Data shared by the asset manager shows that the fund has delivered a compounded annual return of about 14.94% since launch, reflecting a more than six-fold growth in the initial investment as of February 28.
The milestone comes amid continued investor interest in sectoral funds linked to India’s infrastructure and capital expenditure cycle.
Managed by Vishal Biral, the scheme invests across segments such as capital goods, construction, power, railways, and defence, with a diversified allocation spanning market capitalisations. The fund’s positioning indicates a higher allocation towards capital goods, along with exposure to telecom and construction materials, while adjustments have been made in services and telecommunications in recent months.
The fund house said stock selection in sectors such as construction, capital goods, and healthcare contributed to recent performance. Portfolio changes have included additions to companies such as Bharat Heavy Electricals Ltd (BHEL), CESC, and Clean Science & Technology, alongside exits from select holdings.
Sector-focused funds like infrastructure schemes are typically more sensitive to economic cycles and policy-driven capital expenditure trends. Analysts note that while such funds may benefit from a sustained investment cycle in areas like manufacturing and public infrastructure, they can also witness higher volatility compared to diversified equity funds.
The fund’s 15-year track record spans multiple market phases, including periods of economic expansion and slowdown. However, market participants caution that past performance may not be sustained, and returns from sectoral funds can vary significantly depending on timing and market conditions.
Financial planners generally advise investors to approach thematic or sectoral funds with a long-term horizon and adequate risk tolerance, while ensuring portfolio diversification rather than relying heavily on a single theme.