Best Infrastructure Mutual Funds in India 2026: Top 10 & Guide
What Infrastructure mutual funds are, who should invest, key risks, and the top 10 funds with returns and risk data.
Infrastructure mutual funds invest in companies involved in roads, bridges, power and utilities, aiming for long-term capital appreciation. They are sectoral funds, so they are concentrated and sensitive to policy and the economy. This guide covers who should invest, benefits, risks, and the top 10 infrastructure funds from our data.
Key takeaways
- Infrastructure funds are sectoral funds investing in equity and debt instruments of infrastructure companies.
- In the Union Budget of 2025-26, the government allocated ₹11.21 lakh crore to infrastructure, according to the source overview.
- Benefits include growth potential, government support, steady cash flows and a possible inflation hedge.
- Risks include sector concentration, regulation, economic cycles and interest rates.
- The top 10 funds below are matched by name and ranked by an internal score.
What are infrastructure mutual funds?
Infrastructure mutual funds are sectoral funds that invest in equity and debt instruments of companies in the infrastructure sector. The sector includes businesses involved in building roads, bridges and other infrastructure, as well as power and utilities. The goal is to give investors exposure to the sector's growth and generate long-term capital appreciation.
Who should invest in infrastructure mutual funds?
- Investors who aim for long-term wealth creation.
- Investors with high risk tolerance, since market conditions, economic cycles and policy affect these funds.
- Investors who want to diversify and gain exposure to the sector.
- Investors who want to back infrastructure growth and economic expansion.
Advantages of infrastructure mutual funds
- Higher growth potential as the sector continues to expand.
- Government initiatives: continued policy support and incentives.
- Steady cash flows from assets such as airports, highways, bridges, energy and utilities through tolls and fees.
- Inflation hedge: inflation-linked contracts are common in the sector and can raise revenue as inflation rises.
- Professional management, removing the need to pick stocks or time the market.
Risks of infrastructure mutual funds
- Sectoral concentration: underperformance of the sector can hit the fund hard.
- Regulatory risk: the sector depends on favourable policy, and a loss of incentives can hurt.
- Economic and market conditions: the sector does well in expansions and suffers in slowdowns.
- Interest rate risk: infrastructure companies often use debt, so higher rates make borrowing costlier.
How are infrastructure mutual funds taxed?
Equity-oriented infrastructure funds are subject to capital gains tax based on holding period, while gains on debt-oriented infrastructure funds (those with less than 35% in equity) are added to your income and taxed at your applicable rate. Rules change, so check the current position or speak to a tax advisor.
Top 10 Infrastructure mutual funds ranked by an internal score
These are the top 10 Infrastructure funds from our data, ranked by Invo Wealth's internal fund-quality score. The score itself is not shown, only the return and risk numbers behind it. These funds are matched by theme from their names rather than from an official SEBI sub-category. A "--" means the fund has not completed that period or the data is unavailable. Some entries are different plan or option variants of the same scheme (for example Direct vs Regular, or Growth vs Bonus), so their figures can look similar.
Returns across 6 months to 5 years
Performance data as of 5 September 2026.
| Fund | 6M CAGR | 1Y CAGR | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|
| ICICI Prudential Infrastructure Fund | 16.59% | 6.69% | 17.69% | 21.87% |
| LIC MF Infrastructure Fund | 25.47% | 13.40% | 22.51% | 20.80% |
| BANK OF INDIA MANUFACTURING & INFRASTRUCTURE FUND | 31.68% | 18.56% | 20.47% | 19.69% |
| Canara Robeco Infrastructure Fund | 5.84% | 5.01% | 18.75% | 18.20% |
| Nippon India Power & Infra Fund - Regular Plan - Bonus Option | 22.79% | 12.66% | 18.60% | 20.42% |
| Nippon India Power & Infra Fund - Regular Plan - Growth Option | 22.79% | 12.66% | 18.60% | 20.42% |
| HDFC Infrastructure Fund - Direct Plan - Growth Option | 4.58% | 0.42% | 14.64% | 20.33% |
| Invesco India Infrastructure Fund | 35.30% | 7.89% | 18.56% | 18.17% |
| HDFC Infrastructure Fund - Regular Plan - Growth Option | 3.66% | -0.48% | 13.60% | 19.32% |
| Aditya Birla Sun Life Infrastructure Fund | 33.53% | 16.57% | 16.76% | 17.68% |
Risk and consistency metrics
| Fund | ISIN | Volatility | Max drawdown (3Y) | Sortino ratio |
|---|---|---|---|---|
| ICICI Prudential Infrastructure Fund | INF109K01AV5 | 19.40% | -19.33% | 0.75 |
| LIC MF Infrastructure Fund | INF767K01501 | 24.02% | -26.92% | 0.87 |
| BANK OF INDIA MANUFACTURING & INFRASTRUCTURE FUND | INF761K01199 | 20.85% | -24.69% | 0.87 |
| Canara Robeco Infrastructure Fund | INF760K01274 | 21.58% | -23.68% | 0.73 |
| Nippon India Power & Infra Fund - Regular Plan - Bonus Option | INF204K01AD2 | 21.45% | -25.83% | 0.73 |
| Nippon India Power & Infra Fund - Regular Plan - Growth Option | INF204K01AE0 | 21.45% | -25.83% | 0.73 |
| HDFC Infrastructure Fund - Direct Plan - Growth Option | INF179K01WQ2 | 19.89% | -21.28% | 0.51 |
| Invesco India Infrastructure Fund | INF205K01CD5 | 23.32% | -27.30% | 0.66 |
| HDFC Infrastructure Fund - Regular Plan - Growth Option | INF179K01GF8 | 19.89% | -21.61% | 0.44 |
| Aditya Birla Sun Life Infrastructure Fund | INF209K01504 | 20.59% | -24.66% | 0.63 |
This list is matched by name, so it may include index funds as well as actively managed infrastructure funds. Read the risk table before the returns.
How to invest in Infrastructure mutual funds
You can invest in these funds using the Invo Wealth app. Sign up, get complete portfolio insights and start investing in mutual funds that actually suit you.
Conclusion
Infrastructure funds let you invest in India's build-out, with the concentration and cyclical risks of a single sector. Hold them for the long term and limit exposure.
Frequently asked questions
What is an infrastructure fund?
It is a sectoral mutual fund that invests in equity or debt instruments of companies in the infrastructure sector, such as roads, bridges, power and utilities.
Why invest in an infrastructure fund?
It offers diversification and higher growth potential, supported by steady government focus on infrastructure development.
Are infrastructure funds safe?
They carry higher risk because performance is affected by regulatory policies, economic conditions and interest rates.
What is the ideal horizon for infrastructure funds?
A long-term horizon.
How can I invest in infrastructure mutual funds?
You can invest through a SIP or a lump sum. To invest in these funds, you can use the Invo Wealth app: sign up, get portfolio insights and start investing.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. This article is for education only and is not investment advice. Past performance does not guarantee future returns. Invo Wealth is an AMFI-registered mutual fund distributor (ARN-368528).