13 Smallcap Gems That Infrastructure Mutual Funds Love to Hold

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.

PNC Infratech
Sub-sector: Construction
No. of infrastructure schemes that hold the stock: 11

GR Infraprojects
Sub-sector: Construction
No. of infrastructure schemes that hold the stock: 8

KNR Constructions
Sub-sector: Construction
No. of infrastructure schemes that hold the stock: 7

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KEI Industries
Sub-sector: Industrial Products
No. of infrastructure schemes that hold the stock: 7

MTAR Technologies
Sub-sector: Aerospace & Defense
No. of infrastructure schemes that hold the stock: 7

Also read: Buy-and-hold: Mutual Fund schemes that churn the least

Brigade Enterprises
Sub-sector: Realty
No. of infrastructure schemes that hold the stock: 7

Kalpataru Projects International
Sub-sector: Power
No. of infrastructure schemes that hold the stock: 7

H.G. Infra Engineering
Sub-sector: Construction Project
No. of infrastructure schemes that hold the stock: 7

Also see: MC30 scheme review: Why PGIM India Midcap Opportunities Fund is a long-term wealth creator

NCC
Sub-sector: Construction Project
No. of infrastructure schemes that hold the stock: 7

Tega Industries
Sub-sector: Industrial Manufacturing
No. of infrastructure schemes that hold the stock: 6

TD Power Systems
Sub-sector: Electrical Equipment
No. of infrastructure schemes that hold the stock: 6

Also read: 10 most popular large-cap stocks among PMS to withstand volatility

Gujarat State Petronet
Sub-sector: Gas
No. of infrastructure schemes that hold the stock: 6

Birla Corporation
Sub-sector: Cement Products
No. of infrastructure schemes that hold the stock: 6

Also see: Hot small-cap pharma and healthcare stocks that MFs hold currently