Infra trumps sectoral mutual fund peers with 29% returns in 2024, so far. Should you invest?

Infrastructure funds have topped the charts in terms of returns in 2024 so far and in the month gone by. Average year-to-date and May returns of 19 schemes stand at 29% and 5% respectively. This is more than three times the returns given by Nifty (8%) on a YTD basis. Meanwhile in May, the 50-stock index has been on a losing side falling by 74 points or 0.32% over April.

top schemes in the infrastructure mutual fund category are, Bandhan Infrastructure Fund-Reg(G), LIC MF Infra Fund-Reg(G), Quant Infrastructure Fund(G), Canara Rob Infrastructure Fund-Reg(G) and Invesco India Infrastructure Fund(G).

According to a Motilal Oswal report, May saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weights infrastructure counters increased in mutual fund schemes along with other sectors like capital goods, metals and automobiles witnessing a similar trend. In value terms also infrastructure stocks witnessed the maximum increase in value, MoM.