Tata Infrastructure Fund

All Cap

Equity

India Growth

Infrastructure

Others

Empty

1–7 yearsInvestment Horizon

Empty

What This Strategy Does

Tata Infrastructure Reg IDCW-R is an equity infrastructure fund which captures India's ₹20 trillion infrastructure opportunity through a bottom-up portfolio construction approach, deploying capital across industrials, basic materials, and utilities to achieve broad-based earnings growth.

CW Expert Research Notes

Resilient Downside Protection

The strategy has demonstrated consistent downside protection, outperforming its benchmark in 8 out of the past 12 calendar years, reflecting resilience across market cycles.

Concentrated Infrastructure Exposure

With a 50.8% allocation to industrials and 17.3% in utilities, the fund offers concentrated exposure to infrastructure-related sectors, differentiating it from peers through its sector positioning.

Valuation Upside Potential

Despite recent outperformance, the fund trades at a discount to historical averages and peers, suggesting potential valuation upside if the infrastructure capex cycle accelerates.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.5% AnnuallyAlpha

+10.7% vs +9.9% benchmarkSince Inception

+8.0% vs +6.3% benchmark3Y Annualized

+13.6% vs +6.5% benchmark5Y Annualized

Tata Infrastructure Fund

Benchmark Index

Benchmark Performance Comparison

Tata Infrastructure Fund

NIFTY 50

Risk Profile

Standard Deviation22.8%

Maximum Drawdown-30.2% | Aug 2024

Sharpe Ratio0.08

Beta1.09

Upside Capture102%

Detailed Risks

Market Risk

Prolonged slowdown in infrastructure spending amid fiscal consolidation could undermine earnings growth.

Liquidity Risk

Concentrated mid-cap exposure could face liquidity stress during market sell-offs.

Concentration Risk

Significant infrastructure sector tilt exposes fund to policy risks, project delays.

Specific Strategy Risk

Regulatory changes impacting infrastructure project viability or taxation could disrupt strategy.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides targeted exposure to India's infrastructure growth story. This theme captures companies driving the nation's infrastructure buildout across sectors like utilities, industrials, materials, and energy. The impact is leveraged participation in India's infrastructure renaissance, but with concentrated risk from this cyclical, capital-intensive segment.

Broader Market View

Market Outlook

Equity markets appear to be in the early stages of a recovery phase, offering an attractive entry point as consumption and earnings normalize. Sectors geared towards domestic demand such as consumer, financials and industrials stand to benefit from this environment, although risks like margin pressures remain.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current market with exposure across consumer cyclicals/defensives, financials and technology. The portfolio's diversification across around 70 holdings, including market leaders, coupled with a moderate risk profile, aligns it with the normalization theme while providing flexibility.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach can provide exposure to companies with resilient business models, pricing power, and the ability to compound earnings through cycles.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from across the market capitalization spectrum, with a focus on companies demonstrating sustainable competitive advantages, strong management teams, and attractive growth runways. Selection: The selection process suggests a preference for businesses with durable pricing power, high returns on capital, and the ability to fund growth internally. Valuation discipline is maintained by emphasizing reasonable multiples relative to growth prospects. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach, with position sizes reflecting the manager's confidence in each holding's long-term prospects. Risk management is achieved through diversification across sectors and market capitalization segments.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods65.38%

Energy & Infra8.22%

Consumers5.72%

Services1.88%

Utilities18.81%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Larsen & Toubro LtdCapital Goods6.74%

NTPC LtdUtilities4.45%

(A) TrepsUtilities3.76%

Adani Ports & Special Economic Zone LtdCapital Goods3.66%

Adani Energy Solutions LtdUtilities3.36%

Adani Power LtdUtilities3.19%

Ramco Cements LtdCapital Goods3.12%

InterGlobe Aviation LtdCapital Goods2.89%

Bharat Heavy Electricals LtdCapital Goods2.66%

UltraTech Cement LtdCapital Goods2.63%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Abhinav Sharma

Mr. Abhinav Sharma has experience of 18 years. Manages 18 funds at Tata Asset Management Pvt Ltd with an AUM of approximately ₹2,069 Cr Holds a PGDM degree.

18 years

Combined Team Experience

₹ 2,069 Cr

Assets Under Management

CW Expert Take

Tata AMC reflects the group's values-based approach to business. Their investment process emphasizes ESG integration and governance quality alongside financial metrics. The fund house takes measured positions, avoiding excessive concentration while maintaining conviction in quality franchises across equity and credit portfolios.

Investment Philosophy & Approach

Disciplined Approach

Tata employs a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is an integral part of the investment process.

Long-Term Perspective

The fund house maintains a long-term investment perspective.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.75%

Regulatory & Tax Information

INF277K01774

ISIN

DailyDealing Frequency

Nifty Infrastructure TR INRBenchmark

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)