Can infrastructure funds benefit from PM Gati Shakti Plan?

Can infrastructure funds benefit from PM Gati Shakti Plan?

by 5paisa Research Team Last Updated: Feb 01, 2022, 02:54 PM IST

Under the PM Gati Shakti master plan, FM Nirmala Sitharaman announced that the government will expand the National Highway network by 25,000 km in 2022-23. Infrastructure funds likely to benefit from the same.

Finance Minister Nirmala Sitharaman while presenting the Union Budget 2022, announced that the government will expand the National Highway network by 25,000 kilometres in the financial year 2022-23 under the PM Gati Shakti master plan.

The Economic Survey on January 31, 2022 shows that a consistent increase in the construction of National Highways or roads since FY 2013-14, with 13,327 kilometres constructed in 2020-21 as compared to 10,237 kilometres in FY 2019-20, indicating an increase of 30.2% over the previous year. The Economic Survey tabled in Parliament reads, "Infrastructure is the backbone for any economy."

It further said that in FY 2021-22 (till September), 3,824 kilometres of the road network were constructed. This significant rise can be very well attributed to the 29.5% surge in the public expenditure as compared to the year ago. The economic survey also revealed that the road infrastructure is recognized as a potent means of socio-economic development of the country that generates good employment.

Having said that, this is going to benefit the stocks forming part of the infrastructure sector including construction, engineering energy, metals, communication, etc. Therefore, this is likely to help infrastructure funds to perform better. In the table below we have listed the top five infrastructure funds.

Trailing Returns (per cent) 

1-Year 

3-Year 

5-Year 

10-Year 

Canara Robeco Infrastructure Fund 

54.42 

22.66 

13.50 

14.12 

Tata Infrastructure Fund 

53.92 

23.09 

14.50 

13.17 

BOI AXA Manufacturing & Infrastructure Fund 

50.00 

28.00 

17.25 

13.71 

Invesco India Infrastructure Fund 

53.75 

25.95 

17.49 

16.07 

ICICI Prudential Infrastructure Fund 

60.01 

21.23 

13.71 

12.71 

SENSEX
54,326.39
1,534.16 (2.91%)
Nifty 50
16,266.15
456.75 (2.89%)
Nifty Bank
34,276.40
960.75 (2.88%)
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SENSEX
54,326.39
1,534.16 (2.91%)
Nifty 50
16,266.15
456.75 (2.89%)
Nifty Bank
34,276.40
960.75 (2.88%)

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