The SBI Infrastructure Fund is an open-ended, thematic equity mutual fund that is actively managed. The fund was launched in July 2007 by the SBI Mutual Fund House. The SBI Infrastructure Fund, as the name suggests, is a fund that invests in equity stocks of companies that are either directly or indirectly involved in the infrastructure sector of the Indian economy.
Benchmark: Nifty Infrastructure Index
The SBI Infrastructure Fund is a sectoral fund and not positioned as a diversified equity fund. The fund employs a growth style of investment in equity stocks of mostly mid-cap and small-cap companies. A growth style of investment implies that the fund concentrates more on the future potential of a fund to perform rather than its current market value. The SBI Infrastructure Fund carries an Alpha of 1.45, which is considerably higher than the category average of 0.08 and a Beta of 0.93 which is lower than the category average of 0.99, demonstrating the fund’s capacity to generate higher than expected returns while mitigating risk.
The SBI Infrastructure Fund has outperformed its benchmark on a number of occasions but has been unable to outperform its category. The fund marginally outperforms its benchmark in investment cycles of at least 1 year, but considerably outperforms the benchmark in investment cycles of 3 years or more.
The SBI Infrastructure Fund is a sectoral fund and invests exclusively in the infrastructure sector of the Indian economy. The fund makes investments in mostly small-cap and mid-cap companies that demonstrate good potential for growth in the future and are involved in Infrastructure activities. Presently, the fund invests heavily in the Construction, Engineering, Finance, and Service industries.
1% for redemption within 365 days
The SBI Infrastructure Fund seeks to provide investors with long-term capital growth by actively managed investments in companies that are either directly or indirectly involved in infrastructure activities in the country. The fund also seeks to provide a level of stability and liquidity through nominal investments in debt and other money market instruments.
The SBI Infrastructure Fund is an equity mutual fund of SBI Mutual Fund and is therefore exposed to volatility. As this is an equity mutual fund that invests heavily in the small-cap and mid-cap segments, investors in this fund should have a very high-risk tolerance. As this fund seeks long term capital appreciation investors in this fund should have investment horizons of at least 3 years.