Tata Infrastructure Fund

Tata Infrastructure Fund is being managed by Amish Munshi since January 2012. This is one of earliest infrastructure funds in India. The infrastructure sector in general has given mixed performance in the last 3 years. This fund’s performance has lagged behind many of its peers by a significant margin. If you have invested in this fund, exit now. If you are a new investor you can skip this one for a better performing large cap fund. Investing in sector funds is highly risky.

Where does Tata Infrastructure fund invest your money?

Tata Infrastructure Fund is a large cap oriented infrastructure fund which means most of your money is invested in giant and large companies but also some medium and small size companies in the infrastructure industry which include Telecom, Power, Port, Air, Roads, Railways, Shipping and other Utility Services Providers. Tata Infrastructure Fund has 70.47% exposure to giant and large size companies, 22% exposure to medium size companies and 8% exposure in small size companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Buying house
  • Planning for retirement
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment.
Not Recommended
How has Tata Infrastructure fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in December 2004 the value of your investments would be around Rs 2.74 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 0.80 lakhs. The performance has been not performing well as compared to other mutual funds in this category. The fund has been giving at around -4% every year for those who stayed invested for last 5 years. 

Assume you had invested Rs 10,000 every month in Tata Infrastructure Fund through SIP for the past 5 years today you would have just around Rs 5.9 lakhs.

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.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Tata Infrastructure Fund is 2.03%. 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.

What are the tax implications?

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

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