrastructure ecosystem. The fund will invest across a range of sectors critical to the country’s economic development, including construction, logistics, power, telecommunications, building materials, data centres, healthcare infrastructure, and infrastructure financing entities.

The New Fund Offer (NFO) will open for subscription on November 17 and close on December 1, with the scheme set to reopen for continuous sale and repurchase from December 8. Investors can enter the fund with a minimum investment of Rs 5,000 during the NFO period, and subsequent investments can be made in multiples of Re 1. The scheme will be benchmarked against the BSE India Infrastructure Total Return Index (TRI) and will be managed by Bharti Sawant.

Under its portfolio strategy, the fund will allocate at least 80% of its assets to equity and equity-related instruments of companies operating within the infrastructure universe. Up to 10% may be invested in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), while the remainder can be deployed in debt and money market instruments to provide liquidity and stability.

Mirae Asset expects India’s infrastructure sector to remain a long-term growth story, supported by rising capital expenditure from both government and private entities. Major national programmes—including PM Gati Shakti, Bharatmala, Sagarmala, and the National Infrastructure Pipeline—are driving expansion across transport networks, logistics corridors, utilities, and core social infrastructure. The fund house noted that these initiatives are creating multi-year opportunities for companies across engineering, construction, materials, energy, and technology services.

The launch of the Mirae Asset Infrastructure Fund expands the company’s existing suite of investment offerings, which spans equity, debt, hybrid, and exchange-traded funds (ETFs). Mirae Asset Investment Managers (India) is part of Mirae Asset Global Investments, a global asset manager with a presence in 19 countries.

Infrastructure funds

The broader category of infrastructure funds is gaining traction among investors seeking stable returns and diversification. These funds pool capital to invest in essential public and private assets such as utilities, transport systems, and communication networks—sectors known for dependable demand regardless of economic conditions. Their portfolios may include listed equities, corporate bonds, private infrastructure projects, REITs, and InvITs.

Infrastructure funds offer several advantages: steady cash flows, long-term capital appreciation as nations upgrade physical assets, and a hedge against inflation through price-indexed contracts common in the sector. They also help reduce volatility due to the defensive nature of underlying assets. However, risks remain, including potential policy shifts, project execution delays, sensitivity to interest rate movements, and the impact of broader economic slowdowns.

With India’s infrastructure development expected to accelerate over the next decade, Mirae Asset’s latest offering aims to position investors to benefit from the country’s structural growth trajectory.

Infrastructure funds outlook

Infrastructure mutual funds have gained strong traction as India continues its multi-year capex cycle, driven by government spending on roads, railways, defence, and energy transition. These thematic funds benefit from structural tailwinds—capital expenditure visibility, corporate deleveraging, order-book expansion, and improved balance sheets in sectors such as construction, cement, logistics, and industrial manufacturing.

Short-term returns (1–6 months) show volatility typical of sector-focused funds, with ETFs like ICICI Pru Nifty Infrastructure and Nippon India Infra BeES outperforming due to lower costs and cleaner index exposure. Over longer horizons—3 to 5 years—actively managed funds such as HDFC Infrastructure, LIC MF Infrastructure, Bandhan Infrastructure, and Quant Infrastructure demonstrate strong alpha compared to ETFs, supported by active stock selection in capital goods, engineering, utilities, and industrials.

The theme’s strength is reflected in consistently high 3- and 5-year returns across most funds, indicating that infrastructure remains a long-term compounding story tied closely to India’s economic expansion.

Top 5 Infrastructure Funds — Based on Returns

1 Month

ICICI Pru Nifty Infrastructure ETF – 4.17%

Nippon India Infra BeES – 4.11%

Tata Nifty500 Multicap Infra – 3.05%

Motilal Oswal Infrastructure Fund – 3.02%

Sundaram Infra Advantage – 2.93%

6 Months

BOI Manufacturing & Infra – 13.64%

LIC MF Infrastructure – 12.73%

Kotak Infra & Economic Reform – 10.45%

ABSL Infrastructure – 10.01%

Canara Robeco Infrastructure – 9.34%

1 Year

ICICI Pru Nifty Infrastructure ETF – 12.21%

Nippon India Infra BeES – 11.65%

BOI Manufacturing & Infra – 8.55%

Tata Multicap Infra – 8.13%

ICICI Prudential Infrastructure – 7.53%

3 Years

LIC MF Infrastructure – 29.81%

Franklin Build India – 28.15%

HDFC Infrastructure – 27.98%

Nippon India Power & Infra – 27.92%

Bandhan Infrastructure – 27.74%

5 Years

ICICI Prudential Infrastructure – 36.00%

HDFC Infrastructure – 33.96%

Bandhan Infrastructure – 33.03%

Quant Infrastructure – 33.03%

Canara Robeco Infrastructure – 32.29%