Infrastructure growth is a major factor that aids economic development. It lowers the cost of transportation, facilitates trade and helps expand markets to the farthest reaches of the country and plays an important role in fostering growth and development of the country. SBI Infrastructure Fund aims to provide investors with the opportunity for long-term capital growth through an active management of investments made in India’s leading infrastructure companies. This sector-specific investment scheme covers an array of tertiary sectors investments including financial institutions, energy companies, airports, cement industry, petroleum and related products, construction, electronics components manufacturers, road & railway Initiatives, housing infrastructure developers, commercial infrastructure developers and more. SBI Infrastructure Fund is suitable for investors who have high-risk appetites and for those who want to diversify their portfolio by adding an infrastructure fund to potentially boost their overall investment returns.
The SBI Infrastructure Fund is an open-ended growth scheme, hence investors can freely invest and redeem their investments in the scheme at a time of their choice.
Risk Factors of the Scheme:
SBI Infrastructure Fund involves moderate high investment risk to the principal investment amount. The fund’s key investments include investment in equity-related instruments, debt and various money-market funds where liquidity of the scheme investments are fundamentally restricted by settlement periods and trading volumes. In cases of large redemption requests or restructuring scheme’s investment portfolio, these reduced liquidity periods may become quite significant. I the case of such extreme events, fund managers or trustees of the SBI Infrastructure Funds have the right to limit redemptions and also suspend these redemptions altogether.
Plan options available with SBI Infrastructure Fund
The SBI Infrastructure Fund offers multiple investment options to investors depending on their specific requirements and investment objectives:
SBI Infrastructure Fund’s direct plan is ideal for investors who follow the principle of DIY investing and are interested in buying or subscribing to scheme units directly with the AMC. It is not suitable for investors who prefer to complete their investments with the help of a distributor. Usually, the NAV of these plans tends to higher than the regular plan and the potential payouts are higher too. Investors can opt for either the dividend option or the growth option in case they decide to invest in the direct plan.
In the case of regular plans, the investor has to purchase or subscribe to a unit of a scheme through a third-party such as a brokerage house, thus the investor might be required to pay additional charges including but not limited to brokerage fees and portfolio management fees. When investing through a regular plan, an investor has the choice to choose between growth and dividend options similar to the case with direct plans.
Any individual who is above 18 years and has completed the required KYC requirement is eligible for investing under this scheme. Individuals, as well as institutional investors, can invest in SBI Infrastructure Fund Plan for expanding their investment portfolio and diversifying it by investing in a sector-specific fund that has the potential of providing higher returns.
Minimum Application Amount
|Minimum Investment Amount||Rs. 5000|
|Additional Purchase Amount||Rs. 1000|
|Repurchase Amount||Investors can either repurchase the units of scheme worth Rs.1000 or 100 units whichever is lower.|
SBI Infrastructure Fund equity fund and it is subject to the applicable capital gains taxation criteria. If the investor redeems his/her investment before the 1-year lock – in the period then capital gains tax of 15% will be levied. In case the investment is held for a period greater than 1 year from the date of investment, then no tax is applicable. Dividends which are earned from debt mutual fund are subject to Dividend Distribution Tax (DDT). DDT gets automatically debited by the AMC at the time of crediting the dividend. The currently applicable DDT rate is 28.84%. However, no taxes are levied on the dividend earned from equity funds such as the SBI Infrastructure Fund is a dividend-reinvestment plan is chosen instead of a pay-out plan.
Top Holdings of SBI Infrastructure Fund
|Investment Sector||Top Holdings|
|Engineering & Capital Goods||Larsen, Elgi Equipments, Sadbhav Engg, Shanthi Gears, Kirloskar Ind, Timken, Kennametal, EngineersInd, Va Tech Wabag, KEC Intl, etc.|
|Cement & Construction||NCC, ITD Cementation, Sagar Cement, etc.|
|Utilities||Power Grid Corp, NTPC, etc.|
|Telecommunication||Bharti Airtel, Tata Communications, etc.|
|Oil & Gas||ONGC, Petronet LNG, GAIL, IGL, etc.|
|Banking & Financial Services||ICICI Bank, etc.|
|Retail & Real Estate||Phoenix Mills, etc.|
|Conglomerates||3M India, etc.|
|Manufacturing||Bharat Electricals, etc.|
How to Invest
In case you are interested in investing in SBI mutual funds such as the SBI Infrastructure Fund, you can easily do so through the Paisabazaar.com investment account. All you need to do is open your free investment account, set up your banking mandate and complete your Aadhar-based KYC to get started within minutes. Using our easy to use interface, you can easily select and compare various offerings of SBI MF to figure out how well they measure up to the SBI Infrastructure Fund. Once you have made you choice, you can buy the units of your choice by using the net banking payment mode. Paisabazaar.com does not charge you for any units that you buy or sell using your free investment account.
Alternatively, you have the option of making offline investments in SBI Infrastructure Funds through a brokerage or at registered SBI Mutual Fund AMC offices located all over India. In case your investment in made through a brokerage, you might be charged an additional brokerage fee or a portfolio management fee, so make sure you confirm such charges beforehand.