ICICI Prudential Infrastructure Fund is an open-ended equity mutual fund that primarily invests in companies within the infrastructure sector. Launched on August 31, 2005, the fund aims to generate capital appreciation and income distribution by focusing on infrastructure-related securities. As of January 31, 2025, the fund’s Assets Under Management (AUM) stand at ₹7,434.93 crore, and it is categorized under ‘Very High’ risk.
Performance Metrics
Over the past years, ICICI Prudential Infrastructure Fund has demonstrated robust performance:
- 1-Year Return: 29.26%
- 3-Year CAGR: 34.61%
- 5-Year CAGR: 30.20%
Since its inception, the fund has delivered an annualized return of 15.40%.
Expense Ratio & Exit Load
The fund’s expense ratio is 1.86%, which covers management fees and other operational expenses. An exit load of 1% is applicable if units are redeemed within 15 days from the date of allotment.
Top Holdings & Sector Allocation
The fund’s investments are diversified across several sectors, with significant allocations in:
- Energy: 18.1%
- Financial: 17.1%
- Construction: 16.01%
- Metals & Mining: 11.53%
- Materials: 11.23%
As of December 31, 2024, the top holdings include:
- Larsen & Toubro Ltd.: 6.86%
- NTPC Ltd.: 2.73%
- ICICI Bank Ltd.: 3.7%
- Shree Cement Ltd.: 3.6%
- JM Financial Ltd.: 3.3%
Fund Manager Details
The fund is managed by Ihab Dalwai, who oversees its investment strategies and portfolio allocations.
Investment Strategy
ICICI Prudential Infrastructure Fund adopts a growth-oriented investment approach, focusing on equity and equity-related securities of companies within the infrastructure theme. This strategy aims to capitalize on the potential growth opportunities in India’s expanding infrastructure sector.
NAV (Net Asset Value) & Investment Options
As of February 24, 2025, the fund’s NAV is ₹168.43 for the Growth option of its Regular plan. The minimum investment required for a Systematic Investment Plan (SIP) is ₹100, while a lump sum investment requires a minimum of ₹5,000.
Why Choose ICICI Prudential Infrastructure Fund?
Investors may consider this fund for the following reasons:
- Sectoral Focus: The fund provides exposure to India’s infrastructure sector, which is poised for significant growth.
- Strong Performance: The fund has consistently delivered robust returns over various time horizons.
- Experienced Management: Led by a seasoned fund manager, the fund benefits from expert insights and strategic allocations.
Why Not Choose ICICI Prudential Infrastructure Fund?
Potential investors should be aware of certain risks:
- Sector Concentration: Being a sectoral fund, it is heavily invested in infrastructure-related companies, leading to higher concentration risk.
- High Risk: The fund is categorized under ‘Very High’ risk, indicating significant volatility.
Performance of Companies in the Fund
The top holdings have shown varied performance:
- Larsen & Toubro Ltd.: Reported a 2.56% return over the past year.
- NTPC Ltd.: Experienced an 8.03% decline over the same period.
Investors should monitor these companies’ financial trends, growth potential, and associated risks to make informed decisions.
In conclusion, ICICI Prudential Infrastructure Fund offers investors an opportunity to participate in India’s infrastructure growth story. However, due to its sector-specific focus and associated risks, it is more suitable for investors with a high-risk appetite and a long-term investment horizon.
