List of the Top Infrastructure Mutual Funds 2026

The government has allocated ₹11.21 lakh cr for capital expenditure, which is about 3.1% of GDP. Out of this, ₹2.65 lakh cr has been set aside for Railways and ₹2.87 lakh cr for roads and highways. There are also large allocations for renewable energy, airports, urban development, and logistics.

With thousands of projects under the National Infrastructure Pipeline, infrastructure remains closely linked to India’s growth plans. Below is a list of the top Infrastructure funds focusing on capturing this growth, along with benefits, risks, and key factors to consider before investing in infrastructure mutual funds in India.

Top Infrastructure Mutual Funds

Here is a list of the top infrastructure mutual funds based on the last 5Y CAGR.

Disclaimer: Please note that the above list of the Infrastructure Mutual funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Note: The data on the list of infra mutual funds is from 24th February 2026. This data is derived from the Tickertape Mutual Funds Screener.

• Plan: Growth
• Category: Sectoral Fund – Infrastructure
• 5Y CAGR: Sorted from highest to lowest

Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

What are Infrastructure Mutual Funds?

Infrastructure mutual funds are sectoral equity mutual funds that invest mainly in companies involved in building and operating infrastructure in India. These mutual funds typically invest in businesses related to:

• Roads and highways
• Railways and metro projects
• Power generation and transmission
• Airports and ports
• Construction and engineering (EPC)
• Cement, capital goods, and logistics

Unlike diversified equity funds that invest across many sectors, infrastructure mutual funds focus primarily on the infrastructure sector. 

Overview of Top Infrastructure Mutual Funds

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund Direct Growth is a sectoral equity fund that invests mainly in infrastructure-related companies. It focuses on areas such as construction, engineering, power, transport, cement, and capital goods. The fund aims to generate long-term capital growth by investing in companies that benefit from infrastructure development in India.

DSP India T.I.G.E.R. Fund

DSP India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) invests in companies linked to infrastructure growth and economic reforms. The fund spreads its investments across sectors such as capital goods, energy, industrials, and construction. It follows a thematic approach focused on India’s infrastructure expansion.

Franklin Build India Fund

Franklin Build India Fund invests primarily in companies that build and support infrastructure projects. It includes construction firms, engineering companies, utilities, and materials businesses. The fund seeks long-term capital appreciation through infrastructure-linked opportunities.

LIC MF Infrastructure Fund

LIC MF Infrastructure Fund invests in equity and equity-related securities of companies involved in infrastructure activities. The portfolio includes businesses in power, roads, transportation, cement, and capital goods. The fund focuses on capturing growth from infrastructure spending in India.

HDFC Infrastructure Fund

HDFC Infrastructure Fund growth is a sectoral equity fund that invests mainly in companies connected to infrastructure development. It includes exposure to engineering, construction, power, logistics, and materials companies. The fund aims to benefit from long-term infrastructure growth trends in India.

Quant Infrastructure Fund

Quant Infrastructure Fund invests primarily in companies involved in infrastructure and infrastructure-related sectors. It focuses on roads, power, construction, capital goods, and logistics companies. The fund aims to capture growth from infrastructure spending and project execution cycles.

Canara Rob Infrastructure Fund

Canara Rob Infrastructure Fund allocates most of its assets to infrastructure and related sectors. The portfolio includes companies engaged in construction, engineering, power, transportation, and allied industries. The fund seeks to benefit from India’s infrastructure expansion and capital expenditure trends.

Bank of India Mfg & Infra Fund

Bank of India Mfg & Infra Fund invests in a mix of manufacturing and infrastructure companies. It includes businesses involved in industrial production, construction, engineering, power, and technology that support manufacturing and infrastructure growth. The fund aims to participate in broad economic development linked to production and infrastructure cycles.

Taxation on Infrastructure Mutual Funds

Infrastructure mutual funds are classified as equity mutual funds because they invest predominantly in equities of infrastructure-related companies. The taxation on infrastructure mutual funds is as follows:

How to Invest in the Infrastructure Mutual Funds?

You can easily start to invest in the best infra mutual funds by following these steps:

• To invest in the infrastructure mutual funds, you can visit an equity investment platform such as smallcase 
• The next step is to research and identify the best infrastructure fund that matches your investment thesis. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
• Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a SIP plan, and complete the process.

Who Should Invest in Infrastructure Mutual Funds?

• Investors Who Understand Sector Concentration: These funds invest predominantly in infrastructure-related businesses such as roads, railways, power, construction, logistics, and capital goods. Investors should understand that returns depend largely on the performance of this sector rather than the broader market.
• Investors Seeking Thematic Exposure: These funds provide targeted exposure to India’s infrastructure growth story through a single scheme. They offer access to companies involved in transportation, energy, urban development, and industrial expansion.
• Investors Who Can Navigate Economic Cycles: Infrastructure performance often aligns with capital expenditure trends, GP growth, and policy support. Investors should be aware that sector performance may strengthen during expansion phases and moderate during slowdowns.; 
• Investors Who Want Diversification: Some investors include infrastructure mutual funds as part of their broader equity portfolio rather than as a core holding. This approach allows thematic exposure while maintaining overall diversification through other equity categories.

