ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund is being managed by Yogesh Bhatt since Feb 2012 and Atul Patel since May 2012. The infrastructure sector in general has given mixed performance in the last 3 years. Sectoral funds are risky to invest in. This fund is suitable for you if you are looking to make opportunistic returns from the infrastructure sector. If you have invested in this fund, keep a close watch on where performance is headed.

Where does ICICI Prudential Infrastructure fund invest your money?

ICICI Prudential Infrastructure Fund is a large cap infrastructure fund which invests your money in companies in the core infrastructure and allied sectors. Large cap companies tend to be stable compared to mid cap and small cap companies. Yet mid caps are not avoided due to prospects of kicker returns from them. This fund has 72.09% exposure to large companies, 13.76% exposure to medium size companies and 12.72% to small size companies.

Suitable for what?
  • Child's Education
  • Child's Marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creation of wealth
  • Short term needs
  • Lifetyle needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. You can make ICICI Prudential Infrastructure Fund as part of your core portfolio. Core portfolio is the investment that is made for your basic goals and makes up about 70% of your investment portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment.
Recommended
How has ICICI Prudential Infrastructure fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in July 2005 the value of your investments would be around Rs 2.62 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 88574 . The performance has been not better than or similar to other mutual funds in this category. The fund has been giving at around -2.3% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in ICICI Prudential Infrastructure Fund through SIP for the past 5 years today you would have just around Rs 6.29 lakhs.

How will ICICI Prudential Infrastructure fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 

We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

No exit load applies for units withdrawn in this scheme. Expense ratio of ICICI Prudential Infrastructure fund is 2.28%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to exit?

Withdraw when you see that it is no longer the top performing sectors anymore. Do not remove the money when the markets go up or down in the short term. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. ICICI Prudential Infrastructure Fund does not qualify for sec 80C ELSS benefits.

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