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What is the ICICI Prudential Infrastructure Fund?
The ICICI Prudential Infrastructure Fund is an equity mutual fund that primarily invests in companies benefiting from India’s infrastructure development. It focuses on sectors like roads, power, construction, real estate, and industrial manufacturing, aiming for long-term capital appreciation.
Key Features & Benefits
- Sector-Specific Growth Potential
- Invests in high-growth infrastructure-related stocks.
- Benefits from government initiatives like PM Gati Shakti, National Infrastructure Pipeline (NIP), and Smart Cities Mission.
- Long-Term Wealth Creation
- Ideal for investors with a 5+ year horizon.
- Historically delivered strong returns in bullish infrastructure cycles.
- Diversified Portfolio
- Spread across large-cap, mid-cap, and small-cap stocks.
- Top holdings include L&T, NTPC, Ultratech Cement, and other infra giants.
- Tax Efficiency (Equity-LTCG Benefits)
- Long-term capital gains (LTCG) tax of 10% (for gains > ₹1 lakh/year).
- Dividends taxed as per income slab.
- Systematic Investment Plan (SIP) Option
- Start with as low as ₹100/month.
- Benefit from rupee cost averaging and compounding.
Who Should Invest?
✔ Aggressive Investors – Willing to take risks for higher returns.
✔ Long-Term Planners – 5+ years investment horizon.
✔ Believers in India’s Infra Growth – Betting on roads, power, real estate, etc.
Performance & Historical Returns (Data)
| Duration | Returns (CAGR %) |
|---|---|
| 1 Year | ~25-30%* |
| 3 Years | ~18-22%* |
| 5 Years | ~12-15%* |
| Since Inception (2005) | ~14-16%* |
(Past performance not indicative of future returns. Data as of [latest month/year].)
Fund Details (Quick Facts)
- Category: Equity – Sectoral/Thematic (Infrastructure)
- Risk Level: High (Market-linked, volatile)
- Expense Ratio: ~1.5-2% (Check latest factsheet)
- Minimum Investment:
- Lump Sum: ₹5,000
- SIP: ₹500/month
Pros & Cons
✅ Pros:
- High growth potential during infra boom.
- SIP option for disciplined investing.
- Tax benefits under LTCG.
❌ Cons:
- High risk (sector-specific volatility).
- Not for short-term investors.
How to Invest?
- Choose Platform – Via ICICI Pru website, MF platforms (Coin, Groww, etc.).
- Complete KYC (PAN & Aadhaar required).
- Select SIP/Lump Sum and start investing.
Final Verdict
This fund is best for investors who believe in India’s infrastructure growth and can handle market fluctuations. If you’re looking for long-term wealth creation and have a high-risk appetite, this could be a strong pick.
Note: Always check the latest factsheet and consult a financial advisor before investing.
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