Benefits of Investing in Infrastructure Mutual Funds

• Strong Government Capital Expenditure Support: The Union Budget 2025–26 allocated ₹11.21 lakh cr. for capital expenditure, which equals 3.1% of GDP. The government allocated ₹2.65 lakh cr. to Railways and ₹2.87 lakh cr. to Roads and Highways. These allocations improve revenue visibility for companies involved in construction, engineering, transport, and materials. 
• Large and Expanding Project Pipeline: The National Infrastructure Pipeline includes 9,142 projects across 34 sub-sectors. Around 2,476 projects are under development with estimated investments of $ 1.9 tn. India plans to spend nearly ₹143 lakh cr. on infrastructure through 2030, which is more than double the spending of the previous seven-year cycle. 
• Growth in Transport and Logistics: India expanded its National Highways network to 1,46,342 km in FY25, with 10,660 km constructed during the year. Indian Railways recorded ₹2.62 lakh cr. in revenue and freight loading of 1.61 billion tn in FY25. The logistics market is projected to grow steadily over the next few years. 
• Expansion in Power and Renewable Energy: The government aims to achieve 500 GW of renewable capacity by 2030. Budget allocations for solar power and clean energy initiatives strengthen opportunities for companies engaged in power generation, transmission, equipment manufacturing, and renewable development.
• Increasing Private and Global Participation: FDI inflows into construction development and infrastructure remain substantial. The government’s Asset Monetisation Plan aims to recycle ₹10 lakh cr. into new infrastructure projects between 2025 and 2030. Private sector participation reduces funding pressure on the government and expands the capital base for infrastructure expansion. 
• Policy Alignment and Long-Term National Plans: The government continues to implement initiatives such as PM Gati Shakti, Bharatmala, UDAN, and the Smart Cities Mission to coordinate infrastructure development. These programmes improve planning efficiency and support integrated development across roads, railways, ports, airports, and digital infrastructure. 

Risks of Investing in Infrastructure Mutual Funds

• Sector Concentration Risk: Infrastructure mutual funds invest primarily in one sector. If infrastructure stocks underperform due to economic slowdown or weak project activity, the fund may face sharper corrections compared to diversified equity funds. Limited sector exposure reduces diversification benefits.
• Policy and Regulatory Risk: Infrastructure development depends heavily on government policies, approvals, and regulations. Changes in budget priorities, delays in clearances, or modifications in project guidelines can affect company revenues and execution timelines.
• Project Execution Risk: Large infrastructure projects involve land acquisition, environmental approvals, funding arrangements, and coordination between multiple agencies. Delays or cost overruns can reduce profitability and impact the stock prices of companies in the portfolio.
• Interest Rate Sensitivity: Infrastructure companies often require significant capital and carry higher debt levels. Rising interest rates increase borrowing costs and reduce margins. Higher financing costs can slow down new project investments and affect earnings.
• Earnings Cyclicality: Infrastructure businesses operate in cycles. Order inflows, revenue growth, and margins can fluctuate depending on the capital expenditure cycle and overall economic conditions. During weak cycles, earnings growth may slow.

Factors to Consider Before Investing in Infrastructure Mutual Funds

• Fund Portfolio Composition: Review the fund’s allocation across sub-sectors such as roads, railways, power, renewables, logistics, cement, and capital goods. Some funds may have higher exposure to a few stocks. Portfolio concentration can influence overall volatility and risk.
• Exposure to Government Spending: Infrastructure growth depends strongly on public capital expenditure. Budget allocations, project announcements, and policy execution affect company earnings. Monitoring capex trends helps in understanding sector momentum.
• Interest Rate Environment: Infrastructure projects require large capital investments. Changes in interest rates directly affect borrowing costs and profitability. Rising rates may reduce margins, while stable rates may support expansion.
• Economic and Capex Cycle Position: Sector performance often aligns with economic growth and investment cycles. Understanding whether the economy is in an expansion or slowdown phase helps in evaluating sector risk.
• Expense Ratio: Higher expense ratios can impact net returns over time. That’s why it is important to analyse the fund’s expense ratio in comparison with other infrastructure mutual funds and assess whether the cost aligns with the fund’s performance, strategy, and long-term consistency.
• Role in Overall Portfolio Allocation: Infrastructure mutual funds are sector-specific. Investors should assess how this allocation fits within their broader equity portfolio. Maintaining diversification across sectors can help balance overall risk.

Conclusion

Infrastructure mutual funds provide focused exposure to India’s infrastructure growth, supported by strong government capex and large project pipelines. However, they remain sector-concentrated and cyclical. Returns depend on policy execution, interest rates, project timelines, and company fundamentals.

Before investing, review portfolio composition, debt levels, order book visibility, valuation trends, and expense ratios. To analyse infrastructure mutual funds in detail, use the Tickertape Mutual Fund Screener, which provides 50+ filters. You can compare funds based on returns, risk metrics, expense ratio, portfolio allocation, volatility, and consistency using pre-built filters for structured evaluation.

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Frequently Asked Questions on Infrastructure Mutual Funds