Infrastructure Funds: Quant Fund Alternatives & Top Picks

If you’re looking at infrastructure funds, you might have heard about the Quant Infrastructure Fund. Despite its strong raw returns, this fund holds a 2-star Value Research rating and a significant concentration in Adani Group stocks.

It’s important to consider other options that might better align with your investment goals and risk tolerance.

Understanding Your Options

When evaluating infrastructure funds, key factors like 5-year Compound Annual Growth Rate (CAGR), expense ratio, and Value Research ratings help you compare effectively. This comparison focuses on direct plan figures and factsheet data from mid-August 2026.

• The ICICI Prudential Infrastructure Fund boasts the highest 5-year CAGR at 22.59% and a strong 5-star Value Research rating. However, it also has the highest expense ratio at 1.52%.
• The Franklin Build India Fund offers a balanced approach with a 4-star rating and a moderate expense ratio of 0.83%. This could be a good middle-ground for you.
• The Invesco India Infrastructure Fund shows competitive returns at a moderate expense ratio of 0.76%, though its Value Research rating was not confirmed in the data reviewed.

Important Risk Considerations

Before making any switches, remember that all these infrastructure funds carry a “Very High” SEBI risk rating. This is because they are sector-specific, focusing on a single cyclical theme.

Moving to a higher-rated fund might reduce concentration risk in a single stock or conglomerate. However, it does not change the fundamental nature of a sector fund.

A sector fund, by definition, is not a diversified core holding for your portfolio. For broader diversification, a diversified equity fund is generally recommended over switching between various infrastructure sector funds.

Always remember that mutual fund investments are subject to market risk, and all figures change daily.