HDFC Infrastructure Fund

The HDFC Infrastructure Fund is a thematic mutual fund oriented towards investments in companies related to the infrastructure industry, or those who have an indirect stake in the industry. It is offered by HDFC Asset Management Company, among the largest AMCs in the country.

Type of fund

This is an open ended sector-specific equity scheme.

Investment objective

The objective here is to offer long term capital appreciation through investments primarily in equity and related instruments of firms that are engaged in or are stakeholders in the returns from growth in infrastructure sector in the country.

Fund information

Inception date 10/03/2008
CRISIL rank Rank 4 in Infrastructure sector equities
Schemes
  • Direct Plan – Growth Option
  • Direct Plan – Dividend Option
  • Growth Option
  • Dividend Option
Entry load 0%. Any upfront commissions to be paid by investor directly to ARN holder.
Exit load 1% if redeemed within 1 year
Minimum investment
  • Rs.5,000 for new investors and any amount thereafter
  • Rs1,000 for existing investors and any amount thereafter
SIP
  • Minimum Rs.500 for monthly subscription
  • Min. Rs.1,500 for quarterly subscription
Product label – Risk and target investors High risk. Meant for long term investors looking at capital appreciation through equity-related investments
Benchmark CNX 500. This index represents almost 96% of all free float market capitalization of equities listed on the National Stock Exchange (NSE). The trading value of constituents of CNX 500 index is close to 92% of overall traded value on the NSE
SWP Yes. Available in Fixed and Variable variants. Frequency of withdrawals are monthly, quarterly half yearly and yearly for Fixed SWP and quarterly, half yearly and yearly for Variable SWP.
STP Yes. Available in two variants namely Fixed Systematic Transfer Plan (FSTP) and Capital Appreciation Systematic Transfer Plan (CASTP). Daily, Weekly, Monthly and quarterly transfer plans are available.
Redemption Proceeds to be processed within 10 days
Taxation (on investment and on redemption) As per applicable sections under the Income Tax Act.

Fund manager(s)

Mr Prashant Jain, Executive Director and Chief Investment Officer, manages the fund and comes with over 20 years of experience in the mutual fund industry. He manages several other funds from HDFC Mutual Funds including HDFC Monthly Income Long Term Plan, HDFC top 200 Fund and HDFC Prudence Growth etc. He is a celebrated fund manager overseeing some of the best products from HDFC AMC. His educational qualifications are CFA – AIMR, USA; PGDM – IIM Bangalore; B. Tech – IIT Kanpur. He has previously worked with Zurich AMC and SBI Mutual Fund.

Mr Srinivas Rao Ravuri is a Senior Fund Manager and has over 18 years of industry experience primarily in fund management and equity research for Indian financial markets. . He manages various funds from HDFC Mutual Funds such as HDFC Focussed Equity Fund and HDFC Rajiv Gandhi Equity Savings Scheme, among others. He has a bachelor’s degree in B.Com and an MBA. He has previously worked with Motilal Oswal Securities Ltd, Edelweiss Capital Ltd and Securities Capital Investments Ltd.

Investment philosophy

The fund is aimed at providing long term capital appreciation through investments in equities of infrastructure-oriented companies. 65-100% of the portfolio consist of such investments at any given time. Interest rate risks are mitigated by exploiting emerging opportunities in the investment scenario.

Portfolio – Sector / Top 10 holdings*

Name Sector Class Allocation (%)
State Bank of India Financial Equity 8.04
Larsen & Toubro Ltd Diversified Equity 6.92
Bank of Baroda Financial Equity 5.95
ICICI Bank Ltd Financial Equity 5.65
Sadbhav Engineering Ltd Construction Equity 3.78
Infosys Ltd Tech Equity 3.66
Siemens Ltd Engineering Equity 3.64
Tata Motors DVR Auto Equity 3.44
ITD Cementation India Ltd Construction Equity 3.03
Sanghvi Motors Ltd Construction Equity 2.88

*As on 31st July 2015

Risk measures

Standard Deviation 27.91%
Sharpe Ratio 0.52
Alpha 0.83%
Beta 1.66

Performance*

AUM Rs.1,928.39 crores (Growth)
NAV
  • Direct Plan – Dividend Option: Rs.15.1160
  • Direct Plan – Growth option: Rs.15.1160
  • Dividend Option: Rs.13.5300
  • Growth Option: Rs.14.7940
Expense Ratio
  • 2.50% on first Rs.100 crores daily net assets
  • 2.25% on next Rs.300 crores
  • 2.00% on next Rs.300 crores
  • 1.75% on remaining daily net assets
 

* As on 31st July 2015

Benchmark comparison*

Compounded Annualised Returns Scheme Returns (%) Benchmark Returns (%)
Returns for last 1 year 6.31 7.26
Returns for last 3 years 8.35 6.54
Returns for last 5 years NA NA
Returns since inception 5.85 5.50

*As on 31st March 2011

Expert view of the fund

The HDFC Infrastructure Fund is a good bet if you are looking for a thematic fund that gains from the rise of the infrastructure sector. The fund has given healthy returns over its 7 years of existence and is managed by the celebrated Prashant Jain. Long term investors can rely on the fund for capital appreciation as the sector is likely to go up in the long run and short term volatility is possible. You should always consult with your personal financial advisor before investing in any risky instruments such as mutual funds.

How to apply

Investors and use both online and offline routes to invest in HDFC Prudence Fund.

  • Online

    Online investors can directly log in to the official website and register with HDFCMFOnline portal. On completing the KYC norms they will be given a HPIN number which can be used for further processes. Payments can be made through multiple avenues. Alternatively, investors can also approach third party online vendors who have lists of products.

  • Offline

    For offline investors, there are many branches catering to HDFC mutual funds. You can directly approach a registered branch and submit the KYC norms. You will then have to fill up the required documents and submit information as they ask. Alternatively, you can approach third-party distributors and dealers who can help you out with the registration and investment process, after careful consideration.

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