Synopsis– As India undergoes an infrastructure boom with government initiatives and capital outlays, investors are moving towards investing in infrastructure-oriented mutual funds and exchange traded funds to attain long term growth. The article discusses the best performing mutual funds in terms of 5 year SIP returns, and new infrastructure ETFs at low-cost index exposure. A close comparison assists investors in choosing active or passive infrastructure funds in their portfolio.
Top 3 Infrastructure Mutual Funds based on 5 years SIP XIRR
1. ICICI Prudential Infrastructure Fund – Direct Growth
- 5-Year SIP XIRR: 29.73%
- AUM: ₹8,042 Crores as on 08-08-2025
- Expense Ratio: 1.14%
- NAV: ₹207.82
- Minimum Lump Sum: ₹5,000
- Minimum SIP: ₹100
- The fund has provided the best 5-year SIP returns in the infrastructure segment even outperforming its benchmark (Nifty Infrastructure TRI: 20.98%). With 63 holdings and a wide portfolio across fundamental sectors, it fits well to aggressive investors who are keen on long term capital appreciation based on the infrastructure growth story of India.
Top 5 Sector Allocation:
| Sector | Allocation (%) |
| Construction | 19.01% |
| Financial Services | 16.26% |
| Capital Goods | 14.62% |
| Oil, Gas & Consumable Fuels | 9.32% |
| Construction Materials | 8.54% |
2. HDFC Infrastructure Fund – Direct Growth
- 5-Year SIP XIRR: 28.86%
- AUM: ₹2,591 Crores as on 08-08-2025
- Expense Ratio: 1.08%
- NAV: ₹51.94
- Minimum Lump Sum: ₹100
- Minimum SIP: ₹100
- The performance of this fund has been consistent with a 5-year SIP XIRR of 28.86% much higher than the benchmark. It is widely diversified in 57 holdings to give an equal coverage of infrastructure and related fields.
Top 5 Sector Allocation:
| Sector | Allocation (%) |
| Financial Services | 19.98% |
| Construction | 19.68% |
| Capital Goods | 12.02% |
| Oil, Gas & Consumable Fuels | 8.93% |
| Services | 8.92% |
3. LIC MF Infrastructure Fund – Direct Growth
- 5-Year SIP XIRR: 28.60%
- AUM: ₹1,038 Crores as on 08-08-2025
- Expense Ratio: 0.82%
- NAV: ₹55.80
- Minimum Lump Sum: ₹5,000
- Minimum SIP: ₹200
- Although this fund is the smallest of its peers, it has been a top performing fund with an impressive 5-year SIP XIRR of 28.60%, far away ahead of the Nifty Infra TRI. It has 70 holdings with heavy weightage on Capital Goods which could be suitable to investors inclined toward manufacturing, engineering, and Make-in-India programs.
Top 5 Sector Allocation:
| Sector | Allocation (%) |
| Capital Goods | 44.85% |
| Construction | 8.59% |
| Financial Services | 6.64% |
| Automobile and Auto Components | 5.18% |
| Power | 5.10% |
Comparison of Top Infrastructure Mutual Funds
| Parameter | ICICI Pru Infra | HDFC Infra | LIC MF Infra |
| 5-Year SIP XIRR | 29.73% | 28.86% | 28.60% |
| AUM (as on 08-08-2025) | ₹8,042 Cr | ₹2,591 Cr | ₹1,038 Cr |
| Expense Ratio | 1.14% | 1.08% | 0.82% |
| NAV (as on 08-08-2025) | ₹207.82 | ₹51.94 | ₹55.80 |
| Minimum Lump Sum Investment | ₹5,000 | ₹100 | ₹5,000 |
| Minimum SIP Amount | ₹100 | ₹100 | ₹200 |
| Number of Holdings | 63 | 57 | 70 |
| Top Sector Allocation | Construction (19.01%) | Financial Services (19.98%) | Capital Goods (44.85%) |
Also read: Top 7 Best Performing ELSS Mutual Funds for 2025 – Which One Do You Hold in Your Portfolio?
Infrastructure ETFs
1. ICICI Prudential Nifty Infrastructure ETF
- Market Price (08-08-2025): ₹91.84
- 52-Week Low / High: ₹77.65 / ₹99.84
- AUM: ₹159 Crores as on 08-08-2025
- Expense Ratio: 0.50%
- Listing Date: 24 August 2022
- Listing Price: ₹51.93
- This is an ETF that tracks the Nifty Infrastructure TRI and it has increased steadily since its establishment. It has a strong AUM of 159 Cr with more than 75% appreciation over its listing price, reflecting the surge in the interest of investors in the infrastructure development theme in India.
2. Motilal Oswal BSE India Infrastructure ETF
- Market Price (05-08-2025): ₹58.25
- 52-Week Low / High: ₹57.45 / ₹63.04
- AUM: ₹5.2 Crores
- Expense Ratio: 0.48%
- Listing Date: 22 May 2025
- Listing Price: ₹60.41
- This ETF started to trade a few months ago as a tracking instrument of the BSE India Infrastructure Index. It is trading at a marginally reduced value than its listing price, and it has a low AUM thus still in its growth stage. It is well-suited to an investor who wants exposure to infrastructure, but at low cost through a passively managed fund.
Comparison Table: Infrastructure-Focused ETFs
| Parameter | ICICI Pru Nifty Infra ETF | Motilal Oswal BSE Infra ETF |
| Market Price | ₹91.84 (as of 08-08-2025) | ₹58.25 (as of 05-08-2025) |
| 52-Week Low / High | ₹77.65 / ₹99.84 | ₹57.45 / ₹63.04 |
| AUM | ₹159 Cr | ₹5.2 Cr |
| Expense Ratio | 0.50% | 0.48% |
| Listing Date | 24 Aug 2022 | 22 May 2025 |
| Listing Price | ₹51.93 | ₹60.41 |
Final Thoughts
In the last few years, the Infrastructure sector has performed very well. Infrastructure mutual funds have proven to achieve good returns and are still attractive to Indian investors; ETFs provide a cheaper alternative since they have lower expense ratios. Infrastructure ETFs are however still new in India with little awareness and lower trading volumes which can influence liquidity. The investors must consider whether to prefer an active or a low cost passive exposure.
Written by Prajwal Hegde
