Over the last three years, infrastructure-themed mutual fund schemes were ranked second on the charts by returns (35%). The government’s focus on infrastructure investment has been one of the primary factors behind the better performance of the infrastructure companies, experts attribute. Ihab Dalwai, Fund Manager, ICICI Prudential AMC says, “We have seen the central government allocate significant resources towards creating large scale infrastructure projects and also support various programs to improve the social infrastructure. Government initiates like Gati Shakti, National Infrastructure Pipeline and National Logistics Policy have improved coordination between different ministries and departments resulting in better planning and execution of various infrastructure projects”. There are 21 infrastructure-themed mutual fund (MF) schemes available on the street. These funds invest across sectors like ports, power plant and real estate to construction, manufacturing and logistics companies. Here are the top smallcap infrastructure stocks held by these infrastructure mutual funds. Why small-cap stocks? Because small-caps have been the best-performing segment in Indian equity markets since the March 2020 lows. Infrastructure theme mutual funds category too increased their exposure to smallcaps significantly from 29% to 33% in the last three years. Portfolio data as of August 31, 2023. Source: ACEMF.
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PNC Infratech Sub-sector: Construction No. of infrastructure schemes that hold the stock: 11
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GR Infraprojects Sub-sector: Construction No. of infrastructure schemes that hold the stock: 8
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KNR Constructions Sub-sector: Construction No. of infrastructure schemes that hold the stock: 7
