Infrastructure has always been a crucial factor contributing in the development of Indian economy. It is a bridge that connects products to the markets, workers to industries, people in rural areas to urban progress, and people to services. Benefitting the country by lowering the costs, enlarging the markets and facilitating the trade, this sector has played its part efficiently. To take advantage from the infrastructural growth of the country, SBI Mutual Fund has introduced SBI Infrastructure Fund.
SBI Infrastructure Fund (G) –Specifics
It is an open ended equity scheme that offers the investors an opportunity of long-term wealth generation through an active management of investments in equity. It invests in diversified stocks of those companies which are directly or indirectly indulged in the infrastructural growth of Indian economy. It was launched in May, 2007 and since then its AUM has grown to Rs.617.22 cr. SBI Infrastructure fund Growth is managed by the ace fund manager; Richard D’Souza who is a B.Sc majored in Physics from University of Mumbai.
The fund has its assets allocated in both equity and debt instruments with 96% investment in equity and 4% in debt instruments. It has a mix of 26 stocks at present of which top 10 stocks has maximum allocation of 54.16%. Against the benchmark’s portfolio allocation the fund is overweight in the sectors such as, construction and engineering whereas underweight in communication, energy, and services. To compare its sector allocation, it has taken NIFTY Infrastructure TRI as its benchmark.
Sector Allocation of the fund vs. benchmark
Top five companies that the fund has its holdings in are Larsen & Turbo, Bharti Airtel, Elgi Equipments, Kalpataru Power Trans, and Sadbhav Engineering.
How has the Fund Performed?
When we analyzed the year-on-year or annual returns of the fund, it was seen that in the year 2008 when the market underwent huge crash, it suffered severe downfall and incurred whopping losses to investors. But, it covered its performance in the nick of time in 2009 by proffering a lofty return of 75.3%. After that it couldn’t bear the market volatility and behaved proportionally to it for consecutive years.
Year-on-Year Returns in %
When Mr. D’Souza took over the fund in the year 2014, he managed to break the chain of ups and downs. And since then the fund has outperformed its own benchmark by giving remarkable returns. This is evident from the above table.
Hence, if you are someone with high risk appetite and want to invest in infrastructure sector then SBI Infrastructure Fund is the one you should opt. If you want to start your investment in this fund then you should connect with MySIPonline without a further delay. We assure to guide you throughout the investment process and solve your issues and queries regarding mutual fund investments.
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