The infrastructural development is the backbone for any thriving economy, and as India aims for its transformational journey with its Amrit Kaal 2047 vision, the infrastructure sector can become a key catalyst to reach this vision. Imagine India as the nation where the highways are sprawling and metros are expanding, fulfilling the reality of smart cities with the rapid urbanization and expansive transport networks. That’s the future infrastructural reality India aims to build!

Now, more than ever, investing in the infrastructure sector means investing in India’s future. One way to invest is through index funds, which can offer low-cost exposure to this high-potential sector. With the launch of the latest NFO, Aditya Birla Sun Life BSE India Infrastructure Index Fund, investors have the chance to harness the power of this continued infrastructure momentum.

Be a part of this growth journey by investing in infrastructure index funds.

Quick introduction: Infrastructure index funds

Infrastructure index funds are a type of index-based mutual fund that invests in a diversified portfolio of infrastructure and its ancillary companies. These funds typically track an index focused on infrastructure industries, including transportation, energy, communication, etc.

The growth potential of infrastructure sector

The groundwork for the infrastructural growth has been laid, from the National Infrastructure Pipeline to the ambitious push for the green energy projects. This sector, which is currently primed for growth, can offer an entry to the investors to the growth journey, allowing them to participate in this momentum right from the start. As the infrastructure spending scales, this pivotal moment of the investing in this sector can perfectly align with the new government initiatives, such as:

• Railway Line Electrification

• Bharatmala Pariyojana

• UDAN

• Sagarmala Program

Facts-based investment rationale

• Strong capex rate of 33.7% in FY24

• Improved efficiency in monetization along with increasing public-private partnerships (PP)

• 4% of the GDP (over 11 lac crores) allocated to infrastructure with emphasis on transport, logistics, and green energy

• The CAGR of infrastructure investments is expected to exceed 15% over the next 5 years (since 2024).

• Target of generating 50% of energy from renewables by 2030, through a series of PLI schemes

[Source: Morgan Stanley India Infrastructure Report, August 2024]

[Disclaimer - The article is intended for informational purposes only and does not imply any guarantee of returns or performance. While these government initiatives may support the growth of the sector, there is no assurance that they will have a positive or lasting impact on the sector’s or the scheme’s performance.]

Benefits of investing in Infrastructure Index Funds

Don’t consider investing in this sector as just a financial asset but a long-term investment in a stronger, more connected India. Here we have articulated key benefits of investing in an infrastructure index fund.

Exposure to India’s growth story: Investing in this offering will put your investment goals in alignment with India’s growth story. Hence, this can position your portfolio to benefit from the expected growing momentum of the infrastructure sector.

Passive investment strategy: As an index fund, it follows a passive investment strategy as it aims to replicate the performance of its underlying index. For example, it is BSE India Infrastructure TRI for the NFO, Aditya Birla Sun Life BSE India Infrastructure Index Fund. The index corrals all the infrastructure giants, making it easier to track the performance of the given constituents.

Broad sector coverage: Infrastructure spans multiple sectors, which can add a balanced diversification that can prove to be valuable during market volatility. The key economic sectors include construction and engineering, energy, utilities, transportation, NBFCs (infra-focused), etc.

Low-cost investment option: As it is passively managed, this sector investment comes with affordable fees, giving cost-effective exposure to the prominent infrastructure companies. It also provides no hassle of stock-picking challenges, making it an economical choice for investors.

Introducing Latest NFO, Aditya Birla Sun Life BSE India Infrastructure Index Fund

Aditya Birla Sun Life BSE India Infrastructure Index Fund is the latest NFO offering from Aditya Birla Sun Life Mutual Fund. It offers a straightforward way to invest in the equities and equities-related instruments from the infrastructure sector. It is designed to mirror the performance of the benchmark index, BSE India Infrastructure Total Return Index. The scheme’s investment universe sees the investment of 61% in large caps, ~22% in mid-caps, and 17% in small caps.

It provides an efficient way to diversify your portfolio with the infrastructure giants across India’s key pillars like construction and engineering, energy, utilities, NBFCs (infra-focused), and transportation, poised to boom from the solicited monetary support from the government.

Also read About: Infrastructure Index Fund NFO

About the index: BSE India Infrastructure Total Return Index

BSE India Infrastructure Total Return Index is a Bombay Stock Exchange (BSE) thematic index focusing on the performance of the domestic infrastructure industry. This index consists of 30 stocks selected from the BSE AllCap universe.

[Disclaimer - Aditya Birla Sun Life BSE India Infrastructure Index Fund (“Scheme”) is based on the BSE India Infrastructure Total Return Index. BSE® is a registered trademark of BSE Limited. The Scheme is not sponsored, endorsed marketed or promoted by, BSE or their respective affiliates. Please refer to the Scheme Information Document for disclaimers w.r.t. BSE India Infrastructure Total Return Index.]

Conclusion: Aim to build wealth while India gets built.

India’s infrastructure is getting a boost from both government policies and private companies. This is your invitation to invest in India’s next big growth chapter. Not only Aditya Birla Sun Life BSE India Infrastructure Index Fund can become a part of India’s infrastructure story, it can also capitalize on wealth creation opportunities within this sector for your financial goals.

Invest today to capture wealth-building opportunities.

Aditya Birla Sun Life AMC Limited/Aditya Birla Sun Life Mutual Fund is not guaranteeing/offering/communicating any indicative yield/returns on investments. Issuer(s) / Stock(s) and Sector(s) mentioned in the document are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.

The article is intended for informational purposes only and does not imply any guarantee of returns or performance. Investors should consult their financial advisors if in doubt whether the product is suitable for them.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.