A decade ago, a Rs 10,000 monthly SIP in an infrastructure mutual fund may not have looked like the most exciting investment idea. Today, that same SIP could have grown into more than Rs 40 lakh in some cases.
The remarkable part? Infrastructure-focused schemes account for five of the top 10 mutual funds with the highest SIP returns over the last 10 years. While small-cap funds often dominate discussions around wealth creation, data shows that infrastructure funds have quietly emerged as some of the biggest long-term winners of India’s growth story.
According to Value Research data, 5 infrastructure-oriented schemes delivered annualised SIP returns of 21% or more over the past decade, helping investors build substantial wealth through disciplined investing.
Top 5 infrastructure funds among the 10 best SIP performers
| Fund | 10-Year SIP Return (%) | Value of Rs 10,000 Monthly SIP |
| Quant Infrastructure Fund | 23.36 | Rs 41.14 lakh |
| Bank of India Manufacturing & Infrastructure Fund | 21.57 | Rs 37.32 lakh |
| DSP India T.I.G.E.R. Fund | 21.24 | Rs 30.74 lakh |
| LIC MF Infrastructure Fund | 21.04 | Rs 36.24 lakh |
| Invesco India Infrastructure Fund | 21 | Rs 36.29 lakh |
Quant Infrastructure Fund
The biggest wealth creator among infrastructure schemes was Quant Infrastructure Fund – Direct Plan – Growth, which generated an annualised SIP return of 23.36% over the last 10 years. A Rs 10,000 monthly SIP in the scheme would have grown to around Rs 41.14 lakh.
Launched in January 2013, the fund has delivered a return of 17.33% since inception and manages assets worth Rs 3,073 crore. Benchmarking itself against the Nifty Infrastructure TRI, the scheme follows a focused infrastructure strategy and carries a very high-risk rating. The fund’s 10-year lumpsum return stands at 21.30% CAGR.
Bank of India Manufacturing & Infrastructure Fund
The Bank of India Manufacturing & Infrastructure Fund generated an annualised SIP return of 21.57% over 10 years. A Rs 10,000 monthly SIP would have accumulated to approximately Rs 37.32 lakh.
Launched in 2013, the scheme invests across manufacturing and infrastructure businesses and has delivered a return of 17.47% since launch. It manages assets worth Rs 755 crore and is benchmarked equally against the BSE India Infrastructure TRI and BSE India Manufacturing TRI. Its 10-year lumpsum return stands at 19.68% CAGR.
DSP India T.I.G.E.R. Fund
DSP India T.I.G.E.R. (The Infrastructure Growth and Economic Reforms) Fund delivered a 21.24% annualised SIP return over the last decade.
The fund, launched in 2013, focuses on infrastructure-linked businesses that stand to benefit from economic reforms and capital expenditure cycles. It has generated a return of 16.87% since launch and manages assets worth Rs 5,789 crore. The scheme’s 10-year lumpsum return is 18.82% CAGR.
LIC MF Infrastructure Fund
LIC MF Infrastructure Fund – Direct Plan – Growth delivered a 21.04% annualised SIP return over 10 years, turning a disciplined SIP into a sizeable corpus.
Launched in January 2013, the fund has generated a return of 15.78% since inception and manages assets worth Rs 1,047 crore. Benchmarking itself against the Nifty Infrastructure TRI, the scheme has benefited from the strong performance of infrastructure-linked sectors over the long term. Its 10-year lumpsum return stands at 18.17% CAGR.
Invesco India Infrastructure Fund
Invesco India Infrastructure Fund rounds out the list with a 21.00% annualised SIP return over the last decade.
The scheme has delivered 18.95% since launch, among the highest inception-to-date returns in the infrastructure category. With assets worth Rs 1,497 crore, the fund has generated a 10-year lumpsum return of 19.17% CAGR.
How do infrastructure funds compare with other categories?
Interestingly, infrastructure funds do not top the category rankings when average category returns are compared.
According to Value Research data, thematic energy funds generated the highest average 10-year category return at 17.09%, followed by small-cap funds at 16.49%, thematic PSU funds at 16.26%, and thematic infrastructure funds at 15.97%.
| Category | 3-Year Return (%) | 5-Year Return (%) | 10-Year Return (%) |
| Thematic-Energy | 20.17 | 14.75 | 17.09 |
| Small Cap | 17.79 | 16.42 | 16.49 |
| Thematic-PSU | 27.22 | 24.31 | 16.26 |
| Thematic-Infrastructure | 19.97 | 19.33 | 15.97 |
However, the category averages tell only part of the story. The fact that five infrastructure funds feature among the top 10 SIP performers suggests that the best-managed schemes in the segment have significantly outperformed their category averages.
Why have infrastructure funds done so well?
Infrastructure funds have benefited from one of the strongest and longest investment cycles India has witnessed in recent decades.
Over the past 10 years, the Centre’s capital expenditure has risen sharply, with record allocations towards roads, railways, ports, airports, defence manufacturing, power transmission and urban infrastructure. Large government programmes such as the National Infrastructure Pipeline, PM GatiShakti, Bharatmala and Sagarmala have created a steady flow of projects and investment opportunities.
At the same time, infrastructure funds have evolved beyond traditional construction and engineering companies. Many now invest across capital goods, industrial manufacturing, logistics, transportation, utilities, power equipment, railways and defence-linked businesses, effectively making them broader plays on India’s economic growth.
The manufacturing push under initiatives such as Make in India, rising private sector capex, supply chain diversification and growing logistics demand have further supported earnings growth across infrastructure-linked sectors.
Should investors invest in infrastructure funds?
Infrastructure funds have rewarded patient investors handsomely over the last decade, but they remain thematic funds with concentrated exposure to a specific segment of the economy.
While the sector currently benefits from strong policy support and ongoing capital expenditure, returns can be cyclical and closely linked to economic conditions, government spending and corporate investment trends.
Financial planners generally suggest limiting thematic funds to a satellite allocation within a diversified portfolio rather than making them the core of one’s equity investments.
Data source: Value Research. Fund-specific information sourced from respective scheme factsheets. Industry data sourced from AMFI.
Disclaimer: Past performance does not guarantee future returns. Mutual fund investments are subject to market risks. Investors should read all scheme-related documents carefully and assess their risk profile before investing.
Every financial journey has a turning point. What’s yours?
Financial Express is launching a new series highlighting real experiences with money, investments, and the taxman. Did a sudden tax rule catch you off guard? Did a piece of financial advice change your life? Your story could provide invaluable, practical lessons for thousands of fellow taxpayers. Share your experience with us. We respect your privacy: no stories will be featured without a direct conversation and your full consent. Thank you.