Bandhan Infrastructure Fund - Direct Plan
Bandhan Infrastructure Fund - Direct Plan
An open ended equity scheme investing in Infrastructure sector
What is an Infrastructure Fund?
An Infrastructure Mutual Fund is a mutual fund for infrastructure development. Infra funds invest a minimum of 80% of their assets in companies that are a part of the infrastructure sector. Infrastructure development is crucial for the economic growth and development of a country, and infra funds help contribute to that development while giving investors potential gains in the long run
The performance of an Infrastructure Mutual Fund may be highly dependent on government policies and bureaucracy; they are thus categorised as a very high-risk fund, but they also have the potential to give stable returns in the long term. Development of infrastructure often continues during economic slowdowns, albeit at a slower pace. These funds may be relatively less volatile.
As infrastructure is tangible, it may generate cash flow in the long term. Infrastructure mutual funds also allow the investor to diversify their investments and may potentially protect investors from volatility when stock prices fluctuate. Nevertheless, most infrastructure funds in India are high-risk-return investments.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
• If redeemed/switched out on/within 30 days from the date of allotment - 0.5% of the applicable NAV.
• If redeemed/switched out after 30 days from the date of allotment - Nil.
Scheme is suitable for a minimum investment horizon of more than 5 years
Tier 1 Benchmark : S&P BSE India Infrastructure TRIAlternate Benchmark : Nifty 50 TRI
- Performance
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Performance as on 28th March 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 08/03/2011 Since inception | 1 year | 3 year | 5 year | 10 year | 08/03/2011 Since inception | |
| Bandhan Infrastructure Fund - Regular Plan - Growth | 76.89 | 33.23 | 23.41 | 17.93 | 11.85 | 17,717 | 23,703 | 28,655 | 52,088 | 43,211 |
| 109.94 | 41.38 | 25.70 | 17.61 | 14.82 | 21,037 | 28,343 | 31,425 | 50,688 | 60,856 | |
| 33.11 | 16.75 | 15.37 | 14.16 | 12.65 | 13,322 | 15,935 | 20,451 | 37,653 | 47,417 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Vishal Biraia (w.e.f 24/01/2024)
View fund performance of other funds managed by Mr. Vishal Biraia
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/3spfzbo
Bandhan Infrastructure Fund
(Scheme Risk-o-meter)
S&P BSE India Infrastructure TRI
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To create wealth over long term.
- Investment predominantly in equity and equity related instruments of companies that are participating in and benefiting from growth in Indian infrastructure and infrastructural related activities.
Who Should Invest in Infrastructure Investment Funds?
Although Infrastructure investment funds may offer some stability to your financial portfolio, they are a high-risk investment. While Infrastructure Mutual Funds have the potential to provide high returns, infrastructure development can be affected by unforeseen environmental conditions, socio economic problems and project delays. Consequently, they may not be suitable for risk-aversive investors. Infrastructure funds are suitable for investors seeking investments predominantly in equity and equity-related instruments of companies that are participating in and benefiting from the growth in Indian infrastructure and infrastructure-related activities.
As infrastructural development takes time, Infrastructure Mutual Funds are a long term investment. They are not ideal for investors with a short-term investment horizon. They may be suitable for investors looking to create wealth in the long term.
FAQs on Infrastructure Mutual Funds
What is an Infrastructure mutual fund in India?
An Infrastructure mutual fund invest at least 80% of its assets in companies working in infrastructure and infrastructure-related activities in India.
Is it safe to invest in Infrastructure mutual funds?
Infrastructure mutual funds are categorised as high-risk investments. As infrastructural development is a continuous process they may potentially provide stable returns, however, they are significantly impacted by external and uncontrollable factors such as government policies and bureaucracy, environmental conditions and socio-economic conditions. They are not suitable for risk-averse investors.
What does an Infrastructure fund do?
An Infrastructure fund is essentially a mutual fund for infrastructure development. It invests in companies participating in infrastructural development and related activities. They contribute to the development of the economy while potentially generating stable returns for the investor.
What are the risks of investing in Infrastructure funds?
Infrastructure funds invest in companies working on infrastructural development in the country. Consequently, they are vulnerable to government policies and unforeseen environmental and social circumstances.
What is the typical duration of an Infrastructure fund?
Infrastructure mutual funds in India are a long term investment as the development of infrastructure takes time. Ideally, an investor may remain invested in these funds for 8-10 years in order to potentially generate favourable returns.
What are the advantages of Infrastructure investment?
As Infrastructure mutual funds invest in infrastructural development of the country, they can potentially provide steady returns and cash flow. They are suitable for investors seeking wealth-creation opportunities for the long term. They may also be a suitable investment for the diversification of an investment portfolio.
What are the disadvantages of Infrastructure investment?
Infrastructure mutual funds may be vulnerable to government and bureaucratic policies and susceptible to cost overruns, project delays and other unforeseen socio-economic and environmental problems. Moreover, they may generate returns in the long run and are not ideal for short-term gains.
Are infrastructure funds equity or debt?
Infrastructure funds invest in equity and equity-related instruments of companies participating in developing infrastructure and other infrastructural activities within the country.