Infrastructure funds, a fairly diversified thematic fund category, have done better than most diversified equity funds in last one year ended August 23, 2022 with an average 17.23 percent returns.

Infrastructure schemes invest in shares of companies that cater to infrastructure needs and operate in the sectors such as energy, logistics, metals, materials, capital goods and construction. As the government spending on infrastructure projects rises and private participation is expected to go up, these companies may benefit in the medium term.

22 infrastructure funds put together manage assets worth Rs 15,478 crore, as on July 29, 2022. Investors need to time their entry and exit to make money in thematic funds.